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IDBI Bank reported a 5 per cent year-on-year rise in net profit to Rs 2,115 crore for the first quarter of FY27, supported by double-digit growth in net interest income and strong credit growth, while asset quality remained stable with gross non-performing assets (GNPA) improving to 2.30 per cent.
According to the bank's Q1 FY27 press release, "Net Profit surges to 2,115 Crore for Q1 of FY27 registering a YoY growth of 5%, and QoQ growth of 9%." The bank had reported a net profit of Rs 2,007 crore in the corresponding quarter of the previous financial year. The bank's net interest income (NII) rose 10 per cent year-on-year to Rs 3,486 crore from Rs 3,166 crore a year earlier. Business growth remained robust during the quarter, with total business increasing 15 per cent year-on-year to Rs 5,84,725 crore. Total deposits also rose 10 per cent to Rs 3,25,757 crore, while net advances registered a strong 22 per cent growth to Rs 2,58,968 crore, indicating continued momentum in loan growth. On the asset quality front, the bank said "Gross NPA down to 2.30%, YoY reduction by 63 bps," while "Net NPA down to 0.16%, YoY reduction by 5 bps." On a sequential basis, gross NPA improved marginally from 2.32 per cent, while net NPA stood at 0.16 per cent against 0.15 per cent in the previous quarter. The Provision Coverage Ratio remained strong at 99.31 per cent. The bank also strengthened its capital position during the quarter. Its Capital Adequacy Ratio (CRAR) improved to 26.92 per cent from 25.39 per cent a year ago, while the Credit-Deposit Ratio improved to 79.50 per cent from 71.40 per cent a year earlier. Return on Assets (ROA) stood at 1.89 per cent. However, net interest margin (NIM) moderated to 3.61 per cent from 3.68 per cent in the year-ago quarter, while the cost of deposits declined by 25 basis points year-on-year to 4.59 per cent, reflecting lower funding costs. The bank also highlighted that its corporate and retail advances portfolio mix stood at 30:70 as of June 30, 2026. (ANI)
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