IDFC FIRST Bank has announced a major capital infusion of approximately Rs 7,500 crore through a preferential issue of equity capital, aimed at accelerating its next phase of growth.
The fundraise will see contributions of around Rs 4,876 crore from Currant Sea Investments B.V., an affiliate of Warburg Pincus LLC, and Rs 2,624 crore from Platinum Invictus B 2025 RSC, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
The preferential issue, approved by the bank’s Board of Directors, is subject to shareholder and regulatory approvals. This strategic investment is expected to enhance the bank’s capital adequacy from 16.1 per cent to 18.9 per cent (with a CET-1 ratio of approximately 16.5 per cent as of 31st December, 2024), further strengthening its balance sheet.
Over the past six years, IDFC FIRST Bank has transitioned from an infrastructure-focused DFI into a modern, pan-India private bank. The transformation includes a six-fold increase in deposits, a doubling of loans and advances, and a jump in the CASA ratio from 8.7 per cent to 47.7 per cent. Profit After Tax (PAT) rose from a loss of Rs 1,944 crore in FY19 to a profit of Rs 2,957 crore in FY24, despite facing industry-wide challenges in microfinance in FY25.
Commenting on the development, V Vaidyanathan, MD and CEO, IDFC FIRST Bank, said, “This investment underlines the confidence that global investors have in our long-term vision and our transformation journey. We are now at an inflection point where income growth is expected to consistently outpace operational expenditure, driving operating leverage and sustainable profitability.”
Vishal Mahadevia, Head of Asia Private Equity, Warburg Pincus expressed confidence in the Indian banking sector and IDFC FIRST Bank’s leadership, stating, “We’ve known the IDFC FIRST Bank team for over a decade and are excited to support their next growth phase.”
Hamad Shahwan AlDhaheri, Executive Director, ADIA’s Private Equities Department, added,” The bank’s expansion and technological infrastructure position it well to meet India’s growing demand for financial products. IDFC FIRST Bank currently operates 971 branches across India and continues to maintain a digital-first approach. Its mobile banking app was rated #1 in India and #4 globally by Forrester for digital experience in 2024.”
The investment underscores the bank’s commitment to building a strong, sustainable financial institution rooted in ethical, digital, and inclusive banking.
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