IDFC First Bank

NIM improved sequentially in Q3 FY26 to 5.76% from 5.59% in Q2 FY26, moving closer to the Q4 target of 5.8%. (1 in progress, 1 exceeded across 2 tracked commitments)

The CD ratio has reached the target 'early 90s' range, standing at 93.9% as of Dec-25. (1 met, 1 in progress across 2 tracked commitments)

MFI stress is showing clear signs of stabilization with the SMA pool declining 32% QoQ and gross slippages reducing from Rs. 249 Cr to Rs. 153 Cr. (1 in progress across 1 tracked commitment)

The full-year credit cost for FY26 stood at 2.13%, slightly missing the upper end of the 2.05%-2.1% guidance range. (1 missed across 1 tracked commitment)

The Bank expects Assets Operating Profits % to increase as current repo rate cuts have been fully passed on and portfolio mix stabilizes. — target: Increase in Operating Profit %

Retail Finance continues to expand, reaching a 58% share of the total loan book with 17.4% YoY growth, driven by mortgage and vehicle loans. (5 expanding across 3 engines)

The bank is shifting its control environment to include AI-based verification for physical transactions to prevent future manual fraud and collusion. (1 new)

Asset quality saw a marginal uptick in Gross NPA (GNPA) to 1.97%, primarily driven by the MFI segment and one specific corporate case (ATM service provider). Provision coverage remains stable and healthy. (2 stable)

The bank's buffer remains stable and strong with a Provision Coverage Ratio of 72.3%, despite a marginal increase in NPAs. (3 stable, 1 expanding)

The Credit-to-Deposit (CD) ratio is being actively managed downwards to improve liquidity, falling from 98.1% to 93.4%, with a long-term target in the 80s. (1 shifted)

The bank's cost of funds is steadily converging toward the industry average, having reduced the premium paid over other scheduled commercial banks from 280 bps to 60 bps. (2 steady, 1 reversing, 1 accelerating across 4 signals)

Asset quality has reached a historic best, with the percentage of bad loans (GNPA) falling to its lowest level since the bank was formed. — Gross NPA Ratio: -26 bps YoY

Growth was temporarily slowed by a crisis in the microfinance (MFI) industry, leading to a sharp reduction in that specific loan book, though other segments compensated for the drop. — Micro-finance Loans: -30.4% YoY

Loan growth is accelerating as the bank exits its 'stabilization' phase, with the portfolio reaching Rs. 2,53,233 Cr. Growth is driven by retail and business finance, which now dominate the mix. (1 accelerating, 1 steady across 2 signals)

Cost of funds is declining (down 9 bps sequentially to 6.42%) as the bank aggressively cuts fixed deposit rates by up to 115 basis points to align with large peers. (1 accelerating across 1 signal)

NIM has compressed further to 5.71% from 5.95% in the previous quarter, intensified by the passing on of repo rate cuts to customers while deposit repricing lags. (3 intensifying, 2 easing)

The risk is being resolved through a significant capital raise. While the current CET-1 is 12.80%, a fresh capital raise of INR 7,500 crores is underway. (2 easing, 1 intensifying, 1 resolved)

The CET-1 ratio declined from 14.23% in Dec-25 to 13.73% in Mar-26, and Total CRAR fell from 16.22% to 15.60% QoQ. (1 intensifying)

The C:I ratio remains high at 74% (excluding trading gains), showing a slight increase from the previous year's average, though management targets a reduction to 65% by FY27. (4 stable, 1 easing)

Management emphasizes that the bank remains 'well capitalized' and maintains capital adequacy significantly above regulatory requirements to subsume the impact of the fraud incident. (1 stable)