The bank will issue a coercive convertible preferred stock (CCP) ₹To Warburg Pincus branch 487.6 million, stock value ₹26.24 million ₹60 assigned to ADIA subsidiaries. Although Warburg members will hold 9.48% of the shares, the ADIA division will hold 5.10% of the shares.
IDFC First Bank was established in December 2018, a merger of non-bank lender capital and IDFC Bank, which was then a subsidiary of IDFC Ltd. The latest investment marks Warburg’s return rate is first and for IDFC – PE Major was originally founded in 2012 and first invested in Capital after IDFC Bank Merger. Warburg has sold its IDFC Bank shares in the past two years.
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IDFC first Managing Director and CEO V. Vaidyanathan said on the phone: “I’m in touch with choosing a private equity firm directly and pitching. They know us and trust us.” ₹Rs 100 crore compared to qualified agency placement (QIP).
Refueling engine
IDFC first said the investment is intended to “enhancing the next phase of growth.” The bank’s board of directors cleared the priority issue, which will now be granted to shareholders and regulators for approval.
“Frankly, in the current market conditions, if you go to QIP, there will be a lot of pitches for potential investors, and then, due to market conditions, sometimes there will be discounts. Here we don’t have to offer any such discounts,” Vaidyanathan said. “Our job is to keep the bank safe at all times; therefore, capital is a good buffer. The global market situation is not good; therefore, it’s better to be safe.”
The investment increased IDFC First’s capital adequacy ratio from 16.1% to 18.9%. The bank said its book value per share will increase by 2.3% after the proposed capital raises it to the proposal. ₹52.85 from ₹51.64 in December 2024.
“We have developed very good capabilities to fund rural markets, MSMES, retail, gold loans, mortgages, small business banking, etc. With these capabilities established by banks, I do believe we can grow as India grows,” Vaidyanathan said. “But more importantly, quality – we want GNPA (total NPA) and NNPA (NPA net) below 2% and 1%, and we share our internal guidelines with streets and investors. We can always open up new locations; India is a large market.”
IIDFC first has a network of 971 branches in 60,000 locations. As of the end of December 2024, its total NPA ratio was 1.94% and its NPA ratio was 0.52%.
Lender publishes net profit ₹$2.4 billion in fiscal year 29.57 billion. However, profitability has been reduced by 45% ₹Due to the challenges of microcredit, there were $122.1 billion in the first nine months of fiscal year 25. According to interim data for the fourth quarter, the bank’s advance payments grew 20% yearly, with the bank’s deposits rising 25% as of March 2025. The bank has not released its revenue for the March quarter.
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“We believe that Indian banking provides exciting opportunities for long-term growth,” said Vishal Mahadevia, head of private equity and co-head of global financial services at Asia. “We are excited to reinvest behind IDFC’s First Bank team to support them in the next phase of growth and sustainable ROE (ROE) improvements.”
“The bank has been firmly transferred to profits and is now in a critical stage, and our revenue growth is expected to always exceed OPEX (operating expenses) growth, thereby increasing the growth of operating leverage. We expect many businesses to be on the scale of the investment phase,” Vaidyanathan said in the bank’s statement.
IDFC First Bank said in a speech by investors that growing capital will help expand a variety of businesses such as credit card, cash management and wealth management to “optimal profitability.” It said this will help banks achieve their goal of growing their loan book by about 20% in the coming years, reducing the need for frequent fundraising, while positioning banks as “strong and profitable growth.”
Hamad Shahwan Aldhaheri, executive director of Adia Private Stock Division, said IDFC First Bank has firmly established itself as one of India’s leading private sector banks, expanding the infrastructure of technology and branches with the support of an experienced management team, thus “a good position for the future”.
