IDBI Bank Q4 FY26: Profit Falls 5%, NII Up 17%

What moved the stock after results

Shares of IDBI Bank slipped after the lender reported its March quarter (Q4 FY26) numbers, with profit falling year-on-year despite stronger net interest income. The stock dropped around 3% from the day’s high soon after the results were in focus. From a day’s high of ₹77.39, the share price fell 2.53% to a day’s low of ₹75.43. It was later trading 1.24% lower at ₹75.82.

Q4 FY26 profit declines, profitability ratios soften

IDBI Bank reported a 5.26% year-on-year decline in net profit for the March quarter at ₹1,943 crore, compared with ₹2,051 crore in the same quarter last year. Profitability ratios also moderated on an annualised basis. Return on assets fell to 1.75% from 2.11% a year ago. Return on equity declined to 14.35% from 20.40% in the year-ago quarter. The market reaction reflected this softer profitability print, even as other operating indicators improved.

Net interest income rises 17%; margin inches up

The lender said net interest income (NII) rose 17.05% year-on-year to ₹3,851 crore, from ₹3,290 crore in the corresponding quarter last year. Net interest margin (NIM) for the quarter stood at 4.15%, up from 4.00% a year ago. The 15-basis-point improvement in NIM indicates better spread management versus the year-ago quarter, as per the reported figures.

Total business crosses ₹600,000 crore

IDBI Bank reported that total business, comprising deposits and net advances, crossed the ₹600,000 crore (₹6 lakh crore) mark. It also reported a 14% year-on-year rise in total business to about ₹600,000 crore from ₹529,000 crore a year earlier, as per the broader business update shared in the provided text. Sequentially, total business expanded from ₹547,000 crore as of December 2025.

Deposits grow 12%; CASA ratio trends lower

Total deposits increased 12% year-on-year to ₹347,163 crore as on March 31, 2026, compared with ₹310,212 crore as on March 31, 2025. CASA deposits rose 7% year-on-year to ₹154,816 crore from ₹144,398 crore. However, the CASA ratio declined to 44.59% as on March 31, 2026, versus 46.55% as on March 31, 2025. The combination of higher overall deposits and a lower CASA ratio suggests that term deposits may have contributed more to growth than low-cost CASA balances during the period.

Advances rise 16%; retail-heavy portfolio mix

Net advances grew 16% year-on-year to ₹253,626 crore, from ₹218,399 crore a year ago. The bank also disclosed that the composition of corporate versus retail in its gross advances portfolio stood at 30:70 as on March 31, 2026. The data points to a retail-led book, based on the stated split.

Asset quality improves; high provision coverage maintained

On asset quality, the gross NPA ratio improved to 2.32% as on March 31, 2026, from 2.98% as on March 31, 2025. The net NPA ratio stood at 0.15% as on March 31, 2026, and was also 0.15% as on March 31, 2025. Provision Coverage Ratio (including technical write-offs) was reported at 99.39% as on March 31, 2026. The bank said PCR has been consistently above 99% since September 2023.

Privatisation and OFS chatter adds another layer

Separately, the provided text also referenced reports that the government and LIC’s planned majority stake sale faced challenges as bids did not meet the reserve price, leading to discussion around an Offer-for-Sale (OFS) route to raise public shareholding. The text stated public float is 5.29%, with LIC holding 49.24% and the Government of India holding 45.48%. This corporate action context remains a key watch-point for investors alongside quarterly operating performance.

Key Q4 FY26 numbers at a glance (₹ crore)

Price and return snapshot mentioned in the text

The stock was cited at around ₹76.17, down 0.76% at 09:50 on April 30, 2026. It also showed a 1-month return of 20.04%, a 3-month return of -22.91%, and a 1-year return of -7.11% in the shared return table. These moves provide context to how investors have been positioning ahead of, and around, the quarterly results.

Bottom line

IDBI Bank’s Q4 FY26 print showed a year-on-year decline in profit and lower ROA and ROE, even as NII and NIM improved and balance-sheet growth remained strong. Investors are likely to track the deposit mix, CASA trajectory, and asset-quality metrics alongside any clarity on steps to improve public shareholding, including the OFS option referenced in reports.