Positive on IDBI Bank: Avinash Gorakshekar, Anagram Capital Ltd

Avinash Gorakshekar, Head of Research, Anagram Capital Ltd, in a chat with ET Now talks about IDBI Bank.

What is your view on IDBI Bank and Reliance Industries?

We are positive on IDBI Bank. The upturn and the credit cycle and the interest rate scenario is definitely looking to firm up. The bank witnessed almost a 25 basis point increase in the net interest margin last year.

Going forward, we feel that this is definitely going to gather further momentum in the forthcoming couple of quarters and typically the bank is looking forward to increasing its retail reach. In fact they are planning to put another 300 odd branches for the current year. The bank is targeting for a CASA ratio, which currently is around 14%, of roughly about 16-17%.

So to some extent, the cost of funds would again get competitive. We have given a SOTP roughly a target of Rs 25 for the investment book. So we expect the price of around 140 within the next 3-6 months.