Q1 2025 IDFC First Bank Ltd Earnings Call Transcript
Key Points
- IDFC First Bank Ltd (BOM:539437) reported a significant growth in deposits, reaching INR2 lakh crores, marking a 38% YoY increase.
- Retail deposits grew by 44% from June '23 to June '24, showcasing strong customer trust and engagement.
- The bank's CASA ratio remains robust at 46.6%, with CASA deposits growing by 36% YoY.
- The bank has successfully repaid legacy borrowings and certificates of deposits worth INR65,000 crores since the merger.
- The credit deposit ratio has improved, with the incremental credit deposit ratio from June '23 to June '24 at 72.1%.
- Credit costs have increased this quarter, primarily due to the impact on the Joint Liability Group (JLG) portfolio, which saw a rise in delinquencies due to floods in Tamil Nadu.
- The cost-to-income ratio remains high at 70.45%, although it has decreased from the previous quarter's 73.15%.
- The bank's gross NPA stood at 1.9%, with net NPAs at 0.59%, indicating some asset quality concerns.
- Operating expenses increased by 21% YoY, which could impact profitability if not managed effectively.
- Provisions for the quarter were higher at INR994 crores, a 38% increase sequentially, driven by the JLG portfolio's performance.
Ladies and gentlemen, good day, and welcome to the IDFC First Bank Q1 FY24 earnings conference call hosted by ICICI Securities. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Chintan Shah. Thank you, and over to you, sir.
Thank you, [Faisal]. Good evening, everyone, and welcome to the Q1 FY25 earnings conference call for IDFC First Bank. We have with us from the senior management are Mr. V. Vaidyanathan, Managing Director and CEO, along with the senior management team. Also without further delay, I would now like to hand over the floor to the management. Thank you, and over to you, Vaidyanathan sir.
Hello, everyone. Good evening. This is Vaidyanathan, here.
Good evening,
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