IDFC First Bank shares advanced 3% on Monday, 27 April to reach the day's high of ₹69.29 per share on BSE following the release of strong Q4 FY26 results. According to reports from LiveMint, the private sector lender demonstrated resilience despite navigating challenges related to a fraud incident during the quarter.
The bank reported a 5% year-on-year increase in net profit to ₹319 crore for Q4 FY26, compared to ₹304 crore in the same period last year. As reported by The Economic Times, total income climbed to ₹12,183 crore from ₹11,308 crore a year ago, reflecting continued business expansion. Interest income also saw a healthy uptick, rising to ₹10,553 crore from ₹9,413 crore in the corresponding quarter of the previous financial year, with net interest income growing by 16% according to The Economic Times.
The bank demonstrated significant improvement in asset quality metrics during the quarter. According to LiveMint, gross non-performing assets (GNPA) ratio declined to 1.61% from 1.87% a year ago, while net NPAs (NNPA) improved to 0.48% from 0.53% in the same period. Provisions as a percentage of average loans fell significantly to 1.63% in Q4 FY26, compared to 2.69% in Q1 FY26, with the full-year average standing at 2.13%. The reduction in provisioning reflects easing stress levels and improved credit performance across most portfolios.
Operationally, the bank maintained steady momentum with 87% of its year-on-year loan growth driven by core segments such as mortgage loans, vehicle financing, consumer loans, business banking, and wholesale lending. As reported by LiveMint, Managing Director and CEO V. Vaidyanathan noted that the bank's asset quality remained stable across businesses, except for the microfinance segment, which had faced industry-wide challenges in FY25 and FY26. He expressed confidence in continued deposit growth, citing a strong start to Q1 FY27.
Despite the positive results, the quarter was impacted by a significant fraud incident. According to LiveMint, the Haryana government de-empanelled the bank and ordered the withdrawal of state funds following the detection of a ₹590 crore fraud at its Chandigarh branch in February 2026. The state government has halted all dealings with the bank and directed departments to shift funds to public sector banks, while also initiating a probe by the Central Bureau of Investigation. However, the bank stated it has fully accounted for the financial impact of the incident. The Economic Times reports that the fraud impact led to a 42% drop in operating profit after the bank fully expensed the impact during the quarter.
