IDBI Bank Ltd’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹1,04,233.79 crore, a PE ratio of 16.6, a debt-to-equity ratio of 5.77, and a return on equity (ROE) of 11.8%. These figures indicate the bank’s financial health and its ability to manage debt while delivering returns.
Content:
- IDBI Bank Ltd Overview
- IDBI Bank Financial Results
- IDBI Bank Ltd Financial Analysis
- IDBI Bank Limited Company Metrics
- IDBI Bank Ltd Stock Performance
- IDBI Bank Ltd Peer Comparison
- IDBI Bank Limited Shareholding Pattern
- IDBI Bank History
- How To Invest In IDBI Bank Shares?
- IDBI Bank Limited Fundamental Analysis – FAQs
IDBI Bank Ltd Overview
IDBI Bank Ltd is a major Indian bank providing a range of banking and financial services to retail and corporate clients. The bank is recognized for its extensive branch network and strategic role in the Indian banking sector.
The company has a market capitalization of ₹1,04,233.79 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading near its 52-week high of ₹108, significantly above its 52-week low of ₹59.2, indicating strong investor confidence. The all-time high of the stock is ₹202, while the all-time low is ₹59.2.
IDBI Bank Financial Results
The company demonstrated strong financial growth from FY 22 to FY 24, with total income increasing from ₹23,238 crores to ₹30,370 crores and profit before tax rising from ₹2,518 crores to ₹5,763 crore. The company maintained stable profitability and improved EPS over the years.
- Revenue Trend: Total income increased from ₹23,238 crore in FY 22 to ₹25,167 crore in FY 23, and further to ₹30,370 crore in FY 24, indicating robust revenue growth during this period.
- Equity and Liabilities: As of March 2024, IDBI Bank’s equity capital remained consistent at ₹10,752 crore. Reserves increased from ₹31,819 crore in March 2022 to ₹40,321 crore in March 2024. Borrowings grew significantly to ₹2,94,448 crore, while other liabilities also rose to ₹18,750 crore.
- Profitability: The Pre-Provision Operating Profit (PPOP) margin slightly decreased from 34.98% in FY 23 to 32.18% in FY 24, after being at 32.75% in FY 22, indicating relatively stable operational efficiency with minor fluctuations.
- Earnings per Share (EPS): Earnings per Share (EPS) increased from ₹2.36 in FY 22 to ₹5.38 in FY 24, showing consistent growth in profit per share, reflecting improved profitability for shareholders.
- Return on Net Worth (RoNW): Return on Net Worth (RoNW) improved from 7.34% in FY 22 to 13.43% in FY 24, indicating stronger returns on shareholders’ equity and enhanced profitability over time.
- Financial Position: The company’s financial position strengthened with profit before tax increasing from ₹2,518 crore in FY 22 to ₹5,763 crore in FY 24, showcasing a significant improvement in financial health and management.
IDBI Bank Ltd Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Total Income | 30,370 | 25,167 | 23,238 |
| Total Expenses | 20,597 | 16,363 | 15,628 |
| Pre-Provisioning Operating Profit | 9,774 | 8,804 | 7,610 |
| PPOP Margin (%) | 32.18 | 34.98 | 32.75 |
| Provisions and Contingencies | 4,010 | 5,117 | 5,093 |
| Profit Before Tax | 5,763 | 3,687 | 2,518 |
| Tax % | — | — | — |
| Net Profit | 5,814 | 3,728 | 2,557 |
| EPS | 5.38 | 3.45 | 2.36 |
| Net Interest Income | 14,219 | 11,461 | 9,194 |
All values in ₹ Crores.
IDBI Bank Limited Company Metrics
IDBI Bank Ltd, with a market cap of ₹1,04,233.79 crore, offers an EPS of ₹5.85 and a dividend yield of 1.55%. Despite significant debt of ₹2,94,448 crore, its improving profitability and book value of ₹47.5 per share highlight its financial stability.
- Market Capitalization: IDBI Bank Ltd has a market capitalization of ₹1,04,233.79 crore, representing the total market value of its outstanding shares, highlighting its significant presence in the Indian banking sector.
- Profit Before Tax (PBT): IDBI Bank’s Profit Before Tax (PBT) showed steady growth, increasing from ₹2,518 crore in FY 22 to ₹3,687 crore in FY 23, and further to ₹5,763 crore in FY 24, reflecting improving profitability over the years.
- Earnings per Share (EPS): IDBI Bank has an EPS of ₹5.85, indicating the amount of profit attributed to each outstanding share of common stock, which reflects the bank’s profitability for its shareholders.
- Face Value: The face value of IDBI Bank’s shares is ₹10.00, which is the nominal value of each share as stated on the share certificate. This value is used in calculating dividends and determining the nominal value of shares.
- Asset Turnover: IDBI Bank has an asset turnover ratio of 0.08, reflecting the bank’s efficiency in utilizing its assets to generate revenue, which is relatively low, indicating room for improvement.
- Total Debt: IDBI Bank carries a significant debt of ₹2,94,448 crore, reflecting its financial leverage. Effective management of this debt is crucial for the bank’s long-term financial stability and growth.
- Dividend Yield: IDBI Bank offers a dividend yield of 1.55%, indicating the annual dividend income relative to its current share price, making it an attractive option for income-focused investors.
- Book Value: IDBI Bank has a book value of ₹47.5 per share, representing the net asset value of the bank divided by the number of outstanding shares. This value provides insight into the bank’s financial health and intrinsic worth.
IDBI Bank Ltd Stock Performance
IDBI Bank delivered impressive returns on investment with 57.0% over 1 year, 37.2% over 3 years, and 31.4% over 5 years, showcasing strong long-term performance and consistent profitability for investors.
| Period | Return on Investment (%) |
| 1 Year | 57.0 |
| 3 Years | 37.2 |
| 5 Years | 31.4 |
Example: If an investor had invested ₹1,000 in IDBI Bank’s stock:
1 year ago, their investment would be worth ₹1,570.
3 years ago, their investment would have grown to ₹1,372.
5 years ago, their investment would have increased to approximately ₹1,314.
This highlights IDBI Bank’s strong long-term performance and consistent profitability for investors.
IDBI Bank Ltd Peer Comparison
IDBI Bank, with a market cap of ₹1,04,298.29 crore, a PE ratio of 16.56, and an ROE of 11.77%, delivered a strong 1-year return of 56.97%. Despite lower ROE compared to peers like HDFC and ICICI Banks, IDBI offers a solid dividend yield of 1.55%.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| 1 | HDFC Bank | 1623.95 | 1237042.83 | 18.14 | 17.14 | 89.75 | 3.48 | 7.67 | 1.2 |
| 2 | ICICI Bank | 1172.5 | 825588.48 | 18.19 | 18.8 | 64.56 | 23.89 | 7.6 | 0.86 |
| 3 | Axis Bank | 1172 | 362335.37 | 13.58 | 18.4 | 86.63 | 22.04 | 7.06 | 0.09 |
| 4 | Kotak Mah. Bank | 1802.1 | 358248.71 | 19.27 | 15.06 | 108.22 | 2.41 | 7.86 | 0.11 |
| 5 | IndusInd Bank | 1381.35 | 107574.71 | 12.01 | 15.25 | 115.41 | -1.42 | 7.93 | 1.19 |
| 6 | IDBI Bank | 97 | 104298.29 | 16.56 | 11.77 | 5.85 | 56.97 | 6.23 | 1.55 |
| 7 | Yes Bank | 24.57 | 76991.73 | 52.94 | 3.18 | 0.49 | 44.6 | 5.83 | 0 |
IDBI Bank Limited Shareholding Pattern
IDBI Bank’s shareholding pattern in FY 2024 shows promoters holding 94.71%, a significant majority, while FIIs held 0.45%, DIIs 0.16%, and retail & others 4.67%, reflecting a highly concentrated ownership structure with minimal changes in holdings from other investors.
| FY 2024 | FY 2023 | FY 2022 | |
| Promoters | 94.71 | 94.71 | 94.71 |
| FII | 0.45 | 0.22 | 0.03 |
| DII | 0.16 | 0.18 | 0.37 |
| Retail & others | 4.67 | 4.89 | 4.89 |
All values in %
IDBI Bank History
IDBI Bank was established in 1964 by an Act of Parliament as a development financial institution to promote industrial growth in India. It played a crucial role in providing financial assistance for various industrial projects across the country.
In 2004, IDBI was transformed into a full-fledged commercial bank, expanding its services to include retail and corporate banking. This transition marked a significant shift in its operations, allowing it to compete with other commercial banks in India.
Over the years, IDBI Bank expanded its branch network and diversified its offerings, including various loan products, deposits, and investment services. Despite challenges, it remained a key player in the Indian banking sector.
In recent years, the government and LIC of India became significant stakeholders in IDBI Bank, reflecting the institution’s importance. The bank continues to focus on strengthening its financial position and expanding its reach within the Indian banking landscape.
How To Invest In IDBI Bank Shares?
Investing in IDBI Bank shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for IDBI Bank shares and place your buy order.
IDBI Bank Limited Fundamental Analysis – FAQs
IDBI Bank Ltd has a market capitalization of ₹1,04,233.79 crore, an EPS of ₹5.85, a PE ratio of 16.56, and significant debt of ₹2,94,448 crore. The bank’s financials indicate improving profitability but also high leverage.
IDBI Bank Ltd has a market capitalization of ₹1,04,233.79 crore, representing the total market value of its outstanding shares, highlighting its significant role in the Indian banking sector.
IDBI Bank Limited is a leading Indian commercial bank that originated as a development financial institution in 1964. It offers a wide range of banking and financial services to both retail and corporate clients.
IDBI Bank Ltd is primarily owned by the Government of India and Life Insurance Corporation (LIC) of India, which hold significant stakes, making it a government-backed financial institution.
The main shareholders of IDBI Bank Ltd in FY 2024 include promoters with 94.71%, FIIs holding 0.45%, DIIs at 0.16%, and retail & others holding 4.67%, reflecting concentrated ownership.
IDBI Bank operates in the banking and financial services industry, providing a range of services including commercial banking, retail banking, corporate banking, and financial advisory services.
Investors can buy IDBI Bank shares through stock exchanges by opening a trading account with a broker or via online trading platforms, participating in market transactions during trading hours.
Determining if IDBI Bank is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. With a PE ratio of 16.60, IDBI Bank might be fairly valued, reflecting market expectations and moderate growth potential.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
