Refile: India's IDFC First Bank hits 21-month low as microfinance segment weighs on Q3 profit

IDFC First Bank

27/01/2025 04:19

(Corrects media packaging code to "IDFC FIRST BANK-STOCKS/"
from "IDFC FIRST BANK-STOCK/")
       Jan 27 (Reuters) - Shares of IDFC First Bank  IDFB.NS 
fell nearly 7% on Monday to their lowest in 21 months after the
private lender reported its third-quarter profit more than
halved, hurt by higher bad loan provisions in the microfinance
business.
    IDFC First Bank, on Saturday, reported that gross slippages,
or the loans classified as non-performing for the first time, in
the microfinance segment jumped nearly 49% on-quarter to 4.37
billion rupees.
    "The microfinance industry continues to drag earnings and we
see the pain continuing for three-four quarters," analysts at
Jefferies said in a note.
    The stock is down about 9% so far this month, after losing
nearly 29% last year.

 (Reporting by Sethuraman NR; Editing by Eileen Soreng)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))