IDBI Bank shares fell sharply by more than 3% in early trade after the lender reported its December-quarter results. As of 9:26 AM, the shares were trading 3.83% lower at Rs 100.55.
For the quarter ended December 2025, IDBI Bank posted a net profit of Rs 1,935 crore, marking a 1.4% increase on a year-on-year basis. However, the performance was weighed down by a sharp contraction in net interest income (NII), which declined 24% YoY to Rs 3,210 crore. The drop in NII reflected margin pressures and slower growth in interest-earning assets, which overshadowed the improvement in asset quality.
On the balance sheet front, the bank reported a marginal improvement in gross non-performing assets (NPA). Gross NPA stood at 2.57% as against 2.65% in the previous quarter, indicating continued progress in controlling stressed assets. The sequential decline, though limited, offered some comfort on the asset quality trajectory.
Provisions also supported the bottom line, with the bank reporting a provision write-back of Rs 542 crore during the quarter. This compared with a higher write-back of Rs 653 crore in the September quarter, suggesting a moderation in one-off gains from provisioning reversals.
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