January 22, 2024
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IDFC First bank’s 5 years plan
After achieving most of the guidance parameters set in 2019, Vaidyanathan, CEO of IDFC First Bank is confident of meeting the targets as this time he has a lot more visibility and knows how the liabilities machine and asset book work.
IDFC First Bank is set to double its branch network in five years and reduce bad loans. It aims to expand its assets by 20% annually over five years and deposits by 25%.
“I think a 20% loan growth target is comfortable to achieve when large banks which are 7-8 times our balance sheet are comfortably growing at 20%. So, I think clearly, to grow this 20% should not be a problem at all,” said V Vaidyanathan, .
“We are giving this guidance 2.0 with better visibility today, and better conditions than when we gave guidance 1.0, because we have a stable operating business that is delivering,” he said.
Earlier, there were several unknowns – from asset quality to deposit franchise and the Covid impact. Despite these challenges, the bank has been able to improve CASA (current account savings account) from 8.7% in December 2018 to 46.8% in December 2023 and increased its loan book from ?1.04 lakh crore to Rs.1.89 lakh crore.
The bank plans to double its branch network to 1,700-1,800 by March 2029, from 897 as of December 2023. It will open branches based on requirements to meet deposit goals.
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