IDFC First Bank Q3 Results: Net profit jumps 48% YoY to Rs 503 crore on strong loan, deposit growth

Total customer business rose to ₹5.62 lakh crore during the quarter, reflecting the bank’s expanding balance sheet and growing customer base.

• IDFC First Bank Q3 net profit rose 48 percent to Rs 503 crore year-on-year
• Gross NPA ratio improved to 1.69 percent, net NPA at 0.53 percent
• Customer base reached 35 million, with over 1,066 branches nationwide

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IDFC First Bank on Saturday reported a strong set of numbers for the third quarter ended December 2025, with net profit rising 48 per cent year-on-year to Rs 503 crore. The private sector lender had posted a profit of Rs 339 crore in the corresponding quarter last year.

The bank’s total income for the quarter increased to Rs 12,542 crore, compared with ₹11,123 crore in the same period a year ago, according to a regulatory filing. Interest income also saw healthy growth, rising to Rs 10,417 crore from Rs 9,343 crore a year earlier.

Net Interest Income (NII) climbed to Rs 5,492 crore in the December quarter of FY26, up from Rs 4,902 crore in the year-ago period, reflecting steady growth in the bank’s core lending business.

However, the Net Interest Margin (NIM) moderated to 5.76 per cent during the quarter, compared with 6.04 per cent in the same quarter last year, amid a changing interest rate environment.

On the asset quality front, IDFC First Bank reported an improvement in gross bad loans, with the gross non-performing assets (NPA) ratio declining to 1.69 per cent from 1.94 per cent a year ago. Net NPAs, however, edged up marginally to 0.53 per cent from 0.52 per cent in the December quarter of the previous fiscal.

The bank’s capital position strengthened during the quarter, with the capital adequacy ratio improving to 16.22 per cent as of December 2025, compared with 16.11 per cent a year earlier, providing additional comfort on balance sheet strength.

Vaidyanathan, MD and CEO said “We are seeing a strong business momentum across all our main lines of businesses, including lending, deposits, wealth management, transaction banking etc. Our asset quality has improved with GNPA at 1.69% and Net NPA at 0.53% as of 31st December 2025. On cost of funds, we expect it to further drop from here because of recent revision in savings rates, which will enable us to expand our lending franchise.”

As of the end of the quarter, IDFC First Bank’s customer base stood at 35 million, with a nationwide presence across more than 60,000 locations through 1,066 branches. The bank’s market capitalisation stood at Rs 71,825.04 crore.