Professional Documents
Culture Documents
Idbi LTD
Idbi LTD
Technical Outlook
Short Term Target: 150-190
Medium Term Target: 240-300
Investment rationale
IFCI corporate developments an immediate trigger
IDBI owns around 5% of IFCI. IFCI is currently under-going a structural change in
its existence with a probable infusion of a strategic partner with a global pedigree
and Indian aspirations. IDBI also co-owns with IFCI, structural gems of capital
markets like SEBI, NSE, SHCIL, CARE, ISIL, OTCEI and NSDL. It also owns
sizable holdings in Money Market institutions like DFHIL, STCIL and CCI.
IDBI has registered decent growth in its core business operations i.e., its
business volumes with a thrust on its Deposits portfolio. During the
period FY2005-07, aggregate business of the bank grew at a CAGR of
32.2% with deposits growing at a CAGR of 69.4%. In the same
period, the bank’s credit portfolio grew at a CAGR of 17.3% thereby
beefing up its revenue stream from its core business activity.
Net Interest Income declined by around 35% to Rs 629mn on the back of 35%
rise in the Interest Expenses.
Operating Expenses grew by 8.3% on the back of 36% rise in Staff Cost.
Aggregate Provisions more than doubled to Rs 1bn, lead by 194% rise in Other
Provisions and 53% increase in Tax Provision.
The Banks’ Total Business grew by 30% driven by Deposits growth of 61% to Rs 468bn
and
Advances growth of 14% to Rs 598bn.
IDBI LTD.
IDBI LTD.
IDBI LTD.
IDBI LTD.
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information contained herein may not be deemed to be an investment advice.
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VENKATARAMAN & CO.,
Stock & Share Brokers, New No.2 (Old No.52)
Dr. Ranga Road, Mylapore, Chennai 600 004.
Web: www.venkataraman .com E-mail: vnkco@vsnl.com