Banking & NBFCs · Daily brief
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.
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