IDBI Bank capitalises on higher advance tax payment

IDBI Bank vaulted 5.55% to Rs 81.80 at 12:03 IST on BSE on reports it had paid 43% higher advance tax at Rs 10 crore in Q1 June 2008 over Q1 June 2007.

On BSE, 12.76 lakh shares were traded in the counter. The scrip had an average daily volume of 12.18 lakh shares in the past one quarter.

The stock hit a high of Rs 82.20 and a low of Rs 77.70 so far during the day. The stock had a 52-week high of Rs 181 on 20 November 2007 and a 52-week low of Rs 74 on 12 June 2008.

The stock had underperformed the market over the past one month till 16 June 2008, declining 22.81% compared to the Sensex's decline of 11.70%. It also underperformed the market in the past one quarter, declining 13.21% compared to Sensex's return of 3.79%.

The bank's current equity is Rs 724.76 crore. Face value per share is Rs 10.

The current price of Rs 81.80 discounts its Q4 March 2008 annualized EPS of Rs 13.52, by a PE multiple of 6.05.

IDBI Bank paid Rs 107 crore as tax last fiscal. Advance taxes are paid in four instalments, June, September, December and March every year. Usually, the first instalment is 15% of the total tax estimated to be paid for the whole fiscal.

IDBI Bank reported 14.7% rise in net profit to Rs 244.99 crore on 20.3% growth in total income to Rs 2628.20 crore in Q4 March 2008 over Q4 March 2007.

IDBI Bank principal activities are to provide commercial banking services, which include merchant banking, direct finance, infrastructure finance, rehabilitation assistance, venture capital fund, advisory, trusteeship, forex, treasury and other related financial services.