IDBI Bank Share Price: All You Need to Know

High bad loans, weak risk management practices, and limited capital base caused IDBI Bank share price to underperform for a long time. However, prompt regulatory actions, timely capital infusion from the government, and LIC’s acquisition of a majority stake in the bank have brought stability. The bank is still in the process of regaining its financial footing and restoring investor confidence. 

IDBI Bank share price has more than tripled in the last five years, from ₹21 in April 2020 to currently trading near the ₹75 level. 

In this article, we will do a fundamental analysis of IDBI Bank share price to have a better understanding of the bank’s future growth potential.

IDBI Bank Business Overview

IDBI Bank was founded as a Development Financial Institution (DFI) in 1964 to provide credit and other financial assistance for industrial development. Back then, it was a subsidiary of the Reserve Bank of India. 

In 1974, the ownership was transferred to the Indian government. Its role was further expanded to include coordinating industry-related activities. In 2004, alongside its role as DFI, it started offering banking services to retail customers. 

IDBI Bank currently offers a wide range of services to individuals, corporations, small businesses, and people associated with agriculture. It has a pan-India presence with a network of over 2000 branches and 3,300 ATMs. 

As of 31st December 2024, total deposits with the bank stood at ₹2.82 lakh crore, and gross advances were at ₹2.14 lakh crores.

IDBI Bank Management Team

Mr Rakesh Sharma is the Managing Director and CEO of IDBI Bank. He is a seasoned banker with over 40 years of experience. Mr Sharma started his career with SBI and held various managerial roles. He then moved to Lakshmi Vilas Bank as MD & CEO and then to Canara Bank. 

Mr Jayakumar S. Pillai is the Deputy Managing Director of IDBI Bank and has over 32 years of experience in banking. Before joining IDBI Bank, he was with Canara Bank and has expertise in different facets of banking, like MSME lending and recovery, retail, and agriculture. 

Smt. Smita Harish Kuber is the Chief Financial Officer of IDBI Bank and was appointed in April 2023. She is a qualified chartered accountant with over 25 years of banking experience. 

Mr Anirudha Behera is the Executive Director and Chief Risk Officer of the bank. He has over 20 years with the bank and has held various roles including credit risk, budget & planning. 

IDBI Bank Shareholding Pattern

IDBI Bank is jointly owned by the Government of India and LIC of India. 

LIC is a strategic investor in the bank and acquired shares in 2019. The bank’s free float is less than 5%.

IDBI Bank Financials

Net Interest Income

The bank’s net interest income registered a growth of 24% year-on-year to ₹14,186 crores in FY24, compared to ₹11,431 crores in FY23

In the April to December period (9MFY25), the bank’s NII was ₹11,337 crores, which is around 8% higher compared to ₹10,499 crores recorded in the same period previous year. The bank non-interest income rose 6% during the same period to ₹2,867 crores.

Net Profit

The bank’s net profit has surged 55% in FY24 to ₹5,634 crores, from ₹3,645 crores in FY23.

For the 9MFY25, the bank’s net profit increased by 36% to ₹5,464 crores from ₹4,006 crores recorded in 9MFY24.

Net Interest Margin

Net Interest Margin or NIM is the operating margin for banks and financial institutions. Its the spread between, how much they are earning from loans and how much they are spending on deposits. 

IDBI Bank has recording a expanding in NIM on a consistent basis. From FY22, the bank’s NIM has increased from 3.73% to 5.17% at the end of December 2024. 

Period	NIM (%)
FY22	3.73
FY23	4.52
FY24	4.93
9MFY25	5.17

Net Non Performing Asset (NPA)

The bank asset quality has improved significantly in the last few years. The bank’s Net NPA decreased from 1.36% in FY22 to 0.18% at the end of December 2024. 

Period	NPA (%)
FY22	1.36
FY23	0.92
FY24	0.34
9MFY25	0.18

Capital Adequacy Ratio (CAR)

Capital Adequacy Ratio- which indicates the bank’s financial strength and stability. The bank has strengthend its ability to handle business shocks in the last few years.  The overall CAR at the end of December is 21.98%, which is well above the minimum regulatory requirement of 12% for public sector banks. 

A higher CAR indicates that the bank is well insulated to absorb any shock like a spike in non performing assets.  

Period	CAR (%)
FY22	19.06
FY23	20.44
FY24	22.26
9MFY25	21.98

CASA Ratio

The Current Account Saving Account (CASA) Ratio, which indicates percentage of customer’s total deposit kept in low yielding current and savings accounts, is 46.35% at the end of December 2024. This is higher than many public sector banks like SBI and Union Bank. 

Cost of Deposits and Cost of Funds

The bank’s Cost of Funds for the 9MFY25 was 4.82%. And, the cost of deposit also increased to 4.63% for the same period. Higher cost of funds and deposit, put a pressure on the profitability metrics of the bank.

IDBI Bank Share Price Analysis

IDBI Bank share price is one of the best performing public sector bank stocks in the recent past despite the heavy sell-off in the market. 

The 52 week high for IDBI Bank share price is ₹108, which it made in July 2024. 

IDBI Bank has resumed paying dividends after seven years from FY23. In the last two financial years, the bank paid ₹1 and ₹1.5 per share as dividends to shareholders. 

At current market price of ₹80, the dividend yield of IDBI Bank share price is 1.86%.

Key Valuation Metrics

Earning Per Share (EPS)

The following is the EPS of IDBI Bank Share Price of last 5 year:

FY20	– ₹12.36
FY21	₹1.41
FY22	₹2.36
FY23	₹3.45
FY24	₹5.38
9MFY25	₹5.08

The bank has consistently improved its Earning Per Share over the last five years from negative ₹12.36 per share in FY20 to ₹5.38 per share in FY25. For the 9MFY25, the EPS is ₹5.08 and in the same period last year, it was ₹3.73. Improved earnings helped in the growth of IDBI Bank share price. 

Return on Assets (ROA)

The bank’s Return on Assets (ROA) is also improving consistently. In FY24, it was 1.65% and further improved to 1.99% for the 9MFY25 period. 

Period	ROA (%)
FY22	0.84
FY23	1.20
FY24	1.65
9MFY25	1.99

Price-to-Book VS Median Price-to-Book

The price-to-book value of IDBI Bank share price is 1.5  and the 5 year Median Price-to-Book is 1.3, meaning it is trading slightly higher than its book value. The stock can be considered fairly valued for this metric. However, one should compare it with peers to measure the valuation of any stock. 

IDBI Bank Share Price Future Growth Potential

IDBI Bank has significantly improved its fundamentals in the last few years, aided by government support and prompt regulatory action. 

Some of the key positives of IDBI Bank share price are as follows:

• The cost of deposits has increased marginally from 4.30% in March 2024 to 4.62% at the end of December 2024. While, the cost of funds are steady at 4.83%. Other banks are experiencing higher cost of funds, which is impacting profitability. 

• Lower bad loans, improved asset quality combined with increasing net interest margin.

• Improving profitability and returns metrics.

However, declining CASA ratio is a cause of worry as it could hurt profitability. Declining CASA is an industry wide trend. The bank is aiming to keep it above 45%, higher than leaders in the industry. 

Other key areas where the bank’s management is focused upon are:

• Keeping the NIM above 3.5%
• Maintaing cost-to-income ratio below 49%
• Maintaining Net NPA ratio below 0.5%
• Maintaining Return on Assets above 1.5% and CAR above 18%
• Maximising fee income and acheive business growth of 12 to 13%

Further, the government is also focused on privatising IDBI Bank, which can further impact IDBI Bank share price growth. 

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