IDFC Bank’s net interest margin (NIM) fell by 59 bps on a year-on-year basis to 5.59%, down from 6.18% a year ago and 5.71% in the previous quarter.
The bank’s gross NPA ratio declined by 6 basis points to 1.86%, while the net NPA increased by 4 basis points to 0.52% on a year-on-year basis.
Further, IDFC Bank reported a 21.6% year-on-year increase in total customer business, which rose to Rs 5,35,673 crore as of September 30, 2025, compared to Rs 4,40,640 crore a year ago. Loans and advances grew by 19.7% YoY to Rs 2,66,579 crore from Rs 2,22,613 crore.IDFC Bank’s customer deposits rose 23.4% year-on-year to Rs 2,69,094 crore as of September 30, 2025, from Rs 2,18,026 crore a year earlier.Meanwhile, CASA deposits grew 26.8% YoY to Rs 1,38,583 crore. The CASA ratio improved by 119 basis points to 50.07%, up from 48.88% in the same quarter last year. The bank’s cost of funds declined by 23 basis points year-on-year to 6.23%.“The stress in the MFI business was an MFI industry issue and looks like it is behind us. Other than MFI, the asset quality of the Bank has always been stable for over a decade through cycles and continues to be so with Gross NPA at 1.86% and Net NPA at 0.52% as of 30th September 2025. On cost of funds, we expect it to drop from here on. The bank is witnessing improving operating leverage. For instance, in FY25, total Business, i.e. loans and customer deposits, grew by 22.7% YoY, against increase in Opex of 16.5% YoY. Following on, in H1 FY26, total Business grew by 21.6% YoY, against Opex increase of 11.8% YoY. We hope to sustain this trend,” said V Vaidyanathan, MD and CEO of ISFC First Bank.
On Friday, the shares of IDFC First Bank closed flat at Rs 71.91 on the BSE.
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