IDBI Bank Stock Drops Over 30% in a Month, Still Not Considered Cheap
Loading more articles...
IDBI Bank Stock Plunges 30% in a Month, Still Not a Bargain Buy
C
CNBC TV18•16-03-2026, 17:06
IDBI Bank Stock Plunges 30% in a Month, Still Not a Bargain Buy
•IDBI Bank shares fell nearly 16% on March 16 and over 30% in the last month.
•The decline followed the government's cancellation of its plan to divest its stake in the lender.
•Despite the fall, the stock trades at 1.5 times its book value, considered not cheap compared to peers like UCO Bank (0.94x) and Punjab and Sind Bank (1.16x).
•Sunny Agarwal of SBI Securities suggests a further 8-10% correction cannot be ruled out, as re-rating expectations from privatization are now "on the back burner."
•High valuation sought by the Government of India (controlling 94.7%), complexity of taking over a PSU bank, and global uncertainties deterred potential suitors like Emirates NBD.
