IDBI Bank reported a 39% year-on-year drop in Q2 FY27 net profit to ₹2,205 crore, primarily due to a one-time gain in the previous year. Excluding this, core profit actually grew 14%, showing underlying strength.
-39.2%
Net Profit (YoY)
Q2 FY26: N/A→-39.2%
📊 One chart explains it
IDBI Bank Net Profit (₹ Crore)
Takeaway: IDBI Bank's reported net profit shows volatility, with Q2 FY26 being significantly inflated by a one-off gain, making the recent decline less alarming than it appears.
⏳ Time Machine
How today’s news fits into the bigger picture
March 2018
RBI initiates PCA for IDBI Bank
The Reserve Bank of India (RBI) placed IDBI Bank under its Prompt Corrective Action (PCA) framework due to its high Non-Performing Assets (NPAs) and low capital adequacy. This restricted the bank's lending and other activities.
January 2019
LIC completes IDBI Bank acquisition
Life Insurance Corporation of India (LIC) completed its acquisition of a controlling stake in IDBI Bank, raising its shareholding to 51%. This move was intended to recapitalize the bank and bring it out of PCA.
May 2021
IDBI Bank exits PCA framework
After nearly four years, IDBI Bank exited the RBI's PCA framework following improvements in its asset quality (Net NPA below 6% for two consecutive quarters) and capital ratios. This allowed the bank to resume normal banking operations.
September 2022
Government approves strategic disinvestment
The Cabinet Committee on Economic Affairs (CCEA) approved the of the government's and LIC's residual stake in IDBI Bank, signaling an intent for privatization.
October 2026 (earlier this week)
Fairfax acquires majority stake
Canada’s Fairfax Financial Holdings received government approval to acquire a 60.72% stake in IDBI Bank for approximately ₹53,000 crore, marking a significant step towards privatization.
Today
IDBI Bank reports a 39% YoY profit drop, but core business metrics show strong underlying growth in Q2 FY27.
What happens next?
The bank will focus on sustaining core growth and asset quality improvements under new majority owner Fairfax Financial Holdings, with Q3 FY27 results expected in January 2027.
IDBI Bank's net profit for the second quarter of FY27 saw a significant year-on-year decline of **39.2%** to **₹2,205 crore**. However, this sharp drop is largely attributable to a high base in Q2 FY26, which included a one-off gain of ₹1,699 crore from the sale of its strategic investment in NSDL. When this one-off factor is excluded, the bank's net profit actually recorded a healthy **14%** year-on-year growth. On a quarter-on-quarter basis, profit increased by 4%. The bank also reported a robust 29% year-on-year rise in Net Interest Income (NII) to ₹4,228 crore and an improved Net Interest Margin (NIM) of 4.11%. Asset quality showed improvement, with gross Non-Performing Assets (NPA) falling to 2.12% and net NPA to 0.17%.
💭 If you're wondering…
A one-off gain is an income or profit that is not expected to recur in the future, typically from a non-regular event like selling an asset. It can distort year-on-year comparisons of recurring business performance.
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Official sources
- IDBI Bank Q2 results: Net profit falls 39% to ₹2,205 cr as non-interest income moderates - Hindu BusinessLine ↗
- IDBI Bank Q2 net profit falls 39% to Rs 2205 crore on lower other income - Economic Times ↗
- IDBI Bank Q2 FY27 Net Profit Up 4% To ₹2,205 Crore, Operating Profit Rises 33% - Free Press Journal ↗
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