IDBI Bank Q2 Profit Rises 4% as Operating Performance Strengthens
IDBI Bank Limited (NSE:IDBI) reported a net profit of Rs 2,205 crore for the quarter ended September 30, 2026, up 4% from Rs 2,115 crore in the previous quarter. Operating profit expanded 33% sequentially to Rs 2,893 crore, driven by a 21% quarter-on-quarter increase in net interest income to Rs 4,228 crore. On a year-on-year basis, net interest income rose 29%, while the net interest margin widened to 4.11%.
The earnings growth reflects robust expansion across the lender's loan book and deposit base, along with steady gains in asset quality. Total deposits grew 17% year-on-year to Rs 3.56 lakh crore, while net advances grew 18% to Rs 2.72 lakh crore. Lower non-performing asset ratios further strengthened the balance sheet, with gross NPAs declining to 2.12% from 2.65% a year earlier and net NPAs dropping to 0.17%.
Investors will look ahead to the completion of the bank's government stake sale. The Union Cabinet recently approved the sale of a 60.72% controlling stake to Fairfax Financial Holdings for Rs 52,878 crore. The transaction remains subject to final regulatory approvals and is scheduled to close by March 2027.
Key points
- IDBI Bank Limited (NSE:IDBI) posted a Q2 net profit of Rs 2,205 crore, up 4% sequentially.
- Operating profit grew 33% sequentially to Rs 2,893 crore, backed by a 29% YoY rise in net interest income.
- Gross non-performing asset ratio improved to 2.12% from 2.65% in the prior-year period.
- Total deposits increased 17% year-on-year to Rs 3.56 lakh crore, with net advances up 18%.
- The Union Cabinet approved selling a 60.72% stake to Fairfax Financial Holdings for Rs 52,878 crore.
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What was IDBI Bank's net profit for the September 2026 quarter?
IDBI Bank reported a net profit of Rs 2,205 crore for the quarter ended September 30, 2026, up 4% from Rs 2,115 crore in the June quarter.
How did IDBI Bank's asset quality perform in Q2 FY27?
Asset quality improved, with the gross non-performing asset ratio falling to 2.12% from 2.65% a year earlier, and the net non-performing asset ratio dropping to 0.17%.
Who is acquiring a stake in IDBI Bank?
Fairfax Financial Holdings is acquiring a 60.72% stake in IDBI Bank for Rs 52,878 crore, following Union Cabinet approval, with expected completion by March 2027.