NIIs in the first quarter of last financial year Rs. 4,695 crore is comparable. However, based on the quarter-quarter, the stomach increased by 52.1%.
Bank’s net interest margin (NIM) on AUM fell to 24 basis points quarter-on-quarters, Q4 fell from 95.9595% to 5.71% in FY26 in FY26. This reduction was mainly due to the impact of repo rate changes, changes in asset mixtures, a sharp decrease in microfinance segment and lower investment yields.
Operating Perating Profit (excluding trading gains) decreased by 6.2% Yoy, which is Rs. 1,858 crore to Q1 fiscal year 26 has increased to Rs 1,744 crore. However, on a gradual basis, it increased by 7.8%.
The bank recorded a strong growth in its deposit base in the quarter ended June 30, 2025. Customer deposits cost Rs. Compared to 2,04,572 crore, an annual basis increased by 25.5% to Rs. 2,56,799 crore.
Living events
Retail deposits increased by 24.5% to Rs. 2,04,222 crore, while CASA deposits increased by 30.2% to Rs. 1,27,158 crore. The CASA ratio improved by 46.6% in the same period last year. Retail deposits are up to 80% of the total customer deposits by the end of the quarter.
IDFC First Bank reported a stable asset quality profile for the quarter ended June 30, 2025, yet faced growing offenses in the microfinance sector. The bank is closely monitoring its microfinance portfolio, while the provisions of the rest of the book remain stable.
Gross NPA was 1.97% by June 30, 2025, slightly higher than 1.87% in the previous quarter. Net NPA was at 0.55% compared to 0.53% of March 31, 2025. The total NPA of Retail, Rural and MSME Book has increased to 1.82% than 1.70% respectively.
IDFC First Bank increased the loan and advances by 21%, which was Rs. 2,53,233 crore. Growth was mostly driven by mortgage loan, vehicle loan, business banking, MSME loan and wholesale loans, which together with the% 5% of the total extra loan growth.
In the retail, rural and MSME segment, 17.4% of the yoy increased to Rs. 2,03,954 crore. Meanwhile, the bulk book has significantly increased by 38.6%, which is Rs. 35,564 crore increased to Rs. 49,279 crore.
On the other hand, microfinance portfolio has dropped.
The IDFC First Bank paid Rs. Total provisions of Rs 1,659 crore were registered, mainly due to slippers in the microfinance segment. Except for microfinance and legacy infrastructure toll account, the credit price for the overall loan book was 2% in FY 26, which was more than 1.8% in the fiscal year, mostly due to seasonal.
The bank maintained a prudent approach and did not draw its 315 crore microfinance provision during the quarter. In addition, additional distributions in the microfinance segment are insured by CGFMU, with 72% outstanding portfolio covered on June 30, 2025.
The IDFC First Bank has registered a capital adequacy ratio (CAR) of 15.01% for Q1 FY26, including a normal equity tier-I (CET-I) ratio of 12.80% with a normal equity tier-I (CET-I) ratio by June 30, 2025.
Rs. After the proposed capital increase of Rs 7,500 crore and equity conversion, the ratio of CRAR and CET -1 is estimated to increase by 17.60% and 15.38% on the basis of Q1 FY26 financial.
The bank’s managing director and CEO informed V Vaidyanath that the bank’s margin was reduced as it passed on the benefits of the repo rate of qualified OROW leaders and asset mixing changes.
Nevertheless, the word will take a year to re -represent the deposits widely. Therefore, by H2FY26, the margin is likely to be better.
Also, through H2 FY 26, the bank expects that the MFI issue should be behind it. The bank also emphasized that its customer’s franchise is strong and all is all, it is in good condition for the future.
On Friday, IDFC First Bank shares were down 3% on BSE. Closed at 70.70.
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