IDFC FIRST Bank reported a robust 196.5% year-on-year increase in net profit for the second quarter of FY27, reaching INR1,045 crore. This strong performance was driven by healthy growth in advances and deposits, including significant mobilization of FCNR(B) deposits. The bank also highlighted an improved asset quality and a strategic focus on maintaining its CASA ratio, signaling continued positive momentum.
IDFC FIRST Bank Reports Strong Q2 FY27 Earnings
IDFC FIRST Bank has announced stellar financial results for the second quarter of fiscal year 2027, with net profit soaring by 196.5% year-on-year to INR1,045 crore. This marks the second consecutive quarter where the bank’s profit has exceeded INR1,000 crore, underscoring a period of sustained profitability and operational strength. The bank highlighted that while core profit was marginally down from the previous quarter due to higher treasury income then, the current quarter’s performance is robust.
Key Financial Highlights and Business Momentum
The bank witnessed healthy growth across key business segments. Advances grew by 30.1% year-on-year to INR3.47 lakh crore, and total deposits increased by 25.9% year-on-year to INR3.48 lakh crore. A significant development was the mobilization of INR34,390 crore (USD3.6 billion) of FCNR(B) deposits under an RBI scheme, which constituted about 10% of the bank’s total deposits as of September 30, 2026. This initiative, alongside a debut international rating from S&P and CareEdge, and a successful USD 950 million bond issuance, reflects the bank’s expanding financial capabilities and investor confidence.
Asset Quality and Profitability Metrics
Asset quality showed improvement, with the gross NPA ratio declining to 1.32% from 1.51% in the previous quarter. Similarly, the net NPA ratio improved to 0.40%. The bank’s net interest margin (NIM) stood at 5.58% for the quarter. Management explained that while FCNR mobilization temporarily impacted NIM by 16 basis points, its effect on ROA was minimal, with other factors like excess liquidity and asset mix also contributing. Looking ahead, the bank anticipates NIM recovery to approximately 5.8% by Q4 FY27. The core profitability trajectory is strong, with the bank consistently delivering results that show a significant upward trend over the past several quarters.
Capital Adequacy and Future Outlook
The bank maintained strong capital adequacy, with a capital adequacy ratio of 14.66% and a CET1 ratio of 13.01% as of September 2026. The Liquidity Coverage Ratio (LCR) was robust at 139% in September, driven by the FCNR inflows. Management expressed confidence in sustaining growth momentum, with a focus on leveraging its technology stack and customer-centric approach to drive future performance across both retail and corporate segments.
About IDFC FIRST Bank
IDFC FIRST Bank is a leading private sector bank offering a range of banking products and services to individuals, small businesses, and corporations. The bank is committed to building a customer-centric institution with a strong focus on technology and operational efficiency.
Source: BSE
