IDFC FIRST Bank Q1 FY26: Deposits up 26%, CASA 48%

Key numbers that stood out

IDFC FIRST Bank reported steady balance sheet expansion and a stronger deposit mix in the quarter ended June 30, 2025, alongside business-update data points that indicate continued traction in CASA deposits and advances. In the June-quarter results, the bank said its balance sheet size grew 18% year-on-year to ₹360,000 crore. Customer deposits were reported at about ₹257,000 crore, up 26% year-on-year, while the CASA ratio improved to 48%. Separately, the shared note also cited an end-of-period CASA ratio of 51.6% (quarterly average 50%) and deposits of ₹290,000 crore, highlighting the pace of change in the bank’s funding profile.

Q1 (ended June 30, 2025): balance sheet and deposits

For the quarter ended June 30, 2025, the bank reported customer deposits of ₹2,56,799 crore, up 25.5% year-on-year. Retail deposits were reported at ₹2,04,222 crore, up 24.5% year-on-year, indicating a continued retail-led liability build-up. CASA deposits increased to ₹1,27,158 crore, up 30.2% year-on-year, supporting the improvement in the CASA ratio to 48.0%. The bank’s reported CASA ratio for the comparable period was 46.6%, implying a 140 bps improvement year-on-year in the June-quarter snapshot shared in the note.

Q1 (ended June 30, 2025): advances and portfolio mix

On the asset side, total loans and advances were reported at ₹2,53,233 crore, up 21% year-on-year. Retail, rural and MSME loans were reported at ₹2,03,954 crore, up 17.4%, while the wholesale book was reported at ₹49,279 crore, up 38.6%. The note also stated that the bank’s 21% loan growth was broadly in line with sector averages, with wholesale lending and secured retail products contributing to expansion. In addition, the note said deposit growth at 25.5% year-on-year exceeded industry pace, especially on CASA metrics.

Profitability and operating performance in the June 2025 quarter

IDFC FIRST Bank reported a net profit of ₹463 crore for the quarter ended 30 June 2025. The note said profit was lower than the same period last year, but improved by over 52% from the previous quarter. Total operating income was reported at ₹7,160 crore, reflecting 13.4% year-on-year growth. The bank also flagged stable asset quality across portfolios in the same summary.

Asset-quality buffer: provision coverage ratio

The note highlighted an improvement in the provision coverage ratio, up 296 basis points year-on-year to 72.3%. This metric is often tracked as an indicator of how much buffer a bank holds against potential credit losses. While the note does not provide absolute provisions or slippage numbers, it positions the improvement in coverage as a supportive data point alongside growth in funded assets and deposits.

Additional deposit and CASA metrics cited in the note

Alongside the June-quarter results data, the note also carried a “Deposits Overview” set of figures that pointed to deposits of ₹290,000 crore, up 22.9% year-on-year. Customer deposits in that segment were stated at ₹283,000 crore, up 24.3% year-on-year. CASA deposits were stated at ₹150,000 crore, up 33% year-on-year, with an end-of-period CASA ratio of 51.6% and a quarterly average CASA ratio of 50%. The note also stated that ₹11,768 crore of CASA deposits were added in the last quarter.

NIM movement and funding cost commentary

The shared note stated that net interest margins advanced 17 points to 5% in the quarter, helped by lower funding costs and other factors. It also attributed the higher CASA ratio to strength in both current and savings accounts. While the note does not break down yields and cost of funds, the directionally higher CASA mix is consistent with the funding-cost improvement mentioned.

July-25 operational performance snapshot

The note also included a July-25 operational performance snapshot indicating advances growth of 20% year-on-year and 5% quarter-on-quarter, described as broad-based excluding MFI, which was stated to have de-grown sharply by 37% year-on-year and 13% quarter-on-quarter. Deposit growth in the same snapshot was stated at 25% year-on-year and 6% quarter-on-quarter. CASA deposits were stated to have grown by 30% year-on-year and 8% quarter-on-quarter, while term deposits (TDs) grew 21% year-on-year and 4% quarter-on-quarter. The CASA ratio in that snapshot improved to 49.5% versus 48.7% quarter-on-quarter.

Summary table of reported metrics

Market impact and what investors typically track from here

The numbers in the note point to two themes investors usually watch closely in a retail-focused bank: deposit franchise strength and the quality of growth in advances. On deposits, the bank reported year-on-year growth in the mid-20% range across multiple snapshots, with CASA growth outpacing overall deposits and pushing the CASA ratio higher. On advances, total growth of around 21% was accompanied by a faster-growing wholesale book in the June 2025 snapshot, and a separate operational snapshot flagged weaker MFI performance even as overall advances growth stayed positive.

The note also draws attention to funding costs and margin movement, stating a 17 bps improvement in net interest margins to 5% for the quarter. For market participants, the sustainability of deposit momentum, the evolution of the CASA ratio, and portfolio mix (including the MFI trend highlighted in the July-25 snapshot) are typically key datapoints to monitor in subsequent updates.

Conclusion

IDFC FIRST Bank’s June 2025 quarter update underscored strong deposit growth, a higher CASA ratio, and 21% year-on-year growth in loans and advances, alongside a reported improvement in provision coverage. Additional figures in the note, including a 51.6% end-of-period CASA ratio and ₹290,000 crore deposits in a separate snapshot, reinforce the focus on liability mix and funding cost. Investors will likely track the next set of quarterly disclosures for continuity in CASA addition, the trajectory of margins, and how growth trends evolve across retail, wholesale, and MFI-linked segments.