IDFC First Bank's Q4 profit up 5% YoY to ₹319cr
What's the story
IDFC First Bank has reported a 5% year-on-year increase in its standalone net profit for the March quarter of FY26. The bank's net profit stood at ₹319 crore, compared to ₹304 crore in the same period last year. The growth was mainly driven by an increase in interest income and net interest income (NII), despite a slight dip in net interest margins (NIM).
Financial performance
Interest income and NII
IDFC First Bank's interest income for the quarter under review was ₹10,553 crore, up 12% from ₹9,413 crore in the year-ago period. The bank paid an interest of ₹4,876 crore in Q4 FY26 as against ₹4,506 crore in Q4 FY25. This resulted in a 16% increase in net interest income (NII), which stood at ₹5,677.19 crore during the quarter compared to ₹4,907.16 crore last year.
Margin
Net interest margins dip slightly
Despite the growth in interest income and NII, IDFC First Bank's net interest margins (NIM) witnessed a slight decline of two basis points year-on-year. The NIM stood at 5.93% in Q4 FY26 as against 5.95% last year. This marginal dip indicates that while the bank has been able to grow its income from loans and advances, its profitability on those loans has seen a slight contraction over the past year.
Business growth
Loans and advances surge by 20%
IDFC First Bank's total customer business grew by 19% year-on-year to ₹5.75 lakh crore in the March quarter. The bank's loans and advances surged by 20% year-on-year to ₹2.90 lakh crore, while deposits also rose by over 17% year-on-year to ₹2.84 lakh crore.
Deposit
CASA deposits up by 24% YoY
IDFC First Bank's CASA deposits stood at ₹1.46 lakh crore in the January-March quarter, up 24% year-on-year but down 2.5% quarter-on-quarter. The bank's cost of funds also witnessed a year-on-year and quarter-on-quarter decline by 51bps and 11bps, respectively, to stand at 6%. These figures indicate a healthy deposit base for the bank with a declining cost of borrowing.