24-Oct-2026 21:59:56
IDFC FIRST BANK Q2 CONCALL : NIM RECOVERY TARGETED AT 5.8% BY Q4, UNDERLYING LOAN GROWTH EXPECTED AROUND 20% & CORE PAT CROSSES ₹1,000 CR
• MANAGEMENT TARGETS NIM RECOVERY TO APPROXIMATELY 5.8% BY Q4 FY27 VS 5.58% IN Q2 • Q3 NIM EXPECTED TO REMAIN BROADLY STABLE, WITH FY28 NIM OUTLOOK AROUND 5.8% • UNDERLYING LOAN GROWTH EXPECTED AROUND 20%, EXCLUDING FCNR-BACKED LENDING • MANAGEMENT SEES CAPACITY TO GROW DEPOSITS BY APPROXIMATELY 20–22% • CASA RATIO TARGETED TO REMAIN IN HIGH-40% RANGE VS 47.6% IN Q2 • FCNR DEPOSITS OF ₹34,390 CR PROVIDE APPROXIMATELY 100 BPS FUNDING COST ADVANTAGE OVER COMPARABLE DOMESTIC DEPOSITS • EXCESS LIQUIDITY EXPECTED TO NORMALIZE, HELPING RECOVER APPROXIMATELY 7 BPS OF TEMPORARY NIM DRAG • CORE NET PROFIT INCREASED TO ₹1,036 CR FROM ₹897 CR QOQ, WITH MANAGEMENT EXPECTING FURTHER PROFITABILITY IMPROVEMENT • ROA REACHED APPROXIMATELY 0.93%, WITH MANAGEMENT EXPECTING LONG-TERM EXPANSION • INCREMENTAL COST-TO-INCOME RATIO EXPECTED AROUND 55% IN FY27 • MANAGEMENT TARGETS INCOME GROWTH TO EXCEED OPERATING EXPENSE GROWTH BY MORE THAN 500 BPS • CREDIT COST DECLINED TO 1.38% FROM 1.53% QOQ, WITH CURRENT LOW LEVELS EXPECTED TO REMAIN BROADLY SUSTAINABLE IN H2 • LIABILITY FRANCHISE PROFITABILITY DRAG EXPECTED TO DISAPPEAR GRADUALLY OVER APPROXIMATELY THREE YEARS • CORPORATE BANKING, BUSINESS BANKING & CREDIT CARDS IDENTIFIED AS KEY GROWTH DRIVERS • NIM RECOVERY DELAYS, WEATHER-RELATED CREDIT STRESS, INSURANCE COMMISSION CHANGES & ECL TRANSITION REMAIN KEY RISKS
IDFC FIRST BANK LIMITED