IDBI Bank Q1FY26 Results: Net profit rises 17% YoY to Rs 2,007 crore, NIM declines 3.68%

IDBI Bank Q1 FY26 results

IDBI Bank reported a 17 percent year-on-year rise in standalone net profit at Rs 2,007 crore for the quarter ended June 2025, up from Rs 1,719 crore in the same period last year.

Net interest margin, however, declined to 3.68 percent from 4.18 percent.

Interest earned during the quarter rose 5 percent year-on-year to Rs 7,021 crore, from Rs 6,666 crore in Q1 FY25.

The bank saw strong growth in income from advances, which increased to Rs 4,771 crore from Rs 4,424 crore a year ago.

Interest on balances with the Reserve Bank of India and interbank funds more than doubled to Rs 188 crore from Rs 81 crore.

Other income rose sharply to Rs 1,437 crore compared to Rs 805 crore in the same period last year, boosting total income to Rs 8,458 crore, up from Rs 7,471 crore in Q1 FY25.

Total expenditure rose to Rs 6,104 crore from Rs 5,396 crore in the previous year, led by a rise in interest expenses to Rs 3,855 crore and operating expenses to Rs 2,249 crore.

Despite the cost increase, operating profit grew to Rs 2,354 crore from Rs 2,076 crore.

The bank reported a net reversal in provisions of Rs 179 crore in the quarter, compared to a reversal of Rs 443 crore in Q1 FY25. As a result, profit before tax stood at Rs 2,534 crore, marginally higher than Rs 2,519 crore in the same quarter last year.

After a tax outgo of Rs 526 crore, net profit came in at Rs 2,007 crore.

Asset quality improved meaningfully.

Gross non-performing assets fell to Rs 6,385 crore, compared to Rs 7,795 crore a year ago. The gross NPA ratio improved to 2.93 percent from 3.87 percent, while net NPAs reduced to Rs 447 crore from Rs 454 crore, with the net NPA ratio at 0.21 percent versus 0.23 percent.

Return on assets rose to 2.01 percent from 1.83 percent.

The bank's provision coverage ratio, including technical write-offs, remained robust at 99.31 percent.

The capital adequacy ratio stood at 25.39 percent as of June 30, 2025, compared to 22.42 percent a year ago. CET-1 ratio improved to 23.71 percent from 20.26 percent.

The bank’s loan book grew to Rs 2,11,907 crore, up from Rs 1,94,026 crore in Q1 FY25. Deposits also increased to Rs 2,96,868 crore from Rs 2,77,548 crore, and total assets expanded to Rs 4,03,080 crore.

Shares of IDBI Bank were trading at Rs 93.35 on the NSE as of 2:30 PM IST on July 21.