Important StoriesHDFC Bank reports 5% increase in Q2FY27 standalone net profit at ₹19,510 croreIDBI Bank stake sale: FinMin cites High Court ruling, Budget speeches to reject irregularity claimsAxis Bank quarterly profit rises 37.6%, but misses estimates on higher costsICICI Bank Q2 net profit jumps 22% to ₹16,333 crIndia gets tariff reprieve as Trump waives Russian oil penalties, but the threat lingersFollow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. IDBI Bank Q2 FY27 results: Net profit falls 39% to ₹2,205 cr as non-interest income moderates This is the first quarterly numbers after the government earlier this week approved the sale of a 60.72% stake in IDBI Bank to Canada’s Fairfax Financial Holdings for about ₹53,000 crore By PTI Updated - October 17, 2026 at 05:26 PM. | New Delhi, October 17 ×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/idbi-bank-q2-results-net-profit-falls-39-to-2205-cr-as-non-interest-income-moderates/article71596226.eceCopy IDBI Bank’s total income rose to ₹9,865 crore in the second quarter from ₹9,594 crore a year ago. | Photo Credit: NIHARIKA KULKARNI

IDBI Bank on Saturday reported a 39 per cent fall in net profit to ₹2,205 crore for the second quarter ended September 2026, as non-interest income moderated.

The LIC-controlled bank earned a profit of ₹3,627 crore in the year-ago period, including a one-off gain of ₹1,699 crore from the sale of its strategic investment in NSDL.

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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 ₹799.87 per share and booked a net gain of ₹1,698.96 crore.

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 ₹53,000 crore ($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 ₹9,865 crore in the second quarter from ₹9,594 crore a year ago, IDBI Bank said in a regulatory filing.

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Interest income rose to ₹8,512 crore in the September quarter of FY27 from ₹7,104 crore in the year-ago period.

Net interest income rose 29 per cent to ₹4,228 crore from ₹3,285 crore in the second quarter of last financial year.

However, non-interest income slipped 46 per cent to ₹1,353 crore from ₹2,489 crore a year ago.

Therefore, operating profit also eased to ₹2,893 crore against ₹3,523 crore in the year-ago quarter.

On the asset quality front, its gross non-performing assets (NPAs) moderated to 2.12 per cent of gross advances at the end of September 2026 compared to 2.65 per cent a year ago.

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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 ₹26,620 crore and LIC's 30.24 per cent stake for about ₹26,440 crore.

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Canadian billionaire Prem Watsa-led Fairfax will pay ₹81 per share, higher than the benchmark fair value of ₹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 completed before the end of the current financial year.

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