IDFC’s growth hits a speed bump. Is the stock’s bounce-back at risk?
IDFC First Bank reported more than 20% year-on-year growth in deposits and advances in FY25. Management aims to sustain this pace of growth over the next few years. This has enthused investors, resulting in the stock bouncing back from its 52-week low. It has rallied by 28% in just over two months, registering steep outperformance over the broader sector’s 13% return.
But recent events threaten to dent investors’ newfound confidence. Will this mark the end of a short-lived bounce-back, or is it just a blip in a long-term rally?
Stumbling block in fundraise plans
Management has ambitious plans for the bank’s growth. But it has seen a persistent drag on profits from…
