IDFC First Bank reported an 18 percent rise in quarterly net profit to Rs 716 crore, crossing Rs 700 crore profits for the first time, though marginally trailing estimates.
The private lender posted net income of Rs 715.68 crore for October-December 2023, improving from Rs 605 crore a year ago. However, the results fell short of analyst expectations of Rs 826 crore profit.
Even as asset quality improved with both gross and net NPAs declining year-on-year, IDFC First saw slower than expected growth after a strong first half. Core CASA deposits increased 29 percent annually to Rs 85,492 crore now making up 47 percent of total funds.
IDFC First stock closed 2 percent higher Friday ahead of results but could face pressure after the muted performance. Despite decent bottomline growth, the bank’s slipping provisions and slower momentum in a high interest environment point to gathering headwinds.
With Q3 profits missing forecasts, IDFC First failed to sustain its bounce back growth trajectory amidst growing economic uncertainty. The lender faces pressure to bolster margins and accelerate loan expansion to power future outperformance.