IDBI Bank Limited

Financial Services — Banks - Regional · NSE

₹84.07+₹0.62 (+0.74%)

DalalBaazaar Score

77 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of IDBI Bank Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

IDBI Bank Limited provides banking and financial solutions to retail and corporate customers in India. It operates through four segments: Corporate/Wholesale Banking, Retail Banking, Treasury Operations, and Other banking operations.

IndustryBanks - Regional

SectorFinancial Services

Employees19,108

Annual revenue₹18,845 Cr

How does it make money?

Turns over ₹18,845 Cr a year. Of every ₹100 of sales, about ₹49 reaches shareholders as profit. Each of its 19,108 employees supports ₹98.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹98.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC BANK LTD, ICICI BANK LTD., KOTAK MAHINDRA BANK LTD, AXIS BANK LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +26% while net margin moved +98% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+26%

Margin effect+98%

DalalBaazaar Score

77/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 7.9% — barely ahead of inflation
✓ Profit CAGR of 35.5% is above 15%
✗ Latest-year revenue growth of -7.4% is below the longer-term trend — momentum is fading
✗ Profit fell 31.3% in the latest year

Quality vs. Valuation

Company Quality

77/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

87/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

9.7x

3Y Median

15.2x

40 monthly readings · mean 16.4x · range 8.7x–30.1x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 36% below its 3y median of 15.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 43% below the peer median of 17.0x.

vs. its own history

Cheap

15.2x median over 40 months · -36%

vs. sector peers

Cheap

17.0x median of 4 peers · -43%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

0.27

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 8.0% to 13.4%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 36% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 43% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 7.9% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Return on equity stays above 10%✓ 11.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
2Revenue growth stays above 6% a year✓ 7.9% CAGR
Latest reported year was -7.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Valuation vs its own median of 15.2x✓ 9.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹90,395 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

9.7x

Cheap

Cheap against the generic band

P/B Ratio

1.25x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹8.67

Profitable

Profitable on a per-share basis

ROE

11.8%

Moderate

Moderate capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

-7.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-31.3%

Falling

Profits are shrinking

Dividend Yield

2.50%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹16,434 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

17.2x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

ROA

1.9%

Weak

Assets generate little profit

Operating Margin

51.6%

Good

Healthy core-business profitability

Net Margin

44.3%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.91

Market-like

Moves roughly in line with the market

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

84.2 / 85.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14,998 Cr	₹17,219 Cr	₹17,994 Cr	₹18,845 Cr	+7.9%
PAT (Net Profit)	₹3,706 Cr	₹5,788 Cr	₹7,631 Cr	₹9,210 Cr	+35.5%
EPS	₹3.45	₹5.38	₹7.1	₹8.57	+35.4%
ROE	8.0%	11.3%	12.4%	13.4%	—
Total Debt	₹10,238 Cr	₹14,683 Cr	₹19,932 Cr	₹23,104 Cr	+31.2%
Free Cash Flow	-₹2,996 Cr	-₹1,565 Cr	₹25,446 Cr	₹16,434 Cr	—

🟢 Revenue has grown at 7.9% a year over 3 years.

🟢 PAT (Net Profit) has grown at 35.5% a year over 3 years.

🟢 EPS has grown at 35.4% a year over 3 years.

🟢 ROE has risen from 8.0% to 13.4% over 3 years (+5.4 pts).

🔴 Total Debt has grown at 31.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2,996 Cr to ₹16,434 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4.67 L Cr

Total Liabilities

₹3.99 L Cr

Cash & Equivalents

₹59,743 Cr

Operating Cash Flow

₹16,762 Cr

Capex

-₹327 Cr

Shareholding (proxy)

Institutional Holding

49.7%

Insider Holding

45.6%

Corporate Actions

Dividend Rate

₹2.1

Ex-Dividend Date

15 Jul 2025

Peer Comparison

Company	P/E	ROE
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
KOTAK MAHINDRA BANK LTD	21.9x	11.2%
AXIS BANK LIMITED	14.5x	13.4%

Recent News

2 mixed1 negative3 general

India's IDBI Bank slides on profit booking after Fairfax buys controlling stake

Reuters, 15 Oct

What’s next for IDBI Bank stock after Q2 net profit slumps 39%, massive Fairfax deal? Key factors investors should watch

Livemint, 18 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

IDBI Bank shareholders approve director appointments at 22nd AGM

scanx.trade, 18 Oct

IDBI Bank shares tumble 7.5% after Fairfax ₹53k-crore deal

The Hindu, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

IDBI Bank share price zooms 13% to five-week high on heavy volumes

Business Standard, 14 Oct

IDBI Bank shares crash 7%: Why is the stock falling?

India Today, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Revenue growth is negative (-7.4%) on the latest reported period — check if this is one-off or a trend.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingGrowth · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 3 tripwires holding · see Key things to watch ↑