IDBI Bank has announced its financial results for the third quarter, delivering a modest growth in profit while continuing to strengthen its asset quality.
For the quarter, IDBI Bank posted a net profit of ₹1,935.5 crore, marking a 1.4% increase compared to ₹1,908.3 crore in the same period last year. The steady profit growth comes even as the bank’s Net Interest Income (NII) declined sharply, highlighting the impact of margin pressures in a challenging interest rate environment.
Net Interest Income for the quarter fell 24% year-on-year to ₹3,209.5 crore, down from ₹4,228.2 crore in Q3 of the previous financial year. The decline in NII suggests tighter spreads and changing deposit dynamics, which continue to weigh on the banking sector overall.
On the asset quality front, IDBI Bank showed further improvement on a sequential basis. Net Non-Performing Assets (Net NPA) declined to 0.18% from 0.21% in the previous quarter, indicating better recoveries and controlled slippages. In absolute terms, net NPAs reduced to ₹425.3 crore compared to ₹474.2 crore quarter-on-quarter.
Gross asset quality also remained stable. Gross NPA stood at 2.57% in Q3, improving from 2.65% in the previous quarter. However, in value terms, gross NPAs edged up slightly to ₹6,281 crore from ₹6,242 crore on a quarter-on-quarter basis, reflecting marginal fresh stress in select accounts.
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