Costs and provisions down, IDFC Bank will continue to bolster earnings: V Vaidyanathan, MD & CEO

IDFC First Bank MD and CEO V Vaidyanathan discusses the bank's highest-ever quarterly profit, driven by falling provisions on improving asset quality and a 45 basis point decline in cost of funds. The bank is guiding for credit costs of 1.5% to 1.6% for the year, down 50 bps, on a Rs 3 lakh crore loan book, with real NIM at 5.9% in Q1FY27 and expected to remain around 5.8% for FY27. The bank has created a Rs 500 crore precautionary provision and aims to capture about 2.5% of NRI inflows under the FCNR(B) deposit scheme.