IDFC First Bank is a private bank based in Mumbai. It is known as an integrated company of finance. The bank started its operation on 1 October 2015. And in July IDFC First received the universal banking license from the Reserve Bank of India (RBI) and was also listed in the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The Reserve Bank of India (RBI) in 2014 permitted an in principle approval to IDFC limited so that they can set up a new bank in the private sector. Following this, the IDFC Limited transferred its infrastructure finance assets and liability to a new organization that was named IDFC First Bank. They started their operation on October 19, 2015 with 23 branches situated in Madhya Pradesh, Delhi, Hyderabad, Bengaluru, Mumbai, Chennai, Pune, Ahmedabad, and Kolkata.
This bank serves both corporate and private customers residing in India. This also includes the infrastructure sector that IDFC specializes in from 1997. This bank also aims to extend their service to the rural people and the self employed as well. This is the first bank in India to launch the Adhaar linked merchant solution.
IDFC Banks Interest Rates On Savings Accounts
IDFC First Bank has cut short their interest rate on savings accounts from 6 percent to 4-5 per cent. This is applicable for all whose account balance is more than 1 lakhs and has up to 2 crores. They announced this new change of interest rate on their official website and also stated that it will be effective from May 1, 2021.
This private bank will be offering a 4 per cent interest rate for those who have an account balance of 2 crores to 10 crores, 5 per cent for those who have an account balance of up to 2 crores, and 4.5 per cent for those who have up to 10 lakhs account balance.
IDFC First Bank was one of the private banks along with Bandhan Bank and RBL Bank that used to provide the highest interest rate on savings. This private sector lender has cut the interest rate from 7 per cent to 6 per cent in February.
The bank has witnessed its current and savings account (CASA) ratio hike to 48.3% as of 31 December 2020 from 11.4% as of March 31, 2019.
Since the merger with Capital First in 2018, IDFC First Bank has modified itself into a retail banker from a traditional infrastructure operator. It had given an advice of CASA ratio of 30% by the fiscal year 2024 and 50% henceforth.
The bank had lifted ₹3,000 crores through a Qualified Institutional Placement (QIP) earlier in this month.