Neutral IDFC Bank Ltd., target Rs 56 : Bank of America Merrill Lynch

Bank of America Merrill Lynch has Neutral call on IDFC Bank Ltd. with a target price of Rs 56. 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 overall deal with Grama Vidiyal Microfinance should be net accretive. The deal would help the company to get distribution that it can leverage in future. The deal will enable the company to get access to PSL loans at very attractive yield. BofA-ML is of the view that overall earnings impact is likely limited at 2-3%.