IDFC First Bank Shares Soar 7% On Strong Q2 Print; Analyst Upbeat On Retail Turnaround

Shares of IDFC First Bank shot up 6.9% to ₹76.85 on Monday, after the private lender put up a strong Q2 showing.

Net Profit Rises While NPAs Fall

Q2 net profit surged 75.55% year-on-year (YoY) to ₹352.31 crore, while total income rose 10.7% to ₹11,828.34 crore. While core operating profit edged down slightly by 1.7% to ₹1,825 crore, net interest income grew 6.8% to ₹5,113 crore. Net interest margin fell by 59 basis points to 5.59%.

The bank’s balance sheet showed robust growth, with customer deposits rising 23.4% to ₹2,69,094 crore and retail deposits reaching ₹2,12,870 crore. Current and Savings Accounts (CASA) deposits gained 26.8% to ₹1,38,583 crore, lifting the CASA ratio to 50.07%.

Loans and advances increased 19.7% to ₹2,66,579 crore, with the retail, rural, and MSME portfolio contributing ₹2,13,906 crore. Asset quality remained stable, with gross NPA slightly easing to 1.86% and net NPA at 0.52%.

Core Business Fundamentals Remain Solid

IDFC First Bank delivered a strong Q2 FY26 performance with the bank’s retail segment posting a remarkable turnaround, moving from a Q1 loss of ₹345.9 crore to a profit of ₹52.3 crore.

While sequential profitability dipped due to treasury losses and lower other income, the core business fundamentals, including strong NII growth, improving retail performance, and disciplined asset quality, remain solid. With a fortified balance sheet and resilient operational momentum, IDFC First Bank is well-positioned for sustainable growth, said SEBI-registered Front Wave Research.

IDFC First Bank Becomes Top Trending Stock

IDFC First Bank was the top trending stock on Stocktwits. Retail sentiment turned ‘bullish’ from ‘neutral’ a day back, amid ‘high’ message volumes.

The stock recorded its biggest intra-day gains since June.

Year-to-date, the stock has gained 20%.