IDBI Bank's Q1 results: Net profit rises 17% to ₹2,007cr
What's the story
IDBI Bank has reported a 16.75% year-on-year increase in its standalone net profit for the first quarter of FY26. The bank's net profit stood at ₹2,007 crore, compared to ₹1,719 crore in the same quarter last year. However, the bank's net interest margin (NIM) declined to 3.68% from 4.18% in Q1 FY25.
Finances
Interest income grows 5% YoY
In Q1 FY26, IDBI Bank's interest income rose by 5% YoY to ₹7,021 crore from ₹6,666 crore in the same quarter last year. The bank also witnessed a strong growth in its income from advances which grew to ₹4,771 crore from ₹4,424 crore a year ago. Interest on balances with RBI and interbank funds more than doubled to ₹188 crore from ₹81 crore.
Performance
Total income rises to ₹8,458cr
IDBI Bank's total income for Q1 FY26 stood at ₹8,458 crore, up from ₹7,471 crore in the same period the previous year. This was driven by a sharp rise in other income to ₹1,437 crore from ₹805 crore. However, total expenditure also rose to ₹6,104 crore from ₹5,396 crore last year due to higher interest expenses and operating costs.
Profit growth
Operating profit rises despite increase in costs
Despite the increase in costs, IDBI Bank's operating profit rose to ₹2,354 crore from ₹2,076 crore last year. The bank reported a net reversal in provisions of ₹179 crore during the quarter against a reversal of ₹443 crore in Q1 FY25. This took the profit before tax slightly higher at ₹2,534 crore as against ₹2,519 crore in the same period the previous year.
Financial stability
Asset quality improves
IDBI Bank's asset quality improved significantly with gross non-performing assets (NPAs) falling to ₹6,385 crore from ₹7,795 crore a year ago. The gross NPA ratio improved to 2.93% from 3.87%. The bank's capital adequacy ratio stood at a healthy 25.39% as of June 30, 2025, compared to 22.42% a year ago.