Karvy Stock Broking Limited has maintained ‘Buy’ rating on IDBI Bank stock to achieve a target of Rs 188 within 2-3 days.

According to Karvy, interested traders can buy the stock between Rs 109-110 with a strict stop loss of Rs 105.

If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 120.
 
Today (June 17), the shares of the company opened at Rs 107.20 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 11.31 and 9.48 respectively. The share price has seen a 52-week high of Rs 112.65 and a low of Rs 39.75 on BSE.

The stock has great potential to rise on the back of healthy growth plans and strong operating capabilities.

IDBI Bank, on June 16, has approached the administration for infusion of Rs 8,000 crore to recapitalize it and fund its expansion in the next two to three years.

This will give the bank a scope to emerge with a follow on public offer.

Moreover, IDBI has also decided to raise debt of Rs 5,000 crore as core capital (tier-I), capital adequacy (tier-II) and senior debt, a bond, which takes priority over other forms of debt securities issued by the banking institution.

IDBI Bank slashed its depository rates by 0.5-1% in May 2009).

In April 2009, IDBI Bank slashed interest rates on its retail term deposits by 25-50 basis points crosswise different maturities.

It has also realigned its maturity period by ramifying the 3-year-5-days to 10-year maturity bucket.

The bank’s directors on April 24, 2009, approved plan to establish and make entry into the mutual fund business and encourage and support the planned mutual fund, the trust / trustee Company and AMC either as a wholly owned subsidiary or as a joint venture.

IDBI Bank posted a growth of 28.03% in its standalone net profit for the quarter ended March 2009.

IDBI’s net income increased 28.03% to Rs 3,136.70 million from Rs 2,450 million during the same quarter last year.

Interest earned during the quarter increased 45% to Rs 32,622.10 million, whilst total income for the quarter jumped 42.09% to Rs 37,345 million.

During the period under review, IDBI reported EPS of Rs 4.33.