One-Time Windfall vs. Real Grind: The Very Different Profit Stories of Two Big Banks:

At first glance, the latest quarterly results from IDBI Bank and Punjab National Bank (PNB) both look like fantastic news. IDBI's profit has almost doubled, a headline-grabbing achievement.PNB, too, has posted a very healthy 14% rise in its profit.

But when you dig just a little deeper, you find two very different stories. One is about a massive one-time gain from a clever financial move, while the other is a story of steady, fundamental improvement.

IDBI Bank: A Windfall from the NSDL IPO

IDBI Bank announced a staggering 98% jump in its net profit for the September quarter, reaching ₹3,627 crore. The question on everyone's mind is, how did they manage such a huge leap? The secret wasn't in their core banking operations but in a smart investment decision.

A huge chunk of this profit came from the bank selling off part of its stake in the National Securities Depository Ltd (NSDL) during its recent Initial Public Offering (IPO). This single transaction resulted in a net gain of nearly ₹1,700 crore for the bank.

While this is a fantastic result for the bank's bottom line, it's important to note that it's a one-off event. In fact, the bank's Net Interest Income (NII) – the money it makes from its primary business of lending – actually saw a 15% decline compared to the same period last year

On the bright side, the bank did continue to clean up its loan book, with its Gross Non-Performing Assets (NPAs), or bad loans, improving to 2.65%.[1][2]

PNB: The Rewards of Getting the Basics Right

Punjab National Bank's story is less about a single jackpot and more about consistent hard work. The bank reported a solid 14% increase in its net profit, taking it to ₹4,904 crore for the quarter.

The driving force behind PNB's success was a significant improvement in its asset quality. The bank has been working hard to reduce its bad loans, and it's paying off. Its Gross NPA ratio dropped impressively to 3.45% from 4.48% a year agoIts Net NPA ratio also improvedThis shows that the fundamental health of the bank's lending business is getting stronger.

While PNB also saw a slight dip in its Net Interest Income, the overall picture is one of stability and strengthening core operations.The bank's total global business also saw healthy growth of over 10%.

So while both banks delivered impressive profit numbers, their journeys to get there were quite different. IDBI's result highlights its sharp investment strategy, while PNB's performance underscores the value of improving foundational banking health