Share of IDFC First Bank Limited is currently trading at around Rs.67/-Existing as well as Prospective Investors are asking for IDFC First Bank Share Price Target 2025 as well as targets for 2030,2035 & 2040. In this article, we will discuss about the business prospects and financial performance of the Bank and based on our discussion and analysis will tell you about the IDFC First Bank Share Price Target 2025 as well as targets for 2030, 2035 and 2040.
Discussion & Analysis of Business & Financial performance with future Business Prospects of IDFC First Bank Ltd:
IDFC First Bank Ltd. has demonstrated a mixed financial performance in FY25, marked by robust growth in deposits and advances, yet tempered by profitability challenges stemming from its microfinance segment.
Current Business Performance
In Q4 FY25, the bank reported a significant 58% year-on-year decline in net profit, amounting to ₹304 crore, primarily due to elevated provisions linked to stress in the microfinance portfolio. For the full fiscal year, net profit stood at ₹1,525 crore, reflecting a 48.4% decrease compared to the previous year.
Despite these profitability challenges, the bank achieved notable growth in its core operations. Net Interest Income (NII) increased by 9.8% year-on-year to ₹4,907 crore in Q4 FY25, supported by a 20.4% year-on-year expansion in loans and advances, which totaled ₹2,41,926 crore. Retail, rural, and MSME loans grew by 18.6% year-on-year to ₹1,97,568 crore. Conversely, the microfinance portfolio contracted by 28.3%, reducing its contribution to the total loan book from 6.6% to 4
The bank’s deposit base also exhibited strong growth, with total customer deposits rising by 25.2% year-on-year to ₹2,42,543 crore. Retail deposits increased by 26.4% to ₹1,91,268 crore, and CASA deposits grew by 24.8% to ₹1,18,237 crore, maintaining a healthy CASA ratio of 46.9%.
Asset quality remained stable, with the Gross Non-Performing Assets (GNPA) ratio improving marginally to 1.87% and the Net NPA ratio slightly increasing to 0.53% as of March 31, 2025. Excluding the microfinance segment, asset quality metrics showed improvement, indicating resilience in the bank’s core lending portfolios.
Future Business Prospects
Looking ahead, IDFC First Bank is poised to strengthen its capital base and support future growth through a significant equity infusion. The bank has announced plans to raise approximately ₹7,500 crore by issuing Compulsorily Convertible Preference Shares (CCPS) to affiliates of Warburg Pincus and the Abu Dhabi Investment Authority (ADIA), pending regulatory and shareholder approvals. This capital raise is expected to enhance the bank’s Capital Adequacy Ratio (CAR) from 16.1% to 18.9%, providing a solid foundation for its next phase of expansion.
The bank’s strategic focus on retail, rural, and MSME segments, coupled with its efforts to de-risk the loan book by reducing exposure to the microfinance sector, positions it well for sustainable growth. Management has expressed confidence in achieving a 20% annual growth in the loan book, leveraging the bank’s strong deposit franchise and stable asset quality.
In conclusion, while IDFC First Bank faces near-term profitability pressures due to challenges in the microfinance sector, its robust growth in core banking operations, stable asset quality, and planned capital augmentation suggest a positive outlook for the bank’s future performance.
Share Price Targets:
IDFC First Bank Share Price Target 2025
Based on the above discussion and analysis, the share price of IDFC First Bank Ltd is likely to touch the level of around Rs.75-80 in 2025
IDFC First Bank Share Price Target 2030
Based on the above discussion and analysis, the share price of IDFC First Bank Ltd is likely to touch the level of around Rs.150-175 in 2030
IDFC First Bank Share Price Target 2035
Based on the above discussion and analysis, the share price of IDFC First Bank Ltd is likely to touch the level of around Rs.375-400 in 2035
IDFC First Bank Share Price Target 2040
Based on the above discussion and analysis, the share price of IDFC First Bank Ltd is likely to touch the level of around Rs.850-900 in 2040
Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. News4You does not offer investment advice and does not encourage any action based on its content.
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