loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

IDFC First Bank reported a strong Q1FY27 performance

ICICIdirect Research 27 Jul 2026 DISCLAIMER

News: IDFC First Bank reported a strong Q1FY27 performance, with core operating metrics improving across business growth, profitability and asset quality. Advances grew 20.6% YoY (5.2% QoQ) to ₹3.05 lakh crore, led by mortgages, vehicles, consumer, MSME and corporate segments, while customer deposits increased 16.6% YoY (5.3% QoQ) to ₹2.98 lakh crore, with CASA ratio improving to 50.8%. NII grew 21.1% YoY, while underlying NIM expanded to ~5.90% (adjusting for one-offs), aided by lower funding costs and an improved liability mix. Asset quality strengthened further, with GNPA/NNPA improving to 1.51%/0.44%, while credit cost moderated to 1.53%, reflecting lower slippages and normalization in the MFI portfolio. The bank also received ₹515 crore under the CGFMU scheme and prudently created an equivalent ₹515 crore contingency provision for potential macro and geopolitical risks. PAT stood at ₹1,075 crore, supported by strong core income growth, treasury gains and improving operating leverage.

View: The outlook remains constructive, supported by normalization in deposit momentum, easing MFI stress and improving operating leverage. Management has upgraded FY27 NIM guidance to ~5.8%, lowered credit cost guidance to 1.5–1.6%, and expects cost-to-income to decline below 70% during the year. While a rising corporate mix could exert some pressure on margins, lower credit costs and positive operating jaws should support earnings momentum, with management now targeting ~1% RoA for FY27

Impact: Positive

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere