Earnings call transcript: IDFC First Bank posts strong Q2 2026 profit growth

Mumbai-based AU Small Finance Bank reported a 53% increase in profit after tax (PAT) to ₹858 crore in the second quarter of fiscal year 2027, compared to ₹561 crore in the same period last year. The bank's Net Interest Income (NII) rose by 32% year-on-year to ₹2,820 crore, while its Net Interest Margin (NIM) improved by 33 basis points to 5.8%.

Core other income grew by 16% year-on-year to ₹736 crore, driven by credit card and transaction banking fees. Total deposits expanded by 28.6% year-on-year and 8.1% quarter-on-quarter to ₹1,70,460 crore. The CASA deposits rose by 29.1% year-on-year and 10.8% quarter-on-quarter to ₹50,289 crore, with a CASA ratio of 29.5%.

The gross loan portfolio increased by 25.1% year-on-year to ₹1,53,769 crore, and gross advances were up by 27.9% to ₹1,50,291 crore. The Gross Non-Performing Asset (GNPA) ratio improved by 42 basis points to 1.99%, and the Net Non-Performing Asset (NNPA) ratio improved by 7 basis points to 0.81%.

For the first half of fiscal year 2027, NII grew by 32% year-on-year to ₹5,516 crore, and the bank's Core Pre-Provisioning Operating Profit (PPoP) expanded by 36% to ₹2,906 crore. PAT for H1 FY27 increased by 45% year-on-year to ₹1,654 crore. ICRA Ratings upgraded the bank's long-term credit rating outlook to 'Positive' from 'Stable', reaffirming its 'AA' long-term rating.