IDFC FIRST Bank Posts Highest Ever Quarterly Profit; PAT Jumps 132.4% YoY
IDFC FIRST Bank Limited today announced its unaudited financial results for the quarter ended June 30, 2026, reporting a record Profit After Tax (PAT) of ₹1,075 crore in Q1 FY27. This marked a significant increase from the ₹463 crore reported in Q1 FY26.The Bank’s operating performance saw notable improvements across margins and asset quality metrics. Net Interest Margin (NIM) improved to 5.96% in Q1 FY27, up 25 basis points (bps) from 5.71% recorded in Q1 FY26. The Cost to Income ratio (excluding trading gains) improved to 70.7% in Q1 FY27, down from 73.8% in the corresponding prior year quarter.
Business Growth and Balance Sheet Metrics
The Bank saw substantial growth in its core business segments during the quarter. Total Customer Business (comprising Loans and Deposits) increased to ₹6,04,776 crore as of June 30, 2026, representing an 18.6% year-on-year (YoY) growth, or 5.2% on a quarter-on-quarter (QOQ) basis.Key operational metrics for IDFC FIRST Bank:
| Metric | Q1 FY27 Value | YoY Change | QoQ Change |
|---|---|---|---|
| Loans and Advances | ₹3,05,370 crore | 20.6% | 5.2% |
| Retail Agri and MSME (RAM) Book | ₹2,41,118 crore | 18.2% | 3.8% |
| Customer Deposits | ₹2,99,405 crore | 16.6% | 5.3% |
| CASA Ratio | 50.8% | N/A | N/A |
Loans and Advances grew to ₹3,05,370 crore from ₹2,53,233 crore in Q1 FY26, driven by increases across Mortgage, Vehicle, Corporate, and Consumer loans. Simultaneously, Customer Deposits reached ₹2,99,405 crore, up from ₹2,56,799 crore a year earlier.
Asset Quality and Capital Adequacy
The Bank demonstrated continuous improvement in its asset quality metrics. Gross Non-Performing Assets (NPA) improved to 1.51% as of June 30, 2026, down from 1.97% in Q1 FY26, reflecting a 45 bps improvement YoY. Net NPA stood at 0.44%, an improvement of 12 bps YoY from 0.55%.The RAM portfolio Gross NPA improved to 1.40%, and the Net NPA for this segment fell to 0.52%. SMA-1 & SMA-2 status for the overall RAM portfolio remained stable at 0.77%. Provisions as a percentage of Average Loans improved to 1.53% in Q1 FY27, compared to 2.69% in Q1 FY26.
In terms of capital strength, the Bank reported a Capital Adequacy Ratio of 15.05%, with the CET-I ratio standing at 13.33%.
Management Commentary
Commenting on the results, Mr. V Vaidyanathan, MD and CEO stated that the company is building a high-quality banking institution with strong business momentum. He noted that asset quality continues to improve with Gross NPA at 1.51% and Net NPA at 0.44%.The management also confirmed that the Bank received a CGFMU claim of ₹515 crore against its MFI portfolio and created a contingent provision of ₹515 crore in light of macro geopolitical uncertainties. Mr. Vaidyanathan highlighted that investment benefits are starting to materialize, improving operating leverage and pushing PAT to ₹1,075 crore, causing Return on Assets (ROA) to cross 1% for Q1 FY27.
IDFCFIRSTB Stock Price Movement
On Friday, shares of IDFC First Bank Limited edged higher, gaining 1.31% to close at ₹80.79. The stock saw a total trading volume of 16.26 million shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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