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.
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%.
