General Overview

IDFC First Bank (formerly IDFC Bank) is an Indian banking company with headquarters

in Mumbai that forms part of IDFC, an integrated infrastructure finance company. The bank started
operations on 1 October 2015. with 23 branches in Madhya Pradesh, Delhi, Mumbai, Hyderabad,
Bengaluru, Pune, Chennai, Ahmedabad and Kolkata. 15 branches are in settlements with a population
of less than 10,000. IDFC bank has launched its 100th branch in Honnali, Karnataka in October
2017 [11]
In December 2018, IDFC merged with Capital First LTD., an NBFC, and renamed itself as IDFC
FIRST Bank. Capital First shareholders to get 139 IDFC Bank shares for every 10 shares held.

Management of the Company

NAME DESIGNATION
Mr.Sanjeeb Chaudhuri Independent Director
Mr.Anand Sinha Independent Director
Mr.Hemang Raja Independent Director
Mr.Pravir Vohra Independent Director
Dr.(Mrs.)Brinda Jagirdar Independent Director
Mr.Aashish Kamat Independent Director
Mr.V Vaidyanathan Managing Director & CEO
Ms.Anindita Sinharay Non Exe.Non Ind.Director
Mr.Vishal Mahadevia Non Exe.Non Ind.Director
Mr.Sunil Kakar Non Exe.Non Ind.Director
 Dr.Rajiv B Lall Non Exe.Part Time Chairman
Mr.Pankaj Sanklecha Chief Financial Officer
Mr.Ajay Mahajan Head
Mr.Satish Gaikwad Head - Legal & Co. Secretary

SWOT Analysis
Strength:
 Strong loan asstes of more than Rs. 104660 Cr
 34.62 percent of loans in retail sector
 Margins increased from 1.7% in standalone to 3.3% post merger
 Diversified asset profile
 Strong platform to grow retail deposits and CASA
 A large rertail customer base of more than 70 lacs live customers including 30 lacs rural
customers

Weakness:

Security over Digital Media –

 Since the banking and monetary exchanges of Yes Bank occurs using advanced media, there
is a high danger of security in their business tasks. The acknowledgment level of individuals
to include cash through computerized mode isn’t supported by many.

Utilization of Digital in Rural Area –

In the majority of the provincial territories, the use of advanced media isn’t solid for banking
and monetary reason.

Heterogeneous Client –

It ineffectively arranged to address the heterogeneous customer prerequisites.

Change in Laws and Regulations –

Whenever there is an adjustment in law and guidelines forced by the administration, it can
influence the business tasks of the bank.

Opportunities:

Huge Asset in one Client –

The Bank has huge resources per customer that give a colossal chance to serve them and
furthermore developed in the banking and budgetary administrations.

Worldwide Market –

The Bank has a great deal of permeability in the worldwide market with fewer obstructions.
This is giving a chance to the bank to go worldwide and flourish their business objectives.
Extending Services to Clients –

The Bank offers an extended warning and modified administrations to the customers, banks,
and speculators. This will attempt to give them a chance to upgrade their business.

Business goals towards middle and lower-income groups –

Unlike different banks that fundamentally target upper working-class parts, IDFC First bank
grows its business to try and take into account the center and lower salary gathering of the
general public.

Awareness in Digital Media –

Increasing mindfulness in the computerized media among individuals gives a gigantic chance
to the bank to provide food to more clients.

Threats:

Security Issues –

At whenever, on the off chance that the bank faces any security-related issues, at that point it
turns into a genuine danger to the bank. It is hard to pick up client certainty again later in
such cases.

High Fee –

The bank’s high charge arranging intensity of the customers is without a doubt a tremendous
risk to the bank’s the same old thing.

Worldwide Competitors –

The nearness of numerous worldwide goliaths in the banking and money administrations is a
major danger for the bank to continue in this market.

Competitors Analysis
 MAS

MAS has been one of IDFC FIRST Bank's top competitors. MAS is a Public company that was
founded in 1995 in Ahmedabad, Gujarat. MAS operates in the Consumer Finance & Credit Cards
industry. Compared to IDFC FIRST Bank, MAS has 11,262 fewer employees.

Bajaj Finserv

Bajaj Finserv is seen as one of IDFC FIRST Bank's biggest rivals. Bajaj Finserv is a Public company
that was founded in Pune, Maharashtra in 2007. Bajaj Finserv is in the Consumer Finance & Credit
Cards industry. Bajaj Finserv has 7,906 more employees vs. IDFC FIRST Bank.

Mahindra Finance

Mahindra Finance is perceived as one of IDFC FIRST Bank's biggest rivals. Mahindra Finance was
founded in Mumbai, Maharashtra} in 1991. Like IDFC FIRST Bank, Mahindra Finance also
competes in the Diversified Financial Services sector. Compared to IDFC FIRST Bank, Mahindra
Finance generates $398.3M less revenue.

THE ROAD AHEAD

1. Asset Strategy:

 Growth of Assets:  The Bank plans to grow the retail asset book from Rs. 36,236 Cr
(December 31, 2018) to over Rs. 100,000 Cr in the next 5-6 years. Thus, the Bank plans to increase
the retail book composition from current figure of 34% to more than 70% in the next 5-6 years.
 Diversification of Assets: The Bank plans to reduce the loans to infrastructure segments (Rs.
22,710 as of 31 December 2018) as they mature.

Gross Yield Expansion: As a result of the growth of the retail loan assets (at a relatively higher yield
compared to the wholesale loans), the gross yield of the Bank’s Loan Book is planned to increase
from 9.2% (as per Q2-FY19 published financials, before the merger) to ~ 12% in the next 5-6 years.
The bank will expand Housing loan portfolio as one of its important product lines. 

2. Liability Strategy:

 CASA Growth: The key focus of the Bank would be to increase the CASA Ratio from
10.3% (December 31, 2018) on a continuous basis year on year and strive to reach 30% CASA
ratio within the next 5-6 years, as well as set a trajectory to reach a CASA ratio of 40-50% there on.
 Diversification of Liability: Diversification of Liabilities in favour of the retail deposit
(including CASA and Retail Term Deposits) is essential for the bank. As a percentage of the total
borrowings, the Retail Term Deposits and CASA is proposed to increase from 10.5% currently
(December 31, 2018), to over 50% in the next 5-6 years and set up a trajectory to reach 75%
thereafter,
 Branch Expansion: In order to grow Retail Deposits and CASA, the bank plans to set up
600-700 more bank branches in the next 5-6 years from the current branch count of 206.

3.Profitability:
 Net Interest Margin: As the retail asset contribution moves towards 70% of the total fund
assets, it is planned that the gross yield will continuously increase. Coupled with lower cost of
funds (From improved CASA ratio), it is planned to expand NIM to about 5.5% in the next 5-6
years.
 Cost to Income:  The Bank plans to improve C:I ratio to ~50-55% over the next 5-6 years,
down from ~80% (post-merger results, Quarter ended December 31, 2018)

ROA and ROE:  With the improvement in the NIM and cost to income ratio, the    bank aims to reach
the following benchmarks in the next 5-6 years.

 ROA of 1.4%-1.6%
 ROE of 13%-15%