Are IDBI Bank latest results good or bad?

IDBI Bank has reported its financial results for the quarter ending March 2025, highlighting several operational trends. The bank's gross non-performing assets (NPA) have reached a low of 2.98%, continuing a downward trend observed over the last five quarters, while the net NPA stands at 0.15%, indicating a reduction in stressed loans.
The profit after tax (PAT) for the quarter is Rs 2,051.18 crore, which is the highest quarterly figure in the last five quarters, and earnings per share (EPS) have also peaked at Rs 1.91, suggesting improved profitability for shareholders. The capital adequacy ratio (CAR) is reported at 25.05%, reflecting a strengthening capital base relative to risk assets.

However, IDBI Bank faces challenges as the profit before tax (PBT) has significantly decreased to Rs 905.10 crore, marking a notable decline compared to the average of the previous four quarters. Additionally, both operating profit and operating profit margin have reached their lowest points in five quarters, indicating a decline in operational efficiency. Furthermore, non-operating income constitutes a substantial 69.44% of PBT, raising concerns regarding the sustainability of the bank's income sources.

In summary, while IDBI Bank has shown some positive trends in terms of NPAs and profitability, it also faces significant challenges that could impact its operational efficiency and income sustainability. The company saw an adjustment in its evaluation, reflecting these mixed results.