“IDFC First Bank FY25 Q4 Results: Navigating Challenges, Declaring Dividends”

IDFC First Bank today, April 26, 2025, announced its Q4 FY25 results, reporting a significant decline in profit due to elevated provisions and challenges in its microfinance portfolio.

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Key Financial Highlights (Q4 FY25)

Net Profit: ₹304 crore, down 58% from ₹724 crore in Q4 FY24, primarily due to elevated provisions and asset quality issues in the microfinance segment

Net Interest Income (NII): ₹4,907 crore, up 9.8% year-on-year from ₹4,469 crore in Q4 FY24 .

Net Interest Margin (NIM): 5.95%, a sequential decline from 6.04% in Q3 FY25, attributed to a contraction in the microfinance business

Fee and Other Income: ₹1,702 crore, a 5.7% increase compared to ₹1,610 crore in Q4 FY24

Operating Expenses: ₹4,991 crore, up 12.2% year-on-year from ₹4,447 crore in Q4 FY24

Core Operating Profit: ₹1,618 crore, a slight decrease from ₹1,632 crore in Q4 FY24

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Asset Quality

Gross NPA (GNPA): 1.87%, marginally down from 1.88% in Q4 FY24

Net NPA (NNPA): 0.53%, an improvement from 0.60% in the same period last year

The bank has been reducing its microfinance loan book, which stood at ₹9,571 crore as of March 31, 2025, down from ₹13,334 crore a year earlier

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Dividend Announcement

The Board of Directors has proposed a dividend of ₹0.25 per equity share, subject to shareholder approval at the upcoming Annual General Meeting

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1: Introduction

• Quick overview of IDFC First Bank
• Purpose of the blog: analyzing the Q4 FY25 results and what it means for investors and the banking sector.

2: Key Financial Performance

• Net Profit drop by 58%: reasons explained (microfinance stress, higher provisions).
• Growth in Net Interest Income (NII) and Fee Income.
• Net Interest Margin (NIM) trends and analysis.

3: Asset Quality Snapshot

• Gross NPA and Net NPA performance compared to last year.
• Focus on microfinance portfolio reduction.

4: Operational Metrics

• Rise in operating expenses and impact on profitability
• Core operating profit analysis

5: Dividend Declaration

• ₹0.25 dividend per share — what this means for shareholders
• Bank’s overall capital position

6: Challenges and Opportunities Ahead

• Risks due to microfinance portfolio
• Areas of strength (retail banking, deposits, digital initiatives).

7: Conclusion

• Summary of Q4 results
• Future outlook for IDFC First Bank: cautious optimism with focus on asset quality

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