IDFC First Bank shares decline 5% as profit contracts 58% YoY, dividend announced; check details

Shares of IDFC First Bank slipped 4.49% on Monday, April 28, to an intra-day low of ₹63.11 apiece on the National Stock Exchange (NSE) after it reported a 58% year-on-year (YoY) fall in its Q4 net profit.

IDFC First stock was trading 0.36% lower at ₹65.84 apiece as of 11:13 am.

For the March quarter of the 2024-25 financial year, IDFC First Bank’s net profit stood at ₹304.08 crore, compared to ₹724.35 crore in the corresponding period last year.

The bank clocked a net interest income (NII) of ₹4,469 crore in the fourth quarter of FY25 (Q4FY25), jumping 9.8% YoY from ₹4,4609 crore in the March quarter of FY24 (Q4FY24).

Its assets under management (AUM) touched ₹42,665 crore, up 27% YoY in the quarter under review.

The bank’s customer deposits grew 25.2% YoY to ₹ 2.43 lakh crore as of March 31, 2024, from ₹1.94 lakh crore in Q4FY24.

IDFC First Bank’s gross non-performing assets (GNPA) improved by 7 basis points sequentially to 1.84% as of March 31, 2025, from 1.94% a quarter prior. Its Net NPA increased marginally by 1 bps QoQ from 0.52% as of December 31, 202,4 to 0.53% as of March 31, 2025.

Commenting on the quality of its assets, the bank stated: “Considering the increase in delinquency of the microfinance business across the industry, the bank is tracking the microfinance business closely. The asset quality indicators, including gross NPA, net NPA, SMA and Provisions of the book excluding MFI (microfinance institution), are stable.”

Subsequently, its microfinance portfolio saw a 28.3% YoY downturn, proportional to its overall loan book, which reduced by 4% in March 2025, compared to the 6.6% in March 2024.

V Vaidyanathan, Managing Director and CEO of IDFC FIRST Bank, commented: “Our customer deposits grew well at 25% YoY and the CASA ratio continues to remain strong at 46.9%, reflecting the strength of our deposit franchise. Our funded asset book grew by 20.4%. Importantly, the Bank's asset quality remains resilient, with GNPA and NNPA at 1.87% and 0.53% respectively.”

“Further, an affiliate entity of Warburg Pincus LLC and a wholly owned subsidiary of the private equity division of Abu Dhabi Investment Authority (ADIA), has committed to invest ~₹7,500 crore in the Bank (subject to necessary regulatory and shareholders’ approvals), which will further strengthen our Capital Adequacy Ratio and support our next phase of growth,” he added.

“We continue to be committed to grow responsibly, serve high-quality products and services, lead with innovation and build customer-centric propositions,” Vaidyanathan stated.

IDFC First Bank Board greenlights dividend

The board of IDFC First Bank recommended a final dividend of ₹0.25 per equity share with a face value of ₹10 each, at 2.5% of the face value, for FY25.

The payment of the dividend is subject to shareholder approval at the ensuing Annual General Meeting (AGM).

IDFC First stock performance

Shares of IDFC First Bank gained 4.89% over the past week and 20.12% since the beginning of April. The stock has surged 4.53% on a year-to-date basis.

The scrip touched its 52-week low of ₹52.46 on April 7, 2025, and a high of ₹86.10 almost a year ago on April 26, 2024.

IDFC First Bank has a total market capitalisation of ₹48,327.76 as of April 28, 2025, on the NSE.