UBS ON IDFC FIRST BANK
NEUTRAL | TP ₹92 vs ₹78
• Earnings outlook improving.
• Asset quality improving, but high cost-to-income ratio may limit RoA expansion.
• Branch expansion to support loan growth; margins likely to remain stable.
• Asset quality improvement appears largely priced in.
• High-yielding loan book growth expected to pick up gradually, but may lag overall loan growth.
• NIM seen stable at 5.8% over FY27–29.
