IDFC First Bank Results: How did the bank stock perform in Q3?

Synopsis:- A private lender reported strong Q3FY26 performance, with revenue rising 11% YoY and net profit jumping 41%. Gross NPA improved to 1.69%, while total customer business touched ₹5.62 lakh crore. Deposits grew steadily, the CASA ratio strengthened to 51.64%, and provisions declined sequentially.

The shares of banking service providers gained up to 2 percent in today’s trading session after the company reported robust earnings in Q3FY26, and its gross NPA improved to 1.69%, indicating better asset quality.

With a market capitalisation of Rs 70,527.30 crore, the shares of IDFC First Bank Ltd were trading at Rs 82.03 per share, decreasing around 1.82 percent as compared to the previous closing of Rs 83.55 apiece.

Q3FY26 Highlights

The shares of IDFC First Bank Ltd have seen significant movement after announcing its financial performance in Q3FY26, in which Net Interest Income increased by 12 percent on a year-on-year basis from Rs 4,902 crore in Q3FY25 to Rs 5,492 crore in Q3FY26. However, on a Quarter-on-Quarter basis, Net Interest Income increased by 7 percent from Rs 5,113 crore in Q2FY26 to Rs 5,492 crore in Q3FY26.

Moreover, net profit increased by 41 percent on a yearly basis from Rs 340 crore in Q3FY25 to Rs 479 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit increased by 38 percent from Rs 348 crore in Q2FY26 to Rs 479 crore in Q3FY26. 

As of 31 December 2025, total customer business stood at  Rs 5,62,090 crore, reflecting strong overall momentum. Loans and advances reached  Rs 2,79,428 crore, while gross NPA improved to 1.69%, indicating better asset quality. Net NPA remained controlled at 0.53%, and SMA 1+2 declined to 0.88%, showing healthier credit monitoring and reduced stress in the loan portfolio.

On the liabilities side, customer deposits rose to  Rs 2,82,662 crore, supported by CASA deposits of  Rs 1,50,350 crore. The CASA ratio improved to 51.64%, strengthening the low-cost funding base. Cost of funds eased to 6.11%, enhancing margins. Overall, the December 2025 position reflects stable growth, improving asset quality, and a stronger deposit franchise.

The bank’s growth remains broad-based, with 89% of year-on-year loan expansion driven by mortgages, vehicle loans, consumer finance, business banking, and wholesale lending. Credit cards in force rose to 4.3 million in Q3 FY26. Wealth management assets grew 31% YoY to  Rs 58,957 crore, while quarterly provisions declined 3.7% to  Rs 1,398 crore, indicating improving asset quality.

Commenting on the results, Mr. V Vaidyanathan, MD and CEO, said, “We are seeing a strong business momentum across all our main lines of business, including lending, deposits, wealth management, transaction banking, etc. Our asset quality has improved with GNPA at 1.69% and Net NPA at 0.53% as of 31st December 2025. On the cost of funds, we expect it to further drop from here because of the recent revision in savings rates, which will enable us to expand our lending franchise.”

IDFC First Bank Ltd is a leading private sector bank in India offering retail, MSME, and corporate banking services. The bank focuses strongly on retail lending, digital banking, and customer-centric products. With a growing deposit franchise and expanding loan book, it aims to build a sustainable, technology-driven banking platform.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post IDFC First Bank Results: How did the bank stock perform in Q3? appeared first on Trade Brains.