DBT Bureau
Pune, 26 July 2026
IDFC FIRST Bank has announced its highest-ever quarterly profit, reporting a Profit After Tax (PAT) of ₹1,075 crore for the quarter ended June 30, 2026 (Q1 FY27). This is a jump of 132.4% compared to ₹463 crore in the same quarter last year (Q1 FY26).
Business Growth
The bank’s total customer business — loans plus customer deposits — rose to ₹6,04,776 crore as of June 30, 2026, up from ₹5,10,031 crore a year earlier, a growth of 18.6%. On a quarter-on-quarter basis, it grew 5.2%.
Total loans and advances increased to ₹3,05,370 crore, up 20.6% from ₹2,53,233 crore last year. Growth was mainly driven by mortgages, vehicle loans, corporate loans and consumer loans.
The Retail, Agri and MSME (RAM) book grew 18.2% year-on-year to ₹2,41,118 crore, while the wholesale loan book grew faster, up 30.4% to ₹64,252 crore.
Asset Quality Improves
The bank’s bad loans continued to shrink. Gross NPA improved to 1.51% from 1.97% a year ago, while Net NPA improved to 0.44% from 0.55%.
Deposits
Customer deposits rose 16.6% year-on-year to ₹2,99,405 crore. CASA (current and savings account) deposits grew faster, up 24.6% to ₹1,58,492 crore, pushing the CASA ratio to 50.8%, compared to 48.0% a year earlier.
The bank’s cost of funds also improved, falling to 5.96% in Q1 FY27 from 6.42% in Q1 FY26.
Profitability
Net Interest Margin (NIM) improved to 5.96% from 5.71% a year earlier. The Cost to Income ratio improved to 70.7% from 73.8%. Return on Assets (ROA) rose to 1.06% from 0.54%, crossing the 1% mark.
The bank also said it received a claim of ₹514.8 crore under the CGFMU scheme related to its MFI (microfinance) portfolio, and separately set aside a contingency provision of ₹515.0 crore to guard against possible risks from monsoon disruption or fuel price volatility later in the year.
Capital Position
The bank’s capital adequacy ratio stood at 15.05%, with a CET-I ratio of 13.33%.
Management Comment
MD and CEO V Vaidyanathan 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%”
