IDFC FIRST BANK LTD
IDFC First Bank is engaged in the business of Banking Services. IDFC FIRST Bank was founded by the merger of Erstwhile IDFC Bank and Erstwhile Capital First on December 18, 2018.
Revenue Breakup
Retail Banking – 57.06%
Treasury- 30.92%
Corporate/Wholesale Banking – 10.65%
Others – 1.37%
Shareholding Pattern
-PUBLIC GROUP
-PROMOTER GROUP
Financial Summary
| Particulars | Mar 2022 | Mar 2023 | Mar 2024 |
| Revenue | 17,173 | 22,728 | 30,325 |
| Interest | 7,465 | 10,091 | 13,870 |
| Expenses | 12,323 | 13,338 | 17,899 |
| Financing Profit | -2,615 | -701 | -1,444 |
| FPM% | -15% | -3% | -5% |
| Net Profit | 132 | 2,485 | 2,942 |
| EPS in Rs | 0.21 | 3.75 | 4.16 |
Synopsis Of Financials
- Balance sheet close to Rs. 3 lakh crores with 23.4% growth YoY.
- Strong growth in customer deposits by 42% YoY.
- CASA ratio maintained at 46.5% excluding short-term flow.
- Repayment of high-cost legacy borrowings leading to lower costs.
- Profit for the year up by 21% at Rs. 2,957 crores.
- Healthy asset quality with GNPA below 2% and net NPA at 0.6%.
- Strong growth in net interest income and fee income.
- Operating expenses increased by 33% YoY, driven by business volumes and expansion.
- Credit cost expected to normalize around 1.65% next year.
- Capital adequacy at 16.11% with LCR at 118%.
Final Outlook
Fundamental Analysis
Net Profit Growth: In Q2 FY2024, net profit rose to ₹751 crore, showcasing robust growth due to lower provisioning and improved interest income.
Net Interest Margin (NIM): 6.5%, reflecting strong core profitability.
Gross NPA/Net NPA: At 2.06% and 0.6%, respectively, the bank has maintained asset quality.
2. Balance Sheet Strength:
Capital Adequacy Ratio (CAR): 16%, indicating a well-capitalized position to support credit growth.
CASA Ratio: 50.8%, among the best in the industry, reflecting low-cost deposits.
3. Growth Drivers:
Expansion in retail lending and increased penetration in rural areas.
Strength in digital transformation and higher fee-based income.
4. Valuation Metrics:
P/BV: 1.7x, relatively attractive compared to peers like AU Small Finance Bank (3.3x).
P/E: 25.4x, suggesting the stock is fairly priced considering its growth trajectory.
IDFC First Bank is fundamentally strong, with improving profitability, sound asset quality, and a focus on retail lending. Its CASA ratio and NIM are among the best in the industry, positioning it well for sustained growth.
I would give Buy recommendation for this stock.
IDFC-First-Bank-Ltd
