Nuvama Institutional Equities has maintained a Hold rating on IDFC First Bank, with a target price of ₹68, indicating a slight downside of around 3.7% from the current market price of ₹70.63.
The brokerage noted a reduction in stress within the microfinance (MFI) segment, with lower slippages and SMA accounts during Q1FY26. However, overall slippages remained elevated, primarily due to a ₹1.08 billion default from an ATM service provider — which has been fully provided for — along with an uptick in slippages from non-MFI segments.
Despite these pressures, Nuvama highlighted that the bank’s loan growth continues to outpace peers.
Disclaimer: This article is based on Nuvama’s brokerage report and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
