IDBI Bank reported a standalone net profit of Rs 2,007.36 crore for the quarter ended June 30, 2026, up 3.3% from Rs 1,943.17 crore a year earlier, according to Business-Today. The increase was supported by lower provisions despite a weaker operating profit. On a consolidated basis, net profit rose 6.9% to Rs 2,127.14 crore from Rs 1,987.44 crore a year ago.
Net Interest Income and Funding Costs
Net interest income (NII) – interest earned minus interest expended – declined 0.6% to Rs 2,249.75 crore from Rs 2,262.97 crore a year earlier, as reported. Interest earned increased 7.0% to Rs 7,541.44 crore from Rs 7,021.00 crore, reflecting loan book growth. However, interest expended rose 9.7% to Rs 5,291.69 crore from Rs 4,758.03 crore, indicating higher funding costs and deposit growth. Interest expense grew faster than interest income, compressing NII.
Non-Interest Income and Operating Profit
Non-interest income declined 28.2% to Rs 1,031.58 crore from Rs 1,437.02 crore, the financial statements show. The drop reduced overall income growth. Total income (NII plus non-interest income) fell 10.5% to Rs 3,281.33 crore from Rs 3,699.99 crore. Operating profit – total income minus operating expenses – declined 28.1% to Rs 1,230.98 crore from Rs 1,711.24 crore, as operating expenses rose 2.5% to Rs 2,349.93 crore from Rs 2,291.73 crore.
| Metric | Q1FY27 | Q1FY26 | Change |
|---|---|---|---|
| Standalone Net Profit (Rs cr) | 2,007.36 | 1,943.17 | +3.3% |
| Net Interest Income (Rs cr) | 2,249.75 | 2,262.97 | -0.6% |
| Non-Interest Income (Rs cr) | 1,031.58 | 1,437.02 | -28.2% |
| Total Income (Rs cr) | 3,281.33 | 3,699.99 | -10.5% |
| Operating Profit (Rs cr) | 1,230.98 | 1,711.24 | -28.1% |
| Provisions (Rs cr) | -179.46 (write-back) | 285.31 (charge) | - |
Provisions and Asset Quality
Provisions and contingencies fell sharply to a write-back of Rs 179.46 crore from a charge of Rs 285.31 crore a year earlier, supporting earnings and offsetting the decline in operating profit. Asset quality remained stable. Gross NPAs declined to 2.30% of gross advances from 2.32% a year ago, while net NPAs improved to 0.16% from 0.15%.
Deposits, Loans, and Capital Adequacy
Deposits on the standalone balance sheet declined 6.0% sequentially to Rs 3,25,756.72 crore at June-end from Rs 3,47,162.68 crore at March-end. Advances increased 2.1% sequentially to Rs 2,58,962.52 crore from Rs 2,53,623.57 crore. The bank's capital adequacy ratio under Basel III stood at 35.50%, with Common Equity Tier-1 (CET-1) at 26.91%.
For finance executives and investors, the sharp decline in non-interest income and operating profit signals pressure on core earnings, though lower provisions and stable asset quality provide a cushion. The high capital adequacy ratio offers ample headroom for loan growth and potential regulatory requirements. The sequential deposit decline warrants monitoring for liquidity management.
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