IDFC First Bank Q2 Results: Strong Profit Growth Driven by Core Banking Strength
IDFC First Bank reported exceptional second-quarter results for the financial year 2026, demonstrating robust growth across key financial metrics. The private sector lender’s standalone profit after tax (PAT) surged by an impressive 75.6% year-on-year, reaching Rs 352 crore compared to Rs 201 crore in the same quarter last year. This remarkable IDFC First Bank Q2 results performance reflects the bank’s strengthening core franchise and improved operational efficiency.
IDFC First Bank Q2 Results Show Strong NII Growth
The IDFC First Bank Q2 results revealed that net interest income (NII) grew by 6.8% year-on-year to Rs 5,113 crore, up from Rs 4,788 crore in the corresponding period of the previous fiscal year. This growth in NII demonstrates the bank’s ability to expand its core interest-earning business despite challenging market conditions. The IDFC First Bank Q2 results also showed that fee and other income increased by 13.2% to Rs 1,836 crore, indicating diversified revenue streams.
Asset Quality Remains Stable in IDFC First Bank Q2 Results
The IDFC First Bank Q2 results highlighted improved asset quality metrics, with gross non-performing assets (GNPA) declining to 1.86% from 1.97% in the previous quarter. Net NPA stood at 0.52% as of September 30, 2025. Managing Director and CEO V Vaidyanathan emphasized that “the stress in the MFI business was an MFI industry issue and looks like it is behind us”. The bank’s microfinance portfolio decreased by 41.6% year-on-year, now representing just 2.7% of funded assets.
IDFC First Bank Q2 Results: Deposit Growth Powers Performance
One of the standout features of the IDFC First Bank Q2 results was the exceptional deposit growth. Customer deposits rose 23.4% year-on-year to Rs 2,69,094 crore. More impressively, CASA deposits grew by 26.8% to Rs 1,38,583 crore, pushing the CASA ratio to 50.07% for the first time. This milestone in the IDFC First Bank Q2 results reflects improved funding stability and a stronger retail deposit franchise. The bank’s cost of funds declined by 23 basis points to 6.23%, supporting margin sustainability.
Business Growth Highlights in IDFC First Bank Q2 Results
The IDFC First Bank Q2 results showed that total customer business increased by 21.6% year-on-year to Rs 5,35,673 crore. Loans and advances grew 19.7% to Rs 2,66,579 crore, with 94% of incremental growth coming from safer segments including mortgage, vehicle, consumer, business banking, MSME, and wholesale loans. The bank issued 4 million credit cards during the quarter, while private wealth management assets under management grew 28% to Rs 54,693 crore.
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Disclaimer: This article is for educational purposes only and should not be considered as financial advice. Investors are advised to conduct their own research or consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
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