IDFC First slumps 10% after posting a 72% slip in its net profit in Q2FY25

IDFC First Bank's consolidated profit slipped 71.6 per cent to Rs 211.94 crore from Rs 746.85 crore a year ago

IDFC First Bank shares dropped 9.5 per cent in trade on Monday and registered an intraday low of Rs 59.24 per share on BSE. The stock declined after the private sector bank reported a 73 per cent fall in net profit for the second quarter ended September 30, 2024.

 

At around 11:18 AM, IDFC First Bank shares were down 1.8 per cent at Rs 64.35 per share. In comparison, the BSE Sensex was up by 1.02 per cent at 80,213.06 at around the same time. The market capitalisation of the company at around the same time stood at Rs 47,080.19 crore. 

 

On Saturday, IDFC First Bank reported a 73 per cent drop in its standalone profit to Rs 200.69 crore in the second quarter ended in September 2024. The private sector lender had earned a net profit of Rs 751.32 crore in the same quarter a year ago.

 

Its consolidated profit also slipped 71.6 per cent to Rs 211.94 crore from Rs 746.85 crore a year ago. 

 

However, its consolidated total income increased to Rs 10,684.32 crore during the quarter under review as compared to Rs 8,765.81 crore in the same period last year which implies an increase of 21.88 per cent year-on-year (Y-o-Y).

 

As per its filing, the bank's current Account Savings Account (CASA) deposits grew by 37.5 per cent Y-o-Y to Rs 1,09,292 crore as of September 30, 2024, from Rs 79,468 crore as of September 30, 2023.

 

Its customer deposits increased by 32.4 per cent Y-o-Y to Rs 2,18,026 crore in the quarter under review as compared to Rs 1,64,726 crore as of September 30, 2023.

 

Provisions for Q2 FY25 stood at Rs 1,732 crore, primarily on account of prudent provisioning buffer of Rs 568 crore, the bank said in a statement.

 

Net Interest Income (NII) improved to Rs 4,788 crore, from Rs 3,950 crore in the second quarter of the previous year. As regards asset quality, the bank witnessed improvement with gross Non-Performing Assets (NPAs) declining to 1.92 per cent of the gross loans by the end of September 2024 from 2.11 per cent a year ago.

 

Similarly, net NPAs or bad loans moderated to 0.48 per cent from 0.68 per cent at the end of the second quarter of the previous fiscal. 

 

In the past one year, IDFC First Bank shares have lost 23.8 per cent against Sensex's rise of 24.4 per cent.