IDFC First Bank reported strong Q2FY27 earnings with net profit rising sharply to ₹1,044.6 crore compared to ₹352.3 crore last year, marking a significant improvement. Net interest income grew 21% to ₹6,184.5 crore from ₹5,112.6 crore, reflecting healthy loan growth. Operating profit also increased 35% to ₹2,538 crore against ₹1,880 crore in the same quarter last year, showcasing improved efficiency.
Asset quality strengthened further as gross NPA fell to 1.32% from 1.51% sequentially, while net NPA declined to 0.40% from 0.44%. Provisions stood at ₹1,137 crore, slightly lower than ₹1,144 crore in the previous quarter and down from ₹1,451.8 crore a year ago, indicating better risk management.
During the quarter, the bank mobilised a substantial ₹34,390 crore of FCNR(B) deposits, boosting its funding base. However, net interest margin (NIM) slipped to 5.58% from 5.90% in the prior quarter. The decline was attributed to expansion in average earning assets, driven by FCNR(B)-backed loans.
Overall, the bank delivered strong profitability, improved asset quality, and robust deposit mobilisation, though margin pressure was visible due to balance sheet expansion. The results highlight IDFC First Bank’s ability to sustain growth momentum while managing risks effectively, positioning it well for future performance despite near-term NIM challenges.