IDFC FIRST Bank posted a net profit of Rs 304 crore for Q4 FY25, a 58 percent decline compared to Rs 724 crore reported in Q4 FY24. The fall in profitability was primarily driven by elevated provisions linked to stress in the microfinance portfolio. For the full financial year FY25, net profit stood at Rs 1,525 crore, down 48.4 percent year-on-year.
Customer deposits grew by a robust 25.2 percent year-on-year to Rs 2,42,543 crore, with retail deposits increasing by 26.4 percent to Rs 1,91,268 crore. CASA deposits also registered a healthy 24.8 percent growth year-on-year to Rs 1,18,237 crore. The CASA ratio remained strong at 46.9 percent, marginally lower than 47.2 percent a year ago.
The bank’s total Loans and Advances expanded by 20.4 percent year-on-year to Rs 2,41,926 crore. Retail, Rural and MSME loans rose 18.6 percent to Rs 1,97,568 crore, while the microfinance portfolio contracted by 28.3 percent.
Net Interest Income (NII) grew 9.8 percent year-on-year to Rs 4,907 crore for Q4 FY25. For the full year, NII increased 17.3 percent year-on-year. Net Interest Margin (NIM) on AUM stood at 5.95 percent for Q4 FY25, down 9 basis points sequentially, largely due to the contraction in the microfinance business. The full-year NIM was at 6.09 percent.
Fee and Other Income grew by 5.7 percent year-on-year to Rs 1,702 crore in Q4 FY25. For FY25, the Fee and Other Income growth stood at 15.2 percent. Core Operating Income rose by 8.7 percent to Rs 6,609 crore in Q4, while Operating Expenses increased by 12.2 percent to Rs 4,991 crore. Core Operating Profit stood at Rs 1,618 crore during the quarter, while for the full year, it grew by 17.2 percent to Rs 7,069 crore.
Asset quality metrics remained stable despite sectoral pressures. Gross Non-Performing Assets (GNPA) improved marginally by 7 basis points sequentially to 1.87 percent, while Net NPA increased slightly by 1 basis point to 0.53 percent. Excluding the microfinance portfolio, Gross NPA for the Retail, Rural and MSME book improved to 1.40 percent.
The Provision Coverage Ratio (PCR) was healthy at 72.3 percent. Total provisions for FY25 stood at Rs 5,515 crore, representing 2.46 percent of the loan book. Excluding microfinance and one toll account, the adjusted credit cost for the year was 1.76 percent, improving 9 basis points quarter-on-quarter to 1.73 percent in Q4.
The bank’s gross slippages stood at Rs 2,175 crore for Q4 FY25, marginally down from Rs 2,192 crore in Q3.
IDFC FIRST Bank’s board has approved raising approximately Rs 7,500 crore by issuing Compulsorily Convertible Preference Shares (CCPS) to affiliates of Warburg Pincus and Abu Dhabi Investment Authority (ADIA), pending shareholder and regulatory approvals. Additionally, the bank has proposed a dividend of Rs 0.25 per share, according to its investor presentation.
Commenting on the performance, V Vaidyanathan, Managing Director and CEO, said, “Our customer deposits grew well at 25 percent year-on-year and the CASA ratio continues to remain strong at 46.9 percent, reflecting the strength of our deposit franchise. Our funded asset book grew by 20.4 percent. Importantly, the Bank’s asset quality remains resilient, with GNPA and NNPA at 1.87 percent and 0.53 percent respectively.”
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