Stock market analyst Ashwani Gujral has maintained ‘Buy’ rating on IDBI Bank to achieve an intraday target of Rs 115.

According to Mr. Gujral, interested traders can buy the stock with a strict stop loss of Rs 95.

Shares of the company, on Wednesday (June 17), closed at Rs 102.35 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 6.05 and 7.29 respectively. The total volume of the shares traded was 4,990,692. The share price has seen a 52-week high of Rs 113.05 and a low of Rs 39.75 on BSE.

Mr. Gujral also said that if the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 120.

IDBI Bank, on June 16, approach the administration for infusion of Rs 8,000 crore to recapitalize it and fund its expansion in the next two to three years.

This will provide IDBI a scope to come out with a follow on public offer.

The banking institution has also decided to lift up debt of Rs 5,000 crore as core capital (tier-I), capital adequacy (tier-II) and senior debt, a bond that takes priority over other types of debt securities issued by IDBI.

IDBI Bank cut its depository rates by 0.5-1% during the last month.

IDBI Bank, in April 2009, cut interest rates on its retail term deposits by 25-50 basis points crosswise different maturities.

It has also realigned its maturity period by ramifying the 3-year-5-days to 10-year maturity bucket.

The bank’s directors on April 24, 2009, approved plan to establish and make entry into the mutual fund business and encourage and support the planned mutual fund, the trust / trustee Company and AMC either as a wholly owned subsidiary or as a joint venture.

IDBI Bank recorded a growth of 28.03% in its standalone net profit for the quarter ended March 2009.

IDBI’s net income grew by 28.03% to Rs 3,136.70 million from Rs 2,450 million during the same quarter last year.

Interest earned during the quarter increased 45% to Rs 32,622.10 million, whereas total income surged 42.09% to Rs 37,345 million.

During the period, the bank posted an EPS of Rs 4.33.