IDBI Full Form, Functions, and Latest Financial Details

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. Key Products

• 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. September 1994 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. 1997 IDBI became the first financial institution to apply National Securities Depository Ltd (NSDL) as Depository Partner (DP). 2001 IDBI raised Rs. 55 crore through a private placement of 90-day commercial paper. 2008 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. 2012 A new open-ended mutual fund was launched by IDBI Mutual Fund named IDBI Gold Fund. 2014 IDBI Bank becomes the first public sector bank to launch Electronic Insurance Account (eIA) facility. 2017 RBI kept IDBI under watch on non-performing assets (NPA) concerns. January 2019 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
Promoters	80.96	97.46	98.11	94.71
FIIs	1.71	0.1	0.02	0.09
DIIs	12.15	0.27	0.15	1.62
Public	5.17	2.17	1.73	3.58

Promoter Holdings 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
Share Capital	2,059	2,059	3,084	7,736	10,381
Reserves	26,000	21,204	18,824	30,610	24,455
Borrowings	3,35,679	3,24,580	3,10,962	2,72,478	2,58,963
Other Liabilities	11,537	14,646	18,039	10,287	6,915
Total Liabilities	3,75,275	3,62,488	3,50,909	3,21,111	3,00,713
Fixed Assets	7,041	6,893	6,350	7,842	7,719
Cwip	481	541	502	468	488
Investments	92,810	93,075	91,848	93,328	81,996
Other Assets	2,74,943	2,61,980	2,52,208	2,19,474	2,10,511
Total Assets	3,75,275	3,62,488	3,50,909	3,21,111	3,00,713
Inventories	0	0	0	0	0
Trade Receivables	0	0	0	0	0
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
Trade Payables	0	0	0	0	0

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
Revenue	28,058	27,805	23,046	22,102	20,854
Expenses	14,339	18,129	20,698	24,045	24,093
Financing Profit	-8,212	-12,343	-15,028	-18,106	-17,080
Financing Margin	-29	-44	-65	-82	-82
Other Income	3,518	4,207	7,248	3,463	4,626
Interest	21,931	22,019	17,376	16,162	13,841
Depreciation	218	362	377	370	394
Profit before tax	-4,912	-8,498	-8,157	-15,013	-12,847
Tax	26	40	0	0	0
Net Profit	-3,591	-5,016	-8,132	-14,987	-12,835

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/stocks/idbi-bank-ltd-share-price 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. Visit Samco’s stock pages for an overview on specific company. Search for stocks to get live prices, ratings and analysis. Watch Best Banking Stocks to Buy in 2021 – How to Analyse Best Banking Stocks