IDFC FIRST Bank’s Board of Directors, in its meeting held today, approved a preferential issue of equity capital totaling approximately ?7,500 crore. The capital raise includes ?4,876 crore from Currant Sea Investments B.V., an affiliate of global growth investor Warburg Pincus LLC, and ?2,624 crore from Platinum Invictus B 2025 RSC Limited, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), managed by its Private Equities Department. The proposed transactions are subject to shareholder and regulatory approvals.

The move comes as IDFC FIRST Bank continues its transformation journey from an infrastructure-focused development finance institution (DFI) to a modern, tech-driven, pan-India universal bank. Over the past six years, the bank has invested significantly in expanding its distribution network, enhancing its technology capabilities, and building a strong talent base to emerge as a leading private sector bank in India.

Key performance indicators reflect this transformation:

Deposits have increased sixfold

Loans and advances have doubled

CASA ratio improved from 8.7% to 47.7%

Profit After Tax (PAT) surged from a loss of ?1,944 crore in FY19 to a profit of ?2,957 crore in FY24

Despite a dip in profitability during the first nine months of FY25 due to sector-wide challenges in the microfinance space, the bank has demonstrated resilience. The new capital infusion is expected to boost the overall capital adequacy ratio from 16.1% to 18.9%, with the Common Equity Tier 1 (CET-1) ratio estimated at around 16.5% as of December 31, 2024. This will significantly strengthen the bank’s balance sheet and support its pursuit of sustained, profitable growth.

CEO V Vaidyanathan expressed optimism, stating:

"From the beginning, our vision has been to build a world-class bank rooted in empathy and top-tier customer service. With strong technology and a committed team, we’re at a turning point where income growth is set to outpace operational costs. This will drive stronger operating leverage and help scale several investment-stage businesses into profitability."

Welcoming the investments, he added, “We are pleased to have Warburg Pincus return as a partner and to welcome a wholly owned subsidiary of ADIA as a new shareholder. Their support underlines the strength of our strategy and long-term potential."

Vishal Mahadevia, Managing Director at Warburg Pincus and Global Co-Head of Financial Services, commented:

"The Indian banking sector holds great promise, and IDFC FIRST Bank has built a solid foundation over the years. We’ve known the team since their early days and are excited to back them once again in their journey toward sustainable growth and improved returns."

Hamad Shahwan AlDhaheri, Executive Director of ADIA’s Private Equities Department, said:

"IDFC FIRST Bank stands out as one of India’s leading private banks with a strong management team and growing infrastructure. This investment aligns with our commitment to supporting scalable, future-ready financial institutions that meet the rising demand for financial services across India."