IDFC First Bank has reported its Q4 FY26 results with net profit of ₹319 crore, which includes significant one-time items. The normalized profit after tax, excluding the fraud incident impact, treasury loss, and income tax refund, stood at ₹746 crore, representing 145% YoY growth. For the full year FY26, the reported PAT was ₹1,636 crore, which adjusted for the fraud incident on a post-tax basis increased by 39% to ₹2,119 crore.

Quarterly Financial Performance

The bank demonstrated robust growth across key operational metrics. Loans and advances, including credit substitutes, grew 20% YoY to reach ₹2.9 lakh crore. Total deposits increased 16.8% YoY to ₹2.94 lakh crore, with customer deposits at ₹284,000 crore. The CASA ratio remained strong at 49.8% on an end-of-period basis, while the average CASA ratio improved to 50.4% from 50.0% in the previous quarter.

Asset Quality Shows Marked Improvement

Asset quality parameters demonstrated significant improvement during the quarter. The gross NPA ratio declined by 8 basis points to 1.61% from 1.69% in the previous quarter. Similarly, the net NPA ratio improved from 0.53% to 0.48% quarter-on-quarter. For the retail, rural, and MSME segment, the gross NPA ratio improved to 1.47%, while net NPA declined to 0.56%.

Key Business Highlights

The bank's credit card business crossed 4.5 million cards during the quarter, with the book growing 22% YoY. Wealth management AUM increased 23% to ₹57,000 crore. The microfinance book stood at ₹6,662 crore at March-end 2026, with 89% covered through CGFMU. MFI loan disbursements increased 27% sequentially, and MFI slippages declined to ₹96 crore from ₹153 crore in the previous quarter.

The net interest margin for Q4 stood at 5.93% on an AUM basis, while the full-year NIM was 5.75%. Fee and other income grew 21.3% during the quarter. Operating expenses for the quarter stood at ₹6,249 crore, including the ₹646 crore fraud impact. Excluding this, opex was ₹5,603 crore, representing a modest 0.3% sequential increase.

Capital Position and Guidance

The bank maintained a strong capital adequacy ratio (Basel III) of 15.60% with CET-1 ratio at 13.73%. The Board proposed a dividend of ₹0.25 per share, subject to shareholder approval. The bank expects credit cost for FY27 to be in the range of 170-180 basis points and NIM to remain stable around 5.75%. The cost of funds declined to 6% in Q4, down over 50 basis points in the past year.

IDFC First Bank executive has projected a robust 20% growth rate for the bank in the next year, according to a report by CNBC TV18. This growth projection indicates the private sector lender's optimistic outlook on its business performance and expansion strategies.

Growth Projection Details

The 20% growth projection represents a significant target for IDFC First Bank as it continues to strengthen its position in the competitive banking sector. This forecast suggests the bank's confidence in its operational capabilities and market opportunities.

Strategic Outlook

The projected growth rate reflects the bank's strategic planning and expectations for business expansion. Such projections typically encompass various aspects of banking operations, including lending portfolio growth, customer acquisition, and overall business development initiatives.

This growth target announcement comes as part of the bank's ongoing efforts to communicate its performance expectations and strategic direction to stakeholders and the market.