IDFC First Bank Celebrates 5 Years Post-Merger, Outlines Growth Plans

IDFC First Bank held its Annual General Meeting (AGM) of shareholders on 30 August, marking a significant milestone as the bank celebrates five years since the merger of IDFC Bank and Capital First in December 2018. The event was marked by a keynote address from the Managing Director and CEO V Vaidyanathan, who reflected on the bank's progress and outlined the vision for its future.

The merger of IDFC Bank, with its substantial corporate and infrastructure assets of Rs. 75,332 crore, and Capital First, which brought in Rs. 32,623 crore of assets under management (AUM) primarily in MSME and retail loans, has proven to be a successful strategic move. Addressing the shareholders in his letter, Vaidyanathan emphasised that the integration of the two entities had been smooth and has laid the groundwork for the robust growth the bank has experienced over the past five years.

Impressive Growth Trajectory
Since the merger, IDFC First Bank has demonstrated exceptional growth across various metrics. Between FY 2019 and FY 2024, customer deposits surged from approximately Rs. 40,000 crore to Rs. 1.93 lakh crore, a testament to the bank's increasing market trust and customer base. The Current Account Savings Account (CASA) ratio, a key indicator of the bank’s liquidity and cost of funds, improved significantly from 11% to 47.2%. Operating profits have also seen a remarkable rise, jumping from Rs. 749 crore to Rs. 6,030 crore during the same period.

Vaidyanathan highlighted the bank's strategic initiatives aimed at building a sustainable and profitable institution. "We have successfully navigated legacy infrastructure and corporate loans, built the team, enhanced core profitability, established necessary infrastructure, and strengthened our brand," he noted. The bank's commitment to ethical banking, digital transformation, and social-good initiatives has played a pivotal role in shaping its identity and customer-First approach.

Credit Rating Upgrades And Future Aspirations
Reflecting the bank's strong financial performance and sound risk management practices, all four major credit rating agencies—CRISIL, ICRA, India Ratings, and CARE—have upgraded IDFC First Bank to an AA+ stable rating. Mr. Vaidyanathan expressed confidence in the bank's ability to achieve a AAA stable long-term credit rating in the near future, aligning with its robust growth plans.

Looking ahead, Vaidyanathan outlined the bank’s ambitious Vision 2.0, targeting significant growth by FY 2029. The vision includes scaling customer deposits to approximately Rs. 6,00,000 crore, expanding the loan book to around Rs. 5,00,000 crore, and achieving a profit after tax (PAT) in the range of Rs. 12,000-13,000 crore. "We are committed to maintaining high standards of corporate governance as we pursue these goals," Mr. Vaidyanathan assured shareholders.

Vaidyanathan expressed his heartfelt gratitude to the shareholders for their unwavering support and confidence in the bank’s journey over the last five years. "Your goodwill and fair reporting have been integral to our success. Together, we look forward to reaching new heights and delivering sustained value to all our stakeholders," he concluded.

The AGM underscored IDFC First Bank’s commitment to continuing its growth trajectory, driven by innovation, customer-centricity, and a strong ethical foundation, setting the stage for a promising future.