IDBI Bank Q1 Update: Deposits rise 7%, advances grow 9%

IDBI Bank posted a steady operational performance in the first quarter of FY26, with total business rising 8% year-on-year (YoY) to ₹5.08 lakh crore.The growth was driven by a 9% YoY increase in net advances, which stood at ₹2.12 lakh crore, and a 7% YoY rise in total deposits to ₹2.97 lakh crore.
However, CASA (current account–savings account) deposits declined 2% YoY to ₹1.33 lakh crore, reflecting some pressure on low-cost deposit mobilisation.

#JustIn | IDBI Bank Biz Update

Total Business Up 8% YoY At ₹5.08 Lk CrTotal Deposits Up 7% YoY At ₹2.97 Lk Cr

CASA Deposit Down 2% YoY At ₹1.33 Lk Cr

Net Advances Up 9% YoY At ₹2.12 Lk Cr pic.twitter.com/xGFI4GKp5F

— CNBC-TV18 (@CNBCTV18Live) July 4, 2025

Share purchase agreement

In a parallel development, the government is expected to invite financial bids for IDBI Bank

before the end of September, with the share purchase agreement (SPA) process now at an advanced stage.

Together, the government and LIC are divesting a 60.72% stake in IDBI Bank. After the transaction, they will retain a combined 34% stake — with LIC holding 19% and the government retaining 15%.

The SPA, which defines the rights and obligations of both the government and potential bidders, is currently awaiting approval from the Alternative Mechanism, headed by the finance minister.

Sources indicate that the SPA may also include clarifications or provisions for suitable exit options for the government and LIC concerning their residual shareholding in the bank post-disinvestment.

The strategic sale is a key component of the Centre’s FY26 disinvestment roadmap and is expected to draw interest from both domestic and global financial institutions, given IDBI Bank’s improving fundamentals and the broader push for banking sector reforms.

Shares of IDBI Bank Ltd ended at ₹101, down by ₹0.50, or 0.49%, on the BSE.

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