IDFC First Bank Reports Q4FY25 Business Growth Amid Stock Volatility

Market Performance

IDFC First Bank's share price experienced a decline of over 2% on Friday, partially reversing the previous session's gains. The stock fell by 2.78% to ₹58.68 on the BSE. Despite a 5.5% increase in the last session following the bank's quarterly business update, the stock broke a three-day gaining streak.

Over the past month, the share price has increased by 2%. However, in the last three months, it has declined by 11%; over a six-month period, the stock has seen a 20% drop. On a year-on-year basis, IDFC First Bank's stock has declined by 27%. In contrast, the stock has delivered significant returns over the past five years, appreciating by 195%.

Q4FY25 Business Update

IDFC First Bank reported an increase in its total business, which includes Loans & Advances and Customer Deposits. The total business rose from ₹3,94,718 crore as of March 31, 2024, to ₹4,84,394 crore as of March 31, 2025, marking a growth of 22.7%.

• Loans & Advances: Increased by 20.3% year-on-year, rising from ₹2,00,965 crore to ₹2,41,848 crore. On a quarter-on-quarter basis, this segment grew by 4.7%.
• Customer Deposits: Grew by 25.2%, reaching ₹2,42,546 crore as of March 31, 2025, up from ₹1,93,753 crore a year earlier. Sequentially, deposits grew by 6.7%.
• Credit-Deposit Ratio: The bank has consistently reduced its Credit-Deposit Ratio since the merger of IDFC Bank and Capital First in December 2018. The Incremental Credit Deposit Ratio for the last 12 months, from March 31, 2024, to March 31, 2025, stood at 75.7%.

Summary

IDFC First Bank's share price declined following the release of its Q4FY25 business update despite an increase in total business and steady growth in Loans and advances and Customer Deposits. While the stock has faced short-term declines, it has shown substantial long-term appreciation. The bank continues to work on improving its financial metrics by reducing its Credit-Deposit Ratio through strategic measures.