IDFC First Bank Faces Profit Slump Amid Rising Provisions

IDFC First Bank reported a significant 58% drop in net profit to Rs 304 crore for Q4 2025, primarily due to increased provisions. Despite income growth, the lender faced a challenging fiscal year with net profit down 48% amid microfinance sector issues. A dividend of Rs 0.25 per share is proposed.

IDFC First Bank revealed a considerable downturn in its fourth-quarter financial performance, with net profit plummeting by 58 per cent to Rs 304 crore. The decline has been attributed to heightened provisions, the bank specified in its regulatory filings this Saturday.

In contrast, the private sector lender's total income witnessed an upswing, reaching Rs 11,308 crore, while interest income grew to Rs 9,413 crore. Despite the income growth, asset quality showed only slight improvement, with a marginal reduction in both gross and net non-performing asset ratios.

For the fiscal year FY25, IDFC First Bank saw its net profit fall by 48 per cent to Rs 1,525 crore, impacted largely by microfinance industry challenges. The bank's board has proposed a dividend of Rs 0.25 per share, pending shareholder approval at the upcoming annual general meeting.

(With inputs from agencies.)