Q4 Results: IDFC First Bank Eyes 20% Loan Book Growth In FY26; SBFC Finance Profit Surges

Ugro Capital Q4FY25 Highlights (YoY)

• Net profit up 24% at Rs 41 crore versus Rs 33 crore.

• Revenue up 25% at Rs 412 crore versus Rs 330 crore.

• GNPA at 2.3%

• NNPA at 1.6%

• Assets under management of Rs 12,003 crore, up 33% YoY and 8% QoQ.

SBFC Finance Q4 Growth (YoY)

• Provisions up 53% at Rs 21 crore versus Rs 14 crore.

• Assets under management up 28.22% at Rs 8,747 crore versus Rs 6,822 crore.

(QoQ)

• Return on Assets at 4.53% versus 4.54%

• Gross NPA ratio at 2.74% versus 2.7%

• Net NPA ratio at 1.51% versus 1.63%

IDFC First Bank plans to cut deposit rates significantly soon. For FY26, the bank aims to grow its loan book by 20% and deposits by 22-23%. The profit decline in FY25 is not seen as a trend.

The bank expects a 10 basis point decline in Net Interest Margin from Q4 levels in FY26. It may not renew high-cost fixed deposits at current rates if customers opt for lower rates.

The bank holds adequate provisions on its microfinance book and aims to maintain a Liquidity Coverage Ratio (LCR) of around 115% after the new RBI norms.

(Source: Informist/ Earnings concall)

IDFC First Bank aims to achieve a return on equity (ROE) of 15-16% and is focused on generating returns on capital.

The bank's Q4 profit declined due to normalized credit costs, largely impacted by its microfinance book, which saw gross slippages of Rs 572 crore. However, the credit card business reached breakeven within four years.

The bank has paid off Rs 7,000 crore in legacy loans in FY25 and plans to pay off an additional Rs 4,500 crore in FY26. The incremental credit-deposit ratio stood at 76.1% in FY25.

(Source: Informist/ Earnings concall)

SBFC Finance board approved raising up to Rs 3,000 crore via non-convertible debentures.