IDFC First Bank Plans ₹3,200 Cr Capital Raise for Growth

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Synopsis:

IDFC First Bank plans to raise ₹3,200 crore through a preferential issue to key institutional investors, strengthening its capital adequacy to 17.49%. With a robust deposit franchise and diverse loan portfolio, the bank aims for sustainable growth while maintaining asset quality.

IDFC First News Today

IDFC First Bank's Board has approved raising approximately ₹3,200 crore through a preferential issue to seize upcoming growth prospects. Around 39.68 crore shares will be allocated to prominent institutional investors in India, such as LIC, HDFC Life, ABSL Insurance, Bajaj Allianz Life, ICICI Lombard, and SBI General Insurance.

Explore: DFC LIMITED

The issuance is set at ₹80.63 per share, marking a premium of 4.51%. Post-capital raise, the bank's capital adequacy is projected to rise to 17.49%.

IDFC First Q4 Results

The bank showcases robust financial metrics, including a 5-year CAGR of 37% in customer deposits and a growth rate that accelerated to 42% in FY24 over FY23. Similarly, the lender's overall loan book (including credit substitutes) grew by 25% year-on-year in FY24.

Maintaining healthy asset quality, the bank reports gross NPA and Net NPA at 1.88% and 0.60%, respectively, as of March 2024.

Additional Read: IDFC First Bank-Q4-Results

Diversified Product Portfolio

IDFC First Bank boasts a diversified product portfolio, spanning credit cards, gold loans, car financing, and more, catering to consumer, rural, MSME, and corporate segments. The bank emphasises its unique ability to sustainably grow its loan book while upholding high asset quality standards, positioning itself for continued success in the competitive banking landscape.

 

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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