What is the Full Form of IDFC Bank? IDFC Bank Full Form

The IDFC bank full form is Infrastructure Development Finance Company. IDFC Limited was established in 1997 to finance infrastructure projects in India. In the year 2005, the company listed its shares on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). In 2014, IDFC received the approval to set up a private sector bank by the Reserve Bank of India. IDFC Bank is known for its treasury management system and expert management of client operations. To enhance its scale, IDFC bank was looking for opportunities for merger with a specialised partner. Around the same time, Capital First Ltd., a leading non-banking financial company (NBFC) leveraged India’s largest management buyout and got fresh equity of Rs 100 crores. Using this capital, they came up with a small commercial bank named Capital First Bank. To accelerate the growth of both the banks, a merger of IDFC Bank Ltd and Capital First Ltd took place in 2018. It was named as IDFC First Bank. Post-merger the bank has disbursed more than Rs 1,10,400 crores of loan. Out of which 37% of loan is provided to the retail segment. Its Net Interest Margin expanded from 1.9% to 3.0%. And has a customer base of 7.3 million.

IDFC First Bank provides the following facilities across various segments: 

• Home loans, personal loans, vehicle loans, loans against property, gold loans and consumer durable loans
• Consumer banking products
• Business loans, micro enterprises loans
• Credit cards, debit cards
• Savings accounts
• Fixed deposits
• NRI banking
• Private banking
• Wealth management
• Investment banking
• Corporate banking
• Wholesale banking
• Sovereign gold bond investment

Key Personnel of IDFC First Bank:

• Managing Director and CEO: Mr. V. Vaidyanathan
• Managing Director: Vishal Mahadevia
• Independent Directors: Dr. (Mrs.) Brinda Jagirdar, Mr. Hemang Raja, Mr. Pravir Vohra, Mr. Sanjeeb Chaudhuri, Mr. S Ganesh Kumar.

Corporate Social Responsibility (CSR) by IDFC First Bank:

The bank also encourages philanthropic activities to support social causes.

1. Karma First Donation program which allows customers to donate a small amount towards a social cause. The bank, in partnership with various NGOs, supports vocational training to people.
2. Apart from this the bank is also extending its support to the ones who are serving the country during Covid-19 pandemic. They have started an Ask for Mask programme. This initiative provides free masks to 1.5 Lakh essential workers.
3. Under the Shramik Sahayata Program they are providing financial aid to 625 daily wage workers by transferring Rs 3,000 in their bank accounts.
4. They also have started a share a meal program through which they distribute 1 lakh meal packets to slum dwellers and children.
5. Lastly, through their warriors on wheel program, the bank provides free commute to staff doctors, nurses etc.

Let’s look at the financial statements of IDFC First Bank.

Shareholding Pattern of IDFC First Bank:

%	Jun 2020	Sep 2020	Dec 2020	Mar 2021
Promoters	40	40	40	39.98
FIIs	11.31	11.23	11.57	11.88
DIIs	11.25	11.11	11.33	11.23
Government	4.61	4.61	4.61	4.61
Public	32.83	33.05	32.49	32.31

Profit & Loss Account of IDFC First Bank Ltd. (Figures in Rs. Crores):

	Mar 2018	Mar 2019	Mar 2020	TTM
Revenue	9,098	12,204	16,240	15,968
Expenses	1,788	4,701	9,760	9,118
Financing Profit	185	-1,240	-3,748	-1,735
Financing Margin	2	-10	-23	-11
Other Income	1,119	823	1,722	2,254
Interest	7,126	8,743	10,228	8,585
Depreciation	168	2,820	320	0
Profit before tax	1,135	-3237	-2346	519
Tax	16	41	-21	7
Net Profit	880	-1,908	-2,843	483

Recommended Read: Learn to Analyse Income Statement of a Company

Balance Sheet of IDFC First Bank Ltd. (Figures in Rs. Crores):

	Mar 2018	Mar 2019	Mar 2020
Share Capital	3,404	4,782	4,810
Reserves	11,870	13,418	10,594
Borrowings	1,05,327	1,40,337	1,22,476
Other Liabilities	5,781	8,563	11,279
Total Liabilities	1,26,382	1,67,099	1,49,159
Fixed Assets	797	940
Cwip	3	34	74
Investments	60,904	58,245	45,174
Other Assets	64,677	107,880	102,911
Total Assets	1,26,382	1,67,099	1,49,159
Inventories	0	0	0
Trade Receivables	0	0	0
Cash & Bank	4,877	9,526	4,163
Loans and Advances	7,823	12,155	13,228
Trade Payables	0	0	0

Recommended Read: How to Analyse a Balance Sheet of a Company

IDFC First Bank Ltd. ‘s Key Financial Ratios:

Market Cap (Cr): Rs 35,184	Face Value (₹): 10	EPS (₹): 0.85
Book Value (₹): 24.8	Roce (%): 6.6	Debt to Equity: 0.00
Stock P/E: 72.8	ROE (%): 3.14	Dividend Yield (%): 0
Revenue (Cr): 15,540	Earnings (Cr): 0	Cash (Cr): 0
Total Debt (Cr): 0	Promoter’s Holdings (%): 0

IDFC First Bank Ltd. Mutual Funds and Holdings:

Schemes	Quantity	As on	Prev. Qty	Change (Qty)
Aditya Birla sun life tax relief 96-idcw payout	38,566	31-05-2021	36,061	+2,505
Nippon India money market fund – growth plan growth option	24,999	31-05-2021	0	+24,999
Aditya Birla sun life MNC fund-growth	21,096	31-05-2021	19,726	+1,370
Sundaram mid cap fund regular growth	10,681	31-05-2021	9,987	+694
Tata large and mid cap fund regular plan growth	4,096	31-05-2021	3,830	+266
Kotak equity arbitrage fund – regular plan – growth	2,290	31-05-2021	0	+2,290
Aditya Birla sun life bal bhavishya yojna wealth plan regular growth	1,173	31-05-2021	1,097	+76
Edelweiss arbitrage fund growth option	1,029	31-05-2021	0	+1,029
Quant active fund regular plan – growth	820	31-05-2021	493	+327
Aditya Birla sun life retirement fund – the 30s plan regular growth	566	31-05-2021	530	+36

Samco’s Ratings for IDFC First Bank Ltd.: 0.5 out of 5 stars

Valuation analysis: 

You can easily analyse if the stock is overvalued or undervalued using margin of safety index. You can analyse the margin of safety of a stock by visiting samco’s share price page.

• High margin of safety indicates that the share price of a share is lower than its intrinsic value.
• Low margin of safety indicates that the share price is higher than its intrinsic value.

IDFC First bank has a high margin of safety. 

Peer Comparison of IDFC First Bank Ltd.:

Company	Market Cap (Rs. Cr)	P/E	Roce (%)	ROE (%)	Dividend Yield (%):
IDFC Bank	35,184	72.8	6.6	3.14	0
HDFC Bank	8,21,685	25.8	6.31	16.5	0.44
ICICI Bank	4,36,866	23.8	6.04	15	0
SBI	3,75,191	17.4	4.53	8.21	0.95

For more information visit Samco’s share price page. Recommended reading: How to analyse banking stock? A complete guide.