IDFC FIRST Bank FY25 Results

IDFC FIRST Bank shared its financial results for the year ended March 2025. Here’s a simple breakdown: 🔻 Profit: Net profit for the full year was ₹1,525 crore, down 48% compared to last year. For the Jan-Mar quarter (Q4), profit was ₹304 crore, down 58% from ₹724 crore last year. The main reason for the profit fall was higher provisions (money kept aside for risky loans), especially in their microfinance business. Deposits: Customer deposits grew 25% year-on-year to ₹2,42,543 crore. Retail deposits (from regular customers) grew 26%. CASA deposits (Current and Savings Accounts) grew 25%. CASA ratio (a measure of low-cost deposits) remained strong at 46.9%. Loans: Total loans grew 20% to ₹2,41,926 crore. Loans to Retail, Rural, and MSME sectors grew 19%. Microfinance loans shrank by 28%. Income: Net Interest Income (NII) grew 10% in Q4 and 17% for the full year. Net Interest Margin (NIM), which shows lending profitability, was 5.95% in Q4 and 6.09% for the full year. Fee and Other Income rose 6% in Q4. Asset Quality: Gross NPA (bad loans) slightly improved to 1.87%. Net NPA was stable at 0.53%. Provision Coverage Ratio (PCR) was healthy at 72%. Capital Raising & Dividend: The bank plans to raise ₹7,500 crore by issuing preference shares to big investors like Warburg Pincus and Abu Dhabi Investment Authority. Proposed dividend: ₹0.25 per share. CEO V Vaidyanathan said “Our deposits and loans are growing well. Despite challenges in microfinance, our asset quality remains strong.”