IDFC First Bank unveils vision 2.0, targets ₹6 lakh crore in deposits

IDFC First Bank has outlined an ambitious plan under its Vision 2.0, aiming for ₹6 lakh crore in deposits and ₹5 lakh crore in loans by FY 2029, as part of its efforts to become a leading bank in India.

“We are targeting around ₹6,00,000 crore in deposits, ₹5,00,000 crore in loans, and ₹12,000 crore in profit by FY 29,” said V Vaidyanathan, MD and CEO of IDFC First Bank.

The bank, which transitioned from an infrastructure Development Finance Institution (DFI) with a net interest margin (NIM) of 1.7% to a commercial bank, faced early challenges with low retail deposits and initial losses in 2019. “Analysts back then saw this as a tough paradox—investing in growth meant more losses, but without investment, the issue would persist,” Vaidyanathan explained.

In FY 2024, the bank posted a profit of ₹2,947 crore and increased its CASA ratio to 47%. “Thanks to our team’s dedication, we’ve resolved this paradox in five years. Our long-term credit rating has been upgraded to AA+ stable by four rating agencies, and we’re now striving for AAA,” Vaidyanathan added.

Since the merger in December 2019, IDFC First Bank’s share price has doubled, rising from ₹37.6 to ₹75.4 as of March 31, 2024, outperforming the Nifty Private Bank index’s 57% growth.

The bank has seen customer deposits soar from ₹38,455 crore to ₹1,93,753 crore, with retail deposits increasing from ₹10,400 crore to ₹1,51,343 crore. Its CASA ratio has also improved significantly from 8.7% to 47.2%.

Regarding asset quality, the credit-deposit ratio has reduced from 125% to 98.4%, and the bank has repaid ₹61,342 crore of legacy borrowing. Gross NPAs have decreased from 2.43% to 1.89%, while net NPAs have dropped from 1.27% to 0.60%.

Additionally, IDFC First Bank's net worth has grown from ₹18,159 crore to ₹32,161 crore, and its capital adequacy ratio has increased from 15.47% to 16.11%. The bank’s core operating profit has jumped from ₹749 crore in FY19 to ₹6,030 crore in FY24, and it has turned around its net earnings from a loss of ₹1,944 crore in FY19 to a profit of ₹2,957 crore in FY24.