IDFC First Bank Moat Analysis: Score & Risks
IDFC First Bank Ltd.
A first-pass moat teardown of IDFC First Bank Ltd., built from single-pass filing evidence. Free note — provisional, and the full two-pass deep dive may revise it.
First-pass narrow read — primary edge in Switching Costs. Provisional, single-pass evidence.
IDFC First Bank Ltd. scores 4.89 on MoatSCORE 6.0 — a narrow moat in Banks. This is a first-pass note: the dimensional read and the filing receipts below come from a single GFIP evidence pass, not the full two-pass deep corpus behind our flagship deep dives. Provisional — published free while the deep version is queued.
Seven dimensions of moat
Ordered by contribution. Each dimension carries a verified filing quote, graded [M] mechanism or [O] outcome.
“Core Deposits (Retail CASA + Retail Term Deposits) as a % of Total Customer Deposits of the Bank as on Sept 30, 2020 were 72% as compared to 27% as on December 31, 2018 (merger quarter)”
“our cost of funds this quarter was stable at 6.46%. But this 6.46% includes, let me say, the legacy cost that we are sitting on, which is the pre-merger IDFC, what we carried into the Bank. If you exclude that, our cost of funds is 6.37%”
“we feel that we have a very strong traction on that front going by what we're seeing in the market and talking to our employees and seeing the deposits simply swelling at a play”
“In FY25, retail deposits saw robust growth, driven by wider product adoption and branch network expansion nationwide.”
“In this case, our own thinking is that probably it will bottom out at about INR7,500-odd crores. It's currently about INR8,500 crores.”
“The regulatory requirement for the Capital Adequacy Ratio is 10.875% with CET-1 Ratio at 7.375% and Tier I at 8.875% as per the RBI Guidelines.”
D8 rating: ADEQUATE. Not part of the moat score — it governs the cost of equity and the fade window. First-pass; not yet deep-reviewed.
The barrier gate — first-pass
Effective barrier 5.0 — below 6, so the band is capped narrow. First-pass estimate.
Deep two-pass review. This draft rests on a single GFIP evidence pass; the full 10-year AR + concall corpus may move the read.
The barrier gate. A firmer replication or bypass estimate is the most likely thing to shift the band.
Adverse events. Any governance, regulatory or funding shock captured in D8 could re-rate the fade window.
Where this note fits. This company is one of 113 Indian companies we have scored for moat durability — 88 narrow, 25 narrow-trending-wide, none wide. The full ranked read: Wide-Moat Stocks in India: We Scored 113 Companies and Found None. Every score, dimension by dimension, is free in the Moat Screener.
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