ENSIKLOPEDIA
IDFC First Bank
 | |
 Headquarters in Bandra Kurla Complex, Mumbai | |
| Formerly | IDFC Bank (2015–2018) |
|---|---|
Company type | Public |
| BSE: 539437 NSE: IDFCFIRSTB | |
| ISIN | INE092T01019 |
| Industry | Banking Financial services |
| Founded | October 2015; 10 years ago (2015-10) |
| Headquarters | Mumbai, Maharashtra, India |
Key people | V. Vaidyanathan (MD & CEO) |
| Products | |
| Revenue |  ₹40,549 crore (US$4.3 billion) (Q4 2026)[1] |
| ₹29,363 crore (US$3.1 billion) (Q4 2026)[1] | |
| ₹1,636 crore (US$170 million) (Q4 2026) [1] | |
| AUM | ₹290,278 crore (US$31 billion) (Q4 2026)[1] |
| Total assets | ₹399,780 crore (US$42 billion) (Q4 2026)[1] |
| Total equity | ₹47,352 crore (US$5.0 billion) (Q4 2026) [1] |
Number of employees | 49,123 (January 2026) [2] |
| Subsidiaries | |
| Capital ratio | 15.60% (CRAR) (Q4 2026)[1] |
| Rating | |
| Website | www |
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.[6] In 2024, IDFC First Bank took over the parent company IDFC Limited in a reverse merger.[7]
History
IDFC Limited was set up in 1997 by Government of India to finance infrastructure projects in India.[8] 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.[9]
In 2014, the Reserve Bank of India granted in-principle approval to IDFC Limited to set up a new bank in the private sector.[10] 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.[11][12]
IDFC Bank started operations on 1 October 2015.[13][14] The parent entity, IDFC Limited, retained the asset management, institutional broking and infrastructure debt fund businesses through IDFC Financial Holding Company Limited (IDFC FHCL).[15]
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%.[16]
Capital First merger
In January 2018, IDFC Bank and MSME financing company Capital First announced a merger.[17] As per a September 2017 stock filing, Capital First had a retail loan portfolio of ₹229.7 billion.[18] 139 shares of IDFC Bank were issued for every 10 shares of Capital First as part of the merger share swap.[19]
The merger completed in December 2018, with IDFC Bank changing its name to IDFC First Bank.[20][21] 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.[22]
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.[23][24]
IDFC Limited merger
In July 2023, the board of the bank approved the merger with IDFC Limited.[25][26] After receiving clearance from the Competition Commission of India[27] and the Reserve Bank of India,[28] 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.[29][30]
On 1 October 2024, IDFC Limited merged with the bank.[31] 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.[32]
Shareholding
On 22 February 2023, IDFC Limited announced that it would increase its stake in the bank from 36.38% up to 40%.[33] Also, on 22 February 2023, the bank issued 12,03,745 equity shares to its employees under the company ESOP plan.[34]
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%.[35][36]
In July 2024, Life Insurance Corporation raised its stake in the bank to 2.68%.[37]
In May 2025, Warburg Pincus initiated the acquisition of a 10% stake by seeking approval from the Competition Commission of India.[38][39] However, the institutional shareholders rejected the proposal to grant the group a board seat.[40]
Operations
As of November 2022, the bank had 809 branches, 249 asset service centres, 925 ATMs, and 606 rural business correspondent centres across the country.[41][42][43]
Products and services
The bank provides products and services related to retail banking, wholesale banking and investment banking.[44][45][46][47]
In 2017, IDFC Bank launched an Aadhaar-linked cashless merchant solution.[48][49]
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.[50][51] In 2023, it launched central bank digital currency under the guidance of the RBI.[52]
In December 2025, the bank began operation in the GIFT City by introducing a foreign currency savings account for non-resident Indians.[53] The bank also offers foreign currency fixed deposits and corporate banking services, including trade finance and cross-border transactions.[54]
Rural lending
The bank's rural lending portfolio consists of 60% women borrowers, as of October 2023.[55] The portfolio has a gross NPA of 1.2% and a net NPA of 0.3%.[56]
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.[57][58] GVMFL later became known as IDFC First Bharat Limited.[59]
Digital & Innovation Initiatives
In 2022, the bank joined the Open Network for Digital Commerce (ONDC) as a participant to facilitate digital transactions and onboard merchants onto the network.[60]
In 2023, the bank enabled interoperability between its central bank digital currency (CBDC) application and UPI QR codes to expand merchant acceptance of the digital rupee.[61]
In 2026, the bank introduced additional digital verification controls for high-value transactions to enhance security protocols.[62]
Financials
In the financial year 2024, the bank had a capital adequacy ratio of 16.82%.[63] As of 30 September 2024, the overall gross non-performing asset (NPA) ratio is 1.92%, while the net NPA ratio is 0.48%.[64]
In 2023, it became one of the top 10 banks in India by market capitalization.[65][66]
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.[67] 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'.[68]
Controversies
In February 2026, multi-bank financial irregularities involving Haryana government-owned accounts linked to various departments, boards and entities came to light across Chandigarh-area branches of IDFC First Bank, AU Small Finance Bank and Kotak Mahindra Bank. The total amount is estimated at around ₹950 crore. The issue first came to light in January 2026 when the Haryana finance department started the process of closure and transfer of various accounts of the state government, leading to the reconciliation process. This process identified discrepancies across multiple accounts and institutions during the subsequent review. During the course of reconciliation some accounts of Chandigarh branch of IDFC First Bank were found to have an initial variance of ₹590 crore.[69] On 24 February 2026, before the investigation was completed and before any formal recovery process ended, IDFC First Bank credited ₹578 crore to the accounts of the state departments in first 24 hours, including ₹556 crore in deposits and ₹22 crore in interest.[70][71]
See also
References
- 1 2 3 4 5 6 7 "IDFC FIRST Bank Investor Presentation – Q4 & FY26" (PDF). IDFC FIRST Bank. Retrieved 1 May 2026.
- ↑ "IDFC First Bank's Employee Count". Tracxn. 28 February 2026. Retrieved 5 March 2026.
- ↑ "CRISIL upgrades IDFC First Bank's LT rating to 'AA+'". Capital Market. 5 June 2023. Retrieved 21 June 2023.
- ↑ "Ind-Ra affirms IDFC First Bank's debt instruments ratings with stable outlook". Financial Express. 12 December 2023. Retrieved 26 December 2023.
- ↑ "IDFC FIRST Bank Ltd Long Term Instruments - Non Convertible Debentures October 03, 2023" (PDF). CARE Ratings. 3 October 2023. Retrieved 1 February 2024.
- ↑ "7 things to know about IDFC Bank | Business Standard News". Business-standard.com. 1 October 2015. Retrieved 15 October 2016.
- ↑ "IDFC FIRST Bank announces completion of IDFC Ltd merger". Mint. 28 September 2024. Retrieved 3 March 2025.
- ↑ 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.
- ↑ 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.
- ↑ "RBI grants in-principle approval to IDFC, Bandhan for new bank licences". The Economic Times. Retrieved 12 December 2022.
- ↑ PTI (19 October 2015). "Narendra Modi inaugurates IDFC Bank, talks of banking reforms". mint. Retrieved 12 December 2022.
- ↑ "PM inaugurates IDFC Bank | Business Standard News". Business Standard India. Business-standard.com. 19 October 2015. Retrieved 15 October 2016.
- ↑ 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.
- ↑ "IDFC Bk to start ops with few branches by Oct 1: Rajiv Lall". Moneycontrol.com. 12 April 2015. Retrieved 15 October 2016.
- ↑ Gopakumar, Gopika (21 July 2021). "IDFC can exit as promoter of IDFC First Bank, clarifies RBI". mint. Retrieved 12 December 2022.
- ↑ Iyer, Aparna (15 January 2018). "IDFC Bank, Capital First merger: will the shoe fit this time?". Mint. Retrieved 29 October 2024.
- ↑ 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.
- ↑ Roy, Anup (13 January 2018). "IDFC Bank to merge with Capital First, Vaidyanathan to succeed Lall". Business Standard. Retrieved 29 October 2024.
- ↑ sundarajan, Priya (13 January 2018). "IDFC Bank to take over Capital First in share swap deal". www.thehindubusinessline.com. Retrieved 12 December 2022.
- ↑ Sinha, Shilpy. "IDFC, Capital First completes merger process to form IDFC First Bank". The Economic Times. eonomictimes.com.
- ↑ "Capital First merges with IDFC Bank to create IDFC First Bank". Moneycontrol. 18 December 2018. Retrieved 12 December 2022.
- ↑ "RBI approves appointment of V Vaidyanathan as MD, CEO of IDFC First Bank". Moneycontrol. 18 January 2019. Retrieved 12 December 2022.
- ↑ "IDFC FIRST Bank FY23 Profit After Tax Highest-Ever at Rs. 2,437". Bloomberg.com. 2 May 2023. Retrieved 21 June 2023.
- ↑ 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.
- ↑ "India's IDFC to merge with IDFC First Bank in latest consolidation". Reuters. 3 July 2023. Retrieved 4 July 2023.
- ↑ "IDFC to merge with IDFC First Bank". The Hindu. 3 July 2023. ISSN 0971-751X. Retrieved 4 July 2023.
- ↑ Livemint (17 October 2023). "IDFC gets CCI nod for merger with IDFC First Bank". mint. Retrieved 25 October 2023.
- ↑ 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.
- ↑ PTI (18 May 2024). "Debt, equity holders approve merger of IDFC with IDFC First Bank". BusinessLine. Retrieved 25 June 2024.
- ↑ "Majority shareholders of IDFC First Bank approves amalgamation of IDFC Ltd with lender". Business Today. 18 May 2024. Retrieved 25 June 2024.
- ↑ "IDFC FIRST Bank announces completion of IDFC Ltd merger". Financialexpress. 27 September 2024. Retrieved 15 October 2024.
- ↑ Deshpande, Swapnil (27 September 2024). "IDFC First Bank completes merger with IDFC Limited - CNBC TV18". CNBCTV18. Retrieved 15 October 2024.
- ↑ 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.
- ↑ "IDFC First Bank allots shares worth Rs 1.2 cr to employees as stock options". Free Press Journal. Retrieved 23 February 2023.
- ↑ "IDFC First Bank rises 2% on Rs 479.5-cr block deal with GQG Partners". Moneycontrol. Retrieved 14 September 2023.
- ↑ "US-based GQG Partners ups IDFC First Bank stake, acquires shares from CEO V. Vaidyanathan". www.telegraphindia.com. Retrieved 14 September 2023.
- ↑ "LIC raises stake in IDFC First Bank to 2.68%". The Hindu. 4 July 2024. ISSN 0971-751X. Retrieved 29 October 2024.
- ↑ "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.
- ↑ Kunjumon, Oliviya (2 May 2025). "IDFC First Bank rallies 2% after Warburg Pincus seeks CCI nod to buy 10%". Financialexpress. Retrieved 19 May 2025.
- ↑ Sundaresan, Malvika (19 May 2025). "Shareholders reject board seat to Warburg-backed investor in IDFC FIRST Bank". Moneycontrol. Retrieved 19 May 2025.
- ↑ Market, Capital (5 November 2022). "IDFC First Bank gets board approval to raise Rs 4,000 cr". Business Standard India. Retrieved 12 December 2022.
- ↑ 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.
- ↑ 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.
- ↑ "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.
- ↑ 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.
- ↑ "IDFC First Bank to give 7% interest on savings account opened through video KYC". Financialexpress. 28 May 2020. Retrieved 10 August 2022.
- ↑ "Interest rate on Savings account up to 6% p.a. | IDFC FIRST Bank". www.idfcfirstbank.com. Retrieved 10 August 2022.
- ↑ K.R.Srivats (7 March 2017). "IDFC Bank takes the lead, launches Aadhaar Pay". The Hindu Business Line. Retrieved 9 March 2017.
- ↑ "IDFC Bank launches aadhaar-linked cashless merchant solution – The Economic Times". The Economic Times. Retrieved 17 January 2017.
- ↑ Livemint (7 September 2022). "IDFC First Bank joins ONDC". mint. Retrieved 13 July 2023.
- ↑ "IDFC First Bank joins ONDC — what does it mean for you?". cnbctv18.com. 7 September 2022. Retrieved 13 July 2023.
- ↑ 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.
- ↑ "IDFC FIRST Bank launches foreign currency savings account for NRIs in GIFT City - CNBC TV18". CNBCTV18. 18 December 2025. Retrieved 7 March 2026.
- ↑ Chadha, Sunainaa (17 December 2025). "IDFC FIRST Bank launches zero-fee USD, EUR global savings account for NRIs". Business Standard. Retrieved 2 May 2026.
- ↑ Velonie, Ajit; Sri Narayanan, Subha; Gupta, Leena (9 October 2023). "CRISIL Rating Rationale IDFC FIRST Bank Limited". CRISIL. Retrieved 30 November 2024.
- ↑ 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.
- ↑ "IDFC Bank buys Grama Vidiyal Micro". BusinessLine. 25 July 2016. Retrieved 31 March 2024.
- ↑ "IDFC Bank acquires Grama Microfinance". The Indian Express. 13 July 2016. Retrieved 31 March 2024.
- ↑ 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.
- ↑ Livemint (7 September 2022). "IDFC First Bank joins ONDC | Company Business News". mint. Retrieved 2 May 2026.
- ↑ "IDFC First Bank makes digital rupee app interoperable with UPI QR codes". Business Standard. 4 September 2023.
- ↑ "Cheques & balances: IDFC First brings in extra layer of security". The Economic Times.
- ↑ "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.
- ↑ 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.
- ↑ Sultana, Nasrin. "How Does IDFC First Stack Up Among India's Top 10 Most Valued Banks". Forbes India. Retrieved 14 September 2023.
- ↑ Sonavane, Ravindra. "IDFC First joins elite club of 10 most valuable listed banks in India". Moneycontrol. Retrieved 14 September 2023.
- ↑ "IDFC FIRST Bank launches Customer COVID relief Ghar Ghar Ration Program". Financialexpress. 11 June 2021. Retrieved 12 December 2022.
- ↑ "IDFC First Bank Employees to Fund Covid Relief for Customers". Outlook Money. 12 June 2021. Retrieved 12 December 2022.
- ↑ Mishra, Lalatendu (22 February 2026). "IDFC FIRST Bank Chandigarh branch discloses ₹590 crore fraud". The Hindu. ISSN 0971-751X. Retrieved 25 April 2026.
- ↑ "Recovered Rs 578 crore from IDFC First Bank within 24 hours, Haryana CM Saini informs Assembly". The Indian Express. 24 February 2026. Retrieved 25 April 2026.
- ↑ Mishra, Lalatendu (24 February 2026). "IDFC First Bank pays ₹583 crore to Haryana government departments to settle bank fraud". The Hindu. ISSN 0971-751X. Retrieved 25 April 2026.
Further reading
 | This "further reading" section may need cleanup. Please read the editing guide and help improve the section. (January 2026) (Learn how and when to remove this message) |
- Mehta, Alpesh; Kulkari, Vallabh (22 April 2015). IDFC Bank - The good old 'new bank' story (Report). Motilal Oswal. Retrieved 3 March 2025.
- Lahiri, Keka (2016). "IDFC Bank's Acquisition of Grama Vidiyal Microfinance: A Win Win Deal?". Amity Research Center, Bangalore – via The Case Centre.
- Biswas, Debasish; Pimpale, Nihal; Ashara, Konark (21 September 2017). "Connected by Design - Our Learnings from Designing Digital Profiler Journeys: IDFC Bank Digital Experience". Human-Computer Interaction – INTERACT 2017. Lecture Notes in Computer Science. Vol. 10516. Springer. pp. 340–343. doi:10.1007/978-3-319-68059-0_25. ISBN 978-3-319-68058-3.
- Lukose PJ, Jijo (March 2019). "IDFC Bank and Capital First – A Case of Merger Arbitrage" (PDF). IIM-K Case Study – via Indian Institute of Management Kozhikode.
- Ray, Smita (2020). "IDFC First Bank's Technology-led Banking Services and Digital Media Promotion". IBS Case Study. ICFAI Business School Hyderabad – via The Case Centre.
- Jose Koreath, Jis; P. Paul, Kemthose (January 2021). "Corporate Social Responsibility Practices of Banks in India" (PDF). Erudition - the Albertian Journal of Management. 15 (1). St. Albert's College. ISSN 0973-7839.
- Kilambi, Abhinav (21 July 2021). "Peer Bank Benchmarking of Liquidity Risk Expeiential Learning Project". Institutional Repository @ Nirma University [DSpace] – via Institute of Management, Nirma University.[dead link]
- Singh Sian, Harman (December 2022). "A Study on Performance Analysis of IDFC First Bank" (PDF). Drashta Research Journal. 11 (44): 154–165. ISSN 2277-2480 – via Guru Gobind Singh College for Women, Chandigarh.
- Mishra, Pooja; Guru Sant, Tatavarty (22 February 2024). "Examine the level of environmental, social and governance disclosure in sustainability report – a study of the Indian banking sector". International Journal of Innovation Science. 16 (2). Emerald Group Publishing: 420–442. doi:10.1108/IJIS-08-2022-0136. ISSN 1757-2223.
- Santhosh, S; Ramya, Msr (April 2024). "A study on financial performance analysis of IDFC First Bank Limited" (PDF). International Journal of Progressive Research in Engineering Management and Science. 4 (4): 455–459.
- Das, Ashish (May 2024). Benchmarking Reasonableness of Service Charges by Banks in India (PDF) (Report). Indian Institute of Technology Bombay.
- "IDFC First Bank named 'class apart' in report". The Hindu. 23 May 2024. Retrieved 3 March 2025.
- Keshavdev, V (22 April 2025). "How Warburg doubled down on Vaidyanathan's vision for IDFC First Bank". Fortune India. Retrieved 19 May 2025.
 NIFTY 200 companies | |||||||
|---|---|---|---|---|---|---|---|
| NIFTY 200 |
| ||||||