IDFC First Bank is planning to raise Rs 3,000 crore through issuance of equity shares to fund balance sheet growth.

The bank said the fundraise would be through issuance of equity shares and or other equity-linked securities, in one or more tranches, through one or more permissible modes.

The fundraising would not be limited to private placement, qualified institutional placement (QIP) or a combination of these instruments, the private sector lender added.

In June, the bank had raised Rs 1,500 crore worth of Tier 1 bonds.

The bank said it has sharply reduced its funding from wholesale to a stable retail deposit base. 

IDFC First Bank has a CASA of Rs 1,48,474 crore. But since many of the savings deposits got converted to term deposits, the CASA ratio of the bank dropped by 3.57% to 46.47%. At the time of the merger on 31 December 2018, the bank just had a CASA of 8.68%. At that time the total deposits and borrowings were Rs 1,29,381 crore, of which only Rs 10,400 crore (8.04%) were retail deposits and Rs 1,18,981 crore (91.96%) were institutional borrowing and deposits. 

In May 2021, the bank reduced deposit rates for balances up to Rs 10 lakh by 300 basis points from 7% to 4%. Despite this, the CASA deposit growth continued to be strong, with growth of 27% over the previous year as of 30 June 2023.

IDFC First Bank has transformed the liability profile in four years from wholesale to retail, in order to diversify the deposit base.  The retail and wholesale deposits mix has changed to 73:27 with 73 % coming from retail sources. In 2018, wholesale or bulk deposits formed 73% of the total deposit base.

Certificate of deposits (short-term money) has come down to Rs 5,953 crore as of 30 June 2023, from Rs 28,754 crore as of 31 March 2019. During this period, the customer deposit base grew to Rs 1,48,474 crore from Rs 40,504 crore.