IDFC First Bank's Q1 profit drops 32% to ₹463 crore
IDFC First Bank saw its profit drop 32% year-on-year this quarter, landing at ₹463 crore—even though it actually earned more from interest.
The main culprits? Tighter margins and changes in where the bank put its money.
Shrinking margins hit profit
The bank's net interest margin (basically how much it makes on loans) shrank to 5.71%, thanks to repo rate shifts, less income from microfinance, and lower investment returns.
Operating profit also dipped by 6.2% compared to last year, though it did bounce back a bit from the previous quarter.
Deposits grow over 25% y-o-y
On the bright side, people are trusting IDFC First Bank with their money more than ever.
Total deposits jumped 25.5% over last year to ₹2.56 lakh crore, with retail deposits making up a solid 80%.
Plus, the share of low-cost CASA accounts grew to 48%, showing stronger customer engagement despite the profit dip.