IDFC First Bank Q3 Results Review - Makes Fresh Long-Term Guidance: Yes Securities

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Long-term loan growth guidance materially lags long-term deposits growth guidance likely owing to high loan-to-deposit ratio: IDFC First Bank Ltd. has stated that, over FY24-29, advances are to grow at a compound annual growth rate of 20.3% whereas customer deposits are to grow at a CAGR of 24.8%. We believe this differential of about 450 basis points in the two long-term CAGR figures is likely a natural requirement, among other reasons, of normalising the loan-to deposit ratio, which is at 102%, the highest in our coverage universe, bar HDFC Bank Ltd..IDFC First Bank has guided for broadly stable net interest margin, which we think would be the result of mix change being offset by the aforementioned loan-to-deposit ratio unwind: It is to be expected that retail loans would outpace wholesale loans, which would remain relatively de-focused. For the quarter, in addition to yield enhancement via loan mix change, legacy high-cost borrowings declined Rs 14 billion and stand at about Rs 136 billion. An incremental reduction of Rs 13 billion is expected to play out in Q4 FY24..We maintain a less-than-bullish ‘Add’ rating on IDFC Bank Ltd. with an unchanged price target of Rs 100: We value the bank at 2.0 times FY25 price/book value for an FY24E/25E/26E return on equity profile of 11.1%/12.4%/13.4%..Click on the attachment to read the full report:.ICICI Bank Q3 Results Review - RoA Seems To Settle At A Premium Level: Yes Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

IDFC First Bank Q3 Results Review - Makes Fresh Long-Term Guidance: Yes Securities

It seems like a broad continuation of NBFC-style model

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