IDBI Bank's shares experienced a notable decline on April 30, 2026, falling approximately 3% from their day's high after the lender announced its financial results for the March quarter of 2026. The bank reported a 5.26% year-on-year decrease in net profit, which stood at ₹1,943 crore, down from ₹2,051 crore in the corresponding quarter of the previous fiscal year.
The market reaction saw IDBI Bank's stock fall 2.53% from an intraday high of ₹77.39 to a low of ₹75.43. The scrip later traded 1.24% lower at ₹75.82 apiece.
Key Financial Performance Indicators
Beyond the net profit decline, the bank's return on assets (annualised) saw a reduction, dropping to 1.75% from 2.11% year-on-year. Similarly, the return on equity decreased to 14.35% from 20.40% over the same period.
Growth in Net Interest Income and Margins
Despite the profit dip, IDBI Bank demonstrated strong growth in its net interest income (NII), which surged by 17.05% to ₹3,851 crore, compared to ₹3,290 crore in the March quarter of the previous year. The net interest margin (NIM) also improved, reaching 4.15%, a 15 basis point increase from 4% year-on-year.
Overall Business Expansion and Asset Quality
The bank announced that its total business, encompassing both deposits and net advances, successfully surpassed the ₹6 lakh crore mark. Total deposits grew by 12% year-on-year, reaching ₹3,47,163 crore as of March 31, 2026, up from ₹3,10,212 crore on March 31, 2025. Current Account Savings Account (CASA) deposits also increased by 7% year-on-year to ₹1,54,816 crore, though the CASA ratio slightly decreased to 44.59% from 46.55%.
Net advances recorded a robust 16% year-on-year growth, amounting to ₹2,53,626 crore, compared to ₹2,18,399 crore. The bank maintained a healthy gross advances portfolio split, with corporate loans accounting for 30% and retail loans for 70% as of March 31, 2026.
Improving Asset Quality
IDBI Bank continued to show improvement in its asset quality. The Gross Non-Performing Asset (NPA) ratio improved significantly to 2.32% as of March 31, 2026, down from 2.98% in the prior year. The Net NPA ratio remained stable at 0.15% for both periods. Furthermore, the Provision Coverage Ratio (including Technical Write-Offs) stood strong at 99.39%, consistently above 99% since September 2023.