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Guidance vs Performance of Guidance – IDFC First Bank

20% Growth, GNPA < 1.5%, ROE 17-18%, and Cutting-Edge Technology by FY29

Bhumika Jain
By Bhumika Jain
1 Min Read
Highlights
  • Achievement of Targets: The bank has met or is likely to meet most of the goals set under Guidance 1.0.
  • Strong Business Model: Incremental profitability enabled investment and growth during FY19-24.
  • Future Vision (Guidance 2.0): Focus on building a world-class bank with consistent 20% balance sheet growth and high ROE of 17-18%.
  • Customer-Centric Approach: Leveraging unique business models, advanced technology, and strong corporate governance for sustainable growth.
Contents
Guidance 1.0 vs Performance of Guidance 1.0Guidance 2.0  (Next 5 Year Plan: FY24-FY29)

NSE: IDFCFIRSTB

Guidance 1.0 vs Performance of Guidance 1.0

• The Guidance 1.0 was given by the bank in Dec at the time of merger of IDFC and Capital First.

• The table below highlights the condition of bank at time of merger and targets achieved in the past 5 years.

Guidance 2.0  (Next 5 Year Plan: FY24-FY29)

• The Bank has met or most likely to meet most targets as provided under Guidance 1.0. 

• The bank shows a strong business model that is incrementally very profitable. Basis this model, a bank could make necessary investments and expenses, and yet improve profitability during FY 19-24. Banks have far greater visibility while providing Guidance 2.0 as compared to the visibility at the time of Guidance 1.0. 

• The plan is of building a world class bank with highest levels of corporate governance, a consistent balance sheet growth of ~20%, with strong asset quality of GNPA < 1.5% and net NPA of < 0.4%, with ROE of 17-18%, with contemporary technology, unique business model, and high levels of Customer Centricity. 

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SOURCES:Annual Report
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