IDFC First Bank Ltd. reported a 32% fall in Q1 net profit to ₹463 crore from the identical interval final 12 months largely impacted by microfinance enterprise and rate of interest motion. Net curiosity revenue (NII) grew 5.1% YoY from ₹4,695 crore to ₹4,933 crore.
Net curiosity margin (NIM) on AUM lowered by 24 bps QoQ, from 5.95% in Q4FY25 to 5.71% in Q1FY26, largely due to repo impression, asset combine change (together with sharp decline within the micro-finance enterprise) and decline in funding yields.
“On asset quality, all our businesses, other than microfinance continue to perform well, GNPA and NNPA are at 1.97% and 0.55%, respectively,” stated MD and CEO V. Vaidyanathan.
“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,” he stated.
“So, by H2FY26 margins is likely to be better. Also, by H2FY26, MFI issue should largely be behind us. Our customer franchise is strong. So, all-in-all, we are positioned well for the future,” he added.
