Please find enclosed Earnings Call Transcript for Q2 FY27

IDFCFIRSTBANK/SD/170/2026-27 October 30, 2026 National Stock Exchange of India Limited BSE Limited Mumbai 400 051 Mumbai 400 001 NSE - Symbol: IDFCFIRSTB BSE - Scrip Code: 539437 Dear Sir / Madam, Sub.: Transcript of Earnings Call for the quarter and half year ended September 30, 2026 Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, please find enclosed the transcript of the earnings call for the quarter and half year ended September 30, 2026, conducted after the meeting of Board of Directors held on October 24, 2026, for your information and records. The above information is also available on the Bank’s website at the following link: IDFC FIRST Bank - Transcript of the earnings call Q2 FY 2027 Request you to take the above on record. Thanking You, Yours faithfully, For IDFC FIRST Bank Limited Satish Gaikwad General Counsel and Company Secretary IDFC FIRST Bank Limited Corporate Office: IDFC FIRST Bank Tower, (The Square), C-61, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. Tel: +91 22 7132 5500 Registered Office: KRM Towers, 7th Floor, No.1, Harrington Road, Chetpet, Chennai - 600 031, Tamil Nadu. Tel: +91 44 4571 6477 CIN: L65110TN2014PLC097792 | E-mail: bank.info@idfcfirstbank.com | Website: www.idfcfirst.bank.in IDFC FIRST Bank Limited Q2 FY27 Earnings Conference Call October 24, 2026 MANAGEMENT: MR. V. VAIDYANATHAN – MANAGING DIRECTOR AND, CHIEF EXECUTIVE OFFICER MR. SUDHANSHU JAIN – CHIEF FINANCIAL OFFICER AND HEAD OF CORPORATE CENTER MR. SAPTARSHI BAPARI – HEAD INVESTOR RELATIONS & ESG Page 1 of 23 IDFC First Bank Limited October 24, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the IDFC FIRST Bank's Q2 FY '27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Saptarshi Bapari, Head, Investor Relations and ESG. Thank you, and over to you, Mr. Bapari. Saptarshi Bapari: Thanks, Dorwin. Thanks, everyone, for joining the call. We'll have the presentation first from Sudhanshu, who is our CFO, and then we'll have some brief comments from Vaidya, and then we can open the house for the Q&A. So I'll now hand over to Sudhanshu for his opening remarks. Sudhanshu Jain: Yes. Thank you, Saptarshi. First of all, good evening, everyone. It's a pleasure speaking to all of you. I will -- in terms of sequencing, I'll maybe first cover a few business numbers and then later on take on the profitability part. So business momentum continues to be quite strong. During the quarter, we saw a healthy growth in both advances and deposits. However, the key development during the quarter was the FCNR mobilization under the RBI scheme. So let me start with giving some numbers first on that front. During the quarter, the bank mobilized INR34,390 crores, which is about USD3.6 billion of FCNR(B) deposit under this scheme. This constituted about 10% of the overall deposit that we have at September 30, 2026. Against this, we also extended leverage of USD2.6 billion, which is in about INR25,000 crores to NRI customers. If we see on the basis of these loans, then this constituted about 7% of the overall loan book at September 30, 2026. At mobilization of USD3.6 billion, the bank garnered about 2.7% of the overall mobilization the country received under this scheme. This is about 1% higher than our NRI deposit share, which was this pre-FCNR announcement. As part of the exercise, we also obtained our debut international rating from S&P and CareEdge. Happy to report that we got an investment-grade rating for the bank on this front. On the back of the ratings, we also did a debut bond issuance. We almost raised close to $1 billion of bonds. The actual number was US$ 950 million, and these were raised from the offshore IBU branch from marquee international investors. Since this was a specific opportunity during the current quarter, wherever relevant, I will try to give out numbers with and without FCNR to keep underlying trends comparable with the previous quarters. Moving on to loans. That registered a strong growth of 30.1% on a Y-o-Y basis and 13.6% on a Q-on-Q basis, including FCNR, and that book has now reached about INR3.47 lakh crores. If we exclude the FCNR(B) backed loans, the loan assets on a gross of IBPC basis grew by 22.2% on a Y-o-Y basis and 5.7% on a Q-on-Q basis and was about INR3.29 lakh crores. The incremental growth on the loan side during the quarter was primarily driven by mortgage, vehicle loans, consumer loans and a slightly faster growth in business banking and wholesale loans, which individually grew by more than 30% on a Y-o-Y basis. The MFI book saw a marginal increase during the quarter. That book now stands at INR6,825 crores and about 2% of the overall funded assets. 97% of the book is now covered under the Page 2 of 23 IDFC First Bank Limited October 24, 2026 CGFMU scheme. With respect to credit cards, happy to report that the cards in force crossed 5 million during the quarter. The book on an outstanding basis stood at INR9,875 crores, and the credit card spends grew at a healthy pace of about 15% on a Y-o-Y basis. We have given more details around the asset growth on Slide number 31 in the investor presentation. Moving on to asset quality. There also, we saw an improved trajectory across GNPA, net NPA, SMA across product classes. We give a fair degree of disclosure in the investor presentation around these numbers. On a headline basis, the gross NPA ratio of the bank improved by about 19 basis points from 1.51% reported in Q1 to 1.32% in Q2 and by 9 bps if we exclude FCNR leverage from the denominator. Similarly, on net NPA, we saw an improvement of 4 basis points to 0.40%. If we exclude the FCNR backed loans, the net NPA ratio would be 0.43% as against 0.44% reported in the previous quarter. Further drill down, if we look for now the retail, agri and the MSME book, the GNPA ratio here improved from 1.4% to 1.24% and to 1.36% if we exclude again FCNR backed loans from the equation. Moving on, the collection efficiency for the current bucket for retail continues to hold well. It has been now stable around the 99.5% for many quarters. The SMA-1 and SMA-2 book for the retail was at 0.72% in Q2 from 0.77%, which we saw in the previous quarter. SMA 1 and 2 for microfinance further normalized to 0.6% from 0.7% in the previous quarter. At an overall bank level, SMA 1 and 2 reduced by 4 basis points to 0.58%. The net slippage ratio for the quarter was stable at about 1.6%. Moving on to deposits. Total deposits, which is customer deposits plus certificate of deposits that reached at INR3.48 lakh crores. The growth was about 25.9% on a Y-o-Y basis and 11.8% on a Q-on-Q basis. If I just talk of customer deposits that has crossed INR3.4 lakh crores. It grew by 26.9% on a Y-o-Y basis and 14% on a Q-on-Q basis. This also included FCNR. And if we exclude FCNR deposits, customer deposits grew by 14.1% on a Y-o-Y basis. But here is where we slightly calibrated the growth because we got strong FCNR inflows during the current quarter. So this was more a conscious strategy which we followed during the course of the quarter. As a result, we did reduce the bulk deposit ratio from 17.1% to 13.9% in the current quarter and also repaid certain certificate of deposits as it came up for maturity. If I talk of CASA deposits, that grew to now INR1.66 lakh crores. The growth on a Y-o-Y basis was 19.8%, while the CASA ratio for the quarter came to 47.6%, this was lower because of the FCNR deposit mobilization in the denominator. The average CASA ratio still, I would say, was healthy at about 48.4%. If I move on to profitabilit [Showing first 8,000 characters — download PDF for full document]