IDFC First Bank Q1FY25 results today: PAT, deposits to grow on improved CASA

Q1 results today: The board of directors of IDFC First Bank is meeting today to consider and approve unaudited standalone Q1 results 2024. The private lender has informed the Indian stock market exchanges about the IDFC First Bank's Q1 results 2024 date. According to stock market experts, IDFC First Bank is expected to report positive numbers as the private lender has registered impressive control in the cost of funding. They said the bank's focus on deposit granularity should ensure steady deposit growth.

IDFC First Bank Q1 results 2024 preview

Taking a cue from the business update of IDFC First Bank, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "In Q1FY25 business update, IDFC First Bank has reported improvement in CASA, which means it has registered improvement in the cost of funding. This is a good sign as industry NIMs have come under pressure after weak Q1 results 2024 by Axis Bank and Canara Bank. The private lender is expected to meet the market estimates if it fails to beat the estimated numbers by Dalal Street enthusiasts."

Speaking on IDFC First Bank's Q1 results today, Manish Chowdhury, Head of Research at StoxBox, said, “In FY24, IDFC Bank showcased impressive control over its cost of funds, achieving the lowest rise in this metric. We believe this trend will continue in FY25, indicating an improving funding profile for the bank. However, IDFC Bank will likely experience slight NIM compression in Q1FY25, with an expected impact of around 5-7 basis points. Given that the first quarter tends to be softer for the bank, asset quality stress is anticipated, potentially leading to moderate provisions growth and muted PAT growth for this quarter.”

"On the positive side, the bank's focus on deposit granularity should ensure steady deposit growth. Nevertheless, the cost-to-income ratio is expected to remain elevated due to ongoing investments in technology. Overall, we anticipate a muted performance from IDFC Bank this quarter. Still, the long-term prospects remain positive as the bank continues to improve its lending profile and deposit base," the StoxBox expert said.

IDFC First Bank share price outlook

Unveiling investment strategy regarding IDFC First Bank share price, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, said, “On the weekly chart, IDFC First Bank has entered an oversold zone, indicating the potential for a rebound. The immediate support zone is identified between ₹68 and ₹70. A fresh buy signal is possible only if the stock moves above the ₹78 mark, with resistance expected in the ₹82 to ₹88 range. At the current juncture, traders should wait for a clear price reversal action before making any new investments.”

The Anand Rathi expert said that once a reversal is confirmed, buying opportunities can be considered in IDFC First Bank shares with a stop loss set at ₹68, targeting a price of ₹82 soon.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.