IDFC First Bank
IDFCFIRSTB
Quick Bite
Price To Earnings Ratio 16.41 | Sector PE 13.27 |
PB Ratio 1.58 | Sector PB 1.58 |
EPS 3.75 | Dividend Yield 0.00 |
Today's Volume 28.517 M | 5 Day Avg. Volume 32.130 M |
PEG Ratio 0.01 | Market Cap. ₹ 46,410.00 Cr. |
Returns Comparison
| Time | IDFCFIRSTB | VS | Industry |
|---|---|---|---|
| 1 Day | -2.78% | -0.84% | |
| 1 Week | -4.74% | -2.06% | |
| 1 Month | -10.71% | -4.13% | |
| 6 Months | -16.67% | -10.3% | |
| 1 Year | -28.69% | -7.59% |
Technical Trend
Pivot Levels
Moving Averages
| Period (Days) | SMA | Indication |
|---|---|---|
| 10 | 65.2 | Bearish |
| 20 | 66.04 | Bearish |
| 30 | 67.96 | Bearish |
| 50 | 70.03 | Bearish |
| 100 | 72.77 | Bearish |
| 200 | 76.43 | Bearish |
Shareholding Updates
Cash Flow
| Annual | FY 2023 | FY 2022 | FY 2021 | ||||
|---|---|---|---|---|---|---|---|
| Operating Activities | 3563.00 | 2679.13 | 14041.72 | ||||
| Investing Activities | -11995.74 | -2960.47 | -2833.25 | ||||
| Financing Activities | 6509.04 | 10210.59 | -9598.18 | ||||
| Net Cash Flow | -1923.69 | 9929.25 | 1610.28 |
All Figures in ₹ Cr., unless mentioned otherwise
Ratios
Income Statement
Balance Sheet
Peer Comparison
| Name | 1D (%) | 1W (%) | 1M (%) | 6M (%) | 1Y (%) |
|---|---|---|---|---|---|
| IDFC First Bank | -2.78 | -4.74 | -10.71 | -16.67 | -28.69 |
| AU Small Finance Bank | 0.36 | 1.88 | -9.91 | 2.14 | -18.58 |
| Axis Bank | 0.73 | -1.35 | -4.19 | -4.82 | 6.63 |
| Bandhan Bank | -1.25 | -3.27 | -9.06 | -3.92 | -25.55 |
| Bank of Baroda | -3.93 | -9.08 | -7.55 | -18.36 | 20.72 |
About IDFC First Bank
IDFC First Bank Share Price
IDFC First Bank Ltd. Fundamental Analysis
This article examines the business model of IDFC First Bank Ltd., as well as industry fundamentals to determine if this would make a sound investment for you.
IDFC First Bank Limited
IDFC First Bank Limited is an Indian private sector bank that came into existence as a result of the merging of Infrastructure Development Finance Company (IDFC)’s banking arm and Capital First, which is a non-bank financial institution.
IDFC was established in 1997 to finance infrastructure projects in India and later began to operate in asset management, institutional broking, and investment banking sectors. The Reserve Bank of India granted IDFC Limited “in-principle” approval to establish a new bank in the private sector in 2014. After this, IDFC Limited divested its infrastructure finance assets and liabilities to a new entity - IDFC Bank.
The official launch of the bank took place in October 2015 by Prime Minister Narendra Modi of India. It serves companies, people, multinationals, small/medium entrepreneurs, financial institutions and the government of India through a variety of banking and financial products and services. The company operates in four main segments: Retail Banking, Treasury, Corporate & Wholesale Banking, and Other Banking Business.
The bank has developed a strong and robust framework including strong IT capabilities for scaling up the banking operations.
Is the Banking Sector a Goldmine Investment?
The banking sector in India has historically been one of the most stable systems globally, despite global upheavals. It has benefited from high savings rates and growth in savings as well as disposable income growth.
The health of the Indian banking system is solid, fortified by a multi-year low non-performing loans and an adequate level of capital and liquidity buffers. Moreover, the Indian investment banking industry has witnessed substantial growth, driven by solid economic development, increased foreign investments, and a supportive regulatory environment.
The Indian investment banking industry revenue is projected to reach $3.5 billion by 2025, rising at a Compound Annual Growth Rate (CAGR) of 11%. Therefore, considering these factors, the banking sector in India presents a promising investment opportunity.
IDFC First Bank Limited is a good choice for investment. It offers a diverse range of investment products and has a strong technology platform. It also has an aggressive management and is available at reasonable valuations, making it a compelling option for investors.
Who are IDFC Bank Limited competitors in the Banking Sector?
IDFC First Bank Limited operates in a competitive environment in the banking sector. Some of its key competitors include:
- Axis Bank Ltd.
- Bandhan Bank Ltd.
- City Union Bank Ltd.
- CSB Bank Ltd.
- Federal Bank Ltd.
- HDFC Bank Ltd.
- ICICI Bank Ltd.
- IndusInd Bank Ltd.
History of IDFC Bank Limited
Here’s a brief history of IDFC Bank Limited:
- Incorporation: IDFC Bank was incorporated as a wholly-owned subsidiary of IDFC on October 21, 2014. It was created by the demerger of the infrastructure lending business of IDFC to IDFC Bank in 2015. The bank was officially launched in November 2015.
- Product Range: IDFC FIRST Bank offers a wide range of products including Retail, SME, Rural, Corporate, Trade, CMS, Wealth Management, NRI banking and Treasury solutions. It provides customized financial solutions to corporates, individuals, small and micro-enterprises, entrepreneurs, financial institutions.
- Infrastructure: IDFC Bank started operations on October 1, 2015, with 23 branches in various cities in India. It initiated its 100th branch in Honnali, Karnataka, back in October 2017.
- Certifications: IDFC Bank has received several certifications. For instance, it has been registered with the Reserve Bank of India (RBI) as a Non-Banking Financial Company (NBFC). It has also been notified as a Public Financial Institution.
- Awards and Recognition: IDFC FIRST Bank has won numerous awards such as the Golden Peacock Award for ESG (National) for 2023, ‘Best Digital Bank’ at FE India’s Best Banks Awards 2023, and many others.
Company Profile of IDFC Bank Limited
Pros:
- Strong Deposits Franchise: IDFC FIRST Bank has a healthy CASA ratio of 47%, indicating a strong base of low-cost deposits.
- Diversified Loan Book: The bank operates across over 25 business lines, including retail, SME, rural, corporate, trade, wealth management, NRI banking, and more.
- Profitability: In FY24, the bank reported a Profit After Tax (PAT) of Rs. 2,957 crore, up 21% from FY23, demonstrating strong profitability.
- Asset Quality: IDFC FIRST Bank has consistently maintained low GNPA and NNPA for 14 years.
Cons:
- Loan to Deposit Ratio: The bank’s loan to deposit ratio is relatively high, which may impact liquidity management.
- Interest Coverage Ratio: IDFC FIRST Bank has a low interest coverage ratio, which could affect its ability to service debt obligations.
- Return on Equity (ROE): The bank’s ROE over the last 3 years is 8.09%, which is relatively low.
- Dividend Payout: Although the bank reports profits, it has not been consistently paying out dividends.
The Finances
Here’s a summary of IDFC First Bank Limited’s financial information as of June 2024:
|
Metric |
Value |
|---|---|
|
Rs. 51,954 Cr. |
|
|
Book value |
Rs. 39.1 (Per share) |
|
0.00 % |
|
|
7.79 % |
|
|
11.4 % |
|
|
Rs. 10.00 |
Shareholding pattern of IDFC First Bank Limited
Here’s a concise summary of IDFC First Bank Limited’s shareholding pattern as of June 2024 :
- Promoters: Hold 73.2%
- Foreign Institutional Investors (FII): 2.7%
- Domestic Institutional Investors (DII): 10.5%
- Public: 28.4%
Peer Multiple Comparison
Let us compare IDFC First Bank Ltd with its peers that have full data available. See the table below:
|
Metric |
Axis Bank Ltd. |
Bandhan Bank Ltd. |
City Union Bank Ltd. |
Federal Bank Ltd. |
|---|---|---|---|---|
|
14.32 |
14.09 |
10.73 |
10.31 |
|
|
P/B Ratio |
2.42 |
1.46 |
1.30 |
1.29 |
|
Dividend Yield (Avg.) |
0.08 |
0.00 |
1.02 |
0.73 |
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