IDFC First Bank Q2 profit surges 75% on higher core income, lower provisions

IDFC First Bank reported a 75.4% year-on-year rise in net profit to ₹352 crore for the September quarter, up from ₹201 crore a year ago, supported by higher net interest income, lower provisioning, and a strong rise in customer deposits.

Net interest income (NII) grew 6.8% year-on-year to ₹5,112.7 crore, while gross non-performing assets improved to 1.86% from 1.97% in the previous quarter. Net NPA declined to 0.52% from 0.55%.

Provisions for the quarter fell 12.5% sequentially to ₹1,452 crore from

₹1,659 crore in Q1 FY26, primarily due to lower provisions in the microfinance book.

The bank utilised ₹75 crore from its microfinance provision buffer as stress in the MFI business eased.