IDFC First Bank Q1 results: IDFC First Bank Ltd. reported a significant drop in its net profit for the first quarter of FY26. The profit is largely impacted by microfinance business and interest rate movement, the bank informed in an exchange filing.
Profitability in this quarter
The private lender reported a profit after tax (PAT) of ₹462.6 crore for the June quarter, marking a 32.07% drop compared to ₹681 crore in the same period last year.
Its net interest income (NII) increased by 5% year-on-year, rising to ₹4,933 crore from ₹4,695 crore.
“Our margins reduced because we passed on the benefit of repo rate to eligible borrowers and asset mix change, but term deposits broadly would take a year to reprice downwards. So, by H2 FY26 margins is likely to be better,” said V Vaidyanathan, the Managing Director and CEO of IDFC First Bank.
Asset quality weakens
Provisions and contingencies of the bank jumped 67% year on year to 1,659 crore. This was impacted by slippages in the bank’s micro-finance book, the press release said.
Gross non-performing assets ratio came in at 1.97% as compared to 1.90% during the same quarter a year ago, with the total gross NPA increasing to ₹4,867 crore from ₹3,904 crore.
Net NPA also increased to ₹1,346 crore in Q1 of FY2026 from ₹1,195 crore in the same period of last fiscal.
Deposits and borrowings
Customer Deposits increased from Rs. 2,046 crore in Q1 of last fiscal to Rs. 2,568 crore this quarter, making a 25.5% increase.
Retail Deposits increased by 24.5% YOY, rising to Rs. 2,042 crore this quarter from Rs. 1,640 crore in the same period a year ago.
Current Accounts and Savings Accounts (CASA) Deposits also grew by 30.2% YOY from Rs. 977 crore as of June 30, 2024 to Rs. 1,272 crore as of June 30, 2025.
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