IDFC First Bank rises after Q2 PAT spurts 76% YoY to Rs 352 cr

IDFC First Bank rose 6.74% to Rs 76.40 after the company's net profit surged 75.55% to Rs 352.31 crore on a 10.71% increase in total income to Rs 11,828.34 crore in Q2 September 2025 over Q2 September 2024.

Core operating profit declined 1.7% YoY from Rs 1,857 crore in Q2 FY25 to Rs 1,825 crore in Q2 FY26.

Net Interest Income (NII) grew 6.8% YoY to Rs 5,113 crore during the quarter. However, the Net Interest Margin (NIM) decreased by 59 bps YoY, from 5.59% in Q2 FY26 to 6.18% in Q2 FY25.

Customer deposits increased by 23.4% to Rs 2,69,094 crore as of 30 September 2025, compared to Rs 2,18,026 crore as of 30 September 2024. Retail deposits grew by 21.4% to Rs 2,12,870 crore as of 30 September 2025.

CASA deposits grew by 26.8% to Rs 138,583 crore as of 30 September 2025, compared to Rs 109,292 crore as of 30 September 2024. The CASA ratio stood at 50.07% as of 30 September 2025, compared to 48.88% as of 30 September 2024.

Loans and advances increased by 19.7% to Rs 266,579 crore as of 30 September 2025, compared to Rs 222,613 crore as of 30 September 2024. The retail, rural, and MSME book stood at Rs 2,13,906 crore as of 30 September 2025.

The microfinance portfolio reduced by 41.6% YoY as of 30 September 2025. MFI book at 2.7% of funded assets against 5.6% as of 30 September 2024.

Gross NPA was 1.86% as of 30 September 2025, compared to 1.92% as of 30 September 2024. Net NPA stood at 0.52% as of 30 September 2025, down from 0.48% as of 30 September 2024.

The gross slippage for Q2 FY26 was at Rs 2,011 crore, compared to Rs 1,972 crore in Q1 FY26, representing a reduction of Rs 39 crore. The gross slippages for the microfinance business in Q2 FY26 stood at Rs 249 crore, down from Rs 514 crore in Q1 FY26. Gross slippages (excluding microfinance book) for Q2 FY26 improved to 3.39% as compared to 3.54% for Q1 FY26.

V. Vaidyanathan, managing director and CEO, IDFC First Bank, said, The stress in the MFI business was an MFI industry issue and looks like it is behind us. Other than MFI, the asset quality of the Bank has always been stable for over a decade through cycles and continues to be so with Gross NPA at 1.86% and Net NPA at 0.52% as of 30th September 2025.

On the cost of funds, we expect it to drop from here on. The bank is witnessing improving operating leverage. For instance, in FY25, total business, i.e., loans and customer deposits, grew by 22.7% YoY, against an increase in Opex of 16.5% YoY. Following on, in H1 FY26, total business grew by 21.6% YoY, against an Opex increase of 11.8% YoY. We hope to sustain this trend.

IDFC Bank is a universal bank, offering financial solutions through its nationwide branches, Internet, and mobile. The bank provides customized financial solutions to corporations, individuals, small and micro enterprises (SMEs), entrepreneurs, financial institutions, and the government.

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