IDBI Bank Limited (IDBI) AI Stock Analysis

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IDBI Bank Limited

(NSE:IDBI)

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Rating:67Neutral

Price Target:INR 91.00▲(13.78% Upside)

Action:downgraded

Date:10/16/26

IDBI Bank scores moderately above average, driven primarily by a credible financial turnaround: sharply higher profitability, a stronger and less leveraged balance sheet, and a tripling of return on equity since FY2021. An inexpensive 9.6x P/E and a 2.3% dividend yield further support the score. Offsetting these strengths are volatile cash flows — including a projected sharp FY2026 decline — and a lacklustre technical picture, with the share price trading below most key moving averages and neutral momentum readings. Higher-than-market volatility (beta 1.75) adds risk for investors.

Positive Factors

Profitability improvementThe sharp expansion in net and operating margins indicates a materially stronger earnings base than in earlier years. If maintained, improved profitability can support capital generation, strengthen resilience through the banking cycle, and provide greater capacity to invest in customer and digital channels.

Negative Factors

Uneven revenue growthAlthough revenue has expanded over the longer period, its uneven year-to-year path makes the durability of top-line growth less certain. Inconsistent revenue momentum can constrain operating leverage and complicate planning for lending expansion, investment, and recurring fee generation.

IDBI Bank Limited (IDBI) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 860.19B
Dividend Yield: 2.63%
Average Volume (3M): 1.03M
Price to Earnings (P/E): 10.3
Beta (1Y): 1.41
Revenue Growth: 2.70%
EPS Growth: -10.57%
Country: India
Employees: 19,108
Sector: General
Sector Strength: 55
Industry: Banks - Regional

IDBI Bank Limited Business Overview & Revenue Model

Company Description

IDBI Bank Limited provides banking and financial solutions to retail and corporate customers in India. It operates through three segments: Corporate/Wholesale Banking, Retail Banking, and Treasury Operations. The company offers savings, current, and...

How the Company Makes Money

IDBI primarily earns money through a mix of interest income and non-interest (fee and other) income typical of a universal bank. 1) Net interest income (core banking spread): The bank collects funds mainly via customer deposits (savings, current, and...

IDBI Bank Limited Financial Statement Overview

Summary

A strong multi-year turnaround underpins the score. The income statement (78) shows net margins expanding from ~6% in FY2021 to an estimated ~26% in FY2026 and revenue rising from ₹242B to ₹356B, though top-line growth is moderating. The balance sheet (72) has been materially de-risked, with equity nearly doubling to ₹686B, debt-to-equity falling from 0.76 to 0.41, and ROE recovering to 12.4%. Cash flow (60) is the weak link: operating cash flow was negative in FY2022–FY2023, surged to ₹258B in FY2025, but is projected to fall sharply to ₹119B in FY2026 with steeply negative free cash flow growth, adding uncertainty.

Income Statement

78Positive

Balance Sheet

72Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	356.31B	356.31B	322.50B	294.45B	241.29B	220.83B
Gross Profit	169.06B	212.33B	179.94B	172.19B	149.98B	129.62B
EBITDA	119.72B	122.75B	81.27B	63.07B	41.86B	30.08B
Net Income	92.10B	92.10B	76.31B	57.88B	37.06B	25.34B
Balance Sheet
Total Assets	4.67T	4.67T	4.13T	3.64T	3.31T	3.02T
Cash, Cash Equivalents and Short-Term Investments	569.15B	569.15B	444.77B	260.09B	293.52B	102.36B
Total Debt	281.04B	281.04B	199.32B	364.76B	324.42B	323.19B
Total Liabilities	3.99T	3.99T	3.51T	3.13T	2.85T	2.60T
Stockholders Equity	685.64B	685.64B	616.20B	510.73B	463.19B	425.72B
Cash Flow
Free Cash Flow	-53.56B	115.48B	254.46B	184.21B	-28.95B	-41.27B
Operating Cash Flow	-52.07B	118.76B	257.96B	187.33B	-26.01B	-39.32B
Investing Cash Flow	15.75B	-422.41B	-3.44B	-2.22B	-2.94B	-1.95B
Financing Cash Flow	-90.64B	427.84B	-69.90B	202.58B	-35.65B	-43.83B

IDBI Bank Limited Technical Analysis

Technical Analysis SentimentNeutral

Last Price79.98

Price Trends

50DMA82.87Negative

100DMA83.94Negative

200DMA84.62Negative

Market Momentum

MACD-0.90Negative

RSI47.54Neutral

STOCH63.43Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IDBI, the sentiment is Neutral. The current price of 79.98 is above the 20-day moving average (MA) of 79.69, below the 50-day MA of 82.87, and below the 200-day MA of 84.62, indicating a neutral trend. The MACD of -0.90 indicates Negative momentum. The RSI at 47.54 is Neutral, neither overbought nor oversold. The STOCH value of 63.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:IDBI.

IDBI Bank Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:IDBI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:PNB	77Outperform	INR 1.64T	7.19	―	2.10%	2.89%	34.19%
IN:INDIANB	76Outperform	INR 1.25T	9.51	―	1.96%	12.44%	17.22%
IN:BANKBARODA	73Outperform	INR 1.41T	7.16	―	3.11%	8.17%	2.75%
IN:CANBK	68Neutral	INR 1.19T	5.83	―	3.20%	-6.75%	6.41%
IN:IDBI	67Neutral	INR 859.98B	10.35	―	2.63%	2.70%	-10.57%
IN:UNIONBANK	66Neutral	INR 1.55T	7.04	―	2.46%	0.31%	19.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:IDBI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:IDBI	IDBI Bank Limited	79.98	-22.27	-21.78%
IN:BANKBARODA	Bank of Baroda	273.55	-5.23	-1.88%
IN:CANBK	Canara Bank	131.00	-13.34	-9.24%
IN:INDIANB	Indian Bank	930.90	59.45	6.82%
IN:PNB	Punjab National Bank	143.00	23.47	19.64%
IN:UNIONBANK	Union Bank of India Limited	203.00	53.42	35.71%

IDBI Bank Limited Corporate Events

Government Clears Strategic Restructuring and Majority Stake Sale in IDBI Bank

Oct 14, 2026

The Government of India has approved a strategic restructuring of IDBI Bank Ltd., following an improvement in the bank’s financial condition and the lifting of RBI restrictions in 2021 under continued monitoring. The plan involves divesting a combine...

CARE Reaffirms IDBI Bank’s Top Short-Term Rating Amid Strong Capital and Profitability

Aug 27, 2026

IDBI Bank has had its short-term certificate of deposit programme rating reaffirmed at CARE A1+, reflecting strengthened asset quality, improved profitability and robust capital buffers. CARE notes that despite some margin compression from repo rate...

IDBI Bank Holds 22nd AGM, Confirms Clean Audit and Interim Chair

Jul 21, 2026

IDBI Bank Limited held its 22nd Annual General Meeting on July 21, 2026, conducted exclusively via video conferencing and other audio-visual means in line with allowances from the Ministry of Corporate Affairs and SEBI. Following the death of Chairma...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 16, 2026

IDBI Bank Limited AI Stock Analysis