High investor interest propels IDFC First Bank's stock to new highs

Lender's financial performance has been robust but high valuations may cap further gains

IDFC First Bank is one among several private banks that seems to have attracted investor interest with the share price rising 158 per cent in one year. A key reason for these gains is robust performance.

In Q4 FY23, Net Interest Income (NII) reported growth of 35 per cent on a year-on-year (YoY) basis and 10 per cent sequentially, displaying business momentum and margin expansion. Interest income grew by 41 per cent YoY and 9 per cent quarter-on-quarter (QoQ). Interest expenses grew by 50 per cent YoY and 8 per cent QoQ. Reported NIM (net interest margin) for Q4 FY23