Archive · 9 Jan 2026
Nomura Predicts 23.5% Upside for IDFC First Bank
Nomura, a big investment company, thinks IDFC First Bank is a good investment right now.
They say the bank has finished a long period of spending a lot of money to grow and is now ready to make more money and be more profitable.
Nomura thinks the bank's stock could go up by 23.5% and has set a target price of Rs 105.
The bank has been focusing on giving out smaller loans to many different people instead of big loans to a few, which makes it safer.
They have also been spending money on branches, technology, and staff, which should help them in the long run.
However, there are some risks like the bank's costs not going down as fast as expected or people not paying back their loans.
Nomura initiates coverage on IDFC First Bank with a 'Buy' rating and a target price of Rs 105, predicting a 23.5% upside.
The bank is moving out of a long investment-heavy phase and entering a period of stable earnings and profitability.
IDFC First Bank has reduced its dependence on wholesale lending and focused more on retail loans.
The bank's fee income is stronger than many peers, supporting overall income.
Nomura highlights that operating costs are expected to ease as the bank gains scale and growth becomes more stable.
- Who
- Nomura, IDFC First Bank
- What
- Nomura initiates coverage on IDFC First Bank with a 'Buy' rating and a target price of Rs 105, predicting a 23.5% upside.
- When
- The transition phase is largely behind the bank, and it is moving towards sustained profitability.
- Where
- The bank is focusing on retail loans and reducing dependence on wholesale lending.
- Why
- Nomura believes the bank is moving out of a long investment-heavy phase and entering a period of stable earnings and profitability.
- Brokerage
- Nomura
- Rating
- Buy
- Target Price
- Rs 105
- Expected Upside
- 23.5%
- Bank
- IDFC First Bank
- Key Focus Areas
- Profitability, Operating Costs, Margins, Asset Quality
- Risk Factors
- Slower cost improvement, higher credit costs, weaker loan growth
