IDFC FIRST Bank Share Price in Focus; Deposits Up 25%, Profit Slides in Q1 FY26 Results

IDFC FIRST Bank released its unaudited financial results for the quarter ending June 30, 2025, showcasing growth in deposits and advances but a mixed profit performance.

Growth in Deposits and Borrowings

The bank’s customer deposits rose 25.5% YoY, reaching ₹2,56,799 crore as of June 30, 2025, up from ₹2,04,572 crore a year earlier. Retail deposits, which form 80% of total deposits, increased 24.5% YoY to ₹2,04,222 crore.

CASA deposits showed notable momentum, climbing 30.2% YoY to ₹1,27,158 crore, improving the CASA ratio to 48.0% (up from 46.6%). These trends highlight the bank’s growing retail strength and stable funding base.

Expansion in Loans and Advances

Total loans and advances grew 21% YoY, reaching ₹2,53,233 crore, with growth driven by mortgage loans, vehicle loans, business banking, MSME loans, and wholesale loans, which contributed 82% of the YoY growth.

The retail, rural, and MSME book expanded 17.4% YoY to ₹2,03,954 crore, while the wholesale book surged 38.6% YoY to ₹49,279 crore. Meanwhile, the microfinance portfolio declined 36.9% YoY, reducing its share in the overall loan book from 6.3% to 3.3%.

Other Business Highlights

The bank issued 3.8 million credit cards during the quarter and continued to lead the FASTag segment with 19.1 million FASTags in force. Its Private Wealth Management AUM grew 34% YoY, crossing the ₹50,000 crore mark, and stood at ₹51,287 crore.

Income and Profit Performance

The bank’s Net Interest Income (NII) rose 5.1% YoY to ₹4,933 crore, while total operating income (including trading gains) grew 13.4% YoY to ₹7,160 crore.

Net profit surged 52.1% sequentially to ₹463 crore, though it declined 32% YoY, largely due to challenges in the microfinance business and interest rate volatility.

Asset quality remained steady, with Gross NPA at 1.97% and Net NPA at 0.55% as of June 30, 2025.

Mr. V Vaidyanathan, Managing Director and CEO, IDFC FIRST Bank, said, “We are pleased to share that our core franchise continues to grow well. In banking, Capital is the foundation and Deposits are the raw material for our business. With the impending equity raise, our capital adequacy will be at 17.6% (if computed at June 30, 2025). With customer deposits growing at 25.5%, our funding is strong. Our incremental Credit Deposit Ratio for the last 1 year is only 75.8%. On Asset Quality, all our businesses, other than microfinance continue to perform well, GNPA and NNPA are at 1.97% and 0.55%, respectively.”

He further added, “Our margins reduced because we passed on the benefit of repo rate to eligible borrowers and asset mix change, but term deposits broadly would take a year to reprice downwards. So, by H2 FY26 margins is likely to be better. Also, by H2 FY26, MFI issue should largely be behind us. Our customer franchise is strong. So all-in-all we are well positioned well for the future.”

IDFC FIRST Bank Share Price Performance

On July 28, 2025, IDFC FIRST Bank share price (NSE: IDFCFIRSTB) opened at ₹69.89, slightly down from its previous close of ₹70.70. At 9:36 AM, the share price of IDFC FIRST Bank was trading at ₹70.88, down by 0.25% on the NSE.

Also Read: Ujjivan Small Finance Bank Q1 FY26 Earnings: 11% Rise in Loan Book, PAT rises 24% QoQ to ₹103 Crore!

Conclusion

IDFC FIRST Bank demonstrated growth in deposits, loans, and wealth management, alongside strong sequential profit recovery. However, the YoY profit dip underscores challenges in the microfinance portfolio and the impact of interest rate changes. Sustained retail growth and asset quality management will be crucial for its momentum in FY26.

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