Transition under way, IDFC Q3 NII may rise modest 1.6%

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26 Aug, 2025 12:21

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Moneycontrol Bureau

It may be yet another subdued quarter for soon-to-be-bank IDFC with the firm expected to report a 16.6 percent fall in third-quarter net profit to Rs 417.8 crore while net interest income may rise 1.6 percent to Rs 674 crore, according to a CNBC-TV18 poll of analysts.

IDFC has witnessed single digit or declining NII for the past five consecutive quarters: from flat growth in the first quarter to a 6 percent fall in the second.

The firm’s profit is expected to be impact by higher provisions with the management indicating it would continue to build provisions till bank operations start later this year.

Provisions rose 244 percent year-on-year in the first quarter to Rs 203.9 crore and another 462 percent YoY in the second to Rs 281.2 crore.

Analysts will also watch for any rise in operating expenses as the firm’s transition continues while also eyeing any potential gain from non-interest income.

Segment wise, the rally in bond and stock market may interest its activities in its capital markets business, such as investment banking, broking and asset management.

The loan book, however, is expected to either consolidate or decline, with the management guiding flat growth going forward.

After obtaining a bank licence from the Reserve Bank of India last year, IDFC expects to start operations by October 1 this year.