IDFC First Bank Q1 Results: Profit shoots up 132% YoY to record Rs 1,075 crore; NII jumps 21%

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IDFC First Bank reported a record quarterly profit after tax of Rs 1,075 crore for Q1 FY27, a 132.4% year-on-year increase. Net interest income rose by 21.1%, with improved asset quality and higher deposits and loans across retail, agriculture, and MSME sectors.

IDFC First Bank on Saturday reported its highest-ever quarterly profit after tax (PAT) of Rs 1,075 crore for the quarter ended June 30, 2026, marking a 132.4% year-on-year increase from Rs 463 crore in the corresponding quarter last year.Net interest income (NII) rose 21.1% year on year to Rs 5,972.3 crore from Rs 4,933 crore in the corresponding quarter last year.The bank's net interest margin (NIM) improved to 5.96% in Q1 FY27 from 5.71% in Q1 FY26, an increase of 25 basis points. On a sequential basis, NIM rose 3 basis points.However it must be noted that the lender received claims of Rs 514.8 crore under the CGFMU scheme against MFI portfolio, it disclosed in a regulatory filing. Asset quality also improved during the quarter. Gross non-performing assets (NPA) declined to 1.51% as of June 30, 2026, from 1.97% a year earlier, an improvement of 45 basis points. On a quarter-on-quarter basis, gross NPA improved by 10 basis points.Deposits and borrowingCustomer deposits increased 16.6% year on year to Rs 2.99 lakh crore as of June 30, 2026, from Rs 2.56 lakh crore a year earlier. On a quarter-on-quarter basis, deposits grew 5.3%.CASA deposits rose 24.6% YoY to Rs 1.58 lakh crore as of June 30, 2026, from Rs 1.27 lakh crore in the year-ago period. On a sequential basis, CASA deposits increased 8.1%.Loans and advancesLoans and advances, including credit substitutes, rose 20.6% year on year to Rs 3.05 lakh crore as of June 30, 2026, from Rs 2.53 lakh crore a year earlier. On a quarter-on-quarter basis, the book grew 5.2%, driven primarily by growth in mortgage, vehicle, corporate and consumer loans.The retail, agriculture and MSME (RAM) book increased 18.2% YoY to Rs 2.41 lakh crore from Rs 2.03 lakh crore, while growing 3.8% sequentially.IDFC Bank Q1 management commentaryThe lender said it is focused on building a high-quality institution with strong governance standards and is witnessing healthy business momentum.He said asset quality continued to improve, with gross NPA at 1.51% and net NPA at 0.44%, while provisions as a percentage of loans also continued to decline. During the quarter, the bank received a CGFMU claim of Rs 515 crore and, on a prudent basis, created a provision of Rs 515 crore to account for any potential impact from monsoon conditions or fuel price volatility during the rest of the year.Vaidyanathan said investments made in building the bank are beginning to translate into operating leverage, helping lift PAT to Rs 1,075 crore in Q1 FY27. Return on assets (ROA) also crossed 1%.