Credit Rating- New

IDFCFIRSTBANK/SD/144/2026-27 October 08, 2026 National Stock Exchange of India Limited BSE Limited Mumbai 400 051 Mumbai 400 001 NSE Symbol: IDFCFIRSTB BSE Scrip Code: 539437 Sub.: Disclosure under Regulation 30 of the SEBI (LODR) Regulations, 2015, as amended. Dear Sir/Madam, Pursuant to Regulation 30 of the SEBI Listing Regulations, we wish to inform that Brickwork Ratings have re-affirmed its existing rating ‘BWR AA+ / Stable’ in respect of the outstanding Non-Convertible Debentures of the Bank aggregating to ₹ 406.90 crore. A detailed Rating Rationale for the above is enclosed herewith. Request you to take the above on record. Thanking you, Yours faithfully, For IDFC FIRST Bank Limited Satish Gaikwad General Counsel and Company Secretary Encl.: as above IDFC FIRST Bank Limited Corporate Office: IDFC FIRST Bank Tower, (The Square), C-61, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051, Maharashtra. Tel: +91 22 7132 5500 Registered Office: KRM Tower, 7th Floor, No. 1, Harrington Road, Chetpet, Chennai 600 031, Tamil Nadu. Tel: +91 44 4571 6477 CIN: L65110TN2014PLC097792 | E-mail: bank.info@idfcfirstbank.com; | Website: www.idfcfirst.bank.in Rating Rationale 07 Oct 2026 IDFC First Bank Ltd. SUMMARY OF RATING ACTION Amount Rs. crores. Rating Instruments Tenure Previous Previous Present Present Regulator 08 Oct 2025 Non- Convertible BWR AA+/Stable BWR AA+/Stable 621.00 406.90 Long Term SEBI Debentures (Reaffirmed) (Reaffirmation) Total 621.00 406.90 Rupees Four Hundred Six Crores and Ninety Lakhs only Note ● Please refer to the BWR website www.brickworkratings.com for the definition of the ratings ● Refer to Annexures I, II, and III for details of rated bank loan facilities, debt instruments, and the List of Entities Consolidated. RATING ACTION / OUTLOOK: REAFFIRMATION/STABLE Brickwork Ratings (BWR) reaffirms the rating at BWR AA+/ Stable for the outstanding non-convertible debentures aggregating to Rs. 406.90 crores (reduced from Rs.621 crores on account of their redemption upon maturity) of IDFC FIRST Bank Ltd (IFBL or the ‘Bank’), as tabulated above. The rating review factors in IDFC First Bank Ltd’s audited financials up to FY26, performance up to Q1FY27, publicly available information, and information and clarification provided by the Bank’s management, and feedback from the Debenture trustee. The rating reaffirmation factors in the Bank’s growth in the business to Rs.6.17 lakh crores. (30 June 2025: Rs.5.18 lakh crores) consisting of Gross funded assets of Rs. 3.05 lakh crores (30 June 2025: Rs. 2.53 lakh crores) and total customer deposits of Rs. 3.12 lakh crores (30 June 2025: Rs. 2.65 lakh crores), as of 30 June 2026. Retail deposits constituted 80% of total deposits as of 30 June 2026, with CASA deposits growing by 25% YOY to Rs.1.58 lakh crores (30 June 2025: Rs. 1.27 lakh crores) and retail deposits growing by 16.6% YOY to Rs. 2.38 lakh crores (30 June 2025: Rs. 2.04 lakh crores). The Bank’s CASA ratio was 50.8% as of 30 June 2026 (30 June 2025: 48%). The Bank’s capital adequacy ratios with a total CRAR at 15.05% (CET-1 ratio of 13.33%) as of 30 June 2026 (30 June 2025: CRAR was 15.01% and CET-1 ratio was 12.80%), above the minimum regulatory requirements of CRAR of 11.5% and CET-1 of 8.0%, including the Capital Conservation buffer; The bank has raised capital amounting to Rs.7500 crores from marquee investors in Q2FY2026 through issuance of Compulsorily Convertible Preference Shares (CCPS) which were subsequently converted into common equity. The bank’s asset quality metrics of Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) ratios were below 2% and 1%, respectively, as at 30 June 2026. The total deposits of the Bank increased by 17.71% YOY for the quarter ending 30 June 2026 to reach Rs. 3,11,892 crores, while retail deposits grew by 16.6% YOY for the quarter ending 30 June 2026 to reach 2,38,090 crores, with the CASA ratio at 50.8% as of June 30, 2026, which was better than peers in the industry. Retail Deposits constituted 80% of total customer deposits as of June 30, 2026. The Asset Businesses (Retail, Agri, MSME & Wholesale Banking) continued to support the bank’s profitability. However, as the bank is investing in building the deposit franchise, the Retail Liability business is yet to break even. Retail Liabilities Business is moving towards break-even with scale and productivity. The Bank has invested in building necessary branch infrastructure, people, digital platforms and other capabilities. The Credit Card business needs significant investment in the initial phase in terms of people, product structuring and innovation, digital capabilities, monitoring and collection framework, promotions, tie-ups and distribution. Credit Card business has achieved operational break-even in just 4 years, indicating a highly successful scale-up. Overall profitability of the Bank to be positively impacted by the profitability of the Credit Cards business. For Q1 FY27, Return on Assets stood at 1.06% and Return on Equity stood at 8.98%, with improvement in operating leverage and scalability to be monitorable. The Bank continues to be supported by an experienced board of directors and management team under the leadership of Mr V. Vaidyanathan as its Managing Director and Chief Executive Officer. The rating, however, is constrained by the high credit-deposit ratio. Even though the credit-deposit ratio (including Certificates of Deposit) has continuously improved during the last 4 years and reached 95.50% as on 30th June 2026. It is still high as compared to the peers because of legacy reasons. Further, with its retail-centric activity, the bank’s cost-to-income ratio was 70.73%; though higher than the industry average of ~50%, the bank is making its efforts to reduce the same. It stood at 72.80% as at 31 Mar 2025 and 73.50% as at 31 Mar 2026. The impact of provisioning costs caused by the impact on the microfinance industry during FY25 resulted in lower profitability for the bank and also resulted in a decline in ROA and ROE below 1% and 10%. BWR shall monitor the developments for the bank to restore its ROA and ROE to those of FY24 and FY23. BWR will continue to monitor the sustainability of the current growth indicators along with the asset quality, especially the incremental slippages from the bank’s exposure to business loans, particularly in the retail and microfinance sector. KEY COVENANTS OF THE INSTRUMENT/FACILITY RATED: The NCDs of the bank rated by BWR were the issues from the erstwhile Capital First Limited and Capital First Home Finance Limited, which upon amalgamation were transferred in the books of IDFC First Bank Limited. These instruments continue to be rated as NCDs as per their terms. These NCDs were raised in various tranches and had various issue dates and thereby the maturity dates. These instruments carry coupon rates ranging between 8.6% and 10.5%. The coupons are serviced on a timely basis, and some of these instruments are redeemed in full upon their maturity, as confirmed by the Bank and Debenture trustee. The ISIN details of outstanding NCDs covering the key terms are as stated in Annexure -II ANALYTICAL APPROACH & APPLICABLE RATING CRITERIA Analytical Approach Comments ● General Criteria ● Banks & Financial Institutions Applicable Rating Criteria ● Capital Instruments Issued by Banks and Financial Institutions ● Financial Ratios Parent/Group/Government Support None Standalone Analytical Approach For arriving at its ratings, BWR has evaluated the risk profile of IDFC (Consolidation/Standalone) First Bank Ltd on a standalone basis. KEY RATING DRIVERS WITH DETAILED DESCRIPTION Credit Strengths: ● Gradual conversion of business mix: The Bank is a Universal Bank, offering a comprehensive range of services, including Retail, MSME, Rural, Startups, Corporate Banking, Cash Management, Wealth Management, Deposits, Government Banking, Working Capital, Trade Finance, and Treasury solutions [Showing first 8,000 characters — download PDF for full document]