IDFC First Bank hits 52-week high; soars 6% on two-fold jump in Q4 net

The bank's Q4 net zoomed 134 per cent to Rs 802.62 crore from Rs 342.73 crore in the year ago period.

IDFC First Bank surged nearly 6 per cent to a high of Rs 65.20 on heavy volume in Tuesday's intra-day trades on the back of over 100 per cent jump in Q4 net profit.

At 10:10 AM, the stock was up 3.8 per cent at Rs 63.90, backed by trades of around 43.11 lakh shares as against the two-week average volume of around 26.80 lakh shares on the BSE. Meanwhile, the S&P BSE Sensex was up 0.6 per cent at 61,450.

Last month, the stock rallied over 11.5 per cent, while the BSE benchmark gained around 4 per cent.

For the quarter ended March 2023, IDFC First Bank reported a strong 134.2 per cent surge in Q4 net profit to Rs 802.62 crore when compared with Rs 342.73 crore in the corresponding quarter a year ago. Total income grew by 45.3 per cent YoY to Rs 7,821.83 crore.

Going ahead, IDFC First Bank expects net interest margin (NIM) to trend down and stay between 5-5.5 per cent band in this financial year and next. Its margins stood at 6.05 per cent in the fourth quarter of FY23 (Q4FY23). 

V Vaidyanathan, IDFC First's managing director and chief executive, told Business Standard cost will catch up on the re-pricing of deposits. After repo rate hikes, costs were passed on to customers in FY23. However, the cost to banks did not go up correspondingly. It takes about a year for costs to catch up. The private lender had reported a NIM of 5.96 per cent for FY22. READ MORE

Further, the bank's board has also approved a proposal to borrow funds up to Rs 5,000 crore by way of issue of Debt Instruments including but not limited to Unsecured, Redeemable, Non-Convertible Debentures, Bonds or such other Debt Securities in one or more tranches.