Views on IDBI Bank 1QFY2016 Results - Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research - Banking, Angel Broking) on IDBI Bank 1QFY2016 Results:

"IDBI Bank reported 1QFY2016 results which were lower than our estimates. Net Interest Income went up by 19.5% on lower base, and growth in other income of 28.5% led to 22% growth in operating Income. Asset quality, which had improved marginally in last quarter, deteriorated as its Gross NPA ratio went up by 76bps qoq to 6.64%, while Net NPA ratio was 3.18% as compared to 2.88% in 4QFY2015. Given its high exposure to stressed sectors and past volatility in its asset quality performance, we remain cautious on the asset quality of the bank. At CMP, stock trades at a valuation of 0.4x P/ABV FY2017E. We retain our NEUTRAL rating on the stock."

Shares of IDBI BANK LTD. was last trading in BSE at Rs.62.3 as compared to the previous close of Rs. 65. The total number of shares traded during the day was 664111 in over 3316 trades.

The stock hit an intraday high of Rs. 65.5 and intraday low of 61.75. The net turnover during the day was Rs. 41895719.

Source : Equity Bulls

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