On Friday, shares of IDFC First Bank experienced a notable decline of over 2%, erasing gains from the previous session. This downturn came after the bank released its business update for the fourth quarter of the fiscal year 2024-25 (Q4FY25). The stock fell as much as 2.78% to reach ₹58.68 on the Bombay Stock Exchange (BSE), breaking a three-day streak of increases.

IDFC First Bank’s Q4 Business Performance

In its recent update, IDFC First Bank highlighted impressive growth in its total business, which encompasses both Loans & Advances and Customer Deposits. The bank reported a surge from ₹3,94,718 crore on March 31, 2024, to ₹4,84,394 crore by March 31, 2025, marking a strong 22.7% increase.

• Loans & Advances rose by 20.3%, climbing to ₹2,41,848 crore from ₹2,00,965 crore year-on-year (YoY).
• On a quarter-on-quarter (QoQ) basis, growth was recorded at 4.7%.
• Customer Deposits saw a remarkable 25.2% increase, reaching ₹2,42,546 crore compared to ₹1,93,753 crore the previous year, with a sequential growth of 6.7%.

Insights from IDFC First Bank

The bank noted that it has been actively reducing its Credit-Deposit Ratio since the merger between IDFC Bank and Capital First in December 2018. This strategy includes retiring legacy bonds and increasing retail customer deposits. The Incremental Credit Deposit Ratio for the past twelve months, from March 31, 2024, to March 31, 2025, stands at an impressive 75.7%.

Investment Perspectives on IDFC First Bank Shares

Sumeet Bagadia, Executive Director at Choice Broking, indicated that IDFC First Bank shares are encountering resistance at the ₹60 mark, establishing a strong support level at ₹55.

• A breakout above ₹60 could signal a bullish trend, potentially driving the stock towards ₹70.
• For current shareholders, Bagadia recommends holding the stock with a stop-loss set at ₹55.
• New investors may consider acquiring shares at the present market value, targeting ₹70 while maintaining the same stop-loss.

Stock Performance Overview

Over the past month, IDFC First Bank shares have seen a slight increase of 2%. However, the stock has faced challenges, recording an 11% decline over the last three months and a significant 20% drop over a six-month period. Year-on-year, the decline stands at 27%. Despite these fluctuations, the bank’s stock has demonstrated strong long-term potential, boasting a remarkable 195% increase over the past five years, making it a promising multibagger for long-term investors.

As of 9:40 AM, IDFC First Bank shares were trading 2.40% lower at ₹58.91 on the BSE, reflecting ongoing market adjustments.

For further insights on banking stocks and market trends, consider exploring more articles on financial analysis and investment strategies.