IDFC First Bank reported a sharp 58 per cent year-on-year (yoy) drop in fourth quarter (Q4FY25) standalone net profit at ₹304 crore, with the bottomline being dragged by a jump in provisions, including towards deliquent assets in the microfinance portfolio.
Sharply lower tax expenses, to an extent, acted as a counterweight to the aforementioned provisions, preventing further impact on the bottomline.
The private sector lender had recorded a net profit of Rs 724 crore in the year ago quarter (Q4FY24). The Board of Directors of the Bank on Saturday recommended a dividend of ₹0.25 (2.50 per cent of face value) per equity share of face value of ₹10 each for FY25.
Net interest income (difference berween interest earned and interest expended) was up about 10 per cent yoy at Rs 4,907 crore (₹4,469 crore in the year ago quarter).
Other income, comprising non-fund based income, fees, earnings from foreign exchange and derivative transactions, profit/ loss from sale/ settlement of investments and derivatives, marked to market provisions on investments/ derivatives, dividend from subsidiary etc, rose 15 per cent yoy to ₹1,895 crore (₹1,642 crore).
Net Interest Margin (NIM) declined to 5.95% for Q4FY25 as compared to 6.04 per cent in Q3 FY24. The Bank said this drop is largely due to decline in the micro-finance business
Provisions, including towards non-performing assets (NPAs) in the microfinance book and legacy infrastructure accounts, soared 101 per cent yoy to ₹1,450 crore (₹722 crore). Tax expenses were about 74 per cent lower yoy at ₹57 crore (₹217 crore).
Fresh slippages were a shade lower at ₹2,175 crore (₹2,192 in Q3FY24), with other than microfinance slippages declining to ₹1,603 crore (₹1,755 crore) and microfinance slippages rising to ₹572 crore (₹437 crore).
Total deposits increased 25 per cent yoy to stand at ₹2,42,543 crore as at March-end 2025, with 79 per cent being retail deposits and the rest wholesale deposits. The proportion of low-cost current account, savings account (CASA) deposits were down a tad to 46.9 per cent of total deposits as at March-end 2025 against 47.2 per cent as at March-end 2024.
Gross loans & advances rose 20.4 per cent yoy to stand at ₹2,41,926 crore. Within this, business finance (MSME & Corporate) clocked the highest growth of 33.8 per cent, followed by retail finance (18.7 per cent), and rural finance (3.7 per cent). Infrastructure loans portfolio de-grew 17.1 per cent. Within rural finance, the microfinance portfolio declined 28.3 per cent.
Credit-Deposit ratio (Gross Advances & Credit Substitutes) declined to 96 per cent as at March-end 2025 against 100.2 per cent as at March-end 2024.
Published on April 26, 2025
