Stories
IDBI Bank Posts Strong Core Income Growth As Margins Expand And Stake Sale Moves Forward
- •IDBI Bank reported a 39.2% year-on-year decline in net profit for the September quarter due to a high base effect from a previous one-off gain of ₹1,699 crore from NSDL.
- •Excluding the exceptional gain, the bank's operating profit and net profit grew 59% and 14% year-on-year respectively.
- •Net interest income rose 28.7% to ₹4,227 crore, while the net interest margin expanded to 4.11% from 3.71% a year earlier.
- •Gross non-performing assets improved to 2.12%, while net non-performing assets edged up slightly to 0.17%.
- •The Cabinet Committee on Economic Affairs approved the strategic sale of a 60.72% combined stake in IDBI Bank to Canada's Fairfax Financial Holdings for ₹52,878.08 crore.
Key Questions Answered
IDBI Bank reported a reported net profit of ₹2,206 crore for the September quarter of FY27, which was lower compared to ₹3,627 crore a year earlier due to base effects from an exceptional gain. However, excluding exceptional items, operating profit and net profit grew 59% and 14% year-on-year, while net interest income (NII) rose 28.7% to ₹4,227 crore.
The Cabinet Committee on Economic Affairs (CCEA) approved the strategic sale of a 60.72% stake in IDBI Bank to Canada's Fairfax Financial Holdings for ₹52,878.08 crore. The transaction comprises the central government's 30.48% stake and Life Insurance Corporation of India's (LIC) 30.24% holding.
IDBI Bank showed mixed trends in asset quality for the September quarter on a sequential basis. The gross non-performing assets (GNPA) improved to 2.12% from 2.3% in the previous quarter, while the net non-performing assets (NNPA) edged up slightly to 0.17% from 0.16%.
