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Private sector IDFC First Bank has released the results for the first quarter (April-June 2026) of the financial year 2026-27. In this quarter ending June 2026, the net profit of the bank has increased by 132.2% on an annual basis to Rs 1,075 crore.
In the same period a year ago, the bank had made a net profit of Rs 463 crore. This huge increase in the bank’s profit is due to strong net interest income (NII) and low provisioning.
Bank’s net interest income increased by 21%
The bank’s Net Interest Income (NII), i.e. the difference between interest earned and interest paid, has increased by 21% on an annual basis to Rs 5,972 crore. It was Rs 4,933 crore in the same quarter last year. This growth reflects the strength in the bank’s core lending business.
The bank’s net interest margin (NIM) has increased to 5.96% in the June 2026 quarter from 5.71% in the June 2025 quarter. That means it has improved by 25 basis points on an annual basis.
At the same time, on quarter-to-quarter (QoQ) basis, an increase of 3 bps has been recorded in NIM. During this period, the operating profit of the bank increased by 14% to Rs 2,553 crore, which was Rs 2,239 crore in the same quarter last year.
Provisioning reduced, asset quality improved
The bank’s provisioning expenses came down to Rs 1,144 crore in the first quarter, which was Rs 1,659 crore in the same quarter last year. However, this is more than Rs 869 crore in the previous quarter (March 2026).
The position of the bank has improved on the asset quality front. The bank’s gross NPA declined to 1.51% at the end of June quarter, which was 1.61% in the March quarter. Net NPA also improved to 0.44% from 0.48% in the previous quarter.
Total customer business crosses ₹6.04 lakh crore
By June 30, 2026, the bank’s total customer business (which includes loans and customer deposits) reached Rs 6,04,776 crore with an annual growth of 18.6%. A year ago it was Rs 5,10,031 crore. It has registered an increase of 5.2% on quarter-on-quarter basis.
The bank’s Return on Assets (RoA) increased to 1.06% in Q1 FY27 from 0.54% in the same quarter last year. Additionally, the bank’s capital adequacy ratio stood at 15.05%, including Common Equity Tier-1 (CET-I) ratio of 13.33%.
Loan book grew by 20.6%, 30% growth in wholesale segment.
The bank’s loans and advances (including credit substitutes) grew 20.6% YoY to Rs 3,05,370 crore from Rs 2,53,233 crore a year ago.
There was a growth of 5.2% on sequential basis. Mortgage, vehicle loan, corporate loan and consumer loan mainly contributed to this growth.
- RAM Portfolio: Retail, Agriculture and MSME (RAM) portfolio grew by 18.2% YoY to Rs 2,41,118 crore (QoQ 3.8% growth).
- Wholesale Book: The wholesale loan book saw faster growth, growing 30.4% YoY and 11% QoQ to Rs 64,252 crore.
Customer deposits increased by 16.6%, CASA ratio 50.8%
- The bank’s customer deposits increased by 16.6% YoY to Rs 2,99,405 crore as of June 30, 2026, which is 5.3% higher than the March quarter.
- The bank’s CASA deposits increased by 24.6% on annual basis and 8.1% on quarterly basis to reach Rs 1,58,492 crore.
- Due to this, the CASA ratio of the bank has improved to 50.8%, which was 48% a year ago and 49.8% in the March quarter.
What are CASA and NIM?
- Current Account Saving Account (CASA) Ratio: It shows the percentage of money in current and savings accounts in the total deposits of the bank. The higher the CASA ratio, the lower is the bank’s cost of raising funds, as less interest has to be paid on these accounts.
- Net Interest Margin (NIM): It is a measure of the financial performance of the bank. It shows the percentage of the difference between the interest received from loans given by the bank and the interest paid on deposits against the total assets.
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