 "IDFC First Bank hits 52-week high; soars 6% on two-fold jump in Q4 net")
IDFC First Bank surged nearly 6 per cent to a high of Rs 65.20 on heavy volume in Tuesday's intra-day trades on the back of over 100 per cent jump in Q4 net profit.
At 10:10 AM, the stock was up 3.8 per cent at Rs 63.90, backed by trades of around 43.11 lakh shares as against the two-week average volume of around 26.80 lakh shares on the BSE. Meanwhile, the S&P BSE Sensex was up 0.6 per cent at 61,450.
Last month, the stock rallied over 11.5 per cent, while the BSE benchmark gained around 4 per cent.
For the quarter ended March 2023, IDFC First Bank reported a strong 134.2 per cent surge in Q4 net profit to Rs 802.62 crore when compared with Rs 342.73 crore in the corresponding quarter a year ago. Total income grew by 45.3 per cent YoY to Rs 7,821.83 crore.
Going ahead, IDFC First Bank expects net interest margin (NIM) to trend down and stay between 5-5.5 per cent band in this financial year and next. Its margins stood at 6.05 per cent in the fourth quarter of FY23 (Q4FY23).
V Vaidyanathan, IDFC First's managing director and chief executive, told Business Standard cost will catch up on the re-pricing of deposits. After repo rate hikes, costs were passed on to customers in FY23. However, the cost to banks did not go up correspondingly. It takes about a year for costs to catch up. The private lender had reported a NIM of 5.96 per cent for FY22. READ MORE
Further, the bank's board has also approved a proposal to borrow funds up to Rs 5,000 crore by way of issue of Debt Instruments including but not limited to Unsecured, Redeemable, Non-Convertible Debentures, Bonds or such other Debt Securities in one or more tranches.