IDBI Bank Q1 results: Net profit rises 5% to Rs 2,115 crore; NIM falls 54 bps QoQ

IDBI Bank Ltd on Saturday reported a 5 per cent year-on-year (YoY) rise in net profit to Rs 2,115 crore for the June quarter, compared with Rs 2,007 crore in the corresponding quarter last year. The lender, in which LIC and the government together held a 94.71 per cent stake, said its net interest income (NII), the difference between interest earned and interest expended, rose 10 per cent YoY to Rs 3,486 crore in the June quarter from Rs 3,166 crore in the corresponding quarter last year.

The bank's net interest margin (NIM) stood at 3.61 per cent for the June quarter, declining 54 basis points quarter-on-quarter (QoQ) and 7 basis points YoY. Return on assets (RoA) fell to 1.89 per cent from 2.01 per cent a year ago, while return on equity (RoE) declined to 14.80 per cent from 17.91 per cent in the corresponding quarter last year.

IDBI Bank said its cost of deposits declined to 4.59 per cent in Q1 FY27 from 4.84 per cent in Q1 FY26, marking a 25 basis points (bps) year-on-year (YoY) reduction and a 1 bps quarter-on-quarter (QoQ) decline.

The bank's cost of funds fell to 4.68 per cent in Q1 FY27 from 4.98 per cent in Q1 FY26, reflecting a 30 bps YoY decline and a 3 bps QoQ reduction.

On the asset quality front, the gross non-performing asset (NPA) ratio improved to 2.30 per cent as of June 30, 2026, from 2.93 per cent a year earlier and 2.32 per cent as of March 31, 2026.

The capital adequacy ratio (CRAR) improved to 26.92 per cent as of June 30, 2026, compared with 25.39 per cent a year ago and 26.65 per cent as of March 31, 2026.