IDFC First Bank Ltd., incorporated in the year 2014, is a banking company (having a market cap of Rs 35829.95 Crore).
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 4834.19 Crore, down -.03 % from last quarter Total Income of Rs 4835.86 Crore and up 6.17 % from last year same quarter Total Income of Rs 4553.07 Crore. The bank reported net profit after tax of Rs 136.93 Crore in latest quarter.
Investment Rationale
Current return profile is dragged by high-cost structure, low fee income and elevated credit cost. Nonetheless, its marginal unit economics is superior and incremental retail disbursements have potential RoE of >20%. Going forward, key triggers for RoE improvement would be normalisation of cost to income ratio, retail fee income scale-up, and steady improvement in NIM trajectory. Key risks would be sustenance of cutting edge execution of stated strategy and elevated ‘cost to income’.
Promoter/FII Holdings
Promoters held 40 per cent stake in the company as of March 31, 2021, while FIIs held 11.9 per cent, DIIs 10.5 per cent and public and others 36.9 per cent.
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