Shares of IDFC First Bank dropped nearly 8 percent on Monday morning, reaching a 52-week low following the release of disappointing third-quarter earnings. The bank reported a 53 percent decline in net profit, which stood at Rs 339 crore for the quarter ending December 2024. The sharp drop in profit was attributed to increased provisions due to higher loan slippages.

On the back of the weak earnings report, the company’s stock plunged by 7.7 percent, hitting a 52-week low of Rs 57.45 and Rs 57.46 on the NSE and BSE, respectively. The market response reflects investor concern over the bank’s performance, particularly the impact of higher loan defaults and the increased provisions required to cover those losses.

The decline in profits highlights the challenges faced by IDFC First Bank, which has struggled with a rising number of bad loans. Despite the setback, the bank continues to navigate its way through the financial landscape with efforts to strengthen its portfolio and maintain its market position.