IDFC First Bank's Q1 results: Profit down 32% to ₹463cr
What's the story
IDFC First Bank has reported a 32% year-on-year fall in its profit after tax (PAT) for the first quarter of fiscal year 2026. The bank's PAT stood at ₹463 crore. However, on a quarter-on-quarter basis, the PAT saw a significant growth of 52.1%. The bank also witnessed a growth in net interest income (NII), which rose by 5.1% to ₹4,933 crore during this period.
Financial performance
NIM on AUM decreases by 24bps QoQ
IDFC's net interest margin (NIM) on assets under management (AUM) decreased by 24 basis points QoQ, from 5.95% in Q4 FY25 to 5.71% in Q1 FY26. This was largely due to repo rate changes, a shift in the asset mix including a sharp fall in the micro-finance segment, and also lower investment yields. Operating profit (excluding trading gains) also fell by 6.2% YoY but rose by 7.8% sequentially during this period.
Deposit growth
Customer deposits grew by 25.5% YoY
For the quarter ending June 30, 2025, IDFC First Bank reported strong growth in its deposit base. Customer deposits grew by 25.5% YoY to ₹2,56,799 crore from ₹2,04,572 crore a year ago. Retail deposits also saw a significant increase of 24.5% to ₹2,04,222 crore, while CASA deposits surged by an impressive 30.2% to ₹1,27,158 crore during this period.