Hold IDFC Bank Ltd., target Rs 50 : Deutsche Bank Research

Deutsche Bank Research has a hold call on IDFC Bank Ltd. with a target price of Rs 50. The current market price of IDFC Bank Ltd. is 51. Time period given by analyst is year, when IDFC Bank Ltd. price can reach defined target. The MFI acquisition is a good deal, and makes practical sense, said the Deutsche Bank note. It will aid priority sector requirements and help build rural franchise. The deal will help in PSL buildup. IDFC Bank has to build PSL book of Rs 180 bn by end of FY17. If we look back IDFC Bank was overcapitalized with Tier-1 of 21% and cash acquisition will help lever more capital. The deal while positive will add only 3 per cent to the company's loan book.