IDFC First Bank Q4 Review - Capital Cushion, Retail Transformation Drive Upgrade: Prabudas Lilladher
IDFC First Bank branch in Nerul. (Source: BloombergQuint)

IDFC First Bank Q4 Review - Capital Cushion, Retail Transformation Drive Upgrade: Prabudas Lilladher

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

Our optimism on IDFC First Bank Ltd. is driven by the strong transformation in last few years towards retail especially on liabilities and improved provisioning in a quite challenging year.

Common Equity Tier-I of 15.6% post capital raise gives additional comfort on growth as well stress absorption.

Conundrum remains on return ratios being lower in near term and impact of second Covid-19 wave needs close monitoring as slippages have been high.

High provisions and utilisation of Covid-19 provisions of Rs 21.0 billion have improved coverage ratio, although buffer is now low at 37 basis points of loans (created in Q4 FY21).

Click on the attachment to read the full report:

Prabhudas Lilladher IDFC First Bank Result Update.pdf

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