IDFC FIRST Financial institution, a distinguished non-public sector lender, has launched its audited monetary outcomes for the fourth quarter and full yr ended 31 March 2025. Alongside the earnings, the financial institution’s Board of Administrators really useful a dividend of ₹0.25 per fairness share of face worth ₹10 every for the monetary yr 2024-25.
The outcomes reveal a year-on-year (YoY) contraction in web revenue for the quarter, largely attributed to challenges throughout the microfinance sector, whereas key operational metrics like Internet Curiosity Revenue (NII) and deposit development demonstrated resilience. The Financial institution’s share is buying and selling at ₹65.83, with a slight decline of -0.38%.
Monetary Efficiency Highlights
For the fourth quarter of the monetary yr 2024-25 (This autumn FY25), IDFC FIRST Financial institution reported a web revenue of ₹304 crore, a considerable lower of 48.4% in comparison with ₹724 crore in This autumn FY24, on a YoY foundation, settling at ₹1,525 crore, primarily impacted by points within the microfinance trade.
The Internet Curiosity Revenue (NII), which is the core income metric for banks, confirmed development, growing by 9.8% YoY, rising from ₹4,469 crore in This autumn FY24 to ₹4,907 crore in This autumn FY25. For the complete yr FY25, NII development stood at 17.3 p.c YoY. Nonetheless, the Internet Curiosity Margin (NIM) on Property Below Administration (AUM) noticed a sequential decline, decreasing by 9 foundation factors (bps) quarter-on-quarter (QoQ) from 6.04 p.c in Q3 FY25 to five.95 p.c in This autumn FY25. This discount was largely attributed to a decline within the microfinance enterprise. For the complete yr FY25, the NIM was 6.09 per cent.
Different earnings streams contributed positively, with Price and different earnings rising by 5.7 p.c YoY to ₹1,702 crore in This autumn FY25. Core Working earnings additionally elevated by 8.7 p.c, reaching ₹6,609 crore in This autumn FY25 from ₹6,079 crore in This autumn FY24. Regardless of this, the financial institution’s core working revenue (excluding buying and selling acquire) noticed a slight dip from ₹1,632 crore in This autumn FY24 to ₹1,618 crore in This autumn FY25. Excluding the microfinance enterprise, the core working revenue demonstrated comparatively stronger development, up by 19.9 p.c YoY in This autumn FY25 and 30.6 p.c YoY in FY25.
Strong Deposit and Asset Development
IDFC FIRST Financial institution demonstrated robust development in buyer deposits, which elevated by 25.2 p.c YoY to ₹2,42,543 crore as of 31 March 2025. Retail Deposits grew by 26.4 p.c YoY to ₹1,91,268 crore, constituting 79 p.c of complete buyer deposits. CASA (Present Account Financial savings Account) Deposits grew by 24.8 p.c YoY to ₹1,18,237 crore. The CASA Ratio remained robust at 46.9 p.c as of 31 March 2025, in comparison with 47.2 p.c a yr prior.
The financial institution’s funded asset e book grew by 20.4 p.c, with loans and advances totalling ₹2,41,926 crore as of 31 March 2025. The Retail, Rural, and MSME e book, a key focus space, grew by 18.6 p.c YoY to ₹1,97,568 crore. According to managing threat, the Microfinance portfolio lowered by 28.3 p.c YoY, its proportion shrinking from 6.6 p.c to 4.0 p.c of the full mortgage e book. The legacy infrastructure e book additionally continued to scale back, constituting lower than 1 p.c of complete funded property.
Asset High quality and Provisions
The Gross Non-Performing Property (GNPA) ratio improved by 7 foundation factors (bps) quarter-on-quarter (QoQ) to 1.87% in This autumn FY25, whereas the Internet Non-Performing Property (NNPA) ratio inched up by 1 bps to 0.53%. Excluding the microfinance section, GNPA and NNPA ratios throughout Retail, Rural, and MSME portfolios remained secure or confirmed enchancment. The Provision Protection Ratio (PCR) stood robust at 72.3% as of 31 March 2025. Gross slippages for This autumn FY25 had been ₹2,175 crore, marginally decrease by ₹17 crore in comparison with the earlier quarter. Nonetheless, gross slippages within the microfinance e book rose to ₹572 crore from ₹437 crore QoQ. Provisions for FY25 amounted to ₹5,515 crore, representing 2.46% of the mortgage e book, primarily pushed by increased slippages in microfinance.
Administration Outlook and Capital Elevate
IDFC FIRST Financial institution reported robust development in buyer deposits and secure asset high quality, with a wholesome enlargement in its funded asset e book. The financial institution introduced commitments for an fairness funding of roughly ₹7,500 crore from associates of Warburg Pincus LLC and an entirely owned subsidiary of the non-public fairness division of Abu Dhabi Funding Authority (ADIA). The proposed capital elevate, topic to regulatory approvals, goals to bolster the Capital Adequacy Ratio and help future development initiatives.
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