IDFC First Bank posts Rs 1,525 Crore profit in FY25, approves Rs 7,500 crore capital raise

IDFC First Bank on Saturday reported a net profit of Rs 1,525 crore for the financial year ended March 31, 2025, marking a 48.4% decline from Rs 2,954 crore in FY24, mainly due to stress in the microfinance portfolio.
For the fourth quarter (Q4 FY25), the bank reported a net profit of Rs 304 crore, down from Rs 724 crore in Q4 FY24. Net Interest Income (NII) for Q4 stood at Rs 4,907 crore, a 9.8% increase year-on-year.Fee and other income for the quarter rose 5.7% YoY to Rs 1,702 crore. Core operating income in Q4 grew 8.7% YoY to Rs 6,609 crore, while operating expenses rose 12.2% to Rs 4,991 crore. Core operating profit (excluding trading gains) for Q4 stood at Rs 1,618 crore, slightly down from Rs 1,632 crore in the year-ago period.
Customer deposits rose 25.2% YoY to Rs 2,42,543 crore, with retail deposits growing 26.4% to Rs 1,91,268 crore. The CASA ratio was 46.9%. Loans and advances increased by 20.4% YoY to Rs 2,41,926 crore.
Gross NPA improved to 1.87% as of March 31, 2025, from 1.94% in the previous quarter, while Net NPA inched up to 0.53%. The Provision Coverage Ratio (PCR) stood at 72.3%. Provisions for the year amounted to Rs 5,515 crore, largely due to higher slippages in the microfinance segment.
The board has approved a capital raise of Rs 7,500 crore through compulsorily convertible preference shares to Currant Sea Investments B.V. (an affiliate of Warburg Pincus LLC) and Platinum Invictus B 2025 RSC Ltd. (a wholly owned subsidiary of the private equity division of Abu Dhabi Investment Authority), subject to shareholder and regulatory approvals.
It also declared a dividend of Rs 0.25 per share.
Managing Director and CEO V. Vaidyanathan said, “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%.”
He added, “An affiliate entity of Warburg Pincus LLC and a wholly owned subsidiary of the private equity division of ADIA have committed to invest ~Rs 7,500 crore in the Bank, which will further strengthen our Capital Adequacy Ratio and support our next phase of growth.”