IDFC First Bank Gains 3%, Nears 52-Week High

Synopsis

k shares climbed nearly 3% to ₹87.77 during Wednesday’s intraday trade, moving closer to their 52-week high of ₹88.70. The stock gained after a brokerage upgraded its rating to Buy . Analysts noted that the bank has strengthened its internal controls and governance framework and recently reduced its credit-cost guidance, reflecting improving asset-quality trends. Over the past three years, the bank’s advances and deposits have grown at CAGRs of 21% and 26%, respectively. Deposit growth has outpaced loan growth, helping the credit-deposit ratio decline to 94% from 108% in FY23. Analysts also estimated that leverage on the $3.57 billion FCNR(B) deposits could put some pressure on net interest margins, although lower savings and term-deposit rates may partly offset the impact. Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.