IDFC First Bank Q3 Results Review - Earnings Momentum On Track; RoA Improves Further: Motilal Oswal
IDFC First Bank reported a stable performance in Q3 FY23.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
IDFC First Bank Ltd. reported a stable performance in Q3 FY23. Profit after tax rose 115% YoY to Rs 6.0 billion, driven by higher net interest income, healthy retail deposit growth and higher fee income.
Business growth remained robust as the loan book grew 26% YoY, led by 37% YoY growth in retail loans. The wholesale book was flat. The growth in deposits was encouraging at 8% QoQ.
Current account and savings account deposits too saw a healthy growth of 5% QoQ. Thus, the CASA ratio was strong at 50%.
IDFC First Bank is entering a phase of strong loan growth as the drag from the wholesale book moderates. This will be aided by a strong pickup in profitability due to the replacement of high-cost borrowings, better cost trends and controlled credit costs.
We estimate IDFC First Bank to deliver FY25 return on asset/return on equity of 1.3%/15.1%.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.