Here’s the rewritten article As IDFC First Bank prepares to unveil its Q2 results for 2024 on Saturday, investors are bracing themselves for a potential mixed bag. The bank’s share price has been under intense selling pressure, plummeting over 8% in the last five consecutive sessions on the National Stock Exchange (NSE), from ₹71.55 to ₹65.57 per share.
Despite the sell-off, market analysts remain optimistic about IDFC First Bank’s Q2 performance. According to Axis Securities, the bank’s advances and deposit growth momentum is expected to remain robust, driving healthy Net Interest Income (NII) growth. However, provisions are likely to increase, potentially putting pressure on net profit.
Axis Securities predicts that IDFC First Bank’s NII will rise 4.30% quarter-on-quarter and 24% year-on-year, driven by strong loan growth. However, provisions may increase 15.40% sequentially and 117% year-on-year, impacting net profit. The brokerage firm also notes that the bank’s asset quality could witness slight deterioration due to appreciation in credit costs during the July to September 2024 quarter.
Sugandha Sachdeva, Founder of SS WealthStreet, provided technical insights on IDFC First Bank’s share price, stating that immediate support is at ₹61, while immediate resistance is at ₹76. A breach below ₹61 may see the stock drop to ₹52, while a breakout above ₹76 could push it to ₹84.50. Sachdeva advised existing shareholders to hold the stock with a stop loss at ₹61 and recommended fresh investors to wait for a breakout above ₹76 on a closing basis.
IDFC First Bank is a private sector bank that offers a range of financial services, including consumer banking, wholesale banking, and investment banking. The bank’s Q2 results will be closely watched by investors, who will be keen to assess the impact of rising provisions on its profitability.
The Q2 results announcement is expected to provide clarity on the bank’s performance and potentially influence its share price trajectory. Investors will be keeping a close eye on the bank’s net profit, NII growth, provisions, and asset quality.
Stay tuned for the Q2 results announcement and further updates on IDFC First Bank’s performance.
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