IDFC FIRST Bank shares tanks 7% as Q3 profit dips 53% on higher provisions
IDFC FIRST Bank’s shares tanked 7.02 per cent to ₹57.90 on Monday morning after reporting a 53 per cent year-on-year decline in third-quarter net profit to ₹339 crore, primarily due to doubled provisions for its troubled microfinance portfolio.
The private lender’s provisions surged 104 per cent to ₹1,338 crore in Q3FY25, driven by increased slippages in its microfinance book. Net Interest Income grew 14 per cent to ₹4,902 crore, while Other Income increased 20 per cent to ₹1,757 crore.
The bank’s Net Interest Margin contracted to 6.04 per cent from 6.42 per cent a year ago, attributed to declining microfinance business and increased wholesale banking composition. Gross NPAs slightly increased to 1.94 per cent from 1.92 per cent in the previous quarter.
MD & CEO V Vaidyanathan acknowledged the microfinance challenges but characterized them as temporary, expecting resolution within a few quarters. The bank’s microfinance portfolio contracted 19 per cent to ₹10,997 crore, while overall gross advances grew 22 per cent to ₹2,31,074 crore.
Total deposits showed strong growth of 29 per cent year-on-year, reaching ₹2,27,316 crore, though CASA deposits declined to 47.7 per cent from 48.44 per cent compared to the previous year.
