IDBI Bank Q2 profit falls 39%; prior-year gain skews comparison

IDBI Bank reported a 39% year-on-year fall in net profit to Rs 2,205 crore for the second quarter of FY27 on Saturday, October 17, according to Economic Times Markets. Profit in the corresponding quarter a year earlier was Rs 3,627 crore, boosted by a one-off investment sale.

The bank said the earlier quarter included a Rs 1,699 crore gain from selling a strategic investment in NSDL. Excluding that gain, it reported a 14% increase in net profit and a 59% rise in operating profit for Q2 FY27.

Interest income falls, but margin improves sequentially

Net interest income was reported at Rs 1,353 crore, compared with Rs 2,489 crore a year earlier. It increased 31% from the preceding quarter.

The report describes the annual decline in net interest income as 49%, although the rupee figures it gives imply a fall of about 45.6%. The percentage and amounts therefore do not align.

The bank reported a net interest margin of 4.11%, an improvement of 50 basis points from the previous quarter.

Bad-loan ratios decline

The gross non-performing asset ratio fell to 2.12% as of September 30, 2026, from 2.65% a year earlier. The net NPA ratio also improved, declining to 0.17% from 0.21%.

Provision coverage, including technical write-offs, stood at 99.24%. The bank said this measure had remained above 99% since September 2023.

Deposits and lending expand

Total deposits increased 17% year-on-year to Rs 3.55 lakh crore as of September 30, from Rs 3.03 lakh crore. Current account and savings account deposits grew 12% to Rs 1.55 lakh crore from Rs 1.38 lakh crore, with the CASA ratio at 43.82%.

Net advances rose 18% to Rs 2.71 lakh crore, compared with Rs 2.30 lakh crore a year earlier. Retail accounted for 69% of the gross advances portfolio and corporate lending for 31%.