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Stay 'Neutral' On IDFC First Bank Shares Retains Motilal Oswal — Here's Why
Execution on cost-income reduction, sustained asset quality improvement, reduction in credit costs and steady NIMs are key upside catalysts, adds Motilal Oswal
29 Sep 2025, 09:40 AM IST 
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IDFC First Bank reported NIMs of 5.71% in Q1 FY26, down 24bp QoQ, led by MFI shrinkage, repo pass-through, and a higher wholesale mix. (Photo Source: NDTV Profit).
IDFC First Bank has realigned its liability mix in favor of deposits, thereby reducing the credit-deposit ratio from a peak of 137% in Dec’18 to 93.4% in Q1 FY26. Management expects a CD ratio of ~90% by year-end and late 80s in the coming years, a key milestone for sustainable growth.
