The company paid Rs. 568 crore due to what it calls “discretionary provisions” in the MFI business at Rs. 315 crore (stress in the MFI industry) and a Maharashtra-based toll account of Rs. 253 crores included.
Deposits and borrowings
IDFC First Bank’s customer deposits as on September 30, 2023 stood at Rs. 1,64,726 crore to grow by 32.4% YoY to Rs. 2,18,026 crores.
Retail Deposits on September 30, 2023 Rs. 1,27,595 crore to grow by 37.4% YoY to Rs. 1,75,300 crores.
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CASA deposits by September 30, 2023 Rs. 79,468 crore, up 37.5% year-on-year to Rs. 1,09,292 crore by September 30, 2024.
CASA ratio was 48.9% as on September 30, 2024. Retail deposits accounted for 80.4% of total customer deposits as of September 30, 2024. The cost of funds for the bank was 6.46% in Q2 of FY25-25, a marginal improvement from the quarter of 2025-25. last quarter. Excluding high-cost legacy borrowings, cost of funds was 6.37% in Q2-FY25.
Loans and Advances
Loans and advances including credit substitution as on September 30, 2023 stood at Rs. 1,83,236 crore to grow by 21.5% by September 30, 2024 to Rs. 2,22,613 crores. The bank’s retail book grew 25% YoY while corporate (non-infrastructure) loans grew 20% YoY during the quarter.
Bank’s legacy infrastructure book declines 21% YoY to Rs 30, 2024 2,654 crore, which is 1.2% of the bank’s total funded assets.
The microfinance portfolio as a percentage of the overall loan book declined from 6.3% in June-2024 to 5.6% in September-2024.
Asset quality
Gross NPAs stood at 1.92% as on September 30, 2023, as against 2.11% as on September 30, 2023. Meanwhile, net NPA was 0.48% as on September 30, 2024 as against 0.68% as on September 30, 2023.
The bank’s PCR increased from 75.27% as on September 30, 2024 to 68.18% as on September 30, 2023 and 69.38% as on June 30, 2024.
Fees and other income in Q2FY24 was Rs. 1,376 crore to 2. In Q2 of FY25 Rs. 1,622 crore to grow 18% YoY. Operating income rose 21% to Rs 6,515 crore in Q2 FY25 from Rs 5,380 crore in Q2FY24. In Q2 of FY24 Rs. 3,870 crore, up 18% YoY in Q2 of FY25 to Rs. 4,553 crores.
capital position
• Bank has successfully raised Rs. 3,200 crore fresh equity capital from marquee domestic institutional investors in July 2024.
• The Bank also successfully completed its merger with IDFC Limited in October 2024 through which a net-worth of Rs. 618 crore capital has been added while the number of outstanding shares has decreased by 16.64 crore shares.
• Including profits for Q2-FY25 and after effect of merger as mentioned above, total CRAR as on September 30, 2024 will be 16.60% with CET-1 ratio of 14.08%.
Commenting on the earnings, V Vaidyanathan, MD and CEO said the company’s key drivers remain strong while brand, technology and high service levels enable strong growth in deposits. “The ability to grow deposits is a key strategic strength of the bank. Deposits have grown at a healthy 32% year-on-year. Our overall loan growth has remained stable at 21.5% year-on-year. We have seen the impact on the microfinance business as seen in the rest of the industry. Since then January 2024, MFI disbursements are insured with CGFMU and now 50% of the book is insured and expected to reach 75% by the end of March 2025,” said Vaidyanathan.
“We have buffered an additional provision of Rs 315 crore for the microfinance segment as a prudent measure. The bank has made an additional provision of Rs 253 crore for a toll road at the Mumbai entry point which was affected by the state government’s waiver of toll on LMVs. Toll Collection And the bank will recognize this as profit based on the government’s reimbursement to the client,” he added.
“Our core operating performance is strong, we are confident of reviving our profitability going forward,” opined the MD and CEO.
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