LIC-owned IDBI Bank on Thursday reported a marginal 5.3% drop in net income to `1,943.2 crore for the March quarter, despite a healthy core income growth.
Net interest income of the bank increased 17% to `3,851.5 crore, while the core profitability metric net interest margin grew by 15 bps to 4.15%, the city-based lender said in exchange filing on Thursday.
On the assets quality side, the bank said its asset quality sequentially with gross non-performing assets in the March quarter fell 4.02% to `6,028.12 crore from `6,280.94 crore in the previous quarter and the net NPAs declined 10.67% to `379.90 crore from `425.28 crore. In percentage terms, these ratios declined 25 bps to 2.32 and by 3 bps to 0.15.
The filing, however, did not say despite improved asset quality and healthy core income how the bottom line was hit.
Total business grew steadily to cross the `6 lakh crore mark. Deposits increased 12% to `3,47,163 crore, of which low-cost Casa increased 7% to `1,54,816 crore or in percentage terms it stood at 44.59 as against 46.55 YoY. Net advances grew 16% to `2,53,626 crore. The composition of corporate versus retail in gross advances portfolio stood at 30:70.
The bank did not disclose the slippages or loan loss provisions for the quarter. Capital adequacy of the bank improved to 26.65% as against 25.05% of which tier 1 capital improved to 25.56% from 23.51% as of March 2025.
The board has also recommended a final dividend of Rs 1.55 a share which has a face value Rs 10 for FY26. Including interim dividends of Rs 17 paid in four tranches, the total dividend for the year stands at Rs 18.55 share. The bank has not disclosed the record date for the same.
The bank counter has been lagging the main market and is down 33% year to date.