Q1 2026 IDFC First Bank Ltd Earnings Call Transcript
Key Points
- IDFC First Bank Ltd (BOM:539437) reported a strong growth in customer deposits, crossing the INR2.5 lakh crore milestone, with a 26% YoY increase.
- The bank's CASA ratio improved to 48%, with CASA deposits growing by 30% YoY.
- The bank added 14 new branches, bringing the total to 1016, indicating expansion and increased customer reach.
- The wholesale book grew at a fast pace of 39% YoY, showing strong performance in this segment.
- The bank's provision coverage ratio improved by 296 basis points YoY to 72.3%, indicating a healthy buffer against potential loan losses.
- Gross NPA increased marginally from 1.87% to 1.97%, and net NPA rose from 0.53% to 0.55%, indicating slight deterioration in asset quality.
- The microfinance business saw a significant decline of 37% YoY, reflecting challenges in this sector.
- Net interest margin on AUM decreased by 24 basis points to 5.71%, impacted by various factors including repo rate pass-through and decline in microfinance business.
- The bank's profit after tax decreased by 32% YoY, largely impacted by the microfinance business and increased provisions.
- Operating expenses growth moderated to 11% YoY, but the cost-to-income ratio remains high, impacting profitability.
Ladies and gentlemen, good day, and welcome to IDFC First Bank's Q1 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr.
Saptarshi Bapari, Head Investor Relations. Thank you, and over to you, sir.
Thanks, Aviad. Thanks, everyone, for joining this call on a Saturday evening. Today, we have with us Mr. V. Vaidyanathan, MD and CEO of the Bank; and Sudhanshu Jain, our CFO.
So we'll have the brief from Sudhanshu first on the results, followed by comments from Vaidya. So now after that, we will open the session for Q&A. So right now, I will hand over the call to Sudhanshu for his brief.
Yes. Thank you, Saptarshi. First of all, good evening, everyone. I also, again, thank everyone for joining on and lead evening on a Saturday. I'll try to touch upon the key
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