Profitability & Capital Adequacy Presentation
Our approach to building IDFC FIRST Bank (1/3)
Safety First
Culture: Ethical
Capital
Approach to build IDFC FIRST Bank
In December 2018, when our Bank merged with Capital First, both institutions were asset focused firms with
no retail liabilities, hence 91% of our liabilities were institutional.
To address this, we prudently slowed down the loan growth to CAGR of only 5.1% for 3 years, and instead
focused on increasing our retail deposit base. This approach has been successful and retail deposits are now
77% of our customer deposits.
This approach of safety first helped strengthen the Bank's liability franchise and CASA ratio.
The Bank believes income earned unethically is not worth earning. The Bank prioritizes ethics in all its
dealings and in its product design. Accordingly, it designs all products with a "Near and Dear" Test, so that the
employees of the Bank serve only such products they'd want to serve to their own loved ones.
The bank is well capitalized for growth with capital adequacy (including profits) of 16.54% (September 30,
2023). Bank raised Rs. 3000 crore of fresh equity Capital in October 2023. Including the same, the total capital
adequacy ratio would be 18.06% with CET-1 ratio at 15.01%.
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IDFC FIRST
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