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IDFC First Bank announced its unaudited financial results for the quarter ended December 31, 2024, and for the nine months of FY25. The bank reported a strong performance in terms of deposits and loans, with customer deposits growing by 28.8% year-on-year to ₹2,27,316 crore, and loans and advances growing by 22.0% year-on-year to ₹2,31,074 crore.
The bank’s cost of funds for Q3 FY25 was 6.49%, and its CASA (Current Account Savings Account) ratio remained stable at 47.7%. The bank’s retail deposits account for approximately 80% of its total customer deposits.
The bank also reported significant growth in its other businesses, including:
* Wealth Management AUM (Assets Under Management), which grew by 53% year-on-year to ₹42,778 crore
* FASTag, which has issued 22 million FASTags
* Tax collections, which the bank is now doing for the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC)
The bank’s asset quality remained stable, with a gross NPA (Non-Performing Asset) of 1.94% and a net NPA of 0.52%. However, the bank has been monitoring the microfinance loan book closely, given the increasing default rate in the sector.
The bank’s provisioning for Q3 FY25 was driven by higher slippages in the microfinance book, and the bank did not use its microfinance provisioning buffer.
The bank’s net interest income (NII) rose by 14% year-on-year to ₹4,902 crore, while its net profit decreased by 53% year-on-year to ₹339 crore. The decline in net profit was primarily due to slower income growth from microfinance loan disbursements, higher provisioning for microfinance, and the normalization of credit costs in the non-microfinance business.
Overall, the bank’s capital position remained healthy, with a total capital adequacy ratio (CAR) of 16.11% and a common equity Tier 1 (CET-1) ratio of 13.68%.