IDFC First Bank sees NIMs rising to 5.8% by FY26

IDFC First Bank expects its net interest margins (NIMs) to reach around 5.8% by the end of the financial year 2025-26 (FY26), said V Vaidyanathan, MD & CEO of the bank.

“Upwards of about 5.59%-5.8% is the number we are broadly working towards,” Vaidyanathan said.

He added that the bank had sharply reduced fixed deposit rates by about 100 basis points. “The fixed deposit rate usually takes about one year to 15 months to fully pass on, because that's the typical tenure of fixed deposits when they come for repricing. Whenever we reprice, we do so at a lower rate. So that has already brought down our cost of funds last quarter quite substantially. We expect it to further come down next quarter and the quarter after that,” he said.

Vaidyanathan also noted that for the first time in the bank