IDBI Bank Ltd.
NSE: IDBIIDBI Bank Ltd.: A 30-second snapshot
IDBI Bank trades at ₹71.4, a PE of 8.15x — the lowest among the six Banking peers compared — and a dividend yield of 2.94%, against a sector backdrop where peers like HDFC Bank trade at 17.1x and Bajaj Finance at 29.9x. The stock is 23.5% below its 200-DMA (₹93.33), down 33.91% over 3 months and 39.69% off its 52-week high, as an extended government privatisation process continues to generate ownership uncertainty. Q4 FY26 results reported net profit of ₹1,943 cr and 17% NII growth, maintaining a profit margin of 43.38% and ROE of 14.15%.
P/E
8.1
Forward P/E
—
ROE
+14.2%
Debt / Equity
—
Profit Margin
+43.4%
Div. Yield
+2.9%
5Y ROE > 15%
0/5
5Y FCF > 0
2/5
Quality
47/100
News
8 headlines · 2 positive · 3 negative
Kotak CEO flags IDBI valuation concerns as privatization drags - The Economic Times
The Economic Times
IDBI Bank shares tumble over 28% in five sessions; analysts weigh in - MSN
MSN
Kotak CEO Flags IDBI Valuation Concerns as Privatization Drags - Bloomberg.com
Bloomberg.com
IDBI Bank Q4 Results OUT! Net profit at Rs 1,943 crore, NII rises 17% - Check CASA, NPA and other details - Zee Business
Zee Business
IDBI Bank rallies 8% as Sitharaman reaffirms stake sale plan - Fortune India
Fortune India
Recent context
- ·A 28% price decline across five consecutive sessions in early May 2026 followed reports of privatisation delays, and Kotak CEO publicly flagged IDBI valuation concerns, citing the prolonged timeline as a drag — reported in Bloomberg and The Economic Times.
- ·Finance Minister Sitharaman subsequently reaffirmed the government stake-sale plan, which preceded an 8% single-session rally, illustrating that near-term price moves remain closely tied to policy news flow rather than operating performance.
- ·Q4 FY26 results (net profit ₹1,943 cr, NII +17%) were reported on 30 April 2026 and received positive coverage from Zee Business; RSI currently reads 37.04, within the neutral band, with the nearest technical support level at ₹61.01.
Strengths
- +PE of 8.15x is the lowest among six Banking-sector peers reviewed (vs Axis Bank 14.7x, HDFC Bank 17.1x, Bajaj Finance 29.9x), placing IDBI at rank 1 of 6 on price-to-earnings.
- +Quality score of 58/100 ranks 1st of 6 in the peer set, ahead of Axis Bank (53) and HDFC Bank (47).
- +Dividend yield of 2.94% is present at a time when several peer financials carry minimal yields; profit margin of 43.38% reflects that operating earnings are reaching the bottom line.
- +Q4 FY26 NII growth of 17% and net profit of ₹1,943 cr represent the most recent quarterly data point, showing continued income generation despite the ownership-uncertainty overhang.
Weaknesses
- −Fundamental consistency score of 39/100 with zero years of ROE above 15% in tracked history and FCF positive in only 2 of available years reflects an uneven multi-year earnings quality record.
- −Debt trend is classified as rising with no 5-year revenue or earnings growth data available, creating limited visibility into the structural earnings trajectory.
- −Price has declined 33.91% over 3 months and 39.69% from the 52-week high; the stock has traded below both the 50-DMA (₹79.23) and 200-DMA (₹93.33), with the nearest resistance at ₹76.21 and then ₹79.90.
- −Active privatisation uncertainty — with the government stake sale process unresolved — has been flagged as a specific valuation concern by a named financial institution CEO, contributing to sustained selling pressure across five consecutive sessions in May 2026.
Open questions
- ?How does the government stake-sale timeline and the identity of the eventual strategic buyer affect the bank's capital allocation priorities and governance structure over the next 3-5 years?
- ?Does the valuation gap between IDBI's PE of 8.15x and Banking peers at 14-30x reflect a durable structural discount (ownership uncertainty, balance-sheet quality) or a temporary event-driven compression?
- ?With ROE at 14.15% and zero years above 15% in tracked history, what operating levers — loan book mix, cost of funds, NIM expansion — would be required to sustain or improve return on equity?
- ?Given that quarterly earnings (NII +17%, net profit ₹1,943 cr) diverge from recent price action (-33.91% over 3 months), what additional information would help distinguish between a temporary market dislocation and a forward-looking re-pricing of risk?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| IDBI | IDBI Bank Ltd.You're viewing | 8.1 | +14.2% | 58 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.9 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.1 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.3 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹71.40
SMA 50
₹79.23
SMA 200
₹93.33
RSI (14)
37.0 (neutral)
From 52w high
-39.7%
1Y return
-10.8%
3M return
-33.9%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highPrivatisation overhang triggered a 28% price decline across five consecutive sessions in early May 2026, with Kotak CEO publicly flagging valuation concerns — an active governance and ownership-uncertainty event with direct and documented price impact.
- highAt ₹71.4, the stock is 9.9% below its 50-DMA (₹79.23) and 23.5% below its 200-DMA (₹93.33); 52-week drawdown is -39.69% and the 3-month price change is -33.91%, indicating sustained and accelerating price deterioration on a 270-bar data series.
- mediumFundamental consistency score of 39/100; ROE of 14.15% has zero years above 15% in tracked history; FCF positive in only 2 of available years; debt trend classified as rising — pointing to uneven earnings quality for a banking name.
- lowNo analyst rating or coverage count available in the data, limiting visibility into institutional sell-side opinion at a time when the privatisation narrative is actively shifting.
Cross-section contradictions
- Q4 FY26 net profit of ₹1,943 cr with NII growth of 17% coexists with a -33.91% 3-month price return and predominantly negative news sentiment — the quarterly earnings print and market price action are diverging sharply, with the privatisation overhang appearing to dominate price discovery.
- IDBI ranks 1st of 6 Banking peers on PE (lowest at 8.15x) and 1st on quality score within the sector comparison set, yet has experienced the sharpest near-term price decline in the group — the valuation discount has not translated into price support.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 16 May 2026 · rotates through NIFTY 500 every ~5 days