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Sat, 24 Oct 2026
DevelopingEarnings

IDFC First Bank Q2 FY27 profit rises to Rs 1,045 crore from Rs 352 crore a year earlier

Provisions fell 21.7% and core operating profit rose 38.5% year on year; the bank says loans against new FCNR(B) deposits enlarged its balance sheet and lowered its net interest margin.

By AI markets desk·Sources: 3 sources·Published ·AI-generated·2 min read
Key facts
  • Profit after tax · Q2 FY271,045 Rs crore Rs 352 crore in Q2 FY26
  • Core operating profit (excluding trading gain) · Q2 FY272,527 Rs crore Rs 1,825 crore in Q2 FY26
  • Provisions · Q2 FY271,137 Rs crore Rs 1,452 crore in Q2 FY26
  • Net interest income · Q2 FY276,184 Rs crore Rs 5,113 crore in Q2 FY26
  • Total deposits · 30 September 2026348,583 Rs crore Rs 276,771 crore a year earlier
Bridge

From operating income to profit after tax, Q2 FY27 (Rs crore); core operating profit excludes trading gains

  1. Operating income8,480 Rs crore
  2. Operating expense (leaves PPOP of Rs 2,539 crore)−5,942 Rs crore
  3. Provisions (leaves profit before tax of Rs 1,402 crore)−1,137 Rs crore
  4. Tax−357 Rs crore
  5. Profit after tax1,045 Rs crore

Source: IDFC First Bank investor presentation, Q2 FY27, Quarter ended 30 September 2026.

IDFC First Bank's profit after tax was Rs 1,045 crore in the second quarter of fiscal 2027, ended 30 September 2026, against Rs 352 crore a year earlier and Rs 1,075 crore in the first quarter, a 2.8% sequential fall, the bank's investor presentation shows.

Fee and other income rose 24.5% year on year to Rs 2,285 crore from Rs 1,836 crore, and operating expense rose 16.0%. Net interest income was Rs 6,184 crore, against Rs 5,113 crore a year earlier, and core operating profit, the bank's measure excluding trading gains, rose 38.5% to Rs 2,527 crore from Rs 1,825 crore. Provisions fell 21.7% to Rs 1,137 crore from Rs 1,452 crore and include Rs 100 crore of standard asset provisions on FCNR(B)-backed loans. Credit cost was 1.01% of average total assets in the quarter.

FCNR(B) loans lift income but dilute the margin, the bank says

The bank mobilised Rs 34,390 crore, about US$3.6 billion, of FCNR(B) deposits from non-resident Indian customers in the quarter, the presentation says, and its International Banking Unit extended Rs 24,885 crore of loans against them. The net interest margin was 5.58% in the second quarter, against 5.90% in the first quarter excluding interest on an income tax refund. The FCNR(B) deposits add to net interest income, profit, return on equity and earnings per share, but lower the margin percentage because they enlarge the balance sheet, the presentation says.

Total deposits rose 25.9% to Rs 348,583 crore from Rs 276,771 crore a year earlier, including the FCNR(B) deposits; customer deposits excluding them grew 14.1%. Total loan assets, including credit substitutes, rose 30.1% to Rs 346,913 crore, or 20.8% excluding FCNR(B)-backed loans (net of IBPC; the release's gross figure is 22.2%), the presentation shows. The average CASA ratio was 48.4% in the quarter, against 50.1% in the first quarter and 48.6% a year earlier; the press release attributes the decline from 50.1% mainly to the FCNR(B) deposits.

Asset quality and capital
  • Gross NPA ratio1.32%Down 54 bps year on year
  • Net NPA ratio0.4%Down 13 bps year on year
  • Total capital adequacy ratio (CRAR)14.67%16.82% at 30 September 2025
  • CET-1 ratio13%14.75% at 30 September 2025

Source: IDFC First Bank investor presentation, Q2 FY27, 30 September 2026.

The bank's total capital adequacy ratio was 14.67% at 30 September 2026, against 16.82% a year earlier, the presentation shows. S&P Global Ratings assigned the bank its first international rating, an investment-grade long-term rating of BBB-, the release says. The board also approved S. Ganesh Kumar, an independent director, as part-time non-executive chairperson from 10 May 2027, subject to approval of the Reserve Bank of India and other regulatory approvals. The results are unaudited.