IDFC First Bank net profit dips 11% to ₹681 crore in Q1FY25

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IDFC First Bank reported a 11 per cent dip in first quarter (Q1FY25) net profit at ₹681 crore despite healthy growth in net interest income and other income, as the bottomline was impacted by a sharp increase in non-tax provisions.

The private sector bank had reported a net profit of ₹765 crore in the year-ago period.

Net interest income (difference between interest earned and interest expended) rose 25 per cent yoy to ₹4,695 crore (₹3,745 crore in the year-ago quarter).

Other income, comprising income (including commission) from non-fund based banking activities, fees, earnings from foreign exchange, profit/ loss on sale of assets, profit/ loss (including revaluation) from investments, recovery from accounts written off, etc, was up 14.5 per cent at ₹1,619 crore (₹1,414 crore).

The net interest margin (NIM) on Assets Under Management for Q1FY25 was lower at 6.22 per cent, as compared to 6.35 per cent in Q4FY24.

The bank said the drop in NIM was primarily due to a higher sequential increase in the average investment book by 11.8 per cent, as compared to 4.6 per cent in average advances, which impacted NIM by 8 basis points.

Non-tax provisions jumped 109 per cent yoy to ₹994 crore (₹476 crore). Tax expenses declined 20 per cent yoy to ₹207 crore (₹259 crore).

The gross non-performing assets (NPA) to gross advances position improved to 1.90 per cent as at June-end 2024, against 2.17 per cent as at June-end 2023.

The net NPAs to net advances position, too, improved to 0.59 per cent from 0.70 per cent.

Total deposits increased by 38 per cent yoy to stand at ₹2,04,572 crore as of June-end 2024. Low-cost CASA (current account, savings account) deposits declined to 46.6 per cent of total deposits, against 47.2 per cent as at March-end 2024.

Total gross loans and advances rose by 22 per cent yoy to stand at ₹2,09,361 crore, with retail finance increasing by 29 per cent, rural finance by 18.2 per cent, and MSME & corporate finance by 13.5 per cent. Infrastructure finance declined by 26.4 per cent.