Why Did IDBI Bank Report a 46.6% Drop in Q3 Net Profit?
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Synopsis
IDBI Bank's latest report reveals a staggering **46.6% drop** in standalone net profit for Q3 FY26, raising eyebrows in the financial sector. Despite this decline, the bank's year-on-year growth shows a slight increase. What does this mean for the bank's future performance? Explore the details behind these figures.
Key Takeaways
- 46.6% drop in net profit for Q3 FY26.
- Year-on-year profit increase of 1.42%.
- Net interest income fell 24% year-on-year.
- Gross non-performing assets improved to 2.57%.
- Deposits grew by 9% year-on-year.
Mumbai, Jan 17 (NationPress) On Saturday, IDBI Bank disclosed a 46.6% decline in its standalone net profit for the December quarter of the current fiscal year (Q3 FY26), reflecting a significant quarter-on-quarter (QoQ) drop. The bank recorded a profit of Rs 1,935.45 crore for the quarter ending December 31, compared to Rs 3,627.36 crore in the previous quarter (Q2) of FY26.
In contrast, when looking at the year-on-year performance, the bank's profit saw a slight increase of 1.42%, up from Rs 1,908.27 crore during the same quarter the previous financial year (Q3 FY25), as per the official stock exchange report.
During this quarter, the bank faced challenges with its core income, as net interest income fell 24% year-on-year to Rs 3,209.5 crore, down from Rs 4,228.2 crore in the same quarter last financial year.
On a positive note, asset quality improved slightly on a quarter-on-quarter basis, with gross non-performing assets decreasing to 2.57% of total advances by the end of December 2025, down from 2.65% at the end of September 2025.
Net NPAs also saw a decline to 0.18% from 0.21% in the preceding quarter, as indicated in their regulatory filing.
The bank reported a robust growth in deposits over the year, with total deposits rising to Rs 3,07,858 crore as of December 31, 2025, compared to Rs 2,82,439 crore a year prior, marking a 9% year-on-year growth.
CASA deposits reached Rs 1,35,632 crore as of December 31, 2025, with a CASA ratio of 44.06%. This is in comparison to CASA deposits of Rs 1,30,899 crore and a higher CASA ratio of 46.35% a year earlier.
On the lending front, net advances climbed to Rs 2,38,786 crore by the end of December 2025, up from Rs 2,06,807 crore a year before.
The provision coverage ratio, including technical write-offs, remained strong at 99.33% as of December 31, 2025, slightly down from 99.47% recorded a year ago.
On the stock market, IDBI Bank's shares closed down by 0.3% on Friday at Rs 104.55 each on the BSE.
Point of View
It is crucial to remain unbiased while reporting on significant financial developments. The recent drop in IDBI Bank's net profit warrants attention, not only for its implications on the bank's operations but also for its potential impact on the broader financial market. We will continue to monitor these developments closely.
NationPress
17/01/2026
Frequently Asked Questions
What caused IDBI Bank's profit decline?
IDBI Bank's net profit fell due to a decrease in core income, particularly a significant drop in net interest income.
How does the current profit compare to last year?
Year-on-year, IDBI Bank's profit saw a slight increase of 1.42% compared to the same quarter last year.
What is the status of IDBI Bank's asset quality?
The bank's asset quality showed improvement, with gross non-performing assets declining on a quarter-on-quarter basis.
What is the bank's CASA ratio?
As of December 31, 2025, IDBI Bank's CASA ratio stood at 44.06%.
How did the stock market react to the news?
IDBI Bank's shares closed 0.3% lower at Rs 104.55 on the BSE following the profit announcement.
