IDFC First Bank Rises 3%, Trades Near 52-Week Peak

Synopsis

shares advanced nearly 3% to ₹87.77 in Wednesday’s intraday session, approaching their 52-week high of ₹88.70. The stock gained after a brokerage upgraded its rating to Buy from Neutral, with a target price of ₹105. Analysts highlighted improvements in the bank’s internal controls and governance practices, along with a recent reduction in credit-cost guidance, pointing to better asset-quality trends. Over the last three years, advances and deposits have recorded CAGRs of 21% and 26%, respectively. Faster deposit growth helped bring the credit-deposit ratio down to 94% from 108% in FY23. The $3.57 billion FCNR(B) deposit mobilisation could exert some pressure on net interest margins due to associated leverage, while lower savings-account and term-deposit rates may help cushion the impact. Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.