IDFC First Bank Share Price: Share became rocket after record profit, now know how much return will you get?

Business Desk – IDFC First Bank Share Price: After the excellent June quarter (Q1 FY27) results of IDFC First Bank, strong buying was seen in the bank’s shares on Monday. The stock jumped more than 9 percent during trading. For the first time, the bank has registered a profit of more than Rs 1000 crore in a quarter.

Along with this, there was a big improvement in asset quality and the NPA of the bank reached a record low level. After the strong results, the management of the bank has also shared the growth outlook for the coming financial year, while many brokerage houses have also increased their targets on the stock.

Quarterly profit crossed Rs 1000 crore for the first time

IDFC First Bank Chief Financial Officer (CFO) Sudhanshu Jain said that the June quarter was very good for the bank. For the first time, the quarterly net profit of the bank has crossed Rs 1000 crore. The bank’s Return on Assets (RoA) has increased to 1.06 percent and is expected to be around 1 percent in FY 2027.

He said that the pre-provision operating profit (PPOP) growth of the bank has consistently remained above 30 percent. Besides, there is a continuous decline in provisions, which has boosted profits.

Big improvement in NIM and asset quality also

According to Sudhanshu Jain, the bank’s core net interest margin (NIM) increased by 20 basis points to 5.9 percent in the June quarter. Even on a quarterly basis, an improvement of 5 basis points was recorded. The bank expects NIM to be around 5.8 percent for the entire financial year 2027.

He said that the credit cost of the bank is continuously decreasing and it is expected to remain between 1.5 to 1.6 percent for the whole year.

Deposit and loan growth expected to be more than 20 percent

Bank management says that business momentum remains strong and deposit and loan growth is likely to be more than 20 percent in FY 2027.

Sudhanshu Jain said that geopolitical tension does not seem to have much impact on the bank’s business. However, in view of the weak monsoon, caution is being exercised in some segments.

He said that bank deposits have increased by 6 percent on a quarterly basis. The wholesale banking segment is witnessing strong growth on an annual basis. The bank believes that there is still a lot of scope for expansion in this segment.

MFI business back on track

According to the management, the micro finance (MFI) segment has now become quite stable. There were challenges in this business last year, but now the situation is better. The bank expects the MFI portfolio to grow at the rate of 15 to 20 percent in the entire financial year 2027.

Apart from this, the bank will focus more on secured loans, business banking and mortgage business in the coming times. Operating leverage is also expected to continue to improve and credit costs to decline.

Expert said- Share can become today’s hero

CNBC-Awaaz Managing Editor Anuj Singhal said that both the bank’s quarterly results and management’s guidance are very strong. He believes that if the market environment remains favourable, this stock can become the best performing stock of the day. He said that after the Chandigarh case, the stock had fallen significantly, due to which its valuation has become attractive.

In Q1, the bank’s PAT increased by 132 percent, Net Interest Income (NII) increased by 21 percent. Whereas NIM increased by 25 basis points to 5.96 percent. The loan growth of the bank has been 20 percent, deposit growth has been 18 percent and CASA has increased by 25 percent. Also NPA has reached record low level.

CLSA increased the target, gave ‘Outperform’ rating

Brokerage firm CLSA has increased the rating of IDFC First Bank from ‘Hold’ to ‘Outperform’. Also, the target of the share has been increased from Rs 73 to Rs 95. A possible increase of about 19 percent has been reported from the current level.

CLSA says that the bank has made a great comeback after the Haryana incident. Deposits have grown 18 per cent compared to last year, while the CASA ratio has increased by nearly 300 basis points to 51 per cent, among the highest levels in the industry. The brokerage also cited improvement in asset quality and reduction in slippage as a big positive sign.

Nomura also increased the price target

Global brokerage Nomura has increased the price target of IDFC First Bank from Rs 85 to Rs 95 after strong June quarter results. Also, EPS estimates for financial years 2027 and 2028 have been increased by 9 percent and 17 percent respectively.

Investec gave the highest target

Brokerage firm Investec appeared most bullish on IDFC First Bank. The company has increased the share target from Rs 96 to Rs 115. Investec is among the few brokerages that have given a target of more than Rs 100 for this stock.

The brokerage believes that the bank’s improving asset quality, falling credit cost and strong growth can take the share price further higher in the future.