With improving asset metrics and a bullish retail outlook, IDBI Bank may rally further if it crosses key technical resistance, according to the analyst.
Earlier this week, IDBI Bank posted its quarterly results with net profit climbing 17% to ₹2,007 crore and total income rising 13% to ₹8,458 crore. However, net interest income declined slightly to ₹3,166 crore, and net interest margin compressed by 50 bps to 3.68%.
Asset quality continued to improve, with gross NPA falling to 2.93% and net NPA to 0.21%. The provision coverage ratio remained high at 99.31%.
The Current Account and Savings Account (CASA) ratio remains above 50% and its strong balance sheet is supported by a Capital to Risk-Weighted Assets Ratio (CRAR) of 25.39% and CET-1 ratio at 23.71%.
Technical Outlook
IDBI Bank stock is consolidating within a narrow range of ₹90 - ₹105, said SEBI-registered analyst Varunkumar Patel. The stock’s sideways structure suggests temporary indecision, he added.
A breakout above ₹102, especially with volume support, could propel the stock toward ₹125 - ₹130 in the short term.
On the downside, support lies near ₹87, with ₹81 being a key pivot. Any break below this level could signal weakness towards the ₹65-₹72 zone, Patel said.
The relative strength index (RSI) sits near 47.5, indicating a neutral bias, while volume spikes seen in late June hint at accumulation interest. The medium-term trend remains positive as long as ₹87 holds, he added.
With a renewed focus on retail lending, digital transformation, and sustained profitability, IDBI Bank appears well-positioned for continued outperformance.
Retail sentiment on Stocktwits shifted to ‘bullish’ on the back of the Q1FY26 results. It was ‘neutral’ a day earlier.
The stock closed 2.2% higher on Wednesday at ₹97.39 and has gained more than 27% year-to-date.
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