IDFC First Bank: Difference between revisions

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{{Infobox company
{{Infobox company
| name = IDFC FIRST Bank
| name = IDFC FIRST Bank
| logo = IDFC First Bank logo.jpg
| logo = Logo of IDFC First Bank.svg
| logo_caption = ''Always You First''
| image = IDFC First Bank headquarters.jpg
| image = IDFC_First_Bank_headquarters.jpg
| image_caption = Headquarters in [[Bandra Kurla Complex]], [[Mumbai]]
| image_caption = IDFC First Bank headquarters, [[Bandra Kurla Complex]], [[Mumbai]]
| type = [[Public company|Public]]
| type = Private sector bank
| traded_as = {{BSE|539437}}<br />{{NSE|IDFCFIRSTB}}
| traded_as = {{BSE|539437}}<br />{{NSE|IDFCFIRSTB}}
| ISIN = {{ISIN|sl=n|pl=y|INE092T01019}}
| ISIN = {{ISIN|sl=n|pl=y|INE092T01019}}
| industry = [[Banking]]<br />[[Financial service]]s
| industry = [[Banking]]<br />[[Financial service]]s
| founded = {{Start date and age|2015|10||df=yes}}
| founded = {{Start date and age|2015|10||df=yes}}
| key_people = [[V. Vaidyanathan]]<br /> {{small|([[Managing director|MD]] & [[Chief executive officer|CEO]])}} <ref>{{cite news|url=https://www.moneycontrol.com/news/business/rbi-approves-appointment-of-v-vaidyanathan-as-md-ceo-of-idfc-first-bank-3409961.html|title=RBI approves appointment of V Vaidyanathan as MD, CEO of IDFC FIRST Bank}}</ref>
| key_people = [[V. Vaidyanathan]] {{small|([[Managing director|MD]] & [[Chief executive officer|CEO]])}}
| products = {{Bulleted_list|[[Retail banking|Consumer banking]]|[[Credit card]]s|[[Home loan]]s|[[Retail banking|Loans against property]]|[[Personal loans]]|[[Retail banking|Consumer Durable loans]]|[[Retail banking|Vehicle loans]]|[[Retail banking|Business loans]]|[[Retail banking|Micro Enterprise loans]]|[[Private banking]]|[[Wealth management]]|[[Investment banking]]|[[Commercial bank|Corporate banking]]|[[Wholesale banking]]}}
| products = {{ubl|[[Retail banking|Consumer banking]]|[[Credit card]]s|[[Home loan]]s|[[Private banking]]|[[Wealth management]]|[[Investment banking]]|[[Commercial bank|Corporate banking]]|[[Wholesale banking]]}}
| revenue = {{increase}}{{INRConvert|22728|c}} (2023)<ref name="BalSheet">{{cite web | url=https://www.screener.in/company/IDFCFIRSTB/consolidated/" | title=IDFC First Bank }}</ref>
| revenue = {{increase}} {{INRConvert|36257|c}} (2024)<ref name="BalSheet">{{cite web | url=https://www.bseindia.com/xml-data/corpfiling/AttachLive/7a2ab67f-c8d3-4486-a9ce-8f83cec58814.pdf | title=IDFC First Bank | access-date=27 April 2024 | archive-date=29 April 2024 | archive-url=https://web.archive.org/web/20240429112439/https://www.bseindia.com/xml-data/corpfiling/AttachLive/7a2ab67f-c8d3-4486-a9ce-8f83cec58814.pdf | url-status=dead }}</ref>
| operating_income = {{increase}} {{INRConvert|3331|c}} (2023)<ref name="BalSheet" />
| operating_income = {{increase}} {{INRConvert|6239|c}} (2024)<ref name="BalSheet" />
| net_income = {{increase}} {{INRConvert|2485|c}} (2023)<ref name="BalSheet" />
| net_income = {{increase}} {{INRConvert|1491|c}} (2025)<ref name="BalSheet" />
| assets = {{increase}} {{INRConvert|239882|c}} (2023)<ref name="BalSheet23">{{cite web | url=https://www.moneycontrol.com/financials/idfcfirstbank/consolidated-balance-sheetVI/IDF01#IDF01" | title=IDFC First Bank }}</ref>
| assets = {{increase}} {{INRConvert|343817|c}} (2025)<ref name="BalSheet23">{{cite web | url=https://www.bseindia.com/xml-data/corpfiling/AttachLive/7a2ab67f-c8d3-4486-a9ce-8f83cec58814.pdf | title=IDFC First Bank | access-date=27 April 2024 | archive-date=29 April 2024 | archive-url=https://web.archive.org/web/20240429112439/https://www.bseindia.com/xml-data/corpfiling/AttachLive/7a2ab67f-c8d3-4486-a9ce-8f83cec58814.pdf | url-status=dead }}</ref>
| equity = {{increase}} {{INRConvert|6618|c}} (2023)<ref name="BalSheet23" />
| equity = {{increase}} {{INRConvert|25145|c}} (2024)<ref name="BalSheet23" />
| num_employees = 20,222 (March 2020)
| num_employees = 49,123 (January 2026) <ref>{{cite web | date=2026-02-28 | url=https://tracxn.com/d/companies/idfcfirstbank/__ONV8_JuZUdpzAdzpZpOAz9BhiGZrV1565lj2dS9L3aM#about-the-company  | title=IDFC First Bank's Employee Count |access-date=2026-03-05 |website=Tracxn | language=en }}</ref>
| ratio = 13.28% <ref name="BalSheet" />
| ratio = 13.28% <ref name="BalSheet" />
| location = [[Mumbai]], [[Maharashtra]], India
| location = [[Mumbai]], [[Maharashtra]], India
| parent = [[Infrastructure Development Finance Company]]
| subsid = {{plainlist|
| predecessor = IDFC Bank <br /> [[Capital First Ltd.]]
* [[Grama Vidiyal|IDFC FIRST Bharat]]
}}
| former_name = IDFC Bank (2015–2018)
| rating = {{plainlist|
| rating = {{plainlist|
* [[CRISIL]] AA+/Stable<ref>{{cite web | date=2023-06-05 | url=https://www.capitalmarket.com/news/hot-pursuit/CRISIL-upgrades-IDFC-First-Banks-LT-rating-to-AA-/1429241 | title=CRISIL upgrades IDFC First Bank's LT rating to 'AA+' |access-date=2023-06-21 |website=Capital Market | language=en }}</ref>
* [[CRISIL]] AA+/Stable<ref>{{cite web | date=2023-06-05 | url=https://www.capitalmarket.com/news/hot-pursuit/CRISIL-upgrades-IDFC-First-Banks-LT-rating-to-AA-/1429241 | title=CRISIL upgrades IDFC First Bank's LT rating to 'AA+' |access-date=2023-06-21 |website=Capital Market | language=en }}</ref>
* Ind-Ra IND AA+/Stable<ref>{{cite web | date=2023-12-12 | url=https://www.financialexpress.com/business/banking-finance-ind-ra-affirms-idfc-first-banks-debt-instruments-ratings-with-stable-outlook-3336855/ | title=Ind-Ra affirms IDFC First Bank's debt instruments ratings with stable outlook |access-date=2023-12-26 |website=Financial Express | language=en }}</ref>
* CARE AA+/Stable ([[Debenture#Convertibility|NCDs]])<ref>{{cite web | date=2023-10-03 | url=https://www.careratings.com/upload/CompanyFiles/PR/202310141000_IDFC_FIRST_Bank_Ltd.pdf | title=IDFC FIRST Bank Ltd Long Term Instruments - Non Convertible Debentures October 03, 2023 |access-date=2024-02-01 |website=CARE Ratings | language=en }}</ref>
}}
}}
| homepage = {{URL|https://www.idfcfirstbank.com/}}
| homepage = {{URL|https://www.idfcfirst.bank.in/}}
}}
}}


'''IDFC FIRST Bank''' (formerly '''IDFC Bank''')<ref>{{Cite news|url=https://www.business-standard.com/article/news-ians/idfc-bank-s-name-changed-to-idfc-first-bank-119011300004_1.html|title=IDFC Bank's name changed to IDFC First Bank|last=IANS|date=2019-01-12|work=Business Standard India|access-date=2019-07-08}}</ref> is an Indian private sector bank formed by the merger of the banking arm of [[Infrastructure Development Finance Company]] and [[Capital First Ltd.|Capital First]], an Indian non-bank financial institution.<ref>{{cite web |date=2015-10-01 |title=7 things to know about IDFC Bank &#124; Business Standard News |url=http://www.business-standard.com/article/finance/7-things-to-know-about-idfc-bank-115100100509_1.html |access-date=2016-10-15 |publisher=Business-standard.com}}</ref>
'''IDFC First Bank''' (stylised as '''IDFC FIRST Bank''') is an Indian [[private sector]] [[bank]] based in Mumbai. Founded in 2015 as a banking subsidiary of [[Infrastructure Development Finance Company|IDFC Limited]], it shifted focus from infrastructure financing to retail banking after its 2018 merger with [[Capital First Ltd.|Capital First]].<ref>{{cite web |date=2015-10-01 |title=7 things to know about IDFC Bank &#124; Business Standard News |url=http://www.business-standard.com/article/finance/7-things-to-know-about-idfc-bank-115100100509_1.html |access-date=2016-10-15 |publisher=Business-standard.com}}</ref> In 2024, IDFC First Bank took over the parent company IDFC Limited in a [[reverse merger]].<ref>{{Cite news |date=28 September 2024 |title=IDFC FIRST Bank announces completion of IDFC Ltd merger |url=https://www.livemint.com/companies/news/idfc-first-bank-announces-completion-of-idfc-ltd-merger-11727485752194.html |access-date=3 March 2025 |work=[[Mint (newspaper)|Mint]]}}</ref>


It is the first universal bank to offer monthly interest credit on savings accounts, lifetime free credit cards with dynamic and low [[annual percentage rate]]s.<ref>{{Cite web |last=Joshi |first=Armaan |date=2022-08-22 |title=IDFC First Digital Savings Accounts Review |url=https://www.forbes.com/advisor/in/banking/idfc-first-digital-savings-account/ |access-date=2022-12-12 |website=Forbes Advisor INDIA |language=en-GB}}</ref>
== History ==


== History ==
[[Infrastructure Development Finance Company|IDFC Limited]] was set up in 1997 by [[Government of India]] to finance infrastructure projects in India.<ref>{{Cite book |last=Bhagwati |first=Jaimini |url=https://csep.org/wp-content/uploads/2022/01/Insolvency-and-Bankruptcy-Code-IBC.pdf |title=Insolvency and Bankruptcy Code (IBC) and Long-Term Bulk Lending in India |date=January 2022 |publisher=Centre for Social and Economic Progress, New Delhi |pages=6 |language=en |ref=CSEP Working Paper-21}}</ref> With time, the company diversified into [[asset management]], [[Stock broking|institutional broking]] and [[investment banking]].


IDFC Limited was set up in 1997 to finance infrastructure projects in [[India]]. With time, the company diversified into [[asset management]], [[Stock broking|institutional broking]] and [[investment banking]]. In 2014, the [[Reserve Bank of India]] granted in-principle approval to IDFC Limited to set up a new bank in the private sector. Following this, the IDFC Limited divested its infrastructure finance assets and liabilities to a new entity - IDFC Bank. The bank was launched through this demerger from IDFC Limited, and it was officially inaugurated by [[Prime Minister of India]] [[Narendra Modi]] in October 2015.<ref name=":0">{{Cite web |last=PTI |date=2015-10-19 |title=Narendra Modi inaugurates IDFC Bank, talks of banking reforms |url=https://www.livemint.com/Industry/j297AiEAvv8KzEEC8htTdI/Narendra-Modi-inaugurates-IDFC-Bank-talks-of-banking-reform.html |access-date=2022-12-12 |website=mint |language=en}}</ref>
In 2005, The [[Government of India]] and [[IDBI Bank]], a public sector bank were the sponsor shareholders of IDFC. The government brought down its stake to 34.91% through IDFC's initial public offering in 2005.<ref>{{Cite news |last=Tiwari |first=Dheeraj |date=2015-04-22 |title=Government may sell stakes in IDFC, Tata Communications via ETF route |url=https://economictimes.indiatimes.com/news/economy/finance/government-may-sell-stakes-in-idfc-tata-communications-via-etf-route/articleshow/47007330.cms |access-date=2025-03-03 |work=The Economic Times |issn=0013-0389}}</ref>


IDFC Bank started operations on 1 October 2015,<ref>{{cite news |last1=Saha |first1=Manojit |date=2015-07-25 |title=IDFC Bank to start operations from Oct 1 &#124; Business Standard News |newspaper=Business Standard India |publisher=Business-standard.com |url=http://www.business-standard.com/article/companies/idfc-bank-to-start-operations-from-oct-1-115072400934_1.html |access-date=2016-10-15}}</ref> with 23 branches in Madhya Pradesh, [[Delhi]], [[Mumbai]], [[Hyderabad]], [[Bangalore|Bengaluru]], [[Pune]], [[Chennai]], [[Ahmedabad]] and [[Kolkata]]. It has more than 600 branches across India by 2021.<ref name=":0" /><ref>{{cite news|url=http://www.business-standard.com/article/government-press-release/pm-inaugurates-idfc-bank-115101901137_1.html|title=PM inaugurates IDFC Bank &#124; Business Standard News|newspaper=Business Standard India |date=2015-10-19|publisher=Business-standard.com|access-date=2016-10-15}}</ref> 15 branches are in settlements with a population of less than 10,000. IDFC Bank launched its 100th branch in [[Honnali]], [[Karnataka]], in October 2017.<ref>{{cite web|url=http://www.moneycontrol.com/news/business/idfc-bk-to-start-opsfew-branches-by-oct-1-rajiv-lall_1353937.html |title=IDFC Bk to start ops with few branches by Oct 1: Rajiv Lall |publisher=Moneycontrol.com |date=2015-04-12 |access-date=2016-10-15}}</ref>
In 2014, the [[Reserve Bank of India]] granted in-principle approval to IDFC Limited to set up a new bank in the private sector.<ref>{{Cite news |title=RBI grants in-principle approval to IDFC, Bandhan for new bank licences |work=The Economic Times |url=https://economictimes.indiatimes.com/news/economy/policy/rbi-grants-in-principle-approval-to-idfc-bandhan-for-new-bank-licences/articleshow/33137000.cms?from=mdr |access-date=2022-12-12}}</ref> Following this, the IDFC Limited divested its infrastructure finance assets and liabilities to a new entity - IDFC Bank. The bank was launched through this demerger from IDFC Limited, and it was officially inaugurated by the [[Prime Minister of India]] [[Narendra Modi]] in October 2015.<ref name=":0">{{Cite web |last=PTI |date=2015-10-19 |title=Narendra Modi inaugurates IDFC Bank, talks of banking reforms |url=https://www.livemint.com/Industry/j297AiEAvv8KzEEC8htTdI/Narendra-Modi-inaugurates-IDFC-Bank-talks-of-banking-reform.html |access-date=2022-12-12 |website=mint |language=en}}</ref><ref>{{cite news |date=2015-10-19 |title=PM inaugurates IDFC Bank &#124; Business Standard News |url=http://www.business-standard.com/article/government-press-release/pm-inaugurates-idfc-bank-115101901137_1.html |access-date=2016-10-15 |newspaper=Business Standard India |publisher=Business-standard.com}}</ref>


In January 2018, IDFC Bank and non-banking financial company Capital First announced a merger. Capital First, then called Future Capital Holdings, went public on India's stock exchanges in 2008. It was an Indian [[non-bank financial institution]] providing debt financing to [[small and medium-sized enterprises]]. Capital First was founded in 2012 by [[V. Vaidyanathan]] who acquired a stake in Future Capital Holdings and secured equity backing of Rs. 8.10 billion from [[Warburg Pincus]].<ref>{{Cite web |last=Kalbag |first=Chaitanya |date=2012-07-03 |title=V. Vaidyanathan takes wing with a $17 million stake in a star NBFC |url=https://www.businesstoday.in/magazine/features/story/v-vaidyanathan-behind-future-capital-deal-34539-2012-07-03 |access-date=2023-08-03 |website=Business Today |language=en}}</ref> The company grew its loan book and net profits at a 5-year CAGR of 29% and 56%, respectively, with a gross non-performing assets (gross NPA) of <2% and a net NPA of <1% for nearly a decade.<ref>{{Cite web |last=Sitaraman |first=Krishnan |last2=Narayanan |first2=Subhasri |last3=Gupta |first3=Leena |title=Rating Rationale - IDFC FIRST Bank Limited Reaffirmed |url=https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/IDFCFIRSTBankLimited_June%2029,%202022_RR_296668.html |access-date=2023-08-03 |website=www.crisil.com}}</ref>
IDFC Bank started operations on 1 October 2015.<ref>{{cite news |last1=Saha |first1=Manojit |date=2015-07-25 |title=IDFC Bank to start operations from Oct 1 &#124; Business Standard News |newspaper=Business Standard India |publisher=Business-standard.com |url=http://www.business-standard.com/article/companies/idfc-bank-to-start-operations-from-oct-1-115072400934_1.html |access-date=2016-10-15}}</ref><ref>{{cite web|url=http://www.moneycontrol.com/news/business/idfc-bk-to-start-opsfew-branches-by-oct-1-rajiv-lall_1353937.html |title=IDFC Bk to start ops with few branches by Oct 1: Rajiv Lall |publisher=Moneycontrol.com |date=2015-04-12 |access-date=2016-10-15}}</ref> The parent entity, IDFC Limited, retained the asset management, institutional broking and infrastructure debt fund businesses through IDFC Financial Holding Company Limited (IDFC FHCL).<ref>{{Cite web |last=Gopakumar |first=Gopika |date=2021-07-21 |title=IDFC can exit as promoter of IDFC First Bank, clarifies RBI |url=https://www.livemint.com/industry/banking/rbi-allows-idfc-to-exit-as-promoter-of-idfc-first-bank-11626875817855.html |access-date=2022-12-12 |website=mint |language=en}}</ref>


In this period, Capital First witnessed a significant increase in its total loan book, which rose from ₹9.35 billion to ₹295.68 billion (as of June 30, 2018). The company also experienced growth in its market capitalization, reaching ₹7.9 billion by March 31, 2018. Furthermore, it reduced its NPA from 5.28% to 1.72% by adhering to the 90-day past due recognition norm. Additionally, Capital First obtained an upgraded long-term credit rating of AAA.<ref>{{Cite web |last=R |first=Rajee |date=25 September 2018 |title=Rating Rationale of Capital First Limited |url=https://www.brickworkratings.com/Admin/PressRelease/Capital-First-BL-25Sep2018%20%20(1).pdf |access-date=3 August 2023 |website=Brickwork Ratings}}</ref>
IDFC Bank faced challenges due to bad loans from legacy infrastructure accounts. A planned merger with the [[Shriram Group]] was called off. By September 2017, the bank's deposits totaled {{INR}}38,890 crore, with a [[CASA ratio]] of just 8.2%.<ref>{{Cite news |last=Iyer |first=Aparna |date=15 January 2018 |title=IDFC Bank, Capital First merger: will the shoe fit this time? |url=https://www.livemint.com/Money/cCCvBnaKy51EjcLGhJMeBL/IDFC-Bank-Capital-First-merger-will-the-shoe-fit-this-time.html |access-date=29 October 2024 |work=[[Mint (newspaper)|Mint]]}}</ref>


Between 2008 and 2010, the company started a number of separate businesses through joint ventures. These included financing for real estate developers, corporate credit, private equity, asset management, retail brokerage, foreign exchange, mall management, wealth management, property services, and more.<ref>{{Cite web |title=Future Capital IPO Details - IPO Date, Price, GMP, Analysis & Review |url=https://www.chittorgarh.com/ipo/future_capital_ipo/151/ |access-date=2023-01-31 |website=www.chittorgarh.com |language=en-US}}</ref> In 2010, [[V. Vaidyanathan|V Vaidyanathan]], who was serving as MD and CEO of [[ICICI Prudential Life Insurance]] at the time, came to an arrangement to purchase ten percent of the company's shares.<ref>{{Cite web |last=Kapur |first=Manavi |date=2022-02-24 |title=The Indian banker who gifted shares worth $500,000 to his domestic help |url=https://qz.com/india/2132715/whos-v-vaidyanathan-the-idfc-first-bank-ceo-who-gifted-shares/ |access-date=2023-01-31 |website=Quartz |language=en}}</ref>
=== Capital First merger ===
In January 2018, IDFC Bank and [[SME finance|MSME financing]] company Capital First announced a merger.<ref>{{Cite book |last=Tadas |first=G. A. |url=https://www.ris.org.in/sites/default/files/Publication/DP%20254%20G%20A%20Tadas.pdf |title=Need for Setting Up of a New Development Bank (RIS-DP #254) |date=August 2020 |publisher=Research and Information System for Developing Countries |edition= |location=[[New Delhi]], [[India]] |pages=7 |language=English}}</ref> Capital First was founded as Future Capital Holdings under the [[Future Group]], and was acquired by [[Warburg Pincus]] and [[V. Vaidyanathan]] in 2012.<ref>{{cite news |title=Future Group sells Future Capital Holdings to Warburg Pincus for Rs 800 cr |url=https://economictimes.indiatimes.com/industry/banking/finance/future-group-sells-future-capital-holdings-to-warburg-pincus-for-rs-800-cr/articleshow/13832093.cms |access-date=12 December 2024 |work=The Economic Times |date=5 June 2012}}</ref><ref>{{Cite web |last=Kalbag |first=Chaitanya |date=2012-07-03 |title=V. Vaidyanathan takes wing with a $17 million stake in a star NBFC |url=https://www.businesstoday.in/magazine/features/story/v-vaidyanathan-behind-future-capital-deal-34539-2012-07-03 |access-date=2023-08-03 |website=Business Today |language=en}}</ref> As per a September 2017 stock filing, Capital First had a retail loan portfolio of {{INR}}229.7 billion.<ref>{{Cite news |last=Roy |first=Anup |date=13 January 2018 |title=IDFC Bank to merge with Capital First, Vaidyanathan to succeed Lall |url=https://www.business-standard.com/article/companies/idfc-bank-to-merge-with-capital-first-vaidyanathan-to-succeed-lall-118011300405_1.html |access-date=29 October 2024 |work=[[Business Standard]]}}</ref> 139 shares of IDFC Bank were issued for every 10 shares of Capital First as part of the merger share swap.<ref>{{Cite web |last=sundarajan |first=Priya |date=2018-01-13 |title=IDFC Bank to take over Capital First in share swap deal |url=https://www.thehindubusinessline.com/money-and-banking/idfc-bank-capital-first-to-merge-in-share-swap-deal/article64296887.ece |access-date=2022-12-12 |website=www.thehindubusinessline.com |language=en}}</ref>


=== Merger ===
The merger completed in December 2018, with IDFC Bank changing its name to IDFC First Bank.<ref>{{cite news |last1=Sinha |first1=Shilpy |title=IDFC, Capital First completes merger process to form IDFC First Bank |newspaper=The Economic Times |publisher=eonomictimes.com |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/idfc-capital-first-completes-merger-process-to-form-idfc-first-bank/articleshow/67149838.cms?from=mdr}}</ref><ref>{{Cite web |title=Capital First merges with IDFC Bank to create IDFC First Bank |url=https://www.moneycontrol.com/news/business/capital-first-merges-with-idfc-bank-to-create-idfc-first-bank-3305581.html |access-date=2022-12-12 |website=Moneycontrol |date=18 December 2018 |language=en}}</ref> Vaidyanathan took over as the MD and CEO of the merged entity. The Reserve Bank of India approved his appointment for a period of three years, effective from 19 December 2018.<ref>{{Cite web |title=RBI approves appointment of V Vaidyanathan as MD, CEO of IDFC First Bank |url=https://www.moneycontrol.com/news/business/rbi-approves-appointment-of-v-vaidyanathan-as-md-ceo-of-idfc-first-bank-3409961.html |access-date=2022-12-12 |website=Moneycontrol |date=18 January 2019 |language=en}}</ref>
The Reserve Bank has approved the appointment of V. Vaidyanathan as Managing Director and CEO of IDFC First Bank for a period of three years, effective from December 19, 2018.<ref>{{Cite web |title=RBI approves appointment of V Vaidyanathan as MD, CEO of IDFC First Bank |url=https://www.moneycontrol.com/news/business/rbi-approves-appointment-of-v-vaidyanathan-as-md-ceo-of-idfc-first-bank-3409961.html |access-date=2022-12-12 |website=Moneycontrol |date=18 January 2019 |language=en}}</ref>


The loan assets and borrowings of IDFC Limited were transferred to IDFC Bank at the time of inception. 13.9 shares of IDFC Bank were issued for every share of Capital First as part of the merger scheme.<ref>{{Cite web |last=sundarajan |first=Priya |date=2018-01-13 |title=IDFC Bank to take over Capital First in share swap deal |url=https://www.thehindubusinessline.com/money-and-banking/idfc-bank-capital-first-to-merge-in-share-swap-deal/article64296887.ece |access-date=2022-12-12 |website=www.thehindubusinessline.com |language=en}}</ref><ref>{{cite news |last1=Sinha |first1=Shilpy |title=IDFC, Capital First completes merger process to form IDFC First Bank |newspaper=The Economic Times |publisher=eonomictimes.com |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/idfc-capital-first-completes-merger-process-to-form-idfc-first-bank/articleshow/67149838.cms?from=mdr}}</ref>
The bank transitioned from infrastructure financing to [[retail banking]] in four years since the merger. Its CASA ratio increased from 8.6% to 49.77% and retail deposits went up from 27% to 76% of total deposits, as of March 2023.<ref>{{Cite news |date=2023-05-02 |title=IDFC FIRST Bank FY23 Profit After Tax Highest-Ever at Rs. 2,437 |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/press-releases/2023-05-02/idfc-first-bank-fy23-profit-after-tax-highest-ever-at-rs-2-437 |access-date=2023-06-21}}</ref><ref>{{Cite news |last1=Shukla |first1=Saloni |last2=Rangan |first2=MC Govardhana |title=IDFC First Bank's transformation to retail complete; NPA woes behind, says CEO V Vaidyanathan |work=The Economic Times |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/idfc-first-banks-transformation-to-retail-complete-npa-woes-behind-says-ceo-v-vaidyanathan/articleshow/95387208.cms |access-date=2022-12-12}}</ref>


The parent entity, IDFC Limited, retained the AMC, Institutional Broking, and Infrastructure Debt Fund businesses through IDFC Financial Holding Company Limited (NOFHC).<ref>{{Cite web |last=Gopakumar |first=Gopika |date=2021-07-21 |title=IDFC can exit as promoter of IDFC First Bank, clarifies RBI |url=https://www.livemint.com/industry/banking/rbi-allows-idfc-to-exit-as-promoter-of-idfc-first-bank-11626875817855.html |access-date=2022-12-12 |website=mint |language=en}}</ref>
===IDFC Limited merger===
In July 2023, the board of the bank approved the merger with IDFC Limited.<ref>{{Cite news |date=2023-07-03 |title=India's IDFC to merge with IDFC First Bank in latest consolidation |language=en |work=Reuters |url=https://www.reuters.com/world/india/idfc-first-bank-merge-with-idfc-2023-07-03/ |access-date=2023-07-04}}</ref><ref>{{Cite news |date=2023-07-03 |title=IDFC to merge with IDFC First Bank |language=en-IN |work=The Hindu |url=https://www.thehindu.com/business/idfc-to-merge-with-idfc-first-bank/article67038447.ece |access-date=2023-07-04 |issn=0971-751X}}</ref> After receiving clearance from the [[Competition Commission of India]]<ref>{{Cite web |last=Livemint |date=2023-10-17 |title=IDFC gets CCI nod for merger with IDFC First Bank |url=https://www.livemint.com/news/idfc-gets-cci-nod-for-merger-with-idfc-first-bank-11697547716386.html |access-date=2023-10-25 |website=mint |language=en}}</ref> and the Reserve Bank of India,<ref>{{Cite web |last=Bhattacharya |first=Shubhayan |date=2023-12-18 |title=IDFC First Bank Gets RBI Nod For Merger Of IDFC, IDFC Financial Holding With Self |url=https://www.ndtvprofit.com/economy-finance/idfc-first-bank-gets-rbi-nod-for-merger-of-idfc-idfc-financial-holding-with-self |access-date=2023-12-26 |website=NDTV Profit |language=en}}</ref> the merger proposal was approved by the [[National Company Law Tribunal]] in May 2024. The proposal, endorsed by the bank's shareholders and NCD holders, involved two steps–IDFC FHCL merging with IDFC Limited, followed by IDFC Limited merging into IDFC First Bank.<ref>{{Cite web |last=PTI |date=2024-05-18 |title=Debt, equity holders approve merger of IDFC with IDFC First Bank |url=https://www.thehindubusinessline.com/money-and-banking/debt-equity-holders-approve-merger-of-idfc-with-idfc-first-bank/article68190758.ece |access-date=2024-06-25 |website=BusinessLine |language=en}}</ref><ref>{{Cite web |date=2024-05-18 |title=Majority shareholders of IDFC First Bank approves amalgamation of IDFC Ltd with lender |url=https://www.businesstoday.in/latest/corporate/story/majority-shareholders-of-idfc-first-bank-approves-amalgamation-of-idfc-ltd-with-lender-430065-2024-05-18 |access-date=2024-06-25 |website=[[Business Today (India)|Business Today]] |language=en}}</ref>


The bank, IDFC Financial Holdings, and IDFC all came together to form IDFC in 2021, marking the beginning of the process of a reverse merger.<ref>{{Cite web |date=29 April 2022 |title=Reverse merger with IDFC would set IDFC First Bank stock free |url=https://www.moneycontrol.com/news/business/mergers-acquisitions/reverse-merger-with-idfc-would-set-idfc-first-bank-stock-free-8431861.html |access-date=2022-12-12 |website=Moneycontrol |language=en}}</ref> The promoter group comprises both of these organisations as members.<ref>{{Cite web |last=Lele |first=Abhijit |date=2021-12-30 |title=IDFC FIRST Bank begins process for 3-way merger; stock ends flat |url=https://www.business-standard.com/article/companies/idfc-first-bank-begins-process-for-idfc-s-merger-stock-ends-flat-121123001340_1.html |access-date=2022-12-12 |website=www.business-standard.com |language=en}}</ref>
On 1 October 2024, IDFC Limited merged with the bank.<ref>{{Cite web |date=2024-09-27 |title=IDFC FIRST Bank announces completion of IDFC Ltd merger |url=https://www.financialexpress.com/business/banking-finance-idfc-first-bank-announces-completion-of-idfc-ltd-merger-3624348/ |access-date=2024-10-15 |website=Financialexpress |language=en}}</ref> As a result of the merger, 155 equity shares of the bank were allotted for every 100 equity shares of IDFC Limited held by each shareholder in the latter.<ref>{{Cite web |last=Deshpande |first=Swapnil |date=2024-09-27 |title=IDFC First Bank completes merger with IDFC Limited - CNBC TV18 |url=https://www.cnbctv18.com/market/idfc-first-bank-completes-merger-with-idfc-ltd-19484050.htm |access-date=2024-10-15 |website=CNBCTV18 |language=en}}</ref>


As of July 3, 2023, the board of the bank had approved the merger with IDFC Limited. Shareholders of the latter will receive 155 shares of IDFC FIRST Bank for every 100 shares they currently own in IDFC Limited, as stated in a filing with the stock exchange.<ref>{{Cite news |date=2023-07-03 |title=India's IDFC to merge with IDFC First Bank in latest consolidation |language=en |work=Reuters |url=https://www.reuters.com/world/india/idfc-first-bank-merge-with-idfc-2023-07-03/ |access-date=2023-07-04}}</ref><ref>{{Cite news |date=2023-07-03 |title=IDFC to merge with IDFC First Bank |language=en-IN |work=The Hindu |url=https://www.thehindu.com/business/idfc-to-merge-with-idfc-first-bank/article67038447.ece |access-date=2023-07-04 |issn=0971-751X}}</ref>
== Shareholding ==
On 22 February 2023, IDFC Limited announced that it would increase its stake in the bank from 36.38% up to 40%.<ref>{{Cite web |last=Reporter |first=B. S. |date=2023-02-01 |title=IDFC Ltd to invest Rs 2,200 crore in IDFC First Bank, up its stake to 40% |url=https://www.business-standard.com/article/finance/idfc-plans-to-invest-nearly-rs-2-200-crore-in-idfc-first-bank-123020101406_1.html |access-date=2023-02-23 |website=www.business-standard.com |language=en}}</ref> Also, on 22 February 2023, the bank issued 12,03,745 equity shares to its employees under the company ESOP plan.<ref>{{Cite web |title=IDFC First Bank allots shares worth Rs 1.2 cr to employees as stock options |url=https://www.freepressjournal.in/business/idfc-first-bank-allots-shares-worth-rs-12-cr-to-employees-as-stock-options |access-date=2023-02-23 |website=Free Press Journal |language=en}}</ref>


=== Shareholding ===
On 12 September 2023, US-based [[GQG Partners]] acquired a 0.76% stake from V. Vaidyanathan, increasing its ownership in the bank to 3.36%.<ref>{{Cite web |title=IDFC First Bank rises 2% on Rs 479.5-cr block deal with GQG Partners |url=https://www.moneycontrol.com/europe/news/business/markets/idfc-first-bank-rises-2-on-rs-479-5-cr-block-deal-with-gqg-partners-11345731.html |access-date=2023-09-14 |website=Moneycontrol}}</ref><ref>{{Cite web |title=US-based GQG Partners ups IDFC First Bank stake, acquires shares from CEO V. Vaidyanathan |url=https://www.telegraphindia.com/business/us-based-gqg-partners-ups-idfc-first-bank-stake-acquires-shares-from-ceo-v-vaidyanathan/cid/1965600 |access-date=2023-09-14 |website=www.telegraphindia.com |language=en}}</ref>
As of December 2022, the promoter holding at the bank is 36.38%; the institutional holding is at 33.60%, the public holding is at 30.01%.<ref>{{Cite web |title=Latest Shareholding Pattern - IDFC First Bank Ltd. |url=https://trendlyne.com/equity/share-holding/1786/IDFCFIRSTB/latest/idfc-first-bank-ltd/ |access-date=2023-02-23 |website=Trendlyne.com |language=en}}</ref> But on 22 February 2023, IDFC Limited announced it intention to invest INR 2,200 crores in the bank. This will bring IDFC Limited's current holding in the bank up to 40 percent, from the current level of 36.38 percent.<ref>{{Cite web |last=Reporter |first=B. S. |date=2023-02-01 |title=IDFC Ltd to invest Rs 2,200 crore in IDFC First Bank, up its stake to 40% |url=https://www.business-standard.com/article/finance/idfc-plans-to-invest-nearly-rs-2-200-crore-in-idfc-first-bank-123020101406_1.html |access-date=2023-02-23 |website=www.business-standard.com |language=en}}</ref>


Also, on 22 February 2023, the bank issued 12,03,745 equity shares to its employees under the company ESOP plan.<ref>{{Cite web |title=IDFC First Bank allots shares worth Rs 1.2 cr to employees as stock options |url=https://www.freepressjournal.in/business/idfc-first-bank-allots-shares-worth-rs-12-cr-to-employees-as-stock-options |access-date=2023-02-23 |website=Free Press Journal |language=en}}</ref>
In July 2024, [[Life Insurance Corporation]] raised its stake in the bank to 2.68%.<ref>{{Cite news |last= |first= |date=2024-07-04 |title=LIC raises stake in IDFC First Bank to 2.68% |url=https://www.thehindu.com/business/lic-raises-stake-in-idfc-first-bank-to-268/article68367906.ece |access-date=2024-10-29 |work=The Hindu |language=en-IN |issn=0971-751X}}</ref>


On September 12, 2023, US-based GQG Partners acquired an additional 5.1 crore shares, equivalent to a 0.76% stake, from V. Vaidyanathan in a block deal conducted on the stock exchange. As a result, GQG Partners' ownership in the bank rose to 3.36%.<ref>{{Cite web |title=IDFC First Bank rises 2% on Rs 479.5-cr block deal with GQG Partners |url=https://www.moneycontrol.com/europe/news/business/markets/idfc-first-bank-rises-2-on-rs-479-5-cr-block-deal-with-gqg-partners-11345731.html |access-date=2023-09-14 |website=Moneycontrol}}</ref><ref>{{Cite web |title=US-based GQG Partners ups IDFC First Bank stake, acquires shares from CEO V. Vaidyanathan |url=https://www.telegraphindia.com/business/us-based-gqg-partners-ups-idfc-first-bank-stake-acquires-shares-from-ceo-v-vaidyanathan/cid/1965600 |access-date=2023-09-14 |website=www.telegraphindia.com |language=en}}</ref>
In May 2025, Warburg Pincus initiated the acquisition of a 10% stake by seeking approval from the [[Competition Commission of India]].<ref>{{Cite web |last= |first= |title=Warburg Pincus seeks CCI approval to buy 10% stake in IDFC First Bank |url=https://www.business-standard.com/companies/news/warburg-pincus-seeks-cci-approval-to-buy-10-stake-in-idfc-first-bank-125050100747_1.html |archive-url=https://web.archive.org/web/20250501143201/https://www.business-standard.com/companies/news/warburg-pincus-seeks-cci-approval-to-buy-10-stake-in-idfc-first-bank-125050100747_1.html |archive-date=1 May 2025 |access-date=2025-05-19 |website=www.business-standard.com |language=en-US |url-status=live }}</ref><ref>{{Cite web |last=Kunjumon |first=Oliviya |date=2025-05-02 |title=IDFC First Bank rallies 2% after Warburg Pincus seeks CCI nod to buy 10% |url=https://www.financialexpress.com/market/idfc-first-bank-in-focus-warburg-pincus-seeks-cci-nod-to-buy-10-3829767/ |access-date=2025-05-19 |website=Financialexpress |language=en}}</ref> However, the institutional shareholders rejected the proposal to grant the group a board seat.<ref>{{Cite news |last=Sundaresan |first=Malvika |date=19 May 2025 |title=Shareholders reject board seat to Warburg-backed investor in IDFC FIRST Bank |url=https://www.moneycontrol.com/news/business/shareholders-reject-board-seat-to-warburg-backed-investor-in-idfc-first-bank-13031367.html |access-date=19 May 2025 |work=[[Moneycontrol]]}}</ref>


== Operations ==
== Operations ==
The bank begin to grow its loans with a particular focus on retail as it comes out of nearly four-year self-imposed restrictions on growth while building the deposit franchise.<ref>{{Cite web |title=Can IDFC First Bank make its mark in retail banking space? |url=https://economictimes.indiatimes.com/markets/stocks/news/can-idfc-first-bank-make-its-mark-in-retail-banking-space/articleshow/93747096.cms |access-date=2022-12-12 |website=The Economic Times}}</ref> As of 22 October 2022, IDFC First Bank reports a 266 per cent jump in its net profit at ₹556 crore for the quarter ended September 2022.<ref>{{Cite web |title=IDFC First Bank Q2 net jumps 266% to Rs 556 cr |url=https://www.financialexpress.com/industry/banking-finance/idfc-first-bank-q2-net-jumps-266-to-rs-556-cr/2729210/ |access-date=2022-12-13 |website=Financialexpress |date=23 October 2022 |language=en}}</ref> Its core operating income (excluding trading gains) rose by 35 per cent from a year ago to ₹3,947 crore in Q2 of 2022-23 fiscal year. Net interest income climbed 32 per cent at ₹3,002 crore, while fee and other income spurted by 44 per cent to ₹945 crore in the September quarter of FY23.<ref>{{Cite web |date=2022-10-22 |title=IDFC First Bank Q2 net profit jumps 266% to Rs 556 cr; NII climbs 32% |url=https://www.business-standard.com/article/companies/idfc-first-bank-q2-net-profit-jumps-266-to-rs-556-cr-nii-climbs-32-122102200755_1.html |access-date=2022-12-13 |website=www.business-standard.com |language=en |agency=Press Trust of India}}</ref><ref>{{Cite web |last=PTI |title=IDFC First Bank Q2 Net Jumps 266% To Rs 556 Crore |url=https://www.bqprime.com/quarterly-earnings/idfc-first-bank-q2-net-jumps-266-to-rs-556-crore |access-date=2022-12-13 |website=BQ Prime |date=22 October 2022 |language=en}}</ref>
[[File:IDFC First Bank Prabhadevi Branch.jpg|thumb|A branch of IDFC First Bank in [[Prabhadevi]], Mumbai]]
As of November 2022, the bank had 809 branches, 249 asset service centres, 925 ATMs, and 606 rural business correspondent centres across the country.<ref>{{Cite news |last=Market |first=Capital |date=2022-11-05 |title=IDFC First Bank gets board approval to raise Rs 4,000 cr |work=Business Standard India |url=https://www.business-standard.com/article/news-cm/idfc-first-bank-gets-board-approval-to-raise-rs-4-000-cr-122110500178_1.html |access-date=2022-12-12}}</ref><ref>{{Cite web |last=Korgaonkar |first=Deepak |date=2023-06-15 |title=IDFC First Bank at over 6-yr high; zooms 47% in 2 months on stable outlook |url=https://www.business-standard.com/markets/news/idfc-first-bank-at-over-6-yr-high-zooms-47-in-2-months-on-stable-outlook-123061500275_1.html |access-date=2023-06-21 |website=www.business-standard.com |language=en-US}}</ref><ref>{{Cite web |last=Kayastha |first=Anshika |date=2023-08-08 |title=Want to stay on the pitch for long, not hit sixes and fours: IDFC First Bank MD |url=https://www.thehindubusinessline.com/money-and-banking/want-to-stay-on-the-pitch-for-long-not-hit-sixes-and-fours-idfc-first-bank-md/article67172365.ece |access-date=2023-09-03 |website=BusinessLine |language=en}}</ref>


=== Transformation ===
=== Products and services ===
[[File:IDFC First Bank HSR Layout Sector 1 Branch.jpg|thumb|A branch of IDFC First Bank in [[HSR Layout]], Bangalore]]
The bank provides products and services related to [[retail banking]], [[wholesale banking]] and [[investment banking]].<ref>{{Cite web |title=Home loans are our biggest driver and they'll keep growing: V Vaidyanathan, MD & CEO, IDFC First Bank |url=https://www.financialexpress.com/industry/banking-finance/home-loans-are-our-biggest-driver-and-theyll-keep-growing-v-vaidyanathan-md-ceo-idfc-first-bank/2515715/ |access-date=2022-12-12 |website=Financialexpress |date=7 May 2022 |language=en}}</ref><ref>{{Cite news |last=Kulkarni |first=Sneha |title=IDFC First Bank revises savings account interest rate: Earn up to 6% interest rates on this amount |work=The Economic Times |url=https://economictimes.indiatimes.com/wealth/invest/idfc-first-bank-revises-savings-account-interest-rate-earn-up-to-6-interest-rates-on-this-amount/articleshow/90486743.cms |access-date=2022-08-10}}</ref><ref>{{Cite web |title=IDFC First Bank to give 7% interest on savings account opened through video KYC |url=https://www.financialexpress.com/industry/banking-finance/idfc-first-bank-to-give-7-interest-on-savings-account-opened-through-video-kyc/1972969/ |access-date=2022-08-10 |website=Financialexpress |date=28 May 2020 |language=en}}</ref><ref>{{Cite web |title=Interest rate on Savings account up to 6% p.a. {{!}} IDFC FIRST Bank |url=https://www.idfcfirstbank.com/personal-banking/accounts/savings-account/interest-rate#:~:text=Bank%20interest%20rates%20on%20Savings%20Account&text=We%20offer%20one%20of%20the,of%20up%20to%206%25%20p.a.&text=What%27s%20more,%20you%20earn%20this,out%20this%20interest%20every%20month. |access-date=2022-08-10 |website=www.idfcfirstbank.com}}</ref>


IDFC FIRST Bank reached a ROA of 1% within three and a half years.<ref>{{Cite news |last1=Shukla |first1=Saloni |last2=Rangan |first2=MC Govardhana |title=IDFC First Bank's transformation to retail complete; NPA woes behind, says CEO V Vaidyanathan |work=The Economic Times |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/idfc-first-banks-transformation-to-retail-complete-npa-woes-behind-says-ceo-v-vaidyanathan/articleshow/95387208.cms |access-date=2022-12-12}}</ref> The bank transformed from infrastructure to retail banking in four years since the merger, increasing the CASA ratio from 8.6% to 49.77% (March 31, 2023) and increased retail deposits from 27% to 76% of total deposits.<ref>{{Cite news |date=2023-05-02 |title=IDFC FIRST Bank FY23 Profit After Tax Highest-Ever at Rs. 2,437 |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/press-releases/2023-05-02/idfc-first-bank-fy23-profit-after-tax-highest-ever-at-rs-2-437 |access-date=2023-06-21}}</ref>
In 2017, IDFC Bank launched an [[Aadhaar]]-linked cashless merchant solution.<ref>{{Cite news |last=K.R.Srivats |date=2017-03-07 |title=IDFC Bank takes the lead, launches Aadhaar Pay |language=en |work=The Hindu Business Line |url=http://www.thehindubusinessline.com/money-and-banking/idfc-bank-takes-the-lead-launches-aadhaar-pay/article9574037.ece |access-date=2017-03-09}}</ref><ref>{{Cite news |title=IDFC Bank launches aadhaar-linked cashless merchant solution – The Economic Times |newspaper=The Economic Times |url=http://economictimes.indiatimes.com/industry/banking/finance/banking/idfc-bank-launches-aadhaar-linked-cashless-merchant-solution/articleshow/56170045.cms |access-date=2017-01-17}}</ref>


As of November 2022, the bank had expanded to 809 branches, 249 asset service centres, 925 ATMs, and 606 rural business correspondent centres across the country.<ref>{{Cite news |last=Market |first=Capital |date=2022-11-05 |title=IDFC First Bank gets board approval to raise Rs 4,000 cr |work=Business Standard India |url=https://www.business-standard.com/article/news-cm/idfc-first-bank-gets-board-approval-to-raise-rs-4-000-cr-122110500178_1.html |access-date=2022-12-12}}</ref><ref>{{Cite web |last=Korgaonkar |first=Deepak |date=2023-06-15 |title=IDFC First Bank at over 6-yr high; zooms 47% in 2 months on stable outlook |url=https://www.business-standard.com/markets/news/idfc-first-bank-at-over-6-yr-high-zooms-47-in-2-months-on-stable-outlook-123061500275_1.html |access-date=2023-06-21 |website=www.business-standard.com |language=en-US}}</ref>
The bank became a member of the [[Open Network for Digital Commerce]] in September 2022. Subsequently, it began enrolling small merchants, who are existing customers with current accounts, onto a partner application registered with ONDC.<ref>{{Cite web |last=Livemint |date=2022-09-07 |title=IDFC First Bank joins ONDC |url=https://www.livemint.com/companies/news/idfc-first-bank-joins-ondc-11662529730670.html |access-date=2023-07-13 |website=mint |language=en}}</ref><ref>{{Cite web |date=2022-09-07 |title=IDFC First Bank joins ONDC — what does it mean for you? |url=https://www.cnbctv18.com/retail/idfc-first-bank-joins-e-commerce-network-ondc--what-does-it-mean-for-you-14674781.htm |access-date=2023-07-13 |website=cnbctv18.com |language=en}}</ref> In 2023, it launched [[central bank digital currency]] under the guidance of the RBI.<ref>{{Cite news |last=Ray |first=Anulekha |date=2022-11-09 |title=RBI CBDC: Digital Rupee pilot starts from November 1; SBI, HDFC, 7 other banks to participate in wholesale launch |work=The Economic Times |url=https://economictimes.indiatimes.com/wealth/save/rbi-cbdc-digital-rupee-pilot-to-start-from-november-1-sbi-hdfc-7-other-banks-to-participate/articleshow/95205659.cms |access-date=2023-07-13 |issn=0013-0389}}</ref>


As of August 2023, there has been a decline of 357 basis points in the CASA ratio due to customers' transition from savings accounts to fixed deposits. Furthermore, additional funds are predominantly originating from term deposits rather than CASA. Considering the current interest rate scenario in the country, the CASA ratio might experience a slight reduction from its existing level of 46.5 percent.<ref>{{Cite web |last=Kayastha |first=Anshika |date=2023-08-08 |title=Want to stay on the pitch for long, not hit sixes and fours: IDFC First Bank MD |url=https://www.thehindubusinessline.com/money-and-banking/want-to-stay-on-the-pitch-for-long-not-hit-sixes-and-fours-idfc-first-bank-md/article67172365.ece |access-date=2023-09-03 |website=BusinessLine |language=en}}</ref>
IDFC First Bank operates in [[GIFT City|Gujarat International Finance Tec-City (GIFT City)]], India’s international financial services centre in Gandhinagar, Gujarat, regulated by the [[International Financial Services Centres Authority]]<ref>{{Cite web |date=2025-12-18 |title=IDFC FIRST Bank launches foreign currency savings account for NRIs in GIFT City - CNBC TV18 |url=https://www.cnbctv18.com/personal-finance/idfc-first-bank-launches-foreign-currency-savings-account-for-nris-in-gift-city-ws-l-19795255.htm |access-date=2026-03-07 |website=CNBCTV18 |language=en}}</ref>. In December 2025, the bank introduced a foreign currency savings account for [[Indian diaspora|non-resident Indians]] through its GIFT City branch, enabling deposits in currencies such as US dollars and euros.<ref>{{Cite journal |last=DAS |first=AYUSH |date=2025 |title=Legal and Regulatory Insights on the IDFC First Bank -IDFC Limited Merger |url=https://doi.org/10.2139/ssrn.5160407 |journal=SSRN Electronic Journal |doi=10.2139/ssrn.5160407 |issn=1556-5068}}</ref> The bank also offers foreign currency fixed deposits and corporate banking services, including trade finance and cross-border transactions.<ref>{{Cite web |title=IDFC FIRST Bank introduces Unique IDFC FIRST Global Savings for NRIs in GIFT City |url=https://www.tribuneindia.com/news/business/idfc-first-bank-introduces-unique-idfc-first-global-savings-for-nris-in-gift-city/ |access-date=2026-03-07 |website=The Tribune |language=en}}</ref>


=== Products and services ===
===Rural lending===
The bank provides products and services related to [[retail banking]], [[wholesale banking]] and [[investment banking]]. But, among other products, [[home loans]] continue to be the biggest growth drivers for the bank.<ref>{{Cite web |title=Home loans are our biggest driver and they'll keep growing: V Vaidyanathan, MD & CEO, IDFC First Bank |url=https://www.financialexpress.com/industry/banking-finance/home-loans-are-our-biggest-driver-and-theyll-keep-growing-v-vaidyanathan-md-ceo-idfc-first-bank/2515715/ |access-date=2022-12-12 |website=Financialexpress |date=7 May 2022 |language=en}}</ref> The company also offers one of the highest interest rate for saving accounts in the country, with an interest rate of 6%.<ref>{{Cite news |last=Kulkarni |first=Sneha |title=IDFC First Bank revises savings account interest rate: Earn up to 6% interest rates on this amount |work=The Economic Times |url=https://economictimes.indiatimes.com/wealth/invest/idfc-first-bank-revises-savings-account-interest-rate-earn-up-to-6-interest-rates-on-this-amount/articleshow/90486743.cms |access-date=2022-08-10}}</ref><ref>{{Cite web |title=IDFC First Bank to give 7% interest on savings account opened through video KYC |url=https://www.financialexpress.com/industry/banking-finance/idfc-first-bank-to-give-7-interest-on-savings-account-opened-through-video-kyc/1972969/ |access-date=2022-08-10 |website=Financialexpress |date=28 May 2020 |language=en}}</ref><ref>{{Cite web |title=Interest rate on Savings account up to 6% p.a. {{!}} IDFC FIRST Bank |url=https://www.idfcfirstbank.com/personal-banking/accounts/savings-account/interest-rate#:~:text=Bank%20interest%20rates%20on%20Savings%20Account&text=We%20offer%20one%20of%20the,of%20up%20to%206%25%20p.a.&text=What%27s%20more,%20you%20earn%20this,out%20this%20interest%20every%20month. |access-date=2022-08-10 |website=www.idfcfirstbank.com}}</ref>
The bank's rural lending portfolio consists of 60% women borrowers, as of October 2023.<ref>{{Cite web |last1=Velonie |first1=Ajit |last2=Sri Narayanan |first2=Subha |last3=Gupta |first3=Leena |date=9 October 2023 |title=CRISIL Rating Rationale IDFC FIRST Bank Limited |url=https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/IDFCFIRSTBankLimited_October%2009,%202023_RR_328451.html |access-date=2024-11-30 |website=[[CRISIL]]}}</ref> The portfolio has a gross NPA of 1.2% and a net NPA of 0.3%.<ref>{{Cite web |last=Sharma |first=Saurabh |date=2023-12-13 |title=BT500: 'Tragic to see rural India is most under-financed,' says IDFC First Bank MD & CEO V Vaidyanathan |url=https://www.businesstoday.in/industry/banks/story/bt500-tragic-to-see-rural-india-is-most-under-financed-says-idfc-first-bank-md-ceo-v-vaidyanathan-409360-2023-12-13 |access-date=2024-11-30 |website=Business Today |language=en}}</ref>


The bank became a member of the [[Open Network for Digital Commerce]] in September 2022. Subsequently, it began enrolling small merchants, who are existing customers with current accounts, onto a partner application registered with ONDC. This application is anticipated to facilitate transactions for small merchants through ONDC's electronic network.<ref>{{Cite web |last=Livemint |date=2022-09-07 |title=IDFC First Bank joins ONDC |url=https://www.livemint.com/companies/news/idfc-first-bank-joins-ondc-11662529730670.html |access-date=2023-07-13 |website=mint |language=en}}</ref><ref>{{Cite web |date=2022-09-07 |title=IDFC First Bank joins ONDC — what does it mean for you? |url=https://www.cnbctv18.com/retail/idfc-first-bank-joins-e-commerce-network-ondc--what-does-it-mean-for-you-14674781.htm |access-date=2023-07-13 |website=cnbctv18.com |language=en}}</ref>
In South and Central India, the rural lending is led by IDFC First Bharat Limited (IFBL) which traces its roots to [[Grama Vidiyal]], a [[Tamil Nadu]]-based public charitable trust established in 1986. In 2003, it became a [[microfinance]] institution called [[Grama Vidiyal|Grama Vidiyal Micro Finance Limited]] (GVMFL). In 2016, IDFC Bank acquired GVMFL, turning it into a wholly owned subsidiary of the bank.<ref>{{Cite web |date=2016-07-25 |title=IDFC Bank buys Grama Vidiyal Micro |url=https://www.thehindubusinessline.com/specials/emerging-entrepreneurs/idfc-bank-buys-grama-vidiyal-micro/article8897929.ece |access-date=2024-03-31 |website=BusinessLine |language=en}}</ref><ref>{{Cite web |date=2016-07-13 |title=IDFC Bank acquires Grama Microfinance |url=https://indianexpress.com/article/business/companies/idfc-bank-acquires-grama-microfinance-2910137/ |access-date=2024-03-31 |website=The Indian Express |language=en}}</ref> GVMFL later became known as IDFC First Bharat Limited.<ref>{{Cite news |last=News Service |first=PTI |author-link=Press Trust of India |date=25 October 2018 |title=IDFC Bank to be renamed as IDFC First Bank after merging with Capital First |url=https://www.business-standard.com/article/finance/idfc-bank-to-be-renamed-as-idfc-first-bank-after-merging-with-capital-first-118102501136_1.html |access-date=31 March 2024 |work=[[Business Standard]]}}</ref>


== Financials ==
== Financials ==
The bank achieved a profit after tax (PAT) of Rs. 2437 crore in the financial year 2023, maintaining a capital adequacy ratio of 16.82%. The bank's retail loans showing a gross non-performing asset (NPA) ratio of 1.65% and a net NPA ratio of 0.55% as of March 31, 2023. The overall gross NPA ratio is 2.51%, while the net NPA ratio is 0.86%. Excluding the infrastructure sector, which is being phased out, the gross NPA and net NPA ratios are 1.84% and 0.86%, respectively.<ref>{{Cite web |last=Dixit |first=Pranav |date=2023-04-29 |title=IDFC FIRST Bank reports highest-ever profit at Rs 2,437 crore in FY23 |url=https://www.businesstoday.in/industry/banks/story/idfc-first-bank-reports-highest-ever-profit-at-rs-2437-crore-in-fy23-379408-2023-04-29 |access-date=2023-07-13 |website=[[Business Today (India)|Business Today]] |language=en}}</ref>
In the financial year 2024, the bank had a [[capital adequacy ratio]] of 16.82%.<ref>{{Cite web |date=2024-09-02 |title=IDFC FIRST Bank Achieves Lowest-Ever Gross NPA of 1.88% in FY24, says V Vaidyanathan |url=https://www.outlookbusiness.com/corporate/idfc-first-bank-hits-record-low-gross-npa-of-188-for-fy24-says-v-vaidyanathan |access-date=2024-10-29 |website=Outlook Business |language=en}}</ref> As of 30 September 2024, the overall gross [[Non-performing loan|non-performing asset]] (NPA) ratio is 1.92%, while the net NPA ratio is 0.48%.<ref>{{Cite news |last=Singh |first=Navdeep |date=2024-10-28 |title=IDFC First Bank shares nosedive 10%, hit 52-week low as Q2 profit plummets 73% |url=https://economictimes.indiatimes.com/markets/stocks/news/idfc-first-bank-shares-in-focus-after-q2-profit-slumps-72-yoy-to-rs-201-crore/articleshow/114675360.cms?from=mdr |access-date=2024-10-29 |work=The Economic Times |issn=0013-0389}}</ref>


== Milestones ==
In 2023, it became one of the top 10 banks in India by [[market capitalization]].<ref>{{Cite web |last=Sultana |first=Nasrin |title=How Does IDFC First Stack Up Among India's Top 10 Most Valued Banks |url=https://www.forbesindia.com/article/take-one-big-story-of-the-day/how-does-idfc-first-stack-up-among-indias-top-10-most-valued-banks/88019/1 |access-date=2023-09-14 |website=Forbes India |language=en}}</ref><ref>{{Cite web |last=Sonavane |first=Ravindra |title=IDFC First joins elite club of 10 most valuable listed banks in India |url=https://www.moneycontrol.com/europe/news/business/earnings/idfc-first-joins-elite-club-of-10-most-valuable-listed-banks-in-india-11309231.html |access-date=2023-09-14 |website=Moneycontrol}}</ref>


* '''2003''' - The company raised $200 million for the India Development Fund, the first infrastructure-focused private equity fund.<ref>{{Cite web |title=IDFC: Reports, Company History, Directors Report, Chairman's Speech, Auditors Report of IDFC - NDTV |url=https://www.ndtv.com/business |access-date=2022-12-12 |website=www.ndtv.com |language=en}}</ref>
== Sponsorships ==
* '''2009''' - IDFC signs the UNGC Global Compact.<ref>{{Cite journal |last1=Kumar |first1=Kishore |last2=Prakash |first2=Ajai |date=2019-01-10 |title=Examination of sustainability reporting practices in Indian banking sector |url=https://doi.org/10.1186/s41180-018-0022-2 |journal=Asian Journal of Sustainability and Social Responsibility |volume=4 |issue=1 |pages=2 |doi=10.1186/s41180-018-0022-2 |s2cid=256465929 |issn=2365-6417}}</ref>
In 2023, the bank obtained the title sponsorship rights for all [[Board of Control for Cricket in India]]'s international and domestic home matches.<ref>{{Cite news |last=Farooqui |first=Javed |date=2023-08-25 |title=BCCI awards title sponsorship rights to IDFC First for Rs 235 crore |work=The Economic Times |url=https://economictimes.indiatimes.com/news/sports/bcci-awards-title-sponsorship-rights-to-idfc-first-for-rs-235-crore/articleshow/103071147.cms |access-date=2023-09-03 |issn=0013-0389}}</ref><ref>{{Cite web |date=2023-08-25 |title=IDFC FIRST Bank secures title rights for Team India's home internationals for Rs 4.2 crore per match |url=https://www.cnbctv18.com/sports/idfc-first-bank-secures-title-rights-for-team-indias-home-internationals-for-rs-42-crore-per-match-17640271.htm |access-date=2023-09-03 |website=cnbctv18.com |language=en}}</ref>
* '''2010''' - Infrastructure Development Finance Corporation (IDFC) has raised ₹2,654 crore by a qualified institutional placement (QIP), attracting demand for twice the shares on offer, according to an advisor to the sale.<ref>{{Cite news |last=Reporter |first=B. S. |date=2010-06-30 |title=IDFC sells shares worth Rs 2,654 cr |work=Business Standard India |url=https://www.business-standard.com/article/finance/idfc-sells-shares-worth-rs-2-654-cr-110063000072_1.html |access-date=2022-12-12}}</ref>
* '''2013''' - IDFC becomes the first Indian institution to adopt Equator principles.<ref>{{Cite web |date=2013-06-10 |title=IDFC becomes first Indian institution to adopt Equator principles - Photos News , Firstpost |url=https://www.firstpost.com/photos/fwire-gallery/idfc-becomes-first-indian-institution-to-adopt-equator-principles-858941.html |access-date=2022-12-12 |website=Firstpost |language=en}}</ref>
* '''2014''' - RBI grants a banking license to IDFC Bank.<ref>{{Cite news |title=RBI grants in-principle approval to IDFC, Bandhan for new bank licences |work=The Economic Times |url=https://economictimes.indiatimes.com/news/economy/policy/rbi-grants-in-principle-approval-to-idfc-bandhan-for-new-bank-licences/articleshow/33137000.cms?from=mdr |access-date=2022-12-12}}</ref>
* '''2017''' - The bank IDFC Bank is the first in India to launch an [[Aadhaar]]-linked cashless merchant solution.<ref>{{Cite news |last=K.R.Srivats |date=2017-03-07 |title=IDFC Bank takes the lead, launches Aadhaar Pay |language=en |work=The Hindu Business Line |url=http://www.thehindubusinessline.com/money-and-banking/idfc-bank-takes-the-lead-launches-aadhaar-pay/article9574037.ece |access-date=2017-03-09}}</ref><ref>{{Cite news |title=IDFC Bank launches aadhaar-linked cashless merchant solution – The Economic Times |newspaper=The Economic Times |url=http://economictimes.indiatimes.com/industry/banking/finance/banking/idfc-bank-launches-aadhaar-linked-cashless-merchant-solution/articleshow/56170045.cms |access-date=2017-01-17}}</ref>
* '''2018''' - IDFC Bank merged with Capital First to create IDFC First Bank.<ref>{{Cite web |title=Capital First merges with IDFC Bank to create IDFC First Bank |url=https://www.moneycontrol.com/news/business/capital-first-merges-with-idfc-bank-to-create-idfc-first-bank-3305581.html |access-date=2022-12-12 |website=Moneycontrol |date=18 December 2018 |language=en}}</ref>
* '''2020''' - The bank announced that it has signed [[Amitabh Bachchan]], as its first brand ambassador.<ref>{{Cite news |last=IDFC FIRST Bank |date=11 March 2020 |title=IDFC FIRST Bank names India's iconic personality Mr. Amitabh Bachchan as Brand Ambassador |work=Press Release |url=https://www.idfcfirstbank.com/content/dam/IDFCFirstBank/in-the-press/Mr-Amitabh-Bachchan-is-brand-ambassador-of-IDFC-FIRST-Bank.pdf |access-date=21 March 2020}}</ref>
* '''2021''' - It announced the entry into the credit card sector with low interest rates and interest free credit in 2021.<ref>{{Cite news |last=Mint |date=19 January 2021 |title=IDFC First Bank to offer interest-free cash on credit cards |url=https://www.livemint.com/industry/banking/idfc-first-bank-to-offer-interest-free-cash-on-credit-cards-11611025437572.html |access-date=21 January 2021}}</ref>
* '''2023''' - Launches [[central bank digital currency]] under the guidance of the RBI.<ref>{{Cite news |last=Ray |first=Anulekha |date=2022-11-09 |title=RBI CBDC: Digital Rupee pilot starts from November 1; SBI, HDFC, 7 other banks to participate in wholesale launch |work=The Economic Times |url=https://economictimes.indiatimes.com/wealth/save/rbi-cbdc-digital-rupee-pilot-to-start-from-november-1-sbi-hdfc-7-other-banks-to-participate/articleshow/95205659.cms |access-date=2023-07-13 |issn=0013-0389}}</ref>
* '''2023''' - The bank secured exclusive sponsorship rights for all [[Board of Control for Cricket in India]]'s international and domestic home matches.<ref>{{Cite news |last=Farooqui |first=Javed |date=2023-08-25 |title=BCCI awards title sponsorship rights to IDFC First for Rs 235 crore |work=The Economic Times |url=https://economictimes.indiatimes.com/news/sports/bcci-awards-title-sponsorship-rights-to-idfc-first-for-rs-235-crore/articleshow/103071147.cms |access-date=2023-09-03 |issn=0013-0389}}</ref><ref>{{Cite web |date=2023-08-25 |title=IDFC FIRST Bank secures title rights for Team India's home internationals for Rs 4.2 crore per match |url=https://www.cnbctv18.com/sports/idfc-first-bank-secures-title-rights-for-team-indias-home-internationals-for-rs-42-crore-per-match-17640271.htm |access-date=2023-09-03 |website=cnbctv18.com |language=en}}</ref>
* '''2023''' - IDFC First Bank became the top 10 most valuable publicly traded banks in India, with a market capitalization of Rs 66,386.78 crore.<ref>{{Cite web |last=Sultana |first=Nasrin |title=How Does IDFC First Stack Up Among India's Top 10 Most Valued Banks |url=https://www.forbesindia.com/article/take-one-big-story-of-the-day/how-does-idfc-first-stack-up-among-indias-top-10-most-valued-banks/88019/1 |access-date=2023-09-14 |website=Forbes India |language=en}}</ref><ref>{{Cite web |last=Sonavane |first=Ravindra |title=IDFC First joins elite club of 10 most valuable listed banks in India |url=https://www.moneycontrol.com/europe/news/business/earnings/idfc-first-joins-elite-club-of-10-most-valuable-listed-banks-in-india-11309231.html |access-date=2023-09-14 |website=Moneycontrol}}</ref>


== Philanthropy ==
== Philanthropy ==
Under bank’s employee-funded ''Ghar Ghar Ration'' program, the bank employees will supply ration kits to 50,000 low income customers whose livelihoods has been impacted by the pandemic.<ref>{{Cite web |title=IDFC FIRST Bank launches Customer COVID relief Ghar Ghar Ration Program |url=https://www.financialexpress.com/money/idfc-first-bank-launches-customer-covid-relief-ghar-ghar-ration-program/2269790/ |access-date=2022-12-12 |website=Financialexpress |date=11 June 2021 |language=en}}</ref> As many as 16,000 beneficiaries have been reached across Rajasthan, Madhya Pradesh, Maharashtra, Odisha, Gujarat, Karnataka, Haryana, Tamil Nadu, Andhra Pradesh, and Chhattisgarh under this program. The lender has also identified 250 vulnerable families who have lost an earning member of their family to [[COVID-19 pandemic in India|COVID-19]] with a cash relief support of ₹10,000 in a partnership with 'Give India'.<ref>{{Cite web |title=IDFC First Bank Employees to Fund Covid Relief for Customers |url=https://outlookmoney.com/health/idfc-first-bank-employees-to-fund-covid-relief-for-customers-7654 |access-date=2022-12-12 |website=Outlook Money |language=en}}</ref>
Under bank's employee-funded ''Ghar Ghar Ration'' program, the bank employees will supply ration kits to 50,000 low income customers whose livelihoods has been impacted by the pandemic.<ref>{{Cite web |title=IDFC FIRST Bank launches Customer COVID relief Ghar Ghar Ration Program |url=https://www.financialexpress.com/money/idfc-first-bank-launches-customer-covid-relief-ghar-ghar-ration-program/2269790/ |access-date=2022-12-12 |website=Financialexpress |date=11 June 2021 |language=en}}</ref> As many as 16,000 beneficiaries have been reached across Rajasthan, Madhya Pradesh, Maharashtra, Odisha, Gujarat, Karnataka, Haryana, Tamil Nadu, Andhra Pradesh, and Chhattisgarh under this program. The lender has also identified 250 vulnerable families who have lost an earning member of their family to [[COVID-19 pandemic in India|COVID-19]] with a cash relief support of ₹10,000 in a partnership with 'Give India'.<ref>{{Cite web |title=IDFC First Bank Employees to Fund Covid Relief for Customers |url=https://outlookmoney.com/health/idfc-first-bank-employees-to-fund-covid-relief-for-customers-7654 |access-date=2022-12-12 |website=Outlook Money |date=12 June 2021 |language=en}}</ref>


== Gallery ==
== Controversies ==
{{Gallery
In February 2026, IDFC First Bank [[Haryana Government accounts fraud|reported a suspected fraud]] of approximately ₹590 crore at its [[Chandigarh]] branch. The discrepancy involved accounts linked to departments of the [[Government of Haryana]].<ref>{{cite web |title=Staff collusion led to Haryana Government account fraud: IDFC Bank |url=https://www.thehindu.com/business/Industry/staff-collusion-led-to-haryana-government-account-fraud-idfc-bank/article70666253.ece |website=The Hindu |language=en-IN |date=23 February 2026}}</ref> The issue came to light during a reconciliation process initiated when a government department requested closure of its account.<ref>{{cite web |title=What is the IDFC First Bank Rs 590 crore fraud case? Explained in 10 points |url=https://timesofindia.indiatimes.com/business/india-business/idfc-first-bank-fraud-explained-investigation-share-price-impact-outlook-haryana-government-what-happened-explained-in-10-points/articleshow/128701800.cms |website=The Times of India |date=23 February 2026}}</ref>
| title       = IDFC First Bank branches and ATMs
| align        = center
| footer      = more images can be found on [https://commons.wikimedia.org/w/index.php?search=IDFC+First+Bank&title=Special:MediaSearch&go=Go&type=image wiki commons].
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| File:IDFC_First_Bank_Prabhadevi_Branch.jpg
| alt1=
| IDFC FIRST Bank Prabhadevi Branch, [[Mumbai]], [[Maharashtra]]
| File:IDFC First Bank Waghawadi Bhavnagar Branch.jpg
| alt2=
| IDFC FIRST Bank Waghawadi Branch, [[Bhavnagar]], [[Gujarat]]
| File:IDFC First Bank Anudh Pune Branch.jpg
| alt3=
| IDFC FIRST Bank Aundh Branch. [[Pune]], [[Maharashtra]]
| File:IDFC First Bank Rajamundry Branch.jpg
| alt4=
| IDFC FIRST Bank Rajahmundry Branch, [[Rajahmundry]], [[Andhra Pradesh]]
| File:IDFC FIRST Bank Mobile ATM.jpg
| alt5=
| IDFC FIRST Bank Mobile ATM
}}


== See also ==
== See also ==
 
{{Commons category|IDFC FIRST Bank}}
{{Portal|Banks}}
* [[Banking in India]]
* [[Banking in India]]
* [[List of banks in India]]
* [[List of banks in India]]
* [[Reserve Bank of India]]
* [[Reserve Bank of India]]
* [[Indian Financial System Code]]
* [[Indian Financial System Code]]
* [[List of largest banks]]
* [[List of companies of India]]
* [[Make in India]]


== References ==
== References ==
{{Reflist}}
{{Reflist}}
== Further reading ==
{{Further reading cleanup|date=January 2026}}
*{{Cite report |url=https://www.motilaloswal.com/site/rreports/HTML/635653771929326086/index.htm |title=IDFC Bank - The good old 'new bank' story |last1=Mehta |first1=Alpesh |last2=Kulkari |first2=Vallabh |date=22 April 2015 |publisher=[[Motilal Oswal]] |access-date=3 March 2025}}
*{{Cite journal |last=Lahiri |first=Keka |date=2016 |title=IDFC Bank's Acquisition of Grama Vidiyal Microfinance: A Win Win Deal? |url=https://www.thecasecentre.org/products/view?id=140007 |journal=Amity Research Center, Bangalore |ref=316-0429-1 |via=[[The Case Centre]]}}
*{{Cite book |last1=Biswas |first1=Debasish |last2=Pimpale |first2=Nihal |last3=Ashara |first3=Konark |chapter=Connected by Design - Our Learnings from Designing Digital Profiler Journeys: IDFC Bank Digital Experience |series=Lecture Notes in Computer Science |date=21 September 2017 |volume=10516 |title=Human-Computer Interaction – INTERACT 2017 |publisher=[[Springer Science+Business Media|Springer]] |pages=340–343 |doi=10.1007/978-3-319-68059-0_25 |isbn=978-3-319-68058-3|chapter-url=https://hal.inria.fr/hal-01679818 }}
*{{Cite journal |last=Lukose PJ |first=Jijo |date=March 2019 |title=IDFC Bank and Capital First – A Case of Merger Arbitrage |url=https://forms.iimk.ac.in/websiteadmin/FacultyPublications/Cases/3084Final%20File%20For%20Upload.pdf |journal=IIM-K Case Study |via=[[Indian Institute of Management Kozhikode]]}}
*{{Cite journal |last=Ray |first=Smita |date=2020 |title=IDFC First Bank's Technology-led Banking Services and Digital Media Promotion |url=https://www.thecasecentre.org/products/view?id=168485 |journal=IBS Case Study |publisher=ICFAI Business School Hyderabad |via=[[The Case Centre]]}}
*{{Cite journal |last1=Jose Koreath |first1=Jis |last2=P. Paul |first2=Kemthose |date=January 2021 |title=Corporate Social Responsibility Practices of Banks in India |url=https://www.alberts.edu.in/wp-content/uploads/2022/09/13.-Francis-M-C.pdf#page=77 |journal=Erudition - the Albertian Journal of Management |publisher=[[St. Albert's College]] |volume=15 |issue=1 |issn=0973-7839}}
*{{Cite journal |last=Kilambi |first=Abhinav |date=21 July 2021 |title=Peer Bank Benchmarking of Liquidity Risk Expeiential Learning Project |url=https://repository.nirmauni.ac.in/jspui/handle/123456789/10616 |journal=Institutional Repository @ Nirma University [DSpace] |via=Institute of Management, [[Nirma University]] }}{{Dead link|date=February 2026 |bot=InternetArchiveBot }}
*{{Cite journal |last=Singh Sian |first=Harman |date=December 2022 |title=A Study on Performance Analysis of IDFC First Bank |url=https://ggscw.ac.in/Downloads/A%20Study%20on%20Performance%20Analysis%20of%20IDFC%20First%20Bank.pdf |journal=Drashta Research Journal |volume=11 |issue=44 |pages=154–165 |issn=2277-2480 |via=Guru Gobind Singh College for Women, Chandigarh}}
*{{Cite journal |last1=Mishra |first1=Pooja |last2=Guru Sant |first2=Tatavarty |date=22 February 2024 |title=Examine the level of environmental, social and governance disclosure in sustainability report – a study of the Indian banking sector |journal=International Journal of Innovation Science |publisher=[[Emerald Group Publishing]] |volume=16 |issue=2 |pages=420–442 |doi=10.1108/IJIS-08-2022-0136 |issn=1757-2223}}
*{{Cite journal |last1=Santhosh |first1=S |last2=Ramya |first2=Msr |date=April 2024 |title=A study on financial performance analysis of IDFC First Bank Limited |url=https://www.ijprems.com/uploadedfiles/paper/issue_4_april_2024/33198/final/fin_ijprems1712888776.pdf |journal=International Journal of Progressive Research in Engineering Management and Science |volume=4 |issue=4 |pages=455–459}}
*{{Cite report |title=Benchmarking Reasonableness of Service Charges by Banks in India |last=Das |first=Ashish |date=May 2024 |location=[[Indian Institute of Technology Bombay]] |url=https://www.math.iitb.ac.in/~ashish/workshop/Service_Charges_Report_2024.pdf}}
*{{Cite news |date=23 May 2024 |title=IDFC First Bank named 'class apart' in report |url=https://www.thehindu.com/business/idfc-first-bank-named-class-apart-in-report/article68208508.ece |access-date=3 March 2025 |work=[[The Hindu]]}}
*{{Cite news |last=Keshavdev |first=V |date=22 April 2025 |title=How Warburg doubled down on Vaidyanathan's vision for IDFC First Bank |url=https://www.fortuneindia.com/personal-finance/banking/how-warburg-doubled-down-on-vaidyanathans-vision-for-idfc-first-bank/122351 |access-date=19 May 2025 |work=[[Fortune India]]}}


{{Banking in India}}
{{Banking in India}}
{{Nifty 200 companies}}
{{Nifty 200 companies}}


[[Category:IDFC First Bank| ]]
[[Category:2015 establishments in Maharashtra]]
[[Category:2015 establishments in Maharashtra]]
[[Category:Banks based in Mumbai]]
[[Category:Banks based in Mumbai]]
[[Category:IDFC First Bank]]
[[Category:Warburg Pincus companies]]
[[Category:Warburg Pincus companies]]
[[Category:Indian companies established in 2015]]
[[Category:Indian companies established in 2015]]

Latest revision as of 10:45, 7 March 2026


IDFC FIRST Bank
Formerly
IDFC Bank (2015–2018)
Traded asBSE: 539437
NSE: IDFCFIRSTB
ISINTemplate:ISIN
IndustryBanking
Financial services
FoundedOctober 2015; 10 years ago (2015-10)
HeadquartersMumbai, Maharashtra, India
Key people
V. Vaidyanathan (MD & CEO)
Products
RevenueIncrease ₹36,257 crore (US$5.1 billion) (2024)[1]
Increase ₹6,239 crore (US$870 million) (2024)[1]
Increase ₹1,491 crore (US$210 million) (2025)[1]
Total assetsIncrease ₹343,817 crore (US$48 billion) (2025)[2]
Total equityIncrease ₹25,145 crore (US$3.5 billion) (2024)[2]
Number of employees
49,123 (January 2026) [3]
Subsidiaries
Capital ratio class39 = tel13.28% [1]
Rating
Websitewww.idfcfirst.bank.in

IDFC First Bank (stylised as IDFC FIRST Bank) is an Indian private sector bank based in Mumbai. Founded in 2015 as a banking subsidiary of IDFC Limited, it shifted focus from infrastructure financing to retail banking after its 2018 merger with Capital First.[7] In 2024, IDFC First Bank took over the parent company IDFC Limited in a reverse merger.[8]

History[edit | edit source]

IDFC Limited was set up in 1997 by Government of India to finance infrastructure projects in India.[9] With time, the company diversified into asset management, institutional broking and investment banking.

In 2005, The Government of India and IDBI Bank, a public sector bank were the sponsor shareholders of IDFC. The government brought down its stake to 34.91% through IDFC's initial public offering in 2005.[10]

In 2014, the Reserve Bank of India granted in-principle approval to IDFC Limited to set up a new bank in the private sector.[11] Following this, the IDFC Limited divested its infrastructure finance assets and liabilities to a new entity - IDFC Bank. The bank was launched through this demerger from IDFC Limited, and it was officially inaugurated by the Prime Minister of India Narendra Modi in October 2015.[12][13]

IDFC Bank started operations on 1 October 2015.[14][15] The parent entity, IDFC Limited, retained the asset management, institutional broking and infrastructure debt fund businesses through IDFC Financial Holding Company Limited (IDFC FHCL).[16]

IDFC Bank faced challenges due to bad loans from legacy infrastructure accounts. A planned merger with the Shriram Group was called off. By September 2017, the bank's deposits totaled ₹38,890 crore, with a CASA ratio of just 8.2%.[17]

Capital First merger[edit | edit source]

In January 2018, IDFC Bank and MSME financing company Capital First announced a merger.[18] Capital First was founded as Future Capital Holdings under the Future Group, and was acquired by Warburg Pincus and V. Vaidyanathan in 2012.[19][20] As per a September 2017 stock filing, Capital First had a retail loan portfolio of ₹229.7 billion.[21] 139 shares of IDFC Bank were issued for every 10 shares of Capital First as part of the merger share swap.[22]

The merger completed in December 2018, with IDFC Bank changing its name to IDFC First Bank.[23][24] Vaidyanathan took over as the MD and CEO of the merged entity. The Reserve Bank of India approved his appointment for a period of three years, effective from 19 December 2018.[25]

The bank transitioned from infrastructure financing to retail banking in four years since the merger. Its CASA ratio increased from 8.6% to 49.77% and retail deposits went up from 27% to 76% of total deposits, as of March 2023.[26][27]

IDFC Limited merger[edit | edit source]

In July 2023, the board of the bank approved the merger with IDFC Limited.[28][29] After receiving clearance from the Competition Commission of India[30] and the Reserve Bank of India,[31] the merger proposal was approved by the National Company Law Tribunal in May 2024. The proposal, endorsed by the bank's shareholders and NCD holders, involved two steps–IDFC FHCL merging with IDFC Limited, followed by IDFC Limited merging into IDFC First Bank.[32][33]

On 1 October 2024, IDFC Limited merged with the bank.[34] As a result of the merger, 155 equity shares of the bank were allotted for every 100 equity shares of IDFC Limited held by each shareholder in the latter.[35]

Shareholding[edit | edit source]

On 22 February 2023, IDFC Limited announced that it would increase its stake in the bank from 36.38% up to 40%.[36] Also, on 22 February 2023, the bank issued 12,03,745 equity shares to its employees under the company ESOP plan.[37]

On 12 September 2023, US-based GQG Partners acquired a 0.76% stake from V. Vaidyanathan, increasing its ownership in the bank to 3.36%.[38][39]

In July 2024, Life Insurance Corporation raised its stake in the bank to 2.68%.[40]

In May 2025, Warburg Pincus initiated the acquisition of a 10% stake by seeking approval from the Competition Commission of India.[41][42] However, the institutional shareholders rejected the proposal to grant the group a board seat.[43]

Operations[edit | edit source]

A branch of IDFC First Bank in Prabhadevi, Mumbai

As of November 2022, the bank had 809 branches, 249 asset service centres, 925 ATMs, and 606 rural business correspondent centres across the country.[44][45][46]

Products and services[edit | edit source]

A branch of IDFC First Bank in HSR Layout, Bangalore

The bank provides products and services related to retail banking, wholesale banking and investment banking.[47][48][49][50]

In 2017, IDFC Bank launched an Aadhaar-linked cashless merchant solution.[51][52]

The bank became a member of the Open Network for Digital Commerce in September 2022. Subsequently, it began enrolling small merchants, who are existing customers with current accounts, onto a partner application registered with ONDC.[53][54] In 2023, it launched central bank digital currency under the guidance of the RBI.[55]

IDFC First Bank operates in Gujarat International Finance Tec-City (GIFT City), India’s international financial services centre in Gandhinagar, Gujarat, regulated by the International Financial Services Centres Authority[56]. In December 2025, the bank introduced a foreign currency savings account for non-resident Indians through its GIFT City branch, enabling deposits in currencies such as US dollars and euros.[57] The bank also offers foreign currency fixed deposits and corporate banking services, including trade finance and cross-border transactions.[58]

Rural lending[edit | edit source]

The bank's rural lending portfolio consists of 60% women borrowers, as of October 2023.[59] The portfolio has a gross NPA of 1.2% and a net NPA of 0.3%.[60]

In South and Central India, the rural lending is led by IDFC First Bharat Limited (IFBL) which traces its roots to Grama Vidiyal, a Tamil Nadu-based public charitable trust established in 1986. In 2003, it became a microfinance institution called Grama Vidiyal Micro Finance Limited (GVMFL). In 2016, IDFC Bank acquired GVMFL, turning it into a wholly owned subsidiary of the bank.[61][62] GVMFL later became known as IDFC First Bharat Limited.[63]

Financials[edit | edit source]

In the financial year 2024, the bank had a capital adequacy ratio of 16.82%.[64] As of 30 September 2024, the overall gross non-performing asset (NPA) ratio is 1.92%, while the net NPA ratio is 0.48%.[65]

In 2023, it became one of the top 10 banks in India by market capitalization.[66][67]

Sponsorships[edit | edit source]

In 2023, the bank obtained the title sponsorship rights for all Board of Control for Cricket in India's international and domestic home matches.[68][69]

Philanthropy[edit | edit source]

Under bank's employee-funded Ghar Ghar Ration program, the bank employees will supply ration kits to 50,000 low income customers whose livelihoods has been impacted by the pandemic.[70] As many as 16,000 beneficiaries have been reached across Rajasthan, Madhya Pradesh, Maharashtra, Odisha, Gujarat, Karnataka, Haryana, Tamil Nadu, Andhra Pradesh, and Chhattisgarh under this program. The lender has also identified 250 vulnerable families who have lost an earning member of their family to COVID-19 with a cash relief support of ₹10,000 in a partnership with 'Give India'.[71]

Controversies[edit | edit source]

In February 2026, IDFC First Bank reported a suspected fraud of approximately ₹590 crore at its Chandigarh branch. The discrepancy involved accounts linked to departments of the Government of Haryana.[72] The issue came to light during a reconciliation process initiated when a government department requested closure of its account.[73]

See also[edit | edit source]

References[edit | edit source]

  1. ↑ 1.0 1.1 1.2 1.3 "IDFC First Bank" (PDF). Archived from the original (PDF) on 29 April 2024. Retrieved 27 April 2024.
  2. ↑ 2.0 2.1 "IDFC First Bank" (PDF). Archived from the original (PDF) on 29 April 2024. Retrieved 27 April 2024.
  3. ↑ "IDFC First Bank's Employee Count". Tracxn. 28 February 2026. Retrieved 5 March 2026.
  4. ↑ "CRISIL upgrades IDFC First Bank's LT rating to 'AA+'". Capital Market. 5 June 2023. Retrieved 21 June 2023.
  5. ↑ "Ind-Ra affirms IDFC First Bank's debt instruments ratings with stable outlook". Financial Express. 12 December 2023. Retrieved 26 December 2023.
  6. ↑ "IDFC FIRST Bank Ltd Long Term Instruments - Non Convertible Debentures October 03, 2023" (PDF). CARE Ratings. 3 October 2023. Retrieved 1 February 2024.
  7. ↑ "7 things to know about IDFC Bank | Business Standard News". Business-standard.com. 1 October 2015. Retrieved 15 October 2016.
  8. ↑ "IDFC FIRST Bank announces completion of IDFC Ltd merger". Mint. 28 September 2024. Retrieved 3 March 2025.
  9. ↑ Bhagwati, Jaimini (January 2022). Insolvency and Bankruptcy Code (IBC) and Long-Term Bulk Lending in India (PDF). Centre for Social and Economic Progress, New Delhi. p. 6.
  10. ↑ Tiwari, Dheeraj (22 April 2015). "Government may sell stakes in IDFC, Tata Communications via ETF route". The Economic Times. ISSN 0013-0389. Retrieved 3 March 2025.
  11. ↑ "RBI grants in-principle approval to IDFC, Bandhan for new bank licences". The Economic Times. Retrieved 12 December 2022.
  12. ↑ PTI (19 October 2015). "Narendra Modi inaugurates IDFC Bank, talks of banking reforms". mint. Retrieved 12 December 2022.
  13. ↑ "PM inaugurates IDFC Bank | Business Standard News". Business Standard India. Business-standard.com. 19 October 2015. Retrieved 15 October 2016.
  14. ↑ Saha, Manojit (25 July 2015). "IDFC Bank to start operations from Oct 1 | Business Standard News". Business Standard India. Business-standard.com. Retrieved 15 October 2016.
  15. ↑ "IDFC Bk to start ops with few branches by Oct 1: Rajiv Lall". Moneycontrol.com. 12 April 2015. Retrieved 15 October 2016.
  16. ↑ Gopakumar, Gopika (21 July 2021). "IDFC can exit as promoter of IDFC First Bank, clarifies RBI". mint. Retrieved 12 December 2022.
  17. ↑ Iyer, Aparna (15 January 2018). "IDFC Bank, Capital First merger: will the shoe fit this time?". Mint. Retrieved 29 October 2024.
  18. ↑ Tadas, G. A. (August 2020). Need for Setting Up of a New Development Bank (RIS-DP #254) (PDF). New Delhi, India: Research and Information System for Developing Countries. p. 7.
  19. ↑ "Future Group sells Future Capital Holdings to Warburg Pincus for Rs 800 cr". The Economic Times. 5 June 2012. Retrieved 12 December 2024.
  20. ↑ Kalbag, Chaitanya (3 July 2012). "V. Vaidyanathan takes wing with a $17 million stake in a star NBFC". Business Today. Retrieved 3 August 2023.
  21. ↑ Roy, Anup (13 January 2018). "IDFC Bank to merge with Capital First, Vaidyanathan to succeed Lall". Business Standard. Retrieved 29 October 2024.
  22. ↑ sundarajan, Priya (13 January 2018). "IDFC Bank to take over Capital First in share swap deal". www.thehindubusinessline.com. Retrieved 12 December 2022.
  23. ↑ Sinha, Shilpy. "IDFC, Capital First completes merger process to form IDFC First Bank". The Economic Times. eonomictimes.com.
  24. ↑ "Capital First merges with IDFC Bank to create IDFC First Bank". Moneycontrol. 18 December 2018. Retrieved 12 December 2022.
  25. ↑ "RBI approves appointment of V Vaidyanathan as MD, CEO of IDFC First Bank". Moneycontrol. 18 January 2019. Retrieved 12 December 2022.
  26. ↑ "IDFC FIRST Bank FY23 Profit After Tax Highest-Ever at Rs. 2,437". Bloomberg.com. 2 May 2023. Retrieved 21 June 2023.
  27. ↑ Shukla, Saloni; Rangan, MC Govardhana. "IDFC First Bank's transformation to retail complete; NPA woes behind, says CEO V Vaidyanathan". The Economic Times. Retrieved 12 December 2022.
  28. ↑ "India's IDFC to merge with IDFC First Bank in latest consolidation". Reuters. 3 July 2023. Retrieved 4 July 2023.
  29. ↑ "IDFC to merge with IDFC First Bank". The Hindu. 3 July 2023. ISSN 0971-751X. Retrieved 4 July 2023.
  30. ↑ Livemint (17 October 2023). "IDFC gets CCI nod for merger with IDFC First Bank". mint. Retrieved 25 October 2023.
  31. ↑ Bhattacharya, Shubhayan (18 December 2023). "IDFC First Bank Gets RBI Nod For Merger Of IDFC, IDFC Financial Holding With Self". NDTV Profit. Retrieved 26 December 2023.
  32. ↑ PTI (18 May 2024). "Debt, equity holders approve merger of IDFC with IDFC First Bank". BusinessLine. Retrieved 25 June 2024.
  33. ↑ "Majority shareholders of IDFC First Bank approves amalgamation of IDFC Ltd with lender". Business Today. 18 May 2024. Retrieved 25 June 2024.
  34. ↑ "IDFC FIRST Bank announces completion of IDFC Ltd merger". Financialexpress. 27 September 2024. Retrieved 15 October 2024.
  35. ↑ Deshpande, Swapnil (27 September 2024). "IDFC First Bank completes merger with IDFC Limited - CNBC TV18". CNBCTV18. Retrieved 15 October 2024.
  36. ↑ Reporter, B. S. (1 February 2023). "IDFC Ltd to invest Rs 2,200 crore in IDFC First Bank, up its stake to 40%". www.business-standard.com. Retrieved 23 February 2023.
  37. ↑ "IDFC First Bank allots shares worth Rs 1.2 cr to employees as stock options". Free Press Journal. Retrieved 23 February 2023.
  38. ↑ "IDFC First Bank rises 2% on Rs 479.5-cr block deal with GQG Partners". Moneycontrol. Retrieved 14 September 2023.
  39. ↑ "US-based GQG Partners ups IDFC First Bank stake, acquires shares from CEO V. Vaidyanathan". www.telegraphindia.com. Retrieved 14 September 2023.
  40. ↑ "LIC raises stake in IDFC First Bank to 2.68%". The Hindu. 4 July 2024. ISSN 0971-751X. Retrieved 29 October 2024.
  41. ↑ "Warburg Pincus seeks CCI approval to buy 10% stake in IDFC First Bank". www.business-standard.com. Archived from the original on 1 May 2025. Retrieved 19 May 2025.
  42. ↑ Kunjumon, Oliviya (2 May 2025). "IDFC First Bank rallies 2% after Warburg Pincus seeks CCI nod to buy 10%". Financialexpress. Retrieved 19 May 2025.
  43. ↑ Sundaresan, Malvika (19 May 2025). "Shareholders reject board seat to Warburg-backed investor in IDFC FIRST Bank". Moneycontrol. Retrieved 19 May 2025.
  44. ↑ Market, Capital (5 November 2022). "IDFC First Bank gets board approval to raise Rs 4,000 cr". Business Standard India. Retrieved 12 December 2022.
  45. ↑ Korgaonkar, Deepak (15 June 2023). "IDFC First Bank at over 6-yr high; zooms 47% in 2 months on stable outlook". www.business-standard.com. Retrieved 21 June 2023.
  46. ↑ Kayastha, Anshika (8 August 2023). "Want to stay on the pitch for long, not hit sixes and fours: IDFC First Bank MD". BusinessLine. Retrieved 3 September 2023.
  47. ↑ "Home loans are our biggest driver and they'll keep growing: V Vaidyanathan, MD & CEO, IDFC First Bank". Financialexpress. 7 May 2022. Retrieved 12 December 2022.
  48. ↑ Kulkarni, Sneha. "IDFC First Bank revises savings account interest rate: Earn up to 6% interest rates on this amount". The Economic Times. Retrieved 10 August 2022.
  49. ↑ "IDFC First Bank to give 7% interest on savings account opened through video KYC". Financialexpress. 28 May 2020. Retrieved 10 August 2022.
  50. ↑ "Interest rate on Savings account up to 6% p.a. | IDFC FIRST Bank". www.idfcfirstbank.com. Retrieved 10 August 2022.
  51. ↑ K.R.Srivats (7 March 2017). "IDFC Bank takes the lead, launches Aadhaar Pay". The Hindu Business Line. Retrieved 9 March 2017.
  52. ↑ "IDFC Bank launches aadhaar-linked cashless merchant solution – The Economic Times". The Economic Times. Retrieved 17 January 2017.
  53. ↑ Livemint (7 September 2022). "IDFC First Bank joins ONDC". mint. Retrieved 13 July 2023.
  54. ↑ "IDFC First Bank joins ONDC — what does it mean for you?". cnbctv18.com. 7 September 2022. Retrieved 13 July 2023.
  55. ↑ Ray, Anulekha (9 November 2022). "RBI CBDC: Digital Rupee pilot starts from November 1; SBI, HDFC, 7 other banks to participate in wholesale launch". The Economic Times. ISSN 0013-0389. Retrieved 13 July 2023.
  56. ↑ "IDFC FIRST Bank launches foreign currency savings account for NRIs in GIFT City - CNBC TV18". CNBCTV18. 18 December 2025. Retrieved 7 March 2026.
  57. ↑ DAS, AYUSH (2025). "Legal and Regulatory Insights on the IDFC First Bank -IDFC Limited Merger". SSRN Electronic Journal. doi:10.2139/ssrn.5160407. ISSN 1556-5068.
  58. ↑ "IDFC FIRST Bank introduces Unique IDFC FIRST Global Savings for NRIs in GIFT City". The Tribune. Retrieved 7 March 2026.
  59. ↑ Velonie, Ajit; Sri Narayanan, Subha; Gupta, Leena (9 October 2023). "CRISIL Rating Rationale IDFC FIRST Bank Limited". CRISIL. Retrieved 30 November 2024.
  60. ↑ Sharma, Saurabh (13 December 2023). "BT500: 'Tragic to see rural India is most under-financed,' says IDFC First Bank MD & CEO V Vaidyanathan". Business Today. Retrieved 30 November 2024.
  61. ↑ "IDFC Bank buys Grama Vidiyal Micro". BusinessLine. 25 July 2016. Retrieved 31 March 2024.
  62. ↑ "IDFC Bank acquires Grama Microfinance". The Indian Express. 13 July 2016. Retrieved 31 March 2024.
  63. ↑ News Service, PTI (25 October 2018). "IDFC Bank to be renamed as IDFC First Bank after merging with Capital First". Business Standard. Retrieved 31 March 2024.
  64. ↑ "IDFC FIRST Bank Achieves Lowest-Ever Gross NPA of 1.88% in FY24, says V Vaidyanathan". Outlook Business. 2 September 2024. Retrieved 29 October 2024.
  65. ↑ Singh, Navdeep (28 October 2024). "IDFC First Bank shares nosedive 10%, hit 52-week low as Q2 profit plummets 73%". The Economic Times. ISSN 0013-0389. Retrieved 29 October 2024.
  66. ↑ Sultana, Nasrin. "How Does IDFC First Stack Up Among India's Top 10 Most Valued Banks". Forbes India. Retrieved 14 September 2023.
  67. ↑ Sonavane, Ravindra. "IDFC First joins elite club of 10 most valuable listed banks in India". Moneycontrol. Retrieved 14 September 2023.
  68. ↑ Farooqui, Javed (25 August 2023). "BCCI awards title sponsorship rights to IDFC First for Rs 235 crore". The Economic Times. ISSN 0013-0389. Retrieved 3 September 2023.
  69. ↑ "IDFC FIRST Bank secures title rights for Team India's home internationals for Rs 4.2 crore per match". cnbctv18.com. 25 August 2023. Retrieved 3 September 2023.
  70. ↑ "IDFC FIRST Bank launches Customer COVID relief Ghar Ghar Ration Program". Financialexpress. 11 June 2021. Retrieved 12 December 2022.
  71. ↑ "IDFC First Bank Employees to Fund Covid Relief for Customers". Outlook Money. 12 June 2021. Retrieved 12 December 2022.
  72. ↑ "Staff collusion led to Haryana Government account fraud: IDFC Bank". The Hindu. 23 February 2026.
  73. ↑ "What is the IDFC First Bank Rs 590 crore fraud case? Explained in 10 points". The Times of India. 23 February 2026.

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