IDFC FIRST Bank Ltd reported robust loan growth of 30% year-on-year to ₹3,13,864 crore for the quarter ended September 30, 2026, excluding leveraged Foreign Currency Non-Resident (Bank) or FCNR(B) balances. According to the latest provisional business figures, the bank's loans and advances demonstrated strong momentum with a 5.4% quarter-on-quarter increase from ₹2,97,834 crore recorded on June 30, 2026. The growth was supported by the bank's International Banking Unit (IBU) which extended ₹24,885 crore of leverage to Non-Resident Indian customers, subsequently booked as FCNR(B) deposits in the domestic balance sheet. Including FCNR(B) loans on the IBU balance sheet, gross advances stood at ₹3,38,749 crore, up 13.7% quarter-on-quarter and 29.9% year-on-year. Since this structure adds to both loans and deposits simultaneously, the bank has presented its growth numbers both with and without these leveraged deposits. As per Jefferies India report, the growth rates were boosted by $3.6 billion in FCNR-B deposits, of which $2.6 billion was via loans, with adjusted loan growth at 20% and deposit growth at 14% when excluding these leveraged deposits.
Total deposits rose 26% year-on-year to ₹3,23,697 crore, while customer deposits, excluding Certificates of Deposit, increased 25% to ₹3,16,529 crore. As reported in the latest provisional figures, deposits grew 3.8% sequentially from ₹3,11,892 crore in the previous quarter. The bank's Current Account Savings Account (CASA) ratio improved to 51.3%, compared with 50.8% in the previous quarter and 50.1% a year earlier. Including FCNR(B), the CASA ratio at the overall bank level stood at 47.6%. The bank mobilised ₹34,390 crore of Foreign Currency Non-Resident (Bank) deposits during the quarter, which resulted in excess liquidity management measures. Total deposits at the overall level rose to ₹3,48,582 crore, up 11.8% sequentially and 25.9% year-on-year, with customer deposits at the overall bank level standing at ₹3,41,414 crore, rising 14% quarter-on-quarter and 26.9% year-on-year. According to Jefferies India report, the bank has utilised FCNR-B deposits to repay deposits & CDs, with the Liquidity Coverage Ratio (LCR) improving from 116% in June to 125% in the second quarter.
The strong FCNR(B) deposit flows during the quarter resulted in excess liquidity, prompting the bank to slow deposit growth and reduce Certificates of Deposit to manage surplus liquidity. According to the latest figures, bulk rupee term deposits of ₹3 crore and above as a percentage of total deposits declined to 13.9% as of September 30, 2026, from 17.1% on June 30 and 18.2% a year earlier. The bank said this reduction structurally strengthened its balance sheet, as a lower share of bulk deposits makes the deposit base more stable and less sensitive to interest rate movements. The bank's domestic credit to deposit ratio, excluding the advances and deposits of the IBU branch, stood at 89.9%. The bank's Loan to Deposit Ratio (LDR) stands at 90%. The bank's domestic credit to deposit ratio, excluding the advances and deposits of the IBU branch, stood at 89.9%. The strong FCNR(B) deposit flows led to excess liquidity during the quarter, with the bank utilising these deposits to repay existing deposits and Certificates of Deposit.
The bank reported that its asset quality continued to remain strong during the quarter. Including FCNR(B) loans on the IBU balance sheet, gross advances stood at ₹3,38,749 crore, up 13.7% quarter-on-quarter and 29.9% year-on-year. Including FCNR(B), total deposits at the bank's overall level stood at ₹3,48,582 crore, up 11.8% quarter-on-quarter and 25.9% year-on-year. Customer deposits at the overall bank level stood at ₹3,41,414 crore, rising 14% quarter-on-quarter and 26.9% year-on-year. Shares of IDFC First Bank Ltd ended at ₹82.20, up by ₹1.88, or 2.34%, on the BSE following the results announcement. The bank added that its asset quality continues to remain strong, though it did not share specific figures. According to Jefferies India report, the bank expects 20% growth in loans and 23% growth in deposits for FY27. Stock market experts note that IDFC First Bank shares are looking bullish on technical charts and may continue the uptrend, with target levels of ₹86.50 for existing shareholders and ₹86 for fresh investors, maintaining stop-loss at ₹79.50 and ₹77.50 respectively.
