(MENAFN- IANS) Mumbai, Jan 25 (IANS) Private lender IDFC First bank on Saturday reported its quarterly results for the period ending December 2024, with a 15 per cent year-on-year decline in net profit at Rs 339 crore, compared to Rs 716 crore in the same quarter last year.
Despite the profit dip, the bank's net interest income (NII) grew by 14 per cent YoY to Rs 4,902 crore, up from Rs 4,287 crore in Q3 FY24, according to its exchange filing.
The asset quality of the bank remained stable, with the gross non-performing asset (GNPA) ratio at 1.94 per cent and the net NPA (NNPA) ratio at 0.52 per cent.
Excluding the microfinance loan portfolio, the GNPA and NNPA ratios stood at 1.81 per cent and 0.49 per cent, respectively.
The bank's net interest margin (NIM) for Q3 FY25 stood at 6.04 per cent, slightly lower than 6.18 per cent in the previous quarter.
The decline was attributed to reduced contributions from the microfinance business and a higher share of wholesale banking operations.
Operating income rose by 15 per cent to Rs 6,682 crore, compared to Rs 5,803 crore in the year-ago period, while operating expenses grew by 16 per cent YoY to Rs 4,923 crore during the same period.
The bank's core operating profit, excluding trading gains, increased by 15 per cent YoY to Rs 1,736 crore, according to the filing.
The bank acknowledged challenges in its microfinance segment, describing them as temporary and likely to stabilise in the coming quarters.
“We are specifically tracking Micro-finance loan book closely considering the industry situation,” said V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank.
He pointed out the private lender's strong performance across other segments, including deposits, credit cards, wealth management, corporate banking, and gold loans.
He added,“the bank continues to grow well on loans and deposits. The customer deposits are growing strongly at 29 per cent YoY to reach Rs 2,27,316 crores, with the CASA ratio sustaining at 48 per cent”.
Vaidyanathan further stated that the loans and advances grew steadily by 22 per cent YoY to reach Rs 2,31,074 crores.
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