IDFC First Bank Q2 PAT rises 197% to ₹1,045 crore on lower provisions
The bank mobilised ₹34,390 crore in FCNR(B) deposits despite having no branch, subsidiary or representative office outside India.
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Published - October 24, 2026 08:34 pm IST - MUMBAI
Asset quality indicators showed improvement | Photo Credit: The Hindu
IDFC First Bank reported a 196.5% year-on-year (YoY) jump in net profit to ₹1,045 crore for the second quarter ended September 30, 2026, aided by lower provisions and an improvement in asset quality.
Net interest income (NII) rose 21% YoY to ₹6,184 crore, while total deposits grew 25.9% to ₹3,48,583 crore.
Loans and advances, including credit substitutes and FCNR(B)-backed loans, increased 30.1% to ₹3,46,913 crore.
Excluding FCNR(B)-backed loans, credit growth stood at 22.2%.
The bank’s total provisions declined to ₹1,137 crore during the quarter from ₹1,452 crore a year earlier, supporting profitability.
Asset quality indicators also showed improvement.
Gross non-performing assets (NPAs) fell to ₹4,467 crore from ₹4,841 crore a year ago, while net NPAs edged down to ₹1,334 crore from ₹1,345 crore.
During Q2 FY27, the bank mobilised ₹34,390 crore in FCNR(B) deposits despite having no branch, subsidiary or representative office outside India.
“Raising over ₹34,000 crore of FCNR(B) deposits has been a significant positive for the Bank.
It provides us with structural liquidity of 3 to 5 years, which is particularly valuable in a rising interest-rate environment,” said V.
Vaidyanathan, MD and CEO.
“The fully loaded cost of these deposits, including PSL benefits, is about 1% lower than the cost of raising comparable deposits in the domestic market.
Overall, Q2 FY27 was an excellent quarter, and we hope to sustain this momentum,” he added.
economy, business and finance / business (general) / banking / loans / personal finance
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