Loans up 20.6% YoY and 5.2% QoQ, Deposits up 17.7% YoY and 5.9% QoQ, CASA ratio 50.8%, improving asset quality.
Mumbai, July 25, 2026: IDFC First Bank today announced its unaudited financial results for the quarter ending June 30, 2026. The bank has recorded its highest ever quarterly profit after tax (PAT). ₹Rs 1,075 crore in Q1 FY27, up 132.4% ₹463 crore in Q1 FY26.
One.total customer business (Loan + Customer Deposit) increased to Rs. From Rs 6,04,776 crore by June 30, 2026. 5,10,031 crore by June 30, 2025, a growth of 18.6% YoY. It increased by 5.2% on QoQ basis.
B.Loans and Advances (including credit option)
- Loans and advances increased to Rs. Rs 3,05,370 crore by June 30, 2026. 2,53,233 crore by June 30, 2025, a growth of 20.6% year-on-year. It increased by 5.2% on QoQ basis. Incremental growth was mainly driven by mortgage, vehicle, corporate loans and consumer loans
- Retail, Agri and MSME book (RAM) increased to Rs. From Rs 2,41,118 crore by June 30, 2026. 2,03,954 crore by June 30, 2025, a growth of 18.2% YoY. It increased by 3.8% on QoQ basis.
- Wholesale book increased to Rs. From Rs 64,252 crore by June 30, 2026. 49,279 crore by June 30, 2025, a growth of 30.4% YoY. On QoQ basis, it increased by 11.0%
C.asset quality
- The bank’s gross NPA increased from 1.97% as of June 30, 2025, to 1.51% by June 30, 2026, an improvement of 45 bps year-on-year. It improved by 10 bps on QoQ basis
- The bank’s net NPA stands at 0.44% as on June 30, 2026, from 0.55% as on June 30, 2025, an improvement of 12 bps YoY. It improved by 4 bps on QoQ basis
- Gross NPA of RAM portfolio increased from 1.82% by June 30, 2025 to 1.40% by June 30, 2026, an improvement of 42 bps. It improved by 7 bps on QoQ basis
- Net NPA of RAM portfolio increased from 0.66% by June 30, 2025 to 0.52% by June 30, 2026, an improvement of 14 bps. It improved by 4 bps on QoQ basis
- SMA-1&2 for the overall RAM portfolio stood at 0.77% as of June 30,2026, as against 0.78% as of March 31,2026.
D.deposits and loans
- Customer deposits increased to Rs. Rs 2,99,405 crore by June 30, 2026. 2,56,799 crore by June 30, 2025, a growth of 16.6% YoY. It increased by 5.3% on QoQ basis
- CASA deposits increased to Rs. Rs 1,58,492 crore by June 30, 2026. 1,27,158 crore by June 30, 2025, an increase of 24.6% YoY. It increased by 8.1% on QoQ basis
- CASA ratio was 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 (improvement of 4 bps in QoQ)
E.profitability
- The bank’s net interest margin (NIM) increased by 25 bps from 5.71% in Q1 FY26 to 5.96% in Q1 FY27. On QoQ basis it increased by 3 bps.
- Fees 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 expenses (excluding the impact of the fraud incident reported in 4QFY26) increased by 2.3% QoQ.
- The bank’s earnings ratio (except trading profit) increased from 73.8% in Q1-FY26 to 70.7% in Q1-FY27, an improvement of 310 bps YoY and 166 bps QoQ improvement from 72.4% in Q4-FY26 (except the impact of the fraud incident).
- Provisions as a % of average loans increased to 1.53% in Q1 FY27 from 2.69% in Q1 FY26, an improvement of 115 bps YoY. It improved by 10 bps on QoQ basis. The 1.53% provision for average loans in Q1FY27 translates to 1.13% on average assets.
- The bank received a claim of Rs. 514.8 crore under CGFMU scheme against MFI portfolio.
- The Bank has made a contingency provision of Rs. Rs 515.0 crore on a prudent basis to account for wider geopolitical uncertainties.
- Net profit increased to Rs. In Q1FY27 Rs. to Rs 1,075 crore. Rs 463 crore in Q1 FY26, growth of 132.4% YoY
- ROA for Q1FY27 was 1.06% compared to 0.54% for Q1FY26.
F.capital position
- Capital adequacy ratio for Q1 FY27 was 15.05% and CET-I ratio was 13.33%
Commenting on the results, Mr. V Vaidyanathan, MD and CEO said, “Fundamentally, we are building a high quality banking institution with high governance standards. We are seeing strong business momentum. We are pleased to report that our asset quality continues to improve with gross NPAs of 1.51% and net NPAs of 0.44%. Our provisions as a % of loans continue to decline. We have received a CGFMU claim during the quarter. ₹515 crores. We made a provision of Rs. Rs 515 crore on a prudent basis against any possible impact of monsoon or fuel price volatility in the remaining year. Finally, we believe that the investment we are making in building the bank has started to pay off in operating profits, with our PAT increasing to Rs. 1,075 crore in Q1FY27. ROA crossed 1%”
about the bank
1.Vision: To build a world-class bank in India, founded on the principles of ethical, digital and social good banking.
2.scale: IDFC First Bank is one of the fast growing private banks in India which is 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 of Rs. ₹6,04,776 crore ($65.9b) which includes customer deposits. 2,99,405 crore ($32.6b) and loans and advances of Rs. ₹3,05,370 crore ($33.3b). Customer deposits grew by 16.6% and loans by 20.6% year-on-year. We reach over 60,000 cities, towns and villages, operating through 1,155 branches.
3.scope: We are a universal bank offering a full range of services including retail, MSME, rural, startup, corporate banking, cash management, credit cards, wealth management, deposits, government banking, working capital, trade finance and treasury solutions.
4.Ethical Banking: We’re committed to doing the right thing even when customers aren’t looking. We have simplified the descriptions, calculations and legal jargon to avoid confusing customers.
5.Digital Banking: The Bank’s modern technology stack provides high quality services across all channels such as mobile, branch, internet banking, call center and relationship manager. Built on cloud-native, API-based, microservices architecture, backed with data, analytics, AI and great aesthetics, we strive to provide a fintech-grade experience on the banking platform.
6.Social Good: We work for the society. We have impacted the lives of over 40 million people, 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 the middle class), 2.5 lakh electric 2W and 3W vehicles, 2.7 lakh water, sanitation and hygiene loans, 2 million livelihood (cattle) loans and financed 300,000+ SMEs. On Deposit, we provide access to premium investment research, which is usually reserved for the rich, even those with a balance of less than Rs 5,000. Our ESG score is high and improving.
7.Customer Friendly Banking: We make banking easy by taking a customer first approach. We have waived charges on 36 essential savings account services that 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.Government: We follow regulatory guidelines to the letter and actively work with regulators to make things better. We take pride in maintaining the highest levels of corporate governance.
9.Shareholders: We are building a well-diversified universal banking portfolio designed to deliver a consistent ROE of 16%+.
10.Employee: IDFC First Bank is designed to be a happy place to work with cutting-edge roles, meaningful growth opportunities and a culture of merit. Compensation is healthy, efforts are recognized, and employees feel proud and excited about building a world-class bank in India.
Cautionary Statement: “The statements made in this release may contain certain forward-looking statements based on various assumptions on the current and future business strategies of the Bank and the environment in which it operates. Actual results may differ materially or materially from the expressed or implied results due to risks and uncertainties. These risks and uncertainties include the impact of economic and political conditions in India and abroad, volatility in interest rates and securities markets, new regulations and government policies which The Bank’s ability to implement its strategies is as of the date referenced and the Bank has obtained all market data and other information from sources believed to be reliable, although its accuracy or completeness cannot be guaranteed.
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