IDFC First Bank Q1 net more than doubles to ₹1,075 crore

IDFC First Bank’s first quarter (Q1) FY27 net profit more than doubled year-on-year (YoY) to ₹1,075 crore, supported by strong business momentum., improved asset quality and better cost management. Net Interest Margin (NIM) improved to 5.

96% in the quarter from 5.71% a year ago, up 25 bps basis points YoY.Loans and advances increased 20.

6% YoY to ₹ 3,05,370 crore, primarily driven by mortgage, vehicle, corporate and consumer loans the bank said.. Retail, agri and micro, small and medium enterprises book increased to ₹2,41,118 crore from ₹2,03,954 crore a year ago, up 18.2% YoY.

Wholesale book increased to ₹ 64,252 crore from ₹49,279 crore a year ago, up 30% YoY.Cost of funds eased by 46 bps YoY to 5.96%.

in Q1FY27 . Customer deposits increased to ₹ 2,99,405 crore, a YoY growth of 16.6%.

The capital adequacy ratio was at 15.05% with CET-I ratio of 13.33%.

“We are seeing strong business momentum. We believe the benefits of investments we have been making in building the bank have started playing out,” V Vaidyanathan, MD and CEO said,During the quarter the bank received claim proceeds aggregating to ₹ 514.82 crore from the National Credit Guarantee Trustee Company Limited (NCGTC) under the Credit Guarantee Fund for Micro Units (CGFMU) Scheme and the same has been accounted under “Provisions and Contingencies” in the Profit and Loss Account.

“The bank’s current asset quality performance remains healthy across key retail, rural and SME portfolios, with delinquency indicators largely stable or improving. However, considering the evolving macroeconomic and geopolitical uncertainties, the Bank has strengthened its balance sheet by voluntarily creating a contingency provision of ₹ 515 crore on a prudent basis during the quarter ended June 30, 2026,” it said in a filing. The lender’s net non-performing assets or NPA improved to 0.

44% from 0.55% the year-ago periodRevealing that the bank had recognized an expense of ₹645.59 crore towards the fraud incident at a branch in Chandigarh in the review period, it said “the forensic review has since been completed during the quarter ended June 30, 2026, by an external firm appointed by the bank.

The findings of the forensic review “re-affirm that the unauthorized and fraudulent transactions were processed through collusion of certain employees/ ex-employees of the bank at the said branch and no further material financial adjustments need to be taken apart from the amount already recognized and disclosed previously.”” Published - July 25, 2026 09:15 pm IST Read Comments Copy link Email Facebook Twitter Telegram LinkedIn WhatsApp Reddit READ LATER SEE ALL Remove Related Topics finance (general) / business (general)