IDFC First Bank Q2 profit surges 75% on higher core income, lower provisions

Provisions for the quarter fell 12.5% sequentially to ₹1,452 crore from ₹1,659 crore in Q1 FY26, primarily due to lower provisions in the microfinance book.
IDFC First Bank Q2 profit surges 75% on higher core income, lower provisions
IDFC First Bank Ltd LTP ₹73.7 | Buy Range ₹73–75 | Target ₹88.5 Upside: ~20% The bank expects margins to recover to 5.7% from Q3FY26. CASA deposits rose 26% YoY, and asset quality remains stable with 72% provision coverage.
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Published Oct 18, 2025   |   8:13 AM GMT-04
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IDFC First Bank reported a 75.4% year-on-year rise in net profit to ₹352 crore for the September quarter, up from ₹201 crore a year ago, supported by higher net interest income, lower provisioning, and a strong rise in customer deposits.


Net interest income (NII) grew 6.8% year-on-year to ₹5,112.7 crore, while gross non-performing assets improved to 1.86% from 1.97% in the previous quarter. Net NPA declined to 0.52% from 0.55%.


Provisions for the quarter fell 12.5% sequentially to ₹1,452 crore from ₹1,659 crore in Q1 FY26, primarily due to lower provisions in the microfinance book.


The bank utilised ₹75 crore from its microfinance provision buffer as stress in the MFI business eased.

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