IDBI Bank reports 5% rise in net profits for Q1 FY26-27; Gross NPA stands at 2.30%

IDBI Bank reports 5% rise in net profits for Q1 FY26-27; Gross NPA stands at 2.30%​

IDBI Bank Limited announced its un-audited financial results for the quarter ended June 30, 2026, revealing a 5% year-on-year increase in net profit and improved asset quality metrics. The bank reported a Net Profit of ₹2,115 crore for Q1 FY27, registering a 9% quarter-on-quarter growth.

The bank's operational performance highlighted steady growth across various business segments while maintaining disciplined risk management. Net Interest Income (NII) reached ₹3,486 crore in Q1 FY27, marking a 10% year-on-year rise. Total business for the quarter stood at ₹5,84,725 crore, showing a 15% growth compared to the previous year.

Key Financial and Asset Quality Metrics​

IDBI Bank's financial health indicators demonstrated notable improvements in profitability and asset quality during the first quarter of FY26-27. The following table summarizes the key performance metrics:

Business Growth and Capital Position​

The bank witnessed solid growth in its balance sheet components. Total Deposits grew by 10% year-on-year, reaching ₹3,25,757 crore as of June 30, 2026, up from ₹2,96,782 crore a year prior. CASA (Current Account Savings Account) increased by 7% YoY to ₹1,42,162 crore.

Net Advances grew by 22% compared to the same period last year, amounting to ₹2,58,968 crore. The composition of Corporate versus Retail in Gross Advances stood at 30:70 as on June 30, 2026.

In terms of capital adequacy, the Capital Adequacy Ratio (CRAR) improved to 26.92%, up from 25.39% a year earlier. The Tier 1 Capital ratio also rose to 26.38%. Risk Weighted Assets (RWA) stood at ₹2,30,728 crore as of June 30, 2026.

The Asset Quality profile strengthened significantly. The Gross NPA ratio improved to 2.30% from 2.93% a year ago, while the Net NPA ratio was reported at 0.16%. Provision Coverage Ratio (PCR), including Technical Write-Offs, remained strong at 99.31%.

Operational Efficiencies​

The bank successfully managed its cost components during the quarter. The Cost of Deposit stood at 4.59% in Q1 FY27, down from 4.84% in Q1 FY26 (a reduction of 25 bps YoY). Similarly, the Cost of Funds was 4.68%, reduced by 30 bps year-on-year and 3 bps quarter-on-quarter.

The bank maintained a Net Interest Margin (NIM) at 3.61%. The Credit Deposit Ratio stood at 79.50%, showing an improvement of 810 basis points (bps) YoY.

Significant Developments​

IDBI Bank reported several significant developments demonstrating commitment to financial inclusion and technological advancement:

• APY Award: The bank was conferred the "APY Annual Award of Ultimate Achiever" by the Department of Financial Services, Ministry of Finance, for meeting the annual Atal Pension Yojana (APY) enrolment targets for FY 2025-26.
• Innovate 2026 Hackathon: IDBI Bank announced 'IDBI Innovate 2026,' a nationwide hackathon inviting start-ups and fintech companies to develop technology-driven solutions to enhance the banking ecosystem.
• Audit Excellence Award: The bank was honored at the 'Internal Audit Excellence Awards 2026' for its use of the AI-enabled i Netra system in internal audit processes.

IDBI Stock Price Movement​

IDBI Bank Limited rallied on Friday, with the stock closing 1.71% higher at ₹87.02 following a gain of ₹1.46. The bank saw solid activity in the market, as over 12.36 million shares were transacted during the session.