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IDFC First Bank shares surge over 8%; Yes Bank up 5%; here's why

IDFC First Bank shares surge over 8%; Yes Bank up 5%; here's why

IDFC Bank, Yes Bank share price: IDFC Bank, in its quarterly business update, said the strong momentum in deposits continued in Q2 FY23, with customer deposits up 35.9 per cent on a year-on-year (YoY) basis.

IDFC Bank, Yes Bank share price: Bank stocks also climbed today amid a sharp rebound in the domestic equities. IDFC Bank, Yes Bank share price: Bank stocks also climbed today amid a sharp rebound in the domestic equities.

Shares of IDFC First Bank on Tuesday surged 10 per cent to touch a 52-week high of Rs 54.15 in intraday deals. The stock climbed after the private lender posted a strong business update for September quarter (Q2) of the current financial year 2022-23 (FY23). IDFC Bank finally settled 8.11 per cent higher at Rs 53.35 today.

IDFC Bank, in its quarterly business update, said the strong momentum in deposits continued in Q2 FY23, with customer deposits up 35.9 per cent on a year-on-year (YoY) basis and 10.8 per cent quarter-on-quarter (QoQ) basis to Rs 1.14 lakh crore. CASA (Current Account Savings Account) deposits jumped 37 per cent YoY and 11.7 per cent QoQ to Rs 63,380 crore, the lender mentioned.

It further stated that the mortgage business grew by 29.0 per cent on a YoY basis.

Also Read | IndusInd Bank shares approach 52-week high on strong Q2 update

Private lender Yes Bank also soared today, rising 5.19 per cent to settle at Rs 16.20. The bank said its deposits came at Rs 2 lakh crore till September 30 this year, up 13.2 per cent, on a yearly basis.

Loans and advances stood at Rs 1,92,809 crore, of which gross retail disbursements stood at Rs 12,182 crore, it added.

Indices surged buoyed by positive global cues and encouraging quarterly updates on advances and collections from banks during the second quarter (Q2), said S Ranganathan, Head of Research at LKP securities.

Echoing similar views, Vinod Nair, Head of Research at Geojit Financial Services, said, "Mirroring a robust overnight surge in Wall Street and upbeat domestic business data released by banks, the domestic indices ended the day on a cheerful note."

Also Read | Is Credit Suisse crisis a threat for Indian banking, stock market?

Technical View

"Bank Nifty had a decent gain when it closed for the day. On the daily chart, the index has closed above 50 EMA (Exponential Moving Average), which is a bullish setup. The RSI has narrowed down its negative crossover. The trend looks positive. On the lower end, support is placed at 38,500, resistance on the higher end is visible at 39,500/40,000," said Rupak De, Senior Technical Analyst at LKP Securities.

Other bank stocks also climbed today amid a sharp rebound in the domestic equities. Shares of IndusInd Bank, HDFC Bank, Axis Bank, SBI, ICICI Bank, Kotak Mahindra Bank settled as much as 5.46 per cent higher.