IDFC First Bank Q1 Profit Drops 32%

New Delhi, Jul 26 (PTI) Private sector IDFC First Bank on Saturday reported a 32 per cent slump in net profit to Rs 463 crore during the first quarter of the current financial year, impacted by slippages in the micro-finance book.

The Mumbai-based lender had earned a net profit of Rs 681 crore in the same quarter of the previous fiscal year.

The total income rose to Rs 11,869 crore during the June quarter of 2025-26 from Rs 10,408 crore in the same quarter of FY25, IDFC First Bank said in a regulatory filing.

Interest earned by the bank improved to Rs 9,642 crore compared to Rs 8,789 crore in the June quarter FY25.

Net interest income also increased to Rs 4,933 crore during the quarter against Rs 4,695 crore in the year-ago period.

The bank's asset quality showed deterioration as gross non-performing assets (NPAs) declined to 1.97 per cent of gross advances at the end of the June quarter from 1.90 per cent a year ago.

However, net NPAs, or bad loans, improved to 0.55 per cent against 0.59 per cent in the year-ago period.

Provisions for the quarter rose significantly to Rs 1,659 crore compared to Rs 994 crore in the same period of the previous fiscal due to slippages in the micro-finance book.

Return on Assets (ROA) declined to 0.53 per cent for June 2025 from 0.91 per cent at the end of June 2024, registering a fall of 38 bps, it said.

At the same time, the capital adequacy ratio slipped to 14.86 per cent from 15.59 per cent in the same quarter of FY25.