IDFC FIRST Bank reported its financial results for the fourth quarter, showing a sharp decline in profitability but steady asset quality metrics.

For Q4, the bank’s net profit stood at ₹304.1 crore, registering a 58% fall compared to ₹724.3 crore in the same quarter last year.

On a positive note, the bank’s Net Interest Income (NII) grew 9.8% YoY, reaching ₹4,907.1 crore, up from ₹4,468.9 crore a year ago, reflecting healthy growth in its core lending business.

In terms of asset quality:

Gross NPA slightly increased to ₹4,433.6 crore from ₹4,399.3 crore on a sequential basis.

Net NPA also inched up to ₹1,229.9 crore versus ₹1,162 crore QoQ.

However, Gross NPA ratio improved to 1.87%, compared to 1.94% in the previous quarter, indicating better management of stressed assets.

Net NPA ratio remained largely stable at 0.53% versus 0.52% QoQ.

The bank’s deposit base showed robust growth, with total customer deposits increasing 25.2 per cent YoY to Rs 2,42,543 crore as of March 31, 2025. Retail deposits rose 26.4 per cent to Rs 1,91,268 crore, and CASA (current account savings account) deposits expanded by 24.8 per cent to Rs 1,18,237 crore. The CASA ratio remained stable at 46.9 per cent.

Loans and advances also recorded a healthy rise of 20.4 per cent YoY, reaching Rs 2,41,926 crore. The retail, rural, and MSME segment grew by 18.6 per cent YoY. In contrast, the microfinance portfolio contracted 28.3 per cent, reducing its contribution to the total loan book from 6.6 per cent to 4 per cent.

Key Highlights:

• Q4 gross slippages in microfinance stood at ₹572 crore.
• The credit card business achieved break-even within just 4 years of launch, a significant milestone.
• The bank plans to repay ₹4,500 crore worth of legacy loans in FY26, which is expected to further strengthen its balance sheet.
• Incremental credit-deposit ratio stood strong at 76.1% in FY25, reflecting healthy credit demand.

Management Commentry 

• The bank aims to raise Return on Equity (RoE) to 15-16%.
• Generating return on capital is a key priority going forward.
• IDFC FIRST Bank is raising capital to build a stronger and more attractive customer franchise.
• The Q4 profit decline was attributed to normalisation of credit cost and a higher impact from the microfinance book.

Last Trading Session Shares of IDFC First bank Closed 2% lower at ₹65.99 With market capitalisation ₹48,450 Crore;In last 6 months Shares Of IDFC First bank trades flat with only negative 1% return 

Disclaimer:

The information provided in this article is for informational purposes only. It is based on publicly available data and IDFC First bank Posted Q4 it on their official Website