Microfinance Stress Under Control, Deposit Rates Likely to Remain Unchanged IDFC First Bank’s MD and CEO, V Vaidyanathan, stated that the bank will not raise deposit rates in the near term following significant cuts across all product categories last quarter. He emphasized that the bank’s focus remains on expanding its loan portfolio, particularly in mortgage, vehicle, and consumer lending, while also aiming to strengthen its rural banking and priority sector loan book. Vaidyanathan noted that stress in the microfinance segment is now under control, with the bank implementing measures to limit the number of loans a borrower can hold concurrently. The bank’s performance in the quarter saw a representative core profit of ₹746 crore, a 145% increase compared to the same period last year. However, Vaidyanathan acknowledged that the growth was impacted by a fraud incident at the Chandigarh branch, which was fully accounted for in the financials. The recovery process is ongoing, with investigations and legal proceedings underway. He also highlighted that one-time income tax refunds and improved collections in the JLG or MFI portfolio contributed to the normalization of profits. Regarding the net interest margin (NIM), Vaidyanathan clarified that the reported figure of 5.83 bps was adjusted for fewer days in Q4FY26, and the bank expects NIM to stabilize around the FY17 level of 5.75% for FY27. The bank is shifting focus toward low-yield, low-credit-cost segments as part of its strategic evolution. Loan growth has been robust, driven primarily by mortgage, vehicle, consumer, wholesale, and business banking loans, which accounted for 87% of incremental growth in the past year.#idfc_first_bank #v_vaidyanathan #chandigarh_branch #jlg_mfi_portfolio #fy27
