 "IDFC IDF to grow loan book to Rs 3,500 cr")
IDFC Bank was trading higher by 5% to Rs 80, crossing a market capitalisation of Rs 25,000 crore mark to Rs 27,279 crore on the BSE at 09:42 am.
The stock hit an intra-day high of Rs 81 is quoting at highest level since its listing on November 6, 2015. Post April-June (Q1FY17) results, the stock rallied 59% from Rs 51 on July 25, as compared to less than 1% rise in the S&P BSE Sensex.
IDFC Bank had posted a 60% rise in its net profit to Rs 265 crore in Q1FY17, compared with the January-March quarter (Q4FY16). Net interest income, the difference between interest earned and interest expended, grew 25% to Rs 515 crore on sequentially.
The bank’s asset quality improved marginally as gross non-performing assets (NPA) declined to 6.1% in Q1FY17 from 6.2% in Q4F16. Net NPA ratios of the bank declined to 2.3% from 2.4% during the quarter.
During the quarter, it acquired Tamil Nadu-based micro-finance company, Grama Vidiyal Microfinance.
“This acquisition has given IDFC bank a 20-fold surge in customer base. The acquisition would give an extraordinary reach in a very short period of time to a very large customer base and it creates a platform for growth for IDFC Bank’s retail banking business. Bank plans to raise the customer base from 60,000 now to 150,000 by Mar-17, including the recent acquisition of Grama Vidiyal (MFI) with 110,000 clients,” according to analysts at Ashika Stock Broking.
“IDFC bank has just started its journey and better growth prospect, improving asset quality, better operational metrics improving Return On Assets (RoA) and higher profit growth is going to rerate the stock price and its valuation multiple in years to come,” the brokerage firm said in report dated September 1, 2016.
A combined 5.56 million shares changed hands on the counter on the BSE and NSE so far.
The stock hit an intra-day high of Rs 81 is quoting at highest level since its listing on November 6, 2015. Post April-June (Q1FY17) results, the stock rallied 59% from Rs 51 on July 25, as compared to less than 1% rise in the S&P BSE Sensex.
IDFC Bank had posted a 60% rise in its net profit to Rs 265 crore in Q1FY17, compared with the January-March quarter (Q4FY16). Net interest income, the difference between interest earned and interest expended, grew 25% to Rs 515 crore on sequentially.
The bank’s asset quality improved marginally as gross non-performing assets (NPA) declined to 6.1% in Q1FY17 from 6.2% in Q4F16. Net NPA ratios of the bank declined to 2.3% from 2.4% during the quarter.
During the quarter, it acquired Tamil Nadu-based micro-finance company, Grama Vidiyal Microfinance.
“This acquisition has given IDFC bank a 20-fold surge in customer base. The acquisition would give an extraordinary reach in a very short period of time to a very large customer base and it creates a platform for growth for IDFC Bank’s retail banking business. Bank plans to raise the customer base from 60,000 now to 150,000 by Mar-17, including the recent acquisition of Grama Vidiyal (MFI) with 110,000 clients,” according to analysts at Ashika Stock Broking.
“IDFC bank has just started its journey and better growth prospect, improving asset quality, better operational metrics improving Return On Assets (RoA) and higher profit growth is going to rerate the stock price and its valuation multiple in years to come,” the brokerage firm said in report dated September 1, 2016.
A combined 5.56 million shares changed hands on the counter on the BSE and NSE so far.
