Results - Analysis
IDFC First Bank As on : 26-Apr-26  08:35

IDFC First Bank has reported 5% growth in net profit at Rs 318.94 crore for the quarter ended March 2026 (Q4FY2026). Net Interest Income (NII) increased 16% while the core fee income of the bank also improved 21% in Q4FY2026. The Net Interest Margin (NIM) of the bank was healthy at 5.93% in Q4FY2026 compared to 5.95% in the corresponding quarter of previous year.

The bank has created full provision for fraud incident amounting to Rs 646 crore in Q4FY26 (Rs 483 crore post-tax). During Q4 FY26, the Bank sold equity shares of a stressed power company resulting into a realized loss of Rs 274 crore which impacted treasury income, while the same has led to provision release of the same amount reducing the provision expenses for the bank. In Q4FY26, tax line includes income tax refund of Rs 174 crore on account of a favourable income tax order.

On business front, the business growth is strong at 18% at end March 2026, while moderated from 22% at end December 2025. The advances increased 20%. The CASA ratio of the bank has increased to 49.8% at end March 2026 from 46.9% at end March 2025.

NII growth improves on healthy NIM: Interest income increased 12% to Rs 10552.77 crore, while interest expenses moved up 8% to Rs 4875.58 crore in Q4FY2026. NII improved 16% to Rs 5677.19 crore in Q4FY2026.

Margins improve: The bank has shown 45 bps YoY decline in cost of deposits to 5.93%. Thus, the NIM has eased 2 bps YoY to 5.93%, while rose 17 bps qoq to 5.93% in Q4FY2026.

Healthy growth in the core fee income: The non-interest income of the bank declined 14% to Rs 1630.04 crore in Q4FY2026. Bank has posted strong 21% growth in core fee income to Rs 2063 crore, while the treasury segment recorded losses of Rs 159 crore in Q4FY2026.

Expense ratio rises: The operating expenses of the bank increased 12% to Rs 5602.69 crore, as other expenses moved up 34% to Rs 4654.44 crore, while employee expenses rose 4% to Rs 1594.25 crore in Q4FY2026. Cost to income ratio deteriorated to 76.7% in Q4FY2026 compared with 73.4% in Q4FY2025. Operating Profit fell 6% to Rs 1704.54 crore.

Provisions and contingencies decline: The bank has shown 40% decline in provisions to Rs 869 crore.

PBT increased 131% to Rs 835.30 crore in Q4FY2026. However, PBT declined 48% to Rs 189.3 crore after providing for fraud incident with provision of Rs 646 crore. The bank has reversed tax provisions of Rs 129.64 crore helping Net Profit to increase 5% YoY to Rs 318.94 crore in Q4FY2026.

Asset quality improves: The bank has improved asset quality in Q4FY2026.

The fresh slippages of loans stood at Rs 1777 crore in Q4FY2026 compared with Rs 2092 crore in previous quarter and Rs 2175 crore in the corresponding quarter last year.

The recoveries and upgradations of NPAs stood at Rs 621 crore, while the write-off of loans was at Rs 1211 crore in Q4FY2026.

Provision coverage ratio was steady at 70.46% at end March 2026 compared to 69.08% a quarter ago and 72.30% a year ago.

The capital adequacy ratio of the bank stood at 15.6% with Tier I ratio at 13.7% at end March 2026.

The risk weighted assets of the bank has increased 20% YoY to Rs 318354 crore end March 2026,

Asset Quality Indicators: IDFC First Bank
'	Mar-26	Dec-25	Sep-25	Jun-25	Mar-25	Variation
						QoQ	YoY
Gross NPA (Rs Crore)	4558.52	4614.14	4840.87	4867.46	4433.58	-1	3
Net NPA (Rs Crore)	1346.44	1426.91	1345.35	1346.07	1229.92	-6	9
% Gross NPA	1.61	1.69	1.86	1.97	1.87	-8	-26
% Net NPA	0.48	0.53	0.52	0.55	0.53	-5	-5
% PCR	70.46	69.08	72.20	72.30	72.30	138	-184
% CRAR - Basel III	15.60	16.22	14.34	15.01	15.48	-62	12
% CRAR - Tier I - Basel III	13.73	14.23	12.27	12.80	13.17	-50	56
Variation in basis points for figures given in percentages and in % for figures in Rs crore

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Business Highlights:

Business growth healthy: The business of the bank has increased at a slower pace but remained healthy at 18% YoY to Rs 584753 crore end March 2026. Advances growth eased to 20% to Rs 290278 crore and deposits growth moderated to 17% to Rs 294475 crore at end March 2026. With the faster growth in advances, the credit to deposit ratio increased to 98.6% at end March 2026 from 96.0% at end March 2025.

CASA deposits ratio improves yoy: The CASA deposits of the bank increased 24% YoY to Rs 146650 crore at end March 2026. The CASA ratio improved to 49.8% at end March 2026 compared to 46.9% at end March 2025, while declined from 51.6% at end December 2025. The term deposits have increased 10% to Rs 147825 crore end March 2026.

Healthy loan growth: Within the loan book, the retail loans increased 21% YoY to Rs 171459 crore at end March 2026, while credit to agriculture declined 2% to Rs 24146 crore and MSME credit increased 31% to Rs 22723 crore. The corporate credit has also increased 23% to Rs 71950 crore end March 2026. The share of retail, agriculture and MSME (RAM) eased to 75.2% at end March 2026 compared to 75.8% at end March 2025.

Investment book of the bank increased 7% YoY to Rs 85966 crore at end March 2026.

Branch expansion: The bank has added 81 branches in Q4FY2026, taking overall tally to 1147 branches and 1216 ATM`s end March 2026.

Book value of the bank stood at Rs 54.7 per share at end March 2026, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 53.1 per share at end March 2026.

Financial Performance FY2026:

Bank has posted 7% increase in net profit to Rs 1636.36 crore in the year ended March 2026 (FY2026). The net interest income increased 10% to Rs 21215.27 crore, while non-interest income moved up 12% to Rs 7873.29 crore, leading net total income to increase 11% to Rs 29088.56 crore in FY2026. The operating expenses increased 12% to Rs 21231.20 crore, while provision and contingencies dipped 2% to Rs 5378.55 crore. PBT increased 30% to Rs 2478.81 crore in FY2026. However, PBT declined 4% to Rs 1832.81 crore after providing for fraud incident with provision of Rs 646 crore. The cost-to-income ratio rose to 73.0% in FY2026 compared to 71.8% in FY2025. An effective tax rate eased to 10.7% in FY2026 compared to 19.7% in FY2025. The net profit has increased 7% to Rs 1636.36 crore in FY2026

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IDFC First Bank: Results
Particulars	2603 (3)	2503 (3)	Var %	2603 (12)	2503 (12)	Var %
Interest Earned	10552.77	9412.94	12	40548.82	36501.49	11
Interest Expended	4875.58	4505.78	8	19333.55	17209.52	12
Net Interest Income	5677.19	4907.16	16	21215.27	19291.97	10
Other Income	1630.04	1895.41	-14	7873.29	7021.71	12
Net Total Income	7307.23	6802.57	7	29088.56	26313.68	11
Operating Expenses	5602.69	4990.96	12	21231.20	18898.83	12
Operating Profits	1704.54	1811.61	-6	7857.36	7414.85	6
Provisions & Contingencies	869.24	1450.47	-40	5378.55	5514.73	-2
Profit Before Tax	835.30	361.14	131	2478.81	1900.12	30
EO	-646.00	0.00	-	-646.00	0.00	-
PBT after EO	189.30	361.14	-48	1832.81	1900.12	-4
Provision for tax	-129.64	57.06	LP	196.45	375.27	-48
PAT	318.94	304.08	5	1636.36	1524.85	7
EPS*(Rs)	3.7	1.7	'	2.6	2.1	'
Equity	8602.2	7322.4	'	8602.2	7322.4	'
Adj BV (Rs)	53.1	50.1	'	53.1	50.1	'
* EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs crore
Source: Capitaline Corporate Database

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