IDFC First Bank share price jumps after Q4FY25 business update. Should you buy?

IDFC First Bank share price jumped over 3 per cent on Thursday, April 3, after the lender posted a business update for the fourth quarter of the financial year 2024-25 (Q4FY25). 

The private sector bank stock has risen in the past three trading sessions, including today, recording cumulative gains of over 7%.

IDFC First Q4 business update

IDFC First Bank posted a 22.7 per cent year-on-year (YoY) surge in total business (loans & advances and customer deposits), rising from ₹3,94,718 crore as of March 31, 2024, to ₹4,84,394 crore as of March 31, 2025.

Loans & advances experienced a significant growth of 20.3 per cent YoY, increasing from ₹2,00,965 crore in the March quarter last year to ₹2,41,848 crore. On a quarter-on-quarter (QoQ) basis, the growth stood at 4.7 per cent, reflecting consistent credit expansion and increased lending activity.

Simultaneously, customer deposits grew robustly, rising from ₹1,93,753 crore as of March 31, 2024, to ₹2,42,546 crore by March 31, 2025, marking an impressive YoY growth of 25.2 per cent. The QoQ growth stood at 6.7 per cent, highlighting a steady inflow of deposits and improved customer confidence in the bank’s offerings.

CASA (Current Account Savings Account) deposits also showed strong momentum, growing from ₹94,768 crore as of March 31, 2024, to ₹1,18,260 crore by March 31, 2025, reflecting a YoY growth of 24.8 per cent. The QoQ growth of 4.6 per cent further demonstrated stable deposit mobilisation.

Despite the increase in CASA deposits, the CASA Ratio remained stable at 46.9 per cent as of March 31, 2025, compared to 47.2 per cent in March 2024 and 47.7 per cent in December 2024. This indicates a balanced deposit mix while ensuring liquidity and cost-effective funding.

In the March quarter, the Credit-Deposit (CD) Ratio stood at 93.8 per cent, reflecting a decline from 98.4 per cent recorded same period a year ago, and 95.7 per cent as of December 31, 2024.

Should you buy or sell IDFC First stock?

Sumeet Bagadia, Executive Director at Choice Broking, believes that the IDFC First Bank shares are on the cusp of a fresh technical breakout at ₹60.

“Once IDFC First Bank's share price gives a decisive breakout above ₹60 on a closing basis, we may expect the banking stock to touch ₹70 apiece soon. So, IDFC First Bank shareholders are advised to hold the scrip, maintaining a stop loss of ₹55. Fresh investors can also buy IDFC First Bank shares at the current market price for the near-term target of ₹70. However, they must maintain a stop loss at ₹55 while taking any fresh position on the counter,” Bagadia said.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.