IDFC First Bank Q1 Results: Profit shoots up 132% YoY to record Rs 1,075 crore; NII jumps 21%

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Net interest income (NII) rose 21.1% year on year to Rs 5,972.3 crore from Rs 4,933 crore in the corresponding quarter last year.

The bank's net interest margin (NIM) improved to 5.96% in Q1 FY27 from 5.71% in Q1 FY26, an increase of 25 basis points. On a sequential basis, NIM rose 3 basis points.

However it must be noted that the lender received claims of Rs 514.8 crore under the CGFMU scheme against MFI portfolio, it disclosed in a regulatory filing.

Asset quality also improved during the quarter. Gross non-performing assets (NPA) declined to 1.51% as of June 30, 2026, from 1.97% a year earlier, an improvement of 45 basis points. On a quarter-on-quarter basis, gross NPA improved by 10 basis points.

Deposits and borrowing

Customer deposits increased 16.6% year on year to Rs 2.99 lakh crore as of June 30, 2026, from Rs 2.56 lakh crore a year earlier. On a quarter-on-quarter basis, deposits grew 5.3%.## Loans and advances

Loans and advances, including credit substitutes, rose 20.6% year on year to Rs 3.05 lakh crore as of June 30, 2026, from Rs 2.53 lakh crore a year earlier. On a quarter-on-quarter basis, the book grew 5.2%, driven primarily by growth in mortgage, vehicle, corporate and consumer loans.The retail, agriculture and MSME (RAM) book increased 18.2% YoY to Rs 2.41 lakh crore from Rs 2.03 lakh crore, while growing 3.8% sequentially.

IDFC Bank Q1 management commentary

The lender said it is focused on building a high-quality institution with strong governance standards and is witnessing healthy business momentum.He said asset quality continued to improve, with gross NPA at 1.51% and net NPA at 0.44%, while provisions as a percentage of loans also continued to decline. During the quarter, the bank received a CGFMU claim of Rs 515 crore and, on a prudent basis, created a provision of Rs 515 crore to account for any potential impact from monsoon conditions or fuel price volatility during the rest of the year.

Vaidyanathan said investments made in building the bank are beginning to translate into operating leverage, helping lift PAT to Rs 1,075 crore in Q1 FY27. Return on assets (ROA) also crossed 1%.

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