IDFC First Bank Reports 4.9% Rise in Net Profit to Rs 319 Crore in Q4, Sees Improvement in Asset Quality
IDFC First Bank Reports Modest Rise in Profitability
IDFC First Bank has reported a modest rise in profitability for the fourth quarter of FY26, with net profit increasing 4.9% year-on-year to Rs 319 crore, compared to Rs 304 crore in the same period last year.
The bank's net interest income (NII) saw a strong uptick, growing 15.7% year-on-year to Rs 5,677 crore, up from Rs 4,906 crore, reflecting improved core income performance. This growth is a significant indicator of the bank's ability to generate revenue.
Asset quality showed improvement on a sequential basis, with gross non-performing assets (NPA) declining to 1.61% from 1.69% in the previous quarter. Net NPA also eased to 0.48% from 0.53% quarter-on-quarter.
Provisions during the quarter stood at Rs 869 crore, significantly lower compared to Rs 1,398 crore in the previous quarter and Rs 1,450.4 crore in the corresponding period last year, indicating reduced stress on the balance sheet.
| Provisions Comparison | Q4 FY26 | Q3 FY26 | Q4 FY25 |
|---|---|---|---|
| Provisions (Rs crore) | 869 | 1,398 | 1,450.4 |
| Provisions as % of average loans | 1.63% | 2.69% | 2.13% |
| Provisions as % of average total assets | 1.18% | 1.92% | 1.52% |
The bank also addressed an incident in Chandigarh by fully expensing the impacted amount in Q4 FY26, resulting in a post-tax impact of Rs 483 crore. The management stated that it does not expect any further material financial adjustments beyond what has already been recognised.
IDFC First Bank reported steady operational momentum in the fourth quarter of FY26, with 87% of its year-on-year loan growth driven by key segments including mortgage loans, vehicle loans, consumer loans, business banking, and wholesale lending.
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The bank continued to expand its retail footprint, with credit cards in force crossing the 4.5 million mark during the quarter. Its wealth management business also posted healthy growth, rising 23% year-on-year to surpass Rs 57,000 crore in assets under management.
Asset quality trends showed consistent improvement through the year. Provisions as a percentage of average loans declined sequentially from 2.69% in Q1 FY26 to 1.63% in Q4 FY26, with the full-year figure at 2.13%. Similarly, provisions as a percentage of average total assets fell from 1.92% in Q1 to 1.18% in Q4, with the FY26 average at 1.52%.
During the quarter, the bank utilised Rs 35 crore of contingency provisions related to microfinance institutions (MFI) and carried forward Rs 130 crore into the next financial year.
Investor Takeaway
IDFC First Bank's net profit rose 4.9% YoY to Rs 319 crore in Q4, driven by improved core income and asset quality.
