IDFC First Bank is a new-age private sector bank formed in 2018 through the merger of IDFC Bank and Capital First. Headquartered in Mumbai, it offers a full suite of banking services across retail, MSME, corporate, and digital segments. The bank has rapidly expanded its branch network and product portfolio, including home loans, credit cards, and wealth management. However, recent financial performance has been volatile, with sharp profit contraction in FY2025 due to elevated provisioning and margin pressure. As of January 2026, IDFC First Bank remains a high-risk, high-potential stock for investors seeking exposure to India’s evolving private banking landscape. This article provides a data-driven outlook on the IDFC First Bank share price target 2026–2030, based on verified financials from Screener.in, Finology, and Groww.
IDFC First Bank: Company Overview
- Founded: 2018 (via merger of IDFC Bank and Capital First)
- Managing Director: Mr. V. Vaidyanathan
- NSE Symbol: IDFCFIRSTB
- Business Segments: Retail Banking, MSME Lending, Corporate Banking, Treasury, Wealth Management
- Market Position: Mid-sized private bank with a strong focus on retail and digital innovation
IDFC First Bank maintains a capital adequacy ratio (CAR) of 15.48%, above RBI’s minimum requirement, but faces headwinds from a high cost-to-income ratio and weak profitability in FY2025.
IDFC First Bank: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹83.10 |
| Market Capitalization | ₹71,403.80 Cr |
| No. of Shares Outstanding | 859.67 Cr |
| 52-Week High / Low | ₹82.10 / ₹52.50 |
| P/E Ratio (TTM) | 48.96 |
| P/B Ratio | 1.36 |
| EPS (TTM) | ₹1.70 |
| Book Value (TTM) | ₹61.11 |
| ROE | 4.35% |
| ROCE | 6.38% |
| Dividend Yield | 0.30% |
| Face Value | ₹10 |
| Net Interest Income | ₹19,291.97 Cr |
| Cost-to-Income Ratio | 71.82% |
| Capital Adequacy Ratio (CAR) | 15.48% |
| Profit Growth (YoY) | –48.42% |
| CASA % | 46.91% |
IDFC First Bank Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹86 – ₹96 |
| 2027 | ₹92 – ₹105 |
| 2028 | ₹98 – ₹115 |
| 2029 | ₹104 – ₹126 |
| 2030 | ₹110 – ₹138 |
IDFC First Bank Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹86 | ₹96 |
IDFC First Bank reported a 48.42% YoY decline in profit in FY2025, driven by higher credit costs and operational inefficiencies. Despite this, its CASA ratio (46.91%) and capital buffer (CAR: 15.48%) remain healthy. However, the stock trades at a very high P/E of 48.96 against an ROE of just 4.35%, indicating significant valuation risk. A 2026 target range of ₹86–₹96 assumes stabilization in asset quality and no further earnings deterioration.
IDFC First Bank Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹92 | ₹105 |
If the bank gradually improves its cost-to-income ratio (currently 71.82%) and reduces slippages, earnings could rebound modestly. Assuming EPS recovers to ₹2.00–₹2.30 by FY27 and P/E moderates to 42–45x, the 2027 target range of ₹92–₹105 is reasonable—but highly dependent on execution.
IDFC First Bank Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹98 | ₹115 |
By 2028, benefits from digital scaling, branch rationalization, and improved underwriting should reflect in margins. With book value expected to grow to ₹65–₹68, a P/B of 1.5–1.6x supports the ₹98–₹115 band—contingent on sustained profitability.
IDFC First Bank Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹104 | ₹126 |
Long-term tailwinds include India’s credit expansion and IDFC’s niche in retail and MSME lending. However, intense competition from HDFC, ICICI, and Kotak caps pricing power. If ROE improves to 6–7% and dividends resume consistently, investor sentiment could improve. Using a P/B of 1.6–1.7x on projected book value (~₹70–₹74), the 2029 target is ₹104–₹126.
IDFC First Bank Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹110 | ₹138 |
Over a five-year horizon, IDFC First Bank’s recovery hinges on consistent execution and capital discipline. A P/B of 1.7–1.8x on FY30 book value (~₹75–₹78) justifies the ₹110–₹138 range. Upside is limited by structural inefficiencies; downside is mitigated by current valuation and regulatory backing.
IDFC First Bank: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Public & Retail | 41.91% |
| Domestic Institutional Investors (DII) | 33.44% |
| Foreign Institutional Investors (FII) | 24.64% |
| Promoters | 0% |
The absence of promoters reflects its widely held structure. High institutional ownership (58.08%) ensures liquidity and analyst coverage.
IDFC First Bank: Strengths vs Risks
Strengths:
- Strong CASA ratio (46.91%) supports low-cost funding
- Healthy capital buffer (CAR: 15.48%)
- Aggressive digital and retail expansion strategy
- No promoter holding—reduces governance concerns
Risks:
- Very high cost-to-income ratio (71.82%)
- Negative profit growth (–48.42%) and low ROE (4.35%)
- Extremely high P/E (48.96) for a bank with weak earnings
- Contingent liabilities of ₹3.06 lakh Cr require monitoring
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | High |
| Ideal Time Horizon | 5+ years (only for recovery bet) |
| Volatility | Very High (stock down ~5% in 1 year despite market rally) |
| Dividend/Income Potential | Minimal (0.3% yield) |
| Best For | Aggressive investors betting on a turnaround; not suitable for conservative portfolios |
FAQs
Is it good to buy IDFC First Bank shares?
Only for high-risk, long-term investors who believe in management’s ability to execute a turnaround. Not suitable for income seekers or conservative investors due to negative earnings growth and high valuation.
Is IDFC First overvalued or undervalued?
It is overvalued on earnings (P/E: 48.96) but fairly valued on book (P/B: 1.36). The disconnect stems from depressed EPS. Until profitability stabilizes, the stock remains expensive relative to peers.
What will be the future of IDFC First Bank?
The bank has strong fundamentals in CASA and capital, but operational inefficiencies and asset quality risks cloud near-term prospects. Long-term success depends on cost rationalization, credit discipline, and digital adoption. If executed well, it could become a credible mid-tier private bank.
Final Verdict
IDFC First Bank is at a critical juncture. Its strong CASA mix and capital base provide a foundation for recovery, but weak profitability and high operating costs remain major concerns. The bank needs 2–3 years of clean execution to regain investor confidence.
Our IDFC First Bank share price target 2026–2030 (₹86 to ₹138) reflects cautious optimism—rooted in balance sheet strength but tempered by earnings uncertainty. Investors should monitor quarterly asset quality, provisioning trends, and cost ratios before increasing exposure.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – IDFC First Bank Consolidated Page (FY2025 + TTM)
- Finology Ticker – IDFCFIRSTB Financials & Analysis
- Groww.in – IDFC First Bank Stock Profile
- IDFC First Bank Investor Presentation (Q3 FY26, Jan 2026)
- RBI Guidelines on Capital Adequacy and Asset Classification
