IDBI Bank shares close ~1% lower after a 5% drop in March-quarter profit.
NII rises 17% and deposits grow, but ROA and ROE decline.
GNPA and net NPA fall, while capital adequacy strengthens
IDBI Bank Ends Lower as Profit Drops 5% in March Quarter
IDBI Bank shares slip after a 5% drop in Q4 profit, even as NII, deposits and asset quality improve, with full-year profit showing strong growth
Summary
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Shares of IDBI Bank fell nearly 3% on Thursday from their high after the bank reported a 5.26% fall in its net profit. The lender’s net profit stood at ₹1,943 crore for the quarter ended March, down from ₹2,051 crore in the corresponding period last year.
On a full-year basis, the bank’s standalone net profit jumped 26.59% to ₹9,513.36 crore on a 5.67% increase in total income to ₹35,743.53 crore in FY26 over FY25.
The bank’s return on assets fell to 1.75% from 2.11% year-on-year, while return on equity declined to 14.35% from 20.40%.
The bank’s financial results showed that its net interest income (NII) rose 17.05% to ₹3,851 crore from ₹3,290 crore last year. Net interest margin (NIM) for the quarter stood at 4.15%.
Following the results, the company’s shares declined, with the lender closing at ₹75.89 per share, down nearly 1.15%.
Total deposits of the bank increased 12% to ₹3,47,163 crore as of March 31, compared to ₹3,10,212 crore a year ago. CASA increased 7% year-on-year to ₹1,54,816 crore, while the CASA ratio stood at 44.59% as of March 31. Net advances of the lender grew 16% year-on-year to ₹2,53,626 crore.
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However, the bank reported an improvement in its asset quality, with gross non-performing assets (NPA) decreasing 4.02% to ₹6,028.12 crore in the January–March quarter.
Net NPA dropped 10.67% to ₹379.90 crore from ₹425.28 crore. In its post-results presentation, the bank said it aims to focus on “bringing GNPA down gradually below 3%. Net NPA level to be maintained at 0.50%.”
CRAR improved to 26.65% as of March 31, compared to 25.56% a year ago. Tier 1 capital improved to 25.56% as of March 31, up from 23.51% a year earlier.