Is IDBI Bank overvalued or undervalued?

As of 22 August 2025, IDBI Bank's valuation grade has moved from attractive to very attractive, indicating a stronger outlook for the bank. The company is currently considered undervalued, with a PE ratio of 13.09, a Price to Book Value of 1.64, and a PEG ratio of 0.48. Notably, IDBI Bank's return on equity stands at 12.51%, and its net NPA to book value is a low 0.72, which reflects solid asset quality.
In comparison to its peers, IDBI Bank's PE ratio is higher than that of SBI at 10.32, but significantly lower than Bank of Baroda's 6.32 and Punjab National Bank's 8.05, both of which are also rated very attractive. The bank's recent stock performance has outpaced the Sensex, with a year-to-date return of 24.18% compared to the Sensex's 4.05%, reinforcing the positive valuation narrative.