Analyst Concall
IDFC FIRST Bk sees NIM near 5.85% Q4 as cost of funds to dip
This story was originally published at 19:30 IST on 31 January 2026
Register to read our real-time news.Informist, Saturday, Jan. 31, 2026
--IDFC FIRST Bk: See NIM rising close to 5.85% in Q4 from 5.76% in Q3
--IDFC FIRST Bk: Current cost of funds only 2 bps more than mid-tier bks
--IDFC FIRST Bk: Cost of funds to be below 6% by March
--CONTEXT: IDFC FIRST Bank's mgmt comments at analyst call post Q3 earnings
By Krity Ambey and Janwee Prajapati
MUMBAI/NEW DELHI – IDFC FIRST Bank Ltd. expects its net interest margin to improve to around 5.85% in the March quarter from 5.76% in the December quarter as the lender's cost of funds is likely to decline, the bank's management said Saturday. The bank's cost of funds for the December quarter was 6.11%.
At 6.11%, the cost of funds was only 2 basis points higher than that of any mid-tier bank, IDFC FIRST Bank's management told analysts during a call after the December quarter results. The cost of funds is likely to fall below 6% by March, the management added. "We have cut our savings account rates, that full impact will come through this quarter," the bank's management said.
In the December quarter, IDFC FIRST Bank reported a net profit of INR 5.03 billion, up 48% on year, on the back of healthy growth in income and low provisions. The bank's net interest income for the December quarter rose 12% on year to INR 54.92 billion. Meanwhile, provisions for bad loans rose nearly 5% on year to INR 13.98 billion in the December quarter. Sequentially, the bank's provisions fell nearly 4%.
The bank's margin rose 17 bps in Oct-Dec from the trailing quarter. "Out of the 17 basis points (improvement), 12 bps came because of the reduction in cost of funds. I would say about 2–3 bps came because the cash reserve ratio requirements were lower during the quarter," the bank's management said. "We expect the margin trajectory to further improve in the next quarter." End
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
