IDFC FIRST deposits jump 25.9%, net interest income rises 21% in second quarter
Key Facts
IDFC FIRST Bank reported 21% year-on-year growth in net interest income in the second quarter of fiscal 2027, reaching 6,184 crore rupees from 5,113 crore rupees in the same period of the previous fiscal year, according to NDTV Profit. The figures show an expansion in the bank’s core operating income during the July-to-September 2026 period. Meanwhile, total deposits rose to 3,48,583 crore rupees, up 25.9% year on year and 11.8% quarter on quarter. Loans and advances, including credit substitutes and loans backed by FCNR(B) deposits, grew 30.1% year on year to 3,46,913 crore rupees. Loan growth was 22.2% excluding loans secured by FCNR(B) deposits, according to figures cited by the source.
The expansion in loans was accompanied by an improvement in asset-quality indicators compared with the previous quarter. Gross non-performing assets fell to 1.32% from 1.51%, while the net ratio declined to 0.40% from 0.44%, according to NDTV Profit. The two ratios measure non-performing loans as a share of total advances and net advances, respectively. Provisions stood at 1,137 crore rupees during the quarter, down from 1,452 crore rupees in the second quarter of fiscal 2026. Lower provisions, alongside the quarter-on-quarter decline in bad-loan ratios, put asset quality among the key indicators in the reported results.
On funding, the current and savings account ratio stood at 48.4% in the second quarter, compared with 50.1% in the previous quarter. The bank attributed the decline mainly to raising a large amount of FCNR(B) deposits during the quarter, NDTV Profit reported. This indicates that the increase in deposits included these foreign-currency-backed deposits, while current and savings accounts made up a smaller share of the overall funding mix. The comparison matters when reading deposit growth alongside loan growth, as the bank reports a separate measure of deposit composition in addition to the total amount. The source did not provide further figures on funding costs or interest margins among the available facts.
The managing director and chief executive said net profit exceeded 1,000 crore rupees for the second consecutive quarter, in the first and second quarters of fiscal 2027. He added: "Our operating expense growth came in about 500 basis points below income growth for the second consecutive quarter." The remarks put expense-growth discipline alongside the income and expansion indicators presented in the results, without providing further detail in the available figures on the components of income or expenses. The comparison period for provisions is the second quarter of fiscal 2026, while the comparison for non-performing loans is the immediately preceding quarter. Deposit and net interest income growth are reported year on year, with quarter-on-quarter deposit growth also shown.
The bank had announced that its board would meet on 24 October 2026 to consider the financial results for the quarter ended 30 September 2026, according to an official IDFC FIRST Bank announcement. The meeting follows the end of the reporting period covered by the figures, the second quarter of fiscal 2027. The announcement set the date for consideration of the results, while published coverage reported indicators for income, deposits, loans and asset quality. Together, these indicators provide a framework for reading quarterly performance: growth in interest income, funding and lending, alongside a quarterly decline in non-performing loan ratios. The current and savings account ratio also fell relatively as FCNR(B) deposit mobilization increased, according to the bank’s explanation.