IDFC First Bank Q4 Results: Profit Falls 58% Amid Higher Provisions, Asset Quality Remains Resilient

Sharp Decline in Net Profit for IDFC First Bank Q4 Results

IDFC First Bank suggested a 58% year-on-12 months (YoY) drop in internet income for Q4 FY25, posting a net income after tax (PAT) of ₹304 crore compared to ₹724 crore in Q4 FY24. The decline changed primarily because of expanded provisions connected to strain inside the microfinance portfolio. For the overall economic year FY25, the financial institution’s net profit fell 48.4% to ₹1,525 crore.

IDFC First Bank Q4 Results: Solid Growth in Loans and Deposits

• Despite the earnings decline, the enterprise boom remained robust.
• Total loans and advances increased to ₹ 2,41,926 crore via 20.4% YOY.
• Customer deposits increased by 25.2% yoy to 2,42,543 crore, with retail deposits 26.4% and CASA with CASA to 24.4%.
• The CASA ratio remained robust at 46. Nine percent, slightly down from 47.2% closing 12 months.

IDFC First Bank Q4 Results: Net Interest Income and Margins

• Net Interest Income (NII) grew by nine.8% YoY to ₹four,907 crore for Q4 FY25.
• However, the Net Interest Margin (NIM) barely declined to five percent, especially due to pressure on the microfinance portfolio.
• Fee and Other Income rose 5.7% YoY to ₹1,702 crore throughout the sector.

Asset Quality Remains Stable

The financial institution’s asset fine metrics confirmed resilience, no matter sectoral headwinds:

• Gross NPA advanced slightly to at least 87% from 1.88% a year ago.
• Net NPA decreased to zero, 53% from zero.60% YoY.
• Provision Coverage Ratio (PCR) stood healthy at 72.3%.
• Excluding the microfinance portfolio, Gross NPA for Retail, Rural, and MSME loans improved to at least one.40%.

IDFC First Bank Q4 Results Provisioning and Expenses

• Total provisions for FY25 amounted to ₹5 515 crore, representing 2.46 % of the mortgage book.
• Core Operating Income grew by 8.7% YoY to ₹6,609 crore.
• Operating Expenses rose with the aid of 12.2% to ₹4,991 crore.
• Total charges for Q4 FY25 expanded 15.85% YoY to ₹9,49674 crore.

Capital Raise and Dividend Announcement

The board accepted raising approximately ₹7,500 crore through Compulsorily Convertible Preference Shares (CCPS) to traders, together with Warburg Pincus and Abu Dhabi Investment Authority (ADIA), pending shareholder and regulatory approvals.

Additionally, the bank proposed a dividend of ₹0.25 per share, concern to approval at the upcoming annual general assembly.

CEO Commentary

Commenting on the overall performance, V Vaidyanathan, MD and CEO, said:

“Our purchaser deposits grew properly at 25% year-on-year and the CASA ratio keeps to remains sturdy at 46.9%, reflecting the strength of our deposit franchise. Our funded asset book grew by 20.Four%. Importantly, the Bank’s asset quality stays resilient, with GNPA and NNPA at 1.87% and zero.53% respectively.”

Brokerage Views on IDFC First Bank Q4 Results

Brokerages had a combined view on the bank’s Q4FY25 overall performance:

• Nuvama expected a PAT of ₹310 crore (down 57% YoY), bringing up multiplied provisioning expenses and better slippages. Loan increase remains healthy at 20.Three% YoY.
• Motilal Oswal projected a greater careful PAT at ₹288 crore (down 60.3% YoY), preserving a Neutral rating because of ongoing value pressures.
• Yes Securities had a slightly positive view, estimating PAT at ₹347 crore (down fifty two.2% YoY), however stable sequentially, and expects recuperation in H2FY26.

Stock Performance

Ahead of the Q4 consequences declaration, IDFC First Bank shares closed 2.19% decrease at ₹66.15 apiece on the BSE on Friday, reflecting cautious sentiment amongst buyers.

Fundraising: A Bold Move

The ₹7,500 crore fundraising from marquee investors (Warburg Pincus, ADIA) is a sturdy, superb sign.
It boosts capital buffers at a time while asset excellent questions loom.

Insight:

Big global traders backing the financial institution show self-assurance in the control method. However, the dilution threat for shareholders is something to observe.

Final Thought:

IDFC First Bank is at a crossroads.
It is repositioning far away from volatile belongings, taking the profitability hit now, but putting in for more sustainable, more secure growth from FY26 onwards.

• Short-term period: Tough street ahead.
• Long-term: If they execute well, this can be a robust turnaround tale.

Apply Now:- Click here

More Jobs:-

• Deloitte Tech Internship 2025
• Discover Tech Mahindra Internship Career 2025
• Discover Cisco Hiring 2025 Entry Level Job Opportunities
• Discover Cisco Intern Career 2025 Opportunities

Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates, Subscribe to our Channels. WhatsApp– Click Here, Google News– Click Here, YouTube – Click Here, and LinkedIn–Click Here. , Telegram – Click Here, and Twitter – Click here