IDBI Bank has published its highest-ever net profit of Rs 7,515 crore for the financial year ending 31st March, 2025, reflecting a robust 33 per cent year-on-year growth.
Alongside this milestone, the bank’s operating profit rose to Rs 11,079 crore, marking a 16 per cent growth compared to the previous year. IDBI Bank maintained a healthy Net Interest Margin (NIM) at 4.56 per cent, while the cost of deposits for the year stood at 4.68 per cent.
The Capital Adequacy Ratio (CRAR) demonstrated a strong improvement, reaching 25.05 per cent, a rise of 279 basis points over the previous year. The bank’s Return on Assets (ROA) improved to 1.98 per cent, up by 33 basis points, and the Return on Equity (ROE) strengthened to 20.15 per cent, a rise of 65 basis points year-on-year. The Cost to Income Ratio was recorded at 43.33 per cent, showcasing efficiency improvements.
Further strengthening its financial standing, IDBI Bank successfully reduced its asset quality stress, with Gross Non-Performing Assets (NPA) falling to 2.98 per cent and Net NPA improving sharply to 0.15 per cent.
The Provision Coverage Ratio (PCR) stood at a solid 99.48 per cent, underlining the bank’s prudent risk management approach. Reflecting confidence in its performance, the Board of Directors proposed a dividend of 21 per cent, subject to the approval of shareholders at the upcoming Annual General Meeting.
The bank’s total business crossed the Rs 5 trillion mark during FY 2025, an important growth milestone. Total Deposits grew by 12 per cent year-on-year to Rs 3,10,294 crore, while Net Advances expanded by 16 per cent to Rs 2,18,399 crore. The share of low-cost deposits remained healthy, with CASA deposits rising to Rs 1,44,479 crore, although the CASA ratio moderated slightly to 46.56 per cent compared to the previous year.
In the fourth quarter of FY 2025, IDBI Bank posted a net profit of Rs 2,051 crore, a 26 per cent increase compared to Rs 1,628 crore in the same quarter of the previous fiscal. However, the Net Interest Income (NII) for Q4 stood at Rs 3,290 crore, lower than Rs 3,688 crore reported in Q4 of FY 2024. The bank’s ROA for the quarter improved to 2.11 per cent, while the Cost of Funds and Cost of Deposits were recorded at 4.97 per cent and 4.83 per cent respectively.
In terms of asset quality, the bank made notable improvements. Gross NPA ratio dropped to 2.98 per cent from 4.53 per cent a year ago, and Net NPA ratio improved to 0.15 per cent from 0.34 per cent.
IDBI Bank’s Provision Coverage Ratio, including technical write-offs, improved to 99.48 per cent as of March 31, 2025. Its capital position remained strong, with a CRAR of 25.05 per cent and Tier 1 Capital at 23.51 per cent.
During FY 2025, IDBI Bank garnered several recognitions for its excellence. It received the ‘Best IT-Risk Management’ award and citations for ‘Best Digital Sales, Payments & Engagement’ and ‘Best Fintech and DPI Adoption’ at the 20th IBA Banking Technology Conference and Citations 2024. The bank was also awarded the PCI DSS 4.0.1 Compliance Certification, underscoring its commitment to maintaining world-class data security standards.
Further, IDBI Bank hosted ‘IDBI FinTech Fusion’ in collaboration with Amazon Web Services (AWS), where innovations from over 20 FinTech players were showcased.
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