IDFC First Bank’s share price is set to attract attention in the upcoming trading session after the private bank released its Q4 results over the weekend. The stock experienced a slight downturn, closing down by 2.45% at ₹65.99 on Friday, just ahead of the results announcement. Despite this decline, IDFC First Bank’s stock has shown remarkable growth of over 15.89% in the past month, indicating a potential shift in investor sentiment.

IDFC First Bank Q4 Financial Highlights

In the recently reported January-March quarter for FY 2024-25, IDFC First Bank experienced a staggering 58% drop in standalone net profit, which fell to ₹304 crore from ₹724.3 crore during the same quarter last year. This significant decrease raises questions about the bank’s operational efficiency and market positioning.

• Net Interest Income (NII): The bank recorded a 9.8% increase in NII, rising to ₹4,907.1 crore, compared to ₹4,468.9 crore a year earlier.
• Total Income: The total income for the quarter surged to ₹11,308 crore, compared to ₹9,861 crore the previous year.
• Interest Income: Interest income also saw a boost, climbing to ₹9,413 crore, up from ₹8,219 crore in the same quarter last year.

Additionally, the bank’s board has proposed a dividend of ₹0.25 per equity share, pending approval from shareholders.

Asset Quality and Provisions

The bank’s asset quality showed slight improvement, with the gross non-performing assets (NPAs) ratio edging down to 1.87% from 1.88% a year ago. Similarly, the net NPAs decreased to 0.53%, down from 0.60% in the same period last year.

However, it’s noteworthy that the bank’s total provisions (excluding taxes) surged to ₹1,450 crore, doubling from ₹722 crore in the same quarter of the previous year. For FY25, the net profit plummeted by 48% to ₹1,525 crore, compared to ₹2,957 crore in the previous fiscal year, largely due to ongoing struggles in the microfinance sector.

Expert Insights

Seema Srivastava, a Senior Research Analyst at SMC Global Securities, commented on the mixed results: “The performance in Q4 FY25 highlights a resilient core operating profit, which grew 19.9% YoY excluding the microfinance segment. This indicates the bank’s potential for long-term growth despite facing challenges.”

Should You Buy or Sell IDFC First Bank Shares?

According to Sugandha Sachdeva, Founder of SS WealthStreet, IDFC First Bank has been undergoing a correction phase since September 2023, following a peak of ₹100.70. Recently, a technical pattern resembling a double bottom formation near ₹52.50 has emerged, signaling a possible bullish reversal.

• Since then, the stock has rallied impressively, gaining over 31.50% to reach a recent high of ₹69.08.
• However, Sachdeva warns that the rapid gains may lead to a period of consolidation or profit-taking soon.

She suggests that a retracement to around ₹61—the 50% Fibonacci retracement level from the rally—could be expected, which may serve as a strong support zone for fresh buying.

From a broader perspective, the medium-term outlook remains optimistic. Following the expected consolidation phase, the stock has the potential to resume its upward trajectory, targeting ₹76 and eventually reaching ₹90 in the long run.

Investors should keep a close eye on IDFC First Bank’s performance, particularly as it navigates through these mixed financial results and market sentiments.