IDFC FIRST Bank Q4 FY25 Results: NII jumps 9.8% YoY to Rs 4,907 crore, net profit down to Rs 304 crore

IDFC FIRST Bank announced its financial results for the quarter ended March 31, 2025. The Bank’s Net Interest Income (NII) rose 9.8% year-on-year to ₹4,907 crore in Q4 FY25, compared to ₹4,469 crore in Q4 FY24. However, net profit for the quarter declined to ₹304 crore from ₹724 crore a year ago. For the full year FY25, net profit stood at ₹1,525 crore, down 48.4% year-on-year.

Customer deposits increased by 25.2% year-on-year to ₹2,42,543 crore. Retail deposits grew by 26.4% year-on-year to ₹1,91,268 crore and formed 79% of total customer deposits. CASA deposits rose 24.8% year-on-year to ₹1,18,237 crore, with the CASA ratio at 46.9% as of March 31, 2025.

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The Bank’s funded assets (loans and advances) grew by 20.4% year-on-year to ₹2,41,926 crore. The Retail, Rural, and MSME loan book grew 18.6% year-on-year to ₹1,97,568 crore. The microfinance portfolio declined by 28.3% year-on-year, reducing its share in the loan book from 6.6% to 4.0%. The legacy infrastructure loan book also shrank 17% year-on-year to ₹2,348 crore, now constituting less than 1% of funded assets.

On asset quality, gross NPA stood at 1.87% as of March 31, 2025, improving by 7 basis points sequentially. Net NPA was at 0.53%, marginally higher by 1 basis point compared to December 31, 2024. Excluding the microfinance portfolio, gross NPA in the Retail, Rural, and MSME book improved to 1.40%, while net NPA remained stable at 0.56%.

Gross slippages for Q4 FY25 were ₹2,175 crore, slightly lower compared to ₹2,192 crore in Q3 FY25. Within this, microfinance-related gross slippages increased to ₹572 crore in Q4 FY25. Excluding microfinance, slippages improved by ₹152 crore quarter-on-quarter.

Provisions for FY25 totalled ₹5,515 crore (2.46% of the loan book), driven primarily by higher delinquencies in microfinance. Excluding microfinance and one toll account, credit cost stood at 1.76% for FY25. The bank maintained a provision coverage ratio of 72.3% as of March 31, 2025.

Net Interest Margin (NIM) on AUM declined by 9 basis points sequentially to 5.95% in Q4 FY25, largely due to the shrinking microfinance portfolio. For FY25, the NIM was 6.09%.

Fee and other income grew 5.7% year-on-year to ₹1,702 crore in Q4 FY25. Core operating income rose by 8.7% to ₹6,609 crore during the quarter. Operating expenses increased by 12.2% year-on-year to ₹4,991 crore. Core operating profit (excluding trading gains) was ₹1,618 crore in Q4 FY25, slightly lower compared to ₹1,632 crore in Q4 FY24. Including trading gains, operating profit rose 8.9% year-on-year in Q4 FY25.

The Board approved raising approximately ₹7,500 crore through the issuance of Compulsorily Convertible Preference Shares (CCPS) to affiliates of Warburg Pincus LLC and Abu Dhabi Investment Authority (ADIA), subject to shareholder and regulatory approvals. Post-conversion and proposed dividend of ₹0.25 per share, the CRAR is expected to stand at 18.20% and Tier-I at 15.89%.