IDFC First Bank Reports 53% Drop in Profit for October-December Quarter Amidst Increased Provisions.

IDFC First Bank Reports Decline in Profit

Private sector lender IDFC First Bank has announced its financial results for the October-December quarter, revealing a significant drop in profit. The bank’s profit plummeted by 53 percent, amounting to Rs 339 crore, compared to Rs 716 crore during the same period last year. The primary reason for this decline is attributed to an increase in loan provisions, which have hit the bank’s bottom line hard. This news has raised eyebrows among investors and market analysts, as the bank navigates through these challenging financial waters.

Income Figures Show Positive Growth

Despite the drop in profits, IDFC First Bank reported an increase in total income, which rose to Rs 11,123 crore from Rs 9,396 crore in the same quarter last year. Interest income also saw a boost, climbing to Rs 9,343 crore, up from Rs 7,879 crore a year ago. This growth in income indicates that the bank is managing to generate more revenue, even as it contends with higher provisions for bad loans. On the asset quality front, the bank’s gross non-performing asset (NPA) ratio improved slightly, now standing at 1.94 percent, down from 2.04 percent a year ago.

Stock Performance Shows Volatility

When it comes to the stock market performance of IDFC First Bank, the shares closed at Rs 62.27, marking a 1.32% decline from the previous day. During trading, the stock dipped to a low of Rs 61.65. Earlier this year, in April 2024, the stock reached its highest level at Rs 86.08, but it has been on a rollercoaster ride since then. On January 13, 2025, the shares fell to a low of Rs 59, highlighting the volatility that has characterized the bank’s stock.

Understanding Shareholding Patterns

Looking at the shareholding pattern of IDFC First Bank, it is interesting to note that public shareholders hold 100 percent of the stake, while the promoters hold none. Among the prominent institutional investors, the Tata Large and Midcap Fund has a stake of 1.56 percent, holding 11,41,62,843 shares. Additionally, the Life Insurance Corporation (LIC) holds 2.76 percent of the bank’s shares. This distribution indicates a strong presence of public shareholders and institutional investors, which may have implications for the bank’s governance and strategic decisions moving forward.