Loans up 20.6% YoY and 5.2% QoQ, Deposits up 17.7% YoY and 5.9% QoQ, CASA ratio at 50.8%, Asset quality improves.
Mumbai, July 25, 2026: IDFC FIRST Bank today announced its unaudited financial results for the quarter ended June 30, 2026. The Bank reported its highest ever quarterly Profit After Tax (PAT) of ₹1,075 crore in Q1 FY27, up 132.4% from ₹463 crore in Q1 FY26.
A.Total Customer Business (Loans + Customer Deposits) increased to Rs. 6,04,776 crore as of June 30, 2026, from Rs. 5,10,031 crore as of June 30, 2025, YoY growth of 18.6%. On QoQ basis, it grew 5.2%.
B.Loans and Advances (Including Credit Substitutes)
- Loans and Advances increased to Rs. 3,05,370 crore as of June 30, 2026 from Rs. 2,53,233 crore as of June 30, 2025, YoY growth of 20.6%. On QoQ basis, it grew by 5.2%. The incremental growth was primarily driven by Mortgage, Vehicle, Corporate loans and Consumer Loans
- Retail, Agri and MSME book (RAM) increased to Rs. 2,41,118 crore as of June 30, 2026, from Rs. 2,03,954 crore as of June 30, 2025, YoY growth of 18.2%. On QoQ basis, it grew by 3.8%.
- Wholesale book increased to Rs. 64,252 crore as of June 30, 2026, from Rs. 49,279 crore as of June 30, 2025, YoY growth of 30.4%. On QoQ basis, it grew by 11.0%
C.Asset Quality
- Gross NPA of the Bank improved to 1.51% as of June 30, 2026 from 1.97% as of June 30, 2025, improvement of 45 bps YoY. On QoQ basis it improved 10 bps
- Net NPA of the Bank improved to 0.44% as of June 30, 2026 from 0.55% as of June 30, 2025, improvement of 12 bps YoY. On QoQ basis it improved 4 bps
- Gross NPA of RAM portfolio improved to 1.40% as of June 30, 2026 from 1.82% as of June 30, 2025, improvement of 42 bps. On QoQ basis it improved 7 bps
- Net NPA of RAM portfolio improved to 0.52% as of June 30, 2026 from 0.66% as of June 30, 2025, improvement of 14 bps. On QoQ basis it improved 4 bps
- SMA-1 & 2 for overall RAM portfolio stable at 0.77% in June 30,2026 as compared to 0.78% in March 31, 2026
D.Deposits & Borrowings
- Customer Deposits increased to Rs. 2,99,405 crore as of June 30, 2026 from Rs. 2,56,799 crore as of June 30, 2025, YoY growth of 16.6%. On QoQ basis, it grew by 5.3%
- CASA Deposits increased to Rs. 1,58,492 crore as of June 30, 2026 from Rs. 1,27,158 crore as of June 30, 2025, YoY growth of 24.6%. On QoQ basis, it grew by 8.1%
- CASA Ratio stood at 50.8% as of June 30, 2026 (48.0% as of June 30, 2025 and 49.8% as of March 31, 2026)
- Cost of Funds improved by 46 bps from 6.42% in Q1 FY26 to 5.96% in Q1 FY27 (QoQ improvement of 4 bps)
E.Profitability
- Net Interest Margin (NIM) of the Bank improved to 5.96% in Q1 FY27 from 5.71% in Q1 FY26, up 25 bps. On QoQ, basis it was up by 3 bps.
- Fee to Average total assets stood at 2.09% for Q1 FY27 compared to 2.01% for Q1 FY26 and 2.13% for Q4 FY26.
- Operating Expense (excluding the impact of fraud incident reported in Q4 FY26) grew by 2.3% QoQ.
- Cost to Income ratio (excluding trading gains) of the Bank improved to 70.7% in Q1-FY27 from 73.8% in Q1-FY26, improved by 310 bps YoY and improved by 166 bps QoQ from 72.4% in Q4-FY26 (excluding the impact of fraud incident).
- Provisions as a % of Average Loans improved to 1.53% in Q1 FY27 from 2.69% in Q1 FY26, improvement of 115 bps YoY. On QoQ basis, it improved by 10 bps. 1.53% provisions to average loans in Q1FY27 translates to 1.13% on average assets.
- Bank received claims of Rs. 514.8 crore under the CGFMU scheme against MFI portfolio.
- Bank has created a contingency provision of Rs. 515.0 crore on a prudent basis for macro geopolitical uncertainties.
- Net Profit increased to Rs. 1,075 crore in Q1FY27 from Rs. 463 crore in Q1 FY26, YoY growth of 132.4%
- ROA for Q1FY27 was 1.06% as compared to 0.54% for Q1FY26.
F.Capital Position
- The Capital adequacy ratio for Q1 FY27 was at 15.05% with CET-I ratio of 13.33%
Commenting on the results, Mr. V Vaidyanathan, MD and CEO 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%”
About the Bank
1.Vision: To build a world-class Bank in India, founded with principles of Ethical, Digital, and Social Good Banking.
2.Scale: IDFC FIRST Bank is one of India’s fast-growing private banks, building its UI, UX, and tech stack like a fintech. As of June 30, 2026, the Bank serves 39 million customers, with a customer business at Rs. 6,04,776 crore ($65.9b) comprising customer deposits of Rs. 2,99,405 crore ($32.6b) and loans & advances of Rs. 3,05,370 crore ($33.3b). Customer deposits grew 16.6% YoY and loans 20.6% YoY. We reach over 60,000 cities, towns, and villages, operate through 1,155 branches.
3.Scope: We are a universal Bank offering complete range of services, including Retail, MSME, Rural, Startups, Corporate Banking, Cash Management, Credit Cards, Wealth Management, Deposits, Government Banking, Working Capital, Trade Finance, and Treasury solutions.
4.Ethical Banking: We are committed to doing right even when customers are not watching. We have simplified descriptions, calculations, and legal jargon to avoid confusing customers.
5.Digital Banking: The Bank’s modern technology stack delivers high-quality services across all channels like mobile, branch, internet banking, call centers and relationship managers. Built on cloud-native, API-led, microservices architecture, supported with data, analytics, AI, and fine aesthetics, we strive to deliver fintech-grade experiences on banking platform.
6.Social Good: We work for society. We have impacted over 40 million lives including 3.6 million women entrepreneurs. We have financed over 7.5 million lifestyle improvement loans (for laptops, washing machines, refrigerators etc. that enhance the quality of life of middle class), 2.5 lakh electric 2W and 3W vehicles, 2.7 lakh water, sanitation, and hygiene loans, 2 million livelihood (cattle) loans, and 300,000+ SMEs. On deposits, we provide access of premium investment research, which is usually reserved for the wealthy, even to those holding balances as low as Rs.5,000. Our ESG scores are high and improving.
7.Customer Friendly Banking: We make banking easy by having a customer first approach. We have waived fees on 36 essential savings account services which are commonly charged in the market, the first and only bank in India to do so. We create “pull” products that customers actively seek out.
8.Governance: We adhere to regulatory guidelines in letter and spirit and actively work with regulators to make things better. We take pride in maintaining highest levels of corporate governance.
9.Shareholders: We are building a well-diversified universal banking portfolio designed to deliver consistent ROE of 16%+.
10.Employees: IDFC FIRST Bank is designed to be a happy place to work, with cutting-edge roles, meaningful growth opportunities, and a culture of meritocracy. Compensation is healthy, efforts are recognized, and employees experience the pride and excitement of creating a world-class Bank in India.
Cautionary Statement: “Statements made in this release may contain certain forward-looking statements based on various assumptions on the Bank’s present and future business strategies and the environment in which it operates. Actual results may differ substantially or materially from those expressed or implied due to risk and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India and abroad, volatility in interest rates and in the securities market, new regulations and Government policies that may impact the Bank’s businesses as well as the ability to implement its strategies. The information contained herein is as of the date referenced and the Bank does not undertake any obligation to update these statements. The Bank has obtained all market data and other information from sources believed to be reliable or its internal estimates, although its accuracy or completeness cannot be guaranteed.”
