Mumbai, January 25, 2025.
IDFC FIRST Bank has reported a strong financial performance for Q3 FY25, with a Profit After Tax (PAT) of Rs. 339 crore and a 15% YoY increase in core operating profit. The bank saw significant growth in key areas, including a 28.8% rise in customer deposits and a 22% increase in loans and advances. Despite challenges in the microfinance sector, the bank’s asset quality remains stable, supported by a solid capital position following its recent merger.
Financial results
IDFC FIRST Bank today announced the unaudited financial results for the quarter and nine months ended December 31, 2024.
Deposits & Borrowings
• Customer Deposits increased 28.8% YOY from Rs. 1,76,481 crore as of December 31, 2023 to Rs. 2,27,316 crore as of December 31, 2024.
• Retail Deposits grew by 29.6% YOY from Rs. 1,39,431 crore as of December 31, 2023 to Rs. 1,80,752 crore as of December 31, 2024.
• CASA Deposits grew by 32.3% YOY from Rs. 85,492 crore as of December 31, 2023 to Rs. 1,13,078 crore as of December 31, 2024.
• CASA Ratio stood at 47.7% as of December 31, 2024.
• Retail Deposits constitute ~80% of total customer deposits as of December 31, 2024.
• Cost of Funds for the Bank was 6.49% in Q3-FY25. Excluding the high-cost legacy borrowings, the cost of funds was 6.43% in Q3-FY25. The cost of deposits remained stable at 6.38% over Q2 FY 25.
Other Businesses
• Credit cards issued by the Bank crosses 3.2 million mark during last quarter.
• Wealth Management AUM (including deposit balances) grew 53% YoY to touch Rs. 42,778 crore
• Fastag: Bank remains the largest issuer bank with 22 million FASTag issued.
• Tax collections: Bank has been empaneled to collect Direct Taxes on behalf of Central Board of Direct Taxes (CBDT) and GST collections on behalf of Central Board of Indirect Taxes and Customs (CBIC), Govt. of India. Bank has completed technical integration and started collecting taxes.
Loans and Advances
• Loans and Advances (including credit substitutes) increased by 22.0% YOY from Rs. 1,89,475 crore as of December 31, 2023 to Rs. 2,31,074 crore as of December 31, 2024.
• The retail book of the bank grew by 21.3% YoY while the corporate (non-infrastructure) loans grew by 28.9% YoY at December 31, 2004.
• The Bank’s legacy infrastructure book reduced by 15% YoY to Rs. 2,546 crore as of December 31, 2024, constitutes 1.1% of the total funded assets of the Bank.
• Microfinance portfolio as % of overall loan book reduced from 5.6% in Sep-2024 to 4.8% in Dec-2024.
Assets Quality
Considering the increase in delinquency of the micro finance 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 Non-microfinance business, which is ~95% of the total loan book, is stable.
