IDFC FIRST Bank Q2 FY27 Results: PAT Up 196.5% YoY

On 26 October 2026, IDFC FIRST Bank released its unaudited financial results for the quarter and half‑year ended 30 September 2026. The Bank posted a Profit After Tax (PAT) of ₹1,045 crore in Q2 FY27, representing a 196.5% year‑on‑year increase. For the first half of FY27, PAT totaled ₹2,120 crore, with a Return on Assets (ROA) of 0.93% in Q2 versus 0.99% for the half‑year.

Deposit and loan growth

  • Total deposits rose 25.9% YoY and 11.8% QoQ, reaching ₹3,48,583 crore.
  • The average CASA ratio held at 48.4% in Q2, a slight decline from 50.1% in the prior quarter, reflecting large mobilisation of FCNR(B) deposits.
  • Loans and advances, inclusive of credit substitutes and FCNR(B)‑backed loans, expanded 30.1% YoY to ₹3,46,913 crore. Excluding loans secured by FCNR(B) deposits, loan growth was 22.2%, gross of IBPC.

Operating efficiency

  • Operating expenses grew slower than income by roughly 500 basis points YoY for the second consecutive quarter, delivering strong operating leverage.
  • The incremental cost‑to‑income ratio for H1 FY27 was 55%.
  • The core cost‑to‑income ratio (excluding trading gains) improved to 70.16% in Q2 FY27 from 70.73% in Q1 FY27.
  • Core operating profit, excluding trading gains, increased 38.5% YoY to ₹2,527 crore.

Asset quality

  • Gross NPA (GNPA) stood at 1.32% and Net NPA at 0.40%.
  • Credit cost, measured as a percentage of average assets, fell to 1.01%.

FCNR(B) mobilisation and cost advantage

  • The Bank mobilised ₹34,390 crore (approximately US$3.6 billion) of FCNR(B) deposits in Q2 FY27, despite having no overseas branches, subsidiaries, or representative offices.
  • These deposits are predominantly 3‑to‑5‑year tenor, providing structural liquidity for the coming years.
  • The fully‑loaded cost of FCNR(B) deposits, including PSL benefits, is about 1% lower than the cost of raising comparable domestic fixed deposits.
  • FCNR mobilisation is expected to boost NII, PAT, EPS and RoE, although it is optically NIM‑dilutive because the balance sheet expanded by ₹24,885 crore as loans were extended against FCNR(B) deposits.

International rating

  • S&P Global Ratings assigned the Bank an investment‑grade long‑term rating of ‘BBB‑’.

Management commentary

  • MD & CEO Mr. V. Vaidyanathan said the Bank’s PAT crossed the ₹1,000‑crore mark for the second consecutive quarter, highlighted the new investment‑grade rating, and emphasized the lower Opex growth relative to income, the improving cost‑to‑income ratio, and the strategic benefit of the large FCNR(B) mobilisation in a rising‑interest‑rate environment.

Bank overview

  • Vision: to build a world‑class bank founded on ethical, digital, and social‑good principles.
  • Scale: serves over 40 million customers; total customer business of ₹6,88,328 crore (US$72.0 billion), comprising deposits of ₹3,41,415 crore (US$35.7 billion) and loan assets of ₹3,46,913 crore (US$36.3 billion). Customer deposits grew 26.9% YoY and loan assets 30.1% YoY.
  • Reach: operates in over 60,000 cities, towns and villages through about 1,200 branches and digital channels.
  • Services: universal banking covering retail, MSME, rural, startups, corporate, cash management, credit cards, wealth management, government banking, working capital, trade finance and treasury.
  • Digital platform: cloud‑native, API‑led micro‑services architecture supported by data, analytics and AI.
  • Social impact: over 40 million lives impacted, 3.6 million women entrepreneurs, 7.5 million lifestyle‑improvement loans, 2.5 lakh electric 2W/3W vehicles, 2.7 lakh water‑sanitation‑hygiene loans, 2 million livelihood (cattle) loans, and 300,000+ SMEs financed.
  • Customer‑friendly initiatives: waived fees on 36 essential savings‑account services, the first Indian bank to do so.
  • Governance: adheres strictly to regulatory guidelines and maintains high corporate‑governance standards.
  • Shareholder goal: deliver a consistent ROE of 16%+.
  • Employee culture: merit‑based, with healthy compensation and growth opportunities.

Cautionary statement

  • The release contains forward‑looking statements based on assumptions about the Bank’s strategies and the operating environment. Actual results may differ materially due to economic, political, interest‑rate, market‑volatility, regulatory and policy risks, among others. The Bank does not undertake any obligation to update these statements.

Disclaimer

  • The press release is provided under an arrangement with NRDPL; PTI assumes no editorial responsibility.