IDFC First Bank Shares Surge Ahead of Strong Q3FY25 Update: Analysts Predict Continued Growth

IDFC First Bank’s share price saw notable gains on Friday, fueled by growing excitement in the banking sector and anticipation surrounding the bank’s third-quarter business update. Despite opening lower, the stock quickly attracted bullish interest, reaching an intraday high of ₹65.84 on the NSE, before closing at ₹65.50—around a 1.25% rise from Thursday’s ₹64.68.

Strong Q3FY25 Update Sparks Investor Confidence

The positive momentum comes ahead of IDFC First Bank’s Q3FY25 financial results. According to market experts, the bank reported impressive year-on-year (YoY) growth, with overall financials showcasing a solid performance. Loans and advances surged by 21.9%, signaling robust demand for credit, while total business grew by approximately 25% YoY in Q3FY25.

IDFC First Bank also reported strong growth in customer deposits, up by 28.8% YoY to ₹2,27,266 crore, highlighting increased confidence from depositors. Additionally, the bank’s focus on expanding its Current Account Savings Account (CASA) balances and strengthening its retail banking operations has contributed to its continued growth.

Analysts Bullish on Stock’s Outlook

Experts predict further upside potential for IDFC First Bank shares, particularly ahead of the official Q3 results. Anshul Jain, Head of Research at Lakshmishree Investment and Securities, emphasized the bank’s strong financial growth, particularly in its credit portfolio and deposit base.

On the technical side, Mahesh M Ojha, AVP of Research at Hensex Securities, sees a positive outlook for the stock. With a solid support level at ₹62, Ojha suggests that IDFC First Bank could move up to ₹72, and potentially as high as ₹78, if the stock breaks above ₹72. He recommends holding the stock with a stop loss at ₹62, while fresh investors can consider entering at current levels for potential short-term gains.

Key Q3FY25 Highlights

As of December 31, 2024, IDFC First Bank’s loans and advances reached ₹2,30,947 crore, growing 21.9% YoY, compared to ₹1,89,475 crore in Q3FY24. This growth also reflects a steady sequential increase of 3.7%, indicating a consistent upward trend in the bank’s credit portfolio.

Customer deposits showed significant growth, rising by 28.8% YoY to ₹2,27,266 crore, underscoring the bank’s strong depositor base.

With its continued focus on expanding its retail operations and robust financial growth, IDFC First Bank remains an attractive option for both existing shareholders and new investors.

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