IDFC FIRST Bank profit jumps 52% despite microfinance retreat

IDFC FIRST Bank reported profit after tax of ₹463 crore for Q1 FY26, up 52.1% sequentially but down 32% year-on-year due to microfinance pressures and interest rate changes.

Customer deposits grew 25.5% to ₹2,56,799 crore, with retail deposits comprising 80% of the total. The loan book expanded 21% to ₹2,53,233 crore, driven by mortgage, vehicle, MSME and wholesale lending.

The bank strategically reduced its microfinance portfolio by 36.9% to ₹8,354 crore, now just 3.3% of total loans. Asset quality remained stable excluding microfinance, with provision coverage at 72.3%.