IDFC FIRST Bank Merger Performance and Strategy Update
e. Legacy High Cost Borrowings
Section 5: Deposits & Borrowings
Bank continues to successfully run down the legacy high cost long term borrowings
Balance
In Rs. Cr
Rol (%)
As on Jun-22
As on Jun-23
FY24
FY25
FY26
Beyond FY26
Infrastructure Bonds
7,958
6,901
918
5,140
843
0
8.91%
Long Term Legacy Bonds
6,624
6,149
1,310
1,226
3,611
0
9.11%
Other Bonds
2,956
1,146
383
124
306
334
8.96%
Refinance
4,869
1,860
930
930
0
0
8.25%
Total
22,406
16,055
3,541
7,420
4,760
334
8.91%
Because we have a DFI background, the legacy borrowings are costing the bank 8.91%.
To simulate, if the Bank had replaced all high-cost legacy borrowings with the current cost of funds, the return on equity
(annualized) for Q1-FY24 would be higher by ~100 bps.
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IDFC FIRST
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