IDBI Bank Q1 net profit surges 17% to ₹2,007 crore on rise in other income

Private sector lender IDBI Bank posted a 17 per cent on year rise in its net profit at ₹2,007 crore for the first quarter of financial year 2026 (Q1FY26) due to a sharp rise in non-interest income comprising treasury earnings, recoveries and commissions.

 

The bank had posted a net profit of ₹1,719 crore in the same quarter of FY25 (Q1FY25).

 

However, the lender’s net interest margin (NIM) declined by 50 basis points to 3.68 per cent in Q1FY26, compared to 4.18 per cent in Q1 FY25.

 

Its net interest income (NII) too declined two per cent to ₹3,166 crore in Q1 FY26, compared to ₹3,233 crore in the same quarter a year ago, IDBI Bank said in a statement.

 

Its non-interest income rose by 78 per cent year-on-year (Y-o-Y) to ₹1,437 crore in Q1 FY26, up from ₹805 crore in Q1 FY25.

 

The bank’s stock closed 1.37 per cent down at ₹97.25 per share on BSE.

 

Advances expanded nine per cent Y-o-Y to ₹2.11 trillion at the end of Q1 FY26. The share of retail and corporate in the loan book was 70 per cent and 30 per cent, respectively, at the end of June 2025. The credit to deposit ratio stood at 71.38 per cent at the end of June 2025, up from 69.91 per cent in June 2024. 

 

Total deposits increased seven per cent Y-o-Y to ₹2.96 trillion at the end of June 2025. The share of low-cost deposits, current account and savings accounts (CASA), declined to 44.65 per cent at the end of June 2025, from 48.57 per cent a year ago.

 

The lender, which is a candidate for divestment by the government, saw a further improvement in the asset quality profile in the quarter under review.

 

Its gross non-performing assets (NPAs) declined to 2.93 per cent in June 2025 from 3.87 per cent in June 2024. Net NPAs also declined to 0.22 per cent in June 2025 from 0.23 per cent a year ago. 

 

The provision coverage ratio (PCR), including written-off accounts, stood at 99.31 per cent in June 2025 as against 99.34 per cent in June 2024.

 

The capital adequacy ratio improved to 25.39 per cent with Common Equity Tier I (CET1) of 23.71 per cent in June 2025, up from 22.42 per cent with CET1 of 20.26 per cent in June 2024.