# IDBI Bank Q2 Net Profit Drops 39% on One-Off Gain Comparison

- URL: https://stocks.freetheai.org/news/idbi-bank-q2-net-profit-drops-39-on-one-off-gain-comparison-6f2f56
- Published: 2026-10-18T04:15:27Z
- Category: earnings; sentiment: mixed; impact: high
- Symbols: [NSE:IDBI](https://stocks.freetheai.org/symbols/NSE-IDBI)
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IDBI Bank Limited (NSE:IDBI) reported a 39% decline in net profit for the September quarter to 2,205 crore INR, down from 3,627 crore INR in the same period last year. The profit contraction was primarily caused by a 46% drop in non-interest income to 1,353 crore INR, as the previous year benefited from a one-off gain of 1,699 crore INR from selling a stake in NSDL. Without that previous gain, adjusted net profit actually increased by 14%.

Despite the fall in headline profit, the bank demonstrated solid core operational strength. Net interest income grew 29% year-over-year to 4,228 crore INR, supported by a higher net interest margin of 4.11%, up from 3.71% a year earlier. Lending expanded with net advances rising 18% to 2.71 lakh crore INR, while total deposits grew 17% to 3.55 lakh crore INR. Operating expenses rose 19% to 2,688 crore INR, leading to an 18% drop in operating profit to 2,893 crore INR.

Investors will be watching how the lender performs under new ownership following the Indian government approving the sale of a 60.72% majority stake to Canada's Fairfax group for 52,878 crore INR. Market attention will focus on how the incoming owner optimizes operational costs and leverages steady core income growth.

## Key points

- IDBI Bank Limited reported Q2 net profit of 2,205 crore INR, down 39% year-over-year due to lower non-interest income.
- Net profit in the prior-year quarter was inflated by a one-off 1,699 crore INR gain from selling a stake in NSDL.
- Core lending revenue increased as net interest income rose 29% to 4,228 crore INR, with margins expanding to 4.11%.
- The financial results follow approval for Canada's Fairfax group to buy a 60.72% majority stake for 52,878 crore INR.

## Questions and answers

### Why did IDBI Bank Q2 net profit decrease by 39%?

The decrease was due to lower non-interest income and the absence of a one-off 1,699 crore INR gain realized in the same quarter last year from an NSDL stake sale. Excluding that gain, adjusted profit rose 14%.

### How did IDBI Bank perform in core lending operations during Q2?

Net interest income rose 29% year-over-year to 4,228 crore INR, while net interest margin expanded to 4.11% from 3.71%. Net advances increased 18% to 2.71 lakh crore INR, and deposits grew 17% to 3.55 lakh crore INR.

### Who is buying a majority stake in IDBI Bank?

Canada's Fairfax group is acquiring a 60.72% majority stake in IDBI Bank for 52,878 crore INR following approval by the Indian government.