IDFC First Bank Q3 results: PAT rises 48% YoY to Rs 503 crore, NII rises 12%

Private sector lender IDFC First Bank on Saturday reported a 48% year-on-year rise in net profit to Rs 503 crore for the third quarter of FY26, compared to Rs 339 crore in the same period last fiscal.Net interest income or NII grew 12% year-on-year to Rs 5,492.4 crore, compared to Rs 4,902 crore in the corresponding quarter a year ago, IDFC First Bank said in a filing with the regulator.

In terms of asset quality, the bank’s gross non-performing asset ratio improved to 1.69% from 1.86% in the previous quarter. In the same period last year, this figure was 1.94%, according to the company. However, the net non-performing asset ratio rose slightly to 0.53% from 0.52% quarter-on-quarter.

In absolute terms, gross NPAs fell to Rs 4,614 crore, compared to Rs 4,841 crore in the previous quarter. Net NPAs increased marginally from Rs 1,345.4 crore to Rs 1,427 crore on a sequential basis.

Nearly 89% of the bank’s year-over-year growth in loans and advances was driven by the expansion of mortgage, auto, consumer, investment banking and wholesale lending, reflecting broad-based momentum across key lending segments.

The bank’s credit card portfolio continued to grow, with the number of cards used reaching 4.3 million in the third quarter of FY26. Meanwhile, the asset management industry recorded a 31% year-on-year growth with assets under management rising to Rs 58,957 crore. Provisions for the quarter fell 3.7% on a sequential basis to Rs 1,398 crore, compared to Rs 1,452 crore in the previous quarter, indicating an improvement in overall asset quality.

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Commenting on the performance, V Vaidyanathan, Managing Director and CEO, said the bank is witnessing strong business momentum across its core segments including lending, deposits, asset management and transaction banking.

He noted that asset quality has improved, with gross NPAs at 1.69% and net NPAs at 0.53% as on December 31, 2025. He added that the cost of funds is expected to decline further due to the recent revision in savings rates, which is likely to support the expansion of the bank’s lending franchise.

The bank’s NIM or net interest margin fell to 5.76% from 6% in the corresponding period of the previous financial year.

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