IDFC First Bank’s third quarter net profit declined by 15 percent
MUMBAI MUMBAI: Private lender IDFC First Bank on Saturday announced its quarterly results for the period ended December 2024, reporting a 15 per cent year-on-year decline in net profit to Rs 339 crore as against Rs 716 crore in the same quarter last year.Despite the drop in profit, the bank’s net interest income (NII) grew 14 per cent year-on-year to Rs 4,902 crore as against Rs 4,287 crore in Q3 FY24, as per its exchange filing.The bank’s asset quality remained stable, with gross non-performing asset (GNPA) ratio at 1.94 per cent and net NPA (NNPA) ratio at 0.52 per cent.
Excluding the microfinance loan portfolio, the GNPA and NNPA ratios stood at 1.81 per cent and 0.49 per cent, respectively.The bank’s net interest margin (NIM) stood at 6.04 per cent in Q3 FY25, slightly lower than 6.18 per cent in the previous quarter.The decline is due to lower contribution from microfinance business and higher share of wholesale banking operations.
Operating income grew 15 per cent to Rs 6,682 crore during the period as against Rs 5,803 crore in the same period a year ago, while operating expenses rose 16 per cent to Rs 4,923 crore during the same period.According to the filing, the bank’s core operating profit, which excludes trading profit, grew 15 per cent to Rs 1,736 crore.The bank acknowledged the challenges in its microfinance segment and termed them temporary and said they are likely to stabilise in the coming quarters.
IDFC First Bank Managing Director and CEO V Vaidyanathan said, “We are closely tracking the micro-finance loan book given the industry situation.” He pointed to the private lender’s strong performance in other segments including deposits, credit cards, wealth management, corporate banking and gold loans.
“The bank continues to post good growth on loans and deposits. Customer deposits have grown 29 per cent year-on-year to Rs 2,27,316 crore, while the CASA ratio remains at 48 per cent,” he said.
Vaidyanathan further said loans and advances have grown 22 per cent year-on-year to Rs 2,31,074 crore.
