IDBI Bank Limited (IDBI)
₹84.12 +0.80% last close, 16 Oct
Q2 FY27 results
📅 Next results: 17 Oct 2026 (board meeting)IDBI Bank Limited's board meets on 17 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, IDBI Bank's net interest income was ₹3,497 Cr (+10.1% year on year, -9.4% on the previous quarter), and net profit ₹2,131 Cr (+5.5% year on year).
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Net interest income | ₹3,497 | +10.1% | -9.4% |
| Operating profit | ₹2,193 | -7.8% | — |
| Net profit | ₹2,131 | +5.5% | +5.8% |
| EPS (₹) | 1.98 | +5.3% | +5.9% |
| Gross NPA | 2.30% | — | — |
IDBI delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 22.23% of the IDBI shares traded on NSE were taken to delivery, against the stock's own 20-session average of 36.81%. That is lower than usual for this stock.
Delivery in the last 5 sessions: 43.5% · 41.4% · 24.5% · 29.3% · 22.2%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
IDBI Bank responded to an NSE clarification query regarding media reports claiming Cabinet approval of a Rs 52,878 crore stake sale to Fairfax. The bank clarified that its strategic disinvestment is managed entirely by the Department of Investment and Public Asset Management (DIPAM) through a competitive bidding process, and IDBI Bank itself has no role to play in the transaction. The bank referenced a prior Press Release and FAQs issued by the Ministry of Finance on October 14, 2026, confirming that all required disclosures have been made.
- Clarification sought on media report citing a Cabinet-approved Rs 52,878 crore stake sale to Fairfax
- Bank confirmed strategic disinvestment is executed directly by DIPAM via competitive bidding, with no role played by IDBI Bank
- Referred to Ministry of Finance press release and FAQs published via PIB on October 14, 2026
- Reported deal size of Rs 52,878 crore compares to IDBI Bank's market capitalization of Rs 97,242 crore (~54.4%)
The Cabinet Committee on Economic Affairs (CCEA) approved M/s 10955230 Canada Inc. (parent entity Fairfax Financial Holdings Ltd.) as the strategic buyer for IDBI Bank Ltd. The transaction involves acquiring a 60.72% equity stake (30.48% from GoI and 30.24% from LIC) for a purchase consideration of ₹52,878.08 Cr. The winning bid came in at ₹81 per share, which cleared the independent benchmark valuation price of ₹75.99 per share. Post-transaction, GoI will retain a 15% stake and LIC will hold 19%, both transitioning to public shareholders with board nominees withdrawn.
- Winning bid of ₹81 per share was accepted, exceeding the average benchmark fair valuation of ₹75.99 per share
- Total purchase consideration stands at ₹52,878.0806181 Cr for a 60.72% equity stake
- Stake split comprises 30.48% from the Government of India and 30.24% from LIC
- Residual stakes of 15% (GoI) and 19% (LIC) will be retained initially and reclassified as public shareholding
- The winning bid price of ₹81 per share is below IDBI Bank's current market trading price of ₹90.40
IDBI Bank released its provisional quarterly business figures for the period ending September 30, 2026. Total business expanded by 18% YoY to ₹6,27,149 crore compared to ₹5,33,628 crore a year earlier. Total deposits rose 17% YoY to ₹3,55,611 crore, supported by a 12% YoY growth in CASA deposits to ₹1,55,882 crore. Net advances increased 18% YoY to ₹2,71,537 crore from ₹2,30,220 crore as of September 30, 2025.
- Total Business reached ₹6,27,149 crore, up 18% YoY from ₹5,33,628 crore as of Sept 30, 2025
- Net Advances increased 18% YoY to ₹2,71,537 crore versus ₹2,30,220 crore
- Total Deposits grew 17% YoY to ₹3,55,611 crore from ₹3,03,408 crore
- CASA Deposits rose 12% YoY to ₹1,55,882 crore compared to ₹1,38,934 crore
India Ratings has reaffirmed IDBI Bank Limited's Fixed Deposits rating at 'IND AA/Stable' and Certificate of Deposits (up to INR 35,000 Cr) at 'IND A1+'. The agency highlighted strong capitalisation with a CET1 ratio of 26.38% and low net NPAs of 0.16% as of 1QFY27. Ratings consolidation excluded any sovereign capital support assumptions due to the ongoing strategic divestment of a 60.72% combined stake by GoI and LIC. Multiple legacy debt instruments totaling INR 2,904 Cr (Senior debt, Omni Infrastructure bonds, and Basel III Tier II bonds) were withdrawn.
- Fixed Deposits affirmed at 'IND AA/Stable' and Certificate of Deposits affirmed at 'IND A1+' (size INR 350,000 million)
- Common Equity Tier 1 (CET1) ratio stood at a strong 26.38% as of 1QFY27 (up from 25.56% in FY26)
- Gross NPAs declined to 2.30% with Net NPAs at 0.16% and Provision Coverage Ratio at 93.01% in 1QFY27
- Withdrawn ratings for matured/redeemed bonds: INR 40 million Senior debt, INR 10,000 million Omni Infrastructure bonds, and INR 19,000 million Tier II bonds
- Housing loan portfolio expanded to INR 763.16 billion as of 1QFY27 vs INR 689.98 billion in 1QFY26
IDBI Bank Limited has informed the exchanges that it received a strike notice for September 11, 2026, called by the United Forum of Bank Unions (UFBU) and the All India Bank Officers' Association (AIBOA) in support of their demands. The filing was made under Regulations 30 and 51 of SEBI LODR. With IDBI operating 2,128 branches and 3,120 ATMs, branch-level banking services may experience brief disruption on the day of the strike. Given the short one-day duration and widespread digital banking alternatives, financial impact is expected to be minimal.
- Strike notice scheduled for September 11, 2026
- Strike called by United Forum of Bank Unions (UFBU) and All India Bank Officers' Association (AIBOA)
- Filing submitted pursuant to Regulations 30 & 51 of SEBI LODR Regulations, 2015
- Intimation dated September 10, 2026
IDBI Bank responded to an NSE query regarding media reports claiming Fairfax plans to exit IIFL Finance to fund a bid for IDBI Bank. The bank clarified that the strategic disinvestment process is confidential and run directly by the Government of India (GoI), meaning IDBI Bank can neither confirm nor deny the report. IDBI Bank noted it has no role in the reported IIFL Finance transaction and is not aware of any undisclosed price-sensitive information. The Government of India and LIC are currently in the process of divesting a combined 60.72% stake in the bank.
- Clarification issued on September 9, 2026, following NSE surveillance letter dated September 8, 2026
- Addressed media reports titled 'Fairfax plans IIFL Finance exit to fund IDBI Bank bid'
- Bank affirmed strategic disinvestment is run under GOI competitive bidding guidelines without operational involvement from the bank
- GoI and LIC are actively divesting a 60.72% controlling stake in IDBI Bank
IDBI Bank Limited has informed the stock exchanges that Shri Sunit Sarkar, Executive Director (Senior Management Position), has ceased to be Senior Management Personnel. The retirement comes consequent upon attaining the age of superannuation. The change is effective from the close of business hours on August 31, 2026, and represents a routine leadership retirement with no operational disruption.
- Shri Sunit Sarkar ceases to be Executive Director (Senior Management Personnel) of IDBI Bank.
- Cessation is effective from the end of business hours on August 31, 2026.
- The departure is due to attaining the standard age of superannuation.
ICRA has reaffirmed IDBI Bank's long-term debt rating at '[ICRA]AA (Stable)' and its short-term certificate of deposit programme of Rs 35,000 crore at '[ICRA]A1+'. Total rated debt amount decreased to Rs 48,103 crore (from Rs 51,003 crore) following the redemption and withdrawal of Rs 1,000 crore in infrastructure bonds and Rs 1,900 crore in Basel III Tier II bonds. The agency highlighted strong capitalisation (CRAR of 26.92% as of June 30, 2026) and healthy asset quality metrics, balanced against near-term NIM compression risks.
- ICRA reaffirmed long-term bond rating at [ICRA]AA (Stable) and CD programme at [ICRA]A1+ (Rs 35,000 crore)
- Withdrew ratings on Rs 1,000 crore infrastructure bonds and Rs 1,900 crore Basel III Tier II bonds upon full redemption
- Capital Adequacy Ratio (CRAR) stood strong at 26.92% with Tier I at 26.38% as of June 30, 2026
- Total deposits grew 9.8% YoY to Rs 3,25,757 crore with a CASA share of 43.64% as of June 30, 2026
- Contingent provisions stood at Rs 1,054 crore (0.41% of standard advances) supporting solvency
CARE Ratings has reaffirmed its highest short-term rating of 'CARE A1+' on IDBI Bank's ₹35,000 crore Certificate of Deposit programme. The rating reflects the bank's strong capital adequacy ratio of 26.92% (Tier-I CAR at 26.38% as of June 30, 2026) and a robust provision coverage ratio of 93.02%. It also factors in an increasingly granular portfolio, with Retail, Agriculture, and MSME (RAM) advances accounting for ~70% of total advances. Monitorables highlighted by the agency include NIM compression (3.06% in Q1FY27) and the progress of the strategic stake sale of up to 60.72% by GoI and LIC.
- CARE reaffirmed 'CARE A1+' rating on the ₹35,000 crore Certificate of Deposit programme.
- Capital Adequacy Ratio (CAR) stood at a comfortable 26.92% (Tier-I at 26.38%) as of June 30, 2026.
- RAM (Retail, Agriculture, and MSME) advances constituted ~70% of total advances as of March 31, 2026.
- Provision Coverage Ratio (PCR) stood at 93.02% as of June 30, 2026, while Gross NPA was 2.32% as of March 31, 2026.
IDBI Bank has responded to an NSE query dated August 24, 2026, regarding a significant increase in trading volume across exchanges. The bank clarified that it is fully compliant with Regulation 30 of SEBI LODR and has no undisclosed price-sensitive information or impending material announcements. Additionally, it noted that the strategic disinvestment process is handled directly by DIPAM, and related developments are disclosed promptly as they occur.
- Responded to NSE clarification request sequence no. 17395 dated August 24, 2026
- Confirmed no undisclosed price-sensitive information or pending announcements exist
- Clarified strategic disinvestment is handled by DIPAM with disclosures made on material developments
CRISIL Ratings has reaffirmed its ratings on IDBI Bank's debt instruments, maintaining 'Crisil AA+/Stable' on Fixed Deposits, 'Crisil AA/Stable' on Long-term Bonds, and 'Crisil A1+' on Certificate of Deposits (Rs 40,000 crore). Ratings on Rs 1,900 crore Tier-II bonds and Rs 1,000 crore Omni bonds were withdrawn following redemption. CRISIL noted the bank's strong capital adequacy (CAR at 26.9% as of June 30, 2026), improved asset quality (Gross NPA 2.3%, Net NPA 0.2%), and continuing support expectations from LIC (49.24% stake) and GoI (45.48% stake) pending strategic divestment.
- CRISIL reaffirmed ratings across Fixed Deposits (AA+/Stable), Infrastructure Bonds (AA/Stable, Rs 10,000 cr), and CDs (A1+, Rs 40,000 cr)
- Ratings on Rs 1,900 cr Tier-II Bonds and Rs 1,000 cr Omni Bonds withdrawn on full redemption
- Capital Adequacy Ratio (CAR) remained robust at 26.9% (Tier-I at 26.4%) as of June 30, 2026
- Asset quality maintained with Gross NPA at 2.3% and Net NPA at 0.2% as of June 30, 2026
- Total deposits stood at Rs 3,25,757 cr with a healthy CASA ratio of 43.64% as of June 30, 2026
IDBI Bank has regularized the appointment of two directors, Shri Abhijit Chakravorty and Shri Ketan Vikamsey, as Independent Directors following a special resolution at the 22nd AGM held on July 21, 2026. Both were previously Additional Directors and will now serve consecutive 2-year terms. This procedural step ensures compliance with the Companies Act and Banking Regulation Act. The bank continues to operate under a high promoter holding of 94.72% while a 60.72% stake divestment process by the Government and LIC remains the primary long-term trigger.
- Special Resolution passed at the 22nd Annual General Meeting held on July 21, 2026
- Shri Abhijit Chakravorty appointed as Independent Director for a 2-year term starting May 19, 2026
- Shri Ketan Vikamsey appointed as Independent Director for a 2-year term starting June 26, 2026
- The appointments are in accordance with Section 10A(2A) of the Banking Regulation Act, 1949
IDBI Bank shareholders approved all six resolutions at the 22nd AGM held on July 21, 2026, with majorities exceeding 99.7%. Key approvals include the appointment of two Independent Directors and the reappointment of two Deputy Managing Directors, ensuring board continuity. Shareholders also sanctioned material related party transactions with LIC Mutual Fund, which is notable given LIC's role as a major promoter. The adoption of FY26 financial statements received nearly unanimous support at 99.9993% approval.
- 6 resolutions passed with requisite majority at the 22nd AGM held on July 21, 2026
- Reappointment of Jayakumar S. Pillai as Deputy Managing Director for 1 year approved with 99.76% votes
- Appointment of two Independent Directors, Abhijit Chakravorty and Ketan Vikamsey, for 2-year terms
- Material Related Party Transactions with LIC Mutual Fund approved with 99.93% assent
IDBI Bank held its 22nd Annual General Meeting on July 21, 2026, where shareholders approved six key resolutions. These included the adoption of FY26 financial statements and the re-appointment of Shri Jayakumar S. Pillai as Deputy Managing Director for a one-year term. Additionally, shareholders approved the appointment of two Independent Directors and cleared material related-party transactions with LIC Mutual Fund. The meeting was chaired by Independent Director Shri Sanjay G. Kallapur following the vacancy in the Chairman's office.
- 6 resolutions were passed by shareholders, including the adoption of audited standalone and consolidated financial statements for FY26.
- Shri Jayakumar S. Pillai re-appointed as Deputy Managing Director for a 1-year term effective June 12, 2026.
- Two Independent Directors, Shri Abhijit Chakravorty and Shri Ketan Vikamsey, appointed for 2-year terms starting May and June 2026 respectively.
- Approval granted for material related-party transactions with LIC Mutual Fund (LICMF).
- Total of 42 speaker shareholders participated in the meeting, which concluded at 2:00 p.m.
IDBI Bank reported a 5% YoY increase in net profit to ₹2,115 crore for Q1 FY27, supported by a 10% growth in Net Interest Income (NII) to ₹3,486 crore. Asset quality remains a standout feature with Gross NPA improving to 2.30% and Net NPA at a very low 0.16%. While credit growth was robust at 22% YoY, deposit growth lagged at 10%, causing the Credit-Deposit (CD) ratio to climb to 79.50%. The bank remains exceptionally well-capitalized with a CRAR of 26.92%.
- Net Profit increased 5% YoY to ₹2,115 crore, accounting for approximately 23% of the TTM PAT.
- Net Advances grew 22% YoY to ₹2,58,968 crore, driven by a 70% retail-heavy portfolio mix.
- Gross NPA ratio improved by 63 bps YoY to 2.30%, while Net NPA stood at 0.16%.
- Capital Adequacy Ratio (CRAR) strengthened to 26.92%, up 153 bps from 25.39% in the previous year.
- Credit-Deposit Ratio increased significantly to 79.50%, up 810 bps YoY, indicating tighter liquidity management.
Financial Performance
Revenue Growth by Segment
Interest income from advances and bills reached INR 4,779.61 Cr in Q2 FY26, while income on investments stood at INR 2,062.13 Cr. Total interest income of INR 7,104 Cr showed a 1% QoQ growth but a 5% YoY decline from INR 7,442 Cr. Non-interest income surged 90% YoY to INR 2,489 Cr, primarily driven by a one-time profit of INR 1,699 Cr from the sale of an investment in NSDL.
Geographic Revenue Split
Not explicitly disclosed by region; however, international operations conducted through GIFT City are integrated into the Corporate/Wholesale Banking segment. The bank operates a domestic network of 2,128 branches as of March 31, 2025.
Profitability Margins
Net Profit for Q2 FY26 improved by 98% YoY to INR 3,627 Cr compared to INR 1,836 Cr in Q2 FY25. Net Interest Margin (NIM) compressed by 116 bps YoY to 3.71% from 4.87%, as advances repriced faster than deposits in a declining interest rate environment. Return on Assets (RoA) improved to 3.55% in Q2 FY26 from 1.97% YoY.
EBITDA Margin
Operating profit (proxy for EBITDA in banking) improved by 17% YoY to INR 3,523 Cr in Q2 FY26 from INR 3,006 Cr. The Cost to Net Income Ratio improved to 38.99% from 42.05% YoY, reflecting better operational efficiency and higher non-interest income contribution.
Capital Expenditure
While specific future CAPEX figures are not disclosed, the bank expanded its network to 2,128 branches and 3,120 ATMs by March 31, 2025. Historical expansion was limited to 282 branches between FY17 and FY25 due to previous PCA restrictions.
Credit Rating & Borrowing
The bank maintains an [ICRA]A1+ rating for its INR 35,000 Cr Certificate of Deposit programme. Infrastructure bonds of INR 3,000 Cr and Senior Bonds of INR 302 Cr are rated [ICRA]AA (Stable). Borrowing costs are reflected in the Cost of Funds, which stood at 4.82% in Q2 FY26, a slight decrease of 5 bps YoY.
Operational Drivers
Raw Materials
In banking, the primary 'raw materials' are deposits and borrowings. Cost of Deposits was 4.69% in Q2 FY26 (up 4 bps YoY), and the Cost of Funds was 4.82% (down 5 bps YoY). CASA deposits represent 45.8% of total deposits.
Import Sources
Not applicable as a financial institution; however, the bank sources its 'capital' from domestic depositors and institutional investors across India.
Key Suppliers
Not applicable; the bank's primary 'suppliers' are its 3.03 lakh crore deposit base providers, including retail and corporate depositors.
Capacity Expansion
Current capacity includes 2,128 branches and 3,120 ATMs. The bank plans to expand operations at a healthy pace compared to the industry average following its exit from the PCA framework.
Raw Material Costs
Interest expended (cost of capital) for the half-year ended Sept 30, 2025, was INR 8,351.34 Cr. Cost of deposits increased slightly to 4.69% due to industry-wide competition for term deposits.
Manufacturing Efficiency
Capacity utilization in banking is measured by the Credit-Deposit (CD) ratio. Net advances grew 15% YoY to INR 2,30,220 Cr against a deposit growth of 9% to INR 3,03,510 Cr, indicating improving utilization of the deposit base.
Logistics & Distribution
Distribution is managed through its 2,128 branches. Operating expenses for the half-year ended Sept 30, 2025, were INR 4,147.23 Cr, supporting the physical and digital delivery of financial services.
Strategic Growth
Expected Growth Rate
14%
Growth Strategy
Growth will be driven by focusing on the RAM (Retail, Agriculture, MSME) segment, which now constitutes ~70% of total advances. The bank signed an MoU with NSIC to strengthen MSME outreach and is investing in digital interfaces to capture the shift in consumer preference toward digital banking.
Products & Services
Retail loans, MSME financing, Agriculture loans, Corporate/Wholesale banking, Trade Finance, Treasury services, and CASA deposit accounts.
Brand Portfolio
IDBI Bank, IDBI Capital, IDBI Intech, IDBI Asset Management.
New Products/Services
Digital Banking Units (DBUs) are planned but not yet operational. The bank is also showcasing strengths in Trade Finance and Treasury through international seminars like SIBOS 2025.
Market Expansion
Targeting growth in the RAM segment and expanding the branch network beyond the current 2,128 locations to regain market share, which fell from 2.9% in 2016 to 1.2% in 2025.
Market Share & Ranking
Market share in net advances stood at 1.2% as of June 30, 2025. The bank is categorized as a Mid-Size Private Sector Bank.
Strategic Alliances
MoU with National Small Industries Corporation (NSIC) for MSME outreach; participation in the 'India Pavilion' coordinated by the Indian Banks’ Association (IBA).
External Factors
Industry Trends
The industry is shifting toward digital-first banking and retail-led credit growth. IDBI is positioning itself by increasing its RAM share to 70% and investing in digital infrastructure to lower the 38.99% cost-to-income ratio.
Competitive Landscape
Competes with other private and public sector banks for deposits and RAM segment loans. Market share has stabilized at 1.2% after years of decline under PCA.
Competitive Moat
The bank's moat lies in its strong CASA ratio (45.8%) and its significant recovery potential from a heavily provisioned legacy stressed asset pool. These are sustainable as long as the bank maintains its 2,128-branch reach and 95% PCR.
Macro Economic Sensitivity
Highly sensitive to interest rate cycles; a 1% shift in rates significantly impacts NIM due to the faster repricing of the 70% RAM-heavy loan book compared to term deposits.
Consumer Behavior
Increasing preference for digital banking; IDBI is responding by enhancing its digital interface to maintain its 9% YoY deposit growth.
Geopolitical Risks
Ongoing geopolitical developments are monitored for their impact on borrower cash flows and potential stress in the retail sector, which could affect the 0.21% Net NPA level.
Regulatory & Governance
Industry Regulations
Complies with Basel III norms, maintaining a Tier I ratio of 23.71% and a CRAR of 25.39%, significantly above the regulatory minimums.
Environmental Compliance
The bank's Credit Policy restricts exposure to industries producing ozone-depleting substances. ESG risks are considered low due to portfolio diversification and short-to-medium term lending.
Taxation Policy Impact
The bank reported a tax expense of INR 1,071.49 Cr for Q2 FY26 on a pre-tax profit of INR 4,698.49 Cr, implying an effective tax rate of approximately 22.8%.
Legal Contingencies
The bank benefits from recoveries in written-off accounts, which supported operating profitability in Q2 FY26. Specific values for pending court cases are not disclosed, but the bank maintains a 95% provision coverage ratio for NPAs.
Risk Analysis
Key Uncertainties
The primary uncertainty is the 60.72% stake sale by GoI and LIC. A change in ownership could impact the bank's ability to maintain its core deposit base and strategic direction.
Geographic Concentration Risk
Operations are primarily domestic with 2,128 branches; international exposure is limited to the GIFT City unit.
Third Party Dependencies
Dependency on SWIFT for international operations and the IBA for central coordination in global seminars like SIBOS.
Technology Obsolescence Risk
Cybersecurity and data breaches are identified as key monitorable risks. The bank is investing in digital upgrades to mitigate the risk of falling behind digital-native competitors.
Credit & Counterparty Risk
Fresh NPA generation rate is low at 1.01%. The vulnerable book is manageable, but slippages from recently originated advances remain a monitorable risk for future profitability.
