New Research Reports

IDFC First Bank (IDFCFB) reported 4QFY25 PAT of INR3.04b (58% YoY decline, 6% beat to MOFSLe) amid lower tax expense. NII grew 10% YoY/ flat QoQ to INR49.1b (in line). NIMs contracted 9bp QoQ to 5.95% (in line), dragged by a decline in the MFI business.

SBI Cards (SBIC) reported a disappointing FY25 with a 20% decline in PAT driven by higher credit cost (9%) and low NIMs (10.8%). While management commentary and execution have ratified possible peaking of both credit cost and cost of funds (CoF), the recovery trajectory remains to be monitored.

Despite healthy balance sheet growth, higher provisioning led to a 58% y/y fall in IDFC First Bank’s PAT. Microfinance credit costs have peaked for the year. We value the bank at 1.2x FY27e PBV and retain a
Buy rating, primarily led by the higher balance sheet growth, strong NIM and improving operating leverage.

RBL Bank (RBK) reported 4QFY25 PAT of INR687m (81% YoY decline). NII declined 2.3% YoY to INR15.6b (in line) due to lower disbursals in the JLG business. NIMs remained broadly stable at 4.89% during the quarter.

Poonawalla reported another patchy quarter (Q4) with elevated credit cost (3.03% of AUM) and opex (4.6% of AUM) pushing profitability materially lower (RoA of 0.76%).

Business growth remains strong with a rising focus towards high-yielding advances

Poonawalla Fincorp (Poonawalla) reported mixed Q4FY25 earnings with PAT at INR 0.6bn or 76bps RoA, wherein opex continued to be elevated. However, there was some respite on credit cost front with sequential decline.

Poonawalla Fincorp (PFL)’s 4QFY25 PAT declined ~81% YoY to ~INR623m (MOFSLe: INR1.8b). FY25 loss was INR983m (vs. PAT of INR10.3b in FY24).

SHFL’s Q4FY25 results were mixed – credit cost was elevated causing a PBT miss, which was offset by lower tax rate that led to in-line PAT.

Shriram Finance’s (Shriram) Q4FY25 financial performance was subdued with a sharp NIM contraction and a spike in credit cost. While headline asset quality improved with GNPL falling to 4.55% vs. 5.38% QoQ, this was driven by higher write-offs at >INR 20bn during Q4FY25.