Morgan Stanley has reiterated its ‘Equal-weight’ rating on IDFC First Bank with a target price of ₹58 per share, slightly below the current market price of ₹60.37. The brokerage noted that the bank continues to post strong growth in gross funded assets, which rose 20.3% year-on-year in Q4FY25, broadly in line with the 20.4% growth seen in the previous quarter.
On the deposit front, Morgan Stanley estimated that the bank recorded a 6.4% quarter-on-quarter rise in deposits during Q4FY25, compared to 5.9% QoQ growth in the previous quarter. Total customer deposits also witnessed an improvement, growing 6.7% QoQ versus 4.3% QoQ in Q3FY25.
The brokerage acknowledged the bank’s consistent delivery on asset growth and improving deposit traction, but noted that current valuations leave limited room for meaningful near-term upside. It will be closely watching the bank’s margin trajectory and sustainability of deposit momentum in upcoming quarters.
Disclaimer: This article is for informational purposes only. Investors are advised to consult with certified financial advisors before making any investment decisions.
