Should I buy IDFC First Bank stock in 2025? Expert Insights for India

What is IDFC First Bank?

How much is IDFC First Bank stock?

The price of IDFC First Bank stock is slightly down this week. As of now, the share is trading at ₹68.65, reflecting a 0.87% drop in the last 24 hours and a 0.83% decline over the past week. The bank’s market capitalisation stands at ₹50,743 crore, with a strong average 3-month trading volume of 25.95 million shares.

The stock beta is 1.93, indicating higher-than-average volatility. Investors should keep an eye on short-term swings, as recent price moves signal potential for both rapid changes and long-term opportunities in the dynamic Indian banking sector.

Our full analysis on IDFC First Bank stock

After a thorough review of IDFC First Bank’s latest financial results and a rigorous assessment of its stock performance over the past three years, we have leveraged our proprietary analytics—integrating financial metrics, technical indicators, peer comparisons, and market sentiment—to form a holistic view of its opportunity landscape. Recent developments, both at the fundamental and technical levels, highlight pivotal changes in the bank’s growth profile, resilience, and market positioning. So, why might IDFC First Bank stock once again become a strategic entry point into India’s dynamic private banking sector in 2025?

Recent Performance and Market Context

IDFC First Bank has demonstrated remarkable resilience amid evolving sector dynamics, reflected in its steady share price appreciation and consistent outperformance within the private banking universe. As of May 19, 2025, the bank's stock is trading at ₹68.65, having delivered an approximate 5% gain over the past six months and maintained a moderately upward trajectory over the last year, notwithstanding recent short-term consolidation phases. The bank recently attracted positive market attention due to several major events.

• Capital Strengthening: The market has responded favorably to the board-approved equity capital raise of approximately ₹7,500 crore via Compulsorily Convertible Preference Shares (CCPS), with investments from prominent global institutions such as Warburg Pincus and Abu Dhabi Investment Authority. This substantial infusion fortifies IDFC First Bank’s balance sheet and provides firepower for expansion.
• Strategic Simplification: The recent merger with IDFC, which eliminated promoter holdings, signifies a streamlined and investor-friendly corporate structure—critical for enhancing governance and market confidence.
• Digital Milestones and Customer Reach: The bank’s relentless digital drive, illustrated by its highly rated mobile app, and its credit card customer base exceeding 3.5 million, underline its competitive edge in customer-centric banking.

From a macro perspective, the ongoing robust growth in the Indian economy, favourable regulatory environment for digital banking, and increasing formalization of financial services collectively provide a backdrop conducive to sustained sector outperformance. The bank’s position in retail-driven, low-cost deposit markets matches especially well with these sectoral growth currents.

Technical Analysis

The technical configuration of IDFC First Bank’s stock suggests a constructive structure and potential for renewed bullish momentum:

• Momentum Indicators: The RSI (14-day) is at 84.33—a clear reflection of recent buying pressure and an overbought condition in the very near term. While this sometimes hints at short-term consolidation, in trending markets, sustained elevated RSI levels are not uncommon for high-momentum stocks.
• MACD and Moving Averages: A bullish MACD (0.05) complements the picture, confirming underlying positive price momentum. Importantly, the current price is trading above the 50-day, 100-day, and 200-day moving averages, a classic confirmation of long-term bullish structure.
• Support and Resistance: The nearby support levels at ₹68.61 and ₹67.09 have held robustly through recent retracements, while resistance at ₹69.72 and ₹70.20 define the next technical thresholds.
• Bullish Signals: A critical bullish crossover among short-term moving averages and the bank’s long-term uptrend both indicate a favorable technical setup heading into the second half of 2025.

In summary, despite a short-term overbought reading, the stock’s price structure, momentum orientation, and support levels collectively position it as an attractive candidate for buyers seeking strength in sector leaders.

Fundamental Analysis

IDFC First Bank’s core operating performance and strategic refocus underline the robustness of its investment thesis:

• Growth Levers: Despite facing near-term profit headwinds—net profit in Q4 FY25 stood at ₹304 crore, reflecting a 58% YoY decline primarily from microfinance challenges—the bank’s core business remains on a strong growth footing. Net Interest Income rose by 9.8% YoY to ₹4,907 crore, and fee/other income increased by 5.7% YoY, reflecting the strength of its diversified operations.
• Attractive Valuation: At a P/E ratio of 26.04 and a price-to-book of 1.37, the stock remains reasonably valued relative to peers, especially considering its above-sector-average loan and deposit growth rates. The forward growth prospects and strategic capital injection make the existing valuation all the more compelling.
• Structural Strengths:
• Deposit Franchise: 79% retail deposits and a robust CASA ratio of 46.9% signal a sticky, low-cost funding base critical for long-term margin stability.
• Innovation/Market Position: The bank is widely recognized for its digital leadership, product innovation (notably in credit cards and digital platforms), and superior customer experience—a unique differentiator in a competitive landscape.
• Geographic and Demographic Reach: A physical and digital presence in over 60,000 locations and 1,002 branches allows for effective pan-India expansion, particularly into underpenetrated markets.

Note

While the microfinance portfolio presents a headwind, management’s strategy of refocusing on core retail banking and wealth management is already yielding tangible benefits, as evident in 25.2% YoY deposit growth and 27% YoY growth in assets under management.

Volume and Liquidity

High sustained trading volumes—averaging 25.95 million shares daily over the past 20 sessions—signal strong market confidence and attract both institutional and retail participation.

• Liquidity and Float: IDFC First Bank’s large and diversified free float, following the merger with IDFC and enhanced institutional ownership, supports dynamic pricing and reduces volatility risk.
• Market Access: The stock’s deep liquidity on NSE makes it suitable for a wide range of investment strategies, from short-term tactical trading to long-term accumulation.

Such liquidity characteristics underscore the market’s conviction in the underlying story and can act as an accelerant for upward moves during favorable re-rating cycles.

Catalysts and Positive Outlook

Several forward-looking factors reinforce the positive outlook for IDFC First Bank:

• Capital Infusion: The ₹7,500 crore capital raise not only improves the CET-1 ratio but also paves the way for accelerated credit growth and branch expansion, supporting the management’s ambition for 20% loan book growth in FY26.
• Product and Platform Growth: The expansion of its credit card portfolio, a new digital banking platform, and continuous improvement in wealth management offering (27% YoY AUM growth) provide new revenues streams and reinforce cross-sell opportunities.
• Digital Banking Excellence: Award-winning digital capabilities and superior app ratings make it one of the frontrunners in the tech-enabled banking space—a key driver as Indian customers shift preference toward digital-first solutions.
• ESG and Governance: The simplified shareholding structure, marquee institutional investors (such as Warburg Pincus and ADIA), and a strong leadership track record are supportive for investor confidence in both strategy and execution.
• Sectoral Winds: The Indian banking sector continues benefiting from regulators’ digitization push, rising financial inclusion, formalization of the economy, and a robust macro-growth environment, all of which create a positive backdrop for retail-focused private banks.

The sum of these catalysts signals an environment primed for upward earnings revisions and valuation expansion in the near to medium term.

Investment Strategies

IDFC First Bank’s profile makes it suitable for a spectrum of investment strategies:

• Short-Term Entry: For momentum traders, the current consolidation above support levels and positive technical bias provide a window for tactical entry, especially if the stock confirms a breakout above the ₹70.20 resistance zone or retraces toward the ₹68.61–₹67.09 support cluster.
• Medium-Term Positioning: As new capital is deployed and operational headwinds from the microfinance segment abate, medium-term positions stand to benefit from re-rating opportunities and upcoming catalysts, such as Q2 FY26 results or further updates on digital and product expansion.
• Long-Term Holding: The combination of robust deposit franchise, digital innovation, proven management, and strong capital base make IDFC First Bank a compelling addition for portfolios seeking to capture the multi-year growth story of Indian financials. The current P/B of 1.37 and analyst target price of approximately ₹89.25 (+30% upside) suggest notable room for appreciation amidst a structural uptrend.

Investors seeking optimal positioning may look for entry points during short-term consolidations or ahead of major strategic announcements, taking advantage of volatility and technical pullbacks.

Is it the Right Time to Buy IDFC First Bank?

On a holistic basis, IDFC First Bank exhibits several compelling strengths that justify serious renewed attention: a rapidly growing deposit base, best-in-class digital banking capabilities, aggressive capital reinforcement from global institutional investors, and a laser-sharp focus on core retail and wealth management operations. Despite temporary earnings softness emanating from the microfinance portfolio, the bank has demonstrated resilience and adaptability—bolstered by a strong CASA ratio, scalable digital infrastructure, and a seasoned leadership team.

The current valuation remains reasonable when benchmarked against both its historical averages and high-growth peers, while technical momentum and liquidity provide further tailwinds for upward price action. With ambitious loan growth targets for the coming year, a host of positive catalysts on the horizon, and a supportive sector backdrop, the stock seems poised to enter a new bullish phase.

For investors looking to participate in India’s private sector banking growth story, IDFC First Bank stands out as an attractive candidate that appears primed for value creation. The combination of robust fundamentals, strong market positioning, and imminent growth drivers sets the stage for potential outperformance in both the near and long term.

IDFC First Bank, supported by its capital strength and digital leadership, seems to represent an excellent opportunity for investors seeking exposure to India’s expanding financial sector—one that is likely to reward conviction with disciplined positioning.

How to buy IDFC First Bank stock in IN?

Buying IDFC First Bank stock online is both simple and secure when you use a regulated broker in India. As a retail investor, you have two main ways to gain exposure: (1) purchasing the shares outright (“cash buying”), or (2) speculating on the price using Contracts for Difference (CFDs). Both methods are fully digital and designed to be user-friendly, offering flexibility to suit different investing styles and objectives. Each method has its own mechanics, costs, and risk profile—so it’s wise to explore a broker comparison (see further down this page) before you start.

Spot buying

Cash purchase involves buying actual IDFC First Bank shares through an NSE-registered broker, and holding them in your Demat account. You become a shareholder, entitled to dividends and voting rights. Brokers in India typically charge a fixed commission per order, such as ₹100–₹250, or a small percentage tariff (like 0.1%–0.5%).

Example

If the current IDFC First Bank share price is ₹68.65 and you invest $1,000 (about ₹83,000), you could purchase around 1,205 shares (₹83,000 / ₹68.65 ≈ 1,209; factoring in a ₹400 fee, you get about 1,205 shares).

✔️ Gain scenario:
If the share price rises by 10% to ₹75.52, your holding’s value becomes ₹90,966.
Result: That’s a ₹7,966 gain (about $96), or +10% on your investment, excluding taxes.

Trading via CFD

CFDs allow you to trade on the price movements of IDFC First Bank shares, without owning the underlying stock. This is typically done through specialised CFD platforms, which charge a “spread” (the difference between buy and sell prices) and a daily overnight financing cost if positions are held beyond a day.

Example

Imagine you put in $1,000 (₹83,000) and use 5x leverage—your exposure is ₹415,000.

✔️ Gain scenario:
If IDFC First Bank’s share price rises by 8%, your CFD position gains 8% × 5 = 40%.
Result: That’s a ₹33,200 gain (about $400), on a ₹83,000 margin deposit (excluding spreads and financing fees).

Final advice

Before investing, it’s important to compare brokerage fees, trading conditions, and platform features as these can greatly affect your net returns—whether you’re buying shares directly or using CFDs. Your choice will ultimately depend on your investment goals, risk appetite, and whether you prefer long-term ownership or more active, leveraged trading. To help you decide, consult the broker comparison tool provided further down this page. Investing in IDFC First Bank is now more accessible than ever—choose the method that best aligns with your personal strategy!

Our 7 tips for buying IDFC First Bank stock

The latest news about IDFC First Bank

IDFC First Bank secures board approval for a ₹7,500 crore equity capital raise from Warburg Pincus and ADIA. This significant infusion from marquee global investors not only enhances the bank’s capital adequacy but also strengthens its ability to support future growth and absorb short-term pressures. The market has responded positively to this move, viewing it as a strong endorsement of the bank’s fundamentals and long-term potential, especially at a time when the sector is witnessing heightened competition and tightening regulatory norms.

The bank completed its merger with IDFC, resulting in a simplified corporate structure and the removal of promoter holding. This strategic merger streamlines operations, enhances governance, and provides greater flexibility for institutional investments, which is especially relevant for attracting both domestic and international investors. The new, transparent ownership model is expected to bolster market confidence and support the bank’s ambitious growth agenda across the Indian private banking sector.

IDFC First Bank reported robust growth in core operations, with net interest income up 9.8% and healthy gains in customer deposits. While net profit for Q4 FY25 declined due to challenges in the microfinance portfolio, the underlying business remains resilient, supported by strong performance in the retail segment and a 25.2% year-on-year growth in customer deposits. With 79% of total deposits now retail and a CASA ratio of 46.9%, the bank continues to demonstrate the strength of its low-cost deposit franchise, which is crucial for sustaining profitability in a competitive environment.

Digital banking leadership advances as the bank’s mobile app achieves top ratings and credit card issuance surpasses 3.5 million. These milestones underscore IDFC First Bank’s success in leveraging technology to scale its customer base, improve customer experience, and diversify its fee income streams. The high digital adoption rates and the bank’s innovative products reinforce its reputation as a frontrunner in India’s rapidly evolving banking landscape, providing a foundation for long-term scalable growth.

Technical indicators suggest bullish momentum and long-term uptrend, with recent bullish crossovers in major moving averages. Despite the stock’s RSI indicating potentially overbought conditions in the short term, MACD and moving average signals remain constructive. The stock trades above its 50, 100, and 200-day moving averages, supporting favorable sentiment among market participants and aligning with analyst consensus targets that indicate meaningful upside from current levels.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.