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IDBI Bank Q3 Profit Plunges 47% QoQ Despite Strong Deposit Growth

IDBI Bank reported a sharp 46.6% sequential decline in its standalone net profit for the December quarter of FY26. The bank's core income was under pressure as net interest income fell by 24% compared to the same quarter last year. However, asset quality showed improvement with both gross and net NPAs declining on a quarter-on-quarter basis. The bank also posted healthy 9% year-on-year growth in total deposits, even as its CASA ratio moderated.

Key Points: IDBI Bank Q3 Net Profit Drops 46.6% Sequentially

  • 46.6% QoQ profit drop
  • 24% YoY fall in net interest income
  • Asset quality improves QoQ
  • Deposits grow 9% YoY
2 min read

IDBI Bank's Q3 net profit drops over 46 pc sequentially

IDBI Bank's Q3 FY26 net profit fell 46.6% QoQ to Rs 1,935 crore. NII declined 24% YoY, but asset quality improved and deposits grew 9%.

"Net interest income fell 24 per cent year-on-year to Rs 3,209.5 crore - IDBI Bank filing"

Mumbai, Jan 17

IDBI Bank on Saturday reported a 46.6 per cent quarter-on-quarter decline in its standalone net profit for the December quarter of the current financial year.

The bank posted a profit of Rs 1,935.45 crore for the quarter ended December 31, as compared to Rs 3,627.36 crore in the July-September quarter (Q2) of FY26.

However, on year-on-year basis, the bank's profit was up by 1.42 per cent from Rs 1,908.27 crore in the same period last financial year (Q3 FY25), according to its stock exchange filing.

The bank's core income remained under pressure during the quarter. Net interest income fell 24 per cent year-on-year to Rs 3,209.5 crore, compared with Rs 4,228.2 crore in the corresponding quarter of the previous financial year.

Asset quality showed some improvement on a quarter-on-quarter basis. Gross non-performing assets declined to 2.57 per cent of total advances at the end of December 2025, compared to 2.65 per cent at the end of September 2025.

Net NPAs also edged lower to 0.18 per cent from 0.21 per cent in the previous quarter, as per its regulatory filing.

The bank reported healthy growth in deposits during the year. Total deposits rose to Rs 3,07,858 crore as of December 31, 2025, from Rs 2,82,439 crore a year earlier -- marking a year-on-year growth of 9 per cent.

CASA deposits stood at Rs 1,35,632 crore as of December 31, 2025, with a CASA ratio of 44.06 per cent.

This compared with CASA deposits of Rs 1,30,899 crore and a higher CASA ratio of 46.35 per cent as of December 31, 2024.

On the lending side, net advances increased to Rs 2,38,786 crore at the end of December 2025, up from Rs 2,06,807 crore a year earlier.

The provision coverage ratio, including technical write-offs, remained strong at 99.33 per cent as of December 31, 2025, slightly lower than 99.47 per cent recorded a year ago.

On the stock market, shares of IDBI Bank closed 0.3 per cent lower on Friday at Rs 104.55 apiece on the BSE.

- IANS

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Reader Comments

S
Shreya B
Look at the bigger picture! Profit is still up compared to last year. Deposits and advances are growing healthily. The NPA numbers are improving, which is crucial for any bank. This seems like a temporary blip, not a crisis. The stock market reaction was also very mild.
A
Aman W
As a long-term depositor, I'm more worried about the falling CASA ratio. From 46.35% to 44.06% means they're relying more on costly term deposits. This could squeeze their margins further. Hope they have a strategy to attract low-cost savings accounts again.
P
Priyanka N
The headline is scary but the details show resilience. Net NPA at 0.18% is excellent! Provision coverage at over 99% is rock solid. The bank is lending more and people are trusting it with deposits. This quarter might be an anomaly. Let's see the next one. 👍
M
Michael C
Interesting mix of signals. The sequential profit drop is sharp, but the YoY growth and strong balance sheet growth (deposits up 9%, advances up) tell a different story. The market seems to be pricing in the negatives already. Could be a buying opportunity if you believe in the turnaround.
K
Karthik V
Being a former public sector bank, IDBI has come a long way. We must appreciate the clean-up. The NPA story is fantastic now. Maybe profits are down because they are being conservative or investing in tech? The quarterly numbers can be volatile. Don't panic.

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