Daijiworld Media Network - New Delhi

New Delhi, Oct 24: IDFC First Bank on Saturday reported an 8.59 per cent quarter-on-quarter decline in consolidated net profit to Rs 1,049.17 crore in the second quarter of FY27, compared with Rs 1,147.82 crore in the first quarter.

The lender’s net interest income (NII) rose to Rs 6,188 crore in Q2 FY27, registering a 3.59 per cent increase from Rs 5,974 crore in the preceding quarter. On a year-on-year basis, NII grew 21.04 per cent from Rs 5,112.81 crore in Q2 FY26.

However, net profit increased several-fold year-on-year, according to the bank’s results.

The bank’s asset quality improved during the quarter, with gross non-performing assets (NPA) declining to 1.32 per cent from 1.51 per cent in the preceding quarter. Net NPA also fell to 0.40 per cent from 0.44 per cent sequentially.

Provisions declined to Rs 1,137 crore in the period under review from Rs 1,452 crore in Q2 FY26.

The lender’s total deposits surged 25.9 per cent year-on-year and 11.8 per cent quarter-on-quarter to Rs 3,48,583 crore.

The current account and savings account (CASA) ratio stood at 48.4 per cent in Q2 FY27, down from 50.1 per cent. The decline was primarily attributed to the mobilisation of a large volume of Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits during the quarter.

Loans and advances, including credit substitutes and FCNR(B)-backed loans, grew 30.1 per cent year-on-year to Rs 3,46,913 crore.

V Vaidyanathan, managing director and chief executive officer of IDFC First Bank, said, “Opex growth lagged income growth by 500 bps for two quarters, cost-to-income continues to fall and ROA is near 1 per cent. Raising over Rs 34,000 crore FCNR(B) deposits gives us 3-5 year liquidity at 1 per cent lower cost than domestic deposits.”

Shares of IDFC First Bank ended at Rs 72.35 on the BSE on Friday, down 3.47 per cent.

According to the exchange, the stock has recorded a 52-week high of Rs 89.58 and a 52-week low of Rs 58.08.