A big Investment for IDFC First Bank is coming in as two global investors, Warburg Pincus & Abu Dhabi Investment Authority (ADIA), are investing around Rs 7,500 Cr in the bank. The board of IDFC First Bank
approved a special share sale (called a preferential allotment) to these investors.
Warburg Pincus will invest Rs 4876 crore through its investment arm called Currant Sea Investments B.V.
Abu Dhabi Investment Authority (ADIA) will invest Rs 2624 crore through its unit named Platinum Invictus B 2025 RSC Ltd. However, the deal still needs to be approved by shareholders and regulators.
V. Vaidyanathan, MD & CEO, welcomed and thanked Warburg Pincus and Abu Dhabi Investment Authority (ADIA) for showing their confidence in the bank despite global uncertainty. He said that the bank is founded on the long-term vision with a strong commitment to customer empathy and technology. He said now the bank is profitable: other businesses segments are also expected to become profitable as they continue to scale.
Strong financials of the bank is predicted after the investment, the capital adequacy ratio (a measure of financial strength) is expected to rise from 16.1% to 18.9%, and the core equity ratio is expected to rise up to around 16.5%.
Over the past six years, IDFC First Bank has changed a lot. It shifted from being infrastructure-focused to a modern, customer-friendly bank. During this time deposits grew 6 times and the loans doubled. The CASA ratio improved from 8.7% to 47.7%. The bank went from a ₹1,944 crore loss in FY19 to a ₹2,957 crore profit in FY24. Though the bank faced some challenges in its microfinance business in FY25 but it managed to perform better than many others.
This investment will strengthen the bank’s capital base, giving it more money to lend, expand operations, and improve financial stability. Having Warburg Pincus & Abu Dhabi Investment Authority (ADIA) as global investors on board also boosts the bank’s credibility and market confidence.