IDBC First Bank, Poonawalla Fincorp Surge Up to 6% on Strong Q4 Updates

Sandip Raj Gupta

03/Apr/2025

IDBC First Bank’s total business reaches ₹4.84 lakh crore, up 23% YoY, with loans & advances rising 20%.
Poonawalla Fincorp’s AUM surges 42% YoY to ₹35,550 crore, marking strong business growth.
Both firms reported robust liquidity positions and strategic expansions, fueling stock price gains.

Despite broader market volatility, shares of IDBC First Bank and Poonawalla Fincorp surged on April 3, as both companies released strong business updates for the January-March quarter (Q4 FY25).

IDBC First Bank: Strong Deposit and Loan Growth

IDBC First Bank shares jumped 6% to ₹60.40, marking its highest level in over a month. The bank’s financial update revealed:

Total business (loans + deposits): ₹4.84 lakh crore (+23% YoY)
Loans & advances: ₹2.42 lakh crore (+20% YoY)
Customer deposits: ₹2.43 lakh crore (+25% YoY)
CASA deposits: ₹1.18 lakh crore (+25% YoY)

Key Financial Ratios

CASA ratio: 46.9% (vs 47.2% in March 2024)
Credit-deposit ratio: 93.8%
Incremental credit-deposit ratio (last 12 months): 75.7%

The bank has been reducing its credit-deposit ratio since its merger with Capital First in 2018, focusing on scaling retail deposits and reducing legacy borrowings.

Poonawalla Fincorp: Strong AUM Expansion and Liquidity

Poonawalla Fincorp’s shares surged 4% to ₹362.35, the highest level in 2025. The NBFC reported:

Assets Under Management (AUM): ₹35,550 crore (+42% YoY)
Liquidity reserves: ₹4,670 crore

The company reaffirmed its "risk-first approach" and strong risk management framework, ensuring long-term sustainability.

Why Are These Stocks Rising?

Strong Business Growth:
- Both companies reported strong Q4 growth, exceeding market expectations.
Improved Liquidity and Deposits:
- IDBC First Bank’s higher retail deposits indicate stronger financial stability.
- Poonawalla’s ample liquidity supports further expansion.
Banking & NBFC Sector Strength:
- Investors are increasingly betting on lending growth in India, driving interest in financial stocks.

What’s Next?

With IDBC First Bank’s retail deposit focus and Poonawalla’s AUM expansion, both companies remain well-positioned for further growth in FY26.

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