India's IDFC First Bank falls; UBS starts with 'neutral' citing limited ROA

IDFC First Bank

11/07/2025 07:07

** IDFC First Bank IDFB.NS falls 2% to 75 rupees

** UBS initiates with "neutral", citing limited upside in return on assets (ROA) despite stable margins

** Sets PT of 85 rupees, implying 10% upside to last close

** Says Q1 performance may remain muted due to higher credit cost, margin pressure

** Expects net interest margin to remain stable at ~6.1% through FY25–FY28, with ROA at ~1% by FY27

** Sees improving cost/income and credit cost metrics; flags challenges in operating leverage, profitability

** Stock rated "buy" on average; median PT 77 rupees, per data compiled by LSEG

** YTD, IDFB gains 21%

 (Reporting by Rudra Pratap Singh in Bengaluru)

 ((rudrapratap.singh@thomsonreuters.com))