IDFC First Bank Q1 Results 2026: Net profit surges 132% to ₹1,075 crore; NII rises 21%

IDFC First Bank Q1 Results 2026: Private sector lender IDFC First Bank posted its results for the quarter ended June 2026 (Q1FY27) on Saturday, July 25. IDFC First Bank reported a sharp rise in profitability for the first quarter of the financial year, with net profit more than doubling year-on-year (YoY), aided by strong growth in net interest income (NII) and lower provisions.

The private sector lender posted a net profit of ₹1,075 crore for the quarter, up 132.2% from ₹463 crore in the corresponding period last year.

NII, the difference between interest earned and interest paid, increased 21% YoY to ₹5,972 crore from ₹4,933 crore a year earlier, reflecting healthy growth in the bank's core lending business. Net Interest Margin (NIM) of the Bank improved to 5.96% in Q1 FY27 from 5.71% in Q1 FY26, up 25 bps. On QOQ, basis it was up by 3 bps.

Operating profit rose 14% YoY to ₹2,553 crore during the quarter, compared with ₹2,239 crore in the year-ago period.

Provisions and asset quality

The bank's provisions declined to ₹1,144 crore from ₹1,659 crore in the corresponding quarter last year, although they were higher than ₹869 crore reported in the previous quarter.

Asset quality improved sequentially during the quarter. Gross non-performing assets (GNPA) stood at 1.51% at the end of the June quarter, compared with 1.61% in the March quarter. Net non-performing assets (NNPA) also improved to 0.44% from 0.48% in the preceding quarter.

Other Highlights

Total customer business, comprising loans and customer deposits, rose 18.6% year-on-year (YoY) to Rs. 6,04,776 crore as of June 30, 2026, from Rs. 5,10,031 crore a year earlier. On a quarter-on-quarter (QoQ) basis, total customer business grew 5.2%.

The bank's loans and advances, including credit substitutes, increased 20.6% YoY to Rs. 3,05,370 crore from Rs. 2,53,233 crore, while growing 5.2% sequentially. The incremental growth was primarily driven by mortgages, vehicle loans, corporate loans and consumer loans. The retail, agriculture and MSME (RAM) portfolio expanded 18.2% YoY to Rs. 2,41,118 crore and grew 3.8% QoQ. Meanwhile, the wholesale loan book registered stronger growth, rising 30.4% YoY to Rs. 64,252 crore and 11% QoQ.

Customer deposits climbed 16.6% YoY to Rs. 2,99,405 crore as of June 30, 2026, while increasing 5.3% from the previous quarter. CASA deposits grew 24.6% YoY and 8.1% QoQ to Rs. 1,58,492 crore, taking the CASA ratio to 50.8%, compared with 48% a year ago and 49.8% in the March quarter.

The bank's return on assets (RoA) improved to 1.06% in Q1 FY27 from 0.54% in the corresponding quarter last year. Its capital adequacy ratio stood at 15.05%, including a Common Equity Tier-I (CET-I) ratio of 13.33%.

Management Commentary

Commenting on the quarterly performance, Managing Director and CEO V. Vaidyanathan said the bank continued to witness strong business momentum while maintaining high governance standards. He highlighted the improvement in asset quality, lower provisioning as a percentage of loans and stronger profitability, supported by operating leverage from investments made to strengthen the franchise.

"At the core, we are building a high-quality banking institution with high governance standards. We are seeing strong business momentum. We are happy to share that our asset quality continues to improve with Gross NPA of 1.51% and net NPA of 0.44%," Vaidyanathan said.

He added that the bank received a CGFMU claim of Rs. 515 crore during the quarter and created an equivalent prudent provision to mitigate any potential impact from monsoon-related risks or fuel price volatility. "We believe the benefits of investments we have been making in building the bank have started playing out in operating leverage, improving our PAT to Rs. 1,075 crore in Q1 FY27. RoA crossed 1%," he said.

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