IDBI Bank's Q4 Profit Margins Slump Despite Income Surge

IDBI Bank reported a 5% decline in Q4 net profit to Rs 1,943 crore for FY 2025-26. Despite a rise in total income to Rs 9,409 crore, operating profits fell to Rs 3,043 crore. However, annual net profit increased by 27%, reaching Rs 9,513 crore, with improved asset quality.

IDBI Bank reported a 5% decline in net profit for the March quarter of FY 2025-26, amounting to Rs 1,943 crore, compared to Rs 2,051 crore the previous year. While overall income rose to Rs 9,409 crore, operating profit fell to Rs 3,043 crore, affecting the net profit figures negatively.

Despite the quarterly decline, the bank showed strong annual performance with a 27% increase in net profit to Rs 9,513 crore. Total income for the financial year also grew to Rs 35,744 crore, reflecting the bank's strategic income generation efforts, supported by an increase in interest income.

The bank's asset quality improved, with gross NPAs reducing to 2.32% from 2.98% by the end of March 2026. The provision coverage ratio remained robust at 99.39%, maintaining a high standard since September 2023. Capital adequacy also showed an upward trend, reaching 26.65% by the fiscal year-end.