Neutral IDFC First Bank; target of Rs 90: Motilal Oswal

Neutral

Motilal Oswal's research report on IDFC First Bank

IDFC First Bank (IDFCFB) reported 3QFY26 PAT of INR5b (up 48% YoY/up 43% QoQ, in line), as NII and PPoP both stood in line. NII grew 12% YoY/7.4% QoQ to INR54.9b (in line). NIMs expanded 17bp QoQ to 5.76%, with the outlook improving amid a better asset mix and benefits from the recent cut in SA rates. Business growth remains robust, with advances growth at 21% YoY/5% QoQ. Deposits growth also stood healthy at 23% YoY/5.2% QoQ, with the CASA mix further improving to 51.6% (up 150bp QoQ).

Outlook

We broadly maintain our earnings and estimate a PAT CAGR of 73% over FY26-28, leading to an RoA/RoE of 0.9%/8.8% for FY27E. Reiterate Neutral with a TP of INR90, based on 1.4x Sep’27E ABV.

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