IDFC First hits new high

IDFC First Bank yesterday evening reported a strong business update for Q2FY23.

The Bank said that its customer deposits rose 36% (YoY) and 11% (QoQ) to Rs.1.14 trillion.

CASA deposits grew 37% (YoY) and 12% (QoQ), with CASA ratio improving to 51.34% v/s 50.04% (QoQ).

Other key highlights:

· Retail business (Home loans, loan against property, vehicles financing, credit cards, and other personal credit) represents 66.4% of the overall funded assets as of September 30, 2022.

· Mortgage business grew by 29.0% on a Y-o-Y basis and constitutes 36.9% of the retail book.

· Infrastructure Loans de-grew by 40.9% on a Y-o-Y basis as of September 30, 2022.

· The Bank continues to run down the infrastructure financing book. Infrastructure loans further reduced to 4.1% of the funded assets as of September 30, 2022, down from 4.9% as of June 30, 2022.

· The Corporate Book (non-infra) grew by 19.6% Y-o-Y basis.

· Asset quality of the loans booked during last 1 year, on a like-to-like vintage comparison basis, is performing better than prior vintage periods, indicating improvement in asset quality going forward.

Reacting to this positive report, the stock price rose almost 10% to hit a new 52-week high at Rs.54.15 on the back of very robust volumes.