IDFC First Bank reported a net profit of Rs 339.43 crore in Q3 FY25, reflecting a decline of 52% year-on-year (YoY) compared to Rs 715.68 crore in Q3 FY24. The drop was primarily attributed to a significant increase in provisions during the quarter.
Provisions surged to Rs 1,337 crore in Q3 FY25, compared to Rs 654 crore in the corresponding quarter last year, indicating a 104.5% rise YoY. This highlights the bank’s cautious approach to managing potential credit risks.
The bank’s asset quality showed slight sequential deterioration. Gross non-performing assets (GNPA) stood at 1.94% in Q3 FY25, marginally higher than 1.92% in Q2 FY25. Similarly, net non-performing assets (NNPA) increased to 0.52% from 0.48% in the previous quarter.
On the operational front, deposits grew robustly, reaching Rs 2,36,877 crore as of December 31, 2024, a 29.6% increase YoY. Advances also registered a strong growth of 22% YoY, rising to Rs 2,23,109 crore, supported by continued momentum in retail and corporate lending.
Despite challenges in profitability, IDFC First Bank demonstrated strong operational growth in Q3 FY25, driven by a healthy expansion in deposits and advances. While asset quality remains stable with minor stress, the bank’s prudent provisioning underscores its focus on maintaining a resilient credit portfolio.
