Private lender IDFC First Bank posted a strong business growth in the fiscal second quarter ended September, with loan growth rising 20.4% year-on-year and deposits up 17%.

Loans and advances stood at Rs 3.14 lakh crore as on 30 September 2026, according to provisional business update figures released by the bank.

Total deposits climbed to Rs 3.24 lakh crore, while customer deposits, excluding Certificates of Deposit, increased 17.6% to Rs 3.17 lakh crore.

The bank's CASA (current account savings account) ratio expanded to 51.3%, compared with 50.8% in the previous quarter and 50.1% a year earlier. 

The lender mobilised Rs 34,390 crore via foreign currency non-resident (Bank), or FCNR(B), deposits. Of this, its International Banking Unit (IBU) extended Rs 24,885 crore of leverage to non-resident Indian (NRI) customers, which was subsequently booked as FCNR(B) deposits in the domestic balance sheet.

The bank said strong FCNR(B) deposit flows during the quarter resulted in excess liquidity. It consequently slowed deposit growth and reduced Certificates of Deposit to manage surplus liquidity.

Bulk rupee term deposits of Rs 3 crore and above as a percentage of total deposits fell to 13.9% as of 30 September, from 17.1% on 30 June and 18.2% a year earlier.

The average liquidity coverage ratio (LCR) for the second quarter of FY27 stood at 125%, compared with 116% in Q1.

The bank said its asset quality continued to remain strong.