IDBI Bank Ltd. announced its financial performance for the first quarter of fiscal year 2027 (Q1 FY27), revealing a 5% year-on-year (YoY) rise in net profit, reaching ₹2,115 crore. This figure is up from ₹2,007 crore reported in the corresponding quarter of the previous year.
Mixed Performance in Key Metrics
The bank's Net Interest Income (NII), which represents the difference between interest earned and interest expended, grew by 10% YoY to ₹3,486 crore in the June quarter, compared to ₹3,166 crore a year ago. However, the Net Interest Margin (NIM) for the quarter stood at 3.61%, marking a 54 basis point (bps) decline quarter-on-quarter (QoQ) and a 7 bps decline YoY.
Other profitability metrics also saw a dip. Return on Assets (RoA) decreased to 1.89% from 2.01% a year earlier, and Return on Equity (RoE) fell to 14.80% from 17.91% in Q1 FY26.
Improved Asset Quality and Cost Efficiency
On a positive note, IDBI Bank demonstrated improved asset quality. The gross non-performing asset (NPA) ratio decreased to 2.30% as of June 30, 2026, a significant improvement from 2.93% a year prior and 2.32% as of March 31, 2026.
The bank also managed to reduce its cost of deposits, which declined by 25 bps YoY and 1 bps QoQ to 4.59% in Q1 FY27. Similarly, the cost of funds fell by 30 bps YoY and 3 bps QoQ to 4.68%.
Growth in Deposits and Advances
IDBI Bank reported a 10% YoY increase in total deposits, reaching ₹3,25,757 crore as of June 30, 2026. CASA (Current Account Savings Account) deposits grew by 7% YoY to ₹1,42,162 crore, with the CASA ratio at 43.64%.
Net advances saw robust growth, increasing by 22% YoY to ₹2,58,968 crore. On a QoQ basis, net advances rose by 2%. The bank's gross advances portfolio maintains a retail-heavy composition, with a 30:70 corporate-to-retail mix as of the end of the quarter.
The Capital Adequacy Ratio (CRAR) further strengthened to 26.92% as of June 30, 2026, up from 25.39% a year ago, indicating a strong capital base.