IDBI Bank profit falls 39% as core income grows

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 IDBI Bank Limited (

) reported a 39.1% year-on-year decline in net profit to ₹2,205 crore in Q2 FY27. The decline largely reflects a high base created by a one-time gain in the previous year. What happened? In Q2 FY26, the bank recorded a one-time gain of ₹1,699 crore from selling its stake in National Securities Depository Limited (NSDL). Excluding this gain, net profit increased 14% year-on-year, while operating profit grew 59%. Net interest income rose approximately 29% to ₹4,228 crore. Net interest margin improved to 4.11%. Deposits increased 17% to ₹3.55 lakh crore, while the gross non-performing asset ratio declined to 2.12% from 2.65% a year earlier. Why does it matter? The reported profit decline does not fully reflect the underlying operating performance because the previous year's earnings included a substantial one-off gain. Growth in core interest income and improved asset quality indicate stronger underlying performance. My view The underlying results appear stronger than the headline profit figure suggests. However, sustained growth will depend on maintaining margins, controlling costs and preserving asset quality. What I am watching next I would track net interest income, margins, deposit growth, operating expenses and bad-loan ratios to assess whether the improvement in core banking performance continues. No Recommendations Source: The Economic Times; cross-checked with Business Standard and Moneycontrol. Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in IDBI Bank Limited.