IDFC First Bank Eyes Rs 6 Lakh Cr In Deposits, Rs 12,000 Cr Profit By FY29

 

  • IDFC First Bank Eyes Rs 6 Lakh Cr In Deposits, Rs 12,000 Cr Profit By FY29
  • IDFC First Bank unveils vision 2.0, targets ₹6 lakh crore in deposits
  • 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.

  • IDFC First Bank has outlined an ambitious plan under its Vision 2.0, aiming for ₹6 lakh crore in deposits and ₹5 lakh crore in loans by FY 2029, as part of its efforts to become a leading bank in India.

  • “We are targeting around ₹6,00,000 crore in deposits, ₹5,00,000 crore in loans, and ₹12,000 crore in profit by FY 29,” said V Vaidyanathan, MD and CEO of IDFC First Bank

  • The bank, which transitioned from an infrastructure Development Finance Institution (DFI) with a net interest margin (NIM) of 1.7% to a commercial bank, faced early challenges with low retail deposits and initial losses in 2019. “Analysts back then saw this as a tough paradox—investing in growth meant more losses, but without investment, the issue would persist,” Vaidyanathan explained.

  • Since the merger in December 2019, IDFC First Bank’s share price has doubled, rising from ₹37.6 to ₹75.4 as of March 31, 2024, outperforming the Nifty Private Bank index’s 57% growth

  • In FY 2024, the bank posted a profit of ₹2,947 crore and increased its CASA ratio to 47%. “Thanks to our team’s dedication, we’ve resolved this paradox in five years. Our long-term credit rating has been upgraded to AA+ stable by four rating agencies, and we’re now striving for AAA,” Vaidyanathan added.

  • The bank has seen customer deposits soar from ₹38,455 crore to ₹1,93,753 crore, with retail deposits increasing from ₹10,400 crore to ₹1,51,343 crore. Its CASA ratio has also improved significantly from 8.7% to 47.2%.

  • Additionally, IDFC First Bank's net worth has grown from ₹18,159 crore to ₹32,161 crore, and its capital adequacy ratio has increased from 15.47% to 16.11%. The bank’s core operating profit has jumped from ₹749 crore in FY19 to ₹6,030 crore in FY24, and it has turned around its net earnings from a loss of ₹1,944 crore in FY19 to a profit of ₹2,957 crore in FY24

  • Regarding asset quality, the credit-deposit ratio has reduced from 125% to 98.4%, and the bank has repaid ₹61,342 crore of legacy borrowing. 

  • Gross NPAs have decreased from 2.43% to 1.89%, while net NPAs have dropped from 1.27% to 0.60%.

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