IDFC First Bank Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript IDFC First Bank Ltd filed with BSE on 30 Apr 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
IDFC First Bank reported Q4 FY26 profit after tax of Rs. 319 crores, which included a one-time fraud-related impact of about Rs. 480 crores post-tax, a treasury trading loss, and a tax refund; normalized PAT excluding these items was Rs. 746 crores. Loans and advances grew 20% year-on-year to about Rs. 2.9 lakh crores, deposits grew 16.8% year-on-year to Rs. 2.94 lakh crores with CASA ratio at 49.8%, and asset quality metrics including gross and net NPA ratios improved during the quarter. Management also discussed a fraud incident during the quarter involving a claim payment of Rs. 646 crores in principal and described the bank's response and subsequent deposit trends.
Numbers mentioned
Loans and advances: Rs. 2.9 lakh crores (Q4 FY26)
p. 3
“It has grown by 20% on a Y-o-Y basis, and it has now reached about Rs. 2.9 lakh crores.”
Sudhanshu Jain, page 3 of the filed PDF · View the filing
Total deposits: Rs. 2.94 lakh crores (Q4 FY26)
p. 3
“We saw an increase in total deposits by about 16.8% on a Y-o-Y basis to Rs. 2.94 lakh crores.”
Sudhanshu Jain, page 3 of the filed PDF · View the filing
CASA ratio: 49.8% (Q4 FY26)
p. 4
“If I talk about CASA ratio, the CASA ratio was at 49.8% which itself is quite strong for the quarter.”
Sudhanshu Jain, page 4 of the filed PDF · View the filing
Gross NPA ratio: 1.61% (Q4 FY26)
p. 4
“the gross NPA ratio of the bank improved by 8 basis points from 1.69% to 1.61%.”
Sudhanshu Jain, page 4 of the filed PDF · View the filing
Net NPA ratio: 0.48% (Q4 FY26)
p. 4
“Similarly, the net NPA ratio of the bank improved from 0.53% to 0.48% in the current quarter.”
Sudhanshu Jain, page 4 of the filed PDF · View the filing
Profit after tax: Rs. 319 crores (Q4 FY26)
p. 4
“Now if I move on to the profitability. For the quarter, we have reported profit after tax of Rs. 319 crores, which includes certain one-time items, which we have called out in the presentation.”
Sudhanshu Jain, page 4 of the filed PDF · View the filing
Normalized profit after tax: Rs. 746 crores (Q4 FY26)
p. 5
“then the normalized profit after tax was about Rs. 746 crores vis-a-vis the Rs. 319 crores which we have reported taking those impacts.”
Sudhanshu Jain, page 5 of the filed PDF · View the filing
Full year reported PAT: Rs. 1,636 crores (FY26)
p. 5
“For the full year, taking into account all the impact, which includes the fraud incident, the reported PAT is Rs. 1,636 crores”
Sudhanshu Jain, page 5 of the filed PDF · View the filing
NIM (AUM basis): 5.93% (Q4 FY26)
p. 5
“We had guided the market for a NIM of 5.85% for Q4, but happy to state that we have come with a NIM of 5.93% on an AUM basis.”
Sudhanshu Jain, page 5 of the filed PDF · View the filing
NIM full year: 5.75% (FY26)
p. 5
“NIM for the full year was at 5.75%.”
Sudhanshu Jain, page 5 of the filed PDF · View the filing
Credit cost full year: 213 basis points (FY26)
p. 5
“What this has meant is for the full year, the credit cost has come at 213 basis points.”
Sudhanshu Jain, page 5 of the filed PDF · View the filing
Capital adequacy ratio: 15.60% (Q4 FY26)
p. 5
“The capital adequacy ratio is at 15.60% with CET-1 ratio at 13.73%.”
Sudhanshu Jain, page 5 of the filed PDF · View the filing
Average LCR: 114% (Q4 FY26)
p. 6
“Average LCR deposits, we have maintained at 114% for the quarter.”
Sudhanshu Jain, page 6 of the filed PDF · View the filing
MFI book: Rs. 6,662 crores (March 2026)
p. 3
“MFI book is about Rs. 6,662 crores at March-26, and now 89% of the book is covered through CGFMU.”
Sudhanshu Jain, page 3 of the filed PDF · View the filing
Credit card customers: 4.5 million (Q4 FY26)
p. 3
“Another, I think, milestone, I would want to call out is credit cards have now crossed 4.5 million during the quarter, and that book has grown strongly at about 22% on a Y-o-Y basis.”
Sudhanshu Jain, page 3 of the filed PDF · View the filing
Wealth management AUM: Rs. 57,000 crores (Q4 FY26)
p. 3
“On wealth management side, AUM continues to grow at a steady pace. It has increased by about 23% to about Rs. 57,000 crores.”
Sudhanshu Jain, page 3 of the filed PDF · View the filing
Cost of funds: 6% (Q4 FY26)
p. 9
“I want to just quickly move to cost of funds, I'm happy to share the cost of funds come down to 6% in Q4.”
V. Vaidyanathan, page 9 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
NIM — around 5.75% · FY27
stated firmly by Sudhanshu Jain
p. 12
“Yes, Param, thanks for the question. So margin for the full year was at 5.75%. And going into the next year, we expect it to be stable around these levels.”
Sudhanshu Jain, page 12 of the filed PDF · View the filing
Credit cost — 170 to 180 basis points · FY27
stated conditionally by Sudhanshu Jain
p. 12
“Yes. So I feel that it could be in the range of 170 to 180 basis points. This includes some benefit which we may get because of the CGFMU cover, which we have taken for MFI.”
Sudhanshu Jain, page 12 of the filed PDF · View the filing
Top line growth — 18% to 18.5% · FY27
stated conditionally by Sudhanshu Jain
p. 15
“So on the top line itself, I see it growing at about 18% to 18.5%.”
Sudhanshu Jain, page 15 of the filed PDF · View the filing
ROA of lending business — 1.5%, 1.6% of loans · next year
stated as an aspiration by V. Vaidyanathan
p. 15
“The ROA of the lending business to be somewhere in the zone like 1.5%, 1.6% of the loans.”
V. Vaidyanathan, page 15 of the filed PDF · View the filing
Return on assets (ROA) — 1%
stated as an aspiration by V. Vaidyanathan
p. 16
“Maybe in a kissing distance if I've to call it. We'll get to.”
V. Vaidyanathan, page 16 of the filed PDF · View the filing
MFI book growth — 15% to 20% · next year
stated as an aspiration by Sudhanshu Jain
p. 17
“So we would certainly, of course, is coming from a lower base, we would certainly want to grow this by 15% to 20% into the next year.”
Sudhanshu Jain, page 17 of the filed PDF · View the filing
Liability side cost to income ratio — 100 · over the next few years
stated firmly by V. Vaidyanathan
p. 19
“You can take it from me, it will come down 145 to 100 over the next few years.”
V. Vaidyanathan, page 19 of the filed PDF · View the filing
Deposit growth — 5% Q-o-Q · Q1 FY27
stated firmly by V. Vaidyanathan
p. 11
“Yes, 5% Q-o-Q, that kind of growth, yes.”
V. Vaidyanathan, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said new account openings remained strong through March and expects growth to resume from Q1 FY27.
Answered by V. Vaidyanathan
Asked by Param Subramanian: How is monthly deposit accretion trending after the fraud event and rate cuts, and will growth normalize?
p. 11
“So new accounts opening is coming perfectly strong. And once customers who took over the money because of the high interest rates when we cut the rates, this quarter onwards, you should see growth right now itself.”
V. Vaidyanathan, page 11 of the filed PDF · View the filing
Sudhanshu Jain guided to 170-180 bps including CGFMU benefit.
Answered by Sudhanshu Jain
Asked by Param Subramanian: What credit cost should be expected for next year?
p. 12
“Yes. So I feel that it could be in the range of 170 to 180 basis points. This includes some benefit which we may get because of the CGFMU cover, which we have taken for MFI.”
Sudhanshu Jain, page 12 of the filed PDF · View the filing
Management cited improved SMA numbers, lower MFI slippages, and strong year-end collections, and said they are taking a cautious approach on potentially impacted sectors from the crisis.
Answered by Sudhanshu Jain
Asked by Akshay Jain: What is driving asset quality strength this quarter and how is the West Asia crisis affecting MSME and other sectors?
p. 13
“Accordingly, the immediate impact on the overall portfolio is expected to remain limited at current levels.”
Sudhanshu Jain, page 13 of the filed PDF · View the filing
Sudhanshu Jain clarified the equity sale loss of Rs. 274 crores was fully provided from an old legacy case and had no P&L impact beyond the reported treasury loss.
Answered by Sudhanshu Jain
Asked by Piran Engineer: Was the treasury loss related to a stake sale in a power company, and what was the real credit cost impact?
p. 14
“We have also reported a lower provision. However, for right comparison, what we have done in the investor presentation is we have grossed up this impact.”
Sudhanshu Jain, page 14 of the filed PDF · View the filing
Sudhanshu Jain declined to commit to a specific number given ongoing external uncertainties, though he noted improving quarter-on-quarter trends.
Answered by Sudhanshu Jain
Asked by Jayant Kharote: Are you still confident of hitting 1% ROA by the end of this year?
p. 16
“As I said, Jayant, I don't want to guide to a particular number currently because there are a few moving parts, right?”
Sudhanshu Jain, page 16 of the filed PDF · View the filing
Management declined to quantify CGFMU recovery and said final ECL guidelines are still awaited, with a potential need to park more capital when they arrive.
Answered by Sudhanshu Jain
Asked by Jai Mundhra: How much CGFMU recovery is expected this financial year, and what is the outlook on ECL transitional provisioning?
p. 18
“But we may also get some benefit on account of the EIR approach because today, the sourcing opex is more than the processing piece plus there are also announcements around the change in the credit risk guidelines, which come in from April 1, '27.”
Sudhanshu Jain, page 18 of the filed PDF · View the filing
Sudhanshu Jain said the bank has only one co-lending counterparty and the book is insignificant.
Answered by Sudhanshu Jain
Asked by Jai Mundhra: Was there any impact from the co-lending model (CLM) transition effective January 1?
p. 18
“I think we have a very small book here in fact. If I recollect, I think we have the relationship with only one counterparty, and that number is very insignificant.”
Sudhanshu Jain, page 18 of the filed PDF · View the filing
Risks flagged
Deposit outflows and slower deposit growth due to a fraud incident, SA rate cuts, tight liquidity, advance tax outflows, and the West Asia crisis
p. 3
“There was also an impact of the one-off fraud incident, which occurred during the quarter. There was also tight liquidity, which prevailed through the quarter.”
Sudhanshu Jain, page 3 of the filed PDF · View the filing
Trading losses from widening bond yields during the quarter
p. 4
“The loss last year was largely because of the widening of yields which we saw during the current quarter, like for instance, the 5-year G-Sec widened by about 40 basis points, the 10-year G-Sec also widened by about 32 basis points and so on.”
Sudhanshu Jain, page 4 of the filed PDF · View the filing
Potential portfolio impact from the West Asia crisis including demand disruption, fuel-related risk and supply chain challenges
p. 13
“We have undertaken a comprehensive review of our portfolio to asset exposure to potentially impacted sectors, including demand disruption, fuel-related risk and supply chain challenges and so on.”
Sudhanshu Jain, page 13 of the filed PDF · View the filing
Possible escalation of the crisis leading to further material supply disruptions
p. 13
“However, if there is any escalation, which could lead to further material supply disruptions, we will continue to monitor.”
Sudhanshu Jain, page 13 of the filed PDF · View the filing
Uncertainty around final ECL transitional provisioning guidelines requiring additional capital
p. 17
“definitely, when the final guidelines comes, it could mean that we need to park some more capital on the ECL front itself on transition.”
Sudhanshu Jain, page 17 of the filed PDF · View the filing
Loss-making deposit franchise and new lending businesses still being built out
p. 11
“Credit card is loss making, I don't deny. Gold loans is loss making, I don't deny. Home loans' new book, prime book is loss making, I don't deny.”
V. Vaidyanathan, page 11 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.