IDBI Bank posted double-digit growth across its total business, deposits and advances in the quarter ended September 30, 2026, according to its latest business update.
The lender's total business rose 18% year-on-year to Rs 6.27 lakh crore, while total deposits grew 17% from a year earlier to Rs 3.56 lakh crore.
On the lending front, IDBI Bank's net advances increased 18% year-on-year to Rs 2.72 lakh crore.
In the first quarter of financial year 2027, bank's net profit for rose 5.4% year-on-year. The private lender posted a bottom-line of Rs 2,115 crore, compared to Rs 2,007 crore in the year-ago period. Net Interest Income, the difference between interest earned and interest paid, jumped 10% to Rs 3,486 crore from Rs 3,166 crore. IDBI Bank's gross NPA improved by 2 basis points quarter-on-quarter to 2.30% from 2.32%, while the net NPA deteriorated marginally by 1 basis point to 0.16% from 0.15%.
The bank's provision coverage ratio stood at 99.31%, compared with 99.39% in the previous quarter. Operating profit slid 7.9% to Rs 2,168 crore from Rs 2,354 crore year-on-year.
The Net Interest Margin (NIM) declined to 3.61% from 4.15% in the preceding quarter and 3.68% a year ago. Meanwhile, the Current Account and Savings Account ratio (CASA) ratio fell to 43.64% from 44.59% in the previous quarter.
Separately, IDBI Bank's strategic disinvestment is progressing at a “steady pace”, with the government currently evaluating financial bids submitted by the interested investors, government sources told NDTV Profit earlier.
The government is planningto sell a 60.72% stake in IDBI Bank, with Fairfax Financial Holdings, backed by billionaire investor Prem Watsa, and Dubai-based Emirates NBD having submitted revised financial bids for the lender. The two bidders submitted their revised offers on July 13, 2026, after the government restarted the strategic sale process earlier this financial year.
Both bidders have an existing presence in India's banking sector. Emirates NBD acquired a majority stake in RBL Bank earlier this year, while Fairfax Financial Holdings owns a 40% stake in private-sector lender CSB Bank. The bidders have already received security clearance from the Ministry of Home Affairs (MHA) and have also received the “Fit and Proper” assessment from the Reserve Bank of India.
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