IDFC First Bank’s Q3 Earnings Disappoint with Profit Down 53%

In Q3 FY25, IDFC First Bank’s net profit dropped significantly by 53% to Rs 339 crore, compared to Rs 716 crore in the same quarter last year. The decline in profit is attributed to higher provisions for the microfinance portfolio and the normalization of credit costs. Despite this, the bank’s net interest income (NII) rose by 14% to Rs 4,902 crore, driven by higher interest income from loans. Additionally, the bank’s operating income increased by 15% to Rs 6,682 crore.

The bank’s asset quality showed improvement, with the gross non-performing assets (GNPA) ratio improving to 1.94% from 2.11% in the previous quarter. The net NPA ratio also decreased to 0.52% from 0.61%. Customer deposits experienced robust growth, rising by 28.8% year-on-year to Rs 2,27,316 crore. The Current Account Savings Account (CASA) ratio stood at 47.7%, indicating strong customer engagement.

Despite the decline in net profit, IDFC First Bank remains focused on maintaining a strong balance sheet and improving asset quality. The bank’s efforts to enhance its core income metrics and manage costs effectively highlight its resilience in navigating the volatile economic landscape.