IDFC First Bank

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IDFC First Bank Business Overview

IDFC First Bank is engaged in the business of Banking Services. The bank was founded by the merger of Erstwhile IDFC Bank and Erstwhile Capital First on December 18, 2018. It has made significant progress on all counts during the last 5 years including Deposits, Loan, Capital, Assets, and Leadership Team Building.

The Bank has been reducing interest rates on savings accounts for the last 3 years. Recently reduced to only 3% for balances up to Rs. 5lac. Its experience is that savings accounts are highly dependent on service levels, quality of mobile apps, quality of internet banking, brand, relationship management, and so on.
Based on these factors, the bank’s deposits continue to rise even after dropping savings account interest rates meaningfully. Excluding temporary inflow from one government account, which was called out last quarter, the quarterly increase was 6.2%

IDFC First Bank Key Highlights
➢ The Bank has built a full Suite of Universal Banking Products including Corporate Lending, Retail Lending Solutions, SME Lending Solutions, NRI Banking, and services like Wealth Management & Distribution.

➢ Growing branch presence across India, as there were 206 branches in 20218, since the merger, 749 new branches have been opened totaling up to 955.

➢ The Bank has grown its customer deposits by 38% YOY, a 4.8X growth from 2019, with a CAGR growth of customer deposits at 37%.

➢ The Bank has a healthy CASA ratio of 46.6%, it has maintained CASA at > 45% for the last 3 years, with a 5-year CAGR growth of 64%.

➢ The Bank’s Long Term Credit Rating has been recently upgraded by CARE, CRISIL, and ICRA from AA (stable) to AA+ (stable).

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IDFC First Bank Financial Performance

	FY 2022	FY 2023	FY 2024
Revenue	17,173	22,728	30,325
Expense	12,323	13,338	17,899
OPM (%)	-15%	-3%	-5%
Net income	132	2,485	2,942
EPS	0.21	3.75	4.16

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IDFC First Bank Financial Ratios

ROCE	PE Ratio	ROE	PEG Ratio
6.93 %	19.1	10.1 %	0.66
Book Value	ROA	D/E	Piotroski score
₹ 45.6	1.10 %	7.79	4.00

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IDFC First Shareholding Pattern

	Mar 2022	Mar 2023	Mar 2024
Promoters	36.49%	39.99%	37.43%
FIIs	13.48%	19.31%	23.65%
DIIs	9.58%	7.69%	6.79%
Public	36.24%	29.05%	28.38%

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IDFC First Price Chart

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IDFC First Bank Peer comparison

	PE ratio	ROCE %	OPM %
IDFC First Bank	19.1	6.93 %	38.49
HDFC Bank	18.33	7.67	33.60
ICICI Bank	18.33	7.60	34.44
Axis Bank	13.72	7.06	62.96
Kotak Bank	19.00	7.86	15.88
IndusInd Bank	12.41	7.93	60.48
IDBI BANK	15.05	6.23	68.52
YES Bank	49.60	5.83	58.49

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