The 9 reports from 4 analysts offering long term price targets
for IDFC First Bank Ltd. have an average target of 22.50. The consensus estimate
represents a downside of -20.35%
from the last price of 28.25.
Net Interest Income (NII) reported a growth of 13% on a YoY basis, and Net Interest Margin (NIM) improved to 4.24% in Q4FY20, compared to 3.86% in the previous quarter. Currently Gross/Net NPA stands at 2.60%/0.94% compared to 2.83%/1.23% in Q3FY20. Provision coverage ratio improved for the quarter to 64.53% compared to 57.34% in Q3FY20. We have lowered our advances growth estimates by 13% each for FY21E and FY22E due to Covid 19 pandemic....
loans. Few upsides in Q4 were (i) strong CASA growth of 27% QoQ moving up the ratio to 31.7%, up 810bps QoQ (ii) 40bps QoQ of NIM improvement to 4.24% led by continued mix change towards retail (grew 40% YoY) plus improvement in cost of funds due to sharp decline in bulk deposits replaced by retail and (iii) asset quality has held up especially in retail. Some niggling issues that will keep ROEs in lackluster are (i)steady asset growth as bank continues to adjust wholesale liabilities & assets, (ii)continued opex/assets on high retail focus and (iii)COVID impact on asset quality. may keep ROEs...
The bank had earlier provided with a watch list comprising stressed exposures. Total exposure to this stressed pool has reduced by | 313 crore QoQ at | 3205 crore with provision cover of ~49%, being maintained. Apart from this, it has provided 50% for telecom exposure worth | 3244 crore. With continued focus on balance sheet restructuring funded asset remained broadly stable at | 107400 crore. Within the same, wholesale book, as targeted, de-grew ~11% QoQ to | 39388 crore (infrastructure exposure declined 5% QoQ, corporate fell 15% QOQ). Retail book continued to grow...
In an exchange notification, IDFC First Bank has informed exchanges that its board has approved raising of | 2000 crore equity capital by issuing ~86.24 crore shares through preferential route at | 23.19/share. Promoter IDFC Ltd will subscribe to ~34.5 crore shares maintaining its holding at 40%. Other investors include ICICI Prudential Life Insurance (~25.87 crore shares), HDFC Life Insurance (~8.6 crore shares), Bajaj Allianz Life Insurance (~8.6 crore shares) and Dayside Investment, an affiliated entity...
Net Interest Income (NII) has grown by 12.6% on a sequential basis, with Net Interest Margin (NIM) improved to 3.86%, compared to 3.01% in the previous quarter. Currently Gross/Net NPA stands at 2.83%/1.23% compared to 2.62%/1.17% in Q2FY20, while 7x sequential increase in provisions has pulled down the net income for the quarter. The cost to income (C/I) ratio stood at 73.52% in Q3FY20. We expect loans & advances to grow at a CAGR of 18% over FY20E22E and NII to grow at a CAGR of 35% over the same period....
Led by stress within legacy book, GNPA ratio increased 21 bps QoQ to 2.83% though retail GNPA remained stable at ~2.26%. The bank has provided a watchlist of legacy exposure towards various sectors i.e. financial, logistic, infrastructure, energy & telecom encompassing total exposure at ~| 6700 crore (including | 3245 crore to one telecom account). The management through its prudent approach has maintained ~51% PCR on watchlist. It is confident that major part of stress within legacy book has...
New merged entity - to ramp up retail loan assets IDFC First Bank is founded by the merger of erstwhile IDFC Bank and erstwhile Capital First on December 18, 2018. At present, the bank's...
IDFC First Bank has walked a long path of transformation starting from infrastructure finance NBFC to universal bank. To strengthen retail franchise, IDFC Bank & Capital First Ltd engaged into a merger to form IDFC First Bank in December 2018. The merged entity is the eighth largest private bank with funded asset at ~| 112558 crore (retail: wholesale 40:60) as of March 2019 and wide customer base of ~70 lakh. It is being headed by V Vaidyanathan, who has a proven track record at Capital First. IDFC First Bank has a pan...
IDFCBK's earnings were below estimates on back of hit from onetime additional provisioningof3.1bnonreviewofstressedassetsvalueanddragonspreadsfrom traditionalbalancesheetitems.Loanbookgrowthwasbetterwithstronggrowth in retail segment (+1x in many segments) and derisking from running down infrastructure book. Stressed assets continued to be stable but bank added additional provisioning to improve the PCR. Bank believes although there is no incremental addition to stressed asset from revised stress asset framework but wouldseesomeprovisioningimpact.Bank'sretailfranchiseisgatheringpaceand...
Broad contours of merger: (i) Swap ratio of 139:10 with IDFCBK share for CAFL share implying a premium for capital first (ii) Merger to take 910 months for completionforvariousapprovalstobeinplace(iii)IDFCBKshareholderswillsee dilution of 40% and IDFC Ltd promoter will see 21% dilution bringing their shareholding below 37.8% and hence IDFC will seek RBI permission to buy 2% additional stake from market pre or postmerger and (iv) Combined customer...
IDFCBK's earnings were higher than estimates on higher treasury income booked during the quarter of Rs4.5bn almost contributing to entire amount of PAT of Rs4.37bn.Assetqualitydeterioratedonthebackofoneaccountfromrestructured slipping to NPA, but bank had no provisioning impact on P&L; as it was already provided for during the formation of bank. Also, PPOP miss was largely on high opexgrowthof40%YoY.Bank'sretailfranchisecontinuestoimprovebutstillon slower pace, while margins remain under pressure on corporate book lending yieldsandwillcontinuetodosogoingahead.Marginpressure,lowerloangrowth...
IDFC and Shriram group announced a 90-day exclusivity period to discuss a merger. The plan is to merge IDFC Bank with Shriram City Union Finance (SCUF); whereas Shriram Transport Finance (SHTF) and other Shriram group entities (life insurance, general insurance, AMC) will be separate subsidiaries of..
Demerged from IDFC, IDFC bank has formed and forayed into banking business from 2015. It has started its journey by launching 23 branches across India on October 2015. Since 2015, IDFC Bank has expanded its branches and took the total number of branches to over 300, having presence in 20 states and servicing to 1.4 million customers. On 6th November 2015, IDFC bank shares were listed in Indian bourses and paved the way for the investors to unlock the value of their investments. The bank is equipped with professional management...
Inline performance: Bank earnings performance was inline with NII growth of 20.5%YoY.Marginscontinuedtobeunderpressurewith10bpsdeclineQoQto2.0% whichwasonthebackofdragfromPSL&acquiredloan.Staffcostwasloweras...
book (lending post conversion). Business growth was quite tepid on certain pre payments in corporate book but bank has been participating in lending through bondmarket,whileindepositsCASAcameoffto3.3%from7.8%assomelumpyCA went off from last quarter. We have changed our estimates to factor in better NIMs,higherotherincomebutoffsetbyhigheropexandcreditcost.Wemaintain...
Valuation: Overall, the results were not exciting, the branch additions for the next six months are also expected to be muted. We believe there is no near termtriggerandwehaverevisedtheearningsupwardtoreflectthelowercost...
