{"id":55698,"date":"2025-04-26T16:08:55","date_gmt":"2025-04-26T10:38:55","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=55698"},"modified":"2025-04-26T16:33:51","modified_gmt":"2025-04-26T11:03:51","slug":"idbi-bank-share-price-all-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/idbi-bank-share-price-all-you-need-to-know\/","title":{"rendered":"IDBI Bank Share Price: All You Need to Know"},"content":{"rendered":"
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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\u2019s 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. <\/p>\n\n\n\n

IDBI Bank share price has more than tripled in the last five years, from \u20b921 in April 2020 to currently trading near the \u20b975 level. <\/p>\n\n\n\n

In this article, we will do a fundamental analysis<\/a> of IDBI Bank share price to have a better understanding of the bank\u2019s future growth potential.<\/p>\n\n\n\n

IDBI Bank Business Overview<\/h2>\n\n\n\n

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. <\/p>\n\n\n\n

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. <\/p>\n\n\n\n

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. <\/p>\n\n\n\n

As of 31st December 2024, total deposits with the bank stood at \u20b92.82 lakh crore, and gross advances were at \u20b92.14 lakh crores.<\/p>\n\n\n\n

IDBI Bank Management Team<\/h2>\n\n\n\n

Mr Rakesh Sharma<\/strong> 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. <\/p>\n\n\n\n

Mr Jayakumar S. Pillai<\/strong> 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. <\/p>\n\n\n\n

Smt. Smita Harish Kuber<\/strong> 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. <\/p>\n\n\n\n

Mr Anirudha Behera <\/strong>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<\/a> & planning. <\/p>\n\n\n\n

IDBI Bank Shareholding Pattern<\/h2>\n\n\n\n
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IDBI Bank is jointly owned by the Government of India and LIC of India. <\/p>\n\n\n\n

LIC is a strategic investor in the bank and acquired shares in 2019. The bank\u2019s free float is less than 5%.<\/p>\n\n\n\n

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IDBI Bank Financials<\/h2>\n\n\n\n

Net Interest Income<\/h3>\n\n\n\n

The bank\u2019s net interest income<\/a> registered a growth of 24% year-on-year to \u20b914,186 crores in FY24, compared to \u20b911,431 crores in FY23<\/p>\n\n\n\n

In the April to December period (9MFY25), the bank\u2019s NII was \u20b911,337 crores, which is around 8% higher compared to \u20b910,499 crores recorded in the same period previous year. The bank non-interest income rose 6% during the same period to \u20b92,867 crores.<\/p>\n\n\n\n

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Net Profit<\/h3>\n\n\n\n

The bank\u2019s net profit has surged 55% in FY24 to \u20b95,634 crores, from \u20b93,645 crores in FY23.<\/p>\n\n\n\n

For the 9MFY25, the bank\u2019s net profit increased by 36% to \u20b95,464 crores from \u20b94,006 crores recorded in 9MFY24.<\/p>\n\n\n\n

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Net Interest Margin<\/h3>\n\n\n\n

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. <\/p>\n\n\n\n

IDBI Bank has recording a expanding in NIM on a consistent basis. From FY22, the bank\u2019s NIM has increased from 3.73% to 5.17% at the end of December 2024. <\/p>\n\n\n\n

Period<\/strong><\/td>NIM (%)<\/strong><\/td><\/tr>
FY22<\/td>3.73<\/td><\/tr>
FY23<\/td>4.52<\/td><\/tr>
FY24<\/td>4.93<\/td><\/tr>
9MFY25<\/td>5.17<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Net Non Performing Asset (NPA)<\/h3>\n\n\n\n

The bank asset quality has improved significantly in the last few years. The bank\u2019s Net NPA decreased from 1.36% in FY22 to 0.18% at the end of December 2024. <\/p>\n\n\n\n

Period<\/strong><\/td>NPA (%)<\/strong><\/td><\/tr>
FY22<\/td>1.36<\/td><\/tr>
FY23<\/td>0.92<\/td><\/tr>
FY24<\/td>0.34<\/td><\/tr>
9MFY25<\/td>0.18<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Capital Adequacy Ratio (CAR)<\/h3>\n\n\n\n

Capital Adequacy Ratio- which indicates the bank\u2019s 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. <\/p>\n\n\n\n

A higher CAR indicates that the bank is well insulated to absorb any shock like a spike in non performing assets.  <\/p>\n\n\n\n

Period<\/strong><\/td>CAR (%)<\/strong><\/td><\/tr>
FY22<\/td>19.06<\/td><\/tr>
FY23<\/td>20.44<\/td><\/tr>
FY24<\/td>22.26<\/td><\/tr>
9MFY25<\/td>21.98<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

CASA Ratio<\/h3>\n\n\n\n

The Current Account<\/a> Saving Account (CASA) Ratio, which indicates percentage of customer\u2019s 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<\/a>. <\/p>\n\n\n\n

Cost of Deposits and Cost of Funds<\/h3>\n\n\n\n

The bank\u2019s 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.<\/p>\n\n\n\n

IDBI Bank Share Price Analysis<\/h2>\n\n\n\n

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. <\/p>\n\n\n\n

The 52 week high for IDBI Bank share price is \u20b9108, which it made in July 2024. <\/p>\n\n\n\n

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IDBI Bank has resumed paying dividends after seven years from FY23. In the last two financial years, the bank paid \u20b91 and \u20b91.5 per share as dividends to shareholders. <\/p>\n\n\n\n

At current market price of \u20b980, the dividend yield of IDBI Bank share price is 1.86%.<\/p>\n\n\n\n

Key Valuation Metrics<\/h2>\n\n\n\n

Earning Per Share (EPS)<\/h3>\n\n\n\n

The following is the EPS<\/a> of IDBI Bank Share Price of last 5 year:<\/p>\n\n\n\n

FY20<\/td>– \u20b912.36<\/td><\/tr>
FY21<\/td>\u20b91.41<\/td><\/tr>
FY22<\/td>\u20b92.36<\/td><\/tr>
FY23<\/td>\u20b93.45<\/td><\/tr>
FY24<\/td>\u20b95.38<\/td><\/tr>
9MFY25<\/td>\u20b95.08<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The bank has consistently improved its Earning Per Share over the last five years from negative \u20b912.36 per share in FY20 to \u20b95.38 per share in FY25. For the 9MFY25, the EPS is \u20b95.08 and in the same period last year, it was \u20b93.73. Improved earnings helped in the growth of IDBI Bank share price. <\/p>\n\n\n\n

Return on Assets (ROA)<\/h3>\n\n\n\n

The bank\u2019s Return on Assets (ROA) is also improving consistently. In FY24, it was 1.65% and further improved to 1.99% for the 9MFY25 period. <\/p>\n\n\n\n

Period<\/strong><\/td>ROA (%)<\/strong><\/td><\/tr>
FY22<\/td>0.84<\/td><\/tr>
FY23<\/td>1.20<\/td><\/tr>
FY24<\/td>1.65<\/td><\/tr>
9MFY25<\/td>1.99<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Price-to-Book VS Median Price-to-Book<\/h3>\n\n\n\n
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Source: Screener<\/em><\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

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. <\/p>\n\n\n\n

IDBI Bank Share Price Future Growth Potential<\/h2>\n\n\n\n

IDBI Bank has significantly improved its fundamentals in the last few years, aided by government support and prompt regulatory action. <\/p>\n\n\n\n

Some of the key positives of IDBI Bank share price are as follows:<\/p>\n\n\n\n