IDFC First Bank Q3 Results: PAT jumps 48% YoY to Rs 503 crore, NII up 12%

Core Insights - The bank reported a 48% year-on-year increase in net profit to Rs 503 crore for Q3 FY26, compared to Rs 339 crore in the same period last year [8] - Net interest income (NII) grew by 12% year-on-year to Rs 5,492.4 crore, up from Rs 4,902 crore in the corresponding quarter a year ago [8] - The bank's asset quality showed improvement, with gross non-performing assets (NPAs) ratio decreasing to 1.69% from 1.86% in the previous quarter and 1.94% a year ago [8][7] Financial Performance - Gross NPAs declined to Rs 4,614 crore from Rs 4,841 crore in the previous quarter, while net NPAs rose slightly to Rs 1,427 crore from Rs 1,345.4 crore sequentially [2][8] - Provisions for the quarter decreased by 3.7% sequentially to Rs 1,398 crore from Rs 1,452 crore, indicating an improvement in overall asset quality [5][8] - The bank's net interest margin (NIM) fell to 5.76% from 6% in the same period last year [9] Loan Growth and Segments - Nearly 89% of the year-on-year growth in loans and advances was driven by expansion in mortgage loans, vehicle loans, consumer loans, business banking, and wholesale loans, reflecting broad-based momentum across key lending segments [4][8] - The credit card portfolio expanded, with cards in force reaching 4.3 million during Q3 FY26 [5][8] - The wealth management business experienced a 31% year-on-year growth, with assets under management increasing to Rs 58,957 crore [5][8] Management Commentary - The Managing Director and CEO, V Vaidyanathan, noted strong business momentum across core segments, including lending, deposits, wealth management, and transaction banking [6][8] - He highlighted the improvement in asset quality and anticipated a further decline in the cost of funds due to recent revisions in savings rates, which is expected to support the bank's lending expansion [7][8]