IDBI Bank Ltd (IDBI)

Financial Services · Banks · NSE · Updated 3 September 2026
By StockFin Research Team AI-Assisted Analysis Source: BSE/NSE Filings
₹91.38 ↑ 0.88% (1Y)

🎯 Key Takeaways

  • IDBI Bank is in a consolidation and stabilization phase following its turnaround, characterized by steady profitability, improving asset quality, and strong capital ratios. Management is focused on operational efficiency and capital adequacy, with no aggressive expansion or major strategic shifts announced recently.
  • Revenue declined 3.3% QoQ to ₹7,549 in Q1FY27.
  • ⚠️ Near-term NIM pressure is a key concern, as highlighted in the ICRA rating reaffirmation, due to competitive deposit rate pressures and slower pass-th
Market Cap
₹98,255
P/E Ratio
10.5
P/B Ratio
1.43
ROE
13.6%
ROCE
28.6%
Debt/Equity
0.41
Promoter
94.7%

📖 The Story

IDBI Bank is in a consolidation and stabilization phase following its turnaround, characterized by steady profitability, improving asset quality, and strong capital ratios. Management is focused on operational efficiency and capital adequacy, with no aggressive expansion or major strategic shifts announced recently. The bank has demonstrated consistent performance in deposits and advances, supported by a stable promoter base and improving governance.

📰 What's Happening

In Q1 FY27, IDBI Bank reported a 5% YoY increase in net profit to ₹2,115 crores, driven by 10% YoY growth in net interest income and 15% YoY growth in total business, as per the July 18, 2026 financial results filing. The bank also saw gross NPA decline to 2.30% and CRAR improve to 26.92%, reflecting better asset quality and capital strength. Additionally, on July 22, 2026, the bank announced the e-voting results from its AGM, where all resolutions — including the adoption of audited financials and approval of related party transactions with LIC Mutual Fund — were passed. Board changes were also confirmed, with Abhijit Chakravorty and Ketan Vikamsey appointed as Independent Directors effective May and June 2026, following their reappointment at the AGM on July 21, 2026.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

MetricJun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Revenue7,0277,1097,0807,8047,549
Operating Profit2,3783,1471,9503,1072,193
OPM %33.8%34.0%23.4%32.6%25.4%
Net Profit2,0243,2411,9591,9872,131
EPS₹1.88₹3.00₹1.82₹1.87₹1.98

The bank's quarterly performance shows a mixed but generally stable trend: revenue peaked at ₹7,804 crores in Q3 FY26 but declined slightly to ₹7,549 crores in Q1 FY27, while operating profit margin dipped from a high of 34.0% in September 2025 to 25.4% in June 2026. However, net profit remained stable at ₹2,131 crores in Q1 FY27, supported by cost efficiency and improved asset quality. Despite margin pressure in recent quarters, the bank maintained strong profitability with net profit growth of 5% YoY in Q1 FY27, consistent with management's emphasis on operational resilience and balance sheet strength.

🔮 Management Outlook & What's Next

Management did not provide forward guidance in the latest filing, particularly regarding NIM outlook or future growth expectations. While the bank highlighted strong deposit growth of 10% YoY and net advances growth of 22% YoY in Q1 FY27, it refrained from commenting on future NIM trajectory or profitability targets. This lack of explicit guidance suggests a cautious stance, with focus remaining on sustaining capital adequacy and asset quality rather than aggressive expansion.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

ItemMar 2025Mar 2026Mar 2026Mar 2026
Equity Capital10,75210,75210,75210,752
Reserves50,86857,37058,87657,812
Borrowings19,93224,30127,20428,104
Total Liabilities4.13 L Cr4.17 L Cr4.24 L Cr4.67 L Cr
Fixed Assets12,20012,03311,9469,685
Investments1.18 L Cr1.23 L Cr1.26 L Cr1.28 L Cr
Total Assets4.13 L Cr4.17 L Cr4.24 L Cr4.67 L Cr

The balance sheet shows a stable capital structure with equity remaining flat at ₹10,752 crores across recent quarters, while reserves have slightly increased, indicating retained earnings. Borrowings have risen modestly from ₹24,301 crores to ₹28,104 crores over the last three reporting periods, suggesting incremental funding for asset growth. Total assets have grown from ₹4.17 L Cr to ₹4.67 L Cr, reflecting expansion in business scale. The steady rise in reserves and controlled increase in liabilities underscore a conservative capital allocation strategy focused on organic growth and risk absorption.

💰 Cash Flow Statement (₹ Cr)

ItemMar 2026
Operating+16,762
Investing+1,422
Financing-5,765
Net Cash Flow+12,438

👥 Shareholding Pattern

CategoryQ2FY26Q3FY26Q4FY26Q1FY27
Promoters94.7%94.7%94.7%94.7%
FII0.5%0.5%0.6%0.5%
DII0.1%0.1%0.1%0.1%
Public3.9%3.9%3.8%3.8%
# Shareholders6,99,1026,87,8957,13,7767,18,543

Promoter holding remains stable at 94.71% across all recent quarters, indicating strong control by Life Insurance Corporation (LIC). However, FII and DII holdings have shown minor fluctuations, with FII decreasing slightly from 0.56% to 0.46% and DII declining from 0.12% to 0.08% over the last four quarters, while public shareholding has marginally increased. The growing number of shareholders — from 6.88 lakh to 7.19 lakh — suggests increasing retail participation, though institutional interest remains limited.

⚖️ Peer Comparison — Banks

Company MCap (₹ Cr) P/E ROCE ROE D/E
HDFCBANK 10.80 L Cr 13.6 25.0% 14.1% 1.00
ICICIBANK 10.24 L Cr 18.2 28.8% 16.4% 0.61
SBIN 9.42 L Cr 10.9 31.8% 14.8% 1.30
KOTAKBANK 4.22 L Cr 7.3 20.7% 11.2% 0.53
AXISBANK 3.90 L Cr 14.0 22.3% 13.1% 1.31
UNIONBANK 1.42 L Cr 6.9 44.9% 15.0% 0.58
PNB 1.34 L Cr 6.1 45.1% 13.7% 0.72
BANKBARODA 1.24 L Cr 6.8 31.2% 10.7% 1.03
INDIANB 1.18 L Cr 9.3 45.8% 15.7% 0.58
CANBK 1.14 L Cr 5.8 42.1% 16.1% 1.32

🔗 Peer Stock Analyses

⚠️ Risk Factors

1. Near-term NIM pressure is a key concern, as highlighted in the ICRA rating reaffirmation, due to competitive deposit rate pressures and slower pass-through of interest rate changes. 2. Asset quality, while currently stable, requires monitoring amid potential macroeconomic headwinds, especially given the bank's exposure to certain sectors. 3. The transition in leadership following the death of the former Chairman may introduce governance or strategic continuity risks, despite the interim appointment being approved. 4. Limited institutional investor interest could affect liquidity and market depth over time.

📋 Recent Filings

🧠 Analyst's Read

IDBI Bank is demonstrating resilience through improved capital ratios, declining NPAs, and stable promoter backing, but near-term challenges around NIM compression and leadership transition warrant close monitoring. Investors should watch for any forward-looking commentary on deposit pricing trends and the pace of business growth in upcoming quarters.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-03.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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