IDFC First Bank reported a 36 percent QoQ decline in profit in the fourth quarter of FY26, following a significant financial impact from the bank fraud incident at its Chandigarh branch. The private sector lender posted a standalone profit of Rs 319 crore in Q4 FY26. 

On a yearly basis, the bank’s net profit was up 5 percent against a profit of Rs 304 crore in Q4 FY25. 

Regarding the incident in Chandigarh, the Bank said that it has fully expensed the impacted amount in Q4 FY26, resulting in a post-tax impact of Rs. 483 crores. Earlier this quarter, IDFC FIRST Bank detected a Rs 590 crore fraud at the Chandigarh branch, involving forged documents and unauthorized transfers from Haryana government accounts.

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“Management is reasonably certain that no further material financial adjustments are required beyond those already recognised”, IDFC First Bank said in a statement. 

IDFC First Q4 business 

“The asset quality of the bank remains stable. We have always mentioned that the asset quality of all businesses continues to perform well, except for the micro-finance book, which was an issue for the entire industry in FY25 and FY26,”, V Vaidyanathan, MD and CEO of IDFC First Bank, said in a statement.

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IDFC First Bank’s customer deposits grew by 17.3 percent YoY to Rs 2,84,453 crore in Q4 FY26, compared to customer deposits of Rs 2,42,543 crore in the corresponding quarter of the previous fiscal year. 

The bank reported a 20 percent YoY growth in its loans and advances in the March quarter. Its loans and advances stood at Rs 2,90,278 crore in Q4 FY26, compared to Rs 2,41,926 crore in Q4 FY25. 

IDFC First Bank Q4 margin

IDFC First Bank’s Net Interest Margin declined 2 bps during the quarter. Its NIM stood at 5.93 percent at the end of the March quarter. 

As for the asset quality, IDFC First Bank’s Net NPA improved by 5 bps to 0.48 percent in Q4. 

“The provisions during Q4 FY26 have come down to the lowest level of two years, at 1.63% of loans, which is equivalent to 1.18% of assets. The first month of Q1FY27 has started strong for deposits, and the bank is confident of growing its deposit business healthily in line with past trends.”, MD and CEO Vaidyanathan said.