IDFC First Bank to Raise Rs 75 Bn from Warburg Pincus and ADIA
18 Apr 2025
2 Min Read
CW Team
IDFC FIRST Bank has announced a plan to raise approximately Rs 75 billion by issuing preferential shares to affiliate companies of Warburg Pincus and the Abu Dhabi Investment Authority (ADIA). The bank will receive an investment of Rs 48.76 billion from Currant Sea Investments B.V., an affiliate of Warburg Pincus, for a 9.8 per cent stake, while Platinum Invictus B 2025 RSC, a wholly-owned subsidiary of ADIA, will invest Rs 26.24 billion for a 5.1 per cent stake.
The bank has undergone a significant transformation over the past six years, transitioning from an infrastructure-focused development financial institution (DFI) to a modern, technology-driven, pan-India universal bank. This evolution has involved substantial investments in distribution, technology, and talent, positioning IDFC FIRST Bank as a leading private sector bank in India. As a result, the bank has seen its deposits grow six-fold, its loans and advances double, and its CASA ratio improve dramatically from 8.7 to 47.7 per cent. Additionally, its profit after tax (PAT) rose from a loss of Rs 19.44 billion in FY19 to a profit of Rs 29.57 billion in FY24.
Despite a dip in profitability during 9MFY25, primarily due to challenges in the microfinance sector, the bank has navigated these hurdles effectively. With the new fund raise, its capital adequacy ratio is expected to increase from 16.1-18.9 per cent, with a CET-1 ratio of around 16.5 per cent, further strengthening its balance sheet and positioning the bank for sustainable growth.
This strategic funding aims to support IDFC FIRST Bank's continued expansion, enhance its technology infrastructure, and cater to the growing demand for financial products in India.
News source: Financial Express
IDFC FIRST Bank has announced a plan to raise approximately Rs 75 billion by issuing preferential shares to affiliate companies of Warburg Pincus and the Abu Dhabi Investment Authority (ADIA). The bank will receive an investment of Rs 48.76 billion from Currant Sea Investments B.V., an affiliate of Warburg Pincus, for a 9.8 per cent stake, while Platinum Invictus B 2025 RSC, a wholly-owned subsidiary of ADIA, will invest Rs 26.24 billion for a 5.1 per cent stake.
The bank has undergone a significant transformation over the past six years, transitioning from an infrastructure-focused development financial institution (DFI) to a modern, technology-driven, pan-India universal bank. This evolution has involved substantial investments in distribution, technology, and talent, positioning IDFC FIRST Bank as a leading private sector bank in India. As a result, the bank has seen its deposits grow six-fold, its loans and advances double, and its CASA ratio improve dramatically from 8.7 to 47.7 per cent. Additionally, its profit after tax (PAT) rose from a loss of Rs 19.44 billion in FY19 to a profit of Rs 29.57 billion in FY24.
Despite a dip in profitability during 9MFY25, primarily due to challenges in the microfinance sector, the bank has navigated these hurdles effectively. With the new fund raise, its capital adequacy ratio is expected to increase from 16.1-18.9 per cent, with a CET-1 ratio of around 16.5 per cent, further strengthening its balance sheet and positioning the bank for sustainable growth.
This strategic funding aims to support IDFC FIRST Bank's continued expansion, enhance its technology infrastructure, and cater to the growing demand for financial products in India.
News source: Financial Express
Next Story
Kochi Canals Set for Major Transport and Tourism Upgrade
Kochi is poised for a major transformation as the Kerala government approves the Rs 37.16 billion Integrated Urban Regeneration and Water Transport System, which will revitalise the city鈥檚 historic canal network. The ambitious project, led by Kochi Metro Rail Limited (KMRL), aims to combine urban renewal, sustainable transport, and tourism development.鈥淚 am delighted that the state government has cleared this transformative initiative,鈥� said Loknath Behera, Managing Director of KMRL. 鈥淭his project will ease monsoon flooding, address long-standing waste management issues, and rejuvenate..
Next Story
Charminar to Get High-Tech Multi-Level Parking Facility
To tackle long-standing parking challenges around the iconic Charminar in Hyderabad, the Greater Hyderabad Municipal Corporation (GHMC) has announced the development of a state-of-the-art multi-level parking (MLP) facility under a public-private partnership (PPP) model.The project, spanning 3,500 square metres, will accommodate approximately 145鈥�150 cars and 150 two-wheelers. In addition to easing congestion, the complex will include a dedicated hawker zone and commercial spaces, blending heritage with modern convenience.Charminar, a major tourist attraction, has faced mounting infrastructur..
Next Story
Chalai Market Revamp May Get Boost From Urban Challenge Scheme
The long-delayed redevelopment of Thiruvananthapuram鈥檚 historic Chalai market could soon gather momentum, as the Kerala government seeks funding under the Union government鈥檚 newly launched Urban Challenge Scheme. Authorities aim to secure one-third of the project鈥檚 estimated Rs 2 billion cost through this Central initiative, recently introduced in the Union Budget.Spearheaded by Smart City Thiruvananthapuram Ltd (SCTL), the redevelopment is planned in four phases. Phase I, which involves upgrading the internal road network, is nearing completion. However, financial constraints have stall..
