In This Article:
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Balance Sheet Size: 3.4 lakh crores, growth of 16% YOY.
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Customer Deposits: Increased by 25% YOY to 2.42 lakh crores.
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CASA Ratio: Stable around 47%, with CASA deposits up 25% YOY.
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Term Deposits: Grew by 26% YOY, with retail term deposits up 28% YOY.
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Branch Count: Exceeded 1,000 branches, with 31 new branches opened in the quarter.
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Credit to Deposit Ratio: Reduced to 93.9% from 98.4% in March 2024.
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Cost of Funds: Stable at 6.5% for the quarter.
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Funded Assets Growth: 20.4% YOY to 2.42 lakh crores.
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Gross NPA: 1.87%, with net NPA at 0.53%.
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Provision Coverage Ratio (PCR): 72.3%, improved by 347 basis points YOY.
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Net Interest Income (NII): Grew by 17% YOY for FY25, 15% YOY for Q4.
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Net Interest Margin (NIM): 5.95% for the quarter.
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Operating Expenses: Growth moderated to 16.5% for the year, 12.2% for Q4.
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Profit After Tax (PAT): 1,525 crores for FY25, 304 crores for Q4.
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Capital Adequacy Ratio: 15.48%, with CET1 ratio at 13.17%.
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Dividend: Recommended at 25% for FY25, subject to shareholder approval.
Release Date: April 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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IDFC First Bank Ltd (BOM:539437) reported a strong growth in customer deposits, increasing by 25% year-over-year, with retail deposits growing at 26%.
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The bank's CASA ratio remained stable at around 47%, with CASA deposits increasing by 25% year-over-year.
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The bank achieved operational break-even in its credit card business within four years of launch, with gross spends on credit cards growing by 40% in FY25.
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Asset quality showed improvement, with the gross NPA reducing to 1.87% and net NPA at 0.53%.
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The bank maintained a strong capital adequacy ratio of 15.48%, with a CET1 ratio of 13.17% as of March 31, 2025.
Negative Points
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The bank's profitability was impacted by the microfinance business, leading to a decline in profit after tax to INR 1,525 crore for FY25.
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Credit costs increased to 2.46% for the year, primarily due to challenges in the microfinance sector.
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The bank's operating expenses grew by 16.5% for the full year, which is higher than the growth in operating income.
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There was an increase in SMA 1 and 2 of the microfinance book, rising from 4.56% to 5.1%.
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The bank's return on equity remains a focus area, with current levels around 7%, and efforts are ongoing to improve this to 15%.
Q & A Highlights
Q: Post the implementation of new microfinance guidelines, how have business trends changed in terms of approval rates, disbursements, and collection efficiencies? A: Sudhanshu Jain, CFO, explained that the new guidelines were implemented slightly earlier than required, in February. As a result, disbursements decreased to about 760 crores in the current quarter, but no further impact is expected.