IDFC First Bank Limited (NSE: IDFCFIRSTB) achieved a net profit of Rs. 503 crores for the quarter ending December 31, 2025, driven by a 24% rise in customer deposits and improved asset quality. Strong momentum in wealth management and credit card segments contributed to a capital adequacy ratio of 16.22%, supporting long-term growth objectives.
Latest Quarterly Results and Highlights
IDFC FIRST Bank (NSE/BSE) recorded a net profit of Rs. 503 crores for Q3 FY26, representing a 48.05% year-over-year (YoY) increase and a 42.64% quarter-over-quarter (QoQ) improvement. This growth is attributed to a significant expansion in the customer deposit base and a reduction in provisions. Total customer business assets reached Rs. 5,62,090 crore as of December 31, 2025.
• Profitability: Net profit rose from Rs. 339 crores in Q3 FY25 to Rs. 503 crores in Q3 FY26. Core operating profit grew 11.59% YoY to Rs. 1,937 crores.
• Deposits: Customer deposits increased 24.35% YoY to Rs. 2,82,662 crores. CASA deposits grew 32.96% YoY, leading to a CASA ratio of 51.64%.
• Lending: Loans and advances grew 20.93% YoY to Rs. 2,79,428 crores. Growth was primarily driven by mortgage, vehicle, consumer, business banking, and wholesale loans, which constituted 89% of the YoY loan increase.
• Asset Quality: Gross Non-Performing Assets (GNPA) improved to 1.69% from 1.94% YoY. Net NPA stood at 0.53%.
• Cost of Funds: The cost of funds decreased by 38 basis points YoY to 6.11%.
Segment Updates and Regulatory Milestones
The bank’s Wealth Management business saw a 31% YoY growth, reaching Rs. 58,957 crores. In the credit segment, Credit Cards in force reached 4.3 million during the quarter. Provisions for the quarter were reduced by 3.7% QoQ to Rs. 1,398 crores. The Capital Adequacy Ratio improved to 16.22%, up from 16.11% in the previous year.
Business Model and Market Situation
IDFC FIRST Bank operates as a universal bank offering retail, MSME, rural, corporate, and treasury solutions. The business model emphasizes a “fintech-grade” experience through a cloud-native, API-led technology stack. The bank serves 35 million customers across 1,066 branches and 60,000 locations. It follows a “customer-first” approach, including the waiver of fees on 36 essential savings account services.
Management Commentary
The leadership indicates strong business momentum across lending, deposits, and transaction banking. Asset quality improvements were highlighted alongside an expectation for further drops in the cost of funds following recent revisions in savings rates. This reduction is intended to facilitate the expansion of the lending franchise.
Guidance and Future Outlook
The bank is focused on building a diversified universal banking portfolio to deliver a consistent Return on Equity (ROE) of 16%+. Management expects to expand the lending franchise as funding costs decrease. The bank maintains a vision of “Ethical, Digital, and Social Good” to achieve world-class status in India.
Where Does IDFC First Bank Limited Stand Today?
As of December 31, 2025, IDFC FIRST Bank is positioned as a fast-growing private bank with a total customer business of Rs. 5,62,090 crore. It has integrated ESG principles into its operations, impacting over 40 million lives through social programs and financing 2.5 lakh electric vehicles. The bank maintains high levels of corporate governance and adheres to regulatory guidelines in both letter and spirit.