IDBI Bank on Saturday reported a 39.2 percent year-on-year decline in net profit to Rs 2,206 crore for the second quarter of FY27, compared with Rs 3,627 crore in the corresponding period last year. However, the lender's net interest income (NII) jumped nearly 29 percent, while net interest margin (NIM) expanded significantly and asset quality improved.
The sharp decline in reported profit was largely attributable to a high base in the year-ago quarter, which included a one-off gain of Rs 1,699 crore from the sale of a strategic investment in NSDL. Excluding this gain, IDBI Bank said its net profit increased 14 percent year-on-year.
Sequentially, net profit rose around 4 percent from Rs 2,115 crore in the April-June quarter.
Net interest income, the difference between interest earned and interest paid, increased 28.7 percent year-on-year to Rs 4,227 crore from Rs 3,285 crore a year earlier. On a sequential basis, NII grew approximately 21 percent from Rs 3,486 crore.
The bank's net interest margin improved to 4.11 percent from 3.71 percent in the year-ago quarter, an expansion of 40 basis points. NIM also increased 50 basis points sequentially from 3.61 percent in the June quarter.