IDFC FIRST Bank was founded by the merger of Erstwhile IDFC Bank and Erstwhile Capital First on December 18, 2018, creating a fast-growing, new-age private sector bank. The Company operates through four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Business. Since 2019, it has expanded its product range, including loans, deposits, and wealth management, and introduced new products like home loans, credit cards, FASTag, etc.
The bank has positioned itself as a comprehensive financial services provider catering to both retail and corporate customers across India. The Treasury segment primarily consists of Bank's investment portfolio, money market borrowing and lending, investment operations and the entire foreign exchange and derivative portfolio of the Bank. The Corporate/Wholesale Banking segment provides loans, non-fund facilities and transaction services to corporate relationship not included under Retail Banking and syndication.
The market cap of IDFC First Bank Ltd (IDFCFIRSTB) is ₹56,657.67 Cr as of 3rd July 2025. The bank trades on both NSE and BSE exchanges under the symbol IDFCFIRSTB. The 52-week high of IDFC First Bank Ltd (IDFCFIRSTB) is ₹82.10 and the 52-week low is ₹52.46. The current dividend yield of IDFC First Bank Ltd (IDFCFIRSTB) is 0.31.
The bank's share capital structure has been strengthened through various equity allotments. Post allotment, the issued and paid-up equity share capital of the Bank stands increased from Rs 73,30,59,33,880/- comprising of 7,33,05,93,388 equity shares of Rs 10/- each fully paid-up to Rs 73,33,10,98,430/- comprising of 7,33,31,09,843 equity shares of Rs 10/- each fully paid-up.
The bank's financial performance has faced challenges in recent quarters, particularly in Q4 FY25. For the fourth quarter of the financial year 2024-25 (Q4 FY25), IDFC FIRST Bank reported a net profit of ₹304 crore, a substantial decrease of 48.4% compared to ₹724 crore in Q4 FY24, on a YoY basis, settling at ₹1,525 crore, primarily impacted by issues in the microfinance industry. Alongside the earnings, the bank's Board of Directors recommended a dividend of ₹0.25 per equity share of face value ₹10 each for the financial year 2024-25.
**Revenue Performance:**
- The TTM revenue/sales of IDFC First Bank is ₹36,501 (Cr.)
- Core Operating income also increased by 8.7 percent, reaching ₹6,609 crore in Q4 FY25 from ₹6,079 crore in Q4 FY24.
**Profitability Indicators:**
- Company has a low return on equity of 7.88% over last 3 years.
- The Net Interest Margin (NIM) on Assets Under Management (AUM) saw a sequential decline, reducing by 9 basis points (bps) quarter-on-quarter (QoQ) from 6.04 percent in Q3 FY25 to 5.95 percent in Q4 FY25. For the full year FY25, the NIM was 6.09 per cent.
The bank has maintained relatively stable asset quality metrics despite facing challenges in the microfinance segment. The Gross Non-Performing Assets (GNPA) ratio improved by 7 basis points (bps) quarter-on-quarter (QoQ) to 1.87% in Q4 FY25, while the Net Non-Performing Assets (NNPA) ratio inched up by 1 bps to 0.53%. The Provision Coverage Ratio (PCR) stood strong at 72.3% as of 31 March 2025.
The bank's credit provisions have been impacted by microfinance sector challenges. Provisions for FY25 amounted to ₹5,515 crore, representing 2.46% of the loan book, primarily driven by higher slippages in microfinance. However, excluding the microfinance segment, GNPA and NNPA ratios across Retail, Rural, and MSME portfolios remained stable or showed improvement.
The Retail Banking segment constitutes lending to individuals/business banking customers through the branch network and other delivery channels subject to the orientation, nature of product, granularity of the exposure and the quantum thereof. The bank has demonstrated strong growth in customer deposits, which reflects its expanding retail franchise.
The bank is strategically enhancing its capital position through the issuance of Compulsorily Convertible Preference Shares, aiming for a stable growth target of 20% while navigating challenges in the microfinance sector, where rising slippages have impacted profitability. Despite these hurdles, the bank has demonstrated strong operational performance, with significant growth in funded assets and retail deposits, supported by effective cost management initiatives that have reduced operational expenses.
The bank has secured regulatory approvals for strategic investments. IDFC First Bank announced that Currant Sea Investments B.V. has received the approval of the CCI with respect to its proposed investment of up to 9.99% of the paid-up share capital of the Bank. Additionally, The Competition Commission of India has approved Warburg Pincus's acquisition of up to 9.99% stake in IDFC First Bank through Currant Sea Investments, enhancing the bank's capital and growth potential.
Management remains optimistic about improving credit costs and return on equity, projecting a recovery in profitability as market conditions stabilize. Additionally, a focus on enhancing customer experience and adapting lending strategies positions the bank for sustainable long-term growth amidst evolving market dynamics.
The bank continues to innovate in digital banking services, including IDFC FIRST Bank has introduced a feature allowing NRIs in 12 countries to make UPI payments using international mobile numbers, enhancing transaction convenience without fees.
