Finsamudra Desk
Record earnings and shrinking bad loans pushed shares up nearly 10% to ₹88.76, even as the board cleared a ₹20,000 Cr capital raise to fund further growth.
IDFC FIRST Bank reported net profit of ₹1,075 crore for Q1 FY27, up 132.4% year-on-year from ₹463 crore, sending shares nearly 10% higher to a 52-week high of ₹88.76.
Net Interest Income rose 21% YoY to ₹5,972 crore, while Net Interest Margins expanded to 5.96%, pointing to stronger core lending profitability.
Asset quality improved sharply: Gross NPA fell to 1.51% and Net NPA dropped to 0.44%.
Alongside the results, the board approved an enabling resolution to raise up to ₹20,000 crore in fresh capital — ₹7,500 crore via equity and ₹12,500 crore via debt.
The bank is using its multi-year-high stock price and clean balance sheet to lock in capital-raising authorization now, positioning itself to grow while larger competitors face tight domestic deposit liquidity.
Investec has set a street-high target price of ₹115 on the stock following the results.
For DSAs and connectors sourcing loans through IDFC FIRST Bank, a ₹20,000 crore capital cushion signals room for continued disbursal growth rather than tightening credit lines — a contrast to lenders constrained by deposit liquidity.
Falling NPAs (Gross 1.51%, Net 0.44%) alongside margin expansion suggest the bank can afford to compete aggressively on pricing and turnaround time, which matters directly to loan agents and Main DSAs choosing which lender partners to prioritise in a tightening credit environment.
More on IDFC FIRST
Sources
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