IDFC First Bank Q4 profit slides 10% to Rs 724 crore on higher provisions

IDFC First Bank Q4 earnings: IDFC First Bank announced a 10 per cent decline in net profit to Rs 724 crore for the fourth quarter ending March 2024, primarily attributed to rise in provisions. The bank had recorded a net profit of Rs 803 crore in the corresponding period last year.

According to a regulatory filing, the bank's total income surged to Rs 9,861 crore from Rs 7,822 crore a year ago. Interest income witnessed growth, hitting Rs 8,219 crore during the period under review compared to Rs 6,424 crore in the same quarter of the previous year.

IDFC First Bank reported a 24 per cent increase in net interest income (NII), rising from Rs 3,597 crore in Q4 FY23 to Rs 4,469 crore in Q4 FY24.

On the asset quality front, the bank's gross Non-Performing Assets (NPAs) decreased to 1.88 per cent of gross advances as of March 31, 2024, down from 2.51 per cent at the end of March 2023. Similarly, net NPAs reduced to 0.60 per cent of advances from 0.86 per cent at the close of 2024.

However, provisions and contingencies surged by 50 per cent to Rs 722 crore in Q4 FY24 compared to Rs 482 crore in the corresponding period last year. This increase in provisions impacted the bank's overall profitability for the quarter.

(With PTI inputs)