Mumbai: Net profit at IDBI Bank, recently privatized in India’s largest cross-border banking M&A, fell 39% in the September quarter to 2,205 crore from 3,627 crore a year earlier due to lower other income. The year-ago period profit was boosted by one-off gains of 1,699 crore gain from the sale of a stake in NSDL sale last year.
Adjusted for this gain last year, profit would have led to a 14% jump, earnings published by the bank sold last week to Canada’s Fairfax showed. The absence of this gain hit non-interest income for the bank this quarter which fell 46% to 1,353 crore in September 2026 from 2,489 crore a year earlier.
Operating profit of the bank was also hit due to the absence of this one off gain falling 18% year on year to 2,893 crore. The results were announced just a couple of days after the government approved selling a majority 60.72% stake in IDBI Bank to Canada’s Fairfax group for 52,878 crore.
Results released on Saturday showed operating parameters of IDBI remained stable with net interest income or the difference between interest earned and interest expenses increased 29% YoY to 4,228 crore in the quarter ended September 2026.
Net interest margin, a key profitability parameter for a bank, improved to 4.11% in September 2026 from 3.71% a year ago. Operating expenses of the bank however increased 19% to 2,688 crore from 2,252 crore a year ago. Net advances increased 18% YoY to 2.71 lakh crores in September 2026.
