IDFC First Bank Q2 PAT rises 197% to ₹1,045 crore on lower provisions

IDFC First Bank reported a 196.5% year-on-year (YoY) jump in net profit to ₹1,045 crore for the second quarter ended September 30, 2026, aided by lower provisions and an improvement in asset quality.

Net interest income (NII) rose 21% YoY to ₹6,184 crore, while total deposits grew 25.9% to ₹3,48,583 crore. Loans and advances, including credit substitutes and FCNR(B)-backed loans, increased 30.1% to ₹3,46,913 crore. Excluding FCNR(B)-backed loans, credit growth stood at 22.2%.

The bank’s total provisions declined to ₹1,137 crore during the quarter from ₹1,452 crore a year earlier, supporting profitability.

Asset quality indicators also showed improvement. Gross non-performing assets (NPAs) fell to ₹4,467 crore from ₹4,841 crore a year ago, while net NPAs edged down to ₹1,334 crore from ₹1,345 crore.

During Q2 FY27, the bank mobilised ₹34,390 crore in FCNR(B) deposits despite having no branch, subsidiary or representative office outside India.

“Raising over ₹34,000 crore of FCNR(B) deposits has been a significant positive for the Bank. It provides us with structural liquidity of 3 to 5 years, which is particularly valuable in a rising interest-rate environment,” said V. Vaidyanathan, MD and CEO.

“The fully loaded cost of these deposits, including PSL benefits, is about 1% lower than the cost of raising comparable deposits in the domestic market. Overall, Q2 FY27 was an excellent quarter, and we hope to sustain this momentum,” he added.