IDFC First Bank Q2 net profit nearly triples to ₹1,045 crore, asset quality improves

IDFC First Bank on Saturday reported a nearly three-fold year-on-year jump in net profit to ₹1,045 crore for the second quarter of FY27, compared with ₹352 crore in the corresponding period last year.

The lender’s total income rose to ₹14,218 crore in the July-September quarter from ₹11,828 crore a year earlier, while interest income increased to ₹11,922 crore from ₹9,937 crore, according to a regulatory filing.

Interest income rises as profitability strengthens

The growth in interest income contributed to the bank’s stronger quarterly performance. Total income increased by around 20.2% year-on-year, while interest income grew approximately 20% over the same period.

The bank’s net profit rose by nearly 197% compared with the September quarter of FY26, marking a significant increase in its reported bottom line.

Gross and net NPAs decline, capital adequacy improves

IDFC First Bank reported an improvement in asset quality, with gross non-performing assets (NPAs) declining to 1.32% of gross advances at the end of September 2026, compared with 1.86% a year earlier.

Net NPAs, which represent bad loans after accounting for provisions, moderated to 0.4% from 0.52% in the corresponding period last year. The decline in both gross and net NPAs points to a lower proportion of stressed loans in the bank’s portfolio.

The bank’s capital adequacy ratio also improved to 14.67% at the end of the September quarter, compared with 14.11% as of September 2025. The ratio measures a bank’s capital in relation to its risk-weighted assets and serves as an indicator of its capacity to absorb potential losses.

Bank mobilises ₹34,390 crore in FCNR(B) deposits

During the second quarter of FY27, IDFC First Bank mobilised ₹34,390 crore, equivalent to approximately $3.6 billion, in Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits.

The bank said it achieved this despite having no branch, subsidiary or representative office outside India, highlighting its digital capabilities and the trust it enjoys among customers.

FCNR(B) deposits allow eligible non-resident Indians to maintain term deposits in permitted foreign currencies, helping them avoid direct exchange-rate risk on the principal and interest when held in the same currency.

About IDFC First Bank

IDFC First Bank was formed in December 2018 through the merger of IDFC Bank and Capital First. Headquartered in Mumbai, it offers retail, wholesale and digital banking services, including savings accounts, loans, deposits, wealth management and services for businesses.