IDFC First Bank
Elevated slippages of loans weigh on asset quality: The bank has maintained stable asset quality in Q1FY2026.
The fresh slippages of loans stood at Rs 2486 crore in Q1FY2026 compared with 2175 crore in previous quarter and Rs 1657 crore in the corresponding quarter last year. The recoveries and upgradations of NPAs stood at Rs 487 crore and the write-off of loans was at Rs 1565 crore in Q1FY2026. Provision coverage ratio was steady at 72.30% at end June 2025 compared to 72.30% a quarter ago and eased from 87.50% a year ago. The capital adequacy ratio of the bank stood at 15.0% with Tier I ratio at 12.8% at end June 2025. The risk weighted assets of the bank has increased 21% YoY to Rs 289625 crore end June 2025,| Asset Quality Indicators: IDFC First Bank | |||||||
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| Jun-25 | Mar-25 | Dec-24 | Sep-24 | Jun-24 | Variation | |
| QoQ | YoY | ||||||
| Gross NPA (Rs Crore) | 4867.46 | 4433.58 | 4399.32 | 4195.19 | 3904.20 | 10 | 25 |
| Net NPA (Rs Crore) | 1346.07 | 1229.92 | 1161.96 | 1037.61 | 1195.28 | 9 | 13 |
| % Gross NPA | 1.97 | 1.87 | 1.94 | 1.92 | 1.90 | 10 | 7 |
| % Net NPA | 0.55 | 0.53 | 0.52 | 0.48 | 0.59 | 2 | -4 |
| % PCR | 72.30 | 72.30 | 99.28 | 93.39 | 87.50 | 0 | -1520 |
| % CRAR - Basel III | 15.01 | 15.48 | 16.11 | 16.36 | 15.88 | -47 | -87 |
| % CRAR - Tier I - Basel III | 12.80 | 13.17 | 13.68 | 13.84 | 13.34 | -37 | -54 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | |||||||
Business Highlights:
Healthy business growth: The business of the bank has increased 24% YoY to Rs 518204 crore end June 2025, driven by 21% surge in advances to Rs 253233 crore. Deposits jumped 26% to Rs 264971 crore at end June 2025.
CASA deposits ratio improved: The CASA deposits of the bank increased 30% YoY to Rs 127158 crore at end June 2025. The CASA ratio improved to 48.0% at end June 2025 compared to 46.6% at end June 2024, while moved up from 46.9% a quarter ago. The term deposits have increased 23% to Rs 137813 crore end June 2025.
Strong loan growth: Loans and advances increased by 21.0% yoy to Rs 2,53,233 crore at end June 2025. The growth was primarily driven by Mortgage loans, Vehicle loans, Business Banking, MSME loans and Wholesale loans, which contributed 82% of the total YoY growth. Retail, Rural and MSME book grew by 17.4% yoy to Rs 203954 crore at June 2025. Microfinance portfolio reduced by 36.9% YoY and its proportion to overall loan book reduced from 6.3% end June 2024 to 3.3% in June 30, 2025. Wholesale book grew by 38.6% YOY from Rs 35564 crore at June 2024 to Rs 49,279 crore at end June 2025.
Investment book of the bank increased 17% YoY to Rs 86379 crore at end June 2025.
Margins improve: The bank has shown 5 bps YoY decline in cost of deposits to 6.42%. NIM has declined 52 bps YoY, while fell 25 bps qoq to 5.70% in Q1FY2026.
Branch expansion: The bank has added 14 branches in Q1FY2026, taking overall tally to 1016 branches and 1216 ATM`s end June 2025.
Book value of the bank stood at Rs 52.6 per share at end June 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 50.7 per share at end June 2025.
Quarterly Performance
NII growth ease as NIM declines: Bank has recorded 10% increase in the interest earned at Rs 9642.14 crore, while interest expenses increased 15% to Rs 4709.06 crore in Q1FY2026. NII improved 5% to Rs 4933.08 crore in the quarter ended June 2025.
Healthy growth in the core fee income, treasury income jumps: Bank has posted 9% growth in core fee income to Rs 1731 crore, while the treasury income surged 1963% to Rs 495 crore, leading to 38% jump in the overall non-interest income to Rs 2226.83 crore in the quarter ended June 2025.
Expenses ratio improves: The operating expenses of the bank increased 11% to Rs 4920.54 crore, as other expenses moved up 11% to Rs 3424.93 crore, while employee expenses increased 12% to Rs 1495.61 crore in Q1FY2026. Cost to income ratio improved to 68.7% in Q1FY2026 compared with 70.2% in Q1FY2025, helping the Operating Profit to increase 19% to Rs 2239.37 crore.
Provisions and contingencies jumps: The bank has shown 67% surge in provisions to Rs 1659.12 crore.
Effective tax rate declined to 20.3% in Q1FY2026 from 23.4% in Q1FY2025. Net Profit declined 32% YoY to Rs 462.57 crore during quarter ended June 2025.
Financial Performance FY2025:
Bank has posted 48% dip in net profit to Rs 1524.85 crore in the year ended March 2025 (FY2025). The net interest income increased 17% to Rs 19291.97 crore, while non-interest income moved up 17% to Rs 7021.71 crore, pushing up net total income by 17% to Rs 26313.68 crore in FY2025. The operating expenses increased 17% to Rs 18898.83 crore, while provision and contingencies galloped 132% to Rs 5514.73 crore, causing profit before tax to dip 51% to Rs 1900.12 crore in FY2025. The cost-to-income ratio improved to 71.8% in FY2025 compared to 72.2% in FY2024. An effective tax rate declined to 19.7% in FY2025 compared to 23.3% in FY2024. The net profit declined 48% to Rs 1524.85 crore in FY2025.| IDFC First Bank: Results | ||||||
| Particulars | 2506 (3) | 2406 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 9642.14 | 8788.60 | 10 | 36501.49 | 30322.50 | 20 |
| Interest Expended | 4709.06 | 4093.70 | 15 | 17209.52 | 13871.75 | 24 |
| Net Interest Income | 4933.08 | 4694.90 | 5 | 19291.97 | 16450.75 | 17 |
| Other Income | 2226.83 | 1619.15 | 38 | 7021.71 | 6002.00 | 17 |
| Net Total Income | 7159.91 | 6314.05 | 13 | 26313.68 | 22452.75 | 17 |
| Operating Expenses | 4920.54 | 4431.60 | 11 | 18898.83 | 16215.78 | 17 |
| Operating Profits | 2239.37 | 1882.45 | 19 | 7414.85 | 6236.97 | 19 |
| Provisions & Contingencies | 1659.12 | 994.40 | 67 | 5514.73 | 2381.65 | 132 |
| Profit Before Tax | 580.25 | 888.05 | -35 | 1900.12 | 3855.32 | -51 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 580.25 | 888.05 | -35 | 1900.12 | 3855.32 | -51 |
| Provision for tax | 117.68 | 207.40 | -43 | 375.27 | 898.81 | -58 |
| PAT | 462.57 | 680.65 | -32 | 1524.85 | 2956.51 | -48 |
| EPS*(Rs) | 2.5 | 3.6 | 2.1 | 4.2 | ||
| Equity | 7322.4 | 7478.0 | 7322.4 | 7071.3 | ||
| Adj BV (Rs) | 50.7 | 47.2 | 50.1 | 43.7 | ||
| * 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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