IDFC FIRST Bank sees strong deposit growth, improved asset quality in Q2 FY26

IDFC FIRST Bank reported a 23.4% year-on-year (Y-o-Y) increase in total customer deposits, reaching INR 2.69 lakh crores, with average customer deposits growing by 24%. Retail deposits also grew strongly at 24% on an average basis and 21.4% Y-o-Y on an end-of-period basis. CASA deposits expanded by 26.8% Y-o-Y, bringing the period-end CASA ratio to 50.1%. Loans and advances increased by 19.7% Y-o-Y to INR 2.67 lakh crores, with healthy growth in mortgage, vehicle, and consumer loan segments. The bank's credit card base crossed 4 million, with the book value reaching INR 8,600 crores.

Asset quality showed sequential improvement, with gross NPA decreasing by 11 basis points to 1.86% and net NPA improving to 0.52%. The retail, rural, and MSME segment also saw a 9 basis point improvement in gross NPA to 1.73%. Net profit for Q2 FY26 stood at INR 352 crores, with H1 FY26 profit after tax at INR 815 crores, representing a 76% Y-o-Y growth driven by core income and reduced provisioning. Net interest margin on AUM was 5.59%, a 12 basis point sequential reduction, attributed to repo changes and asset mix adjustments.