IDFC First Bank Q3 Review - Rationally Optimistic Guidance 2.0 With Operating Leverage Play: Axis Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.Outlook:Deposit growth is expected to remain healthy and continue to outpace advances growth. This will allow the bank to reduce its credit/deposit ratio. Margins are expected to remain stable at current levels. The management will increase interest rates on personal loans as cost of equity has gone up.Opex is expected to remain at elevated levels in the near term as the bank is currently building the businesses to sustain for the long term. We expect IDFC First Bank Ltd.'s to maintain its growth momentum and model-in credit/deposit growth of ~24/33% compound annual growth rate over FY24-26E.Thus, robust advances in growth, stable margins, healthy non-interest income, no major stress on asset quality, and adequate capital would offset the current level of elevated opex, thereby allowing the bank to deliver a sustainable return on assets of 1.4% by FY26E. Key risks to our estimates and target priceA slowdown in overall systemic credit growth could derail our earnings estimates. Elevated levels of the cost/income ratio would drag the bank's bottom line and thereby directly impact its return on assets and return on equity..Click on the attachment to read the full report:.Union Bank of India - Credit Growth Sturdy, 1% RoA Sustainable; Retaining A 'Buy': Anand Rathi.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

IDFC First Bank Q3 Review - Rationally Optimistic Guidance 2.0 With Operating Leverage Play: Axis Securities

Well-calibrated advances growth to keep on momentum.

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IDFC First Bank Q3 Review - Rationally Optimistic Guidance 2.0 With Operating Leverage Play: Axis Securities

Well-calibrated advances growth to keep on momentum.

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