- IDFC First Bank’s net income for the first quarter is 4.63 billion rupees, surpassing the estimate of 3.84 billion rupees despite a 32% year-over-year decrease.
- The bank’s gross non-performing assets increased slightly to 1.97% from 1.87% quarter-over-quarter.
- Provisions rose by 14% quarter-over-quarter to 16.6 billion rupees, higher than the projected 13.72 billion rupees.
- Interest income grew by 9.7% year-over-year to 96.4 billion rupees, beating the estimate of 95.64 billion rupees.
- Interest expense saw a 15% year-over-year increase to 47.1 billion rupees, which is above the estimate of 45.88 billion rupees.
- Other income surged by 38% year-over-year, reaching 22.3 billion rupees, against an estimate of 18.75 billion rupees.
- The bank’s operating profit increased by 19% year-over-year to 22.4 billion rupees, exceeding the estimate of 18.81 billion rupees.
- Despite these positive earnings, IDFC First Bank shares fell by 3% to 70.70 rupees with 16.7 million shares traded.
- Analyst recommendations include 15 buys, 7 holds, and 4 sells.
A look at IDFC First Bank Limited Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Despite facing challenges in dividend payouts and resilience, IDFC First Bank Limited shows strong potential for long-term growth and momentum according to Smartkarma’s Smart Scores. With high scores in Growth and Momentum factors, the bank is positioned for significant expansion and market participation in the coming years. This indicates a positive outlook for the company’s future performance and strategic direction.
While IDFC First Bank Limited may need to address issues related to dividend payouts and resilience, its strengths in value, growth, and momentum factors paint a promising picture for the bank’s long-term prospects. As a provider of a wide range of commercial banking services in India, including fixed deposits, debit cards, and cash management, the bank is well-positioned to capitalize on growth opportunities and enhance its market presence in the foreseeable future.
Summary: IDFC First Bank Limited provides a full range of commercial banking services for retail and institutional customers in India.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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