The stock has seen significant buying interest recently, gaining over 27% YTD
IDBI Bank is in a strong technical momentum ahead of its first-quarter results scheduled later in the day.
The stock is currently trading just below its all-time high of ₹105.48 after completing a long, multi-year, rounded bottom pattern, said SEBI-registered analyst Rohit Mehta.
IDBI Bank shares broke out of a key support zone of ₹74 - ₹82 and are consolidating with increased volume, Mehta noted.
The upcoming Q1FY26 results could serve as a key catalyst, and a sustained move above ₹105 is expected to trigger a fresh rally.
At the time of writing, IDBI Bank shares were down 0.9% at ₹97.54.
Last quarter, despite a marginal decline in revenue, the bank delivered a 42.9% growth in profit before tax and a 25.16% increase in EPS. However, financing profit declined significantly, indicating some pressure on interest income.
On the shareholding front, promoter holding remained steady at 94.72% in Q4FY25, while foreign investors (FIIs) marginally increased their stake from 0.42% to 0.46%. Domestic (DIIs) holdings remained unchanged.
IDBI has posted a 21% profit CAGR over the past five years and maintained a consistent 28.8% dividend payout. However, risks include a low interest coverage ratio, high contingent liabilities of ₹3.35 lakh crore, and a modest 11.4% return on equity, Mehta noted.
The stock has experienced strong buying interest year-to-date (YTD), gaining over 27%.
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