IDFC First Bank has turned out to be one of the more notable stories in the banking space this year. After a shaky start to FY27, the stock recovered steadily and has returned roughly 30% in around six months. The latest quarterly business update has added fresh confidence, and market experts now believe the rally may still have room to run, mainly because of the bank’s improving growth in lending, deposits, and low-cost CASA balances.
Strong Growth Numbers for the September Quarter
In the quarter ended September, the bank’s loans grew by about 30%, and its deposits rose by 26%, while CASA deposits, which are the cheaper and more stable kind of funding, increased by around 20%. These figures look especially good when set against the June quarter, when loan growth was 21% and deposit growth was 18%. CASA growth, however, was higher in June at 25%, so the improvement was not uniform across every measure.
What Jefferies Says Beneath the Headline Figures
Brokerage Jefferies India described the quarter as a sign of solid growth, but it also pointed out that FCNR-B deposits worth $3.6 billion helped lift the numbers and that about $2.6 billion of this money was used for lending. When that effect is set aside, loan growth comes to roughly 20% and deposit growth to about 14%, which is a more modest picture but still a healthy one. For the full FY27, Jefferies expects loans to grow around 20% and deposits about 23%, so investors will be watching the balance sheet closely in the coming quarters.
Better Liquidity and Steady Asset Quality
According to Jefferies, the bank also used a portion of the FCNR-B funds to repay certain deposits and certificates of deposit, which strengthened its liquidity position. The Liquidity Coverage Ratio, a key measure of how well a bank can handle short-term stress, climbed from 116% in June to 125% in September. Asset quality has remained strong as well, which gives the bank a firmer base for growth without adding too much risk.
Technical View: ₹86 Seen as the Next Target
Mahesh M Ojha, VP-Research and Business Development at KC Securities, says the stock looks bullish on both weekly and monthly charts. He has advised existing investors to keep holding the shares with a stop-loss of ₹79.50 and an immediate target of ₹86. For fresh buyers, he suggests entering at current levels and adding gradually on dips, with a stop-loss of ₹77.50 and the same ₹86 target. A few other technical analysts believe the stock could even touch ₹86.50.
Also Read: IDFC First Bank Share Price Target
What Investors Should Keep in Mind
Targets and stop-losses based on charts are short-term views and can change quickly if market conditions turn. Since part of the quarter’s growth came from one-time FCNR-B inflows, investors may want to look at the underlying numbers too before taking a decision. This report is meant only for information and should not be treated as investment advice.
Disclaimer: All the information provided in this article is for educational and infomational purposes only. DateUpdateGo always advises seeking guidance from a certified financial advisor before making any investment-related decisions.
