IDBI Bank’s ESG score improved to 55 in S&P Global’s Corporate Sustainability Assessment (CSA) 2025 from 42 in CSA 2024, reflecting its commitment to ESG initiatives. The Bank’s statutory auditors, Chokshi & Chokshi LLP and Suri & Co., conducted an independent reasonable assurance of the BRSR Core disclosures for FY 2025-26. The Bank completed a comprehensive Stakeholder Engagement & Materiality Assessment (SEMA) to identify and prioritise ESG topics based on their actual and potential impacts on the economy, the environment and the society.

ESG Performance and Governance

The Bank recorded an improvement in its ESG performance, with scores under the Environmental, Social and Governance parameters improving to 17, 62 and 63, respectively, in CSA 2025, from 10, 51 and 47, respectively, in CSA 2024. Governance remains central to the Bank’s sustainability approach, with ESG-related matters monitored and periodically reviewed by dedicated Board-level and senior management-level committees. The Board-level CSR & ESG Committee plays a central role in shaping and overseeing the Bank’s ESG strategy.

Financial and Operational Metrics

The Bank’s paid-up capital stood at ₹ 1,07,52,40,21,750. As on March 31, 2026, the Bank had a network of 2,243 banking outlets and 283 offices, totalling 2,526 locations nationally. The Bank serves a broad and diversified customer base comprising individuals, institutional entities, agrarian communities, medium, micro and small businesses, large corporates as well as socio-economically underprivileged sections of the society.

Employee Statistics

As on March 31, 2026, the Bank had 20,123 employees and 570 workers. The turnover rate for permanent employees was 4.82% in FY 2025-26, compared to 5.63% in FY 2024-25. The Bank spent 0.32% of its total revenue on well-being measures for employees and workers in FY 2025-26.

Environmental Impact

The Bank’s total Scope 1 and Scope 2 emissions for FY 2025-26 were 60,683.78 tCO2e. The total energy consumed from non-renewable sources was 3,12,327.06 GJ. The total volume of water consumption was 5,40,151.13 KL. The total waste generated was 600.36 MT. The Bank commissioned solar power plants with a capacity of 40 kWp at its Head Office in Mumbai and 20 kWp at the Kolhapur Regional Office.

Stakeholder Grievances

The Bank received 66,538 customer complaints in FY 2025-26, with 795 pending resolution at the end of the year. Shareholder grievances filed during the year stood at 2,468, with one pending resolution. The Bank received 137 complaints under the Central Vigilance Commission (CVC) mechanism and the Whistle Blower Solution (WBS), with 28 pending resolution.

IDBI Bank delivered a landmark financial performance in FY 2025-26, reporting its highest-ever Profit After Tax (PAT) and crossing a major business milestone, underscoring the Bank's sustained growth trajectory and strengthened financial position.

Financial Highlights: Record Profitability and Business Growth

The Bank's total business crossed ₹6 lakh crore during FY 2025-26, a significant milestone reflecting broad-based growth across both deposits and advances. Deposits registered a robust 23% year-on-year growth to ₹3.47 lakh crore, while net advances grew 16% year-on-year to ₹2.53 lakh crore. The CASA ratio remained healthy at 44.59%, reflecting a stable and cost-effective funding profile.

The following table summarises the Bank's key financial metrics for FY 2025-26:

The Bank's PAT of ₹9,513 crore for FY 2025-26 represents a 27% growth over the previous financial year, driven by stable business growth, operational efficiencies, a strong liability franchise, and disciplined portfolio management. Earnings per Share (EPS) for the year stood at ₹8.85, while the Book Value per Share (excluding Revaluation Reserve, Foreign Currency Translation Reserve, intangible assets and Deferred Tax Asset) was ₹51.85 as on March 31, 2026.

Asset Quality: Industry-Leading Metrics

The Bank's balance sheet demonstrated exceptional strength in asset quality. Gross Non-Performing Assets (GNPA) declined sharply to 2.32% of gross advances, while Net NPA reached a record low of 0.15%, supported by an industry-leading Provision Coverage Ratio (PCR) of 99.39% as on March 31, 2026.

The gross advances portfolio maintained a well-balanced composition, with retail advances accounting for 70% and corporate advances for 30% as on March 31, 2026, reinforcing the Bank's focus on portfolio granularity and risk diversification. The Bank also successfully achieved all prescribed Priority Sector Lending (PSL) targets, including sub-targets, on an average basis as on March 31, 2026.

Capital Adequacy: Well-Capitalised Position

The Bank's capital position remained robust. The Capital to Risk-Weighted Assets Ratio (CRAR) stood at 26.65% as on March 31, 2026, significantly above the regulatory minimum requirement of 11.50%. Common Equity Tier 1 (CET1) plus Capital Conservation Buffer (CCB) ratio was at 25.56%, against the regulatory requirement of 8.00%. The Leverage Ratio stood at 10.51%, well above the minimum regulatory requirement of 3.50%.

Business Strategy and Key Initiatives

During FY 2025-26, the Bank's strategic focus remained centred on driving sustainable and diversified growth while strengthening customer engagement, operational resilience, digital capabilities, and governance standards. The Bank pursued balanced growth across retail, agriculture, MSME, and corporate segments, with emphasis on enhancing portfolio granularity and earnings stability.

Key digital and operational milestones during the year included:

• i-MSME Express: An innovative digital underwriting platform leveraging real-time data ecosystems to enable swift, collateral-free credit delivery to micro, small, and medium enterprises.
• SAJAG: A predictive, analytics-driven asset monitoring system functioning as an early-warning mechanism to support borrowers proactively before financial stress intensifies.
• Retail Loan Utsav: A customer-centric initiative designed to offer seamless, cost-effective credit during peak festive and demand cycles.
• Enterprise Fraud Risk Management Solution (EFRMS) Upgrade: The system now integrates Explainable AI (XAI), advanced behavioural biometrics, and predictive analytics to secure customer transactions in real time.

The Bank's network expanded to 2,243 banking outlets (including 2,174 branches and 69 fixed Business Correspondent outlets under the IDBI SAMEEP model) and 3,011 ATMs as on March 31, 2026. During the year, the Bank opened 115 new banking outlets.

Subsidiaries and Consolidated Performance

On a consolidated basis, IDBI Bank's net profit attributable to the group for FY 2025-26 stood at ₹9,210 crore. The parent company, IDBI Bank Ltd., accounted for 98.39% of consolidated net assets at ₹67,638 crore and 103.29% of consolidated profit at ₹9,513 crore. Key subsidiaries including IDBI Capital Markets & Securities Ltd., IDBI Trusteeship Services Ltd., IDBI Intech Ltd., IDBI Asset Management Ltd., and IDBI MF Trustee Co. Ltd. contributed to the consolidated results.

ESG and Sustainable Banking

As a responsible financial institution, the Bank continued to align its business priorities with broader Environmental, Social, and Governance (ESG) objectives. The Bank's ESG score improved to 55 in S&P Global's Corporate Sustainability Assessment (CSA) 2025, from 42 in CSA 2024. The Bank sanctioned ₹145 crore towards CSR interventions in FY 2025-26, covering education, healthcare, rural development, and water management. The Bank also published its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26, with reasonable assurance provided by its statutory auditors on BRSR Core disclosures.

Outlook

The Bank's strategic direction going forward will continue to be anchored around building a trust-driven and customer-focused banking franchise. Focus will remain on driving business growth through customised product offerings, strengthening institutional liability relationships, improving the share of higher-rated clients within the corporate advances portfolio, and enhancing portfolio quality through prudent risk selection. Technology-led transformation with increasing focus on AI-driven capabilities, customer-centric digital platforms, and analytics-led decision-making will continue to remain central to the Bank's long-term growth strategy.