IDFC First Bank Limited — PPTs, 26-04-2025: Investor Presentation

**Financial Highlights:** IDFC FIRST Bank reported a 25.2% YoY growth in customer deposits, totaling ₹2,42,543 crore, driven by a 26.4% growth in retail deposits. The total loan book increased by 20.4% YoY to ₹2,41,926 crore, with strong contributions from mortgage, vehicle, and MSME loans. However, the net profit declined by 48.4% YoY to ₹1,525 crore, impacted heavily by challenges in the microfinance sector.

**Strategic Initiatives and Growth Drivers:** The bank has been focusing on diversifying its loan portfolio, reducing microfinance loans from 6.6% to 4.0% of the total loan book. Plans to expand into retail and MSME finance remain a priority, contributing to a stable asset quality with GNPA at 1.87%.

**Business Developments:** The bank's successful digital transformation is evident, with significant growth in customer engagement and digital banking capabilities. Notably, a new mobile banking app has achieved high ratings and user engagement.

**Market Position and Competitive Advantage:** IDFC FIRST Bank has strengthened its market position through a diversified portfolio and stable CASA ratio, reflecting its robust retail deposit base. The alignment of its digital offerings enhances customer loyalty and retention.

**Investor Implications:** Despite the pressure on profitability from the microfinance segment, the bank's strong fundamentals and digital advancements present a positive outlook for long-term growth. Investors should watch the bank’s ability to stabilize and scale its retail and MSME segments moving forward.