IDFC First Bank conducted its quarterly earnings call for Q3FY26 on January 31, 2026, following the Board of Directors meeting. The bank's leadership team, including Managing Director and CEO V. Vaidyanathan and CFO Sudhanshu Jain, provided comprehensive insights into the bank's strong financial performance and long-term strategic vision.

Seven-Year Transformation Journey

V. Vaidyanathan highlighted the bank's remarkable transformation over seven years since the merger in December 2018. The bank began with total deposits and borrowings of ₹1,18,000 crore, of which only ₹10,400 crore were retail deposits, while ₹79,000 crore comprised wholesale deposits, certificates of deposits, and borrowings that required repayment on due dates.

Strong Q3FY26 Financial Performance

The bank demonstrated robust financial metrics across all key parameters during the quarter. Net profit reached ₹503 crore, representing a sequential growth of 43% and year-on-year growth of 48%. The nine-month profit stood at ₹1,317 crore, reflecting sustained profitability momentum.

Deposit Franchise and Liability Management

The bank's deposit mobilization strategy showed exceptional results with total deposits growing 22.9% year-on-year to reach ₹2.90 lakh crore. Customer deposits demonstrated strong growth of 24.3%, reaching ₹2.83 lakh crore, while nine-month average customer deposits grew 25% year-on-year.

Asset Quality and Credit Management

The bank reported continued improvement in asset quality metrics with gross NPA ratio improving by 17 basis points to 1.69% from 1.86% quarter-on-quarter. The management emphasized their five-year average credit cost of 1.95% on funded assets, demonstrating consistent risk management through economic cycles.

Strategic Vision and Business Model

Management outlined their comprehensive business model focused on three lending categories: high-yield segments at 18-24% with 4-6% credit costs, mid-tier products at 14% with 2-3% credit costs, and safer segments like mortgages at 8-9% with 0.5% credit costs. The bank aims for a blended credit cost target of 2% while maintaining a risk-adjusted net interest margin of 4.30%.

Technology and Digital Capabilities

V. Vaidyanathan highlighted the bank's technological prowess, noting that in October alone, IDFC First Bank processed 1.3-1.4 million loans with complete electronic processing including identity checks, bureau verification, fraud checks, KYC, mandate processing, and registration. The bank operates over 100 machine learning-based scorecards for underwriting decisions.

Operational Efficiency and Future Outlook

The bank expects significant operational leverage as it scales, with cost-to-income ratios projected to improve from current levels of 73-74% to mid-50s with increased scale. Management expressed confidence about upcoming quarters, particularly with microfinance challenges largely behind them and the core business model demonstrating resilience.

The earnings call reinforced IDFC First Bank's transformation from a development financial institution to a comprehensive retail bank, with management expressing confidence in achieving sustainable profitability and competitive positioning in the banking sector.

IDFC FIRST Bank has announced its participation in seven major investor conferences scheduled between February 3-24, 2026, as disclosed in a regulatory filing dated January 28, 2026. The bank will engage with analysts and institutional investors across multiple high-profile events during this period.

Conference Schedule and Venues

The bank's investor engagement calendar includes participation in several prestigious conferences across different locations:

Presentation Materials and Disclosure

The bank has indicated that it will utilize its Q3-FY26 investor presentation for all scheduled meetings. This presentation will be made available on both the bank's official website and the stock exchanges to ensure transparency and compliance with regulatory requirements.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30(6) read with Para A of Part A of Schedule III and Regulation 46(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank has noted that the conference schedule remains subject to change due to potential exigencies on the part of either the investors or the company.

The communication was signed by Satish Gaikwad, General Counsel and Company Secretary, and filed with both the National Stock Exchange of India Limited and BSE Limited on January 28, 2026.