IDFC First Bank Net Profit Surges To 1,045 Crore Rupees In Second Quarter

IDFC First Bank reports a 196.5 percent year-on-year jump in net profit to 1,045 crore rupees for the second quarter ending September 30, 2026. Lower provisions and better asset quality drive this growth.

Financial Growth

Net interest income climbs 21 percent to 6,184 crore rupees. Total deposits increase by 25.9 percent to reach 3,48,583 crore rupees. Loans and advances grow 30.1 percent to 3,46,913 crore rupees, while credit growth stands at 22.2 percent when excluding FCNR(B)-backed loans. Total provisions drop to 1,137 crore rupees from 1,452 crore rupees a year earlier.

Asset Quality

Gross non-performing assets fall to 4,467 crore rupees from 4,841 crore rupees. Net non-performing assets edge down to 1,334 crore rupees from 1,345 crore rupees.

Foreign Deposits

The lender mobilises 34,390 crore rupees in FCNR(B) deposits during the quarter without having any physical branch, subsidiary or representative office outside India. Managing Director and CEO V. Vaidyanathan states that raising over 34,000 crore rupees provides structural liquidity for three to five years, which helps during rising interest rates. The fully loaded cost of these deposits is about one percent lower than raising similar funds in the domestic market.

Context

Banks rely on diverse funding sources and strict asset quality management to maintain steady profits. Lower bad loans reduce the money lenders must set aside as provisions, directly boosting their reported earnings.