IDFC First Bank reported a 75.4% year-on-year rise in net profit to ₹352 crore for the September quarter, up from ₹201 crore a year ago, supported by higher net interest income, lower provisioning, and a strong rise in customer deposits.
Net interest income (NII) grew 6.8% year-on-year to ₹5,112.7 crore, while gross non-performing assets improved to 1.86% from 1.97% in the previous quarter. Net NPA declined to 0.52% from 0.55%.
Provisions for the quarter fell 12.5% sequentially to ₹1,452 crore from ₹1,659 crore in Q1 FY26, primarily due to lower provisions in the microfinance book. The bank utilised ₹75 crore from its microfinance provision buffer as stress in the MFI business eased.
Net interest margin (NIM) stood at 5.59%, narrowing from 6.18% in the year-ago period, while the cost of funds declined 23 basis points year-on-year to 6.23%. Core operating profit remained steady at ₹1,825 crore.
Managing Director and CEO V. Vaidyanathan said the bank’s asset quality remained stable, with stress in the microfinance segment largely behind. He added that improving operating leverage and falling cost of funds are expected to support profitability going forward.
IDFC First Bank serves 35 million customers and operates over 1,000 branches across India.
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