Bank Q2 Results: IDFC First Profit Nearly Triples, Bank of India Up 25%, AU SFB Up 53%

Three lenders, three very different stories. IDFC First Bank nearly tripled its profit, Bank of India grew 25% while setting aside twice as much for bad loans, and AU Small Finance Bank posted a 53% jump. This roundup of bank Q2 results covers the numbers from Thursday, 23 October, and Saturday, 24 October 2026, for the quarter ended 30 September, and what customers of each bank should take from them. Kotak Mahindra Bank also reported on Saturday; we cover it separately.

Bank Q2 results at a glance

Gross NPA figures in brackets are for September 2025. IDFC First figures are from the bank’s results release filed with BSE. Bank of India figures are as reported by BusinessLine and AU Small Finance Bank figures as reported by PTI in The Hindu; we could not open those two banks’ filings directly.

IDFC First Bank: profit back above ₹1,000 crore

IDFC First Bank reported a profit after tax of ₹1,045 crore, up 196.5% year on year, the second quarter in a row above ₹1,000 crore. The low base matters: a year ago, profit was ₹352 crore. Net interest income rose 21% to ₹6,184 crore, and provisions fell about 22% to ₹1,137 crore, BusinessLine reported.

• Deposits: up 25.9% to ₹3,48,583 crore, according to the bank.
• NRI deposits: the bank raised ₹34,390 crore (about US$3.6 billion) in FCNR(B) deposits in the quarter, despite having no branch abroad. It says the full cost of this money is about 1% lower than domestic FDs.
• Loans: up 30.1% to ₹3,46,913 crore including FCNR(B)-backed loans; 22.2% excluding them.
• Asset quality: gross NPA 1.32%, net NPA 0.40%.
• Rating: S&P Global Ratings gave the bank a debut investment-grade rating of BBB-.

The bank says the dollar deposits are “optically NIM-dilutive” because they expanded the balance sheet. Its average CASA ratio was 48.4%, down from 50.1%.

Bank of India: profit up, provisions up more

Bank of India, India’s sixth-largest public sector bank, reported standalone profit of ₹3,202 crore, up 25%, on Thursday evening. Net interest income rose 18.5% to ₹7,007 crore and other income rose 25% to ₹2,770 crore, helped by recoveries from written-off loans, as reported by BusinessLine.

NPA provisions more than doubled to ₹1,010 crore from ₹472 crore. Gross NPA still improved to 1.60% from 2.54%, and net NPA to 0.42%. Global deposits grew 21.6% to ₹10,37,530 crore and global advances 20.58% to ₹8,55,071 crore.

One point for borrowers: MD and CEO Rajneesh Karnatak said 66% of the bank’s advances are repo-linked, so the recent repo rate increase will help its margin. On deposits, he said the bank expects “some increase in the deposit rates. But that will take its own time.”

CASA fell to 34.16% of domestic deposits from 39.39% a year ago, meaning more customers are moving money into higher-paying term deposits. A lower CASA share usually raises a bank’s cost of funds, because term deposits pay more than savings accounts. That is one reason banks are keen to raise cheaper money elsewhere, such as through NRI dollar deposits, and one reason savers who shift idle balances into FDs earn more. This is our general reading, not the bank’s.

AU Small Finance Bank: 53% profit growth

AU Small Finance Bank reported a net profit of ₹858 crore, up 53% from ₹561 crore, PTI reported. Total income rose to ₹6,382 crore from ₹5,224 crore, and interest income to ₹5,612 crore from ₹4,511 crore. Gross NPA eased to 1.99% from 2.41%.

Small finance banks often pay higher FD rates than large banks. Deposits in them are insured by DICGC up to ₹5 lakh per depositor per bank, the same as at any other bank; our DICGC guide explains the limit.

The common thread: NRI dollar deposits and cleaner books

Both IDFC First and Kotak raised large FCNR(B) deposits this quarter through RBI’s swap window, which the RBI Bulletin said boosted reserves. All three banks here reported lower gross NPAs than a year ago. Our market report covers how bank stocks traded before these results; shares react on Monday, 26 October.

What customers should do

• Depositors: Bank of India’s CEO expects deposit rates to rise over time. If you are renewing an FD now, a shorter tenure or a ladder keeps options open. This is our general suggestion.
• Repo-linked borrowers: your EMI or tenure follows the repo at your loan’s reset date, whatever the bank’s quarterly profit.
• Everyone: a profit jump or fall in one quarter is not a reason to move your account. Look at capital and asset quality over several quarters.

We do not give buy or sell views on bank shares.

FAQs

What was IDFC First Bank’s Q2 profit?

₹1,045 crore, up 196.5% year on year, according to the bank.

Did Bank of India’s bad loans rise?

No. Gross NPA fell to 1.60%, but the bank set aside more money for bad loans, as reported by BusinessLine.

Takeaway: These bank Q2 results show profit growth and lower NPAs at IDFC First, Bank of India and AU Small Finance Bank, with IDFC First boosted by NRI dollar deposits. Depositors may see rates edge up over time; borrowers’ EMIs still follow the repo.