IDBI Bank Ltd reported a net profit of ₹2,205 crore for the second quarter of FY2026-27, up 4% from ₹2,115 crore in the preceding quarter, as net interest income (NII) rose 29% year-on-year to ₹4,228 crore.
The bank’s operating profit increased 33% quarter-on-quarter to ₹2,893 crore for the quarter ended September 30, 2026. Excluding a one-off gain of ₹1,699 crore from the sale of its strategic investment in NSDL in Q2 FY2026, operating profit and net profit grew 59% and 14% year-on-year, respectively.
Net interest margin (NIM) improved to 4.11%, up 40 basis points year-on-year and 50 basis points sequentially. Total business expanded 18% year-on-year to ₹6,27,216crore, while deposits grew 17% to ₹3,55,684 crore. Net advances increased 18% to ₹2,71,533 crore, and current account and savings account (CASA) deposits rose 12% to ₹1,55,877 crore.
Asset quality improved, with the gross non-performing asset (NPA) ratio declining to 2.12% from 2.65% a year earlier, while net NPA fell to 0.17% from 0.21%. The provision coverage ratio stood at 99.24%.
The bank’s capital adequacy ratio rose to 27.10% from 25.39% a year earlier. Return on assets stood at 1.83%, while the cost-to-income ratio declined to 48.17%.
During the quarter, IDBI Bank launched a salary account package for Central Government employees and received industry recognition for its contributions to agriculture finance, rural development and technology-driven audit management.