IDFCFIRSTB

Despite healthy balance sheet growth, higher provisioning led to a 58% y/y fall in IDFC First Bank’s PAT. Microfinance credit costs have peaked for the year. We value the bank at 1.2x FY27e PBV and retain a Buy rating, primarily led by the higher balance sheet growth, strong NIM and improving operating ***** TP of Rs 77 stems from the two-stage DDM model. This implies a ~1.2x P/BV multiple (1.2x earlier) on its FY27e book.