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
