IDFC First Bank share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about IDFC First Bank share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned IDFC First Bank share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
Also read: Best stocks below Rs 50 in India.
IDFC first bank share price target 2022, 2023, 2024, 2025, and 2030
Will IDFC first bank become another HDFC bank? well, let’s dive into it, In 1997, IDFC limited was started for project financing of private-sector infrastructure development. Initially, after starting IDFC limited the main focus was only on project financing for infrastructure development. In the year 2005, Rajiv Lall joined the company who is the present chairman of the company.
After joining the company Rajiv Lall started diversifying the company into multiple businesses like IDFC mutual fund, IDFC capital market and played a major role in the growth of IDFC Limited.
In the year 2013, when RBI started accepting fresh banking licenses, IDFC Limited has applied for a banking license and on 24 June 2015, RBI has granted the banking license for IDFC limited.
IDFC limited started banking operations on 1 October 2015, at that time IDFC bank was a part of IDFC Limited. On 6 November, they demerged IDFC bank from IDFC limited and listed it in the stock market.
The main reason why you need to invest in IDFC first bank is because of the CEO & MD of the company V.Vaidyanathan.
Not only you, almost every person who is investing in IDFC first bank in the hope that it will become HDFC bank is only because of V.Vaidyanathan.
CASA deposits in CR
Net interest margin (%)
IDFC First Bank share price target 2022
Geojit has a buy call on IDFC First Bank with a target price of 58 rupees. The current market price of IDFC’s first bank is 48 rupees. The time period given by the analyst is one year.
Goejit Research report on IDFC first bank
IDFC first bank has shown improvement in key business figures including margins and lending mix which is positive for the long term. Management is also confident in business growth as economic activities started picking momentum. The collection efficiency also reached pre covid levels during the quarter.
Net interest income ( NIM ) reported a growth of 27.4% on a YoY basis and reported net interest margin ( NIM ) improved to 5.76% in Q2FY22, compared to 5.51% in Q1FY22.
Asset quality improved however slippage remained elevated. GNPA/NNPA stood at 4.27%/2.09% compared to 4.65%/2.32% during the previous quarter. provision coverage ratio improved to 52.1%.
ICICI Direct
ICICI direct is bullish on IDFC first bank has recommended a buy rating on the stock with a target price of 60 rupees in its research report.
ICICI Direct research report on IDFC first bank
ICICI direct retained buy rating on the stock valuing IDFC first bank at 1.6x FY23E ABV and arrive at the revised target of Rs 60 per share.
- On track for most parameters to achieve midterm guidance.
- Non-interest income came in at 849 crores, led by a sequential increase in treasury income, through fee income remained healthy.
- Total funded assets were at rupees 1,13,794 crore, up 9% YoY, down 2.8% QoQ. Retail funded assets were at rupees 72,766 crore, up 30% YoY.
IDFC First bank stock has given a 30% return in the past three years while the stock price has jumped 2x in the past year. A rise in stress remains a near-term overhang but a gradual improvement in margin and operational performance is expected to aid return ratios.
ShareKhan
Sharekhan is bullish on IDFC first bank has recommended a buy rating on the stock with 40-45% upside potential which is 68 rupees.
Sharekhan report says the stock is available at a steep discount of 59% to its subsidiaries value; the discount is higher than most other listed holding companies, which makes it attractive and offers investors a favorable risk-reward.
According to our analysis, IDFC first bank share price target for 2022 is Rs 65.
| IDFC First Bank share price target 2022 |
| Rs 65 |
IDFC First Bank Share Price Target 2023
While discussing about any company, no one will focus on any individual person but while discussing about IDFC first bank you need to know about the achievements of V.Vidyanathan.
From 1990 to 2000, V.Vaidyanath worked as a Business Head for the auto business in Citi bank. After that, when ICICI Bank was still a local bank he worked as a country head for retail lending business for two years and then worked as a country head for retail banking and later worked as an executive director for retail banking and also one of the board members.
V.Vaidyanathan has played a key role in the development of ICICI bank from a domestic bank to a universal bank. In the journey, V.Vaidyanthan has opened more than 1,400 branches in 800 cities across the country. In that period, ICICI bank was achieved 25 million customers and also acquired 1,35,000 crore retail loan book.
after that, he bought a company called future capital which is already running with huge losses. After buying he changed the company name to capital first. Later V. Vaidyanathan transformed the company from a loss-making company to generate a revenue of 330 crores per year.
In the year 2018, IDFC bank was merged with capital first and changed its name to IDFC first bank. V.Vaidyanathan was appointed as MD & CEO of the company.
V.Vaidyanathan has set some targets for the bank to achieve in the next five years.
Also read: Trident fundamental analysis.
Growth targets
- The bank plans to grow retail loan asstes from 36,236 CR in 2018, to Rs 1,00,000 Cr in the next 5 years.
- The bank plans to wind down loans to infrastructure to NIL within five years ( Rs 22,710 Cr as of Dec 2018).
- The bank plans to reduce the total wholesale loan assets including the infrastructure loans.
- Net interest margin: the bank plans to extenf the NIM to about 5% to 5.5% in the next 5 years based on better cost of funds and carefully selecting the product segments where there will be strong proven capabilities over the years.
- ROA of 1.4% to 1.6%.
- ROE of 13% to 15%.
By considering all these factors, we are positive on IDFC First Bank, and the IDFC First Bank share price target for 2023 is Rs 78.
| IDFC First Bank share price target 2023 |
| Rs 78 |
IDFC First Bank Share Price Target 2024
For IDFC First bank business, the market opportunities are practically unlimited for its lines of businesses. The credit outstanding in the country including banks and NBFCs is about 120 lakh crore, and as per CIBIL TU report, the outstanding for commercial loans > 50 crore is 54 lakh crore (Source: June’ 21 MSME report). Thus the MSME, retail and rural and agriculture markets alone is about 65 lakh crore and growing. India is moving from unorganized to organized underserved to served, and technology is supporting this change.
IDFC first bank is well-positioned to ride the technology wave. IDFC first bank merely Rs 75,000 crore in this market, which is barely above 1% of this market. For IDFC first bank to grow at 25% is not a big deal. There is no dearth of opportunities in our great country, and IDFC first bank has the necessary capabilities.
The Bank undertook a number of initiatives to offer best-in-class products and digital platforms to small businesses. With this objective, the Freedom Current Account & World Business Account were launched. These variants provide competitive transaction charges across all domestic and international trade transactions. This provided customers the ability to access their accounts anytime and from anywhere without charges. The Bank supplemented this with its best-in-class business account management app and digital trade platform. The digital platform provides end-to-end support from transaction initiation to regulatory closure with integrated forex rate booking – all on a single platform.
As part of customer offerings in this space, the Bank curated ‘Beyond Banking offers’ by partnering with various fin-techs in the space of ERP solutions, HRMS payroll, legal, taxation advisory, school management, society management, etc. Our Beyond Banking product suite now has over 50 offers and is growing at a healthy pace with an overwhelming market response. In support of India’s start-up story, the Bank supports customers in their early stages of business with preferential pricing and Beyond Banking offers.
The merchant acquiring solution was also launched by the Bank along with a simplified UPI-QR solution to strengthen the proposition for retail customers. These solutions have found healthy adoption and acceptability by customers. By considering all these factors, IDFC first bank share price target for 2024 is Rs 94.
| IDFC First Bank share price target 2024 |
| Rs 94 |
IDFC First Bank Share Price Target 2025
The Government Banking division continues to maintain and further deepen strategic partnerships with Central and various State Governments, Public Sector Undertakings, and other government entities through new banking solutions, backed by technological capabilities and agile services. Proactive participation in the e-Governance initiatives of the government through customized solutions to meet their requirements and ease of transacting for the citizens has been the division’s focus area. The Bank provides multiple product suites to government clients including Account Management Services, Corporate Salary Solutions, Transaction Banking, e-Auction, and other digital solutions, benefiting the citizens for example Contribution to PM CARES, Collections under Municipal, Housing, and Education segment, and many others.
The Government Banking division continues to engage in discussions with the key stakeholders to understand the requirements and opportunities to add value to the Government eco-system. The Group works closely with the branch banking teams to fulfill their banking needs at all levels viz. State, Districts, Blocks, Panchayats, and Villages on the PFMS platform. This synergy has resulted in the Bank being empanelled by various state governments for providing banking services.
The Bank made significant progress in growing its Wealth Management business. The Bank’s wealth management AUM recorded 2x growth during the year to 3,100 crores. It adopted the multi-partner open architecture insurance distribution model in FY21, adding two new life insurance partners – ICICI Prudential Life and Bajaj Allianz Life. The year also saw the launch of the Bank’s digital wealth management solutions through the new mobile app and net banking platforms.
The new wealth management platform now offers unique features such as ‘Consolidated Investment Dashboard’ where the customer can access all investments such as Mutual Funds, Fixed Deposits, Gold Bonds, PMS among other investments on a single dashboard. The Bank received two awards during the year – ‘The Digital Banker’ awards for Best Wealth Management Digital Experience and Excellent User experience for Netbanking. For its Private Banking clients, the Bank added niche solutions such as Offshore Investment Products and Immigration-based investment products to its product suite. By considering all the above-mentioned factors, IDFC First bank share price target for 2025 is Rs 128.
| IDFC First Bank share price target 2025 |
| Rs 128 |
IDFC First Bank Share Price Target 2030
The Bank expanded its range and reach of retail loans in FY 21 to enable customers, largely individuals and small businesses to avail of financial services in the most hassle-free and convenient manner. The Bank’s Retail Assets grew to 73,673 crores on March 31, 2021, from 57,310 crores as of March 31, 2020, registering 29% growth. The retail loan book as of March 31, 2021, includes the ECLGS portfolio of 1,687 crores. Excluding this, the retail loan book growth YOY in FY21 was 26%. Including inorganically acquired portfolios where underlying assets are retail loans; the Bank’s retail loans as a proportion of total funded assets were at 67% as of March 31, 2021.
Through FY21, the Bank continued to sustain the momentum garnered in FY20 with a significant focus on expanding the product offering in line with market demand and digitisation to improve customer experience. The Bank’s Home Loans portfolio was backed by a strong, segmented approach, focus on portfolio quality, and enhancements in digital customer journeys. This helped the business post sustain growth after the lockdown and clock higher disbursement figures. During the year, the Bank launched digital customer onboarding experiences.
During the year, the Bank started providing holistic banking solutions through its liability branches by serving the needs of both asset and liability customers. The Bank’s Personal Loan business expanded its presence to 103 locations with a good growth in the overall book in FY21. The Bank’s consumer durable business witnessed a sharp pick-up in demand post lockdown. The Bank used advanced machine learning techniques and adopted unique process flows to improve its origination processes The Bank successfully leveraged new business models such as self-fulfillment journeys for customer on-boarding by dealers and collaborated with partners to expand its retail distribution.
New product variants such as personal line of credit, travel line of credit, merchant loans, and Buy Now Pay Later loans in partnership with major e-commerce and financial services entities across India were launched during the year. The Bank has been able to achieve a 3X increase in month-on-month disbursals and a 6X jump in assets under management in this product segment in FY21.
In the last financial year FY21, the Bank launched its credit card product with multiple variants targeted for a different customer segment. The product was introduced with many unique and differentiated features like dynamic interest rate
(APR), lifetime free, interest-free cash withdrawals (up to next billing cycle date or 48 days, whichever is earlier), etc. Since its launch in January 2021, the Bank has already issued more than 300,000 credit cards till June 2021. The Bank witnessed a 27% growth in Two-wheeler loans and 12% in the Used Car loan books in FY21.
The Commercial Vehicle loan book also grew by 21%, supported by an increased focus on the retail and small commercial vehicles segment. The Bank announced additional tie-ups with preferred financers for all three segments, resulting in an expansion of its customer base. By considering all these improvements and the opportunities that banks have to grow in the future, IDFC First Bank share price target for 2030 is Rs 510.
| IDFC First Bank share price target 2030 |
| Rs 510 |
IDFC First Bank share Price Target 2022, 2023, 2024, 2025, and 2030
| Year | IDFc First Bank Share Price Target |
|---|---|
| IDFC First Bank share price target 2022 | Rs 65 |
| IDFC First Bank share price target 2023 | Rs 78 |
| IDFC First Bank share price target 2024 | Rs 94 |
| IDFC First Bank share price target 2025 | Rs 128 |
| IDFC First Bank share price target 2030 | Rs 510 |
Conclusion
In this article, we have provided the fundamental analysis of IDFC first bank and the target price of IDFC first bank. IDFC first is focusing on decreasing its wholesale book and focusing on retail loan book. IDFC first is a great stock from the banking sector for long-term investment. IDFC first bank has the potential to become another HDFC bank. IDFC’s first bank MD & CEO V.Vaidyanathan has that vision to make IDFC first bank also a big player in the banking sector.
Frequently asked question
What is the target of IDFC first bank?
IDFC first bank share price target for 2022 is Rs 65, IDFC first bank share price target for 2023 is Rs 78, IDFC first bank share price target for 2024 is Rs 94, IDFC first bank share price target for 2025 is Rs 128, and IDFC first bank share price target for 2030 is Rs 510.
Is IDFC first bank a multi-bagger?
Yes, IDFC first bank has the potential to become a multi-bagger or in other words, we can say the next HDFC bank. IDFC’s first bank MD & CEO V.vaidyanathan has set some growth targets for 2023, but the bank reached the targets even before 2023. The bank CASA ratio is currently above 50% which is awesome and the bank is continuously increasing its CASA ratio and decreasing its wholesale loan book. The bank is moving in the right direction.
How strong is IDFC first bank?
A company is strong only when its management is strong, IDFC first bank has very strong management led by V.vaidyanthan who has very good experience in the banking sector and is the man behind the success of ICICI bank.
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