In a significant move to strengthen its capital base and accelerate growth, IDFC FIRST Bank has announced a capital raise of approximately Rs 7,500 crore through a preferential issue of equity shares. The bank’s Board of Directors has approved the fundraise, which remains subject to shareholder and regulatory approvals.
The capital infusion will be led by two marquee global investors — Currant Sea Investments B.V., an affiliate of Warburg Pincus LLC, contributing around Rs 4,876 crore, and Platinum Invictus B 2025 RSC, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), contributing Rs 2,624 crore.
This strategic investment is expected to raise the bank’s capital adequacy ratio from 16.1 per cent to 18.9 per cent, including a CET-1 ratio of approximately 16.5 per cent (as of December 31, 2024). The strengthened balance sheet will support IDFC FIRST Bank’s expansion plans and solidify its financial position amid a rapidly evolving banking landscape.
Over the past six years, the bank has successfully transformed from an infrastructure-focused development finance institution into a modern, pan-India private sector bank. It has recorded a six-fold increase in deposits, a two-fold increase in loans and advances, and a sharp rise in CASA ratio from 8.7 per cent to 47.7 per cent. Its Profit After Tax (PAT) has also seen a turnaround — from a loss of Rs 1,944 crore in FY19 to a profit of Rs 2,957 crore in FY24, despite headwinds in the microfinance sector in FY25.
Commenting on the development, V. Vaidyanathan, MD and CEO of IDFC FIRST Bank, said, “This investment underlines the confidence that global investors have in our long-term vision and our transformation journey. We are now at an inflection point where income growth is expected to consistently outpace operational expenditure, driving operating leverage and sustainable profitability.”
Vishal Mahadevia, Head of Asia Private Equity at Warburg Pincus, added, “We’ve known the IDFC FIRST Bank team for over a decade and are excited to support their next growth phase. We believe in the Indian banking sector’s strong fundamentals and the leadership’s ability to scale responsibly.”
Currently operating 971 branches across India, IDFC FIRST Bank continues to lead with a digital-first approach, with its mobile banking app ranked 1 in India and 4 globally by Forrester for digital experience in 2024.
This landmark investment reflects the bank’s continued commitment to building a resilient, inclusive, and ethical financial institution, leveraging technology and global partnerships to drive India’s banking future.
