IDBI Bank's Q1 Net Profit Soars 17% YoY To Rs 2,007 Cr As Bad Loans Shrink; Asset Quality Improves

IDBI Bank has issued its financial results for the quarter ending June 30, 2025, and it is getting off to a high note for FY26. Compared to the net profit of Rs 1,719 crore in Q1FY25, the bank's net profit increased by 17% to Rs 2,007 crore in Q1FY26.

In addition, operating profit increased by a noteworthy 13% YoY to Rs 2,354 crore from Rs 2,076 crore in the same quarter of the prior fiscal year. A 7% boost in total deposits to Rs 2,96,868 crore and a rise of 9% in net advances to Rs 2,11,907 crore helped the bank's total business grow by 8% to Rs 5,08,775 crore.

According to IDBI Bank, its net interest margin (NIM) was 3.68% in Q1-2026 compared to 4.18% in Q1-2025, while its net interest income (NII) was Rs 3,166 crore in the quarter that ended in June 2025 compared to Rs 3,233 crore in the quarter that ended in June 2024.

In Q1-2026, the bank's Return on Assets (ROA) climbed by 18 basis points to 2.01% from 1.83% in Q1-2025. In Q1 2026, its cost of deposits was 4.84%, up from 4.58% in Q1 2025, while its cost of funds was 4.98%, up from 4.81% in Q1 2025. According to IDBI Bank, its cost-to-income ratio was 48.86% and its return on equity (ROE) was 17.91%.

In terms of business growth, the bank's total deposits as of June 30, 2025, were Rs 2,96,868 crore, up 7% year-on-year from Rs 2,77,548 crore on June 30, 2024. At the same period of time, the CASA was Rs 1,32,553 crore, and the CASA ratio was 44.65%. The overall CASA and CASA ratio as of June 30, 2024, were Rs 1,34,810 crore and 48.57%, respectively.

The bank has demonstrated remarkable development in terms of asset quality, as evidenced by the improvement in the gross non-performing asset (NPA) ratio from 3.87% on June 30, 2024 to 2.93% on June 30, 2025, and the net NPA ratio from 0.23% on June 30, 2024 to 0.21% on June 30, 2025. As of June 30, 2025, IDBI Bank's provision coverage ratio was 99.31%, up from 99.34% on June 30, 2024.