IDFC FIRST Bank's Strong Growth in Deposits and Loans Amid Micro-Finance Challenges

IDFC FIRST Bank reported significant growth in customer deposits and loans for the quarter and nine months ending December 31, 2024, despite challenges in micro-finance. Deposits surged by 28.8% and loans by 22%. The bank's asset quality remained stable, with a focus on addressing micro-finance issues.

IDFC FIRST Bank announced its unaudited financial results, showcasing impressive growth in customer deposits and loans. As of December 31, 2024, customer deposits increased by 28.8% year-on-year, reaching Rs. 2,27,316 crore, while loans and advances grew by 22% to Rs. 2,31,074 crore.

The bank's retail deposits grew by 29.6% to Rs. 1,80,752 crore. Importantly, CASA deposits saw a 32.3% increase, indicating a strong preference for low-cost deposits. The CASA ratio stood at 47.7% by the end of the reporting period.

While the bank experienced noteworthy growth, it also faced challenges in its micro-finance business, contributing significantly to gross slippages. Despite this, IDFC FIRST Bank maintained stable asset quality, with a Gross NPA of 1.94% and a Net NPA of 0.52%, as they focused on stabilizing this sector.