IDFC First Bank reported a 5% increase in net profit for the fourth quarter, driven primarily by a 40% reduction in provisions, despite the financial impact of a ₹645-crore fraud identified at its Chandigarh branch. The bank’s net profit for the quarter ending March 31 stood at ₹319 crore, up from ₹304 crore in the same period a year earlier.

The bank’s operating profit experienced a significant decline, falling 42% to ₹1,059 crore compared with ₹1,812 crore in the corresponding quarter of the previous year. This sharp drop was largely attributed to the full recognition of the fraud amount as an expense during the quarter, which substantially raised operating expenses.

Provisions for the quarter decreased to ₹869 crore from ₹1,451 crore in the year-ago period, contributing to the rise in net profit. Meanwhile, the net interest margin (NIM) improved slightly to 5.95% from 5.76% during the preceding quarter, although it remained close to the 5.93% reported in the same quarter a year ago.

The bank indicated that it does not expect any further material revisions to its financial results beyond those already reflected in the current quarter. The incident at the Chandigarh branch has had a notable effect on the bank's overall operating performance, but the management appears confident that the impact is contained within the reported figures.