IDFC First Bank Q4 Results: Net profit plunges 58% YoY to ₹304 crore on higher provisions

The private sector lender had earned a net profit of ₹724 crore in the same quarter a year ago.

The interest income increased to ₹9,413 crore for the reporting quarter as against ₹8,219 crore in the same quarter a year ago.

On the asset quality front, the bank's gross non-performing assets ratio improved marginally to 1.87% against 1.88% a year ago.

Similarly, its net NPAs, or bad loans, came down to 0.53% from 0.60% in the March quarter of the previous year.

However, the overall provisions excluding tax doubled to ₹1,450 crore from ₹722 crore in the same quarter a year ago.

For the full year FY25, the net profit decreased by 48% to ₹1,525 crore as against ₹2,957 crore registered in the previous year, largely impacted by the issues in the microfinance industry.

The board has also approved a dividend of ₹0.25 per share, subject to shareholders' approval in the ensuing annual general meeting.

Recent updates

Earlier in April, IDFC First Bank said its board has approved raising ₹7,500 crore in aggregate by way of preferential share allotment to arms of Warburg Pincus LLC and ADIA.

"The board of directors approved a preferential issue of equity capital amounting to approximately ₹4,876 crore to Currant Sea Investments B.V., an affiliate company of global growth investor Warburg Pincus LLC, and ₹2,624 crore to Platinum Invictus B 2025 RSC Limited, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) managed by its Private Equities Department," the company said in its regulatory filing on April 17.

The proposed issues are subject to shareholder and regulatory approvals, IDFC First Bank said in a statement.

"We believe only by building a strong, respected franchise loved by customers and supported by strong unit economics will we deliver sustainable long-term returns to our stakeholders," said V. Vaidyanathan, Managing Director & CEO, IDFC FIRST Bank.