 "V. Vaidaynathan, MD and CEO, IDFC First Bank, V Vaidaynathan")
Net profit will improve from this quarter of 2025-26 because provisions in the microfinance segment have peaked, V Vaidyanathan, managing director and chief executive officer, IDFC First Bank, tells Anupreksha Jain in a video interview. Edited excerpts.
Net profit has fallen year-on-year in another quarter. When can we see a reversal in the trend?
Provisions against microfinance peaked in Q4FY25. We had said this would happen. Provisions should start coming down, and hence profit will start reflecting it. We expect that in Q1FY26 and onwards we should start seeing an improvement in profit after tax (PAT). This segment is sensitive,
