IDFC First Bank shares fell 4% on January 27, 2025, following a reported 52% year-on-year (YoY) drop in net profit for Q3 FY25. As of 9:16 AM, shares traded at Rs 59.74, down from an opening of ₹59.01.
The bank's net profit was Rs 339.43 crore, a significant decrease from Rs 715.68 crore in Q3 FY24. This decline was attributed to a 104.5% YoY increase in provisions, rising to Rs 1,337 crore from Rs 654 crore.
Asset quality showed slight deterioration, with gross non-performing assets (GNPA) increasing to 1.94% from 1.92% in Q2 FY25, and net non-performing assets (NNPA) rising to 0.52% from 0.48%.
However, deposits grew by 29.6% YoY to Rs 2,36,877 crore, and advances rose by 22% YoY to Rs 2,23,109 crore, fueled by retail and corporate lending.
Brokerage firm Jefferies maintained a buy rating on IDFC First Bank with a target price of Rs 73, despite near-term challenges. They noted a sequential net profit increase of 69.13% from Rs 200.7 crore in Q2 FY25, although the microfinance segment remains under pressure.
Jefferies has reduced FY26-27 earnings estimates by 8-10%, but remains optimistic about the bank's long-term growth potential. Investors are advised to monitor asset quality and microfinance performance in upcoming quarters.