IDBI Bank Ltd reported improved operating performance for the second quarter of FY2026-27, with operating profit rising 33% sequentially to ₹2,893 crore and net profit increasing 4% to ₹2,205 crore for the quarter ended September 30, 2026.
Net interest income (NII) grew 29% year-on-year and 21% quarter-on-quarter to ₹4,228 crore. Net interest margin (NIM) improved to 4.11% from 3.71% a year earlier, supported by a lower cost of deposits, which declined to 4.55% from 4.69%.
Excluding the ₹1,699-crore one-off gain from the sale of its strategic investment in NSDL in Q2 FY2026, operating profit and net profit increased 59% and 14% year-on-year, respectively.
Total business expanded 18% year-on-year to ₹6,27,216crore. Deposits rose 17% to ₹3,55,684crore, net advances increased 18% to ₹2,71,533 crore, and current account and savings account (CASA) deposits grew 12% to ₹1,55,877 crore.
Asset quality improved, with gross non-performing assets declining to 2.12% from 2.65% a year earlier and net NPAs falling to 0.17%. The provision coverage ratio stood at 99.24%, while capital adequacy reached 27.10%.
For the Mumbai banking and financial services market, the results highlight stronger core income, expanding credit and deposit portfolios, and improved asset quality. The bank also launched a salary account package for Central Government employees and received awards for agriculture finance, financial inclusion and technology-driven audit management. Return on assets stood at 1.83%, while the cost-to-income ratio declined to 48.17%.
