IDFC FIRST Bank Share Price Dips 6.89%; Profit Declines 53% in Q3 FY25 Results

IDFC FIRST Bank Limited has been in focus on Monday following the announcement of Q3 FY 2025 financial results.

On January 27, 2025, IDFC FIRST Bank share price (NSE: IDFCFIRSTB) opened at ₹59.01, down from its previous close of ₹62.27. At 11:22 AM, the share price of IDFC FIRST Bank was trading at ₹57.98, down by 6.89% on the NSE.

Q3 FY 2025 Financial Highlights

In Q3 FY25, the bank reported a notable increase in customer deposits, which grew by 28.8% year-on-year (YoY), rising from ₹1,76,481 crore as of December 31, 2023, to ₹2,27,316 crore as of December 31, 2024.

Retail deposits, in particular, saw growth, expanding by 29.6% YoY, from ₹1,39,431 crore to ₹1,80,752 crore during the same period. The CASA (Current Account and Savings Account) deposits also increased by 32.3% YoY, reaching ₹1,13,078 crore from ₹85,492 crore, contributing to a CASA ratio of 47.7% as of December 31, 2024. Notably, retail deposits now constitute around 80% of the total customer deposits.

On the lending front, loans and advances (including credit substitutes) grew by 22.0% YoY, from ₹1,89,475 crore as of December 31, 2023, to ₹2,31,074 crore as of December 31, 2024, reflecting strong credit demand across segments.

The bank’s Net Interest Income (NII) grew by 14% YoY, from ₹4,287 crore in Q3 FY24 to ₹4,902 crore in Q3 FY25. For the nine months ended FY25, NII saw a growth of 20.1% YoY. However, the bank’s Net Interest Margin (NIM) slightly declined to 6.04% in Q3 FY25, compared to 6.18% in Q2 FY25, primarily due to a decline in the micro-finance business and an increase in the share of wholesale banking in the bank’s portfolio.

Net profit, however, saw a significant decline of 53% YoY, falling from ₹716 crore in Q3 FY24 to ₹339 crore in Q3 FY25. Sequentially, the net profit grew by 69% QoQ from ₹201 crore in Q2 FY25. This decrease in profit was mainly due to reduced income from slowed disbursals of micro-finance loans, increased provisions for micro-finance, and the normalization of credit costs in non-microfinance businesses. The bank continues to focus on managing its business risks while improving its overall performance in a challenging macroeconomic environment.

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