IDFC First Bank Q2 Review: Yes Securities Maintains Cautious 'Add' On The Stock — Here's Why

IDFC First Bank's net interest margin was at 5.60%, down -11bps QoQ and -58bps YoY. The sequential 11 bps decline was driven by the repo rate cut, changes in asset mix, and de-growth in the MFI portfolio..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.IDFC First Bank Ltd.'s gross non-performing asset additions amounted to Rs 22.6 billion for Q2 FY26, translating to an annualized slippage ratio of 3.6% for the quarter. (Gross NPA additions had amounted to Rs 24.86 billion during 1QFY26.). Gross slippages declined 9% QoQ and net slippages fell 13% QoQ, largely driven by the MFI portfolio. The bank expects slippages to moderate going forward. Provisions for Q1 FYF26 were Rs 14.59 billion, down by -12.5% QoQ and -16.2% YoY. Sequential decline is driven by lower provisioning in the MFI book. Bank has utilized Rs 750 million from the MFI buffer provision during Q2. Post this, the bank has a contingency provision of Rs 2.4 billion for MFI. Management reiterated credit cost for FY26 is expected to be 205-210 bps..Net interest margin was at 5.60%, down -11bps QoQ and -58bps YoY. The sequential 11 bps decline was driven by the repo rate cut, changes in asset mix, and de-growth in the MFI portfolio. NIM has bottomed out in Q2 and is expected to improve in Q3 and Q4, likely recovering to 5.8% by Q4, factoring in one additional repo rate cut..Total gross funded assets grew by 5.3% QoQ and 19.7% YoY. The loan to deposit ratio was around 92.9% as of September 2025 as compared to 96.2% as of September 2024. IDFC First Bank is working on disbursing 1 million loans per month going forward. The deposits were at Rs 2,767 billion, up by 4.5% QoQ and 23.8% YoY..Click on the attachment to read the full report:.ICICI Bank Remains Motilal Oswal's Preferred 'Buy' In The Sector Post Robust Q2 Results — Check Target Price.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

IDFC First Bank Q2 Review: Yes Securities Maintains Cautious 'Add' On The Stock — Here's Why

Yes Securities maintains a cautious ‘Add’ rating on IDFC First Bank with a unchanged price target of Rs 80.

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