Mumbai, April 17, 2025: The Board of Directors of
IDFC FIRST Bank, at its meeting held today, approved a preferential issue of
equity capital (CCPS) amounting to approximately ₹4,876 crore to Currant Sea
Investments B.V., an affiliate company of
global growth investor Warburg Pincus LLC and approximately ₹2,624 crore to
Platinum Invictus B 2025 RSC Limited, a wholly owned subsidiary of the Abu
Dhabi Investment Authority (ADIA) managed by its Private Equities Department. The
proposed issues are subject to shareholder and regulatory approvals.
Over the last six years, IDFC FIRST Bank has undergone a successful
transformation from its legacy as an infrastructure-focused DFI to becoming a
modern, technology-driven, pan-India, universal bank. In the process, it has
made significant investments in distribution, technology, and talent to become
a leading private sector bank in India.
During this time, deposits grew 6x, loans and advances doubled, and CASA
ratio has significantly improved from 8.7% to 47.7%. PAT rose from a loss of
₹1,944 crore in FY19 to a profit of ₹2,957 crore in FY24. However,
profitability dipped in 9M FY25 due to industry wide challenges in
microfinance, which the bank has navigated well. With this fund raise, the
overall capital adequacy will increase from 16.1% to 18.9%, (CET-1 ratio at
~16.5%, calculated on the capital position of the Bank as of December 31, 2024),
strengthening the Bank’s balance sheet and positioning it for strong and
self-sustaining profitable growth.
Mr. V Vaidyanathan, Managing Director & CEO, IDFC FIRST Bank: “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.
The Bank has firmly
moved into profits and is now at a pivotal stage, where our income growth is
expected to consistently exceed OPEX growth, leading to improved operating
leverage. We expect many businesses which are in the investment stage to turn
profitable with scale.
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. We believe only
by building a strong, respected franchise loved by customers and supported by
strong unit economics, we will deliver sustainable long-term returns to our
stakeholders.”
Vishal Mahadevia, Managing Director, Head of Asia Private Equity, and Global Co-Head
of Financial Services, Warburg Pincus, said, “We believe the Indian
banking sector presents an exciting opportunity and is poised for long-term
growth. At Warburg Pincus, we have a long track record of partnering with
exceptional teams. We have known the IDFC First Bank team for over a decade
dating back to their early days and have closely seen the build out of the
bank. We are excited to re-invest behind the IDFC First Bank team to support
them in the next phase of growth and sustainable ROE improvement.”
Hamad Shahwan
AlDhaheri, Executive Director of the Private Equities
Department at ADIA, said, “IDFC First Bank has firmly established itself
as one of India's leading private sector banks, backed by a seasoned management
team. It has expanded both its technology and branch infrastructure over number
of years and is well positioned for the future. This investment is aimed at
supporting the bank's continued growth, enabling it to meet the rising demand
for financial products in the country.”
About IDFC FIRST Bank
IDFC FIRST Bank is a
new-age private bank in India, with a vision to create a world class bank in
India, focused on Ethical, Digital, and Social Good Banking. It operates 971
branches spread over 60,000 locations including cities, towns, and villages
across India. While it has a physical network, it is built as a digital first
Bank in approach, scale and scope.
It is a full suite Universal Bank
offering services across Retail, MSME, rural, corporate, wealth management,
private banking, Fastag, cash management, NRI and treasury solutions. The
Bank’s customer deposits are growing at 25.2% YoY and Loans & Advances
growing by 20.3% YoY (as of March 31, 2025 as per provisional disclosure) based
on friendly user digital interface, ethical approach, and a strong brand.
Bank’s mobile banking
app was rated #1 in India and #4 globally by Forrester in Digital
Experience: Indian Mobile Banking Applications, Q3 2024 and Digital
Experience Review™: Global Mobile Banking Apps, Q4 2024.
Its employees believe
that to create a world class bank in India is an incredible opportunity of
their lifetimes.
About Warburg Pincus
Warburg Pincus LLC is
the pioneer of private equity global growth investing. A private partnership
since 1966, the firm has the flexibility and experience to focus on helping
investors and management teams achieve enduring success across market cycles. Today,
the firm has more than $87 billion in assets under management, and more than
220 companies in their active portfolio, diversified across stages, sectors,
and geographies. Warburg Pincus has invested in more than 1,000 companies
across its private equity, real estate, and capital solutions strategies.
The firm is headquartered in New York with offices in Amsterdam,
Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San
Francisco, São Paulo, Shanghai, and Singapore. For more information, please
visit www.warburgpincus.com.
About Abu Dhabi
Investment Authority (ADIA)
Established in 1976,
the Abu Dhabi Investment Authority (“ADIA”) is a globally diversified
investment institution that prudently invests funds on behalf of the Government
of Abu Dhabi through a strategy focused on long-term value creation.