What is the Full Form of IDBI? – IDBI Full Form
The full form of IDBI is the Industrial Development Bank of India. It was established in the year 1964. It was founded as a subsidiary of the Reserve Bank of India (RBI). But in February 1976, the Government of India took its ownership.
The objective of IDBI is to provide loans and other financial facilities to the public. The bank operated as a Development Financial Institution for nearly 40 years.
Later, Life Insurance Corporation Of India (LIC) acquired 51% of equity share capital of the bank. The bank was then re-categorized as a Private Sector Bank by RBI in January 2019.
IDBI’s current businesses include :
● Merchant Banking
● Stock Broking
● Financial Product Distribution
● Corporate Advisory Services
● Debt Arranging & Undertaking
● Pension Fund Portfolio Management and Research Services.
- Preferred Banking
- Savings Account and Flexi Current Account
- Corporate Payroll Account
- Various loans for financial assistance like home loans, personal or education loans, etc.
- Pradhanmantri Social Security Scheme
- Various cards like credit cards, debit cards, prepaid cards, etc.
- Pay Apt-Mobile Wallet
- 24 Hours Banking: Phone Banking, Mobile Banking, Internet Banking, Personal Banking, etc.
IDBI Bank’s Subsidiaries :
● IDBI Capital
● IDBI Intech Ltd
● IDBI MF Trustee Company Limited
● IDBI Bank Limited, UAE Branch
● IDBI Bank Limited GIFT Branch
● IDBI Bank Limited, Asset Management Arm
● Kerela Industrial & Technical Consultancy Organisation Ltd
● IDBI Trusteeship Services Ltd
Key Personnel :
● Rakesh Sharma – Chief Executive Officer, MD & Director
● Ajay Kumar Parduman Sharma – Chief Financial Officer
● Ajoy Nath Jha – Chief General & Risk Manager
● Saumya Sankar Banerjee – Executive Director
● Mangalam R. Kumar – Non-Executive Chairman
● M. V. Phadke-Chief Auditor & Executive Director
● Mangalam R. Kumar- Non-Executive Chairman
Brief Timeline :
1st July 1964
The company was incorporated in 1964 in Mumbai, India. It was founded as a wholly-owned subsidiary of the RBI.
IDBI Bank Ltd. got promoted as a commercial bank with an authorised capital of Rs. 500.
The bank got National Stock Exchange (NSE) membership and allotted 17,30,93,300 shares to the public.
IDBI became the first financial institution to apply National Securities Depository Ltd (NSDL) as Depository Partner (DP).
IDBI raised Rs. 55 crore through a private placement of 90-day commercial paper.
They officially changed their name from Industrial Development Bank of India Ltd to IDBI Bank Ltd. They also tied up with Motilal Oswal Securities for online trading.
A new open-ended mutual fund was launched by IDBI Mutual Fund named IDBI Gold Fund.
IDBI Bank becomes the first public sector bank to launch Electronic Insurance Account (eIA) facility.
RBI kept IDBI under watch on non-performing assets (NPA) concerns.
RBI re-categorised IDBI Bank as a private sector bank with a retrospective effect.
Listing and Shareholding at IDBI :
|Mar 2018||Mar 2019||Mar 2020||Mar 2021|
A larger promoter stake is a positive sign. It indicates that the promoters believe in the future potential growth.
Nearly 95% of shares are still held by the promoters.
Usually, this is a good sign. But for IDBI, the reason for high promotor holdings is because there are very few buyers for the stock in the market.
Foreign Institutional Investors (FII) Holdings
The percentage of a stock held by FIIs indicates how common stock is among institutional investors. A significant amount indicates increased confidence in the company.
However, it can be disadvantageous when FIIs sell their interest in bulk. It can cause the share price to decline.No Foreign Institutional Investors have invested in IDBI.
Domestic Institute Investor (DII) Holdings
The presence of a domestic mutual fund and insurance firm in a company is a positive sign. With IDBI Bank, Domestic Institute Investor (DII) Holdings are very negligible.
Recommended Read: How to analyse a banking stock? A complete guide.
Financial Overview :
|Market Cap (Cr): 41,074||Face Value (₹): 10||EPS (₹): 1.41|
|Book Value (₹): 32.4||Roce (%): 4.73||Debt to Equity: 0.00|
|Stock P/E: 27.1||ROE (%): 4.35||Dividend Yield (%): 0|
|Revenue (Cr): 20,122||Earnings (Cr): 0||Cash (Cr): 0|
|Total Debt (Cr): 0||Promoter’s Holdings (%): 94.71|
Balance Sheet (in Rs. Cr.)
|Mar 2016||Mar 2017||Mar 2018||Mar 2019||Mar 2020|
|Cash & Bank||23,308||32,732||33,781||21,304||30,495|
|Loan and Advances||36,242||38,920||47,195||51,843||50,487|
Recommended Read: How to Analyse a Balance Sheet of a Company
Annual Profit & Loss (in Rs. Cr.) :
|Mar 2016||Mar 2017||Mar 2018||Mar 2019||Mar 2020|
|Profit before tax||-4,912||-8,498||-8,157||-15,013||-12,847|
Recommended Read: Learn to Analyse Income Statement of a Company
Mutual fund holdings and trends of IDBI Bank Ltd
|Schemes||Quantity||As on||Prev. Qty|
|INDIABULLS BLUE CHIP FUND – REGULAR PLAN – GROWTH OPTION||334||31-05-2021||306|
|INDIABULLS EQUITY HYBRID FUND-REGULAR PLAN – GROWTH||273||31-05-2021||251|
|MOTILAL OSWAL NIFTY MIDCAP 150 INDEX FUND-REGULAR GROWTH||33||31-05-2021||26|
|NIPPON INDIA NIFTY MIDCAP 150 INDEX FUND REGULAR PLAN GROWTH||12||31-05-2021||7|
|ADITYA BIRLA SUN LIFE NIFTY MIDCAP 150 INDEX FUND-NORMAL PLAN-GROWTH||6||31-05-2021||6|
|MOTILAL OSWAL NIFTY 500 FUND-REGULAR GROWTH||4||31-05-2021||3|
Samco’s Ratings for IDBI Bank
IDBI share page: 0.5 out of 5 stars (Stock Rating Date: 17th Aug 2021)
check current rating of IDBI Share Price : https://www.samco.in/share-price/idbi-bank-ltd/IDBI/INE008A01015
Valuation Analysis :
From the investor’s perspective –
If the market price is significantly lower than the stock’s intrinsic value, the stock has a high margin of safety. It is a buy signal.
From a seller’s point of view –
If the market price is significantly higher than the intrinsic value, it is a short sell opportunity.
While IDBI’s margin of safety is high, it is 0.5-star rated stocks and investors should avoid it.
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