IDFC FIRST Bank Q1 Results: Net Profit Drops 32% Over Provisions Against MFI Book

IDFC FIRST Bank Q1 Results: A jump in provisions against bad loans has led IDFC First Bank to report a standalone net profit of Rs 463 crore, down by 32% on year. According to the financial metrics, this is largely impacted by microfinance business and interest rate movement.

Provisions and contingencies of the bank jumped 67% on year to 1,659 crore. This was impacted by slippages in the bank's micro-finance book, the press release said. The private sector bank was formed after the merger of IDFC Bank and Capital First in 2018.

Due to rise in provisions, the bank's gross non-performing assets ratio came in at 1.97% as compared to 1.87% a quarter ago. Net NPA also rose slightly at 0.55% as against 0.53% in the prior quarter. On the profitability side, the bank's net interest income rose 5.1% on year to Rs 4,933 crore. Consequently, net interest margin at 5.71%, down 24 bps on quarter.

Advances increased by 21% on year from Rs 2.53 lakh crore, led by mortgage loans, vehicle loans, business banking, MSME loans and wholesale loans, which contributed 82% of the total on year growth.

Microfinance portfolio reduced by 37% on year and its proportion to overall loan book reduced to 3.3% as of June 30 as against 6.3% a year ago. Wholesale book grew by 39% on year to Rs 49,279 crore. Deposits rose 26% on year to Rs 2.56 lakh crore.

⁠IDFC First Bank Share Price History In the last five trading sessions on the NSE, ⁠IDFC First Bank shares have declined 3.09%. The stock has fallen 2.04% in the past month. Over the last six months, shares of the bank have grown 24.50%, while rising 10.03% year-to-date.

However, the stock has declined 5.40% over the last one year. Shares of the company touched a 52-week high of Rs 78.45 apiece on the NSE on July 4 and a 52-week low of Rs 52.46 on April 7, 2025. IDFC First Bank shares ended 3.10% lower at Rs 70.63 apiece on the NSE on Friday. This compares to a 0.90% decline in the benchmark Nifty 50.