IDFC First Bank Business Update: Deposits, CASA rise on-year, loans increase

IDFC First Bank was in the news last week post announcement of a 3-way merger. It has informed the exchange that it has set in motion the process of merging IDFC Ltd and IDFC Financial Holding Company with itself. The stock price gained close to 5% post the news. Yesterday, the Bank announced a business update. 

IDFC First Bank Q3 updates

Deposits - The total deposits were up by 10.48% YoY to Rs 85,387 crore in the Q3FY22 compared to December 2020, where the total customer deposits were Rs 77,289 crore. During the Q3, the total deposits increased by Rs 1498 crore.

Loan Book - The retail and corporate loans (and others) accounted for 51.1% and 23.7%, respectively of the funded asset book. Rural and commercial loans accounted for 9.8% and 8.8%, respectively of the total funded asset book. Housing loans book grew by 44.2% YoY as of December 31, 2021. Mortgage-backed businesses grew 27.4% YoY as of December 31, 2021

CASA - The low-cost Current Account Saving Account (CASA) was reported as Rs 47,879 crore as of 31 December 2021. CASA increased by 18.04% YoY. It was Rs 40,563 crore in December 2020. CASA ratio stood at 51.85% as of 31 December 2021, as compared to 48.31% as of 31 December 2020, and 51.28% as of 30 September 2021.

IDFC Bank Q3 update: Brokerage Radar

ICICI Securities has given a Buy recommendation on IDFC First Bank with a target price of Rs 73 per share. It said in its report, the bank’s evolution is unique in a sense: on getting a license, it was created out of a demerger of infrastructure financing business followed by the merger of erstwhile Capital First. 

ICICI Direct - is bullish on IDFC First Bank has recommended a buy rating on the stock with a target price of Rs 60.

On 6 January afternoon, the IDFC First Bank share was trading at Rs 49.50 per share. We will update you on its Q3 results once announced.