SYNOPSIS:
IDFC First Bank reported Rs. 5,113 crore NII in Q2 FY26, up 7 percent YoY; net profit rose 64 percent YoY to Rs. 348 crore, with CASA ratio improving to 50.1 percent amid strong deposit growth.
During Monday’s trading session, shares of one of India’s fast-growing private banks, building its UI, UX, and tech stack like a fintech, surged nearly 7 percent on the BSE, after the company reported Q2 FY26 results with a rise in the net profit by around 64 percent YoY.
At 01:11 p.m., shares of IDFC First Bank Limited were trading in green at Rs. 76.36 on BSE, up by around 6.2 percent, compared to its previous closing price of Rs. 71.91, with a market cap of Rs. 56,042.6 crores. The stock has delivered positive returns of more than 8 percent in one year, and has gained by nearly 8 percent in the last one month.
What’s the News
IDFC First Bank Limited announced the financial results for the second quarter of FY26 on Saturday, as per the latest regulatory filings with the stock exchanges. For Q2 FY26, the bank reported a net interest income (NII) of Rs. 5,113 crores, reflecting a sequential growth of around 4 percent QoQ compared to Rs. 4,933 crores in Q1 FY26, and a year-on-year marginal increase of about 7 percent from Rs. 4,788.3 crores recorded in Q2 FY25.
During the same period, net profit stood at Rs. 348 crores, indicating a fall of over 23 percent QoQ from Rs. 453.5 crores in Q1 FY26, but an impressive growth on a year-on-year basis by nearly 64 percent from Rs. 212 crores reported in Q2 FY25.
Approximately 94 percent of the Bank’s year-on-year growth in loans and advances was driven by expansion across key segments, including mortgage loans, vehicle loans, consumer loans, business banking, MSME, and wholesale lending. Additionally, the Bank’s credit card base reached 4 million cards during Q2 FY26.
As of September 2025, CASA deposits rose to Rs. 1.38 lakh crore, reflecting a robust increase of 27 percent YoY and 9 percent QoQ, while the CASA ratio improved to 50.1 percent, up 119 basis points YoY and 208 bps QoQ. The Net Interest Margin (NIM) for Q2 FY26 stood at 5.59 percent, contracting by 59 basis points YoY and 12 basis points QoQ.
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About the Bank
IDFC FIRST Bank Limited was created through the merger of IDFC Bank and Capital First on 11th December 2018, when all regulatory and legal approvals were received, announced to the public, and the new management took charge. Later effective 1st October 2024, IDFC and IDFC First Bank completed their merger after receiving all necessary approvals.
The bank provides a complete suite of banking and financial services, including retail banking, wholesale banking, digital banking, and treasury operations. During FY25, IDFC First Bank commenced overseas operations in the Offshore Banking Unit at the International Financial Service Centre Banking Unit (IBU), GIFT City, India.
As of 30th September 2025, the Bank serves 35 million customers, with a customer business of Rs. 5.35 lakh crore comprising customer deposits of Rs. 2.69 lakh crores and loans & advances of Rs. 2.66 lakh crores. Customer deposits grew 23.4 percent YoY and loans 19.7 percent YoY. We reach over 60,000 cities, towns, and villages, operate through 1,041 branches.
Written by Shivani Singh
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