IDFC FIRST Bank Reports Q4 FY26 Results: Normalized PAT Jumps 145% Year-Over-Year
The Board of Directors of IDFC FIRST Bank approved the audited financial results for the quarter and the year ended March 31, 2026. The bank reported a Profit After Tax (PAT) of Rs. 319 crore for Q4 FY26, noting a normalized PAT of Rs. 746 crore, representing a 145.3% Year-on-Year (YoY) increase, excluding the impact of isolated incidents.Financial Performance Snapshot
The bank’s financial metrics for the period ending March 31, 2026, showed steady growth across key operational areas.| Metric (Rs. Crore) | 31 Mar 25 | 31 Dec 25 | 31 Mar 26 | QoQ Change | YoY Change |
|---|---|---|---|---|---|
| Total Customer Business | 4,84,469 | 5,62,091 | 5,74,731 | 2.2% | 18.6% |
| Loans and Advances | 2,41,926 | 2,79,428 | 2,90,278 | 3.9% | 20.0% |
| Gross NPA | 1.87% | 1.69% | 1.61% | -8 bps | -27 bps |
| Net NPA | 0.53% | 0.53% | 0.48% | -5 bps | -5 bps |
| SMA 1 + 2 (Retail, Rural and MSME) | 1.07% | 0.88% | 0.78% | -10 bps | -29 bps |
| Customer Deposits | 2,42,543 | 2,82,662 | 2,84,453 | 0.6% | 17.3% |
| CASA Deposits | 1,18,237 | 1,50,350 | 1,46,650 | -2.5% | 24.0% |
| CASA Ratio | 46.91% | 51.64% | 49.80% | -184 bps | 289 bps |
| Capital Adequacy % | 15.48% | 16.22% | 15.60% | -62 bps | 12 bps |
The profitability metrics for the quarter ending March 31, 2026, were:
| Profitability Metric | Q4 FY25 | Q3 FY26 | Q4 FY26 | QoQ Change | YoY Change |
|---|---|---|---|---|---|
| Net Interest Margin | 5.95% | 5.76% | 5.93% | 18 bps | -2 bps |
| Core Operating Profit | 1,618 | 1,937 | 1,492 | -23.0% | -7.8% |
| Profit After Tax | 304 | 503 | 319 | -36.5% | 4.9% |
| Normalized PAT | 304 | 503 | 746 | 48.4% | 145.3% |
(Note: The Normalized Profit After Tax excludes one-time impact items, including the fraud incident, Treasury loss, and Income Tax refund.)
Operational Highlights and Asset Quality
On the operational front, the bank's asset quality remained stable, with the Net NPA recorded at 0.48% and Gross NPA at 1.61% for the quarter. The bank utilized Rs 35 crores of contingency provisions on MFI in Q4 FY26 and the next financial year.According to the bank, 87% of the YoY growth in loans is attributed to Mortgage Loans, Vehicle loans, Consumer loans, Business Banking, and Wholesale loans. Furthermore, the wealth management business (Private Wealth) saw a 23% YoY growth, surpassing Rs. 57,000 crore.
The bank also noted that Credit Cards in force crossed the 4.5 million mark during Q4 FY26.
Management Commentary
Commenting on the results, Mr. V Vaidyanathan, MD and CEO, stated that the asset quality of the bank remains stable. He pointed out that with the micro-finance issue now behind the bank, the GNPA and NNPA have come down to healthy levels of 1.61% and 0.48% respectively.He further added that provisions for Q4 FY26 were at the lowest level in two years, recorded at 1.63% of loans, which translates to 1.18% of assets. Regarding the incident in Chandigarh, the bank fully expensed out the impacted amount in Q4 FY26, resulting in a post-tax impact of Rs. 483 crores.
Mr. Vaidyanathan also expressed confidence in the deposit business, noting that the first month of Q1 FY27 started strongly, allowing the bank to grow its deposit business healthily.
IDFCFIRSTB Stock Price Movement
Shares of IDFC First Bank Limited on Friday slipped by 0.65% to close at ₹67.23. The stock settled amid significant trading activity, completing the session on a substantial volume of 16.91 million shares.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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