IDBI Stock Price Analysis and Quick Research Report. Is IDBI an attractive stock to invest in?

The Indian Banking sector is rising rapidly due to infrastructure spending, favorable government policy, rising disposable income and increasing consumerism and easier access to credit.

The banking industry is in boom with growing demand across India. But is it the right time to invest in banking stocks is the question to be asked? We can look into more details and dig a little deeper into the analysis of the stock.

IDBI stock price today is Rs 94.82. Let’s look at how IDBI is performing and if it is the right time to buy the stock of IDBI with detailed analysis.

•  For Banking companies, The primary source of Income is interest earned on various loans given to individuals and corporates. IDBI has earned Rs 26426.134 Cr. revenue in the latest financial year. IDBI has posted decent revenue growth of 9.84546214257474 % in last 3 Years.

• In terms of advances, IDBI reported 16.0259 % YOY,  rise . If you see 3 years advance growth, it stands at 13.7514429427269 %.

• Currently, IDBI has a CASA ratio of 50.4316 %. It’s overall cost of liability stands at 4.1527 %. Also, the total deposits of IDBI from these accounts stood at Rs 277657.2234 Cr.

• IDBI has a healthy ROA track record. The ROA of IDBI is at 1.6244 %.

• The Lender is efficiently  managing it’s overall asset portfolio. The Gross NPA and Net NPA stood at 4.53 % and 0.34 % respectively as on the latest financial year.

• One other important measure of banks’ financial health is provisioning coverage ratio. The YoY change in provision and contingencies is negative at -60.0726323648837 % which means it has decreased from the previous year.

• Non-Interest income or other incomes are very important for banks as it gives a regular source of income for bank with no additional risk. Other income of IDBI decreased and is currently at Rs 3610.907 Cr.

• IDBI has a Good Capital Adequacy Ratio of 22.26 .

• The best metric which provides insights about bank’s valuation is P/B ratio. Currently IDBI is trading at a P/B of 2.0504 . The historical average PB of IDBI was 1.37003641004588.

• Share Price: - The current share price of IDBI is Rs 94.82. One can use valuation calculators of ticker to know if IDBI share price is undervalued or overvalued.