Lenders in the private sector On Saturday, July 25, IDFC First Bank released its results for the quarter that concluded in June 2026 (Q1FY27). Strong growth in net interest income (NII) and lower provisions helped IDFC First Bank post a significant increase in profitability for the first quarter of the fiscal year, with net profit more than doubling year over year (YoY).
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.
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.
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%.
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