IDBI Bank - Q1FY14 Result Preview - Angel Broking

IDBI Bank is slated to announce its 1QFY2014 results today. We expect the bank to report a healthy Net Interest Income (NII) growth of 16.5% yoy to Rs. 1,481cr. Non-interest income is expected to grow healthy by 23.6% yoy to Rs. 639cr. Operating expenses of the bank are expected to be higher by 22.5% yoy to Rs. 807cr. The provisioning expense for the bank is expected to remain flat at Rs. 506cr yoy. Due to this the Net Profit for bank is expected to grow strong by 28.3% yoy to Rs. 548cr.

The stock is currently trading at a valuation of 0.4x P/ABV FY2014E and 0.4x P/ABV FY2015E. Hence, we retain Neutral rating on the stock.

Source : Equity Bulls

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