IDFC First Bank reported a steady quarter, aided by healthy operating performance and robust business growth. Net interest margins declined 32 basis points QoQ to 5.6% vs Q1 adjusted NIMs of 5.9%, and management expects NIMs to recover to 5.8% by Q4 FY27 on the back of repo hikes and deployment of surplus liquidity. Deposit growth was healthy, driven by strong FCNR(B) deposit mobilisation. Loan growth, excluding loans against FCNR(B) deposits, was healthy at 22% YoY, with strong traction across retail and wholesale segments.
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Motilal Oswal Report
According to domestic brokerage Motilal Oswa, IDFC First Bank Ltd. reported a steady quarter, aided by healthy operating performance and robust business growth.
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Net interest margins declined 32 basis points QoQ to 5.6% vs Q1 adjusted NIMs of 5.9%, and management expects NIMs to recover to 5.8% by Q4 FY27 on the back of repo hikes and deployment of surplus liquidity.
Deposit growth was healthy, driven by strong FCNR(B) deposit mobilisation. Loan growth, excluding loans against FCNR(B) deposits, was healthy at 22% YoY, with strong traction across retail and wholesale segments.
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Management maintains its 1% RoA guidance for FY27 with credit cost guidance at 1.5-1.6%.
The brokerage has fine-tuned its FY27/28 earnings estimates and expect FY27E RoA/RoE of ~1.0%/9.2%.
Motilal Oswal has reiterateds Buy rating on IDFC First Bank with a revised target price of Rs 100 (1.5 times Mar'28E adjusted book value).
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