IDFC First Bank Q4 Results: Net profit drops 58% to ₹304 crore, NII rises 10% YoY; Asset quality improves

IDFC First Bank Q4 Results: IDFC First Bank announced its January March quarter results for fiscal 2024-25 (Q4FY25) on Saturday, April 26, reporting a drop of 58 per cent in standalone net profit at ₹304 crore, compared to ₹724.3 crore in the corresponding period last year. The board recommended a dividend of ₹0.25 per equity share, subject to the approval of shareholders.

The private sector lender was formed by merging the banking arm of project financer Infrastructure Development Finance Company (IDFC) and Capital First. Considering the increase in delinquency of the micro finance business across the industry, the bank is tracking the microfinance business closely. The asset quality indicators, including gross NPA, net NPA, SMA, and Provisions of the book excluding MFI is stable

The bank's IDFC First Bank's net interest income (NII)—the difference between interest earned and paid—rose 9.8 per cent to ₹4,907.1 crore compared to ₹4,468.9 crore in the year ago period.

The lenders' total income increased to ₹11,308 crore during the quarter against ₹9,861 crore in the same quarter a year ago, IDFC First Bank said in a regulatory filing.

The interest income increased to ₹9,413 crore for the reporting quarter as against ₹8,219 crore in the same quarter a year ago.

On the asset quality front, the bank's gross non-performing assets ratio improved marginally to 1.87 per cent against 1.88 per cent a year ago.

Similarly, its net NPAs, or bad loans, came down to 0.53 per cent from 0.60 per cent in the March quarter of the previous year.

However, the overall provisions excluding tax doubled to ₹1,450 crore from ₹722 crore in the same quarter a year ago.

For the full year FY25, the net profit decreased by 48 per cent to ₹1,525 crore as against ₹2,957 crore in the previous year, largely impacted by the issues in the microfinance industry.

The board has approved a dividend of ₹0.25 per share subject to shareholders' approval in the ensuing annual general meeting.

Earlier this month, the Board of Directors of IDFC FIRST Bank, at its meeting, approved a preferential issue of equity capital (CCPS) amounting to approximately ₹4,876 crore to Currant Sea Investments B.V., an affiliate company of global growth investor Warburg Pincus LLC and approximately ₹2,624 crore to Platinum Invictus B 2025 RSC Limited, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) managed by its Private Equities Department. The proposed issues are subject to shareholder and regulatory approvals.

Over the last six years, IDFC FIRST Bank has undergone a successful transformation from its legacy as an infrastructure-focused DFI to becoming a modern, technology-driven, pan-India, universal bank. In the process, it has made significant investments in distribution, technology, and talent to become a leading private sector bank in India.