Earnings Call Transcript for Q4FY25
Awaiting price reaction for this filing.
IDFC FIRST Bank reported FY25 PAT of Rs. 1,525 crores, down from Rs. 2,957 crores in FY24, with Q4 PAT at Rs. 304 crores, primarily hit by microfinance stress. Balance sheet grew 16% YoY to Rs. 3.4 lakh crores, deposits grew 25% to Rs. 2.42 lakh crores (CASA at ~47%), and funded assets grew 20.4% YoY. Asset quality remained stable with gross NPA at 1.87% and net NPA at 0.53%. Credit cost for FY25 was 2.46% (1.76% excluding MFI and one-off toll road hit). The bank announced Rs. 7,500 crore CCPS raise from two marquee investors, taking pro-forma CRAR to 18.2% and CET-1 to ~16%. Management guided for FY26 loan growth of ~20%, deposits of 22-23%, opex growth of only 12-13%, credit cost of 1.85-1.90%, and ~10 bps NIM compression. Multi-year targets include RoE of 15% and cost-income ratio of 65% by FY27.
Near-term earnings remain pressured by MFI losses, but the large CCPS capital raise, controlled opex trajectory, and planned FD/SA rate cuts signal a path to operating leverage and RoE expansion from FY27. Existing shareholders face ~15% dilution but gain a stronger balance sheet for sustained 20%+ growth.