IDFC First Bank aims to achieve a return on equity (ROE) of 15-16% and is focused on generating returns on capital.
The bank’s Q4 profit declined due to normalized credit costs, largely impacted by its microfinance book, which saw gross slippages of Rs 572 crore. However, the credit card business reached breakeven within four years.
The bank has paid off Rs 7,000 crore in legacy loans in FY25 and plans to pay off an additional Rs 4,500 crore in FY26. The incremental credit-deposit ratio stood at 76.1% in FY25.
(Source: Informist/ Earnings concall)