The proposed sale of IDBI Bank to Fairfax Financial Holdings puts a valuation of about 1.56 times its adjusted book value on the lender, below the multiples commanded by some banks in earlier acquisitions including Kotak Bank's merger of ING Vysya.

The implied book multiple is below those reported in earlier acquisitions of ING Vysya, Bank of Rajasthan and Centurion Bank of Punjab, though valuation bases differ.

IDBI Bank's asset quality has improved, with gross NPAs at 2.32%, net NPAs at 0.15% and provision coverage at 99.39% in March 2026.

Capital adequacy rose to 26.65% in FY26, while net profit increased 27% to Rs 9,513 crore.

Lower full-year net interest income, NIM and return on equity temper the improvement, making sustainable profitability a key test of the acquisition valuation.

56 times its adjusted book value as of March 2026, below the multiples reported in some earlier Indian bank acquisitions. The gap reflects differences in the banks' financial health, profitability and growth prospects, as well as the valuation methods and deal structures used, making the transaction a test of how investors price a lender emerging from years of balance-sheet stress. 85. The comparison, however, needs to account for differences in the book-value measures, financial condition of the target banks and the nature of the transactions.

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