IDBI Bank's Q1 FY27: Profit Soars with Strong Credit Growth

IDBI Bank's Q1 FY27 results show a 5% increase in net profit, reaching Rs 2,115 crore, driven by a 10% rise in net interest income and robust credit growth. Asset quality improved with a reduction in gross NPAs to 2.30%. Capital adequacy and credit-deposit ratios saw significant improvement.

IDBI Bank has announced a 5% year-on-year increase in net profit amounting to Rs 2,115 crore for the first quarter of FY27. The bank attributes this surge to double-digit growth in net interest income alongside robust credit growth. Its asset quality has also seen an improvement, with gross non-performing assets reducing to 2.30%.

The bank's net interest income grew by 10% to Rs 3,486 crore, illustrating strong business momentum. Total business transactions increased by 15% year-on-year, while deposits and net advances rose by 10% and 22% respectively, signaling sustained loan growth.

Asset quality metrics showed improvements with the bank's gross NPA down to 2.30%, a 63 basis point reduction, and net NPA marginally down to 0.16%. The capital position strengthened with the Capital Adequacy Ratio improving to 26.92%, and a higher Credit-Deposit Ratio of 79.50%. Among other highlights, the net interest margin slightly declined to 3.61%.