IDBI Bank reported a strong performance for the quarter ended June 30, 2025 (Q1 FY26), with both its net profit and operating profit registering healthy year-on-year growth, supported by improved asset quality and lower provisions.
For Q1 FY26, the bank’s net profit rose 16.7% YoY to ₹2,007 crore, compared to ₹1,719 crore in the same quarter last year. Operating profit (before provisions and contingencies) also grew by 13.4% YoY, coming in at ₹2,354 crore, up from ₹2,076 crore in Q1 FY25.
Key financial highlights:
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Total income increased to ₹8,458 crore, up from ₹7,471 crore in Q1 FY25.
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Interest earned grew to ₹7,021 crore, compared to ₹6,666 crore a year earlier.
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Other income jumped to ₹1,437 crore, from ₹805 crore in Q1 FY25.
On the expenses side, total expenditure excluding provisions and contingencies stood at ₹6,104 crore, compared to ₹5,396 crore in the year-ago period, reflecting higher employee and operating costs.
Notably, the bank reported a net provision write-back of ₹179 crore during the quarter, compared to provisions of ₹443 crore in the same quarter last year, which aided profitability.
Asset quality:
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Gross NPA improved to ₹6,385 crore as of June 30, 2025, compared to ₹7,795 crore a year earlier.
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Net NPA reduced to ₹447 crore, down from ₹454 crore in Q1 FY25.
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Gross NPA ratio improved to 2.93%, down from 3.87% last year.
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Net NPA ratio declined to 0.21%, compared to 0.23% in the year-ago quarter.
The strong improvement in asset quality and healthy growth in income streams, along with controlled provisions, contributed to the robust bottom-line performance.
IDBI Bank’s results indicate that it is on track with its recovery and growth trajectory, maintaining a focus on improving profitability while keeping asset quality under control.
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