InvestorQ : Is it true that IDFC Bank is planning to grow its loan book by 25% each year?
Dilmini Mercia made post

Is it true that IDFC Bank is planning to grow its loan book by 25% each year?

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Dawn Cherian answered.
4 months ago
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It is not total loans but just the retail loans that IDFC Bank plans to grow at the rate of 25% per year. Even within IDFC First Bank is planning an aggressive push to mortgage loans, which is expected to constitute around 40% of the retail loan book. It may be recollected that IDFC First Bank was formed by the merger of IDFC Bank and First Capital after the Shriram deal did not materialize. Vaidyanathan, formerly ICICI, is the chairman.

If you look at the profit numbers for FY21, IDFC First Bank reported net profits of Rs.452 crore as against a net loss of Rs.2,864 crore in FY20. However, the CEO has repeatedly pointed out that IDFC First Bank cannot be compared to other banks since they had to start with the legacy of bad loans of the IDFC group in the infrastructure space. According to Vaidyanathan, if that effect is excluded, IDFC First Bank has grown really fast.

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