IDFC First Bank Q4 Results: Net Profit Falls 58%, Strong Growth in Deposits and Loan Book
Business and Industry Overview:
IDFC First Bank is a private bank in India. It started on October 1, 2015, after IDFC Bank became a full bank. In December 2018, it merged with Capital First, a finance company. This merger helped the bank focus on retail banking instead of infrastructure financing. The bank’s main office is in Mumbai. It has more than 970 branches across India and serves 38 million customers. The bank offers both digital and traditional banking services. It has ₹2.27 lakh crore in deposits and ₹2.31 lakh crore in loans. The bank covers over 60,000 cities, towns, and villages in India. IDFC First Bank provides many services, such as savings and current accounts, credit cards, home loans, fixed deposits, and wealth management. It also offers investment and corporate banking services. The bank is committed to ethical banking and aims to help people access banking services, especially in rural areas. In September 2024, the bank merged with its parent company, IDFC Limited. This helped the bank grow even more and become a stronger player in the Indian banking sector.
Latest Stock News:
IDFC First Bank’s stock has gone down recently because the bank’s profit dropped by 58% in the last quarter. The reason for this is that the bank had problems with its small loans, called microfinance loans, which are given to people with low incomes. More people failed to repay these loans, which affected the bank’s profit. Even though the profit went down, the bank did well in other areas. Its deposits grew by 25.2%, meaning more people are saving money with the bank. The bank also earned 9.8% more money from loans, which shows that its main business of lending money is still growing. The bank also plans to raise ₹7,500 crore by getting new investors like Warburg Pincus and the Abu Dhabi Investment Authority (ADIA). This will help the bank get stronger financially. The bank is offering a small dividend of ₹0.25 per share, but this needs to be approved first. Even with the good growth in deposits and loans, some experts think the drop in profit could be a short-term problem. Some see it as a chance to buy the stock at a lower price. However, others are worried that the problems with the small loans could keep hurting the bank’s profit. Investors should be careful and watch how the bank performs in the future.
Segmental information:
- Retail Banking: This is the part of the bank that serves individual customers. It offers things like savings accounts, personal loans, home loans, credit cards, and fixed deposits. The bank tries to make banking easier through online services.
- Corporate Banking: This part of the bank focuses on businesses. It provides loans to companies, helps with managing cash, and offers services like trade finance. It also offers business accounts for companies.
- Wholesale Banking: This segment serves big companies and government projects. It offers large loans for infrastructure and other big projects. It also provides specialized financial services to big clients.
- Treasury Operations: The bank invests in things like government bonds and other financial products. This helps the bank earn money and reduce risk.
- Investment Banking and Wealth Management: The bank helps companies raise money through investment banking. It also offers advice on buying or selling companies. For individuals, it provides services to help them grow their wealth through investments.
Subsidiary information:
- IDFC First Bharat Limited: This company is fully owned by IDFC First Bank. It helps provide financial services like loans and insurance to women in rural areas. It works in five states in India.
- IDFC Limited: This company used to be separate but merged with IDFC First Bank in October 2024. Before the merger, IDFC Limited worked in areas like asset management, investment banking, and finance for infrastructure projects.
Q4 Highlights:
- Net Profit: ₹304 crore, down by 58% from ₹724.3 crore in Q4 FY24.
- Net Interest Income (NII): ₹4,907.1 crore, up by 9.8% from ₹4,468.9 crore last year.
- Total Income: ₹11,308 crore, up from ₹9,861 crore in Q4 FY24.
- Interest Income: ₹9,413 crore, up from ₹8,219 crore last year.
- Gross Non-Performing Assets (NPAs) Ratio: Improved to 1.87% from 1.88% last year.
- Net NPAs (Bad Loans): Reduced to 0.53% from 0.60% in the same quarter last year.
- Provisions (excluding taxes): ₹1,450 crore, double from ₹722 crore in Q4 FY24.
- Dividend: ₹0.25 per share, subject to approval from shareholders.
Financial Summary:
| Amount in ₹ Crore | Q4 FY24 | Q4 FY25 | FY24 | FY25 |
| Revenue | 8,220 | 9,413 | 30,325 | 36,502 |
| Expenses | 5,164 | 6,459 | 17,899 | 24,406 |
| EBITDA | -694 | -1,551 | -1,444 | -5,112 |
| OPM | -8% | -16% | -5% | -14% |
| Other Income | 1,642 | 1,895 | 5,932 | 6,977 |
| Net Profit | 732.00 | 296 | 2,942 | 1,490 |
| NPM | 8.91 | 3.14 | 9.70 | 4.08 |
| EPS | 1.04 | 0.4 | 4.16 | 2.04 |