Synopsis:- Reporting its Q4 FY26 and full-year results on April 25, 2026, IDFC FIRST Bank posted a reported PAT of Rs. 319 crore for the quarter, while on a normalized basis, stripping out one-time items, the figure came in at Rs. 746 crore, up 145 percent year-on-year; asset quality improved to historic lows even as loan book growth stayed firm at 20 percent.
Shares of a leading private sector lender came into focus after it declared results for the quarter and financial year ended March 31, 2026. The bank reported a 145 percent jump in net profit alongside record-low NPAs and a CASA ratio inching toward the 50 percent mark.
With a market capitalization of Rs. 58,805 crore, IDFC FIRST Bank’s shares traded at Rs. 68.4 per share on April 27, 2026, with a 52-week range of Rs. 87 to Rs. 58.08. It is trading at a P/E of approximately 35.91x.
Q4 Results Overview
On a year-on-year basis, operating income grew 11.4 percent to Rs. 7,581 crore in Q4 FY26, while Net Interest Income rose 15.7 percent to Rs. 5,677 crore, reflecting healthy loan book expansion and improving cost of funds. Reported net profit rose 4.9 percent YoY to Rs. 319 crore, though normalized net profit, stripping out one-time items, surged 145 percent YoY to Rs. 746 crore.
On a sequential basis, operating income was nearly flat, down just 0.5 percent QoQ from Rs. 7,617 crore, while Net Interest Income grew 3.4 percent QoQ to Rs. 5,677 crore on continued disbursements and lower funding costs.
Loan Book and Margins
Gross advances grew 20 percent year-on-year to Rs. 2,90,278 crore, with 87 percent of incremental growth coming from mortgage loans, vehicle loans, consumer loans, MSME, and wholesale lending. The wholesale book alone grew 30.5 percent over the year to Rs. 57,884 crore, reflecting a deliberate re-entry into corporate credit after years of rundown. Net Interest Margin for Q4 FY26 stood at 5.93 percent, up 18 basis points sequentially, while for the full year, NIM came in at 5.75 percent. Net interest income for Q4 grew 15.7 percent year-on-year to Rs. 5,677 crore. Fee and other income for the quarter rose 21.3 percent year-on-year to Rs. 2,063 crore, with 92 percent of fee income originating from retail banking operations.
Deposits and Cost of Funds
Total deposits rose 17 percent year-on-year to Rs. 2,94,475 crore. CASA deposits grew 24 percent to Rs. 1,46,650 crore, taking the CASA ratio to 49.8 percent, up 289 basis points year-on-year. The cost of funds declined 51 basis points over the year to 6.00 percent for Q4, now at par with mid-tier private sector peers. That was a 150-basis-point gap at the merger. Average customer deposits for the full year grew 25 percent year-on-year, a cleaner read on deposit momentum than the end-of-quarter balance.
Asset Quality
The bank’s GNPA ratio fell to 1.61 percent, the lowest in its history, down 26 basis points year-on-year. Net NPA came in at 0.48 percent. Gross slippages declined 15 percent sequentially to Rs. 1,777 crore, and MFI collection efficiency recovered to 99.7 percent, back at pre-crisis levels.
The SMA 1+2 pool for the RAM book contracted to 0.78 percent, down 29 basis points year-on-year. The credit cost for the full year stood at 2.13 percent of average funded assets, improving 33 basis points from FY25. Provision coverage ratio improved to 70.46 percent. Capital adequacy remained at 15.60 percent, with a CET-1 ratio of 13.73 percent.
Other Updates
The board recommended a dividend of Rs. 0.25 per share for FY26, subject to shareholder approval. The bank also approved 3.5 crore ESOPs and appointed a new CHRO effective April 27, 2026. During Q4, an operational fraud incident resulted in a one-time charge of Rs. 646 crore in operating expenses; excluding this, opex grew a contained 12.3 percent year-over-year against business growth of 18.6 percent, an operating leverage gap that the management expects to widen further.
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