IDBI Bank Ltd reported a standalone net profit of ₹2,115.18 crore for the quarter ended June 30, 2026, marking a 5% year-on-year increase from ₹2,007.36 crore in the same period last year. The bank's board approved the unaudited financial results at a meeting held on July 18, 2026. Net interest income (NII) rose 10% YoY to ₹3,486 crore, while total business grew 15% to ₹5,84,725 crore, driven by strong advances and deposit growth.

Financial Performance

The bank's total interest earned increased to ₹7,541.44 crore from ₹7,021.00 crore in Q1FY26. Other income stood at ₹1,031.58 crore. Operating profit for the quarter was ₹2,167.81 crore, with provisions and contingencies amounting to ₹636.87 crore. The cost of deposits declined to 4.59% in Q1FY27 from 4.84% in the year-ago quarter, while the cost of funds fell to 4.68% from 4.98%.

Asset Quality and Capital

Asset quality improved sequentially and annually, with gross non-performing assets (GNPA) declining to 2.30% of gross advances from 2.93% a year ago. Net NPAs (NNPA) stood at 0.16%, down from 0.21% in Q1FY26. The Provision Coverage Ratio remained robust at 99.31%. The Capital Adequacy Ratio (Basel III) strengthened to 26.92%, with a CET I Ratio of 26.38%, reflecting improved resilience.

Business Growth

Total deposits grew 10% YoY to ₹3,25,757 crore, while Current Account Savings Account (CASA) deposits increased 7% to ₹1,42,162 crore. Net advances surged 22% YoY to ₹2,58,968 crore, up 2% quarter-on-quarter. The CASA ratio stood at 43.64%, and the credit-deposit ratio improved significantly to 79.50%.

IDBI Bank 's long-awaited divestment process has reached a decisive stage, with Fairfax — the Canadian financial holding company — emerging as the frontrunner to take over the state-backed lender. According to reports by The Economic Times, Fairfax has raised its offer to Rs. 81 per share, up from its earlier bid of Rs. 75 per share, in a deal valued at $5.5B or Rs. 528 Cr. However, the process has encountered fresh headwinds, with the bank's employees forum publicly disagreeing with the planned stake sale and requesting a review of the transaction.

Fairfax Raises Bid, Emerges as Preferred Acquirer

The divestment of IDBI Bank had earlier attracted notable international interest, with both Fairfax and Emirates NBD identified as participants in the bidding process. With the latest developments, Fairfax has strengthened its position as the leading contender. The revised offer of Rs. 81 per share represents an improvement over the group's earlier bid of Rs. 75 per share, reflecting Fairfax's increased commitment to securing the acquisition.

The key deal parameters, as reported, are summarised below:

Employees Forum Opposes Stake Sale

Adding a new layer of complexity to the divestment process, IDBI Bank's employees forum has publicly disagreed with the planned stake sale to Fairfax and has formally requested a review of the deal. The development, reported by a newspaper, signals internal resistance to the privatisation move and could introduce additional considerations for stakeholders involved in finalising the transaction.

Background: Divestment Process

The privatisation of IDBI Bank has been closely watched by investors and market participants as a significant milestone in the government's broader divestment agenda. The process had previously been expected to conclude with a winner being selected within a month, and the latest reports indicate that Fairfax is now positioned to be that winner. The inclusion of a prominent international financial group such as Fairfax underscores the strategic significance of the transaction for both the Indian banking sector and global investors. The employees forum's objection, however, adds a fresh dimension to the proceedings that stakeholders will need to address.