Archive · 28 Jul 2026
Mid-cap banks post record profits
Two mid-cap banks in India, IDFC First Bank and Federal Bank, have reported record profits for the June 2026 quarter.
IDFC First Bank saw a 21% increase in loans and a 132.7% rise in net profit, while Federal Bank had a 15% loan growth and a 36.6% increase in net profit.
Both banks are trading at a discount compared to larger peers like Kotak Mahindra Bank.
Investors are watching closely to see if these banks can maintain their strong performance.
The banks are focusing on high-margin loans and improving asset quality to ensure continued growth and profitability.
IDFC First Bank reported a 21% y-o-y increase in loans and a 132.7% rise in net profit.
Federal Bank saw a 15% y-o-y increase in loans and a 36.6% rise in net profit.
Both banks are trading at a significant discount to larger peers like Kotak Mahindra Bank.
Strong loan growth and improved asset quality contributed to the record profits.
Investors are monitoring the banks' performance to see if they can sustain this growth.
- Who
- IDFC First Bank, Federal Bank, Kotak Mahindra Bank
- What
- Record profits and strong loan growth in mid-cap banks
- When
- June 2026 quarter
- Where
- India
- Why
- Strong credit expansion, high-margin loans, and improved asset quality
Investor Perspective
Bank Management Perspective
Valuation Discount
Investor Perspective
Investors see a significant discount in mid-cap bank valuations compared to larger peers like Kotak Mahindra Bank, presenting a potential buying opportunity.
Bank Management Perspective
Bank management focuses on maintaining operational performance and growth to justify current valuations and attract investors.
Credit Growth
Investor Perspective
Investors are keen on sustained credit growth and high-margin loan portfolios to ensure continued profitability.
Bank Management Perspective
Bank management emphasizes strong loan growth and asset quality to support long-term financial health and shareholder value.
- IDFC First Bank Loan Growth
- 21% y-o-y
- Federal Bank Loan Growth
- 15% y-o-y
- Kotak Mahindra Bank Loan Growth
- 15% y-o-y
- IDFC First Bank Net Profit Growth
- 132.7% y-o-y
- Federal Bank Net Profit Growth
- 36.6% y-o-y
- Kotak Mahindra Bank Net Profit Growth
- 25.6% y-o-y
- IDFC First Bank Valuation
- 1.5 times price-to-book
- Federal Bank Valuation
- 2.3 times price-to-book
- Kotak Mahindra Bank Valuation
- 2.8 times price-to-book