IDFC First Bank recorded a net profit for Q4 FY25 of Rs 304 crore, which was 58 percent less than the Rs 724 crore profit for Q4 FY24. The microfinance portfolio's increased provisions associated with stress were the main cause of the decline in profitability. Net profit for the entire fiscal year FY25 was Rs 1,525 crore, a 48.4% decrease from the previous year.
Retail deposits increased by 26.4 percent to Rs 1,91,268 crore, while customer deposits gained a strong 25.2 percent to Rs 2,42,543 crore. At Rs 1,18,237 crore, CASA deposits also showed a robust 24.8 percent year-over-year rise. At 46.9 percent, the CASA ratio held steady and was just slightly lower than 47.2 percent a year earlier.
At Rs 2,41,926 crore, the bank's total loans and advances increased by 20.4% year over year. While the microfinance portfolio shrank by 28.3%, retail, rural, and MSME loans increased 18.6% to Rs 1,97,568 crore.
In Q4 of FY25, Net Interest Income (NII) increased 9.8% year over year to Rs 4,907 crore. NII grew 17.3% year over year for the entire year. Due in significant part to the microfinance industry's collapse, the Net Interest Margin (NIM) on AUM decreased 9 basis points sequentially to 5.95 percent in Q4 FY25. The NIM for the entire year was 6.09 percent.
In Q4 of FY25, Fee and Other Income increased by 5.7% year over year to Rs 1,702 crore. The growth in Fee and Other Income for FY25 was 15.2 percent. In Q4, operating expenses increased by 12.2 percent to Rs 4,991 crore, while core operating income increased by 8.7 percent to Rs 6,609 crore. During the quarter, core operating profit was Rs 1,618 crore; for the entire year, it increased 17.2 percent to Rs 7,069 crore.
Despite sectoral constraints, asset quality metrics stayed consistent. Net non-performing assets (NPA) climbed by 1 basis point to 0.53 percent, while gross non-performing assets (GNPA) improved by 7 basis points sequentially to 1.87 percent. With the microfinance portfolio excluded, the retail, rural, and MSME book's gross non-performing assets (NPA) increased to 1.40%.
At 72.3%, the Provision Coverage Ratio (PCR) was in good health. For FY25, the total provisions were Rs 5,515 crore, or 2.46 percent of the loan book. The adjusted credit cost for the year, excluding microfinance and one toll account, was 1.76 percent; in Q4, it improved 9 basis points from the previous quarter to 1.73 percent. In Q4 of FY25, the bank's gross slippages were Rs 2,175 crore, somewhat less than the Rs 2,192 crore in Q3.
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