Author: Nishtha Mehrotra | EQMint
Synopsis:
- IDFC First Bank reported Q2 FY27 net profit of ₹1,045 crore, up 196.5% year-on-year.
- Net interest income rose 21% to ₹6,184 crore, while asset quality improved.
- Management expects net interest margin to recover to around 5.8% by Q4 FY27.
IDFC First Bank reported a net profit of ₹1,045 crore for the September 2026 quarter, marking a 196.5% year-on-year increase. However, the sharp growth partly reflects a low base in the year-ago quarter.
Core profit after tax stood at ₹1,036 crore, rising 15.5% sequentially and indicating an improvement in underlying earnings. Net interest income (NII) increased 21% year-on-year to ₹6,184 crore.
Asset quality also improved, with gross non-performing assets at 1.32% and net NPAs at 0.40%. Credit cost stood at 1.01%.
The bank’s loan book grew 30.1%, exceeding management’s sustainable growth guidance of around 20% for loans and deposits. Meanwhile, management expects net interest margin (NIM) to recover to approximately 5.8% by Q4 FY27, supported by liquidity normalisation and the deployment of FCNR(B) deposits.
Key monitorables include the pace of margin recovery, loan growth moderation, fee-income changes and potential rural credit stress.
Source: https://sqst.in/7rA5e
Disclaimer: This article is for information purposes only and is not investment advice.
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