IDFC First Bank shares in focus today, here's why 

Shares of IDFC First Bank are in focus today after the lender announced its Q4 earnings. The bank reported a 58 percent fall in net profit to Rs 304 crore compared to Rs 724 crore reported in Q4 FY24. High provisions linked to stress in the microfinance portfolio led to a fall in profit. For the full financial year FY25, net profit stood at Rs 1,525 crore, falling 48.4 percent year-on-year.

Customer deposits climbed 25.2 percent year-on-year to Rs 2,42,543 crore, with retail deposits increasing by 26.4 percent to Rs 1,91,268 crore. 

CASA deposits clocked a robust year-on-year growth of 24.8% to reach Rs 1,18,237 crore. The CASA ratio held steady at 46.9%, slightly down from 47.2% last year.

The bank's total Loans and Advances increased by 20.4% year-on-year, totaling Rs 2,41,926 crore. Retail, Rural, and MSME loans rose by 18.6% to Rs 1,97,568 crore, although the microfinance sector saw a decline of 28.3%.

In Q4 FY25, net interest income (NII) grew by 9.8% year-on-year to Rs 4,907 crore. For the fiscal ear, NII saw an increase of 17.3%. The Net Interest Margin (NIM) on AUM was recorded at 5.95% for Q4 FY25, a slight decrease of 9 basis points sequentially, primarily attributed to the reduction in the microfinance segment. For the full year, NIM stood at 6.09%.

Fee and other income grew by 5.7% year-on-year to Rs 1,702 crore in Q4 FY25, while for the entire fiscal year, this figure rose by 15.2%. Core Operating Income climbed 8.7% to Rs 6,609 crore in Q4, contrasted with operating expenses, which climbed by 12.2% to Rs 4,991 crore. The core operating profit for the quarter came at Rs 1,618 crore, with a full-year increase of 17.2%, bringing it to Rs 7,069 crore.

The bank’s board has approved raising approximately Rs 7,500 crore by issuing Compulsorily Convertible Preference Shares (CCPS) to affiliates of Warburg Pincus and Abu Dhabi Investment Authority (ADIA), pending shareholder and regulatory approvals. Additionally, the bank proposed a dividend of Rs 0.25 per share.