IDB Bank’s Q1 FY27 Roars: Net Profit Surges 8.85% YoY, Gross Pas Crash to 3.61%
IDBI Bank has delivered a strong performance in the first quarter of FY27, reporting steady growth in profitability while significantly strengthening its asset quality. The bank announced its standalone financial results for the quarter ended June 30, 2026, showcasing improved earnings, a healthier loan portfolio, and a robust capital position.
The lender reported a standalone net profit of ₹2,115.18 crore, registering an 8.85% year-on-year (YoY) increase from ₹1,943.17 crore in the corresponding quarter of FY26. On a sequential basis, net profit also rose 5.37% from ₹2,007.36 crore reported in Q4 FY26.
Net Profit Continues to Grow
IDBI Bank maintained its earnings momentum during the June quarter, supported by stable core banking operations and improved credit quality.
The bank reported total income of ₹8,573.02 crore, while interest earned stood at ₹7,541.44 crore, reflecting healthy income from its lending business.
Q1 FY27 Financial Highlights
- Standalone Net Profit: ₹2,115.18 crore (up 8.85% YoY)
- Total Income: ₹8,573.02 crore
- Interest Earned: ₹7,541.44 crore
- Basic Earnings Per Share (EPS): ₹1.97
- Gross NPA Ratio: 3.61%
- Net NPA Ratio: 0.16%
- CET-1 Ratio: 26.91%
Asset Quality Shows Significant Improvement
The biggest highlight of the quarter was the continued improvement in the bank’s asset quality.
The Gross Non-Performing Asset (GNPA) ratio declined sharply to 3.61% as of June 30, 2026, compared with 45.48% in the corresponding quarter last year. Likewise, the Net NPA ratio improved substantially to 0.16%, down from 1.97% in Q1 FY26.
The improvement reflects the bank’s sustained focus on loan recoveries, prudent provisioning, and disciplined credit risk management, resulting in a significantly cleaner balance sheet.
Strong Capital Position
IDBI Bank continued to maintain a comfortable capital buffer during the quarter.
The bank reported a Common Equity Tier-1 (CET-1) Ratio of 26.91%, highlighting its strong capital adequacy and financial resilience. The healthy capital position provides flexibility to support future credit growth while complying with regulatory capital requirements.
Stable Income Supports Growth
Although total income remained broadly stable on a year-on-year basis, it improved sequentially compared with the previous quarter, indicating continued business momentum.
The combination of steady income growth, improved asset quality, and disciplined cost management helped support the bank’s profitability during the quarter.