IDFC First Bank Q4 Results Review - Elevated CTI Level Disappoints: Centrum Broking

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..Centrum Broking Report.IDFC First Bank Ltd. reported Q4 FY24 numbers which disappointed on high opex front. Net interest income for the quarter came in line at Rs 44.7 billion (up +24%/+4% YoY/QoQ).However, opex came in higher at Rs 44.5 billion (up +30%/5.4% YoY/QoQ). Resultantly, CTI for the quarter and FY24 remained sticky at 72.7% and 72.1% (up 80 basis points), respectively.Other income witnessed an increase of +17%/+8% YoY/QoQ. Resultantly, Pre-provision operating profit came in at Rs 16.6 billion, up 6%/up +5% YoY/QoQ growth in line with our estimates. However, credit cost for the quarter was little higher at Rs 7.2 billion versus. Rs 6.5 billion in Q3 FY24 leading to improvement in provision coverage ratio.Hence, profit after tax came in at Rs 7.3 billion (up ~4%/flattish YoY (adjusted for one time in Q4 FY23)/QoQ) versus. our expectations of Rs 7.7 billion. Gross non-performing assets decreased sequentially and came in at 1.88% which is lower by 16bps QoQ, net non-performing assets at 0.60% which also came lower by 8bps QoQ. Capital to risk assets ratio came in at 16.11%.We maintain our 'Buy' recommendation for the stock. We roll forward to FY26 from H1 FY26 and value IDFC First Bank at two times adjusted book value for FY26E, resulting in a revised target price of Rs 106..Click on the attachment to read the full report:.Karnataka Elections 2023: BJP Releases Second List Of 23 Candidates.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 Q4 Results Review - Elevated CTI Level Disappoints: Centrum Broking

Run-down of infrastructure loans continue with stable asset quality.

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