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IDFC First Bank Q4 earnings preview: Analysts predict 25.2% surge in NII, 8% dip in PAT
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
According to a CNBC-TV18 poll, analysts anticipate the bank’s net interest income (NII) to rise by 25.2% year-on-year, but profit after tax may dip by 8%. Broking firm Motilal Oswal expects deposit growth to be strong at 32.8% YoY. Additionally, the firm anticipates a rise in loan growth, pegging it at 23% on a YoY basis.
IDFC First Bank is set to report its financial performance for the quarter ended March 2024 (Q4FY24) on Saturday, April 27.
According to a CNBC-TV18 poll, analysts anticipate the bank’s net interest income (NII) to witness a significant uptick, projecting a robust growth of 25.2% year-on-year (YoY) to reach ₹4,502.2 crore. Moreover, sequentially, the NII is expected to climb by approximately 5%.
However, the profitability may take a slight dent as the profit after tax for Q4FY24 is anticipated to dip by 8% to ₹738.6 crore compared to ₹802.6 crore reported in the corresponding quarter of the previous fiscal year.
However, broking firm Motilal Oswal expects deposit growth to be strong at 32.8% YoY, coupled with a sequential increase of 5.3%. Additionally, the firm anticipates a rise in loan growth, pegging it at 23% on a YoY basis.
According to Morgan Stanley, the bank may see improvements in certain key metrics. They anticipate net interest margin (NIM) to witness a positive uptick, potentially improving by 41 basis points. However, this optimism is tempered by expectations of a 17 basis points increase in credit costs compared to Q4FY23.
Meanwhile, the street expects IDFC First Bank’s asset quality to remain stable or improve on a sequential basis. In Friday’s trading session, the stock of IDFC First Bank rose by 1.56% to close at Rs 84.70.
The Mumbai headquartered bank has a market capitalisation of ₹59,964.28 crore and has delivered a negative return of around 1% in the past six months.
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