Is IDBI Bank stock undervalued? It all hinges on the government’s potential stake sale. (opens original article in a new tab)

IDBI Bank's stock valuation is influenced by its classification as a private sector bank and the potential government stake sale.

• IDBI Bank is classified as a private sector bank but is effectively government-controlled with LIC as the largest shareholder.
• The bank's stock trades at lower PE and PB multiples compared to private sector banks but higher than some public sector banks.
• A potential government stake sale could lead to a re-rating of the bank's stock if completed.