New Delhi, India — April 30, 2026
IDBI Bank reported a 5.3% year-on-year decline in net profit to ₹1,943 crore for the fourth quarter ended March 30, 2026, as higher provisions and lower non-interest income weighed on earnings.
Despite the dip in profitability, the bank delivered strong growth in core income, signaling improving operational performance.
Core Income Growth Offsets Profit Pressure
Key financial highlights for Q4 FY26 include:
- Net Profit: ₹1,943 crore, down from ₹2,051 crore last year
- Net Interest Income (NII): ₹3,851 crore, up 17% YoY
- Total Income: ₹9,517.50 crore, rising 4.7% YoY
- Net Interest Margin (NIM): Improved to 4.15% from 4%
- Operating Profit: ₹3,043 crore, down 4.7%
The rise in NII and NIM indicates better lending yields and improved interest spreads.
What Dragged Profit Lower?
The decline in net profit was primarily driven by the following factors:
Drop in Non-Interest Income
Non-interest income fell 22% YoY to ₹1,611 crore, mainly due to lower gains from investment sales and reduced recoveries from written-off accounts.
Higher Costs and Expenses
An increase in the cost of funds along with rising operational expenses added pressure on margins.
Rise in Provisions
Provisions surged 22.4% to ₹285 crore, reflecting a cautious approach toward asset quality and risk management.
Business Growth Remains Strong
IDBI Bank continued to expand its balance sheet during the quarter:
- Total Business: Crossed ₹6 lakh crore, up 14% YoY
- Deposits: ₹3.47 lakh crore, rising 12%
- Net Advances: ₹2.53 lakh crore, up 16%
- CASA Deposits: ₹1.55 lakh crore, growing 7%
The steady growth in advances and deposits reflects improving credit demand and customer base expansion.
Dividend Announcement
The bank’s board has recommended a shareholder payout:
- Final Dividend: ₹1.55 per share for FY26
The dividend signals continued confidence in the bank’s financial stability despite near-term earnings pressure.
