IDFC First Bank gains 14% in two days after June Q1 results
Performance Today : Outperformed Sector by 7.79%
Consecutive Rise: Stock has been gaining for the last 2 days and has risen 12.62% in the period
Price Increase with Higher Volumes: Price has risen by 8.72% and Vol has risen by 34.97% (Vol compared with 5 day avg vol till 04:00 PM)
Day’s High: Stock touched an intraday high of Rs 42.90 (10.00%)
Wide Range: The stock has traded in a wide range of Rs 4.35
Shares of IDFC First Bank gained 10 per cent to Rs 43 apiece on Friday, gaining 14 per cent in the past two trading days on the BSE, despite a net loss of Rs 617 crore in June quarter (Q1FY20). The loss was due to higher provisioning for stressed assets, financial data of the bank showed.
The private lender had posted a net profit of Rs 181 crore in the year-ago quarter.
The performance during the quarter was impacted primarily because of the additional provisioning taken during Q1FY20 towards two identified financial services (one housing finance company and one financial company) loan accounts to the extent of 75 per cent of the total exposure of Rs 1,461 crore,” IDFC Bank said post result announcement.
These financial services companies have been recently downgraded by the credit rating agencies.
With provision cover of 75 per cent, the management believes the bank has adequately provided for these accounts and no incremental provisions are now expected on account of these in the near future, it added.
The bank also upgraded guidance and project of the gross yield of the bank’s loan book to be at 13.5 per cent in the next five years from 9.2 per cent earlier.