IDFC First Bank Q4 Results: Net Profit Drops 58% To Rs. 304 Cr, NII Grew 9.8%; Board Considers Dividend

The audited financial results for the quarter and year ending March 31, 2025, were released by IDFC FIRST Bank today. The net profit for Q4-FY25 was Rs. 304 crore, a 58% YoY drop from Q4 FY24's Rs. 724 crore. The net profit for the entire year FY25 was Rs. 1,525 crore, a 48.4% YoY decline. From Rs. 4,469 crore in Q4 FY24 to Rs. 4,907 crore in Q4 FY25, Net Interest Income (NII) climbed 9.8% YoY, while in FY25, NII climbed 17.3% YoY. While the bank's Net Interest Margin (NIM) on AUM was 6.09% for the entire year FY25, it dropped 9 basis points on a quarterly basis, from 6.04% in Q3-FY25 to 5.95% in Q4-FY25.

From Rs. 1,610 crore in Q4 FY24 to Rs. 1,702 crore in Q4 FY25, IDFC First Bank reported a 5.7% YoY spike in fee and other income. While core operating profit dropped from Rs. 1,632 crore in Q4 FY24 to Rs. 1,618 crore in Q4 FY25 and increased 17.2% from Rs. 6,030 crore in FY24 to Rs. 7,069 crore in FY25, the bank's core operating income increased 8.7% from Rs. 6,079 crore in Q4 FY24 to Rs. 6,609 crore in Q4 FY25. According to the bank, its operating expenses increased from Rs. 4,447 crore in Q4 FY24 to Rs. 4,991 crore in Q4 FY25, a 12.2% year-on-year growth. Operating expenses jumped by 16.5% YoY in FY25.

According to the bank, retail deposits mushroomed by 26.4% YoY from Rs. 1,51,343 crore on March 31, 2024, to Rs. 1,91,268 crore on March 31, 2025, while customer deposits jumped 25.2% YoY from Rs. 1,93,753 crore on March 31, 2024, to Rs. 2,42,543 crore on March 31, 2025. From Rs. 94,768 crore on March 31, 2024, to Rs. 1,18,237 crore on March 31, 2025, the bank's CASA deposits increased by 24.8% YoY, while the CASA Ratio was 46.9% on March 31, 2025, as opposed to 47.2% on March 31, 2024.

From Rs. 2,00,965 crore on March 31, 2024, to Rs. 2,41,926 crore on March 31, 2025, the bank's loans and advances grew by 20.4% YoY.

From 1.94% on December 31, 2024, to 1.87% on March 31, 2025, the bank's gross non-performing assets (NPA) improved by 7 basis points on a quarterly basis. The bank's net non-performing assets (NPA) climbed by 1 basis point on a quarterly basis from 0.52% on December 31, 2024, to 0.53% on March 31, 2025. As of March 31, 2025, the bank's Net NPA of Retail, Rural, and MSME Book was 0.56%, while its Gross NPA of Retail, Rural, and MSME Book increased from 1.46% on December 31, 2024, to 1.40% on March 31, 2025.

According to IDFC First Bank, its gross slippage for Q4 FY25 was Rs. 2,175 crore as against Rs. 17 crore from Q3 FY25's Rs. 2,192 crore. Higher slippages in the micro-finance book were the main cause of the bank's FY25 provisions, which totaled Rs. 5,515 crore.
Mr. V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank , said, "Our customer deposits grew well at 25% YoY and the CASA ratio continues to remain strong at 46.9%, reflecting the strength of our deposit franchise. Our funded asset book grew by 20.4%. Importantly, the Bank's asset quality remains resilient, with GNPA and NNPA at 1.87% and 0.53% respectively."

"Further, an affiliate entity of Warburg Pincus LLC and a wholly owned subsidiary of private equity division of Abu Dhabi Investment Authority (ADIA), have committed to invest ~Rs. 7,500 Cr in the Bank (subject to necessary regulatory and shareholders' approvals), which will further strengthen our Capital Adequacy Ratio and support our next phase of growth. We continue to be committed to grow responsibly, serve high-quality products and services, lead with innovation and build customer centric propositions," he added.

"We wish to inform that the Board of Directors of the Bank ("Board") at its meeting held today has inter-alia considered and recommended dividend of ₹ 0.25/- (2.50% of face value) per equity share of face value of ₹ 10/- each for the Financial Year 2024-25, subject to approval of shareholders of the Bank at the ensuing Annual General Meeting of the Bank and such other regulatory/ statutory approvals as may be required," said IDFC First Bank in a stock exchange filing.

Spread in 60,000 Indian cities, towns, and villages, the bank has 35.5 million active clients, a customer deposit base of Rs. 2,42,543 crores, and loans and advances of Rs. 2,41,926 crores in addition to having 1,002 active branches across the country.