IDFC FIRST Bank Reports Steady Growth Despite Microfinance Challenges

IDFC FIRST Bank announced its unaudited financial results for the quarter and nine months ended December 31, 2024, highlighting a 28.8% year-over-year increase in customer deposits. Retail deposits make up 80% of total deposits, with a notable increase in credit cards and wealth management. The bank is closely monitoring the microfinance sector due to industry-wide delinquencies.

IDFC FIRST Bank has revealed a robust financial performance for the quarter ending December 31, 2024, with customer deposits soaring by 28.8% year-over-year, reaching Rs. 2,27,316 crore. Retail deposits accounted for a significant 80% of total customer deposits, demonstrating strong consumer confidence.

Despite facing challenges in the microfinance sector, the bank witnessed a substantial 53% year-over-year growth in its wealth management AUM, amounting to Rs. 42,778 crore, and surpassed the 3.2 million mark in credit card issuance. Net interest income witnessed a 14% rise, although net profit experienced a drop due to increased provisions in microfinance.

Addressing the ongoing difficulties within the microfinance business, the bank has been closely monitoring asset quality. CEO V Vaidyanathan remains optimistic, citing strong future growth potential and robust performance in loans and core banking segments.

(With inputs from agencies.)