IDFC First Bank share price jumps over 5%, extends rally to third day in a row

Shares of private sector lender — IDFC First Bank — rallied over 5% in intraday trade on Tuesday, July 1, following a rating and target price upgrade by brokerage Investec. With this, IDFC First Bank share price was up for the third day in a row, rising over 7% during this period.

According to media reports, brokerage Investec has upgraded IDFC First Bank stock to 'Buy' while assigning a new target price of ₹90 (from ₹65 previously), suggesting a 24% upside from its last closing price of ₹72.82 on the BSE.

Investec expects IDFC First Bank to deliver 29% core operating profit CAGR over FY25-28e, as per NDTV Profit. The brokerage further expects an 80 bps reduction in cost-to-assets and a 90 bps decline in credit cost from elevated levels over the said period. This, as per Investec, should drive 1.3% return on assets (RoA) by FY28, compared to 0.5% last year.

In the March quarter of FY25, IDFC First Bank reported a 58% fall in net profit to ₹304 crore due to a rise in provisions. Overall provisions excluding tax doubled to ₹1,450 crore from ₹722 crore in the same quarter a year ago.

However, the lenders' total income increased to ₹11,308 crore during the quarter against ₹9,861 crore in the same quarter a year ago. On the asset quality front, the bank's gross non-performing assets ratio improved marginally to 1.87% against 1.88% a year ago. Similarly, its net NPAs, or bad loans, came down to 0.53% from 0.60% in the March quarter of the previous year.

The private bank is slated to announce the results for the recently concluded June quarter on July 26, 2025.

IDFC First Bank share price jumped 5.8% to the day's high of ₹77.08 apiece. The stock had opened at ₹72.86, just a tad higher than its last close, but soon extended gains as positive brokerage views spurred investor mood.

For the year, IDFC First Bank stock has been down 5%; however, on a year-to-date (YTD) basis, it has jumped 20%. In the past three months, the bank stock has surged 35%, with its rally coinciding with a rise in the Indian stock market.

According to Trendlyne data, among 18 analysts covering the IDFC First Bank stock, nine have buy recommendations, six have hold ratings, and three have sell ratings.

Disclaimer: This story is for educational purposes only. 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.

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