New Delhi, May 21 -- Slow growth and rising stress have been weighing on the prospects of Indian banks. But mid-sized banks such as IDFC First Bank have managed to buck the trend by focusing on fast-growing retail credit while keeping a lid on stress.







IDFC First Bank reported more than 20% year-on-year growth in deposits and advances in FY25. Management aims to sustain this pace of growth over the next few years. This has enthused investors, resulting in the stock bouncing back from its 52-week low. It has rallied by 28% in just over two months, registering steep outperformance over the broader sector's 13% return.

But recent events threaten to dent investors' newfound confidence. Will this mark the end of a short-lived bounce-bac...