IDBI Bank vs BSNL: Last 10 years Profit and Loss Comparison

The Government of India has sold its stake in IDBI Bank to Prem Watsa’s Fairfax Financial Holdings for ₹52,878 crore. The bank was performing well and was also reporting profits for the last 5 years, but still the Government sold its stake in the bank. On the other hand, BSNL is running at a loss since the last 10 years but it has not been sold to private companies till now.

IDBI Bank vs BSNL 10-Year Profit & Loss Comparison (in ₹ Crore)

IDBI Bank is in a much better position than BSNL

IDBI Bank is objectively in a far stronger and more stable financial position than BSNL. While both entities underwent massive restructuring after hitting rock bottom in 2019, IDBI Bank has transformed into a highly profitable, self-sustaining commercial powerhouse. BSNL, conversely, remains a heavily subsidized state-run utility that is still fighting to achieve sustained annual profitability.

Why IDBI Bank Holds a Superior Position

• Self-Sustaining Profitability: IDBI Bank generates organic capital. Its net profit climbed to a record ₹9,513 crore in FY26. BSNL still operates at an annual net loss (-₹2,247 crore in FY25).
• Clean Balance Sheet: IDBI Bank successfully flushed out its toxic assets. It brought its Net Non-Performing Assets (NPA) down to near-zero levels (<0.2%). BSNL remains burdened by high operational overheads and legacy network deployment costs.
• Financial Autonomy: IDBI Bank operates independently of state funding. BSNL relies on multi-trillion rupee government bailout packages (over ₹3 lakh crore across multiple tranches) to fund its infrastructure and survive market competition.
• Market Position: IDBI Bank competes efficiently in the private sector alongside major banks. BSNL is still trying to capture lost ground in market share while racing to complete its delayed nationwide 4G and 5G rollouts.

Phase 1 (2016–2020): The Big Crisis

• BSNL: Reliance Jio’s entry in 2016 initiated an aggressive telecom tariff war. BSNL, saddled with massive legacy workforce expenses (consuming over 50–60% of revenue) and lacking a modern 4G data infrastructure, saw losses balloon. FY20 marked its heaviest annual loss at ₹15,500 crore, driven by a massive structural voluntary retirement scheme (VRS) payout.
• IDBI Bank: The bank fell into severe financial distress due to high corporate defaults, pushing its Gross NPA ratio past an alarming 27%. This prompted the Reserve Bank of India to place the bank under the Prompt Corrective Action (PCA) framework in 2017. Cumulative net losses during this dark phase peaked at over ₹41,000 crore, requiring Life Insurance Corporation (LIC) to step in as a majority promoter to inject vital equity capital.

Phase 2 (2021–2026): The Turnaround

• IDBI Bank: Post-LIC capital injection, the bank completely pivoted away from risky corporate credit to stable retail/RAM assets. Bad loan recoveries surged, Net NPAs plummeted below 0.2%, and by March 2021, the RBI lifted all PCA restrictions. Net profit surged from ₹1,359 crore in FY21 to a record ₹9,513 crore in FY26.
• BSNL: Subsidised by the central government’s multi-trillion rupee structural revival packages, BSNL gradually stabilized. Relieving employee overhead via the completed VRS reduced its massive wage bill. While legacy infrastructure and interest costs meant annual results remained negative, the operational deficit shrunk substantially. By late FY25, BSNL achieved a historic operational milestone, recording its first back-to-back quarterly net profits in 18 years (₹262 crore in Q3 and ₹280 crore in Q4).

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