IDFC First Bank Reports 15% Drop in Q3 Net Profit, NII Rises by 14%
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Synopsis
IDFC First Bank's Q3 results show a 15% drop in net profit to Rs 339 crore, while net interest income rises 14% to Rs 4,902 crore. The bank maintains stable asset quality amid challenges in the microfinance segment.
Key Takeaways
- Net profit fell by 15% to Rs 339 crore.
- Net interest income grew 14% to Rs 4,902 crore.
- Stable asset quality with GNPA at 1.94%.
- Operating income rose by 15%.
- Loans and advances increased by 22%.
Mumbai, Jan 25 (NationPress) Private lender IDFC First Bank disclosed its quarterly performance for the period ending December 2024, revealing a 15 percent year-over-year decrease in net profit, amounting to Rs 339 crore, down from Rs 716 crore during the same quarter of the previous year.
Despite the profit decline, the bank's net interest income (NII) saw a growth of 14 percent YoY, reaching Rs 4,902 crore, an increase from Rs 4,287 crore in Q3 FY24, as per its exchange filing.
The bank's asset quality remained steady, with a gross non-performing asset (GNPA) ratio of 1.94 percent and a net NPA (NNPA) ratio of 0.52 percent.
When excluding the microfinance loan portfolio, the GNPA and NNPA ratios were recorded at 1.81 percent and 0.49 percent, respectively.
The net interest margin (NIM) for Q3 FY25 was reported at 6.04 percent, slightly down from 6.18 percent in the previous quarter.
This decline is linked to diminished contributions from the microfinance sector and a larger share of wholesale banking operations.
Operating income climbed by 15 percent to Rs 6,682 crore, compared to Rs 5,803 crore in the same period last year, while operating expenses grew by 16 percent YoY to Rs 4,923 crore during the same timeframe.
The bank's core operating profit, excluding trading gains, rose by 15 percent YoY to Rs 1,736 crore, as stated in the filing.
Challenges in the microfinance segment were acknowledged by the bank, described as temporary, with expectations of stabilization in upcoming quarters.
“We are closely monitoring the microfinance loan portfolio due to the current industry situation,” stated V Vaidyanathan, Managing Director and CEO of IDFC FIRST Bank.
He highlighted the private lender's robust performance across various segments, including deposits, credit cards, wealth management, corporate banking, and gold loans.
He added, “The bank is continuing to experience healthy growth in loans and deposits. Customer deposits have surged by 29 percent YoY, now totaling Rs 2,27,316 crores, with the CASA ratio maintaining at 48 percent.
Vaidyanathan also mentioned that loans and advances have steadily increased by 22 percent YoY, reaching Rs 2,31,074 crores.
