Profitability & Capital Adequacy Presentation
e. Legacy High Cost Borrowings
Section 6: Deposits & Borrowings
Bank continues to successfully run down the legacy high cost long term borrowings
Balance
In Rs. Cr
Rol (%)
As on Sep-22
As on Sep-23
H2-FY24
FY25
FY26
Beyond FY26
Infrastructure Bonds
7,742
5,908
0
5,071
837
0
8.94%
Long Term Legacy Bonds
6,508
6,129
1,310
1,226
3,593
0
9.11%
Other Bonds
2,392
1,105
349
124
301
331
8.95%
Refinance
3,807
1,860
930
930
0
0
8.25%
Total
20,449
15,002
2,589
7,351
4,731
331
8.92%
Because we have a DFI background, the legacy borrowings are costing the bank 8.92%. The Bank plans to replace this with low-
cost deposits.
To simulate, if the Bank had replaced all high-cost legacy borrowings with the current cost of funds, the return on equity
(annualized) for Q2-FY24 would be higher by ~100 bps.
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