In this blog, we will be talking about what type of indicators we should looking IDFC First Bank focusing on let's check on it.
IDFC First Bank is a private player in the India Banking Sector. IDFC First Bank was founded by the merger of IDFC Bank and Capital First in December 2018. Bank has continuously performed well since the commencement of the business. In this blog, we will consider 2 indicators that need to be considered before investing in IDFC First Bank.
Focus on Credit Card:
- The first indicator which we need to keep monitoring is credit card numbers.
- The data of India’s new acquisition of credit card business was out in February in which 10% of the new credit card were issued by IDFC First Bank.
- This means this bank is trying to acquire the double-digit market share for the issuance of a New Credit Card.
- Citi Bank is planning to sell the retail-oriented business. IDFC First bank could be one of them to target those assets.
- The forte of this company is of Retail banking, so these indicator needs to be checked.
- As there is a large about of credit card business in Citibank. If it acquires this business it will be an altogether different story.
- The company is having a focus on the retail bank, retail loan, in the same manner, it is focusing on its credit card business
- IDFC First Bank had also found new techniques to acquire new customers for Credit Cards.
Focus on Home Loans :
- The loan book of this bank is Rs 1.17 lakhs Cr. out of which almost 10% is towards Home loans which shows that company is trying to focus more on home loans.
- Bank has built the CASA deposit base by opening salary accounts in big corporates.
- Now IDFC First Bank is targeting these customers with the low rate of interest on home loans.
- Recently, the rate of interest of the saving account has come down from 7% to 5% which is comparatively more than the other banks.
- But people will not like to keep on changing from one bank to another bank.
- The acquisition of CASA book that has been more than 50% could be a game-changer.
- There could be a less spread on giving the loans to these retail customers. But Reach for it could increase so a stable book can be built.
These are the 2 indicators that need to be monitor in which how the company is going to acquire the business of credit card and how aggressive they are going to acquire customers for the home loan. But, one should not invest in this stock on the performance of these indicators only, but need to analyze the bank as a whole and then only should proceed with an investment. Do proper research and study before investing.