The banking stock touched a 52-week high as the rating was upgraded, with analysts giving a target of ₹105.

Veteran brokerage firm Motilal Oswal Financial Services has upgraded IDFC First Bank’s rating on the stock market. After this upgrade, the stock performed well in the market on September 23. During intra-day trading, the stock rose 5 percent to Rs. was 89.58. This is the stock’s 52-week high. Motilal Oswal changed the rating from ‘Neutral’ to ‘Buy’. Also for the next few time Rs. A new target price of 105 has been given. If Rs. Looking at the old closing price of 85, a huge increase of 23 percent is expected.

Investors benefited greatly

This banking stock has done well for its investors in recent times. In April 2026, this share will be worth Rs. was at a 52-week low of 58.08. The stock is up more than 54 percent since that low. The stock has returned 4.5 percent in the last one week. At the same time, investors have received better returns of 13 percent in three months, 47 percent in six months and nearly 26 percent in the last one year. Investors’ confidence in this stock has been strengthened due to continuous good returns.

Actual reason for rating upgrade

Motilal Oswal has given several solid reasons behind this upgrade. According to brokerages, the bank’s deposit franchise has become very strong. The speed of disbursement of bank loans is also increasing continuously. Apart from this, the bank is also benefiting from improvement in operating leverage. Bank’s credit cost is also now fully under control. The brokerage believes that the bank’s loan book will grow at a compound growth rate (CAGR) of around 21 percent between fiscal 2026 and 2028. With this, the total loan book by 2027 will be Rs. 3.4 lakh crore may cross. The performance of the bank in the retail sector has been very good. Good growth has been seen in vehicle finance, consumer loans and gold loans. The share of gold loans has increased by around 103 percent.

Bank strength is increasing due to deposits

The liability franchise of the bank has also improved tremendously. Currently, retail deposits have grown to 80 percent of total customer deposits. At the time of merger, this figure was only 27 percent. The bank has also raised a huge amount of $3.57 billion (about Rs 30,000 crore) through foreign currency non-resident (FCNR-B) deposits. This amount is 11 percent of the total deposit amount. The brokerage hopes that the bank will get good income from this huge fund in the near future. It will also increase the profit of the bank. The bank has also significantly reduced its costs, which has had a direct impact on its balance sheet.

What do market experts say?

Most of the market leaders seem to be positive about this stock. Talking about asset quality, the bank’s internal control system has become stronger than before. Motilal Oswal estimates that gross NPA (GNPA) will decline to 1.4 percent by 2028. The bank has been steadily reducing its MFI exposure. In FY 2024, the bank’s MFI book will be Rs. 13,340 crore down to Rs. 6,700 crores. The bank is focusing on diversified retail assets as part of its strategy. Out of the 31 major analysts tracking the stock, 22 have given it a buy recommendation. Seven analysts have called it a hold, while only two have given a sell opinion. The stock is now trading in gains due to continued positive news.