The lender’s total interest income rose nearly 11% to ₹9,936.8 crore for the July-September quarter, compared to ₹8,956.9 crore in Q2 FY25. Net Interest Income (NII) increased by 6.78% to ₹5,113 crore, up from ₹4,788 crore in the corresponding period of the previous year. These figures underscore robust lending operations and effective interest management.
Asset Quality Remains Stable
IDFC First Bank’s gross non-performing assets (NPAs) stood at 1.86%, slightly down from 1.92% a year ago, while net NPAs were maintained at 0.52%. V. Vaidyanathan, MD & CEO, noted that the bank’s asset quality has remained resilient for over a decade, with the microfinance sector stress largely behind them.
Deposit and Loan Growth
The bank serves 35 million customers, with a total customer business of ₹5,35,673 crore. Customer deposits rose 23.4% YoY to ₹2,69,094 crore, while loans and advances grew 19.7% YoY to ₹2,66,579 crore. This demonstrates strong customer confidence and effective balance sheet expansion.
Operational Efficiency and Outlook
Operational expenditure grew 11.8% in H1 FY26, lower than the 21.6% growth in total business, indicating improving operating leverage. The bank expects cost of funds to decrease, supporting further profitability. Vaidyanathan emphasized sustaining these trends to continue delivering consistent shareholder value.
Conclusion
IDFC First Bank’s Q2 FY26 results highlight strong financial health, robust revenue growth, stable asset quality, and operational efficiency. These figures position the bank well to capitalize on future opportunities and maintain sustainable growth. Investors and market analysts will closely watch the bank’s performance as it navigates the evolving financial landscape.