IDFC First Bank Q2 FY27: Loans Grow 20.4% Before Results

Results day puts focus on banking metrics

IDFC First Bank is scheduled to announce its unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026, on Saturday, October 24. The board is due to meet to consider and approve the Q2 FY27 numbers. The lender is among 33 companies scheduled to report quarterly earnings that day, alongside Kotak Mahindra Bank, AU Small Finance Bank, Castrol India, JK Cement and others. Its provisional business update has already provided investors with an early view of loan growth, deposit mobilisation and liquidity conditions. The formal results will provide the profit, margin and asset-quality figures that are not included in the provisional update. The subsequent earnings call is scheduled for 6:00 pm IST on October 24.

Domestic loans rose 20.4% year-on-year

Core domestic loans increased 20.4% year-on-year to ₹313,864 crore at the end of September 2026. The figure also represented growth of about 5.4% from the June quarter. This was the principal underlying lending measure highlighted in the bank's provisional release. On a broader basis, gross advances stood at ₹338,749 crore, up 29.9% year-on-year and 13.7% sequentially. The broader measure includes FCNR(B)-related lending booked through the International Banking Unit, or IBU. The bank said these advance figures exclude credit substitutes such as bonds and pass-through certificates.

FCNR(B) flows increased reported balance-sheet totals

During Q2 FY27, the bank mobilised ₹34,390 crore of Foreign Currency Non-Resident (Bank), or FCNR(B), deposits. Its IBU extended ₹24,885 crore of leverage to non-resident Indian customers, which was subsequently booked as FCNR(B) deposits in the domestic balance sheet. Excluding this leveraged FCNR(B) activity, loans and advances were ₹313,864 crore. Including FCNR(B) on the IBU balance sheet, gross advances were ₹338,749 crore. This distinction is important when comparing the 20.4% growth in core domestic loans with the 29.9% growth in reported gross advances. The final results may offer further details on the balance-sheet effect of these flows.

Deposit growth and CASA ratio improved

Core total deposits rose 17.0% year-on-year to ₹323,697 crore, with quarterly growth of approximately 3.8%. Customer deposits, excluding certificates of deposit, increased 17.6% year-on-year to ₹316,529 crore. Including FCNR(B) balances on the IBU balance sheet, total deposits were ₹348,582 crore, up 25.9% year-on-year. The current and savings account, or CASA, ratio improved to 51.3% from 50.8% in the previous quarter and 50.1% a year earlier. A higher CASA ratio indicates a greater share of deposits in current and savings accounts. The provisional figures therefore show growth in both loans and deposits, while the bank also reported an improved mix of deposits.

Bulk deposit dependence declined

The bank said strong FCNR(B) deposit inflows created surplus liquidity during the quarter. It responded by slowing deposit growth and reducing certificates of deposit. Bulk rupee term deposits of ₹3 crore and above declined to 13.9% of total deposits as of September 30. That compares with 17.1% at June 30 and 18.2% a year earlier. The reduction in this share is a notable change in the reported funding profile. Management said asset quality continued to remain strong, although the provisional update did not provide detailed non-performing asset or slippage figures. Those measures will be among the figures to watch in the formal quarterly release.

Liquidity coverage ratio strengthened

The average liquidity coverage ratio, or LCR, was 125% in Q2 FY27, compared with 116% in Q1 FY27. The LCR measures the availability of high-quality liquid assets relative to projected net cash outflows over a 30-day stress period. The increase follows the large FCNR(B) deposit mobilisation described in the business update. The bank's deposit management actions were also aimed at handling surplus liquidity. For investors, the final release will clarify how funding costs, liquidity and loan deployment affected net interest income and profitability during the quarter.

Key provisional operating data

Profit expectations remain estimates

Market estimates cited in the supplied material put Q2 FY27 net interest income at ₹6,196 crore, approximately 21% higher year-on-year. The same estimates put consolidated net profit at ₹1,033 crore, around 193% higher year-on-year but approximately 4% lower sequentially. These are external expectations, not reported financial results. The source material also cites Q1 FY27 profit figures of ₹1,075 crore in one dataset and ₹1,147.82 crore in another dataset. Investors should therefore rely on the bank's approved filing for the comparable profit figure and the final quarterly outcome.

Earlier quarterly figures need separate comparison

The supplied material includes historical figures from different reporting periods. It refers to standalone Q2 FY26 net profit of ₹352.31 crore, up 75.5% year-on-year, and net interest income of ₹5,112.57 crore, up 6.8% year-on-year. It also includes older Q2 FY24 figures, including standalone core operating profit of ₹1,456 crore and net interest income of ₹3,950 crore. These figures should not be treated as Q2 FY27 results. Their inclusion shows why the October 24 filing is important for an updated and consistent comparison of profitability, margins and operating performance.

What the formal result will establish

The provisional release confirms continued expansion in domestic lending and deposits, alongside a higher CASA ratio and LCR. It also shows that FCNR(B) activity materially lifted the broader reported advances and deposits figures. The board's October 24 announcement will establish the final Q2 FY27 net interest income, profit, asset-quality metrics and standalone versus consolidated performance. Management's earnings call is expected to provide its commentary on funding, profitability and asset quality. Until then, the provisional operating update remains the most current disclosed view of the bank's September-quarter business trends.