IDFC First Bank earned an interest income of Rs 10,553 crore in the quarter under review, up 12% from Rs 9,413 crore reported in the year-ago period. The lender paid Rs 4,876 crore as interest in Q4FY26 versus Rs 4,506 crore in Q4FY25, recording a near 8% jump.
The net interest income or NII (which is interest earned less interest expensed) stood at Rs 5,677.19 crore in Q4FY26 compared to Rs 4,907.16 crore in the year-ago period, implying a 16% increase.
The private lender’s net interest margins (NIM) saw a 2 basis points year-on-year decline to 5.93% in Q4FY26 versus 5.95% in the year-ago period.
IDFC First Bank said the company’s total customer business grew 19% YoY and 2.2% QoQ to Rs 5.75 lakh crore in the said quarter.
Loans & deposits
The loans & advances surged 20% YoY and 4% QoQ to Rs 2.90 lakh crore in Q4FY26, while deposits also rose at a healthy pace of over 17% YoY to 2.84 lakh crore. Sequentially, there was a marginal uptick of 0.6%.
CASA deposits were reported at Rs 1.46 lakh crore in the January-March quarter, rising 24% over the same period in the last financial year, while dropping 2.5% quarter-on-quarter.Cost of funds witnessed a YoY and QoQ decline by 51 bps and 11 bps, respectively, at 6%.
Capital Adequacy — a measure of how much capital (own funds) a bank has relative to its risk-weighted assets, ensuring it can absorb losses and remain solvent — stood at 15.60% in Q4FY26, down 62 bps QoQ and up 12 bps YoY.
Other key takeaways
— The company said 87% of the YoY growth in loans is constituted by growth in mortgage loans, vehicle loans, consumer loans, business banking and wholesale loans.
— Credit Cards in force crossed 4.5 million mark during Q4-FY26.
— Wealth management Business (Private Wealth) of the bank grew by 23% YoY to cross Rs 57,000 crore.
— Provisions as a percentage of average loans reduced continuously during FY26 from 2.69% in Q1FY26 to 2.24% in Q2FY26 to 2.05% in Q3FY26 to 1.63% in Q4FY26. For full year FY26, it stood at 2.13%.
— Provisions as a % of average total assets, reduced from 1.92% in Q1FY26 to 1.18% in Q4FY26. For full year FY26, it stood at 1.52%.
— Bank has utilised Rs 35 crores of contingency provisions on MFI in Q4FY26 and carries forward Rs 130 crores into the next financial year.
Chandigarh branch fraud
Regarding the incident in Chandigarh, the bank has fully expensed out the impacted amount in Q4FY26, for which the post-tax impact is Rs 483 crores.
The company filing claimed its management is reasonably certain that no further material financial adjustments are required beyond those already recognised.
Management commentary
Commenting on the results, MD & CEO V Vaidyanathan said the asset quality of the bank remains stable. “We have always mentioned that the asset quality of all businesses continues to perform well, except for the micro-finance book, which was an issue for the entire industry in FY25 and FY26. Hence, with the micro-finance issue behind us, the GNPA and NNPA have come down to healthy levels of 1.61% and 0.48%, respectively. The provisions during Q4 FY26 have come down to the lowest level of two years, at 1.63% of loans, which is equivalent to 1.18% of assets. The first month of Q1FY27 has started strong for deposits, and the bank is confident of growing its deposit business healthily in line with past trends,” Vaidyanathan said.
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