IDFC First Bank rallies 11% in two days on strong retail loan growth in Q3

Motilal Oswal Financial Services believe the strong traction in retail loans was aided by festive demand and an improved economic outlook

Shares of IDFC First Bank moved higher by 7 per cent to Rs 44.20 on the BSE on Thursday, gaining 11 per cent in the past two trading days, after the bank reported strong retail loan growth during October-December quarter (Q3FY21). The stock of the private sector lender was trading close to its 52-week high level of Rs 45.50 touched on January 15, 2020.

While overall funded assets of the bank increased 0.7 per cent year on year (YoY) to Rs 1.10 trillion in Q3FY21, retail assets grew 24 per cent YoY (11 per cent quarter on quarter(QoQ)) to Rs 66,635