Noida, Oct 18 (APAC Media): IDBI Bank on Saturday reported a 39 per cent year-on-year decline in net profit to Rs 2,205 crore for the second quarter, compared with Rs 3,627 crore in the corresponding period last year, the bank said.
IDBI Bank’s net interest income (NII) increased 29 per cent year-on-year to Rs 4,228 crore in the second quarter of FY27, up from Rs 3,285 crore in the corresponding period last year.
The lender reported a 33 per cent quarter-on-quarter rise in operating profit to Rs 2,893 crore in the second quarter of FY27, compared with Rs 2,168 crore in the preceding quarter.
Net interest margin (NIM) improved to 4.11 per cent in Q2 FY27 from 3.71 per cent in the corresponding quarter last year and 3.61 per cent in the preceding quarter. This marked an improvement of 40 basis points year-on-year and 50 basis points sequentially.
IDBI Bank said its net profit in the second quarter of FY26 included a one-time gain of Rs 1,699 crore from the sale of its strategic investment in NSDL. Excluding this gain, net profit and operating profit in Q2 FY27 grew 14 per cent and 59 per cent year-on-year, respectively.
The bank’s cost of deposits declined to 4.55 per cent in Q2 FY27 from 4.69 per cent a year earlier and 4.59 per cent in Q1 FY27. The cost-to-income ratio stood at 48.17 per cent, while return on assets (ROA) was 1.83 per cent.
Business growth
IDBI Bank’s total deposits grew 17 per cent year-on-year to Rs 3,55,684 crore as of September 30, 2026, compared with Rs 3,03,408 crore a year earlier.
Current account and savings account (CASA) deposits increased 12 per cent to Rs 1,55,877 crore from Rs 1,38,934 crore in the corresponding period last year. The CASA ratio stood at 43.82 per cent at the end of the September quarter.
Net advances rose 18 per cent year-on-year to Rs 271,533 crore as of September 30, 2026, against Rs 230,220 crore a year earlier. Corporate and retail loans accounted for 31 per cent and 69 per cent, respectively, of the bank’s gross advances portfolio.
Asset quality improves
The bank’s asset quality improved during the quarter, with the gross non-performing asset (NPA) ratio declining to 2.12 per cent as of September 30, 2026, from 2.65 per cent a year earlier.
The net NPA ratio fell to 0.17 per cent from 0.21 per cent in the year-ago period. The provision coverage ratio, including technical write-offs, stood at 99.24 per cent. The bank said the ratio had remained above 99 per cent since September 2023.
Capital position strengthens
IDBI Bank’s capital adequacy ratio (CRAR) improved to 27.10 per cent as of September 30, 2026, compared with 25.39 per cent a year earlier. Tier-I capital stood at 26.55 per cent, up from 23.79 per cent in the corresponding period last year.
Risk-weighted assets stood at Rs 237,228 crore at the end of the September quarter, compared with Rs 208,546 crore a year earlier and Rs 230,728 crore as of June 30, 2026.
Key developments
During the quarter, IDBI Bank launched a salary account package for central government employees in the presence of senior officials from the Department of Financial Services. The offering aims to provide enhanced banking services and value-added benefits to government employees.
The bank also received the 17th Development Leadership Award 2026 from the Agriculture Today Group for its contribution to agricultural finance, rural development and financial inclusion.
Additionally, it won the Finnoviti 2026 Award for Integrated Audit from Banking Frontiers for its Integrated Audit Management Solution, i-Netra, which uses technology to strengthen audit processes, risk oversight and governance.
-ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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