The Industrial Development Bank of India (IDBI), also known as IDBI Bank Limited, is a public sector bank that offers a wide range of financial products and services.
The market capitalisation of IDBI Bank as of August 10, 2018, was observed to be a little more than Rs.25,944 crore.
Company’s Wealth and Recent Performance
- As of March 31, 2018, the total number of deposits and advances that the bank had stood at Rs.2,47,931.61 crore and Rs.1,71,739.95 crore respectively. The total capital held was recorded to be Rs.3,083.86 when compared to the previous year’s Rs.2,058.81.
- For the year ended March 31, 2018, the total assets held worked out to be Rs.3,50,313.64 crore when compared to the previous year’s Rs.3,61,864 crore.
- The total income earned till March 2018 added up to Rs.30,035.41 crore, while the interest income earned was Rs.23,026.53 crore, and the other income gained added up to Rs.7,008 crore.
- On the other hand, the interest related expenses for the year ended March 31, 2018, was Rs.17,386.21 crore, while the operating costs were reported to be Rs.4,744.69 crore.
- During FY 2017- 18, the bank reported a net loss of Rs.8,237.92 crore due to the writing off of some Non-Performing Assets, investments and other bad debts. By March-end in 2018, the book value per share was Rs.39.01.
- When it comes to capital adequacy, as of March-end in 2018, the capital to risk-weighted assets ratio stood at Rs.10.41%. The mandatory requirement being Rs.10.875.
IDBI Bank Stock Trends in 2018
- On January 1, 2018, the price of an IDBI Bank stock was reported to stand at Rs.61.30. In the next few days, PSU stocks saw a surge, and the rate went up slightly, reaching Rs.75 by the 25th.
- On February 1, 2018, the cost per stock was observed to be Rs.60, but the price fell to Rs.56.05 on the 6th. During the last half of the month, the prices trends were inclining, reaching Rs.77 on the 26th. The month closed at Rs.72.80.
- On March 1, 2018, the cost of the share was Rs.74.30 and reached Rs.79.85 on the 5th of the month. By the 12th, the price fell to Rs.71 but increased during the latter part of the month.
- In April, the prices climbed up on the 10th, reaching Rs.74.80 but fell over the next few days of the month, which closed at the rate of Rs.67.75.
- On May 2, 2018, the price per share was observed to be Rs.66.75 and hovered above the Rs.60 mark all through the month.
- On June 1, 2018, the price of the stock at the NSE was Rs.66.85, and by the end of the first week, the rate fell to Rs.58.50 on the 6th. As mid-caps underperformed, the price of the stock dropped to Rs.50.15 on the 28th.
- With no significant improvements, the price of the stock fell to Rs.47.80 on July 6, 2018. As market influences improved, the price took a jump up, reaching Rs.58.30 on the 18th. By the 27th, the rate climbed up to Rs.59.15 and the year closed at Rs.59.80.
- On August 1, 2018, the price of the share stood at Rs.59, and by the 6th, the cost per share reached Rs.62.
IDBI Bank Stock Trends in 2016 and 2017
- On January 2, 2017, the price of an IDBI Bank stock on the NSE was Rs.69.50. It was observed that the cost of the share continued to increase in an ascending order throughout the month. By the 9th, the price reached 71.20 and the 27th; the rate peaked at Rs.79.80.
- On February 1, 2017, the rate at which the markets opened was at Rs.77.50, and by the 3rd, the rate climbed up to Rs.82.75. Three days later, the price averaged at Rs.81.10. However, after a loss was reported, the prices gradually began sinking, and the month closed at Rs.76.60.
- On March 1, 2017, the rate of an IDBI Bank scrip was Rs.80, a good improvement from the earlier month. After two weeks, prices fell to Rs.76.15 on the 15th. The price trends did not fluctuate much till the end of the month.
- April 2017 was a relatively steady month with the rate staying above the Rs.70 mark at all times. The month opened at Rs.75.60 and closed at Rs.74.65.
- On June 1, 2017, the cost of an IDBI share was recorded at Rs.59.55, and by the 30th, the price declined to Rs.53.65. The next month, there was an improvement over the weeks, and the price reached Rs.61.70 on the 26th.
- On July 3, 2017, the rate of the scrip was Rs.53.85 and by the 26th, the price inclined to Rs.61.70. While August began at a good note of Rs.59.70, the market could not withstand the gains, and the price fell to Rs.52.85 by the 14th and by the 22nd, the stocks hit the 52-week low and the month closed at Rs.55.30.
- On September 1, 2017, the price of the stock was Rs.55.30, and by 19th, the cost per share crept up to Rs.57.30.
- The first few weeks of October 2017 did not see any promising gains but by the 27th, there was a bullish frenzy in the markets, and the cost crept up to Rs.67.70.
- By November 2017, the price trends seemed quite positive. By the 3rd, the price was Rs.65.30 as PSU stocks were on the upswing in the market. December was also steady as far as prices were concerned. The year came to an end at the rate of Rs.60.50.
- On January 1, 2016, the stock price was Rs.91, and by 20th, the rate fell to Rs.56.50. However, the price trends improved during the last few days of the month. The prices did not fluctuate much in February, but in March, there was a surge, reaching Rs.68.45 on the 10th.
- On April 1, 2016, the price peaked at Rs.70.75, possibly influenced by LICs ups in IDBI stakes. On May 5, the scrip price stood at Rs.66.20 and remained steady for the rest of the month.
- On July 1, 2016, the price Rs.70.30 and peaked at Rs.76.50 on the 15th. Prices were quite steady during August and September.
- On October 3, 2016, the price of the stock was Rs.69.80. The following month, there were not many changes in prices. The year came to a close at Rs.68.10.
Should you invest in IDBI Bank?
- In spite of operating under difficult circumstances during 2017-2018, the bank managed to implement a comprehensive turnaround strategy.
- The bank is looking to increase its revenue and stimulate its assets base and is continuously making efforts to improve the quality of asset management.
- IDBI has always kept customers at its core and will continue to do the same as part of its business strategy.
IBBI Bank is often referred to as a ‘Universal Bank’, and it is equipped with innovative core banking IT platforms. They have a huge network base with branches and ATMs across the country. The bank has been catering to the commercial banking needs for the last four decades, and it is known to be ‘one among the largest commercial banks’ in the country. Based out of Mumbai, as of today, IDBI Bank has in place a technologically driven platform and offers a wide range of banking services in a personalised manner to clients across various verticals. The bank has also managed to make leaps into the project finance area, establishing itself in segments such as mutual funds, investment banking as well as capital markets. Over the years, IDBI has gained a reputation for being the ‘Bank of choice’ and also gained recognition as ‘one among the most valued financial conglomerates’.
History of the Company
IDBI was instituted under the aegis of the Industrial Development Bank of India Act, 1964, as part of the Development Financial Institution (DFI). The bank was established on July 1, 1964 and it is a public sector financial institution as per Sections 4A of the Companies Act, 1956. With effect from May 7, 2008, the name of the bank was changed to IDBI Bank Limited from IDBI Limited.
Management of the Company
B Sriram – Managing Director and CEO
Sriram has been recently appointed as the managing director and CEO of the bank. He previously served as the managing director (global banking and corporate) for the State Bank of India (SBI). He began his career in the banking industry in 1981 and has more than 28 years of vast and risk experience across verticals in this sector. He has a certification in CAIIB and has a Master of Science (MSc) in Physics from St. Stephen’s College in Delhi. He also has a diploma in management studies.
IDBI BankListings in NSE, BSE, and Indices
IDBI Bank equity shares are available for trading on the National Stock Exchange of India Limited and the Bombay Stock Exchange. The respective codes for the same have been mentioned below:
NSE Code: IDBIEQ
BSE Code: 500116
Sector: Banks – Public sector
Coming to the stock market indices, the company comprises the following:
- Nifty 200
- Nifty 500
- Nifty Full Midcap 100
- Nifty High Beta 50
- Nifty LargeMidcap 250
- Nifty Midcap 100
- Nifty Midcap 150
- Nifty Midcap 50
- Nifty MidSmallcap 400
- Nifty PSU Bank
- S&P BSE 150 MidCap Index
- S&P BSE 200
- S&P BSE 250 LargeMidCap Index
- S&P BSE 400 MidSmallCap Index
- S&P BSE 500
- S&P BSE AllCap
- S&P BSE Dollex - 100
- S&P BSE Dollex - 200
- S&P BSE Enhanced Value
- S&P BSE Finance
- S&P BSE LargeMidCap
- S&P BSE MidCap
- S&P BSE MidSmallCap
- S&P BSE PSU
IDBI Bank Ltd. IDBI Tower, WTC Complex, Cuffe Parade, Colaba, Mumbai 400005.
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