IDBI Bank Q2 Results declared Q2FY27 results on Saturday, October 17. The lender reported a 39.2% YoY decline in net profit to Rs 2,205 crore for the quarter ended September 30, 2026, compared with Rs 3,627 crore in the corresponding quarter last year. The decline in earnings came despite growth in net interest income, deposits and advances.
Net interest income (NII) increased 29% year-on-year to Rs 4,228 crore. Operating profit, however, fell 17.9% to Rs 2,893 crore from Rs 3,523 crore in the year-ago quarter. Provisions for the September quarter stood at Rs 8.55 crore.
IDBI Bank Q2 Results: Business Growth
According to the bank's exchange filing, total deposits rose 17% year-on-year to Rs 3,55,684 crore as of September 30, 2026, compared with Rs 3,03,408 crore a year earlier.
Current account and savings account (CASA) deposits increased 12% to Rs 1,55,877 crore from Rs 1,38,934 crore in the corresponding period last year. The CASA ratio stood at 43.82% at the end of the reporting quarter.
Net advances grew 18% year-on-year to Rs 2,71,533 crore from Rs 2,30,220 crore. Retail loans accounted for 69% of the bank's gross advances portfolio, while corporate loans made up the remaining 31%, according to the filing.
IDBI Bank Q2 Results​​​​​​​: Asset Quality YoY
The bank's gross non-performing asset (NPA) ratio improved to 2.12% at the end of September from 2.65% a year earlier. The net NPA ratio also improved on an annual basis, declining to 0.17% from 0.21%.
On a sequential basis, the gross NPA ratio declined from 2.30% in the June quarter, an improvement of 18 basis points. However, the net NPA ratio edged up from 0.16% in the preceding quarter.
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IDBI Bank Q2 Results​​​​​​​: Capital Position
The lender also reported an improvement in its capital position. Its capital-to-risk-weighted assets ratio (CRAR) increased to 27.10% as of September 30, 2026, from 25.39% a year earlier, an improvement of 171 basis points.
The Tier 1 capital ratio rose to 26.55%, compared with 23.79% at the end of September 2025, marking an increase of 276 basis points over the year.
Risk-weighted assets stood at Rs 2,37,228 crore at the end of September, up from Rs 2,08,546 crore a year earlier. They also increased from Rs 2,30,728 crore as of June 30, 2026.
Overall, the September quarter saw the bank expand its deposit and lending businesses and strengthen capital ratios, while net profit and operating profit declined from the corresponding period last year.
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IDBI Bank Q2 Results - YoY
- Net profit down 39.2% at Rs 2,205 crore vs Rs 3,627 crore YoY
- NII up 29% at Rs 4,228 crore YoY
- Operating profit down 17.9% at Rs 2,893 crore vs Rs 3,523 crore YoY
- Gross NPA at 2.12% vs 2.30% QoQ
- Net NPA at 0.17% vs 0.16% QoQ
- Provisions stand at Rs 8.55 crore
The results come after the Cabinet Committee on Economic Affairs, on October 14, approved the sale of IDBI Bank stake. Canada-based Fairfax Financial Holdings will acquire a combined 60.72% stake from the government and Life Insurance Corporation of India (LIC) for Rs 52,878 crore. The plan also includes a proposed merger of CSB Bank with IDBI Bank within two years, subject to RBI and Sebi approvals. Fairfax holds about 40% of CSB Bank.
The deal ends a process that stretched over five years, after the disinvestment was first announced in the Union Budget for 2021-22. The government held 45.48% of the bank and LIC 49.24% before the sale. The government says the bank's recovery is complete, with gross non-performing assets at 2.32% and total business above Rs 6.27 lakh crore as of September 2026.
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