IDBI Bank's CD rating reaffirmed, Tier II bonds withdrawn post-redemption

IDBI Bank's certificate of deposits has been reaffirmed at "CARE A1+" by CARE Ratings Limited (CareEdge Ratings) as of September 2, 2025. This reflects the bank's improved profitability, asset quality parameters, and comfortable capitalization levels. The rating for its Tier II bonds (under Basel III) has been withdrawn due to the instrument's redemption.

The bank reported a profit after taxes (PAT) of ₹7,515 crore in FY25, up from ₹5,634 crore in FY24, leading to a return on total assets (ROTA) of 2.03%. Gross non-performing assets (GNPA) ratio improved to 2.98% as of March 31, 2025, from 4.53% in the previous year, supported by higher recoveries and lower slippages.

IDBI Bank’s capital adequacy ratio (CAR) stood at 25.39% and Tier-I CAR at 23.71% as of June 30, 2025, demonstrating a significant cushion over regulatory requirements. The bank also maintained a healthy liquidity coverage ratio (LCR) of 128.11% and a net stable funding ratio (NSFR) of 119.26% for the quarter ended June 30, 2025.