IDFC First Bank reported strong Q2 FY26 results, with customer deposits up 23.4%, reaching ₹2.69 lakh crores. Retail deposits grew 24%, and CASA deposits increased by 26.8%. The bank’s CASA ratio stood at 50.1%. Total loans and advances grew by 19.7% to ₹2.67 lakh crores. Gross NPA improved to 1.86%, and net NPA improved to 0.52%. The bank reported a net profit of ₹352 crores for the quarter.
Strong Deposit and Loan Growth
IDFC First Bank showcased significant growth in its deposit base. Total customer deposits increased by 23.4% year-over-year, reaching approximately ₹2.69 lakh crores. Retail deposits also saw strong growth, increasing by 24%. CASA deposits experienced substantial growth, up 26.8% year-over-year. The bank opened 25 new branches, bringing the total to 1,041.
Asset Quality Improvement
The bank demonstrated improvements in asset quality. Gross NPA improved by 11 basis points to 1.86%. Net NPA also improved to 0.52%. The Provision Coverage Ratio (PCR) remained healthy at 72.2% as of September 30, 2025.
Microfinance Portfolio Update
The microfinance portfolio slightly decreased to ₹7,300 crores from ₹8,300 crores in the previous quarter. Insurance coverage on the microfinance portfolio reached 77%.
Credit Card and Wealth Management Growth
The bank issued over 4 million credit cards, with the credit card book reaching ₹8,600 crores. Spends on credit cards grew by approximately 36% in the first half of FY26. The bank’s wealth management AUM grew by 28% to approximately ₹55,000 crores.
Profitability and Future Outlook
IDFC First Bank reported a profit after tax of ₹352 crores for the quarter and ₹815 crores for the first half of FY26. Net profit increased by 76% year-over-year. The bank anticipates margins have largely bottomed out and expects improvement in the coming quarters.
Capital Adequacy
The capital adequacy ratio, including profits for H1 FY26, was at 14.34% with a CET1 ratio of 12.27%. Factoring in the conversion of CCPS, the CRAR and Tier 1 would be 16.82% and 14.75%, respectively. Average LCR deposits stood at 115% for the quarter.
Source: BSE
