IDFC FIRST Bank Limited has secured regulatory approval from the Reserve Bank of India (RBI) for ICICI Prudential Asset Management Company Limited to acquire a significant shareholding in the bank. The approval, communicated on February 11, 2026, marks an important development in the bank's shareholding structure.

RBI Approval Details

The central bank has granted permission to ICICI Prudential Asset Management Company Limited, along with group entities of ICICI Bank Limited, to acquire an aggregate holding of up to 9.95% of the paid-up share capital or voting rights of IDFC FIRST Bank Limited. This approval comes after the applicant had formally sought RBI's prior approval for the proposed acquisition.

Regulatory Conditions and Compliance

The RBI approval comes with several stringent conditions and compliance requirements that the acquiring entity must adhere to. The approval is subject to compliance with relevant provisions of multiple regulatory frameworks:

• Banking Regulation Act, 1949
• Reserve Bank of India (Commercial Banks - Acquisition and Holding of Shares or Voting Rights) Directions, 2025 dated November 28, 2025
• Foreign Exchange Management Act, 1999
• Securities and Exchange Board of India regulations
• Other applicable statutes, regulations and guidelines

Timeline and Restrictions

The RBI has imposed specific timeline requirements for the completion of the acquisition. The approval includes a critical condition that if ICICI Prudential Asset Management Company Limited fails to acquire the major shareholding within one year from the date of the RBI letter, the approval will automatically stand cancelled.

Additionally, the applicant must ensure that the aggregate holding in IDFC FIRST Bank does not exceed 9.95% of the paid-up share capital or voting rights at all times, maintaining strict adherence to the prescribed limits.

Disclosure and Transparency

IDFC FIRST Bank has made this disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication was signed by Satish Gaikwad, General Counsel and Company Secretary of the bank, ensuring proper corporate governance and transparency in the disclosure process.

This regulatory approval represents a significant step in the potential restructuring of IDFC FIRST Bank's shareholding pattern, subject to the successful completion of the acquisition within the stipulated timeframe and continued compliance with all regulatory requirements.

IDFC First Bank conducted its quarterly earnings call for Q3FY26 on January 31, 2026, following the Board of Directors meeting. The bank's leadership team, including Managing Director and CEO V. Vaidyanathan and CFO Sudhanshu Jain, provided comprehensive insights into the bank's strong financial performance and long-term strategic vision.

Seven-Year Transformation Journey

V. Vaidyanathan highlighted the bank's remarkable transformation over seven years since the merger in December 2018. The bank began with total deposits and borrowings of ₹1,18,000 crore, of which only ₹10,400 crore were retail deposits, while ₹79,000 crore comprised wholesale deposits, certificates of deposits, and borrowings that required repayment on due dates.

Strong Q3FY26 Financial Performance

The bank demonstrated robust financial metrics across all key parameters during the quarter. Net profit reached ₹503 crore, representing a sequential growth of 43% and year-on-year growth of 48%. The nine-month profit stood at ₹1,317 crore, reflecting sustained profitability momentum.

Deposit Franchise and Liability Management

The bank's deposit mobilization strategy showed exceptional results with total deposits growing 22.9% year-on-year to reach ₹2.90 lakh crore. Customer deposits demonstrated strong growth of 24.3%, reaching ₹2.83 lakh crore, while nine-month average customer deposits grew 25% year-on-year.

Asset Quality and Credit Management

The bank reported continued improvement in asset quality metrics with gross NPA ratio improving by 17 basis points to 1.69% from 1.86% quarter-on-quarter. The management emphasized their five-year average credit cost of 1.95% on funded assets, demonstrating consistent risk management through economic cycles.

Strategic Vision and Business Model

Management outlined their comprehensive business model focused on three lending categories: high-yield segments at 18-24% with 4-6% credit costs, mid-tier products at 14% with 2-3% credit costs, and safer segments like mortgages at 8-9% with 0.5% credit costs. The bank aims for a blended credit cost target of 2% while maintaining a risk-adjusted net interest margin of 4.30%.

Technology and Digital Capabilities

V. Vaidyanathan highlighted the bank's technological prowess, noting that in October alone, IDFC First Bank processed 1.3-1.4 million loans with complete electronic processing including identity checks, bureau verification, fraud checks, KYC, mandate processing, and registration. The bank operates over 100 machine learning-based scorecards for underwriting decisions.

Operational Efficiency and Future Outlook

The bank expects significant operational leverage as it scales, with cost-to-income ratios projected to improve from current levels of 73-74% to mid-50s with increased scale. Management expressed confidence about upcoming quarters, particularly with microfinance challenges largely behind them and the core business model demonstrating resilience.

The earnings call reinforced IDFC First Bank's transformation from a development financial institution to a comprehensive retail bank, with management expressing confidence in achieving sustainable profitability and competitive positioning in the banking sector.