Jul 25, 2026 17:07:05
Loans up 20.6% YoY and 5.2% QoQ, Deposits up 17.7% YoY and 5.9% QoQ, CASA ratio at 50.8%, Asset quality improves.
Mumbai, July 25, 2026: IDFC FIRST Bank today announced its unaudited financial results for the quarter ended June 30, 2026. The Bank reported its highest ever quarterly Profit After Tax (PAT) of ₹1,075 crore in Q1 FY27, up 132.4% from ₹463 crore in Q1 FY26.
A.Total Customer Business (Loans + Customer Deposits) increased to Rs. 6,04,776 crore as of June 30, 2026, from Rs. 5,10,031 crore as of June 30, 2025, YoY growth of 18.6%. On QoQ basis, it grew 5.2%.
B.Loans and Advances (Including Credit Substitutes)
- Loans and Advances increased to Rs. 3,05,370 crore as of June 30, 2026 from Rs. 2,53,233 crore as of June 30, 2025, YoY growth of 20.6%. On QoQ basis, it grew by 5.2%. The incremental growth was primarily driven by Mortgage, Vehicle, Corporate loans and Consumer Loans
- Retail, Agri and MSME book (RAM) increased to Rs. 2,41,118 crore as of June 30, 2026, from Rs. 2,03,954 crore as of June 30, 2025, YoY growth of 18.2%. On QoQ basis, it grew by 3.8%.
- Wholesale book increased to Rs. 64,252 crore as of June 30, 2026, from Rs. 49,279 crore as of June 30, 2025, YoY growth of 30.4%. On QoQ basis, it grew by 11.0%
C.Asset Quality
- Gross NPA of the Bank improved to 1.51% as of June 30, 2026 from 1.97% as of June 30, 2025, improvement of 45 bps YoY. On QoQ basis it improved 10 bps
- Net NPA of the Bank improved to 0.44% as of June 30, 2026 from 0.55% as of June 30, 2025, improvement of 12 bps YoY. On QoQ basis it improved 4 bps
- Gross NPA of RAM portfolio improved to 1.40% as of June 30, 2026 from 1.82% as of June 30, 2025, improvement of 42 bps. On QoQ basis it improved 7 bps
- Net NPA of RAM portfolio improved to 0.52% as of June 30, 2026 from 0.66% as of June 30, 2025, improvement of 14 bps. On QoQ basis it improved 4 bps
- SMA-1 & 2 for overall RAM portfolio stable at 0.77% in June 30,2026 as compared to 0.78% in March 31, 2026
D.Deposits & Borrowings
- Customer Deposits increased to Rs. 2,99,405 crore as of June 30, 2026 from Rs. 2,56,799 crore as of June 30, 2025, YoY growth of 16.6%. On QoQ basis, it grew by 5.3%
- CASA Deposits increased to Rs. 1,58,492 crore as of June 30, 2026 from Rs. 1,27,158 crore as of June 30, 2025, YoY growth of 24.6%. On QoQ basis, it grew by 8.1%
- CASA Ratio stood at 50.8% as of June 30, 2026 (48.0% as of June 30, 2025 and 49.8% as of March 31, 2026)
- Cost of Funds improved by 46 bps from 6.42% in Q1 FY26 to 5.96% in Q1 FY27 (QoQ improvement of 4 bps)
E.Profitability
- 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.
- Fee to Average total assets stood at 2.09% for Q1 FY27 compared to 2.01% for Q1 FY26 and 2.13% for Q4 FY26.
- Operating Expense (excluding the impact of fraud incident reported in Q4 FY26) grew by 2.3% QoQ.
- Cost to Income ratio (excluding trading gains) of the Bank improved to 70.7% in Q1-FY27 from 73.8% in Q1-FY26, improved by 310 bps YoY and improved by 166 bps QoQ from 72.4% in Q4-FY26 (excluding the impact of fraud incident).
- Provisions as a % of Average Loans improved to 1.53% in Q1 FY27 from 2.69% in Q1 FY26, improvement of 115 bps YoY. On QoQ basis, it improved by 10 bps. 1.53% provisions to average loans in Q1FY27 translates to 1.13% on average assets.
- Bank received claims of Rs. 514.8 crore under the CGFMU scheme against MFI portfolio.
- Bank has created a contingency provision of Rs. 515.0 crore on a prudent basis for macro geopolitical uncertainties.
- Net Profit increased to Rs. 1,075 crore in Q1FY27 from Rs. 463 crore in Q1 FY26, YoY growth of 132.4%
- ROA for Q1FY27 was 1.06% as compared to 0.54% for Q1FY26.
F.Capital Position
- The Capital adequacy ratio for Q1 FY27 was at 15.05% with CET-I ratio of 13.33%
Commenting on the results, Mr. V Vaidyanathan, MD and CEO said, “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%. Our provisions as a % of loans continues to come down. During this quarter we got CGFMU claim of Rs 515 crores. We created a provision of Rs. 515 crore on a prudent basis towards any possible impact of monsoon or fuel prices volatility in the rest of the year. Finally, 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 Q1FY27. ROA crossed 1%”
