IDFC First Bank Q2 Results: Standalone PAT soars 75% YoY, NII rises 7%

IDFC Bank reported its second quarter results for FY2026, during which the bank witnessed a 75.5% year-on-year increase in its standalone net profit to Rs 352.31 crore, compared to Rs 200.69 crore in Q2FY26. Moreover, the bank’s net interest income (NII) rose 6.8% year-on-year.

The NII was reported at Rs 5,112.57 crore for the said quarter, against Rs 4,788 crore in the same period a year ago.

IDFC Bank’s net interest margin (NIM) fell 59 basis points year-on-year to 5.59%, compared to 6.18% a year ago and 5.71% in the previous quarter.

The bank’s gross NPA ratio fell by 6 basis points to 1.86%, while net NPA rose by 4 basis points to 0.52% year-on-year.

Further, IDFC Bank reported a 21.6% year-on-year increase in total customer business, which rose to Rs 5,35,673 crore as on September 30, 2025, compared to Rs 4,40,640 crore a year ago. Loans and advances rose 19.7% year-on-year to Rs 2,22,613 crore from Rs 2,66,579 crore.

IDFC Bank’s customer deposits rose 23.4% year-on-year to Rs 2,69,094 crore as on September 30, 2025, from Rs 2,18,026 crore a year earlier.

Meanwhile, CASA deposits grew 26.8% year-on-year to Rs 1,38,583 crore. The CASA ratio improved by 119 basis points to 50.07%, compared to 48.88% in the same quarter last year. The bank’s financing costs fell by 23 basis points year-on-year to 6.23%.

“The stress in the MFI sector has been a problem in the MFI sector and it seems that this is behind us. Apart from MFI, the Bank’s asset quality has always been stable through cycles for over a decade and remains so, with a gross NPA of 1.86% and a net NPA of 0.52% as of September 30, 2025. As for the cost of funds, we expect it to decline from now on descend. The bank is witnessing improving operating leverage. In FY25, total business, i.e. loans and customer deposits, grew 22.7% year-on-year, while operating expenses increased 16.5% year-on-year. Subsequently, total operations grew 21.6% YoY in the first half of FY26, while operating costs grew 11.8% YoY increased. We hope to continue this trend,” said V Vaidyanathan, MD and CEO, ISFC First Bank.

On Friday, shares of IDFC First Bank closed flat at Rs 71.91 on the BSE.

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