Earnings Review
Low provisions offset impact of fraud on IDFC FIRST Bk PAT
This story was originally published at 19:14 IST on 25 April 2026
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--IDFC First Bank Jan-Mar net profit INR 3.19 bln vs INR 3.04 bln yr ago
--Analysts saw IDFC First Bank Jan-Mar net profit at INR 2.48 bln
--IDFC First Bank Q4 total income INR 121.83 bln vs INR 113.08 bln yr ago
--IDFC FIRST Bank Jan-Mar provisions INR 8.69 bln vs INR 14.50 bln year ago
--IDFC FIRST Bank: Total impact of Chandigarh incident INR 4.83 bln
--IDFC FIRST Bk: "Reasonably certain" on no further impact of Chandigarh case
--IDFC FIRST Bank: To carry INR 1.3 bln contingency provisions into FY27
--IDFC FIRST Bank: Used INR 350 mln contingency provisions on microfin in Q4
--IDFC FIRST Bank: Credit cards in use crossed 4.5 mln in Jan-Mar
--IDFC FIRST Bank CEO: Deposit growth strong in April
--IDFC FIRST Bank: CASA ratio 49.80% on Mar 31 vs 51.64% qtr ago
--IDFC FIRST Bank Jan-Mar net interest margin 5.93% vs 5.76% qtr ago
--IDFC FIRST Bank FY26 total income INR 484.22 bln vs INR 435.23 bln yr ago
--IDFC FIRST Bank FY26 net profit INR 16.36 bln vs INR 15.25 bln yr ago
--IDFC FIRST Bank Basel-III capital adequacy ratio 15.60% on Mar 31
--IDFC FIRST Bank net NPAs 0.48% on Mar 31 vs 0.53% qtr ago, 0.53% yr ago
--IDFC FIRST Bank gross NPAs 1.61% on Mar 31 vs 1.69% qtr ago, 1.87% yr ago
--IDFC FIRST Bank: Net loans, advances INR 2.87 tln on Mar 31, up 20.4% on yr
--IDFC FIRST Bk disbursed INR 14.9 bln microfin loans Q4 vs INR 7.6 bln yr ago
--IDFC FIRST Bank to pay INR 0.25 per share dividend
--IDFC FIRST Bank: 14% of total loan book is unsecured retail credit
--IDFC FIRST Bank Jan-Mar cost of deposits 5.93% vs 6.07% qtr ago
--IDFC FIRST Bank Jan-Mar cost of funds 6%, down 11 bps on qtr
--IDFC FIRST Bank: Provision Coverage Ratio 70.46% on Mar 31
--IDFC FIRST Bank Jan-Mar net interest income INR 56.77 bln, up 15.7% YoY
By Krity Ambey
NEW DELHI – IDFC FIRST Bank reported an on-year rise in net profit in the December quarter and beat the Street's view, thanks to a sharp fall in provisions, which helped offset the impact of the fraud in accounts linked to the Haryana government at the bank's Chandigarh branch during the quarter. On a sequential basis, however, the lender's bottom line declined.
The bank's net profit rose 5% on year to INR 3.19 billion in the March quarter, compared with analysts' sharply lower expectation of INR 2.48 billion. The bank's net profit fell 37% on quarter from INR 5.03 billion in the December quarter.
Following the detection of a fraud involving Haryana government accounts at its Chandigarh branch in February, the bank paid out INR 6.45 billion to the state in claims. The post-tax hit to the bank's earnings from the fraud was INR 4.83 billion, IDFC FIRST Bank said, adding that it was "reasonably certain" that there would be no further impact.
A 40% on-year fall in provisions to INR 8.69 billion in the March quarter helped offset the impact of the fraud. The bank also utilised INR 350 million of contingency provision on the microfinance book in Jan-Mar, it said in a press release. It carried INR 1.30 billion as contingency provisions in 2026-27 (Apr-Mar), the release said.
Besides the fall in provisions, a 16% on-year increase in net interest income to INR 56.77 billion, also supported the bank's net profit for the March quarter. This took the lender's total income to INR 121.83 billion, up nearly 8% on year, in the reporting quarter. IDFC FIRST Bank's net interest margin improved 18 basis points on quarter to 5.93% as of Mar. 31. On year, the lender's margin compressed 2 bps.
The lender's asset quality improved in the March quarter, with the net non-performing ratio falling to 0.48% as of Mar. 31 from 0.53% as of Dec. 31 as well as Mar. 31, 2025. The gross non-performing asset ratio also recovered to 1.61% at the end of March from 1.69% as of Dec. 31 and 1.87% at the end of FY25. The bank's provision coverage ratio was 70.46% and capital adequacy ratio was 15.60% as of Mar. 31.
The bank's advances grew a little over 20% on year to INR 2.84 trillion as of Mar. 31. Deposits also rose 17% on year to INR 2.94 trillion, taking the current account savings account ratio to 49.80% as of Mar. 31 from 51.64% as of Dec. 31. But April started strong for deposits and the bank is confident of growing its deposit business healthily in line with past trends, Managing Director and Chief Executive Officer V. Vaidyanathan said in the press release.
The lender's cost of funds improved 11 bps on quarter to 6%. Cost of deposits also fell to 5.93% in the March quarter from 6.07% in the trailing quarter.
IDFC FIRST Bank's loan book was INR 2.90 trillion as of Mar. 31, out of which 14% constituted unsecured retail credit. The bank's microfinance loans nearly doubled in the March quarter to INR 14.90 billion from INR 7.60 billion in the corresponding quarter a year ago. Credit Cards in force crossed the 4.5-million-mark during the quarter.
The bank reported net profit of INR 16.36 billion, up 7%, for FY26 as its total income rose 11% to INR 484.22 billion. The lender's provisions for bad loans were down nearly 3% at INR 53.79 billion in the last financial year. It also declared a final dividend of INR 0.25 per share. Shares of IDFC FIRST Bank, which detailed its March quarter earnings Saturday, had ended 0.9% lower Friday, at INR 67.23 on the National Stock Exchange. End
Edited by Deepshikha Bhardwaj and Akul Nishant Akhoury
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