IDBI Bank reported a 39% decline in net profit to ₹2,205 crore for the September quarter, mainly because the year-ago period included a large one-off gain from the sale of its stake in NSDL.
New Delhi, October 18 — IDBI Bank reported a 39% fall in net profit to ₹2,205 crore for the second quarter ended September 2026, compared with ₹3,627 crore in the same period last year.
The sharp year-on-year decline was largely due to a one-time gain of ₹1,699 crore recorded in the corresponding quarter last year from the sale of the bank’s strategic investment in National Securities Depository Ltd (NSDL).
IDBI Bank had sold over 2.22 crore equity shares, representing an 11.11% stake in NSDL, at an issue price of ₹799.87 per share and booked a net gain of ₹1,698.96 crore.
The latest results are also the first quarterly numbers released after the government approved the proposed sale of a 60.72% stake in IDBI Bank to Canada’s Fairfax Financial Holdings for around ₹53,000 crore, or about $5.5 billion.
If completed, the transaction would mark the largest foreign investment in an Indian bank and a major milestone in the government’s long-running IDBI Bank privatisation process.
During the September quarter, IDBI Bank’s total income increased to ₹9,865 crore, compared with ₹9,594 crore a year earlier.
Interest income rose to ₹8,512 crore from ₹7,104 crore, while net interest income increased 29% to ₹4,228 crore from ₹3,285 crore.
However, non-interest income declined 46% to ₹1,353 crore from ₹2,489 crore, which weighed on overall profitability.
Operating profit also declined to ₹2,893 crore, compared with ₹3,523 crore in the year-ago quarter.
The bank reported an improvement in asset quality. Its gross NPA ratio declined to 2.12%, from 2.65% a year earlier.
Net NPAs also improved to 0.17% from 0.21%. The Provision Coverage Ratio remained at 99.24%.
IDBI Bank’s Capital to Risk-Weighted Assets Ratio increased to 27.10%, compared with 25.39% at the end of September 2025.
Under the proposed strategic sale, Fairfax would acquire the government’s 30.48% stake for about ₹26,620 crore and LIC’s 30.24% stake for around ₹26,440 crore.
Fairfax is expected to pay ₹81 per share, higher than the benchmark fair value of ₹75.99 determined by two independent valuation agencies.
The transaction is expected to be completed before the end of the current financial year.
