NII rises 21.1% to ₹5,972.3 crore as asset quality improves sequentially in Q1 FY27
Key Takeaways
- IDFC First Bank’s net profit rose to ₹1,075 crore in Q1 FY27 (April–June 2026), up over 132% from ₹463 crore in Q1 FY26, per the bank’s regulatory filing.
- Net Interest Income (NII) grew 21.1% year-on-year to ₹5,972.3 crore from ₹4,933 crore.
- Gross NPA improved to 1.51% from 1.61% sequentially; Net NPA eased to 0.44% from 0.48%.
- Provisions fell to ₹1,144 crore from ₹1,659 crore in the year-ago quarter (Q1 FY26), aided by a ₹514.82 crore CGFMU claim receipt from the NCGTC.
- Loans and advances grew 20.6% YoY (+5.2% QoQ) to ₹3,05,488 crore; deposits rose 17.7% YoY (+5.9% QoQ) to ₹3,11,874 crore. CASA ratio hit a multi-quarter high of 50.8%, up from 48.0% a year ago.
- Shares closed the previous session 1.3% higher at ₹80.95, though the stock remains down 5.4% year-to-date.
Private sector lender IDFC First Bank on Saturday, July 25, reported its financial results for the quarter ended June 30, 2026 (Q1 FY27), with net profit more than doubling to ₹1,075 crore from ₹463 crore in the corresponding quarter last year, the bank said in its regulatory filing.
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Income and Margins
Net Interest Income (NII) for the quarter rose 21.1% year-on-year to ₹5,972.3 crore, compared with ₹4,933 crore in Q1 FY26, according to the filing.
Asset Quality Improves
The lender’s asset quality strengthened sequentially. Gross non-performing assets (GNPA) contracted to 1.51% as of June 30, 2026, from 1.61% in the March 2026 quarter. Net NPA similarly eased to 0.44% from 0.48% quarter-on-quarter, the bank said.
Provisions Decline, Aided by CGFMU Recovery
Provisions and contingencies for Q1 FY27 stood at ₹1,144 crore, down from ₹1,659 crore in the year-ago quarter (Q1 FY26), the filing showed. The decline was partly supported by ₹514.82 crore received under the Credit Guarantee Fund for Micro Units (CGFMU) scheme from the National Credit Guarantee Trustee Company (NCGTC), which was booked as a write-back under provisions during the quarter, the bank disclosed.
Loan Book and Deposits Expand
Separately, the bank’s business update for the quarter showed loans and advances grew 20.6% year-on-year to ₹3,05,488 crore, up 5.2% sequentially, while total deposits rose 17.7% YoY to ₹3,11,874 crore, up 5.9% quarter-on-quarter.
CASA deposits stood at ₹1,58,563 crore, up 24.7% YoY and 8.1% sequentially, lifting the CASA ratio to 50.8%, a multi-quarter high, up from 49.8% in the March 2026 quarter and 48.0% in the year-ago June 2025 quarter. The credit-deposit ratio moderated to 95.5%, according to the bank’s disclosure.
Stock Price Action
Shares of IDFC First Bank ended the previous session 1.3% higher at ₹80.95 apiece. Despite the gain, the stock remains down 5.4% year-to-date and trades below its 52-week high of ₹87, within a broader 52-week range of ₹58.08–₹87.
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NiftyTrader Desk View
| Stock | Key Technical Trigger | Trader View |
|---|---|---|
| IDFC First Bank | Trading near ₹80-81, within its 52-week band of ₹58.08–₹87; currently below its 50-day and 200-day moving averages of ₹84.65 and ₹83.78 respectively (Investing.com data) | Market participants are likely to track post-results management commentary on credit costs and NIM trajectory for near-term cues |
Track live institutional activity on the NiftyTrader FII-DII Tracker as market participants react to Q1 FY27 earnings across the banking sector.
Bottom Line
IDFC First Bank’s Q1 FY27 print reflects a broad-based improvement, profit growth, margin expansion, and cleaner asset quality all moved in the same direction, with the CGFMU recovery providing an additional cushion to provisions.
Sequential loan and deposit growth, alongside CASA crossing the 50% mark for the first time in recent quarters, suggests the retail-led franchise continues to scale, even as the stock’s year-to-date underperformance points to a gap between operational metrics and market pricing that investors may watch in the sessions ahead.
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SEBI Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult a registered financial advisor before making any investment decisions. Stock market investments are subject to market risks.
