IDFC First Bank Ltd., incorporated in the year 2014, is a banking company (having a market cap of Rs 31619.64 Crore).
IDFC First Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 4830.14 Crore, down -2.18 % from last quarter Total Income of Rs 4938.03 Crore and up 18.35 % from last year same quarter Total Income of Rs 4081.34 Crore. The bank reported net profit after tax of Rs 110.95 Crore in latest quarter.
Investment Rationale
Bank has shown improvement in key business figures including margins and lending mix which is positive for the long term. Management is also confident on business growth as economic activities started picking momentum. Improvement in asset quality is visible along with better collection efficiency. Management expects to bring down GNPA to 2% and NNPA to 1%. However, low PCR and high slippages remains a concern in near term. It therefore assigns an Accumulate rating on the stock with a target price of Rs.58 based on 1.9x FY23 Adj BVPS.
Promoter/FII Holdings
Promoters held 36.52 per cent stake in the company as of 30-Sep-2021, while FIIs owned 20.68 per cent, DIIs 4.26 per cent.
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