IDFC First Bank Q2 FY27 Advances Grow 29.9% to Rs 3,38,749 Crore

Total Deposits Reach Rs 3,48,582 Crore with Strong FCNR(B) Inflows

Reader Takeaway: Robust growth in advances and deposits, balanced by strategic reduction in high-cost funding for better efficiency.

What just happened

IDFC First Bank has released its provisional financial figures for the second quarter ending September 2026. The bank recorded a significant 29.9% year-on-year growth in gross advances, reaching Rs 3,38,749 crore. Total deposits followed suit, rising 25.9% to Rs 3,48,582 crore. A major contributor was the mobilization of Rs 34,390 crore in FCNR(B) deposits during the quarter.

Why this matters

The bank is actively pivoting toward a more sustainable liability profile. By utilizing surplus liquidity from FCNR(B) inflows, the management has consciously slowed down expensive deposit growth and reduced its reliance on Certificates of Deposits (CDs). Bulk Rupee Term Deposits were cut down from 17.1% to 13.9% of total deposits, a move aimed at structurally strengthening the balance sheet and potentially protecting net interest margins (NIMs).

Operational Performance

Liquidity metrics show marked improvement, with the Liquidity Coverage Ratio (LCR) rising to 125% from 116% in the previous quarter. The domestic credit-deposit ratio (excluding the IBU branch) stands at 89.9%. Notably, the adjusted CASA ratio—which excludes leveraged FCNR(B) components—improved to 51.3%, reflecting continued success in attracting core retail customer deposits.

What to track next

Investors should look for the upcoming audited results to determine how these liquidity management strategies have impacted the bank’s core profitability and NIMs. Further tracking of asset quality metrics will be essential as the bank continues to scale its advance book.