IDFC First Bank Shares Touch Seven-Month High Post RBI Repo Rate Cut

Share price for IDFC First Bank Ltd. jumped over 5% after the Reserve Bank of India cut the repo rate by 50 basis points to 5.5%, as announced by RBI Governor Sanjay Malhotra.

The central bank also reduced the cash reserve ratio by 100 basis points to 3% in the June policy meeting. These moves are expected to boost liquidity in the banking system.

The NSE Nifty Bank rose 0.80% to a record high of 56,205 around 11:00 a.m. on Friday. Shares of HDFC Bank Ltd. and Axis Bank Ltd. were at the forefront of the rally.

Share price for IDFC First Bank rose as much as 5.76% to Rs 70.65 apiece, the highest level since Oct. 22, 2024. It pared gains to trade 5.06% higher at Rs 70.18 apiece, as of 11:30 a.m. This compares to a 0.92% advance in the NSE Nifty 50.

The stock has risen 11.09% on a year-to-date basis, but fallen 9.19% in the last 12 months. Total traded volume so far in the day stood at 2.8 times its 30-day average. The relative strength index was at 43.05.

Out of 25 analysts tracking the company, 13 maintain a 'buy' rating, seven recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 0.9%.