IDBI Bank Share Price in Focus; Posted 17% Profit Rise YoY in Q1 FY26 Results

IDBI Bank Limited has announced its financial results for the first quarter of FY2026, showcasing growth in profitability, improved asset quality, and steady business expansion despite margin pressures.

Operating Performance

The bank’s net profit for Q1 FY2026 rose by 17% year-on-year (YoY) to ₹2,007 crore, compared to ₹1,719 crore in Q1 FY2025. Operating profit also improved by 13% YoY to ₹2,354 crore, up from ₹2,076 crore last year.

Net Interest Income (NII) stood at ₹3,166 crore, slightly lower than ₹3,233 crore in Q1 FY2025. The Net Interest Margin (NIM) contracted to 3.68% from 4.18% last year, as rising deposit costs impacted spreads. The Cost of Deposits rose to 4.84% (from 4.58%) and the Cost of Funds increased to 4.98% (from 4.81%).

Key return ratios remained robust, with Return on Equity (ROE) at 17.91% and Cost-to-Income Ratio steady at 48.86%.

Business Growth

IDBI Bank continued to grow its deposit and lending portfolio. Total deposits climbed 7% YoY to ₹2,96,868 crore as of June 30, 2025, from ₹2,77,548 crore a year earlier. The CASA ratio, however, declined to 44.65% from 48.57%, with CASA deposits at ₹1,32,553 crore.

Net advances increased by 9% YoY to ₹2,11,907 crore, compared to ₹1,94,026 crore last year. The loan mix remained skewed toward retail, with a 70:30 retail-to-corporate ratio.

Asset Quality and Capital Adequacy

The bank reported significant improvement in asset quality. The Gross NPA ratio fell to 2.93% from 3.87% last year, while the Net NPA ratio improved slightly to 0.21% from 0.23%.

Capital adequacy strengthened, with Tier 1 capital rising to 23.71% (from 20.26%) and CRAR improving to 25.39% (from 22.42%).

IDBI Bank Share Price Performance

On July 22, 2025, IDBI Bank share price (NSE: IDBI) opened at ₹97.70, almost the same as its previous close of ₹97.19. At 9:33 AM, the share price of IDBI Bank was trading at ₹97.45, up by 0.27% on the NSE.

Also Read: IDBI Bank Divests 21.14% Stake in PIPDIC to Puducherry Govt for ₹18.83 Crore!

Conclusion

IDBI Bank’s Q1 FY2026 results highlight a profitable growth trajectory, marked by a double-digit rise in net profit and improved asset quality. While pressure on margins remains due to higher funding costs, capital levels and healthy business growth position the bank for sustained performance in the coming quarters.

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