Prabhudas Lilladher reserach report on IDFCIDFC Limited plans to launch its banking operations from Oct‐2015 with ~25 branches and focus on corporate and rural banking in the initial phase of its operations. The bank will be starting operations with a networth of Rs135bn (after making incremental provisions of Rs25bn) implying a Tier‐I of ~16%. IDFC Bank will get listed in November 2015 and the current suppressed share price of IDFC offers an attractive opportunity to buy into one of the strong emerging private banks. We value IDFC at Rs160 per share taking a holding company discount of 20% (Rs205 per share as per our bull case valuation) wherein we have valued IDFC Bank at 1.6x FY17E ABV. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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