IDBI Bank Q2 net profit declines 39 pc in FY27

New Delhi: IDBI Bank on Saturday reported a 39.2 per cent year-on-year decline in net profit to Rs 2,206 crore for the second quarter of FY27 against Rs 3,627 crore in the year-ago period.

The sharp decline was due to a high base last year which included a one-off gain of Rs 1,699 crore from sale of strategic investment in NSDL.

However, excluding that net profit rose 14 per cent year-on-year, the bank said.

Sequentially, profit grew around 4 per cent from Rs 2,115 crore in the April-June quarter.

Meanwhile, net interest income (NII) jumped 28.7 per cent year-on-year to Rs 4,227 crore from Rs 3,285 crore.

On a quarter-on-quarter basis, NII grew 21 per cent from Rs 3,486 crore.

Moreover, net interest margin (NIM) expanded to 4.11 per cent from 3.71 per cent year-on-year, up 40 bps and rose 50 bps sequentially from 3.61 per cent in Q1.

Operating profit stood at Rs 2,893 crore, up 33 per cent quarter-on-quarter. Excluding the NSDL gain last year, operating profit grew 59 per cent year-on-year.

Cost-to-income ratio improved to 48.17 per cent, down 385 bps sequentially, while cost of deposits eased to 4.55 per cent from 4.69 per cent year-on-year.

Total deposits grew 17 per cent YoY to Rs 3,55,684 crore from Rs 3,03,408 crore, while net advances rose 18 per cent to Rs 2,71,533 crore from Rs 2,30,220 crore. Sequentially, deposits were up 9 per cent and advances 5 per cent.

CASA deposits rose 12 per cent YoY to Rs 1,55,877 crore. CASA ratio stood at 43.82 per cent, up 18 bps sequentially.

Earlier in the week, the Cabinet approved 60.72 per cent stake sale to Fairfax Financial Holdings for Rs 52,878 crore at Rs 81 per share.

IDBI Bank shares closed at Rs 84.11 on the BSE on Friday after falling over 7 per cent on Thursday post announcement.

However, the banking stock plunged 19 per cent year-to-date.

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