IDFC First Bank's Vision 2.0 aims to achieve ₹6 lakh crore in deposits and ₹5 lakh crore in loans by FY 2029, positioning it as a prominent 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," stated V Vaidyanathan, MD and CEO of IDFC First Bank.
The bank, which moved from an infrastructure Development Finance Institution (DFI) with a net interest margin (NIM) of 1.7% to a commercial bank, had early hurdles in 2019, including low retail deposits and initial losses. Analysts back then recognized this as a difficult paradox: investing in expansion meant greater losses, yet without investment, the issue would persist,” Vaidyanathan explained.
In FY 2024, the bank reported a profit of ₹2,947 crore and raised its CASA ratio to 47%. "Thanks to our team's effort, we solved this contradiction in five years. Four rating agencies have improved our long-term credit rating to AA+ stable, and we are currently working for AAA," Vaidyanathan said.
Since the merger in December 2019, IDFC First Bank's share price has doubled from ₹37.6 to ₹75.4 by March 31, 2024, beating the Nifty Private Bank index's 57% gain.
The bank's client deposits increased from ₹38,455 crore to ₹1,93,753 crore, while retail deposits rose from ₹10,400 crore to ₹1,51,343 crore. Its CASA ratio has also increased dramatically, rising from 8.7% to 47.2%.
The bank has decreased its credit-deposit ratio from 125% to 98.4% and returned ₹61,342 crore in legacy loans. Gross nonperforming assets (NPAs) have fallen from 2.43% to 1.89%, while net NPAs have plummeted from 1.27% to 0.60%.
IDFC First Bank's net value climbed from ₹18,159 crore to ₹32,161 crore, while its capital adequacy ratio improved from 15.47% to 16.11%. The bank's core operational profit increased from ₹749 crore in FY19 to ₹6,030 crore in FY24, while net earnings improved from a loss of ₹1,944 crore in FY19 to a profit of ₹2,957 crore.
