Banks
IDFC FIRST BANK is a prominent Private Sector Bank in India, identifiable by its stock ticker IDFCFIRSTB, and has a market capitalization of approximately Rs. 41,973.2 Crores.
The bank provides a wide array of banking and financial services tailored for various clients, including corporates, individuals, multi-national companies, SMEs/entrepreneurs, financial institutions, and the government. Its operations are structured into four main segments:
IDFC FIRST BANK offers a comprehensive suite of services:
Banking Services: Acceptance of savings, corporate salary, current, business, and nostro/vostro accounts, as well as fixed and recurring deposits.
Cards and Payments: Provision of debit, credit, and prepaid cards, along with payment services.
Loans: The bank provides a diverse range of loans including:
Supply Chain Financing: Products such as trade finance, vendor and dealer finance, and factoring/receivables purchase.
Investment and Wealth Management: Investment services, including mutual funds, gold bonds, demat and trading accounts, and investment-linked insurance solutions.
Insurance Products: Distribution of various insurance products such as life, general, health, motor, travel, and pension plans.
Additional Services: Safe deposit lockers, overdrafts, mobile and Internet banking, cash management, escrow services, and NRI banking services.
Founded in 1997 and headquartered in Mumbai, India, IDFC FIRST BANK was previously known as IDFC Bank Limited before it rebranded in January 2019.
In terms of financial performance, the bank has shown considerable growth, recording a revenue of approximately Rs. 42,032.4 Crores over the trailing 12 months, with a significant revenue growth of 112.3% over the past three years. However, it is noted that in this same period, the company's shareholding structure has diluted by 17.8%.
Summary of IDFC FIRST BANK's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: May 25
The management's outlook for IDFC FIRST Bank is centered around sustainable growth and profitability, particularly focusing on improving return on equity (ROE) and mitigating credit costs in the microfinance segment. The bank aims to achieve a ROE of 15-16% in the coming years, highlighting a target of transitioning from the current 7% to 15%.
Management provided the following forward-looking points:
In summary, the management is focused on building a strong foundation for sustainable growth by systematically improving profitability ratios while enhancing operational efficiency.
Last updated: May 25
Question 1: "Post the implementation of new microfinance guardrails, would you be able to provide some color on how the business trends have changed on the ground, either in terms of the approval rates, disbursements, collection efficiencies?"
Answer: The new MFIN guidelines, effective since February, led to a decrease in disbursements, dropping to about Rs. 760 crores this quarter. Since we've implemented these guidelines early, we don't anticipate further impact going forward.
Question 2: "What's our blended SA rate now?"
Answer: Our blended savings account rate for Q4 FY25 sits at about 5.9%. We've already made adjustments in February, and additional cuts in SA rates will follow soon, mainly targeting the higher balance accounts.
Question 3: "What should we expect for credit costs for FY26?"
Answer: Our credit cost for FY25 was 2.46%, heavily influenced by the microfinance sector. Excluding this, it was around 1.76%. For FY26, we anticipate credit costs to decrease to about 1.85% to 1.90%, reflecting improved conditions.
Question 4: "Given our CD ratio at 93%, what are we targeting for growth?"
Answer: We aim for growth in the range of 20% moving forward. After capital raises, we want to maintain this trajectory, ensuring consistency without straining our credit norms or being overly aggressive.
Question 5: "How should we think about operating expenses as we plan for longer-term growth?"
Answer: We expect operating expenses to grow by only 12% to 13% over the next two years, balancing this with our loan book growth of around 20%. Our focus is on efficiency through technology and operational cost reductions, ensuring sustainable growth.
Updated May 5, 2025
IDFC First Bank reported a 58% year-on-year drop in Q4FY25 net profit to ₹304 crore, missing market expectations.
The bank's net interest income growth was the lowest in 22 quarters, indicating underlying operational difficulties.
IDFC First Bank shares declined by 4.1% amid news of a board-approved capital raise of up to ₹7,500 crore.
IDFC First Bank's share price increased by 2% today following Warburg Pincus's move to acquire a 9.99% stake in the bank.
Anand Rathi maintained a Buy rating for IDFC First Bank, citing strong balance sheet growth and an improved operating leverage.
Despite challenges, IDFC First Bank plans to target a 20% growth in its loan book and a 22-23% increase in deposits for FY26.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Balance Sheet: Strong Balance Sheet.
Growth: Awesome revenue growth! Revenue grew 19.9% over last year and 113.6% in last three years on TTM basis.
Size: It is among the top 200 market size companies of india.
Dilution: Company has a tendency to dilute it's stock investors.
Dividend: Stock hasn't been paying any dividend.
Momentum: Stock has a weak negative price momentum.
Comprehensive comparison against sector averages
IDFCFIRSTB metrics compared to Banks
Category | IDFCFIRSTB | Banks |
---|---|---|
PE | 34.82 | 17.49 |
PS | 1.19 | 2.77 |
Growth | 19.9 % | 16.2 % |
IDFCFIRSTB vs Banks (2021 - 2025)
Analysis of IDFC FIRST BANK's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Mar 31, 2025
Description | Share | Value |
---|---|---|
Retail Banking | 55.7% | 12.2 kCr |
Treasury | 31.3% | 6.8 kCr |
Wholesale Banking | 11.5% | 2.5 kCr |
Other Banking Business | 1.6% | 340.1 Cr |
Total | 21.9 kCr |
Understand IDFC FIRST BANK ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
PRESIDENT OF INDIA | 9.1% |
ODYSSEY 44 A S | 3.69% |
LIFE INSURANCE CORPORATION OF INDIA - ULIF00520091 | 2.76% |
HDFC LIFE INSURANCE COMPANY LIMITED | 2.37% |
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED | 2.33% |
GQG PARTNERS EMERGING MARKETS EQUITY FUND | 1.69% |
TATA MID CAP GROWTH FUND | 1.59% |
ASHISH DHAWAN | 1.26% |
KOTAK MAHINDRA TRUSTEE CO LTD A/C KOTAK NIFTY MIDC | 1.14% |
TATA AIA LIFE INSURANCE COMPANY LIMITED A/C EMERGI | 1.06% |
TATA INDIAN OPPORTUNITIES FUND | 1.02% |
Distribution across major stakeholders
Distribution across major institutional holders
Allotment of ESOP / ESPS • 10 Jun 2025 Allotment of 25,16,455 Equity Shares pursuant to exercise of ESOP. |
General • 04 Jun 2025 In continuation with our earlier stock exchange release on the subject, we wish to inform that Currant Sea Investments B.V. has received the approval of CCI with respect to its proposed .... |
Reg.24(A)-Annual Secretarial Compliance • 30 May 2025 Please find enclosed Annual Secretarial Compliance report for the year ended March 31, 2025 |
General • 28 May 2025 Kindly refer the enclosed intimation regarding Schedule of Institutional Investor Meeting. |
Allotment of ESOP / ESPS • 23 May 2025 Allotment of 40,05,499 Equity Shares pursuant to exercise of ESOP. |
General • 20 May 2025 Kindly refer the enclosed attachment. |
Credit Rating • 17 May 2025 Credit Rating re-affirmed by ICRA |
Investor Care | |
---|---|
Shares Dilution (1Y) | 3.57% |
Diluted EPS (TTM) | 2.04 |
Financial Health | |
---|---|
Debt/Equity | 0.00 |
Debt/Cashflow | 0.00 |
Valuation | |
---|---|
Market Cap | 51.25 kCr |
Price/Earnings (Trailing) | 34.39 |
Price/Sales (Trailing) | 1.18 |
EV/EBITDA | 2.69 |
Price/Free Cashflow | 3.54 |
MarketCap/EBT | 27.49 |
Fundamentals | |
---|---|
Revenue (TTM) | 43.48 kCr |
Rev. Growth (Yr) | 14.66% |
Rev. Growth (Qtr) | 1.67% |
Earnings (TTM) | 1.49 kCr |
Earnings Growth (Yr) | -59.61% |
Earnings Growth (Qtr) | -13.1% |
Profitability | |
---|---|
Operating Margin | 16.97% |
EBT Margin | 4.29% |
Return on Equity | 0.43% |
Return on Assets | 0.00% |
Free Cashflow Yield | 28.23% |
Detailed comparison of IDFC FIRST BANK against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
HDFCBANK | HDFC BankPrivate Sector Bank | 14.67 LCr | 4.71 LCr | -0.34% | +20.74% | 20.33 | 3.12 | +15.42% | +10.96% |
ICICIBANK | ICICI BankPrivate Sector Bank | 10.14 LCr | 2.95 LCr | -2.08% | +28.77% | 18.63 | 3.44 | +24.81% | +20.91% |
KOTAKBANK | Kotak Mahindra BankPrivate Sector Bank | 4.25 LCr | 1.03 LCr | +1.36% | +24.44% | 19.36 | 4.12 | +9.34% | +22.08% |
AXISBANK | AXIS BankPrivate Sector Bank | 3.73 LCr | 1.56 LCr | +0.52% | +2.88% | 13.29 | 2.4 | +12.99% | +6.39% |
INDUSINDBK | IndusInd BankPrivate Sector Bank | 63.13 kCr | 59.72 kCr | +3.86% | -46.06% | 8.7 | 1.06 | +13.51% | -16.35% |