Angel Broking is a financial services company providing broking and advisory services, margin funding, loans against shares, and financial products distribution to its clients. One of the main clients of Angel Broking is IDFC First bank.
Recently, the target price of IDFC First Bank has been upgraded from Rs 40 to Rs 44. The current market price of the stock up by 0.58 per cent at 11:13 hours on the NSE. The intraday high of stock touched Rs 355.85 while, the intraday low is Rs 351.50. Its previous closure was Rs 351.90. The brokerage expects an upside of 22 per cent in the stock price.
“We changed the target price upwards post the recent report by the RBI’s Internal Working Group on proposed changes in ownership guidelines for Indian Private Sector Banks. Under the new guideline the RBI has proposed that the ceiling on promoter ownership be increased to 26 per cent from the current 15 per cent while Banks currently under NOFHC structure have been allowed an exit from such a structure through the reverse merger route if they do not have other group entities in their fold,” says Angel Broking.
The company’s consolidated net profit soared 288.30 per cent to Rs 74.48 crore in Q2 FY21 from Rs 19.18 crore in Q2 FY20. Total income during the quarter jumped 76.1 per cent year-on-year (YoY) to Rs 317.92 crore.
IDFC First Bank’s CASA ratio improved from 10.4 per cent in Q3FY19 to 40.4 per cent. The Bank had raised Rs 2,000 crores of fresh equity capital during Q1FY21 post.