IDFC First Bank Q3 Profit Falls 53% to Rs 339 Cr on Higher Provisions

IDFC First Bank on Saturday reported 53% decline in net profit at Rs 339 crore for the third quarter ended December 2024 on increased provisions due to higher slippages of loans.

The private sector lender had earned a net profit of Rs 716 crore in the same quarter a year ago.

Total income increased to Rs 11,123 crore during the quarter from Rs 9,396 crore in the same period a year ago, IDFC First Bank said in a regulatory filing.

Interest income increased to Rs 9,343 crore from Rs 7,879 crore a year ago.

Read More: IDFC FIRST Bank Q4 Profit Falls 10% To Rs 724 Cr On Higher Provisions

On the asset quality front, the bank's gross non-performing assets ratio improved to 1.94% from 2.04% a year ago.

Similarly, net NPAs, or bad loans, came down to 0.52% from 0.68% at the end of the third quarter last fiscal.

However, overall provisions, excluding tax doubled to Rs 1,338 crore from Rs 655 crore in the same quarter a year ago.

Provisions coverage ratio on non-performing loans was 78.2% as on December 31, 2024.

The gross slippage for Q3-FY25 was Rs 2,192 crore as compared to Rs 2,031 crore in Q2 FY 2025, an increase of Rs 162 crore, it said.

"Majority of the increase in slippage during Q3FY 25 was from the microfinance business which constituted Rs 143 crore out of the said Rs 162 crore. Hence, gross slippage on the Retail, MSME, Agri and Corporate Loans, i.e., the non-microfinance business was stable. These businesses constituted about 95% of the total book of the bank," it said.

Capital Adequacy Ratio also declined to 15.65% from 16.73% at the end of third quarter of previous financial year.

The bank completed merger with IDFC Ltd in October 2024 through which Rs 618 crore of capital has been added to the net-worth, whereas the outstanding share count has been reduced by 16.64 crore.