Net interest income or NII grew 12% YoY to Rs 5,492.4 crore, up from Rs 4,902 crore in the corresponding quarter a year ago, IDFC First Bank said in a regulatory filing.
On the asset quality front, the bank’s gross non-performing assets ratio improved to 1.69% from 1.86% in the previous quarter. In the same period last year, the figure stood at 1.94%, according to the company.
However, the net non-performing assets ratio edged up slightly to 0.53% from 0.52% on a quarter-on-quarter basis.
In absolute terms, gross NPAs declined to Rs 4,614 crore compared to Rs 4,841 crore in the previous quarter. Net NPAs rose marginally to Rs 1,427 crore from Rs 1,345.4 crore on a sequential basis.
Nearly 89% of the bank’s 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.
The bank’s credit card portfolio continued to expand, with cards in force reaching 4.3 million during the third quarter of FY26. Meanwhile, the wealth management business registered a 31% year on year growth, with assets under management rising to Rs 58,957 crore.Provisions for the quarter declined 3.7% on a sequential basis to Rs 1,398 crore from Rs 1,452 crore in the previous quarter, indicating an improvement in overall asset quality.
Also read: Sun Pharma Q3 Results: Cons PAT jumps 16% YoY to Rs 3,369 crore; revenue up 13%
Commenting on the performance, V Vaidyanathan, Managing Director and CEO, said the bank is witnessing strong business momentum across its core segments, including lending, deposits, wealth management and transaction banking.
He noted that asset quality has improved, with gross NPAs at 1.69% and net NPAs at 0.53% as of December 31, 2025. He added that the cost of funds is expected to decline further following the recent revision in savings rates, which is likely to support the expansion of the bank’s lending franchise.
The bank’s NIM or net interest margin dropped to 5.76% from 6% in the corresponding period of the previous financial year.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)