Private sector lender IDFC First Bank reported its highest-ever quarterly profit in June, with the bottom-line more than doubling to 1,075 crore, aided by strong growth in net interest income (NII) and lower provisions.
Net profit at the lender was Rs 463 crore in the same quarter last year. NII, the difference between interest earned and interest paid, increased 21% YoY to Rs 5,972 crore from 4,933 crore a year earlier.
Return on Assets (ROA) for the quarter improved to 1.06%, compared to 0.54% in Q1FY26. Net Interest Margin (NIM) rose to 5.96% in the June quarter from 5.71% a year earlier, up 25 basis points year-on-year.
"We are seeing strong business momentum. Our provisions as a percentage of loans continue to come down. During this quarter we got a CGFMU claim of Rs 515 crore,” said V Vaidyanathan, MD and CEO, IDFC First Bank. “We created a provision of 515 crore on a prudent basis towards any possible impact of monsoon or fuel price volatility in the rest of the year. Finally, we believe the benefits of investments we have been making in building the bank have started playing out."
Loans and advances rose 20.6% year-on-year to Rs 3.05 lakh crore as of June 30, 2026, from Rs 2.53 lakh crore a year earlier. The incremental growth was primarily driven by mortgage, vehicle, corporate and consumer loans. The Retail, Agri and MSME (RAM) book grew 18.2% year-on-year to 2.41 lakh crore, up from Rs 2.04 lakh crore.
