as per money control data IDBI book value is 103, yes bank 55, idfc 47 icici bank 445 hdfc bank 345. from this one can judge the potention idbi bank stock has. for follow up ipo the price shoud be at least 1.8 to 2.5 times book value.
vrn179210, you have compared IDBI Bank with private sector banks. HOWEVER, majority stake of IDBI bank is with the Government i.e. 52.67% as on 30th Sept.2009. Any comparison should be with similar size PSU bank.
that the problem in thinking. IDBI is governed by seperate law. This is going to make idbi more advantage then other. just see around who is expanding. do you see BOR or INdus Ind or Yes bank expanding, or IDBI expanded. every nook & corner IDBI is coming up that to with good look effect. In pvt sector thee is scope of keeping thing under carpet. In psu its very difficult that why Fii,s trust psu more then pvt.
vrn179210, Time will tell how advantageous separate law governing IDBI Bank. However, eversince the erstwhile IDBI Bank Ltd. was merged with IDBI (the present IDBI Bank) and merger of another bank etc., many boarders here were predicting that the present entity will shoot up to Rs.500/- or Rs.1000/- etc. within 2 or 5 years etc.etc. So, let us wait for another year or two to see what happens to this scrip.
i agree with you. this is general phenomena. i remember bank of ndia. for long it was hovering at Rs40. similarly icici bank when merge was trading at low value for long time. I feel IDBI will start benifiting now as mainly there branches are to international quality, which we don`t see in most psu banks.
tell me why should idbi bring fpo at book value or lower. take book value of all banks & check there current share price. it will be from the range of 1.5 to 3.5. Also idbi has it brand & good position & experaince in Industrail financing. above all it is fast expanding in retail segment.
one more thing i would like to suggest, psu doesn`t mean inferior. most of the past employee of psu are working in pvt banks. Also RBI is PSU but is renowed world over for its governess. so just remove that mind set. today you go to icicic bank branch you will see huge croud like state bank of India. But at IDBI its a differance as minimum deposit in saving account is Rs10000/- so thay are capturing elite class & are sucessful in it.
RBI - Just to correct your perception about RBI...
RBI WAS renowned world over because it was governed by YV Reddy who cared a foot for Politician’s, especially the countries Finance Minister and the guys from the Finance Ministry licking the Finance Minister.
But currently RBI is governed by one who cherishes following dictates from Finance Ministry instead of doing what is in the interest of the nation. Infact he was with Finance Ministry before taking over the reins of RBI.
So don’t be surprised if India ends up messing up royally under this governor :)
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