IDFC First Bank Q3 Results: Net profit down nearly 53% at Rs 339.4 crore; NII up 14.4%

Operating income grew 15% from Rs 5,803 crore in Q3 FY24 to Rs 6,682 crore in Q3 FY25. For the 9MFY25, the growth of Operating Income was 19.4% on YoY basis.

IDFC First Bank reported a 52.6% percent decrease in its December quarter standalone net profit at Rs 339.4 crore vs Rs 715.7 crore reported by it in the year-ago period. The Net Interest Income (NII) increased 14.4 percent to Rs 4,902 crore in Q3FY25 versus Rs 4,286.6 Cr in the year-ago period.

The bank's net interest margin (NIM) was 6.04% for Q3-FY25 compared to 6.18% in Q2-FY25. NIM declined during the quarter largely due to a decline in the micro-finance business and an increase in the composition of the Wholesale Banking business.

Operating income grew 15% from Rs. 5,803 crore in Q3 FY24 to Rs. 6,682 crore in Q3 FY25. For the 9MFY25, the growth of Operating Income was 19.4% on YoY basis.

Operating Expense grew by 16% YOY from Rs. 4,241 crore in Q3 FY24 to Rs. 4,923 crore in Q3 FY25. For the 9M-FY25, the growth of Operating Expenses was 18.2% on YoY basis.

Core Operating Profit (excluding trading gain) grew by 15% YOY from Rs. 1,515 crore in Q3 FY24 to Rs 1,736 crore for Q3 FY25, impacted by micro-finance business.

V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said, “Our bank continues to grow well on loans and deposits. Our customer deposits is growing strongly at 29% YoY to reach Rs. 2,27,316 crores, with the CASA ratio sustaining at 48%. The loans & advances grew steadily by 22% YoY to reach Rs. 2,31,074 Crores.”

We are specifically tracking Micro-finance loan book closely considering the industry situation. The asset quality of the overall Bank’s loan book is stable with Gross NPA at 1.94% and Net NPA at 0.52%. Excluding the micro-finance loan book, the GNPA and NNPA of the book of the bank is even lower 1.81% and 0.49%.

The credit issues in the Microfinance segment are a transitionary issue which is likely to be resolved within a few quarters. The Bank built this business because it was important from priority sector lending norms point of view, particularly meeting PSL norms for Weaker Sections and Small and marginal farmers PSL categories.

All other businesses being built as part of universal banking, including deposits, loans, Credit Cards, Wealth, Cash Management, Corporate Banking, Fastag, Gold Loans are doing well. Over the next few years, the C:I will come down because of operating leverage, as we scale up. As mentioned earlier, the bank is growing steadily in scale.”