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IDBI Bank Q2 Results: Net profit drops 39 percent while NII surges.
- •IDBI Bank reported a 39.2 percent year-on-year drop in net profit to ₹2,206 crore for the second quarter.
- •Net Interest Income for the quarter increased by 28.7 percent year-on-year to reach ₹4,227 crore.
- •The bank's Gross Non-Performing Asset ratio improved and declined to 2.12 percent at the end of September.
- •The cabinet recently approved a ₹52,878 crore deal to sell a 60.72 percent stake in the bank to Fairfax Financial Holdings.
Key Questions Answered
IDBI Bank reported a 39.2% year-on-year decline in net profit to ₹2,206 crore for Q2 FY27, largely due to a high base from an exceptional one-off gain last year. Meanwhile, its Net Interest Income (NII) grew by 28.7% year-on-year to ₹4,227 crore.
The bank's Gross Non-Performing Asset (GNPA) ratio improved to 2.12% at the end of September, dropping from 2.30% in the June quarter. However, the Net NPA ratio saw a marginal increase, rising from 0.16% in June to 0.17% in the September quarter.
The cabinet approved selling a 60.72% stake in IDBI Bank to Canada's Fairfax Financial Holdings for ₹52,878 crore at an acquisition price of ₹81 per share. Under this agreement, the central government will sell 30.48% and the Life Insurance Corporation of India (LIC) will sell 30.24%, retaining a combined 34% stake afterwards.
