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IDFC First Bank
26-Jan-25   08:29 Hrs IST
IDFC First Bank has reported 53% dip in net profit at Rs 339.43 crore for the quarter ended December 2024 (Q3FY2025). The bank has posted healthy 14% growth in net interest income (NII), while the core fee income of the bank also improved 20% in Q3FY2025. The Net Interest Margin (NIM) of the bank eased to 6.04% in Q3FY2025 compared to 6.42% in the corresponding quarter of previous year.

On business front, the bank as has posted 26% growth in business with strong 22% surge in loan book. The asset quality of the bank was under pressure in Q3FY2025. Bank has substantially reduced the credit to deposit ratio to 97.5% at end December 2024 from 103.8% at end December 2023. The CASA ratio of the bank has improved to 47.7% at end December 2024 from 46.8% at end December 2023.

Asset quality shows pressure: The bank has witnessed pressure on asset quality in Q3FY2025.

The fresh slippages of loans stood at Rs 2192 crore in Q3FY2025 compared with 2030 crore in previous quarter and Rs 1422 crore in the corresponding quarter last year.

The recoveries and upgradations of NPAs was at Rs 651 crore and the write-off of loans was at Rs 1337 crore in Q3FY2025.

The capital adequacy ratio of the bank stood at 16.1% with Tier I ratio at 13.7% at end December 2024.

The risk weighted assets of the bank has increased 21% YoY to Rs 265452 crore end December 2024,

Asset Quality Indicators: IDFC First Bank

'

Dec-24

Sep-24

Jun-24

Mar-24

Dec-23

Variation

QoQ

YTD

YoY
Gross NPA (Rs Crore)

 4399.32

 4195.19

 3904.20

 3718.36

 3775.39

 5

 18

 17
Net NPA (Rs Crore)

 1161.96

 1037.61

 1195.28

 1160.46

 1250.34

 12

 0

 -7
% Gross NPA

 1.94

 1.92

 1.90

 1.88

 2.04

 2

 6

 -10
% Net NPA

 0.52

 0.48

 0.59

 0.60

 0.68

 4

 -8

 -16
% CRAR - Basel III

 16.11

 16.36

 15.88

 16.11

 16.73

 -25

 0

 -62
% CRAR - Tier I - Basel III

 13.68

 13.84

 13.34

 13.36

 13.95

 -16

 32

 -27

Variation in basis points for figures given in percentages and in % for figures in Rs crore

'

Business Highlights:

Healthy business growth: The business of the bank has increased 26% YoY to Rs 467952 crore end December 2024, driven by 22% surge in advances to Rs 231074 crore. Deposits rose 30% to Rs 236878 crore at end December 2024.

CASA deposits ratio improves: The CASA deposits of the bank increased 32% YoY to Rs 113078 crore at end December 2024. The CASA ratio improved to 47.7% at end December 2024 compared to 46.8% at end December 2023, while eased from 48.9% a quarter ago. The term deposits have increased 28% to Rs 123800 crore end December 2024.

Strong loan growth: Advances growth was driven by retail loans rising 21% YoY to Rs 134949 crore at end December 2024, while credit to agriculture increased 5% to Rs 25234 crore and MSME 41% to Rs 28956 crore at end December 2024. The corporate credit has jumped 25% to Rs 41935 crore end December 2024.

Investment book of the bank moved up 27% YoY to Rs 81033 crore at end December 2024.

Margins ease: The bank has showed 5 bps YoY jump in cost of deposits to 6.49%. Thus, the NIM has declined 38 bps YoY and fell 14 bps qoq to 6.04%.

Branch expansion: The bank has added 10 branches and 0 ATMs in Q3FY2025, taking overall tally to 971 branches and 1216 ATM`s end December 2024.

Book value of the bank stood at Rs 51.5 per share at end December 2024, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 49.8 per share at end December 2024.

Quarterly Performance

NII rises as NIM improves: Bank has recorded 19% increase in the interest earned at Rs 9343.02 crore, while interest expenses increased 24% to Rs 4440.96 crore in Q3FY2025. NII improved 14% to Rs 4902.06 crore in the quarter ended December 2024.

Healthy growth in the core fee income: Bank has posted strong 20% growth in core fee income to Rs 1757 crore, while the treasury income declined 52% to Rs 23 crore. The overall non-interest income increased 17% to Rs 1779.85 crore in the quarter ended December 2024.

Expenses ratio rises: The operating expenses of the bank increased 16% to Rs 4922.97 crore, as other expenses moved up 16% to Rs 3502.64 crore, while employee expenses increased 16% to Rs 1420.33 crore in Q3FY2025. Cost to income ratio was rose to 73.7% in Q3FY2025 compared with 73.1% in Q3FY2024. The operating profit increased 13% to Rs 1758.94 crore.

Provisions and contingencies surges: The bank has shown 104% jump in provisions to Rs 1337.92 crore.

Effective tax rate declined to 19.4% in Q3FY2025 from 21.2% in Q3FY2024. Net Profit dipped 53% YoY to Rs 339.43 crore during quarter ended December 2024.

Financial Performance 9MFY2025:

Bank has posted 45% decline in net profit to Rs 1220.77 crore in the nine months ended December 2024 (9MFY2025). The net interest income increased 20% to Rs 14384.81 crore, while non-interest income moved up 18% to Rs 5126.30 crore, pushing up net total income by 19% to Rs 19511.11 crore in 9MFY2025. The operating expenses increased 18% to Rs 13907.87 crore, while provision and contingencies galloped 145% to Rs 4064.26 crore, causing profit before tax to dip 47% to Rs 1538.98 crore in 9MFY2025. The cost-to-income ratio improved to 71.3% in 9MFY2025 compared to 72.0% in 9MFY2024. An effective tax rate declined to 20.7% in 9MFY2025 compared to 23.4% in 9MFY2024. The net profit has declined 45% to Rs 1220.77 crore in 9MFY2025.

IDFC First Bank: Results

Particulars

2412 (3)

2312 (3)

Var %

2412 (9)

2312 (9)

Var %

2403 (12)

2303 (12)

Var %
Interest Earned

 9343.02

 7879.40

 19

 27088.55

 22103.29

 23

 30322.50

 22727.54

 33
Interest Expended

 4440.96

 3592.83

 24

 12703.74

 10121.41

 26

 13871.75

 10092.21

 37
Net Interest Income

 4902.06

 4286.57

 14

 14384.81

 11981.88

 20

 16450.75

 12635.33

 30
Other Income

 1779.85

 1516.55

 17

 5126.30

 4360.00

 18

 6002.00

 4466.97

 34
Net Total Income

 6681.91

 5803.12

 15

 19511.11

 16341.88

 19

 22452.75

 17102.30

 31
Operating Expenses

 4922.97

 4240.65

 16

 13907.87

 11768.82

 18

 16215.78

 12170.35

 33
Operating Profits

 1758.94

 1562.47

 13

 5603.24

 4573.06

 23

 6236.97

 4931.95

 26
Provisions & Contingencies

 1337.92

 654.81

 104

 4064.26

 1659.34

 145

 2381.65

 1664.82

 43
Profit Before Tax

 421.02

 907.66

 -54

 1538.98

 2913.72

 -47

 3855.32

 3267.13

 18
EO

 0.00

 0.00

 -

 0.00

 0.00

 -

 0.00

 0.00

 -
PBT after EO

 421.02

 907.66

 -54

 1538.98

 2913.72

 -47

 3855.32

 3267.13

 18
Provision for tax

 81.59

 191.98

 -58

 318.21

 681.56

 -53

 898.81

 830.00

 8
PAT

 339.43

 715.68

 -53

 1220.77

 2232.16

 -45

 2956.51

 2437.13

 21
EPS*(Rs)

 1.9

 3.9

 '

 2.2

 4.1

 '

 4.0

 3.33

 '
Adj BV (Rs)

 49.8

 42.6

 '

 49.8

 42.6

 '

 43.7

 36.7

 '

* Annualized on current equity of Rs 7320.51 crore. Face Value: Rs 10, Figures in Rs crore

Source: Capitaline Corporate Database
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