IDFC First Bank Q1 Profit Drops 32% to ₹463 Cr

Private sector IDFC First Bank on Saturday reported a 32% slump in net profit to ₹463 crore during the first quarter of the current financial year, impacted by slippages in the micro-finance book.

The Mumbai-based lender had earned a net profit of ₹681 crore in the same quarter of the previous fiscal year.

The total income rose to ₹11,869 crore during the June quarter of 2025-26 from ₹10,408 crore in the same quarter of FY25, IDFC First Bank said in a regulatory filing.

Interest earned by the bank improved to ₹9,642 crore compared to ₹8,789 crore in the June quarter FY25.

Net interest income also increased to ₹4,933 crore during the quarter against ₹4,695 crore in the year-ago period.

The bank's asset quality showed deterioration as gross non-performing assets (NPAs) declined to 1.97% of gross advances at the end of the June quarter from 1.90% a year ago.

However, net NPAs, or bad loans, improved to 0.55% against 0.59% in the year-ago period.

Provisions for the quarter rose significantly to ₹1,659 crore compared to ₹994 crore in the same period of the previous fiscal due to slippages in the micro-finance book.

Return on Assets (ROA) declined to 0.53% for June 2025 from 0.91% at the end of June 2024, registering a fall of 38 bps, it said.

At the same time, the capital adequacy ratio slipped to 14.86% from 15.59% in the same quarter of FY25.