Stock Report

IDFC FIRST Bank Reports 20% Loan Growth and Stable Asset Quality for FY26

Posted On : 2026-04-04 19:51:17( TIMEZONE : IST )

IDFC FIRST Bank Limited (NSE: IDFCFIRSTB; BSE: 539437) has released its provisional business update for the quarter and financial year ended March 31, 2026. Despite a challenging quarter marked by tight liquidity and geopolitical headwinds, the bank demonstrated resilient growth in its lending book and maintained a high-quality deposit base.

Key Financial Highlights

Loans & Advances: The bank's credit book grew by 20.0% YoY, rising to ₹2,90,362 crore as of March 31, 2026, compared to ₹2,41,926 crore in the previous year. Sequential (QoQ) growth stood at 3.9%.

Customer Deposits: Deposits increased by 17.2% YoY to reach ₹2,84,327 crore. While sequential growth was a modest 0.6%, the bank noted that average customer deposits grew by 3.0% QoQ, indicating stable underlying momentum.

CASA Ratio: The bank maintained a strong low-cost deposit profile with a CASA ratio of 49.8%. The average CASA ratio for Q4-FY26 remained stable at 50.4%.

Liquidity: The average Liquidity Coverage Ratio (LCR) for the quarter was stable at 114%, well above regulatory requirements.

Navigating Headwinds

The bank successfully grew its deposit base despite several challenges during the quarter, including:

Significant outflows due to year-end advance tax payments.

A tight liquidity environment across the banking sector.

The impact of the ongoing West Asia crisis.

A strategic reduction in Savings Account interest rates (by 50 to 200 bps) in key buckets during Q4-FY26.

Asset Quality Update

In a positive development for the bank's risk profile, the asset quality of the Microfinance (MFI) book has returned to normalcy. The asset quality across the remainder of the bank's portfolio continues to remain stable, as per previous trends.

Shares of IDFC First Bank Limited was last trading in BSE at Rs. 60.26 as compared to the previous close of Rs. 60.16. The total number of shares traded during the day was 1039478 in over 10016 trades.

The stock hit an intraday high of Rs. 60.56 and intraday low of 58.08. The net turnover during the day was Rs. 61169934.00.