Financial Performance Overview

IDFC FIRST Bank reported its highest ever quarterly Profit After Tax (PAT) of ₹1,075 crore in Q1 FY27, representing a 132.4% year-on-year (YoY) increase from ₹463 crore in Q1 FY26. Return on Assets (ROA) for Q1 FY27 was 1.06%, compared to 0.54% for Q1 FY26.

Business Growth Metrics

  • Total Customer Business (Loans + Customer Deposits) reached ₹6,04,776 crore as of June 30, 2026, showing 18.6% YoY growth and 5.2% quarter-on-quarter (QoQ) growth from ₹5,10,031 crore as of June 30, 2025.
  • Loans and Advances (including Credit Substitutes) increased to ₹3,05,370 crore as of June 30, 2026 from ₹2,53,233 crore as of June 30, 2025, representing 20.6% YoY growth and 5.2% QoQ growth.
  • Retail, Agri and MSME (RAM) book grew to ₹2,41,118 crore, up 18.2% YoY and 3.8% QoQ.
  • Wholesale book increased to ₹64,252 crore, up 30.4% YoY and 11.0% QoQ.
  • Incremental growth was primarily driven by Mortgage, Vehicle, Corporate loans and Consumer Loans.
  • Customer Deposits increased to ₹2,99,405 crore as of June 30, 2026 from ₹2,56,799 crore as of June 30, 2025, showing 16.6% YoY growth and 5.3% QoQ growth.
  • CASA Deposits increased to ₹1,58,492 crore, up 24.6% YoY and 8.1% QoQ.
  • CASA Ratio stood at 50.8% as of June 30, 2026 (48.0% as of June 30, 2025 and 49.8% as of March 31, 2026).

Asset Quality

  • Gross NPA improved to 1.51% as of June 30, 2026 from 1.97% as of June 30, 2025, representing a 45 bps YoY improvement and 10 bps QoQ improvement.
  • Net NPA improved to 0.44% as of June 30, 2026 from 0.55% as of June 30, 2025, representing a 12 bps YoY improvement and 4 bps QoQ improvement.
  • Gross NPA of RAM portfolio improved to 1.40% from 1.82% YoY (42 bps improvement) and improved 7 bps QoQ.
  • Net NPA of RAM portfolio improved to 0.52% from 0.66% YoY (14 bps improvement) and improved 4 bps QoQ.
  • SMA-1 & 2 for overall RAM portfolio remained stable at 0.77% in June 30, 2026 compared to 0.78% in March 31, 2026.

Profitability Drivers

  • Net Interest Margin (NIM) improved to 5.96% in Q1 FY27 from 5.71% in Q1 FY26, up 25 bps YoY and 3 bps QoQ.
  • Fee to Average total assets stood at 2.09% for Q1 FY27 compared to 2.01% for Q1 FY26 and 2.13% for Q4 FY26.
  • Operating Expense (excluding the impact of fraud incident reported in Q4 FY26) grew by 2.3% QoQ.
  • Cost to Income ratio (excluding trading gains) improved to 70.7% in Q1-FY27 from 73.8% in Q1-FY26 (310 bps YoY improvement) and improved 166 bps QoQ from 72.4% in Q4-FY26 (excluding fraud impact).
  • Cost of Funds improved by 46 bps from 6.42% in Q1 FY26 to 5.96% in Q1 FY27 (4 bps QoQ improvement).
  • Provisions as a % of Average Loans improved to 1.53% in Q1 FY27 from 2.69% in Q1 FY26 (115 bps YoY improvement) and improved by 10 bps QoQ. This translates to 1.13% on average assets.

Special Provisions and Claims

  • The bank received claims of ₹514.8 crore under the CGFMU scheme against MFI portfolio.
  • The bank created a contingency provision of ₹515.0 crore on a prudent basis for macro geopolitical uncertainties.

Capital Position

  • Capital adequacy ratio for Q1 FY27 was at 15.05% with CET-I ratio of 13.33%.

Management Commentary

MD and CEO Mr. V Vaidyanathan stated: \"At the core, we are building a high-quality banking institution with high governance standards. We are seeing strong business momentum. We are happy to share that our asset quality continues to improve with Gross NPA of 1.51% and net NPA of 0.44%. Our provisions as a % of loans continues to come down. During this quarter we got CGFMU claim of Rs 515 crores. We created a provision of Rs. 515 crore on a prudent basis towards any possible impact of monsoon or fuel prices volatility in the rest of the year. Finally, we believe the benefits of investments we have been making in building the bank have started playing out in operating leverage improving our PAT to Rs. 1,075 crore in Q1FY27. ROA crossed 1%\".

Bank Scale and Operations (as of June 30, 2026)

  • Serves 39 million customers
  • Customer business at ₹6,04,776 crore ($65.9b)
  • Operates through 1,155 branches
  • Reaches over 60,000 cities, towns, and villages
  • Offers complete range of universal banking services including Retail, MSME, Rural, Startups, Corporate Banking, Cash Management, Credit Cards, Wealth Management, Deposits, Government Banking, Working Capital, Trade Finance, and Treasury solutions.