IDFC First Bank Performance
Fundamentals of IDFC First Bank
|P/E Ratio (TTM)||20.61|
|Debt to Equity||NA|
Financials of IDFC First Bank
|Dec 2022||Mar 2023||Jun 2023||Sep 2023|
|Profit before tax||826.68||1,094.39||996.22||982.82|
|EPS in Rs||0.99||1.3||1.1||1.12|
About IDFC First Bank
With headquarters in Mumbai, IDFC First Bank is a subsidiary of IDFC Ltd. It is a universal bank that offers financial solutions through nationwide branches, internet and mobile banking.
On April 9, 2014, the Reserve Bank of India (RBI) granted in-principle approval to the Infrastructure Development Finance Company (IDFC) to set up a new private bank under Section 22 of the Banking Regulation Act, 1949. Accordingly, IDFC Bank was incorporated on October 21, 2014, in Chennai, Tamil Nadu. IDFC Bank began its operations with effect from October 1, 2015, with the launch of 23 branches across India. Shares of IDFC Bank were listed on the bourses on November 6, 2015. In 2018, after a merger with Capital First, IDFC Bank renamed itself as IDFC First Bank.
IDFC First Bank launched its own credit card business in January 2021. In 2022-23, it launched education loans and farmers’ credit products and scaled up the retail and commercial portfolio. The bank has also been regularly selected to participate in new initiatives in the country like Central Bank Digital Currency (CBDC), ONDC, UPI platform for foreign nationals, etc. This shows that the market and regulators look at the bank as a capable entity.
IDFC First’s objective is to make banking simple and accessible anytime and anywhere. The bank provides customised financial solutions to corporations, individuals, small and micro enterprises (SMEs), entrepreneurs, financial institutions and the government.
IDFC First Bank offers its services under the following categories:
- Personal – Personal finance would include:
- Accounts – Savings account, current account, corporate salary account, separate savings account for senior citizens and NRIs, first power account for women, NRI saving, TASC institutional account, fixed deposit, recurring deposit and safe deposit locker.
- Loans – Consumer durables loan, education loan, home loan, separate loans for new and pre-owned cars and two-wheelers, commercial vehicle loan, loan against property, gold loan and Easy Buy EMI Card.
- Wealth – Mutual funds, sovereign gold bonds, investment platform integrated with financial benefits under First Wealth, First Private and First Select.
- Insurance – General insurance, life insurance, term insurance and health insurance.
- Payments – BHIM UPI, FasTag, credit card bill payments, loan EMI payments, as well as retail forex services.
- Credit cards – First Classic card, First Millenia card, among others.
- Business – Business financing services include:
- First Booster – Savings account for businesses
- SME accounts and loans to cater to the requirements of small and medium enterprises.
- Startup Solutions
- Business services such as payment solutions, tax payment, doorstep banking, points of sale, etc.
- Debit Cards
- Wholesale Banking – The services coming under this are:
- Treasury management, especially via debt finance and forex services.
- Cash management related to payments and collections.
- Trade finance, including remittances and export-import financing.
- Working capital solutions
The company is transforming from a corporate-focused bank to a retail-focused bank with a higher net interest margin. During FY 2022, the bank scaled up its digital cash management solutions, foreign exchange trade, wealth management, FASTag, toll-acquiring business, credit cards, etc.
IDFC Bank also has a wholly-owned subsidiary, IDFC First Bharat Ltd., previously Grama Vidiyal Micro Finance Ltd, which is tasked to help IDFC’s products and services like group loans, micro-housing solutions, etc. to reach rural and semi-urban locations.
Mr. V. Vaidyanathan, Managing Director and CEO
Mr. V. Vaidyanathan is the first Managing Director and CEO of IDFC FIRST Bank. With over 20 years of experience in financial services in India, Mr. Vaidyanathan worked as a banker at Citibank from 1990-2000, at ICICI Bank from 2000-2009 and then as an entrepreneur from 2010-2019, Capital First and then as a professional banker again after merging Capital First with IDFC Bank. He finished his higher studies at Birla Institute of Technology and Harvard Business School.
IDFC First Bank had conducted a buyback of shares in 2016.
IDFC First Bank has not announced any bonus shares, stock splits, or rights issues so far.
Mergers and Acquisitions
- In 2023, IDFC First sold its mutual funds business to a consortium of companies led by Bandhan Bank.
- In 2018, Capital First Limited, Capital First Home Finance Limited and Capital First Securities merged into IDFC Bank, subject to compliance with the terms and conditions specified therein. The name of IDFC Bank was changed to IDFC First Bank.
- In July 2016, IDFC Bank came to a share purchase agreement with Grama Vidiyal Micro Finance Ltd. to acquire 100% of the latter’s shares. Grama Vidiyal became a wholly-owned subsidiary of IDFC Bank.
IDFC First has seen strong credit growth across the consumer and SME segments over the years, especially with increases in deposit rates. For wholesale financing, IDFC First Bank’s focus has been on improving asset quality with stringent checks. With all the initiatives and associated checks in place, the bank expects a continuation of its improvement in key indicators such as bounce rates, collection efficiency, SMA ratios, and overall steady growth.
|Stocks||Market Cap (cr)||Market Price (₹)||52 Week Low-High (₹)|
|403.8 - 419.6|
|Bandhan Bank Ltd||₹35,810.41||
|216.75 - 223.25|
|37.75 - 38.65|
|Federal Bank Ltd||₹36,531.48||
|149.15 - 150.5|
|Bank of India||₹43,464.97||
|105.35 - 106.7|
What is the Share price of IDFC First Bank (IDFCFIRSTB)?
Can I buy IDFC First Bank (IDFCFIRSTB) shares?
How do I buy IDFC First Bank (IDFCFIRSTB) from Angel One?
- Direct investment: You can buy IDFC First Bank (IDFCFIRSTB) shares by opening a Demat account with Angel One.
- Indirect investment: The indirect method involves investing through ETFs and Mutual Funds that offer exposure to IDFC First Bank (IDFCFIRSTB) shares.
What is the total Asset of IDFC Bank?
The total asset of IDFC Bank is Rs. 190,146 crores.
What is the main business of IDFC Bank?
The main business of IDFC First Bank, founded by the merger of Erstwhile IDFC Bank and Erstwhile Capital First in 2018, is to provide banking services, with a special emphasis on the retail segment which accounts for 37% of its asset base
Who are the promoters of IDFC Bank?
The primary promoter of IDFC Bank is IDFC Financial Holding Company Limited.