IDFC First Bank tumbles 3% after Q1 results. Should you buy, sell or hold?
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Shares of IDFC First Bank shares tumbled 3% to its day’s low of Rs 72.31 on Monday, apparently impacted by its first quarter results. Its standalone net profit fell 11% year-on-year (YoY) to Rs 680.65 crore due to increased provisions in JLG (joint liability group) business following floods in Tamil Nadu. IDFC Bank’s net interest income (NII) during the quarter rose 25.4% to Rs 4,695 crore while interest income jumped 28% to Rs 8,789 crore. The lender's net interest margin (Gross of IBPC and sell-down) reduced from 6.33% in Q1 FY24 to 6.22% in Q1 FY25. Its fee and other income grew 19% YoY from Rs 1,341 crore in Q1 FY24 to Rs 1,595 crore in Q1 FY25. Here is what brokerages say: ICICI Securities: Buy| Target price: Rs 95 IDFC First Bank has reported a broadly in-line set of numbers with strong business growth and better cost income, though higher credit costs (as guided) weighed on PAT (Rs 680 crore) and RoA (down 12bps QoQ to 91bps). ...