India’s IDFC First Bank hits 21-month low as microfinance segment weighs on third-quarter profits -January 27, 2025 at 5:22 a.m.

Shares of IDFC First Bank fell nearly 7% on Monday, hitting their lowest level in 21 months, after the private lender reported a more than half drop in third-quarter profit, due to the increase in provisions for doubtful debts in the microfinance sector.

IDFC First Bank on Saturday said gross slippages, or loans classified as non-performing for the first time, in the microfinance segment jumped nearly 49% from the previous quarter to Rs 4.37 billion.

“The microfinance sector continues to weigh on earnings and we expect the pain to continue for three or four quarters,” Jefferies analysts said in a note.

The stock is down about 9% month to date, after losing nearly 29% last year.