IDFC First Bank surges more than 11 per cent on August 1; here's why

The bank has reported a strong Q1 FY23 result

Market is trading positively on August 1, 2022. At 12 pm, S&P BSE Sensex is trading at 57928 with 0.62 per cent gain for the day. Talking about stock in action, IDFC First Bank is among the top gainer in S&P BSE group ‘A’ today. The stock is up 11.85 per cent and trading at Rs 42. 

The company is among India’s leading private sector banks with a market capitalization of Rs 25375 crore. 

The shares of IDFC First Bank are rallying today based on robust Q1 FY23 results which the company disclosed on Saturday. The loan book was recorded at Rs 1,37,663 crore, showcasing a growth of 21 per cent. The core operating profit increased by 64 per cent YOY, reported at Rs 987 crore. The Net Interest Margin (NIM) also improved on a YOY basis from 5.5 per cent to 5.89 per cent. The net profit improved significantly YOY from a net loss of Rs 630 crore in Q1 FY22 to a net profit of Rs 474 crore in Q1 FY23. 

The bank has a strong CASA at 50.04 per cent and is constantly focusing on improving its retail lending operation, which showed about 40 per cent YOY growth. 

Talking about the composition of the loan book, corporate contribute 22 per cent, loans against property is 14 per cent, consumer loan stands at 14 per cent, home loan at 11 per cent, rural finance 10 per cent, commercial finance 8 per cent, wheels 8 per cent, digital and gold loan is at 7 per cent, infrastructure finance 5 per cent, and the rest 2 per cent comes from credit card business.