IDBI Bank Q4 results: IDBI Bank recorded a 5% fall in its net profit after tax (PAT) for the March quarter due to a rise in the institutional lender’s cost of funds (interest expended).
This rise in cost has weighed down on the company’s operating income for the period, according to an exchange filing.
The NSE filings showed that IDBI Bank’s net profits for the fourth quarter of the financial year ended 2025-26 dropped 5% to ₹1,943 crore, compared year-on-year with ₹2,051 crore in the same period a year ago, as per the standalone financial statements.
The lender’s net interest income (NII) for the quarter advanced 11.7% to ₹7,798 crore in the January to March quarter, compared with ₹6,978 crore in the same quarter of the previous financial year.
Factors behind Q4 PAT fall
IDBI Bank’s profits for the quarter ended March 31, 2026, were driven by the rise in cost of funds and operating expenses for the fourth quarter, according to the standalone financial statements.
NSE filings showed that IDBI Bank’s interest expense increased 7% to ₹3,947 crore in the March quarter, compared to ₹3,688 crore in the same period a year earlier. The interest expenses for a bank mean the amount of money the bank spends to pay out as an interest payment to its customers.
This payment, which is paid to the depositors or creditors, is a key factor which shows the cost of funds for the banks, much similar to an input cost for a regular company. Bank earns revenues from its interest income, but a portion of its expenses has to be given out to the depositors or creditors.
The financial statements also showed that the lender’s operating expenses, which include employee costs and other expenses, also advanced 12.4% to ₹2,419 crore in the fourth quarter, compared to ₹2,151 crore in the same period a year ago.
NPA & deposits snapshot
IDBI Bank’s financial statements showed that the lender’s gross non-performing assets (NPAs) dropped YoY to ₹6,028 crore in the March quarter, compared with ₹6,695 crore in the same period a year ago.
The gross NPA percentage figure dropped by 66 basis points to 2.32% in the fourth quarter, compared with 2.98% in the same period a year earlier. On the net interest margin front, IDBI Bank’s NIM improved to 4.15% in the March quarter, compared to 4% a year ago.
Although the lender’s wholesale banking revenues dropped in the March quarter, the retail banking and treasury operations yielded a year-on-year rise in the company’s income for the period.
IDBI Bank’s official statement mentioned that the lender recorded a 12% YoY growth in total deposits to ₹3,47,163 crore as of the quarter ended March 31, 2026, while the net advances for the period stood at ₹2,53,623 crore.
The institutional lender’s current account savings account (CASA) deposits improved 7% year-on-year, with a provision coverage ratio of 99.39%, as per the official release.
Shares of IDBI Bank briefly jumped after its Q4 results release, but afterwards, the shares were trading 1.3% lower at ₹75.75 during Thursday’s stock market session, compared to ₹76.75 at the previous market close, according to NSE data.