IDFC FIRST Bank Reports Strong Growth in FY25 Amid Microfinance Challenges

IDFC FIRST Bank has shown resilient growth in its FY25 financial report, with customer deposits up by 25% YOY, and a strong CASA ratio of 46.9%. Despite challenges in the microfinance sector, the bank achieved an 18.9% increase in operating profits, and a new equity investment plan aims to enhance capital strength.

In a recent financial disclosure, IDFC FIRST Bank presented a robust financial year with significant growth in customer deposits and maintained sound asset quality. As of March 31, 2025, deposits rose 25% year-on-year, totaling Rs. 2,42,543 crore, while the CASA ratio settled at a strong 46.9%.

The bank's loan and advance portfolios grew by an impressive 20.4%. However, challenges were noted in the microfinance sector, where slippages increased, impacting net interest margins and profitability. Despite these hurdles, the bank reported an 18.9% rise in operating profits, showcasing resilience in its various portfolios.

Further bolstering its financial position, IDFC FIRST Bank announced a Rs. 7,500 crore equity investment by affiliates of Warburg Pincus and Abu Dhabi Investment Authority. This move, subject to requisite approvals, is set to strengthen the bank's capital adequacy and support future growth initiatives, positioning it firmly for upcoming challenges.

(With inputs from agencies.)