IDFC First Bank Share Price Rises as Savings Account Interest Rates Are Cut

Market Performance

IDFC First Bank shares saw a noticeable bounce on January 8, rising 3% from the day’s low, reflecting early market optimism.

• At 10:45 AM, the stock was trading around Rs 86 per share, up nearly 2% from its previous close.
• The uptick comes as the bank announced revised savings account interest rates, effective January 9, across multiple deposit ranges.

The movement underscores how banking sector news, particularly on deposit rates, can influence market sentiment in real time.

Main News: Savings Account Interest Rate Revision

IDFC First Bank has implemented cuts in interest rates on savings accounts, a strategic step to align deposit costs with its broader margin goals.

• Balances up to Rs 1 lakh remain unchanged at 3% per annum.
• Deposits from Rs 1 lakh to Rs 10 lakh now earn 5%, down from 7% earlier.
• Balances between Rs 10 lakh and Rs 5 crore will earn 6.5%, reduced from 7%.
• Deposits from Rs 5 crore to Rs 10 crore also earn 6.5%, down from 6.75%.
• Balances from Rs 25 crore to Rs 100 crore are now at 5%, while amounts exceeding Rs 100 crore continue at 4%.

These cuts, ranging up to 200 basis points, are likely to reduce interest expenses for the bank, a move that could support profitability in upcoming quarters.

Company Details

IDFC First Bank, a key player in India’s private banking space, has been strategically adjusting its balance sheet and deposit offerings. The recent rate revision reflects:

• A focus on cost-effective deposit management
• Alignment with current market interest rate trends
• Gradual strengthening of net interest margins

The bank continues to maintain a range of deposit schemes catering to both retail and high-net-worth customers, balancing competitive returns with sustainable operations.

Summary

• Date of Rate Change: Effective January 9, 2026
• Impact on Share Price: +3% from day’s low on January 8
• Deposits Up to Rs 1 Lakh: 3% per annum (unchanged)
• Deposits Rs 1 Lakh–10 Lakh: 5% per annum (down from 7%)
• Deposits Rs 10 Lakh–5 Crore: 6.5% (down from 7%)
• Deposits Rs 5 Crore–10 Crore: 6.5% (down from 6.75%)
• Deposits Rs 25–100 Crore: 5%
• Deposits Above Rs 100 Crore: 4%

The stock’s rise illustrates investor focus on operational adjustments, such as deposit cost management, which can influence a bank’s bottom line. With these changes, IDFC First Bank is positioning itself to optimize margins while remaining competitive for depositors across segments.

Source: Moneycontrol