IDFC First Bank Shares Rise Over 6% On Robust Q4 Update; Should You Invest? – News18
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Shares of IDFC First Bank jumped more than 6% on Thursday, April 3, following the lender’s robust fourth-quarter business update
IDFC First Bank Shares
IDFC First Bank Share Price: Shares of IDFC First Bank jumped more than 6% on Thursday, April 3, following the lender’s robust fourth-quarter business update.
The bank’s total deposits surged 22.7% year-over-year to Rs 4.84 lakh crore in the March quarter, up from Rs 3.94 lakh crore a year ago.
Loans and advances rose 20.3% to Rs 2.41 lakh crore compared to Rs 2 lakh crore in the previous year, marking a 4.7% sequential increase.
Customer deposits grew 25.2% year-over-year to Rs 2.42 lakh crore from Rs 1.93 lakh crore, with a 6.7% increase on a sequential basis. Meanwhile, current account and savings account (CASA) deposits climbed 24.8% to Rs 1.18 lakh crore from Rs 94,768 crore last year, registering a 4.6% sequential rise.
The CASA ratio stood at 46.9%, slightly lower than 47.2% a year ago and 47.7% in the previous quarter.
The lender’s credit-to-deposit ratio declined to 93.8% in the March quarter from 98.4% in the prior year and 95.7% in the previous quarter. IDFC First Bank highlighted its ongoing efforts to reduce this ratio since its merger with Capital First in December 2018 by retiring legacy bonds and borrowings while strengthening retail customer deposits.
Should You Buy IDFC First Bank Shares?
Sumeet Bagadia, Executive Director at Choice Broking, believes IDFC First Bank is on the verge of a technical breakout at Rs 60.
“If the stock decisively breaks above Rs 60 on a closing basis, we could see it reaching Rs 70 soon. Existing shareholders should hold their positions with a stop loss at Rs 55. Fresh investors can consider buying at the current market price with a near-term target of Rs 70, while maintaining a stop loss at Rs 55,” Bagadia advised.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
