IDFC First Bank shares hit 52-week low, here's what analysts say
IDFC First Bank Q3 earnings: IDFC First Bank reported a better-than-expected credit quality in Q3FY25 with slippage up only 8% QoQ.
- Jan 27, 2025,
- Updated Jan 27, 2025 6:22 PM IST
Shares of IDFC First Bank Ltd fell to a fresh 52-week low on Monday after the lender reported its Q3 earnings. IDFC First Bank stock slipped 5.58% to Rs 58.71 today. Total 19.42 lakh shares of the firm changed hands amounting to a turnover of Rs 11.51 crore. Market cap of the bank stood at Rs 43,037 crore on BSE.
Jefferies maintained its Buy call on IDFC First Bank with a target of Rs 73 per share post Q3 earnings. The global brokerage noted a 53% fall in profit in Q3 which missed estimates. Slower revenue growth & rise in credit costs dragged profit. MFI continued to drag earnings and Jefferies sees pain continuing for 2-3 quarters. Other segments were stable on quality said the brokerage adding that weaker revenue growth for FY26.
IDFC First Bank reported a better-than-expected credit quality in Q3FY25 with slippage up only 8% QoQ versus our estimate of 15% and non-MFI slippage staying almost flat QoQ, outpacing peers, said brokerage Nuvama.
"We are cutting EPS estimates sharply to reflect higher credit cost/opex for FY25E and slower revenue growth with higher credit cost for FY26E. Maintain ‘HOLD’ as we await more data on MFI stress and opex," added Nuvama
IDFC First Bank stock has fallen 27.68% from its 52 week high till date.
IDFC First Bank stock has lost 22 per cent in a year and fell 17.69 per cent in six months. In terms of technicals, the relative strength index (RSI) of the banking stock stands at 43.2, signaling the stock is neither oversold nor overbought. IDFC First Bank shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
IDFC First Bank reported a 53% year-on-year fall in net profit for the third quarter, on account of higher provisions. Net profit stood at Rs 339 crore in the third quarter against Rs 716 crore in the year ago period.
"The profit was largely impacted by reduced income from slowing down disbursal of micro-finance loans, increase in provisions on micro-finance and normalization of credit costs of non-microfinance business," the bank said.
Provisions in the December quarter rose to Rs 1,338 crore compared to Rs 655 crore in the year-ago quarter, led by higher slippages in the microfinance book. The lender said provisions were stable for the non-microfinance portfolio.
Operating profit in Q3 rose 13% to Rs 1759 crore compared to Rs 1563 crore in the year ago-period. Net interest income grew 14% year-on-year at Rs 4,902 crore.
Gross non-performing assets ratio worsened to 1.94% as of December 31, 2024 against 2.04% a year ago. Net NPAs were at 0.52% compared to 0.68%. Excluding microfinance business, the GNPA was at 1.81%.
The lender's loans and advances expanded by 22% year-on-year to Rs 2.31 lakh crore at the end of December. Deposits grew 29% to Rs 2.27 lakh crore with the low-cost current and savings account ratio sustaining at 48%.
Shares of IDFC First Bank Ltd fell to a fresh 52-week low on Monday after the lender reported its Q3 earnings. IDFC First Bank stock slipped 5.58% to Rs 58.71 today. Total 19.42 lakh shares of the firm changed hands amounting to a turnover of Rs 11.51 crore. Market cap of the bank stood at Rs 43,037 crore on BSE.
Jefferies maintained its Buy call on IDFC First Bank with a target of Rs 73 per share post Q3 earnings. The global brokerage noted a 53% fall in profit in Q3 which missed estimates. Slower revenue growth & rise in credit costs dragged profit. MFI continued to drag earnings and Jefferies sees pain continuing for 2-3 quarters. Other segments were stable on quality said the brokerage adding that weaker revenue growth for FY26.
IDFC First Bank reported a better-than-expected credit quality in Q3FY25 with slippage up only 8% QoQ versus our estimate of 15% and non-MFI slippage staying almost flat QoQ, outpacing peers, said brokerage Nuvama.
"We are cutting EPS estimates sharply to reflect higher credit cost/opex for FY25E and slower revenue growth with higher credit cost for FY26E. Maintain ‘HOLD’ as we await more data on MFI stress and opex," added Nuvama
IDFC First Bank stock has fallen 27.68% from its 52 week high till date.
IDFC First Bank stock has lost 22 per cent in a year and fell 17.69 per cent in six months. In terms of technicals, the relative strength index (RSI) of the banking stock stands at 43.2, signaling the stock is neither oversold nor overbought. IDFC First Bank shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
IDFC First Bank reported a 53% year-on-year fall in net profit for the third quarter, on account of higher provisions. Net profit stood at Rs 339 crore in the third quarter against Rs 716 crore in the year ago period.
"The profit was largely impacted by reduced income from slowing down disbursal of micro-finance loans, increase in provisions on micro-finance and normalization of credit costs of non-microfinance business," the bank said.
Provisions in the December quarter rose to Rs 1,338 crore compared to Rs 655 crore in the year-ago quarter, led by higher slippages in the microfinance book. The lender said provisions were stable for the non-microfinance portfolio.
Operating profit in Q3 rose 13% to Rs 1759 crore compared to Rs 1563 crore in the year ago-period. Net interest income grew 14% year-on-year at Rs 4,902 crore.
Gross non-performing assets ratio worsened to 1.94% as of December 31, 2024 against 2.04% a year ago. Net NPAs were at 0.52% compared to 0.68%. Excluding microfinance business, the GNPA was at 1.81%.
The lender's loans and advances expanded by 22% year-on-year to Rs 2.31 lakh crore at the end of December. Deposits grew 29% to Rs 2.27 lakh crore with the low-cost current and savings account ratio sustaining at 48%.