IDBI Bank Q1 net profit rises 5% to Rs 2,115 crore; advances grow 22%
New Delhi, July 18
IDBI Bank reported a 5 per cent year-on-year rise in net profit to Rs 2,115 crore for the first quarter of FY27, supported by double-digit growth in net interest income and strong credit growth, while asset quality remained stable with gross non-performing assets improving to 2.30 per cent.
According to the bank's Q1 FY27 press release, "Net Profit surges to ₹2,115 Crore for Q1 of FY27 registering a YoY growth of 5%, and QoQ growth of 9%." The bank had reported a net profit of Rs 2,007 crore in the corresponding quarter of the previous financial year.
The bank's net interest income (NII) rose 10 per cent year-on-year to Rs 3,486 crore from Rs 3,166 crore a year earlier.
Business growth remained robust during the quarter, with total business increasing 15 per cent year-on-year to Rs 5,84,725 crore. Total deposits also rose 10 per cent to Rs 3,25,757 crore, while net advances registered a strong 22 per cent growth to Rs 2,58,968 crore, indicating continued momentum in loan growth.
On the asset quality front, the bank said "Gross NPA down to 2.30%, YoY reduction by 63 bps," while "Net NPA down to 0.16%, YoY reduction by 5 bps." On a sequential basis, gross NPA improved marginally from 2.32 per cent, while net NPA stood at 0.16 per cent against 0.15 per cent in the previous quarter. The Provision Coverage Ratio remained strong at 99.31 per cent.
The bank also strengthened its capital position during the quarter. Its Capital Adequacy Ratio (CRAR) improved to 26.92 per cent from 25.39 per cent a year ago, while the Credit-Deposit Ratio improved to 79.50 per cent from 71.40 per cent a year earlier. Return on Assets (ROA) stood at 1.89 per cent.
However, net interest margin (NIM) moderated to 3.61 per cent from 3.68 per cent in the year-ago quarter, while the cost of deposits declined by 25 basis points year-on-year to 4.59 per cent, reflecting lower funding costs.
The bank also highlighted that its corporate and retail advances portfolio mix stood at 30:70 as of June 30, 2026.
— ANI
Reader Comments
Net profit up but only 5% - in this booming economy, I expected double-digit growth. Deposit growth of 10% is decent but advances growing at 22% is a red flag for me... CD ratio at 79.5% is okay but if deposits don't catch up, liquidity could become an issue. Let's see if this is sustainable. Also, CRAR at 26.9% is excellent though. Mixed bag.
Finally some good news from PSU banks! Gross NPA down to 2.30% and net NPA at 0.16% - that's world-class asset quality. Provision coverage ratio at 99.31% means they're well prepared for any shocks. The corporate to retail mix of 30:70 is also very healthy. IDBI has really turned around since the LIC takeover. Jaise angrezi mein kehte hain, "turnaround story"! 😊
I work in banking and these numbers are solid. NII growth of 10% is good, and cost of deposits declining by 25 bps is impressive in this high-interest rate environment. But NIM falling to 3.61% from 3.68% needs monitoring. On the positive side, ROA at 1.89% is very healthy for any Indian bank. Good quarter overall, but I'd like to see NIM stabilization in coming quarters.
Interesting numbers from IDBI Bank. The 5% profit growth in Q1 is decent but not spectacular. What stands out is the 22% advance growth - that's aggressive lending in a market where NPAs are still a concern for many banks. The 30:70 corporate-retail mix is smart though; retail loans typically have better diversification. The capital adequacy ratio of 26.9% is very comfortable. Still, I wonder how much of this growth is sustainable given the global economic uncertainty.
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