Noida, Apr 25 (APAC Media): IDFC First Bank on Saturday reported a 5 per cent year-on-year increase in its standalone net profit at Rs 319 crore for the March quarter of FY26, compared with Rs 304 crore in the corresponding period prior year.
IDFC First Bank reported a 12 per cent year-on-year rise in interest income to Rs 10,553 crore for the quarter under review, compared with Rs 9,413 crore in the same period last year. Interest expenses also increased, with the lender paying Rs 4,876 crore in Q4FY26 against Rs 4,506 crore in Q4FY25, marking a nearly 8 per cent growth.
Net interest income (NII), defined as the difference between interest earned and interest expended, rose 16 per cent year-on-year to Rs 5,677.16 crore in Q4FY26 from Rs 4,907.15 crore in the corresponding period last year.
Loans and advances rose 20 per cent year-on-year and 4.1 per cent quarter-on-quarter to Rs 2.90 lakh crore in Q4FY26, while deposits increased by over 17.5 per cent annually to Rs 2.84 lakh crore, registering a marginal sequential uptick of 0.7 per cent.
The private lender’s net interest margin (NIM) edged down by 2 basis points year-on-year to 5.93 per cent in Q4FY26, compared with 5.95 per cent in the same period last year.
CASA deposits stood at Rs 1.46 lakh crore in the January–March quarter, registering a 24 per cent year-on-year increase, though declining 2.5 per cent on a sequential basis.
The cost of funds eased to 6 per cent, down 51 basis points year-on-year and 11 basis points quarter-on-quarter.
“We have always maintained that asset quality across businesses is strong, barring the microfinance book, which was an industry-wide issue in FY25 and FY26. With that now behind us, GNPA and NNPA have improved to healthy levels of 1.61 per cent and 0.48 per cent, respectively,” V. Vaidyanathan, MD & CEO of IDFC Bank, said.
The bank said 87 per cent of the year-on-year growth in loans was driven by segments such as mortgage loans, vehicle loans, consumer loans, business banking and wholesale lending.
“Provisions in Q4FY26 declined to a two-year low at 1.63 per cent of loans, equivalent to 1.18 per cent of assets. The first month of Q1FY27 has started well for deposits, and we are confident of maintaining healthy growth in line with past trends,” Vaidyanathan added.
During the quarter, credit cards in force crossed the 4.5 million marks. Meanwhile, the bank’s private wealth management business grew 23 per cent year-on-year to surpass Rs 57,000 crore.
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