IDFC First Bank reported its financial results for the second quarter of the fiscal year 2024-25, showing a sharp drop in net profit year-on-year, despite growth in its Net Interest Income (NII).
The bank’s net profit for Q2 FY25 came in at ₹200.7 crore, marking a decline of 73.3% compared to the ₹751.3 crore it recorded in the same quarter last year. This significant drop in profit underscores challenges the bank faced in maintaining profitability amid shifting market dynamics.
On a more positive note, the bank’s Net Interest Income (NII), a critical metric indicating core earnings from lending activities, saw a solid increase of 21.2% year-on-year. NII rose to ₹4,787.8 crore in Q2 FY25, up from ₹3,950.2 crore in the corresponding period of the previous fiscal year. The growth in NII suggests continued expansion in IDFC First Bank’s lending activities, which has been a strategic focus for the bank.
The mixed results underscore the bank’s focus on scaling its loan book and generating higher interest income, even as profit margins have been pressured in the current economic climate. IDFC First Bank will likely focus on strategies to address these challenges as it navigates the remainder of FY25.
