IDFC FIRST Bank Q2 Results: Net Profit Surges to ₹1,045 Crore, Net Interest Income Rises 21%

IDFC FIRST Bank reported a sharp increase in its net profit for the September quarter of FY27 (Q2 FY27), with standalone profit rising nearly threefold year-on-year to ₹1,045 crore. The private sector lender had posted a net profit of ₹352 crore in the corresponding quarter of the previous financial year.

The bank’s performance was supported by strong growth in net interest income (NII), improved asset quality and lower provisions compared with the year-ago period. However, its profit registered a marginal decline compared with the preceding June quarter, when it reported a net profit of ₹1,075 crore.

Net interest income, which represents the difference between interest earned and interest paid, increased 21% year-on-year to ₹6,185 crore in the September quarter. The figure stood at ₹5,113 crore in the same period last year, reflecting continued growth in the bank’s core lending operations.

Operating profit also recorded a significant improvement, rising 35.1% year-on-year to ₹2,539 crore. The growth in operating earnings indicated stronger underlying business performance during the quarter. The lender also reported an improvement in asset quality. Gross non-performing assets (GNPA) declined to 1.32% in September 2026, compared with 1.51% in June 2026. Net non-performing assets (NNPA) fell to 0.40% from 0.44% over the same period.

The reduction in bad-loan ratios suggests an improvement in the bank’s loan portfolio and its ability to manage credit risks. Lower stressed assets can also help lenders reduce the financial burden associated with potential loan defaults.

Provisions stood at ₹1,137 crore during the September quarter, down from ₹1,452 crore in the corresponding period a year earlier. Lower provisions contributed to the improvement in the bank’s year-on-year profitability.

The quarterly results highlight IDFC FIRST Bank’s Q2 FY27 performance, supported by higher interest income and improved asset quality. Nevertheless, the marginal sequential decline in net profit indicates that its performance remained mixed compared with the previous quarter.