IDBI Bank Achieves 98% Increase in Net Profit to Rs 3,627 Crore for Q2 FY2026

IDBI Bank released its financial results for the quarter and a half ending on September 30, 2025. The bank's net profit surged by 98% to Rs 3,627 crore in Q2-FY2026 from Rs 1,836 crore in Q2-FY2025. This increase includes a profit of Rs 1,699 crore from selling an investment in NSDL. Operating profit also rose by 17% to Rs 3,523 crore in Q2-FY2026 compared to Rs 3,006 crore in the previous year.

In terms of asset quality, IDBI Bank reported a Gross Non-Performing Asset (NPA) ratio of 2.65% as of September 30, 2025, down from 3.68% a year earlier. The Net NPA ratio was slightly higher at 0.21% compared to 0.20% the previous year. The bank's provision coverage ratio, including technical write-offs, stood at 99.26%, a slight decrease from 99.42% in the same period of the previous year.

The bank's net interest income for Q2-FY2026 was Rs 3,285 crore, down from Rs 3,875 crore in Q2-FY2025. Despite this decrease, the net interest margin (NIM) remained at a healthy 3.71%. Return on assets (ROA) improved significantly by 158 basis points to reach 3.55%, up from 1.97% in the same quarter last year.

Return on Equity (ROE) also showed improvement, rising to 29.64% in Q2-FY2026 from 20.35% in Q2-FY2025. The cost of funds decreased slightly to 4.82% from 4.87%, while the cost of deposits increased marginally to 4.69% from 4.65%. These figures indicate a stable financial position for the bank during this period.

Total deposits at IDBI Bank surpassed Rs 3 trillion, reaching Rs 3,03,510 crore as of September 30, 2025, marking a year-on-year increase of 9%. On the same date last year, deposits were Rs 2,77,602 crore. The CASA (Current Account Savings Account) stood at Rs 1,39,036 crore with a CASA ratio of 45.81%, compared to Rs 1,33,639 crore and a ratio of 48.14% on September 30, 2024.

Net advances grew by an impressive 15% year-on-year to Rs 2,30,220 crore as of September 30, 2025, up from Rs 2,00,944 crore at the same time last year. This growth reflects the bank's strong lending activities and its ability to manage its loan portfolio effectively.

The financial results highlight IDBI Bank's robust performance over the past year. With significant increases in net profit and operating profit alongside improved asset quality metrics and deposit growth, the bank is well-positioned for future growth and stability.