Financial Highlights
IDFC FIRST Bank announced unaudited results for the quarter and half‑year ended 30 September 2026. Profit after tax (PAT) for Q2 FY27 was ₹1,045 crore, representing a 196.5 % year‑on‑year increase. For the first half of FY27, PAT totaled ₹2,120 crore and return on assets (ROA) was 0.99 %.
Deposit and Funding Strength
Total customer deposits grew 25.9 % YoY and 11.8 % quarter‑on‑quarter, reaching ₹3,48,583 crore. The average current account‑saving account (CASA) ratio remained robust at 48.4 % in Q2, a slight decline from 50.1 % due to the large mobilisation of foreign currency non‑resident (FCNR‑B) deposits. During the quarter the bank mobilised ₹34,390 crore (approximately US$3.6 billion) of FCNR‑B deposits, despite having no physical presence outside India. These deposits are predominantly 3‑to‑5‑year tenors and carry a fully‑loaded cost about 1 % lower than comparable domestic fixed‑deposit funding, providing structural liquidity for the next three to five years.
Loan Growth and Asset Quality
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 interest‑bearing payable capital (IBPC). The balance sheet grew by ₹24,885 crore as loans were extended against the newly mobilised FCNR‑B funds. Asset quality remained stable, with gross non‑performing assets (GNPA) at 1.32 % and net NPA at 0.40 %. Credit cost, measured as a percentage of average assets, fell to 1.01 %.
Operating Efficiency
Operating expenses (OPEX) grew slower than income, delivering an operating leverage advantage of roughly 500 basis points YoY for two consecutive quarters. 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, rose 38.5 % YoY to ₹2,527 crore.
Rating and Management Commentary
S&P Global Ratings assigned the bank an investment‑grade long‑term rating of ‘BBB‑’, marking its debut international rating. MD & CEO V. Vaidyanathan commented that crossing the ₹1,000 crore PAT threshold for the second consecutive quarter, achieving an investment‑grade rating, and mobilising over ₹34,000 crore of FCNR‑B deposits underscore the bank’s strong operating leverage, improving cost‑to‑income dynamics, and structural liquidity advantage in a rising‑interest‑rate environment.
Bank Overview
As of 30 September 2026, IDFC FIRST Bank serves more than 40 million customers, with a total customer business of ₹6,88,328 crore ($72.0 billion), comprising deposits of ₹3,41,415 crore ($35.7 billion) and loan assets of ₹3,46,913 crore ($36.3 billion). Deposits grew 26.9 % YoY and loan assets 30.1 % YoY. The bank operates through approximately 1,200 branches and digital channels, reaching over 60,000 cities, towns, and villages. It has financed 3.6 million women entrepreneurs, 7.5 million lifestyle‑improvement loans, 250,000 electric two‑ and three‑wheelers, 270,000 water‑sanitation‑hygiene loans, 2 million livelihood loans, and more than 300,000 SMEs. The bank has waived fees on 36 essential savings‑account services, the first Indian bank to do so.
Outlook
The bank reiterates its aim to deliver a consistent return on equity of 16 %+ while maintaining high ESG scores and a focus on ethical, digital, and social‑good banking.