IDBI Bank Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 9,865.12 Cr (+2.80% YoY) and PAT growth of -39.20% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 17, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 9,865.12 Cr (+2.80% YoY) |
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| PAT (Q2) | Rs. 2,205.45 Cr (-39.20% YoY) |
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| EBITDA margin | 29.32% |
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| EPS (Q2) | Rs. 2.05 (-39.20% YoY) |
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| Market cap | Rs. 90,449.21 Cr |
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| CMP | Rs. 84.12 |
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Quarter Snapshot
NIM expanded 50 bps QoQ to 4.11%, reversing the compression seen through FY26, while GNPA improved to 2.12%, advances grew 17.9% YoY, and capital adequacy reached 27.10%. Reported PAT fell 39.2% YoY to Rs.2,205.45 cr due to the prior year's Rs.1,698.91 cr NSDL gain base; normalized PAT grew 2.5%. Employee cost growth of 28.7% YoY and retail segment PBT margin compression to 7.58% offset the margin and asset quality gains.
Key Investment Insights
Key Positives
- NIM expanded 50 bps QoQ to 4.11% (from 3.61% in Q1 FY27) and 40 bps YoY (from 3.71%)
- NII grew 28.7% YoY to Rs.4,227.69 cr; interest on advances grew 25.4% YoY
- GNPA improved to 2.12% from 2.30% QoQ and 2.65% YoY; NPA provisions showed a net write-back of Rs.853.62 cr with PCR at 99.24%
- Advances grew 17.9% YoY to Rs.2,71,532.67 cr and deposits grew 17.2% YoY to Rs.3,55,683.53 cr
- Capital adequacy ratio improved to 27.10% (CET1 26.55%) from 25.39% a year ago
- Normalized PAT grew 2.5% YoY to Rs.2,205.45 cr after excluding the prior-year Rs.1,698.91 cr NSDL gain (reported −39.2%)
- H1 FY27 operating cash flow of Rs.5,031.45 cr covered PAT of Rs.4,320.63 cr (1.16x); free cash flow was Rs.4,832.25 cr
- Corporate/wholesale banking segment revenue grew 40.0% YoY with PBT margin of 42.84%
Risk Factors
- Other income fell 45.7% YoY to Rs.1,352.97 cr against a prior-year base inflated by the Rs.1,698.91 cr NSDL IPO gain
- Employee cost rose 28.7% YoY (+15.1% QoQ), keeping cost-to-income at 48.17% versus 38.99% a year ago
- Retail banking PBT margin compressed to 7.58% from 11.55% a year ago and 11.47% in Q1 FY27
- Treasury segment PBT fell 66.7% YoY to Rs.775.88 cr (margin 21.09% vs 46.85%)
- Provisions swung from a Rs.636.87 cr net write-back in Q1 to a Rs.8.55 cr net charge in Q2
- Return on assets declined to 1.83% annualized from 3.55% a year ago