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IDBI Bank posts 17% net profit growth in Q1 FY26, margins under pressure
Net interest income (NII) declined by two per cent YoY to ₹3,166 crore in Q1 FY26, compared to ₹3,233 crore in Q1 FY25, the bank said in a statement.
Its net interest margin (NIM) also declined by 50 basis points to 3.68 per cent in Q1 FY26, compared to 4.18 per cent in Q1 FY25.
The bank's stock closed 1.37 per cent lower at ₹97.25 per share on the BSE.
Advances expanded by nine per cent YoY to ₹2.11 trillion at the end of Q1 FY26. The share of retail and corporate in the loan book stood at 70 per cent and 30 per cent, respectively, at the end of June 2025. The credit-to-deposit ratio stood at 71.38 per cent at the end of June 2025, up from 69.91 per cent in June 2024.
Total deposits increased by seven per cent YoY to ₹2.96 trillion at the end of June 2025. The share of low-cost deposits — current account and savings accounts (CASA) — declined to 44.65 per cent at the end of June 2025, from 48.57 per cent a year ago.
The lender, which is a candidate for divestment by the Government of India, saw further improvement in its asset quality profile during the reporting quarter. Its gross non-performing assets (NPAs) declined to 2.93 per cent in June 2025, from 3.87 per cent in June 2024. Net NPAs also declined to 0.22 per cent in June 2025, from 0.23 per cent a year ago.
The provision coverage ratio (PCR), including written-off accounts, stood at 99.31 per cent in June 2025, compared to 99.34 per cent in June 2024.
The Capital Adequacy Ratio improved to 25.39 per cent with a Common Equity Tier I (CET1) of 23.71 per cent in June 2025, up from 22.42 per cent with a CET1 of 20.26 per cent in June 2024.
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