Complete Analysis of IDBI Bank Shares: Current Insights & Investment Outlook

Company Overview & Market Position

Established in 1964; Mumbai-based public sector bank
Market Capitalisation: ₹98,621 crore (Dec 2025)
Core operations: Retail banking, corporate lending & treasury
Promoter Holding: ~94.7% (Sept 2025)

Recent Share Price & Valuation Snapshot

Current Share Price (Oct 2025): ₹91.7
52-Week Range: ₹65.9 – ₹106.3
P/E Ratio (TTM): ~12.46
Sector Average P/E: ~9.62
P/B Ratio: ~1.81 (Historical Avg ~1.56)
Dividend Yield: ~2.29%
Dividend Payout Ratio: ~28.8%

Financial Performance Highlights (Last 5 Years)

Profit CAGR: ~21.0%
Return on Equity (ROE): ~13.6%
Return on Capital Employed (ROCE): ~6.78%
EPS Growth: ~25.77% YoY
TTM EPS: ~₹7.36
Consistent NII growth and improving quarterly earnings trend

Asset Quality & Risk Profile

Net NPA ratio averaged ~0.73% over last 3 years
Contingent liabilities remain high at ~₹3,35,786 crore
Interest coverage ratio remains low
Average ROE ~11.4% over last 3 years
No promoter share pledging

Valuation & Intrinsic Value Analysis

Intrinsic Value Estimate: ~₹106.6
Trading at ~25% discount to intrinsic value
Price-to-Sales Ratio: ~2.99
Market sentiment cautious but fundamentals improving

Share Price Momentum & Technical Indicators

Recent momentum mildly positive with volatility
Beta: ~1.33 (higher market sensitivity)
VWAP: ~₹92.24
Support Level: ~₹90
Resistance Level: ~₹106
20-Day Average Delivery: ~40.48%
Technical view: Neutral to slightly positive

Dividend & Shareholder Returns

Dividend Yield: ~2.29%
Stable dividend payout over recent years
₹1 lakh invested in 2020 grew to ~₹3.82 lakh by 2025
Dividend income supports total shareholder returns

Investment Risks & Considerations

High contingent liabilities exposure
Potential capitalisation of interest costs
Sector-wide asset quality & margin pressure
Competition from private banks & fintech players
Regulatory and macroeconomic uncertainties

Conclusion & Investment Outlook

IDBI Bank has demonstrated strong profit growth, improving asset quality, and consistent dividend payouts over recent years.

The stock is currently trading at a discount to its intrinsic value, offering a potential value opportunity within the PSU banking space.

Investor View: Suitable for investors with moderate risk appetite seeking value in public sector banks. Monitoring quarterly results, asset quality trends, and sector developments remains essential.

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please consult a registered financial advisor before making investment decisions.