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IDFC First Bank’s second quarter (Q2FY27) standalone net profit soared 197 per cent year-on-year (y-o-y) to ₹1,045 crore on the back of healthy growth in net interest income and other income and a decline in provisions.

The private sector bank reported a net profit of ₹352 crore in the year ago period. The Bank’s advances grew at a robust clip amid improvement in asset quality.

Net interest income (interest income less interest expended) was up 21 per cent y-o-y to ₹6,184 crore ( ₹5,113 crore in Q2FY26).

Other income, comprising commission income from non-fund based banking activities, fees, earnings from forex and derivative transactions, profit and loss (including revaluation) from investments, and recoveries from accounts previously written off, rose 24.5 per cent y-o-y to ₹2,285 crore ( ₹1,836 crore).

Net interest margin (NIM) was almost flat at 5.58 per cent in the reporting quarter (5.59 per cent). Provisions declined 22 per cent y-o-y to ₹1,137 crore ( ₹1,452 crore).

Gross non-performing assets (NPAs) position improved to 1.32 per cent of gross advances as at September-end 2026 against 1.86 per cent as at September-end 2025. Net NPAs position too improved to 0.40 per cent of net advances against 0.53 per cent.

Total deposits grew 26 per cent y-o-y to stand at ₹3,48,583 crore as at September-end 2026. Low-cost current account, savings account (CASA) deposits declined a shade to 48.4 per cent of domestic deposits as of September 30, 2026 from 48.62 per cent as of September 30, 2025. Advances rose a healthy 30 per cent y-o-y to stand at ₹3,38,929 crore as at September-end 2026.

V Vaidyanathan, MD and CEO, said, “Our PAT crossed ₹1,000 crore for the second quarter in a row, in both Q1 and Q2 FY27...Raising ₹34,390 crore ($3.6 billion) of FCNR(B) deposits has been a significant positive for the Bank. It provides us with structural liquidity of 3 to 5 years, which is particularly valuable in a rising interest-rate environment.

“The fully loaded cost of these deposits, including PSL (priority sector lending) benefits, is about 1 per cent lower than the cost of raising comparable deposits in the domestic market. Overall, Q2 FY27 was an excellent quarter, and we hope to sustain this momentum.”

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