IDFC First Bank reported steady business growth for the quarter ended March 31, 2026, supported by consistent deposit mobilisation and expansion in its loan portfolio despite a challenging operating environment. The bank’s latest provisional update highlights resilience across key metrics, including deposits, lending activity, and liquidity management.
Customer deposits recorded a solid increase during the quarter, rising 17.2% year-on-year to ₹2.84 lakh crore, compared with ₹2.42 lakh crore in the corresponding period of the previous year. This growth reflects the bank’s continued focus on strengthening its liability franchise and expanding its customer base across segments.
Alongside deposit growth, the bank’s loans and advances portfolio also expanded significantly. Total loans grew 20% year-on-year to ₹2.90 lakh crore as of March 31, 2026, up from ₹2.42 lakh crore a year earlier. This growth indicates sustained credit demand and the bank’s ability to scale its lending operations across retail and commercial segments.
One of the notable highlights during the quarter was the improvement in the current account savings account (CASA) ratio, which increased to 49.8%, compared with 46.9% recorded during the same period last year. The rise in CASA ratio suggests a stronger share of low-cost deposits, which typically supports better margins and operational efficiency.
Deposit growth during the quarter was achieved despite several external pressures. The bank faced year-end advance tax outflows, which typically reduce banking system liquidity during the final months of the financial year. Additionally, the operating environment remained tight due to liquidity constraints in the broader financial system.
External geopolitical developments also created uncertainty during the period. The ongoing West Asia crisis persisted for more than a month, adding to volatility in financial markets and influencing investor sentiment. Despite these headwinds, the bank managed to maintain steady deposit inflows.
During the fourth quarter, the bank implemented a reduction in savings account interest rates, ranging from 50 to 200 basis points across key deposit buckets. Even with this adjustment, customer deposit growth remained stable, indicating strong customer retention and confidence in the bank’s offerings.
Customer acquisition trends remained consistent during the final month of the financial year. The bank noted that new account openings in March 2026 were in line with previous months, reflecting continued momentum in expanding its customer base without significant slowdown.
On a sequential basis, average customer deposits also increased during the quarter, further reinforcing the strength of the bank’s deposit mobilisation strategy. Management expects deposit growth momentum to strengthen further beginning in the first quarter of FY27, supported by improved liquidity conditions and ongoing customer acquisition efforts.
The CASA ratio remained broadly stable when viewed on an average basis throughout the quarter. This stability indicates sustained traction in low-cost deposits, which are critical for maintaining competitive funding costs and improving profitability metrics over time.
From an asset quality perspective, the bank reported normalisation in its microfinance institution (MFI) portfolio, suggesting improvement after earlier stress in this segment. At the same time, asset quality across the rest of the loan book remained stable, indicating disciplined credit management practices.
Liquidity conditions remained comfortable during the reporting period. The bank’s average Liquidity Coverage Ratio (LCR) stood at 114% during the fourth quarter of FY26, comfortably above regulatory requirements and reflecting the bank’s strong liquidity position.
The bank clarified that all reported figures are provisional in nature and subject to final review and audit by its statutory auditors before the publication of audited financial statements. Such preliminary disclosures provide early insights into operational performance ahead of detailed results.
Following the business update, shares of IDFC First Bank closed higher on the National Stock Exchange of India, ending the session at ₹60.49, up ₹0.31, or 0.52%. The positive price movement reflects investor confidence in the bank’s continued growth momentum.
Overall, the combination of rising deposits, expanding loan book, improving CASA ratio, stable asset quality, and strong liquidity metrics highlights the bank’s ability to maintain growth even amid macroeconomic and geopolitical challenges. Continued focus on retail deposits and disciplined lending is expected to support sustained performance in the coming quarters.