IDBI Bank Q2 net profit falls 39% as net interest income jumps 29%

what happened

According to Moneycontrol, IDBI Bank's net profit for the second quarter of FY27 fell 39.2% year on year to Rs 2,206 crore, versus Rs 3,627 crore a year earlier. Net interest income, the gap between interest earned and interest paid, rose 28.7% to Rs 4,227 crore from Rs 3,285 crore.

Asset quality improved on a gross basis: the gross NPA ratio fell 18 basis points to 2.12% at the end of September from 2.30% in the previous quarter. The net NPA ratio, however, rose one basis point to 0.17%.

The results follow the Union Cabinet's approval of the sale of a 60.72% stake to Canada-based Fairfax Financial Holdings for Rs 52,878 crore, at Rs 81 per share. After the deal, the government and LIC will together hold 34% of the lender. IDBI Bank shares closed at Rs 84.12 on Friday and are down 19% so far in 2026, against an 11.5% fall in the Nifty 50.

why it matters

Stronger interest income and better asset quality matter to investors, but the profit decline and the controlling stake sale are what will drive the stock. For Indian markets, the Fairfax deal also signals foreign investor appetite for privatising state-owned banks.

market impact

IDBI Bank: the controlling stake sale to a foreign buyer drives the share price; Indian banks: appetite for bank privatisation

tags

instruments