IDFC First Bank share price dips after Q4FY25 business update. Opportunity to buy?

IDFC First Bank share price declined over 2% on Friday, reversing half of previous session’s gain, after the private lender reported its business update for the fourth quarter of the financial year 2024-25 (Q4FY25). IDFC First Bank shares fell as much as 2.78% to ₹58.68 apiece on the BSE.

The shares of private lender, IDFC First Bank jumped 5.5% in the previous session after the announcement of quarterly business update. On Friday, IDFC First Bank shares broke a three-day gaining streak.

IDFC First Bank Q4 business update

IDFC First Bank said its total business (Loans & Advances and Customer Deposits) grew from ₹3,94,718 crore as of March 31, 2024 to ₹4,84,394 crore as of March 31, 2025, registering a growth of 22.7%.

The bank’s Loans & Advances in Q4FY25 grew 20.3% in the March 2024 quarter to ₹2,41,848 crore from ₹2,00,965 crore, year-on-year (YoY). On a quarter-on-quarter (QoQ) basis, the growth stood at 4.7%.

Customer Deposits increased 25.2% to ₹2,42,546 crore as of March 31, 2025, from ₹1,93,753 crore as of March 31, 2024. On a sequential basis, the growth was 6.7%.

“The Bank has been bringing down the Credit-Deposit Ratio continuously since merger between IDFC Bank and Capital First in December 2018, by retiring legacy (pre-merger) bonds & borrowings and by scaling retail customer deposits. The Incremental Credit Deposit Ratio for trailing 12 months, i.e. from March 31, 2024 to March 31, 2025 is 75.7%,” IDFC First Bank said in regulatory filing.

Should you buy IDFC First Bank shares?

Sumeet Bagadia, Executive Director at Choice Broking, noted that IDFC First Bank shares were facing resistance at ₹60, and made a strong base at ₹55 apiece.

“A bullish or bearish trend can be assumed on the breakage of either side of the range. Once IDFC First Bank share price gives a decisive breakout above ₹60 on a closing basis, we may expect the banking stock to touch ₹70 apiece soon. So, IDFC First Bank shareholders are advised to hold the scrip, maintaining a stop loss of ₹55,” Bagadia said.

He said fresh investors can also buy IDFC First Bank shares at the current market price for the near-term target of ₹70. However, they must maintain a stop loss at ₹55 while taking any fresh position on the counter.

IDFC First Bank share price has risen by a modest 2% over the past month. However, the private bank’s stock has witnessed a decline of 11% in the last three months and is down 20% over a six-month period. On a year-on-year basis, IDFC First Bank stock has corrected by 27%.

Despite the recent weakness, IDFC First Bank shares have delivered robust long-term returns, gaining 195% over the past five years, thereby emerging as a multibagger for long-term investors.

At 9:40 AM, IDFC First Bank shares were trading 2.40% lower at ₹58.91 apiece on the BSE.

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