IDFC First Bank Shares Surge 6% After Strong Q4FY25 Business Update

IDFC First Bank's stock witnessed a significant rally on April 3, 2025, climbing over 6% to ₹60.42. This surge comes on the back of a robust Q4FY25 business update, which highlighted a 23% year-on-year (YoY) growth in total business, reaching ₹4.84 lakh crore. The strong performance has bolstered investor confidence in the bank's growth trajectory.

Key Highlights of Q4FY25 Business Update

• Impressive Growth in Advances and Deposits:

• The bank reported a 24% YoY increase in funded assets, which rose to ₹1.92 lakh crore as of March 31, 2025.
• Customer deposits grew by 25.2% YoY to ₹1.62 lakh crore, reflecting the bank’s ability to attract and retain customers effectively.

• CASA Ratio Remains Strong:

• The Current Account Savings Account (CASA) ratio stood at an impressive 47%, showcasing the bank’s focus on low-cost deposit mobilization.

• Asset Quality Improvement:

• IDFC First Bank’s asset quality metrics also showed improvement, with gross non-performing assets (GNPA) declining to 2.2% from 2.8% YoY, indicating better credit risk management.

Q4 FY25 Business Update - Total Business

The business update revealed a strong year-on-year (YoY) surge of 22.7 per cent in total business, which comprises loans & advances and customer deposits. As of March 31, 2025, the total business stood at ₹ 4,84,394 crore, a significant increase from ₹ 3,94,718 crore as of March 31, 2024.

Q4 FY25 Business Update - Loans and Advances

The bank also reported substantial growth in loans & advances, with a YoY increase of 20.3%. This segment grew from ₹ 2,00,965 crore in the March quarter of the previous year to ₹ 2,41,848 crore by March 31, 2025. On a quarter-on-quarter (QoQ) basis, the growth in loans and advances was 4.7 per cent, indicating consistent credit expansion.

Q4 FY25 Business Update - Customer Deposits

Customer deposits demonstrated robust growth, rising from ₹ 1,93,753 crore as of March 31, 2024, to ₹ 2,42,546 crore by March 31, 2025, marking an impressive YoY growth of 25.2%. The QoQ growth in customer deposits was 6.7%, suggesting a steady inflow of deposits and improved customer confidence.

Q4 FY25 Business Update - CASA Deposits and Ratio

CASA (Current Account Savings Account) deposits also showed strong momentum, growing from ₹ 94,768 crore as of March 31, 2024, to ₹ 1,18,260 crore by March 31, 2025, representing a YoY growth of 24.8%. The QoQ growth in CASA deposits was 4.6 per cent, indicating stable deposit mobilisation. Despite this increase, the CASA Ratio remained stable at 46.9 percent as of March 31, 2025, compared to 47.2 per cent in March 2024 and 47.7 per cent in December 2024. This stability suggests a balanced deposit mix and effective liquidity management.

Q4 FY25 Business Update - Credit-Deposit Ratio

In the March quarter, the Credit-Deposit (CD) Ratio was 93.8 per cent, showing a decrease from 98.4 percent in the same period last year and 95.7 percent as of December 31, 2024.

Conclusion

IDFC First Bank’s stellar Q4FY25 performance underscores its strong fundamentals and growth potential. With a healthy CASA ratio, robust deposit growth, and improving asset quality, the bank is on track to deliver long-term value for its shareholders. Investors are optimistic about its prospects, making it a stock to watch in the banking sector.

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