IDFC FIRST Bank reported a 10 percent decrease in net profit, amounting to Rs 724 crore for the fourth quarter ending March 2024, primarily due to a significant increase in provisions. This marks a decrease from the Rs 803 crore net profit recorded in the corresponding period last year. However, the bank’s total income saw an uptick, rising to Rs 9,861 crore from Rs 7,822 crore a year ago. Interest income also witnessed growth, climbing to Rs 8,219 crore compared to Rs 6,424 crore in the same quarter of the previous year.

Net Interest Income (NII) experienced a substantial increase of 24 percent, reaching Rs 4,469 crore in Q4 FY24 from Rs 3,597 crore in Q4 FY23. The bank’s asset quality improved, with gross Non-Performing Assets (NPAs) decreasing to 1.88 percent of gross advances by March 31, 2024, down from 2.51 percent in March 2023. Similarly, net NPAs decreased to 0.60 percent of advances compared to 0.86 percent in the previous fiscal year.

Read more: Axis Bank re-appoints Amitabh Chaudhry as MD & CEO

However, provisions and contingencies surged by 50 percent to Rs 722 crore in Q4 FY24, as opposed to Rs 482 crore in the same period last year. The bank opted not to declare any dividends for FY24 and FY23. Additionally, the capital adequacy ratio dropped to 16.11 percent from 16.82 percent at the end of the previous fiscal year.