IDFC First Bank - Robust Foundation, Responsible Progress: ICICI Securities

ICICI Securities Report

IDFC First Bank Ltd.’s FY23 annual report titled ‘Robust foundation, responsible progress’ fairly captures the theme of ongoing transformation of the bank and way ahead.

Segmental profitability disclosures suggest sharp turnaround in the retail business with calculated return on asset around 1.15% for FY23 versus -1.1% in FY22 and -2.6% in FY21.

Qualitative and quantitative disclosures on asset quality suggest sharp improvement not only in the stock but also in the quality of customers at the time of onboarding and across vintage, which provides more confidence on the longevity of the current benign credit cost trajectory, in our view.

Additional details on the corporate-salaried segment, penetration in government / public sector banks segment suggests rising traction in government segment, which should get further fillip as the bank now has the required years of profitability track-record.

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