IDFC FIRST Bank Q2 profit jumps 196.5% to ₹1,045 crore

IDFC FIRST Bank Limited (NSE: IDFCFIRSTB) reported Q2 FY27 profit after tax of ₹1,045 crore, up 196.5% YoY. Net interest income increased 21% to ₹6,184 crore, supported by healthy loan growth and expanding deposits. Key Highlights • Loans and advances grew 30.1% YoY to ₹3.47 lakh crore, including FCNR(B)-backed lending. • Deposits increased 25.9% YoY to ₹3.49 lakh crore. • Gross NPA improved to 1.32% from 1.51% in Q1 FY27. • Net NPA declined to 0.40% from 0.44%. • Core operating profit increased 38.5% YoY to ₹2,527 crore. • The bank mobilised ₹34,390 crore through FCNR(B) deposits. My View IDFC FIRST Bank delivered strong earnings growth, supported by expanding lending operations, improving asset quality and lower provisions. The most encouraging development is the 38.5% growth in core operating profit. This suggests that profitability is improving beyond the benefit of lower credit costs. However, the 30.1% loan growth figure requires closer examination. Excluding FCNR(B)-backed loans, growth stood at 22.2%, providing a clearer picture of underlying lending momentum. The bank's core cost-to-income ratio remains elevated at 70.16%, leaving considerable room for operating efficiency improvements. What I'm Watching Next I will monitor credit costs, deposit mobilisation and the cost-to-income ratio in Q3 FY27. Sustained core profit growth alongside improving operating efficiency would strengthen the earnings outlook. Stance: Positive on improving profitability and asset quality, but further cost efficiency is essential for sustainable returns. Disclosure: I do not have any holding or position in the stock mentioned above.