IDFC First Bank Q2 Results: Standalone PAT Soars by 75% YoY, NII Increases by 7%
IDFC First Bank has announced its impressive second-quarter financial results for the financial year 2026. The bank achieved a remarkable 75.5% year-on-year (YoY) increase in standalone net profit, reporting Rs 352.31 crore, up from Rs 200.69 crore in the same quarter last year. This substantial growth highlights the bank’s effective strategies and resilience in the current economic climate.
The Net Interest Income (NII) for this period was reported at Rs 5,112.57 crore, reflecting a growth of 6.8% compared to the previous year’s Rs 4,788 crore. Despite this growth, the bank’s net interest margin (NIM) saw a reduction of 59 basis points, dropping to 5.59% from 6.18% a year ago. Additionally, the gross Non-Performing Assets (NPA) ratio declined to 1.86%, while net NPA increased slightly by 4 basis points to 0.52% YoY.
Customer engagement also surged, with total customer business rising by 21.6% YoY to Rs 5,35,673 crore as of September 30, 2025, compared to Rs 4,40,640 crore the previous year. The bank saw significant growth in loans and advances, which increased by 19.7% YoY to Rs 2,66,579 crore from Rs 2,22,613 crore. Furthermore, customer deposits experienced a substantial growth of 23.4% YoY, reaching Rs 2,69,094 crore.
Boosted by these results, the bank’s CASA deposits climbed 26.8% YoY to Rs 1,38,583 crore, improving the CASA ratio by 119 basis points to 50.07%. The cost of funds also saw a positive trend, declining by 23 basis points YoY to 6.23%.
V. Vaidyanathan, the MD and CEO of IDFC First Bank, emphasized the stability of the bank’s asset quality and the improvement in operational leverage, noting a significant disparity between business growth and operational expenditure increases.
IDFC First Bank’s shares closed flat at Rs 71.91 on the BSE following the announcement. These robust Q2 results demonstrate the bank’s commitment to sustainable growth and customer-centric strategies, setting a strong foundation for future performance.