IDFC FIRST Bank is set to receive a major boost as global investment heavyweights Warburg Pincus and the Abu Dhabi Investment Authority (ADIA) step in with a combined infusion of approximately Rs 7,500 crore to fuel the lender's next phase of growth.
The bank’s board on Thursday approved a preferential issue of equity capital amounting to Rs 4,876 crore to Currant Sea Investments B.V., an affiliate of Warburg Pincus, and Rs 2,624 crore to Platinum Invictus B 2025 RSC Ltd, a wholly owned ADIA subsidiary managed by its Private Equities Department, the bank said in an exchange filing.
The deal, however, is subject to shareholder and regulatory approvals.
The move comes as IDFC FIRST Bank completes a six-year journey—from its origins as an infrastructure-focused development finance institution (DFI) to a modern, technology-led, universal bank. The bank has since scaled its distribution, digital platforms, and customer base, with deposits growing sixfold and loans doubling during this period, it said.
Its current account-savings account (CASA) ratio surged from 8.7% to 47.7%, while profit after tax flipped from a ₹1,944 crore loss in FY19 to a ₹2,957 crore profit in FY24, it added.
However, the bank faced headwinds in FY25, particularly in the microfinance segment. Despite that, it has weathered the turbulence better than most peers. With the new capital infusion, the bank’s capital adequacy ratio is expected to rise from 16.1% to 18.9%, with its core equity tier-1 ratio climbing to approximately 16.5%, based on its December 2024 capital position.
Calling it a pivotal moment, V Vaidyanathan, MD & CEO of IDFC FIRST Bank, said, “From day one, we have always built our foundation of the bank with a long-term vision of building a world-class bank in India. We are building a culture of empathy for customers and strive to offer highest levels of customer service. We are technologically advanced and continue to stay cutting-edge.”
He added that the bank is now firmly profitable, and as operating income begins to outpace operating expenditure, better operating leverage will follow.
“We expect many businesses which are in the investment stage to turn profitable with scale,” he said.
On the investors, Vaidyanathan said, “It is great to have Warburg Pincus back and to welcome a wholly owned subsidiary of ADIA as our shareholder. We thank them both for believing in us and our future growth plans and for investing in us even under volatile global situations.”
The shares of IDFC Bank were trading at Rs 63.53 a piece on the BSE, up 0.38 per cent as of 10:50 am on Thursday.
The bank’s board on Thursday approved a preferential issue of equity capital amounting to Rs 4,876 crore to Currant Sea Investments B.V., an affiliate of Warburg Pincus, and Rs 2,624 crore to Platinum Invictus B 2025 RSC Ltd, a wholly owned ADIA subsidiary managed by its Private Equities Department, the bank said in an exchange filing.
The deal, however, is subject to shareholder and regulatory approvals.
The move comes as IDFC FIRST Bank completes a six-year journey—from its origins as an infrastructure-focused development finance institution (DFI) to a modern, technology-led, universal bank. The bank has since scaled its distribution, digital platforms, and customer base, with deposits growing sixfold and loans doubling during this period, it said.
Its current account-savings account (CASA) ratio surged from 8.7% to 47.7%, while profit after tax flipped from a ₹1,944 crore loss in FY19 to a ₹2,957 crore profit in FY24, it added.
However, the bank faced headwinds in FY25, particularly in the microfinance segment. Despite that, it has weathered the turbulence better than most peers. With the new capital infusion, the bank’s capital adequacy ratio is expected to rise from 16.1% to 18.9%, with its core equity tier-1 ratio climbing to approximately 16.5%, based on its December 2024 capital position.
Calling it a pivotal moment, V Vaidyanathan, MD & CEO of IDFC FIRST Bank, said, “From day one, we have always built our foundation of the bank with a long-term vision of building a world-class bank in India. We are building a culture of empathy for customers and strive to offer highest levels of customer service. We are technologically advanced and continue to stay cutting-edge.”
He added that the bank is now firmly profitable, and as operating income begins to outpace operating expenditure, better operating leverage will follow.
“We expect many businesses which are in the investment stage to turn profitable with scale,” he said.
On the investors, Vaidyanathan said, “It is great to have Warburg Pincus back and to welcome a wholly owned subsidiary of ADIA as our shareholder. We thank them both for believing in us and our future growth plans and for investing in us even under volatile global situations.”
The shares of IDFC Bank were trading at Rs 63.53 a piece on the BSE, up 0.38 per cent as of 10:50 am on Thursday.
You may also like
'I used to go home black and blue from violence at school - it very nearly destroyed me'
Check your body every 3 weeks for these symptoms that could be cancer - see full list
JOHN HEALEY: 'We'll stop the rot in armed forces housing with new charter'
Remove 5 years of toilet limescale stains in 5 minutes with 1 'game-changing' natural item
World Snooker Championship draw: Ronnie O'Sullivan and Judd Trump learn fates
