IDBI Bank Q1 profit rises 16% YoY to ₹2,024 cr, asset quality improves further

IDBI Bank on Monday reported a 16.37% year-on-year (YoY) rise in its consolidated net profit to ₹2,023.87 crore for the quarter ended June 30, 2025, up from ₹1,739.15 crore in the same period last year. The performance was aided by higher other income, improved asset quality, and a marginal reversal in provisions.

The bank’s total income rose over 12.9% year-on-year to ₹8,498.53 crore, compared to ₹7,527.16 crore during the same period.

Interest earned during the quarter rose 5.34% YoY to ₹7,026.62 crore from ₹6,669.84 crore, with income from advances growing 7.87% to ₹4,771.16 crore from ₹4,423.04 crore during the same period. Interest income from balances with the Reserve Bank of India and interbank funds more than doubled to ₹187.96 crore. Other income also posted a strong 71.61% YoY growth to ₹1,471.91 crore.

However, according to the press release of the bank, net interest income (NII) declined marginally to ₹3,166 crore from ₹3,233 crore, as net interest margin (NIM) compressed by 50 basis points YoY to 3.68%.

Total expenditure during the quarter increased 12.82% to ₹6,120.79 crore from ₹5,424.84 crore, led by a rise in interest expenses to ₹3,851.30 crore and operating expenses to ₹2,269.49 crore. The bank also reported a net reversal in provisions of ₹179 crore, lower than the ₹443 crore reversal in Q1FY25.

Asset quality improved meaningfully. Gross non-performing assets (NPAs) declined to ₹6,385 crore from ₹7,795 crore a year ago, with the gross NPA ratio improving to 2.93% from 3.87%. Net NPAs stood at ₹447 crore, with the net NPA ratio at 0.21% compared to 0.23% YoY. The provision coverage ratio, including technical write-offs, was strong at 99.31%, slightly lower than 99.34% last year.

Return on assets improved to 2.01% from 1.83% YoY. The bank’s capital adequacy ratio rose to 25.39% from 22.42%, with its CET-1 ratio improving to 23.71% from 20.26%.

The corporate-to-retail mix in the bank’s gross advances stood at 30:70. Total assets expanded to ₹4.03 lakh crore as of June 30, 2025.

Shares of the private sector lender closed at ₹97.19, down 1.4% from the previous close of ₹98.57. The results came around the market closing hours.