IDFC First Bank shares saw a decline of more than 9% in early trading today on October 28. However, with the recovery in the market, this stock is also seeing improvement from the day’s low levels. The company had recently released the results of the second quarter, after which this decline is being seen in the stock. IDFC First Bank stock has fallen by 73% amid the July-September quarter.
The net profit of the bank stood at RS 200.7 crore, which was around RS 751 crore in the same quarter a year ago. The net interest income (NII) of the bank has declined from ₹ 4,788 crore to ₹ 3,950 crore on an annual basis. The bank’s arrangement in the moment quarter stood at ₹1,732 crore. The bank made provisions for Q2FY25 at RS 1,732 crore, mainly due to prudent provision buffer of RS 568 crore.
Management said
Around 9.15 am, shares of IDFC First Bank were trading at RS 59.79, down 8.9%. So far this year, its stock has fallen by more than 30 percent. It has been reduced from RS to RS 60. The brokerage said that the asset quality of the MFI segment has declined, but its numbers in the rest of the segments are better than the industry and have improved on a quarterly basis.
At the same time, Motilal Oswal has reiterated its neutral rating on this stock and has also maintained its target price of RS 73. “IDFC First Bank’s NIM declined by 0.4 per cent quarter-on-quarter,” the brokerage said. However, operating expenses remained in line with our expectations; This brought some relief to the C/I ratio. On the business front, deposits remained bullish whereas CASA mix also improved.”
