IDFC FIRST Bank Q4 PAT at ₹1,525 Cr, Deposits Rise 25% YoY in FY25 Earnings Report
IDFC FIRST Bank reported a net profit of ₹1,525 crore for FY25 despite microfinance headwinds, with customer deposits surging 25.2% YoY and strong momentum across retail banking segments.
Key Highlights:
IDFC FIRST Bank Q4 FY25 Results: Profit at ₹1,525 Cr, Deposits Grow 25.2% YoY
IDFC FIRST Bank reported a net profit of ₹1,525 crore for the financial year ended March 31, 2025, with a Core Operating Profit growth of 17.2% YoY, supported by robust growth in deposits, stable asset quality (outside microfinance), and expanding retail banking services.
Despite industry-wide pressure from the microfinance segment, the bank’s core franchise continued to strengthen with total customer deposits increasing 25.2% YoY to ₹2,42,543 crore.
Strong Retail Banking Momentum Drives Deposit Growth
- Retail Deposits grew 26.4% YoY to ₹1,91,268 crore.
- CASA Deposits rose by 24.8% YoY to ₹1,18,237 crore.
- CASA Ratio stood healthy at 46.9%, compared to 47.2% last year.
- Retail deposits now make up 79% of total customer deposits, reaffirming the bank’s low-cost liability franchise.
Loans and Advances Maintain Healthy Double-Digit Growth
- Total Loans and Advances rose 20.4% YoY to ₹2,41,926 crore.
- Retail, Rural & MSME loans surged to ₹1,97,568 crore, a growth of 18.6% YoY.
- Notably, the legacy infra loan book reduced 17% YoY, now below 1% of total funded assets.
- Microfinance portfolio contracted by 28.3% YoY amid industry-wide stress.
Credit Cards, FASTag and Wealth Business Expand Rapidly
- Credit Cards issued crossed 3.5 million during the quarter.
- IDFC FIRST Bank remains the largest FASTag issuer in India with 17.8 million live tags.
- Wealth Management AUM grew 27% YoY to ₹42,665 crore.
NII, Core Income Show Growth Despite Margin Impact
- Net Interest Income (NII) grew 9.8% YoY in Q4FY25 to ₹4,907 crore.
- Fee & Other Income rose 5.7% YoY to ₹1,702 crore in Q4.
- Core Operating Income improved 8.7% to ₹6,609 crore in the quarter.
- For FY25, Core Operating Profit grew 17.2% to ₹7,069 crore.
However, Net Interest Margin (NIM) contracted 9 bps sequentially to 5.95% in Q4FY25 due to the declining microfinance contribution. Full-year NIM stood at 6.09%.
Management Commentary Highlights Growth Confidence
Speaking on the results, Mr. V Vaidyanathan, MD & CEO of IDFC FIRST Bank, said:
“Our customer deposits grew well at 25% YoY and the CASA ratio remains strong at 46.9%, reflecting the strength of our deposit franchise. Our funded asset book grew by 20.4%. The Bank’s asset quality remains resilient with GNPA and NNPA at 1.87% and 0.53% respectively.”
He further emphasized the upcoming capital raise from Warburg Pincus and ADIA which is expected to strengthen capital adequacy and support the bank’s next growth phase.
Why This Matters for Markets
The strong deposit growth and retail performance suggest IDFC FIRST Bank’s core business is on a stable footing, even as the microfinance segment poses challenges. With a robust CASA base and retail-led strategy, analysts may view the bank’s fundamentals positively going into FY26.
The announcement of a ₹7,500 crore capital infusion could also improve market sentiment next week — to be detailed in your Part 3 article.
📌 Coming Up in Part 2 (Sunday Morning):
Detailed deep dive into NPAs, asset quality metrics, slippages, provisions, and the MFI segment pressure.
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