Q3 Result: Bank Stock Declares 115% PAT Growth, Motilal Oswal Sees Shares Rising, Buy

Leading private sector bank, IDFC First Bank Ltd declared its Q3 results on January 21, 2023. The bank reported a sharp jump in its net profit which is more than doubled to Rs 605 crore in Q3 of the current financial year on the back of robust growth in core operating income. Earlier, IDFC First Bank Ltd announced Rs 281 crore net profit in Q3FY 2022.

Meanwhile, Motilal Oswal has given buy call to IDFC First Bank with target price of Rs 70 apiece and potential return of 19%.

Meanwhile, the Net Interest Income (NII) grew 27% YoY from Rs 2,580 crore in Q3 FY22 to Rs 3,285 crore in Q3 FY23. The bank's Core Operating Income (NII plus Fees, excluding trading gains) surged 32% from Rs 3,324 crore in Q3 FY22 to Rs 4,402 crore in Q3 FY23.

According to V Vaidyanathan, Managing Director and CEO, "We are happy to state that we have now built a strong foundation for the bank with CASA ratio at 50% and strong retail deposit franchise contributing 77% of the overall customer deposits."

"The deposit franchise continues to grow strong at the bank based on our customer friendly products and services, excellent customer service, strong brand known for corporate governance, ethics and digital innovations. We are now confident of growing our loan book in a stable manner on this strong platform," added Vaidyanathan.

1. Stock Performance & Return

The last trading price of the stock is Rs 59.35 apiece on BSE. Its 52-week high is Rs 64.30 apiece and 52-week low is Rs 28.95 apiece, respectively. The company has a market capitalisation of Rs 37,014.77 crore. The stock has given 4% return in last 3-months and 24% in last 1-year. In last 3-years, it has rallied 38%.

2. Motilal Oswal Gives Buy Call

Meanwhile, leading brokerage firm Motilal Oswal has assigned buy rating to IDFC First Bank with a target price of Rs 70 apiece. If you buy IDFC First Bank now, you will potentially receive 19% return.

3. About IDFC First Bank

IDFC First Bank (formerly IDFC Bank) is an Indian Private Sector Bank formed by the merger of the banking arm of Infrastructure Development Finance Company and Capital First Ltd., an Indian non-bank financial institution, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.