IDFC First Bank to receive investment of Rs. 7,500 crore to fuel its Next Phase of Growth

New Delhi: At its meeting, the IDFC FIRST Bank Board of Directors authorized a preferential issue of equity capital (CCPS) to Currant Sea Investments B.V., a subsidiary of global growth investor Warburg Pincus LLC, for about Rs 4,876 crore, and to Platinum Invictus B 2025 RSC Limited, a fully owned subsidiary of the Abu Dhabi Investment Authority (ADIA) that is run by its Private Equities Department, for about Rs 2,624 crore. Therefore, a total amount of Rs 7,500 crore will be invested in the Bank.

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.

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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.

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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.”

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