A. Deposits & Borrowings
· 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.
· 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.
· 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 (47.2% as of March 31, 2024)
· Retail Deposits constitute 79% of total customer deposits as of March 31, 2025.
B. Other Businesses
· Credit card issued by the Bank crosses 3.5 million mark during last quarter.
· Wealth Management AUM (including deposit balances) grew 27% YoY to touch Rs. 42,665 crore.
· FASTag: Bank remains the largest issuer bank with 17.8 million live FASTags.
C. Loans and Advances
· 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.
· 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.
· Microfinance portfolio reduced by 28.3% YoY and its proportion to overall loan book reduced from 6.6% in Mar-2024 to 4.0% in Mar-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.
* Loans and advances includes credit substitutes
D. Assets Quality
Considering the increase in delinquency of the micro finance business across the industry, the bank is tracking the microfinance business closely. The asset quality indicators, including gross NPA, net NPA, SMA, and Provisions of the book excluding MFI is stable
1. NPA Details:
· 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.
· 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 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 (which is the same as of December 31, 2024)
· PCR of the bank was healthy at 72.3% as of March 31, 2025.
2. 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.
3. SMA Positions:
· SMA-1+2 in Retail, Rural and MSME Finance portfolio excluding the Microfinance book increased marginally by 5 bps on QoQ basis from 0.82% as of December 31, 2024 to 0.87% as of March 31, 2025.
· SMA-1+2 in the Microfinance portfolio increased to 5.10% as of March 31, 2025 from 4.56% as of December 31, 2024, due to declining loan book.
· On absolute value basis, the SMA-1+2 pool in Microfinance portfolio reduced by 2.7% and SMA-0 pool reduced by 44.9% on QoQ basis.
4. Provisions:
· Provisions for FY25 stood at Rs. 5,515 crore (2.46% of the loan book), driven by the higher slippages in in the micro-Finance book.
· Excluding microfinance and one toll account, credit cost for the overall loan book of the Bank was 1.76% in FY25. Sequentially, it has improved by 9 bps from 1.82% in Q3-FY25 to 1.73% in Q4-FY25.
· The Bank has not utilized any micro-finance provision buffers of Rs. 315 crore during the quarter on a prudent basis.
· The incremental disbursals in Microfinance are insured by CGFMU. The insurance coverage of the overall Microfinance portfolio was 66% as of March 31, 2025.
E. Profitability
· Net Interest Income (NII) grew 9.8% YOY from Rs. 4,469 crore in Q4 FY24 to Rs. 4,907 crore in Q4 FY25. For FY25, the growth of NII was 17.3% on YoY basis.
· 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%.
· Fee and Other Income grew by 5.7% YoY from Rs. 1,610 crore in Q4 FY24 to Rs. 1,702 crore in Q4 FY25. For FY25, the growth of Fee and Other Income was 15.2% on YoY basis.
· Core Operating income grew 8.7% from Rs. 6,079 crore in Q4 FY24 to Rs. 6,609 crore in Q4 FY25. For FY25, the growth of Operating Income was 16.7% on YoY basis.
· Operating Expense grew by 12.2% YOY from Rs. 4,447 crore in Q4 FY24 to Rs. 4,991 crore in Q4 FY25. For FY25, the growth of Operating Expenses was at 16.5% on YoY basis.
· Core Operating Profit (excluding trading gain) de-grew from Rs. 1,632 crore in Q4 FY24 to Rs. 1,618 crore in Q4 FY25. In FY25 it grew 17.2% from Rs. 6,030 crore in FY24 to Rs. 7,069 crore.
· Excluding microfinance business, the core operating profit grew by 19.9% YoY in Q4 FY25 and by 30.6% YoY in FY25.
· Including trading gains, operating profit increased by 8.9% YoY in Q4 FY25 and grew by 18.9% in FY25.
· Net Profit for Q4-FY25 was Rs. 304 Crore as compared to Rs.724 crore in Q4 FY24. For the full year FY25, the Net profit decreased by 48.4% on YoY basis to Rs. 1,525 crore, largely impacted due by the issues in the microfinance industry.
F. Capital Position
· The Board has approved the fresh equity capital raise of ~ Rs. 7,500 crore through issuance of Compulsorily Convertible Preference Shares (CCPS) to Currant Sea Investments B.V., an affiliate company of Warburg Pincus LLC and Platinum Invictus B 2025 RSC Limited, a wholly owned subsidiary of private equity division of Abu Dhabi Investment Authority (ADIA), subject to Shareholders’ and Regulatory approvals.
· The Board has approved a dividend of Rs. 0.25 per share (subject to shareholders’ approval).
· Post conversion and proposed dividend, the CRAR would be 18.20% and Tier-I will be 15.89%, if calculated on March 31, 2025 numbers.
Comments from Managing Director & CEO
Mr. V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank , 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%. Importantly, the Bank's asset quality remains resilient, with GNPA and NNPA at 1.87% and 0.53% respectively.
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.
We continue to be committed to grow responsibly, serve high-quality products and services, lead with innovation and build customer centric propositions.”
About the Bank
IDFC FIRST Bank is a fast growing, new age Private Sector Bank created in India with a vision of building a world-class Bank in India, focused on Ethical, Digital, and Social Good Banking. The Bank has 35.5 million live customers, a customer deposit base of Rs. 2,42,543 crores and loans and advances of Rs. 2,41,926 crores, spread over 60,000 cities, towns, and villages across India. It has 1,002 branches but is built as a digital first Bank in scale, scope, and approach.
Its customer deposits are growing at 25% YoY and Loans & Advances growing by 20% YoY (March 31, 2025) based on friendly user digital interface, ethical approach, customer friendly products, strong brand, and high corporate governance. Its technology stack is built on advanced technology using cloud native experience layer, microservices led architecture, and powered by advanced data platform, analytics, and Artificial Intelligence.
Its mobile App is rated 4.9 on Google Playstore and 4.8 on Appstore with 27 million downloads and 1.47 m reviews. The App is rated #1 in India and #4 App in the world by The Forrester Digital Experience Review™: Global Mobile Banking Apps, Q4 2024 for prioritising Customers’ financial well-being, comprehensive suite of financial management features, and personalized financial insights, providing educational resources and expert guidance through its Financial Wellness Corner and IDFC First Academy.
The 7 Core Principles of IDFC FIRST Bank
1. Vision: Building a world-class Bank in India, focused on Ethical, Digital, and Social Good Banking.
2. Universal Bank: IDFC FIRST Bank is a Universal Bank, offering a comprehensive range of services, including Retail, MSME, Rural, Startups, Corporate Banking, Cash Management, Wealth Management, Deposits, Government Banking, Working Capital, Trade Finance, and Treasury solutions.
3. Ethical Banking: The Bank adheres to a "Near and Dear" test, ensuring its products are so customer-friendly that employees can confidently recommend them to loved ones. The Bank is committed to doing right by customers even when no one is watching and believes that income earned unethically is not worth earning.
So, the Bank has simplified descriptions, calculations, and legal jargon to avoid confusing customers and offers “ZERO FEE Banking” on all savings account services, including SMS alerts, IMPS, RTGS, NEFT, cash deposits, non-home branch access, ATM withdrawals, cheque books, Demand Drafts, Pay Orders, duplicate statements, and other commonly charged services. It is the first and only bank in India to do so.
4. Customer Friendly Banking: IDFC FIRST Bank credits interest monthly on savings accounts. For credit cards, it offers lifetime-free cards with no minimum spend conditions, non-expiring reward points, zero interest on ATM cash withdrawals, and dynamic low APR. Any applicable fees are transparent and clearly explained.
5. Digital Banking: The Bank's modern technology stack delivers high-quality services across mobile, branch, internet banking, call centres, and relationship managers.
6. Social Good Banking: The Bank is financially inclusive with high asset quality. It has financed over 38 million customers, including 16 million lifestyle improvement loans, 15 million loans to 4.3 million women entrepreneurs, 6.5 million vehicle loans, 1 million sanitation loans, 1 million livelihood loans, 300,000 SME loans, and 100,000 home loans.
7. ESG: The Bank holds high ESG scores, reflecting its commitment to financial inclusion and social responsibility.
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