IDFC First Bank Q2 Update: Loans Surge 21.3% YoY, Deposits Up 32.2%

IDFC First Bank on Friday (October 4), announced its provisional Business Update for quarter ending on September 30, 2024 and proforma shareholding on conclusion of merger, the company said through an exchange filing.

The IDFC FIRST Bank on October 1, 2024 officially merged with IDFC Limited, marking it into an independent institution free from promoter holdings.

"We are happy to report that the merger of IDFC Limited into IDFC FIRST Bank has been completed and is effective from 1st October 2024," said the Bank in the BSE filing.

On the stock market front, the shares of the company closed at Rs 72.00 on Friday, marking a slight increase of 0.028 per cent.

A Look at Shareholding Structure

Public: 3,20,28,53,434 shares (43.78 per cent)

Foreign Institutional Investors (FIIs): 2,03,70,59,755 shares (27.84 per cent)

Domestic Institutional Investors (DIIs): 1,40,97,86,330 shares (19.27 per cent)

Government of India: 66,65,70,000 shares (9.11 per cent)

In total, the bank now holds 7,31,62,69,519 shares, representing 100 per cent ownership. This change comes after the cancellation of 2,64,64,38,348 shares held by IDFC Limited and the issuance of 2,47,99,75,876 shares to IDFC Limited shareholders, as detailed in the merger scheme.

Financial growth

Here are some key highlights:

Loans and Advances: Increased from Rs 1,83,236 crore in September 2023 to Rs 2,22,188 crore in September 2024, a 21.3 per cent year-over-year (YoY) growth.

Customer Deposits: Surged from Rs 1,64,726 crore in September 2023 to Rs 2,17,738 crore in September 2024, a 32.2 per cent YoY growth.

"The Bank grows Deposits at a relatively high pace as compared to loan growth, as the bank also raises funds for repaying legacy borrowings. Need for such growth in deposits will slow down after legacy borrowings are repaid," said the company in the regulatory filing.

CASA Deposits: Reported a 37.6 per cent YoY increase, reaching Rs 1,09,345 crore.

CASA Ratio: Increased to 48.9 per cent as of September 30, 2024, compared to 46.4 per cent the previous year.

"Rating Agencies - CRISIL and CARE have reaffirmed their long-term credit rating of the Bank at AA+ Stable," added the company in the exchange filing.