Street cautious about IDFC First Bank's ability to achieve its goals

The Street is cautious about the bank's ability to achieve its goals

The March quarter (Q4) was the first period of consolidated results for IDFC First Bank. Hence, the Street anticipated it. However, it belied expectations with another quarter of losses, which came in at Rs 218 crore. A weak operational performance saw its operating profit fall 2 per cent sequentially, while loss before tax was Rs 417 crore.

Given the muted numbers, most brokerages have an underweight recommendation on the stock. The same is reflected in the stock price, which is down 26 per cent from its 52-week high of Rs 56.9 apiece in April. 

While any merger, especially in the banking sector,