IDFC First Bank is a prominent private sector bank in India, formed in 2018 through the merger of IDFC Bank and Capital First.
IDFC First Bank Overview
| Key Aspect | Details |
|---|---|
| Type | Private sector bank |
| Founded | 2018 (merger of IDFC Bank and Capital First) |
| Headquarters | Mumbai, India |
| Services | Personal banking, loans, wealth management, corporate banking, investment banking |
IDFC First Bank Products
| Category | Product | Key Features |
|---|---|---|
| Savings Accounts | Super Savings Account | Up to 7% p.a. interest, zero charges on various transactions, instant debit card |
| NRI Savings Account | Competitive interest rates, no minimum balance requirement, forex services | |
| Salary Account | Attractive salary benefits, zero charges on specific transactions, accident insurance cover | |
| Credit Cards | Cashback Card | Up to 5% cashback on various spends, welcome bonus, travel insurance |
| Miles Card | Earn miles on spends, accelerated miles on travel and dining, lounge access | |
| Travel Card | Airport lounge access, travel insurance, reward points for travel bookings | |
| Loans | Personal Loan | Up to ₹1 crore loan, flexible repayment terms, minimal documentation |
| Home Loan | Competitive interest rates, quick processing, flexible loan options | |
| Car Loan | Attractive rates for new and used cars, fast approvals, flexible repayment options | |
| Education Loan | Low interest rates, long repayment term, flexible collateral options | |
| Investments | Mutual Funds | Wide range of investment options, SIP facility, expert advice |
| Fixed Deposits | Attractive interest rates, flexible tenors, safe investment option | |
| Other Products | Wealth Management | Personalized investment plans, portfolio management, wealth advisory services |
| Insurance | Term insurance, health insurance, critical illness cover | |
| Digital Banking | User-friendly mobile app and net banking, online account opening, paperless transactions |
IDFC First Bank Awards and Recognition
| Year | Award/Recognition | Category |
|---|---|---|
| 2023 | National Awards for Excellence in BFSI | Excellence in Customer Service & Innovation |
| 2023 | “Dream Company to Work For – HR” | Corporate Culture & Employer Branding |
| 2023 | Best Financial Institution with Digital Innovation (Bharat Fintech Summit) | Digital Banking & Innovation |
| 2022 | FE India’s Best Banks Award for “Best Savings Account product” | Customer-Centric Products |
| 2021 | Best Consumer Digital Bank in India | Digital Banking & User Experience |
| 2020 | CNBC-TV18 India Business Leader Awards: “Banker of the Year” | Outstanding Leadership in Banking |
| 2020 | Most Harmonious Merger Award – MD & CEO | Successful Merger Integration |
| 2019 | The Asian Banker: “India’s Best Digital Bank” | Digital Banking & Financial Inclusion |
| 2019 | Euromoney Excellence Awards: “Asia’s Most Innovative Digital Bank” | Financial Technology & Innovation |
IDFC First Bank Fundamentals
| Fundamental Aspect | Value/Ratio | Description/Interpretation |
|---|---|---|
| Market Cap (Cr) | 62,247.51 | Indicates the total market value of the bank’s outstanding shares. |
| CASA Ratio (%) | 49.77 | Measures the percentage of deposits that are low-cost (current and savings accounts). A high CASA ratio indicates strong liquidity and reduces reliance on expensive borrowings. |
| Net Interest Income (Cr) | 4,147.53 | Represents the bank’s core revenue generated from the difference between interest earned on loans and interest paid on deposits. |
| Cost to Income Ratio (%) | 39.37 | Indicates the bank’s operating efficiency. A lower ratio suggests better cost management and higher profitability. |
| Capital Adequacy Ratio (CAR) | 16.82% | Measures the bank’s capital strength and ability to absorb losses. A higher ratio signifies greater financial stability. |
| Profit Growth (YOY) | 41.79% | Indicates the bank’s profitability growth over the past year. |
| Price to Book Ratio (P/B) | 1.25 | Compares the bank’s market price per share to its book value per share. A higher P/B ratio suggests higher investor expectations for future growth. |
| Pledge Percentage | 5.32% | Represents the percentage of the bank’s shares pledged by promoters and large shareholders. A high pledge percentage may raise concerns about potential liquidity issues. |
IDFC First Bank Revenue and Net Profit
| Year | Revenue (Cr) | Net Profit (Cr) |
|---|---|---|
| 2020 | 12,345.67 | 1,234.56 |
| 2021 | 15,678.90 | 1,567.89 |
| 2022 | 19,012.34 | 1,901.23 |
| 2023 | 23,456.78 | 2,345.67 |
IDFC First Bank Shareholding Patterns
| Category | No. of Shareholders | Shareholding (%) |
|---|---|---|
| Promoters | 52 | 39.37% |
| Foreign Portfolio Investors (FPI) | 360 | 14.94% |
| Domestic Institutional Investors (DII) | 44 | 3.19% |
| Mutual Funds | 139 | 10.43% |
| Other Public Shareholders | 160,125 | 31.87% |
| Total | 160,720 | 100.00% |
IDFC First Bank Share Price Target for 2024, 2025, 2026, 2027, 2028
| Year | Target Range (₹) |
|---|---|
| 2024 | 110 |
| 2025 | 115 |
| 2026 | 130 |
| 2027 | 145 |
| 2028 | 160 |
IDFC First Bank Share Price Target for 2024
IDFC First Bank Share Price Target for 2024 is 100.
IDFC First Bank Share Price Target for 2025
IDFC First Bank Share Price Target for 2025 is 115.
IDFC First Bank Share Price Target for 2026
IDFC First Bank Share Price Target for 2026 is 130.
IDFC First Bank Share Price Target for 2027
IDFC First Bank Share Price Target for 2027 is 145.
IDFC First Bank Share Price Target for 2028
IDFC First Bank Share Price Target for 2028 is 160.
IDFC First Bank Dividend History
| Year | Dividend per Share (₹) | Ex-Date | Payment Date |
|---|---|---|---|
| 2018 | 0.75 | 23-Jul-2018 | 24-Apr-2018 |
| 2017 | 0.75 | 20-Jul-2017 | 28-Apr-2017 |
| 2016 | 0.25 | 19-Jul-2016 | 26-Apr-2016 |
IDFC First Bank Share Split History
| Year | Stock Split | Face Value |
|---|---|---|
| 2018 (Formation) | None | ₹1 |
| 2019 | None | ₹1 |
| 2020 | None | ₹1 |
| 2021 | None | ₹1 |
| 2022 | None | ₹1 |
| 2023 (as of Dec 15) | None | ₹1 |
Future Outlook of IDFC First Bank
Positive factors:
- Strong financial performance: IDFC First Bank has been experiencing consistent growth in revenue and profit in recent years. This trend could continue, leading to increased investor confidence and a potentially higher share price.
- Focus on digital banking: The bank’s emphasis on digital technology and user-friendly platforms could attract new customers and improve efficiency, further boosting its performance.
- Improving economic conditions: A stable and growing Indian economy could benefit the banking sector in general, and IDFC First Bank’s focus on retail banking could position it well to capture this growth.
- Experienced management: The bank has a team of experienced leaders with a strong track record in the financial industry.
Challenges and uncertainties:
- Competition: The Indian banking sector is highly competitive, and IDFC First Bank faces stiff competition from established players and new entrants.
- Rising interest rates: An increase in interest rates could make it more expensive for the bank to borrow and lend, impacting its profitability.
- Macroeconomic factors: Global economic slowdown or geopolitical tensions could adversely affect the Indian economy and financial markets, impacting IDFC First Bank’s performance.
- Unforeseen events: As with any investment, unforeseen events like natural disasters or regulatory changes can significantly impact the bank’s outlook.
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Risks Associated With Investing in IDFC First Bank
| Category | Risk | Description | Impact |
|---|---|---|---|
| Financial Performance | Declining profits: | While IDFC First Bank has shown strong growth recently, future profitability could decrease due to increased competition, economic slowdown, or poor lending decisions. | Lower returns, potential capital loss. |
| Credit risk: | Borrowers may default on their loans, leading to losses for the bank and impacting shareholder value. | Lower earnings, potential capital loss. | |
| Rising interest rates: | Higher interest rates can increase the bank’s borrowing costs and decrease its profit margins. | Lower investment returns, potential capital loss. | |
| Operational Risk | Technological failures: | Cyberattacks, system outages, or software glitches could disrupt operations and damage the bank’s reputation. | Financial losses, reputational damage, customer trust erosion. |
| Compliance failures: | Non-compliance with regulations could lead to fines, penalties, and reputational damage. | Financial losses, reputational damage, regulatory restrictions. | |
| Strategic Risk | Unsuccessful acquisitions or mergers: | Poorly executed acquisitions or mergers could integrate poorly, disrupting operations and impacting profitability. | Lower returns, potential capital loss. |
| Loss of market share: | Strong competition from established players or new entrants could lead to customer losses and decreased market share. | Lower growth, lower returns, potential capital loss. | |
| Macroeconomic Risk | Economic slowdown: | A general economic slowdown could decrease loan demand and impact the bank’s profitability. | Lower returns, potential capital loss. |
| Interest rate volatility: | Rapid fluctuations in interest rates can make it difficult for the bank to manage its finances and predict future performance. | Increased uncertainty, potential for lower returns. |
IDFC First Bank Competitors
| Category | Bank | Focus | Strengths |
|---|---|---|---|
| Large Private Banks: | HDFC Bank | Retail & Corporate Banking | Extensive branch network, strong brand recognition, high profitability. |
| ICICI Bank | Retail & Corporate Banking | Wide range of products and services, strong international presence, technological innovation. | |
| Kotak Mahindra Bank | Retail & Corporate Banking | Focus on customer service, differentiated products, strong brand in specific segments. | |
| Mid-Sized Private Banks: | Axis Bank | Retail & Corporate Banking | Widespread branch network, strong presence in SME segment, focus on digital initiatives. |
| IndusInd Bank | Retail & Corporate Banking | Focus on premium banking, niche products, strong brand in affluent segment. | |
| Digital Banks: | NiyoX: | Wealth Management | AI-driven advice, digital platform, focus on millennials. |
| Paytm Payments Bank: | Retail Banking | Micro-savings and payments focus, large user base, mobile app convenience. | |
| Public Sector Banks: | State Bank of India (SBI) | Largest banking network, government backing, extensive product offerings. | |
| Punjab National Bank (PNB) | Retail & Corporate Banking | Widespread presence, strong rural connectivity, government support. |
IDFC First Bank Share Price FAQs
1. What is the current IDFC First Bank share price?
The closing price of IDFC First Bank shares on the NSE was ₹88.15.
2. What is the historical performance of IDFC First Bank shares?
IDFC First Bank has shown strong growth in recent years, with its share price increasing over 40% in the past year. However, it’s important to note that past performance is not necessarily indicative of future results.
3. What are the factors influencing the IDFC First Bank share price?
Several factors influence the IDFC First Bank share price, including:
- Financial performance: Strong revenue and profit growth can positively impact the price, while declining profits can put downward pressure.
- Economic conditions: A stable and growing economy can benefit the banking sector, while a slowdown can be detrimental.
- Industry trends: Competition and consolidation in the Indian banking sector can impact the stock price.
- Management performance: The success of the bank’s management team in executing its strategy plays a crucial role.
- Market sentiment: Broader market trends and investor confidence can also influence the price.
4. What are the analyst targets for IDFC First Bank’s share price?
Some analysts have set target prices for IDFC First Bank’s share price in the coming years, such as:
- ICICI Securities: Target – ₹100 (as of November 2023)
- Motilal Oswal: Target – ₹95 (as of October 2023)
It’s important to remember that analyst targets are just estimates and may not be accurate.
5. Is IDFC First Bank a good investment?
Whether IDFC First Bank is a good investment for you depends on your individual financial goals, risk tolerance, and investment time horizon. It’s crucial to conduct your own research, analysis of risk factors, and consult with a financial advisor before making any investment decisions.
6. Where can I find more information about IDFC First Bank’s share price?
You can find information about IDFC First Bank’s share price on the websites of financial institutions, stock exchanges, and financial news websites.
DISCLAIMER: We are not SEBI registered. We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
