🚨 IDFC FIRST Bank’s headline profit looked soft… but the real story may be hiding beneath the surface.
IDFC FIRST Bank reported Q4 FY26 PAT of **₹319 Cr** (+4.9% YoY), but adjusted for one-offs, **normalized PAT jumped to ₹746 Cr** — up **145% YoY**. 👀
**What stood out:**
✅ Advances grew **20% YoY** to ₹2.84 lakh crore
✅ Deposits rose **17% YoY** to ₹2.94 lakh crore
✅ NII grew **15.7% YoY** to ₹5,677 crore
✅ GNPA improved to **1.61%**
✅ NNPA fell to **0.48%**
✅ Credit costs eased to **1.63%**
**Why reported profit looked muted?**
* Fraud-related one-off impact
* Treasury loss hit earnings
* Higher opex distorted headline profitability
Strip those out, and the operating picture looks materially stronger.
**What I find interesting:**
While markets may focus on the weak reported PAT, the combination of **20% loan growth + improving asset quality + stronger normalized profitability** suggests the core franchise is still compounding.
📌 Key monitorables ahead:
* CASA momentum (49.8%, slight QoQ dip)
* Cost-to-income improvement
* Microfinance normalization
* Sustainability of 5.7%+ NIM
**Initial read:** More of a *quality growth with accounting noise* quarter than a weak quarter.
Do you think the market will look through the headline PAT miss, or punish the stock near term?
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