The Net Interest Income (NII) grew 9.8% YoY from Rs 4,469 crore in Q4 FY24 to Rs 4,907 crore in Q4 FY25.
The lender expended interest of Rs 4,506 crore in the quarter under review which jumped 20% on a YoY basis versus Rs 3,750 crore in Q4FY24.
Q4FY25 NIMs
The Net Interest Margin (NIM) on AUM of the Bank reduced by 9 bps QoQ, from 6.04% in Q3-FY25 to 5.95% in Q4-FY25, largely due to decline in the micro-finance business. For the full year FY25, NIM was 6.09%.
Deposits
IDFC First Bank’s customer deposits increased 25.2% YoY from Rs 1,93,753 crore as of March 31, 2024 to Rs 2,42,543 crore as of March 31, 2025. In this, the retail deposits grew by 26.4% YoY from Rs. 1,51,343 crore as of March 31, 2024 to Rs 1,91,268 crore as of March 31, 2025. Meanwhile, CASA deposits grew by 24.8% YoY from Rs 94,768 crore as of March 31, 2024 to Rs 1,18,237 crore as of March 31, 2025.
CASA ratio stood at 46.9% as of March 31, 2025 versus 47.2% as of March 31, 2024. Retail deposits constitute 79% of total customer deposits as of March 31, 2025.
Loans & Advances
The loans and advances increased by 20.4% YoY from Rs 2,00,965 crore as of March 31, 2024 to Rs 2,41,926 crore as of March 31, 2025. The retail, rural and MSME book grew by 18.6% YoY from Rs 1,66,604 crore as of March 31, 2024 to Rs 1,97,568 crore as of March 31, 2025.The microfinance portfolio reduced by 28.3% YoY and its proportion to overall loan book reduced from 6.6% in March 2024 to 4% in March 2025.
The Bank’s legacy infrastructure book reduced by 17% YoY to Rs 2,348 crore as of March 31, 2025, constituting less than 1% of the total funded assets of the Bank.
Assets Quality
The bank said that it was tracking the microfinance business closely considering the increase in delinquency of the micro finance business across the industry. The asset quality indicators, including gross NPA, net NPA, SMA, and provisions of the book excluding MFI is stable, it said.
The gross NPA of the bank improved by 7 bps QoQ from 1.94% as of December 31, 2024 to 1.87% as of March 31, 2025 while the net NPA of the Bank marginally increased by 1 bps QoQ from 0.52% as of December 31, 2024 to 0.53% as of March 31, 2025.
Excluding the microfinance portfolio, Gross NPA of retail, rural and MSME Book improved from 1.46% as of December 31, 2024 to 1.40% as of March 31, 2025 and net NPA of retail, rural and MSME Book was at 0.56% as of March 31, 2025, the company filing said.
The PCR of the bank was healthy at 72.3% as of March 31, 2025.
Slippage
The gross slippage for Q4 FY25 was Rs 2,175 crore as compared to Rs 2,192 crores in Q3 FY25, reduced by Rs 17 crores. The gross slippages for microfinance business for Q4-FY25 was at Rs 572 crore, compared to Rs 437 crore in Q3-FY25.
Without the microfinance business, the gross slippages for the rest of the loan book improved by Rs 152 crore on QoQ basis, from Rs 1,755 crore in Q3-FY25 to Rs. 1,603 crore in Q4-FY25.
Management commentary
“Our customer deposits grew well at 25% YoY and the CASA ratio continues to remain strong at 46.9%, reflecting the strength of our deposit franchise.
Our funded asset book grew by 20.4%. Importantly, the Bank’s asset quality remains resilient, with GNPA and NNPA at 1.87% and 0.53% respectively,” Managing Director & CEO V Vaidyanathan said.
“Further, an affiliate entity of Warburg Pincus LLC and a wholly owned subsidiary of private equity division of Abu Dhabi Investment Authority (ADIA), have committed to invest ~Rs. 7,500 Cr in the Bank (subject to necessary regulatory and shareholders’ approvals), which will further strengthen our Capital Adequacy Ratio and support our next phase of growth,” Vaidyanathan said.
