IDFC FIRST Bank’s standalone profit climbed 196.5% year over year in the quarter ended Sept. 30, 2026, while it said foreign-currency deposits added liquidity but weighed on its reported margin.
The unaudited result was ₹1,044.60 crore, compared with ₹352.31 crore in Q2 FY26 and ₹1,074.96 crore in Q1 FY27. Net interest income reached ₹6,184.41 crore, up about 21% from a year earlier. Core operating profit, excluding trading gains, rose 38.5% to ₹2,527 crore, the bank said.
Motilal Oswal Financial Services kept its Buy rating and lowered its target price to ₹100, according to the brokerage review published by NDTV Profit on Oct. 26. The new target is 4.8% below the ₹105 set in the brokerage’s Sept. 22 report, which valued the bank at 1.6 times estimated FY28 adjusted book value. The latest target applies 1.5 times adjusted book value estimated for March 2028.
Motilal Oswal’s review put Q2 net interest margin at 5.6%, compared with an adjusted 5.9% in Q1, a sequential decline of 32 basis points. The review said management expected the margin to reach 5.8% in Q4 FY27, citing higher repo rates and the use of surplus liquidity.
The bank said it raised ₹34,390 crore, about $3.6 billion, in Foreign Currency Non-Resident (Bank) deposits, or FCNR(B), during the quarter. The deposits largely had three-to-five-year tenors. Including priority-sector lending benefits, their fully loaded funding cost was roughly 1% below domestic fixed-deposit costs, the bank said. Lending by its IBU branch against those deposits expanded the balance sheet by ₹24,885 crore; the bank described that funding as optically dilutive to reported net interest margin but a source of structural liquidity. It said the lower funding costs were expected to benefit net interest income, PAT, earnings per share and return on equity.
Deposits grew 25.9% year over year to ₹3,48,583 crore. Loans and advances, including FCNR(B)-backed lending, rose 30.1% to ₹3,46,913 crore. Excluding loans secured by FCNR(B) deposits, loan growth was 22.2% gross of IBPC, the bank said. Gross nonperforming assets stood at 1.32%, while net nonperforming assets were 0.40%.
