IDFC First stock: Q2 profit jumps as deposits and loans expand

IDFC FIRST Bank reported a 196.5% year-over-year increase in profit after tax to INR 10.45 billion for the second quarter of fiscal 2027, according to The Lucknow Tribune. The report was published on October 29, 2026, and said the bank had crossed the INR 10 billion quarterly profit mark for a second consecutive quarter.

Deposits increased 25.9% year over year and 11.8% from the previous quarter to INR 3.48583 trillion. Loans and advances, including credit substitutes and loans backed by FCNR(B) deposits, rose 30.1% year over year to INR 3.46913 trillion. Excluding FCNR(B)-backed loans, growth was 22.2% on a gross basis including inter-bank participation certificates.

Funding boosts growth but weighs on margins

IDFC FIRST Bank mobilised INR 343.90 billion of FCNR(B) deposits during the quarter. The bank said the long-tenure foreign-currency funding should support net interest income, profit, earnings per share and return on equity, but also creates temporary pressure on the reported net interest margin as the balance sheet expands.

Core operating profit excluding trading gains grew 38.5% year over year to INR 25.27 billion. The core cost-to-income ratio improved to 70.16% from 70.73% in the preceding quarter, while operating expenses grew more slowly than income for a second consecutive quarter.

Credit quality remains a key watchpoint

Gross non-performing assets stood at 1.32% and net non-performing assets at 0.40%. Credit cost declined to 1.01% of average assets, while return on assets was 0.93% for the quarter. For investors, the next test is whether stronger funding and operating leverage can offset the margin effect of FCNR(B) deposits.

IDFC FIRST Bank's business position

IDFC FIRST Bank is an Indian universal bank offering deposits, loans, payment products and credit cards. Its investor page highlights savings products, fixed deposits, credit cards and digital customer access, while the bank is headquartered in Mumbai and has its registered office in Chennai. The bank competes with other Indian private-sector lenders across retail banking, business banking and consumer finance, but its relative position against individual rivals is not established by the sources reviewed.

Indian bank shares remain sensitive to deposit costs, credit quality and interest-rate expectations. See more news and analyses on IDFC First stock.

For broader market context, follow current Indian market reports.