The NII is similar to Rs 4,695 crore within the first quarter of the final monetary yr. Nonetheless, on a quarter-on-quarter foundation, the PAT grew 52.1%.
The financial institution’s Internet Curiosity Margin (NIM) on AUM dropped by 24 foundation factors quarter-on-quarter, falling from 5.95% in This autumn FY25 to five.71% in Q1 FY26. This decline was primarily because of the affect of repo charge adjustments, a shift within the asset combine, together with a pointy fall within the microfinance section, and decrease funding yields.
Working revenue (excluding buying and selling beneficial properties) declined by 6.2% YoY, from Rs 1,858 crore in Q1 FY25 to Rs 1,744 crore in Q1 FY26. Nonetheless, on a sequential foundation, it rose by 7.8%.
The financial institution reported sturdy progress in its deposit base for the quarter ended June 30, 2025. Buyer deposits rose 25.5% year-on-year to Rs 2,56,799 crore, in comparison with Rs 2,04,572 crore a yr in the past.
Retail deposits grew 24.5% to Rs 2,04,222 crore, whereas CASA deposits surged 30.2% to Rs 1,27,158 crore. The CASA ratio improved to 48% from 46.6% in the identical interval final yr. Retail deposits accounted for 80% of the full buyer deposits as of the tip of the quarter.IDFC First Financial institution reported a steady asset high quality profile for the quarter ended June 30, 2025, even because the microfinance sector confronted rising delinquencies. The financial institution is monitoring its microfinance portfolio carefully, whereas provisions for the remainder of the ebook stay regular.Gross NPA stood at 1.97% as of June 30, 2025, barely increased than 1.87% within the earlier quarter. Internet NPA was at 0.55%, in comparison with 0.53% as of March 31, 2025. Gross NPA of the Retail, Rural, and MSME ebook rose to 1.82% from 1.70% sequentially.
IDFC First Financial institution reported a 21% YoY progress in loans and advances, reaching Rs 2,53,233 crore as of June 30, 2025, in comparison with Rs 2,09,361 crore a yr in the past. The expansion was largely pushed by mortgage loans, car loans, enterprise banking, MSME loans, and wholesale loans, which collectively accounted for 82% of the full incremental mortgage progress.
The Retail, Rural, and MSME section grew by 17.4% YoY to Rs 2,03,954 crore. In the meantime, the wholesale ebook expanded considerably by 38.6%, rising from Rs 35,564 crore to Rs 49,279 crore.
However, the microfinance portfolio declined by 36.9% YoY, with its share within the complete mortgage ebook falling from 6.3% to three.3% over the identical interval.
IDFC First Financial institution reported complete provisions of Rs 1,659 crore for the quarter ended June 30, 2025, primarily as a result of slippages within the microfinance section. Excluding microfinance and a legacy infrastructure toll account, the credit score price for the general mortgage ebook stood at 2% in Q1 FY26, up from 1.8% in FY25, largely as a result of seasonality.
The financial institution maintained a prudent method and didn’t draw from its Rs 315 crore microfinance provision buffer throughout the quarter. Moreover, incremental disbursements within the microfinance section are insured by CGFMU, with 72% of the excellent portfolio lined as of June 30, 2025.
IDFC First Financial institution reported a Capital Adequacy Ratio (CAR) of 15.01% for Q1 FY26, together with quarterly income, with the Frequent Fairness Tier-I (CET-I) ratio at 12.80% as of June 30, 2025.
Submit the proposed capital elevate of Rs 7,500 crore and upon fairness conversion, the CRAR and CET-I ratios are projected to rise to 17.60% and 15.38%, respectively, based mostly on the Q1 FY26 financials.
The financial institution’s Managing Director and CEO, V Vaidyanathan, knowledgeable that the financial institution’s margins decreased as a result of it handed on the good thing about repo charge to eligible debtors and an asset combine change.
Nonetheless, the time period deposits broadly would take a yr to reprice downwards. So, by H2 FY26, margins are more likely to be higher.
Additionally, by H2 FY26, the financial institution anticipates that the MFI challenge ought to largely be behind it. The financial institution additionally emphasised that its buyer franchise is robust and all-in-all, it’s well-positioned for the longer term.
On Friday, the shares of IDFC First Financial institution closed 3% decrease at Rs 70.70 on the BSE.
