Thursday, January 28, 2021
Home Share market Will the IDFC First Bank Ltd be the “next HDFC Bank”?

Will the IDFC First Bank Ltd be the “next HDFC Bank”?

IDFC First Bank Ltd (idfcfirstb) is the “next HDFC Bank”

Idfcfirstbank is engaged in the business of Banking Services. The bank started operations on 1 October 2015. Due to various reasons, there is a high possibility to outperform the bank (in coming years). MD-CEO, Mr. V. Vaidyanathan, who has over 25 years of banking experience across Icicibank  and Citibank Group is the key person the entire Banking world is looking at.

Management is having a splendid strategy for catering new customers and the bank is focusing on retail segment instead of Corporate segments or wholesale segments. The Bank has made lightening progress in retailization of Liabilities. Retail liabilities  now comprise 72% of customer deposits, up from 27% at merger.

  • Improved lending practices with (low) Gross NPA ratio of 1.62, which creates a possibility for more room for growth.
  • The Bank has a high Capital Adequacy Ratio of 17.07% signifying high buffers against its risk based assets.
  • Net Interest Income has grown by an annual rate of 144.97%.
  • The company has declared Positive results for the last 3 consecutive quarters
  • NII(Q) Highest at Rs 1,659.73 cr
  • GROSS NPA(Q) Lowest at 1.62 %
  • PBT LESS OI(Q) Highest at Rs -42.03 cr.
  • Average CASA ratio for Q3 at 44.6% vs 20.9% (YOY)
  • CASA ratio on outstanding deposits a on Dec 31, 2020 is at 48.4%.
  • High Institutional Holdings at 26.95%
  • Retail deposits including CASA and term deposits of IDFC First doubled to 584.35B rupees as of Dec 31st.
  • Customer deposits up41% (YOY) to 772.89B as on Dec 31, 2020.
  • Company with Zero promoter Pledge.
  • GNPA 1.62% as of Sep 2020
  • NNPA 0.43% as of Sep 2020
  • Stock gained more than 20% in one month.
  • The Retail funded asset cover 56% of the total business which is much welcome for a banking sector.
  • As on Sep 30, 2020, it has a network of 523 branches and 509 ATMs across the country. The bank is led by

Technicals

Stock is technically in a Bullish range. The technical trend has improved from Mildly Bullish on 31-Dec-20 and has generated 23.62% returns since then Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and OBV.

1 COMMENT

  1. Thanks indeed for the coverage.Me holding couple of k’s of IDFC First bank.Hope and wish and looking forward to be another HDFC bank.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

How to check the IPO Allotment status?.

Open the Website of BSE India  -  BSE INDIA 2. Click on the below link to check the allotment status.          ...

Why Bandhan Bank share price is Falling?

The Assam Micro Finance Bill and the latest Quarter results has added more pains on the Bank. The Bandhan Bank, the private lender reported its...

Tata Motors hitting 28-month high – Things to remember

On Friday, Tata Motors's shares lengthened their winning streak to the 11th day after hitting a 28-month high of ₹261.50 on BSE. Since September...

IRFC IPO – Pros and cons

Indian Railway Finance Corporation (IRFC) is the borrowing division of the Indian Railways or in simple words, IRFC does financing for the Indian Railways. It...

Recent Comments