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IDBI Bank Clocks ₹7,515 Cr Profit in FY25, Surpasses ₹5 Trillion Business Mark
IDBI Bank reports ₹7,515 Cr profit for FY 2024-25, up 33% YoY; crosses ₹5 trillion business; proposes 21% dividend; asset quality hits new highs.
Author: Neha Bodke
Published: 14 hours ago
IDBI Bank has delivered its best-ever annual performance. The bank posted a record net profit of ₹7,515 crore for FY 2024-25, marking a solid 33% year-on-year growth. For the March quarter alone, profit rose 26% to ₹2,051 crore.
The Board of Directors met in Mumbai and approved the audited results for the quarter and full financial year ended March 31, 2025. A 21% dividend has been proposed, subject to shareholder approval.
Strength Across the Board
The bank’s profitability improved on every front. Operating profit for the year rose 16% to ₹11,079 crore. Return on Assets (ROA) climbed to 1.98%, up by 33 basis points, while Return on Equity (ROE) reached 20.15%, up 65 bps.
The Net Interest Margin (NIM) stood at 4.56%, while the cost-to-income ratio improved to 43.33%. Despite a slight pressure on margins in Q4, strong non-interest income and cost controls drove profitability.
Q4 Snapshot: Resilient Performance
In Q4 FY25, the bank posted a 26% rise in net profit at ₹2,051 crore compared to ₹1,628 crore in Q4 FY24. Net interest income dipped to ₹3,290 crore from ₹3,688 crore YoY. But operating profit rose sharply to ₹3,195 crore, up 47%.
ROA improved to 2.11%, and return metrics stayed robust despite rising deposit costs. The cost of funds increased to 4.97%, and cost of deposits to 4.83%, reflecting tightening liquidity conditions.
Business Milestone: ₹5 Trillion+
- The bank’s total business crossed ₹5 trillion – a major landmark.
- Total Deposits stood at ₹3,10,294 crore, up 12% YoY.
- Net Advances climbed to ₹2,18,399 crore, a 16% increase.
- CASA deposits rose to ₹1,44,479 crore, although the CASA ratio dipped to 46.56% from 50.43% a year ago.
- The bank’s advance book remained retail-heavy with a 30:70 corporate-to-retail mix.
Image: IDBI Bank's Q4 and FY25 financial performance highlights show strong profit growth, improved return ratios, and a resilient operating profile despite margin pressures.
Image: IDBI Bank's balance sheet crosses ₹4.1 lakh crore with significant YoY improvement in NPA ratios and capital adequacy.
Asset Quality at Best-Ever Levels
IDBI's asset quality metrics saw major improvement:
- Gross NPA dropped to 2.98% from 4.53% a year ago.
- Net NPA declined to 0.15%, among the best in the sector.
- Provision Coverage Ratio stood at a remarkable 99.48%, reinforcing balance sheet strength.
The bank maintained a CRAR of 25.05%, well above regulatory norms, with Tier 1 capital at 23.51%.
Recognitions and Digital Push
IDBI Bank’s efforts in digital and risk management were recognized in FY25:
- Won Best IT-Risk Management Award at the IBA Tech Conference 2024.
- Received citations for Digital Sales, Payments & DPI Adoption.
- Achieved PCI DSS 4.0.1 Certification for card data security compliance.
The bank also hosted IDBI FinTech Fusion, an innovation showcase in partnership with AWS and NPCI, spotlighting 20+ fintechs. Additionally, it partnered with Radio Mirchi to honour 25 MSME leaders across Gujarat.
Forward View
With strong capital buffers, improving asset quality, and digital innovation, IDBI Bank is well-positioned to accelerate growth in FY26. Its focus remains on expanding retail lending, enhancing digital capabilities, and maintaining strong governance.
[Information Source: Q4 FY2024-25 results https://www.idbibank.in/pdf/Analyst_Mar_2025.pdf]
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