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IDBI Bank Q4 Profit Slips 5% to Rs 1,943 Crore, NII Jumps 11.7%

IDBI Bank reported a 5% decline in net profit for Q4 FY26 to Rs 1,943 crore from Rs 2,051 crore a year ago. Net interest income rose 11.7% to Rs 7,798 crore, driven by healthy loan growth. Asset quality improved with gross NPAs falling to 2.32% from 2.57% sequentially. The bank's capital adequacy ratio strengthened to 26.65%, providing a strong buffer for future expansion.

Key Points: IDBI Bank Q4 Profit Dips 5%, NII Rises

  • Net profit fell 5% to Rs 1,943 crore
  • NII up 11.7% to Rs 7,798 crore
  • Gross NPAs declined 4% to Rs 6,028 crore
  • Capital adequacy ratio improved to 26.65%
2 min read

IDBI Bank clocks 5 pc drop in Q4 profit, NII jumps

IDBI Bank reported a 5% decline in Q4 net profit to Rs 1,943 crore, while net interest income jumped 11.7% to Rs 7,798 crore. Asset quality improved.

"The bank delivered a positive trend on a sequential basis - Stock exchange filing"

Mumbai, April 30

IDBI Bank on Thursday reported a 5 per cent decline on its net profit for the fourth quarter ended March 31 to Rs 1,943 crore.

The bank clocked a net profit of Rs 2,051 crore in the corresponding quarter of the previous financial year (Q4 FY25), according to its stock exchange filing.

It reported 11.7 per cent year-on-year (YoY) jump in its net interest income to Rs 7,798 crore in Q4 FY26, compared to Rs 6,978 crore in year-ago period.

However, operating performance remained under some pressure, with pre-provisions operating profit (PPOP) falling 4.73 per cent to Rs 3,043.38 crore compared to Rs 3,194.81 crore in the year-ago period.

On the asset quality front, the bank delivered a positive trend on a sequential basis. Gross non-performing assets (NPAs) declined 4.02 per cent to Rs 6,028.12 crore in the March quarter from Rs 6,280.94 crore in the December quarter.

Net NPAs also dropped 10.67 per cent to Rs 379.90 crore from Rs 425.28 crore, as per its stock exchange filing.

In percentage terms, gross NPA ratio improved by 25 basis points to 2.32 per cent, while net NPA ratio eased to 0.15 per cent from 0.18 per cent in the previous quarter.

Business growth remained healthy during the quarter. Total deposits rose 12 per cent year-on-year to Rs 3,47,163 crore as of March 31, compared to Rs 3,10,212 crore a year ago.

CASA deposits grew 7 per cent to Rs 1,54,816 crore, although the CASA ratio moderated to 44.59 per cent from 46.55 per cent last year.

The bank's lending book also expanded steadily, with net advances increasing 16 per cent year-on-year to Rs 2,53,626 crore from Rs 2,18,399 crore.

The loan mix continued to remain retail-focused, with the corporate-to-retail ratio standing at 30:70.

Capital adequacy remained robust, providing a strong buffer for future growth. The capital adequacy ratio (CRAR) improved to 26.65 per cent as of March-end 2026 from 25.05 per cent a year ago, while Tier 1 capital rose to 25.56 per cent from 23.51 per cent.

- IANS

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Reader Comments

A
Aditi M
The NII jump is encouraging but operating profit decline worries me. Banks in India are facing margin pressure across the board. Still, asset quality improvement (both gross and net NPA falling) is a big positive. With RBI's stricter norms, this is good housekeeping. Thoda aur focus on cost efficiency would help!
S
Sarah B
As someone tracking PSU bank turnarounds, IDBI is actually doing decently. Net NPA at 0.15% is almost negligible! The deposit growth of 12% and advance growth of 16% show strong business momentum. The 5% profit dip is likely due to provisions or one-off items. Let's see the full year numbers.
V
Varun X
IDBI continues to clean up its balance sheet well. Gross NPA down to 2.32% from 6%+ a few years ago is a remarkable recovery story. But I hope they don't get too aggressive on retail lending - we saw what happened with unsecured loans elsewhere. Maintain quality over quantity please! 🙏
J
James A
Interesting to see a PSU bank with such high retail focus (70%). Most Indian PSUs are corporate-heavy. The CRAR of 26.65% is incredibly healthy - well above regulatory minimum. Profit dip seems temporary if asset quality continues improving. Would be good to see ROA and ROE figures too.
P
Priya S
My parents have been IDBI customers for years. Happy to see the bank turning around after the LIC rescue. The retail loan mix is good for common people like us - home loans, car loans etc. Just wish the customer service at branches

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