Bank stock under ₹70 jumps over 6% after reporting strong loan and deposit growth in Q4 FY25

During Thursday’s trading session, the shares of a private sector bank engaged in the business of banking services jumped nearly 6.4 percent on BSE, after the company announced Q4 FY25 business updates with strong loan and deposit growth.

Price Movement

With a market capitalisation of Rs. 44,193.8 crores, the shares of IDFC First Bank Limited closed in the green at Rs. 60.36, up by nearly 5.5 percent, as against its previous closing price of Rs. 57.24. The stock has delivered negative returns of over 23 percent in one year, while about 5 percent of positive returns in one month.

What’s the News

According to the latest regulatory filings, IDFC First Bank Limited announced Q4 business updates with total deposits surging 22.7 percent YoY to Rs. 4.84 lakh crore in the March quarter, up from Rs. 3.94 lakh crore a year ago.

Loans & Advances witnessed a 20.3 percent YoY increase, rising from Rs. 2 lakh crore as of March 2024 to Rs. 2.41 lakh crore as of March 2025. The QoQ growth was 4.7 percent. Loans & Advances includes credit investments in corporate bonds, PTCs, and security receipts (SRs) totaling Rs. 5,398 crore.

Customer Deposits grew 25.2 percent YoY, reaching Rs. 2,42,546 crore by March 31, 2025, compared to Rs. 1,93,753 crore a year earlier. QoQ growth stood at 6.7 percent. Meanwhile, current account and savings account (CASA) deposits increased 24.8 percent YoY, rising from Rs. 94,768 crore in March 2024 to Rs. 1.18 lakh crore in March 2025, with a QoQ growth of 4.6 percent. The CASA ratio remained stable at 46.9 percent, slightly lower than 47.2 percent a year ago and 47.7 percent in the previous quarter.

The bank’s credit-to-deposit (CD) ratio declined to 93.8 percent in Q4 FY25, compared to 98.4 percent in the same quarter last year and 95.7 percent in the previous quarter. IDFC First Bank highlighted its ongoing efforts to reduce the CD ratio since the December 2018 merger between IDFC Bank and Capital First, focusing on retiring legacy (pre-merger) bonds & borrowings while strengthening retail customer deposits. Additionally, the Incremental Credit-to-Deposit Ratio for the past 12 months, from March 2024 to March 2025, stands at 75.7 percent.

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Financial Performance

IDFC First Bank reported a significant growth in net interest income (NII), experiencing a year-on-year increase of nearly 14.4 percent, rising from Rs. 4,287 crores in Q3 FY24 to Rs. 4,902.5 crores in Q3 FY25. However, during the same period, the bank’s net profit decreased from Rs. 732 crores to Rs. 340.2 crores, representing a decline of around 53.5 percent YoY.

Net Interest Margin (NIM) of the Bank stood at 6.04 percent for Q3 FY25 as compared to 6.18 percent in Q2 FY25. NIM declined during the quarter largely due to a decline in the micro-finance business and an increase in the composition of the Wholesale Banking business.

About the Company

IDFC FIRST Bank Limited is engaged in the business of providing a complete suite of banking and financial services across all segments, including retail, MSME, rural, startups, corporate banking, cash management, wealth management, retail deposits, government banking, working capital, trade finance, and treasury solutions.

IDFC FIRST Bank was created by the merger of infrastructure financing giant IDFC Bank and retail financing specialist Capital First in December 2018. Earlier, IDFC Bank launched commercial Banking operations in 2016.

Written by Shivani Singh

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