IDFC First Bank - Loan Book Growth Remains Strong; Asset Quality To Improve Further: HDFC Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Retail Research.The retailisation strategy of IDFC First Bank Ltd. is playing out well with retail funded assets increasing to ~66% of total funded assets from ~30% at the end of FY19. On the liability side also, current account and savings account ratio has also grown significantly from 13% in FY19 to over 50% currently driven by higher interest rates offered by the bank on savings accounts. All legacy stressed assets have been identified and provided for and incremental provisioning is likely to reduce going forward. IDFC First Bank is gradually replacing its term borrowings with low cost deposits which would reduce cost of funds and aid in profit growth. New products launched are highly profitable resulting in strong improvement in operating leverage. We expect this phenomenon to continue to play out over the next few years, which will result in increase in overall profitability and return on equity/return on asset. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

IDFC First Bank - Loan Book Growth Remains Strong; Asset Quality To Improve Further: HDFC Securities

IDFC First Bank - Loan Book Growth Remains Strong; Asset Quality To Improve Further: HDFC Securities

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