<a href="https://www.mid-day.com/business/business-news/article/idbi-bank-q1fy27-net-profit-jumps-5-per-cent-to-rs-2115-crore-23640415" target="_blank" rel="none noopener">IDBI Bank</a> on Saturday reported a 39 per cent fall in net profit to Rs 2,205 crore for the second quarter ended September 2026, as non-interest income moderated.
The LIC-controlled bank earned a profit of Rs 3,627 crore in the year-ago period, including a one-off gain of Rs 1,699 crore from the sale of its strategic investment in NSDL.
The bank had offered over 2.22 crore equity shares, comprising an 11.11 per cent shareholding in National Securities Depository Ltd (NSDL), in its IPO at an issue price of Rs 799.87 per share and booked a net gain of Rs 1,698.96 crore.
This is the first quarterly numbers after the government earlier this week <a href="https://www.mid-day.com/business/business-news/article/cabinet-approves-idbi-bank-stake-sale-to-fairfax-for-rs-52878-crore-23655092" target="_blank" rel="none noopener">approved the sale of a 60.72 per cent stake in IDBI Bank to Canada's Fairfax Financial Holdings for about Rs 53,000 crore </a>(USD 5.5 billion), in what would be the largest foreign investment in an Indian bank and a major milestone in the country's long-delayed banking privatisation drive.
Its total income rose to Rs 9,865 crore in the second quarter from Rs 9,594 crore a year ago, IDBI Bank said in a regulatory filing.
Interest income rose to Rs 8,512 crore in the September quarter of FY27 from Rs 7,104 crore in the year-ago period.
Net interest income rose 29 per cent to Rs 4,228 crore from Rs 3,285 crore in the second quarter of last financial year.
However, non-interest income slipped 46 per cent to Rs 1,353 crore from Rs 2489 crore a year ago.
Therefore, operating profit also eased to Rs 2,893 crore against Rs 3,523 crore in the year-ago quarter.
On the asset quality front, its <a href="https://www.mid-day.com/mumbai/mumbai-news/article/rbi-report-says-npas-of-indian-banks-fell-to-multi-decadal-low-of-2-1-per-cent-23609794" target="_blank" rel="none noopener">gross non-performing assets (NPAs) </a>moderated to 2.12 per cent of gross advances at the end of September 2026 compared to 2.65 per cent a year ago.
Similarly, net NPAs or bad loans came down to 0.17 per cent at the end of September 2026 against 0.21 per cent a year ago.
The Provision Coverage Ratio (PCR) remained flat at 99.24 per cent as on September 30, 2026. Capital to Risk-Weighted Assets Ratio (CRAR) also witnessed a rise to 27.10 per cent from 25.39 per cent at the end of September 2025.
As per the proposed deal, Fairfax will be the strategic buyer for the government's 30.48 per cent stake for about Rs 26,620 crore and LIC's 30.24 per cent stake for about Rs 26,440 crore.
Canadian billionaire Prem Watsa-led Fairfax will pay Rs 81 per share, higher than the benchmark fair value of Rs 75.99 determined by two independent valuation agencies.
The deal - the largest in the banking space - marks a major milestone in a long-delayed effort to privatise IDBI Bank and reduce state ownership of commercial enterprises. The sale process began in 2022 and faced a setback earlier this year when initial bids fell below the government's reserve price.
The strategic transaction is expected to be <a href="https://www.mid-day.com/business/business-news/article/idbi-bank-deal-to-close-by-fiscal-end-after-rbi-clearance-dipam-secretary-23655425" target="_blank" rel="none noopener">completed before the end of the current financial year</a>.
This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.

The numbers came after the Centre approved the sale of a 60.72 per cent stake in IDBI Bank to Canada`s Fairfax Financial Holdings for around Rs 53,000 crore

IDBI Bank Q2FY27 net profit falls 39 per cent to Rs 2,205 crore

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This is the first quarterly numbers after the government earlier this week approved the sale of a 60.72 per cent stake in IDBI Bank to Canada's Fairfax Financial Holdings for about Rs 53,000 crore in what would be the largest foreign investment in an Indian bank 

IDBI Bank Q2FY27 net profit declines 39 per cent to Rs 2,205 crore

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Home / Business / Business News / Article / IDBI Bank Q2FY27 net profit declines 39 per cent to Rs 2,205 crore