IDFC First Bank Profit Takes a Hit Amid Higher Loan Provisions

IDFC First Bank reported a 53% decline in net profit for Q3 2024, attributed to increased provisions following higher loan slippages. Despite income growth, net profit fell to Rs 339 crore, with asset quality improving slightly. The bank also completed its merger with IDFC Ltd, impacting capital and share figures.

IDFC First Bank announced a significant dip in net profit, revealing a 53% decrease for the third quarter of 2024, a consequence of heightened provisions caused by increased loan slippages. The net profit has fallen to Rs 339 crore, compared to the previous year's Rs 716 crore.

Despite this profit decline, the bank's total income climbed to Rs 11,123 crore, up from Rs 9,396 crore a year earlier, as disclosed in its regulatory filing. Interest income also saw an upward trend, reaching Rs 9,343 crore from the previous Rs 7,879 crore.

Asset quality showed improvement with a reduction in gross non-performing assets ratio to 1.94% and net NPAs down to 0.52%. The bank completed its merger with IDFC Ltd in October 2024, adding Rs 618 crore to its net worth while reducing outstanding shares by 16.64 crore.

(With inputs from agencies.)