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