IDFC First Bank has announced comprehensive financial projections indicating significant improvements across key performance metrics. The bank expects fund costs to drop below 6% this financial year, driven primarily by strategic savings account rate cuts that are reshaping its cost structure.

Enhanced Financial Outlook

The bank's updated projections demonstrate a multi-faceted improvement strategy across various financial parameters:

Operational Efficiency Improvements

IDFC First Bank predicts a significant decrease in its cost-to-income ratio to the mid-50s, reflecting enhanced operational efficiency. This improvement, combined with the reduced fund costs, is expected to result in a return on equity (ROE) ranging between 1.6% to 1.7%.

Regulatory Impact Assessment

The bank has identified potential regulatory challenges with new Liquidity Coverage Ratio (LCR) guidelines starting April 1. These new guidelines may lead to a slight impact of 1% to 1.5% on the bank's LCR, though the bank appears well-positioned to manage this transition.

Strategic Cost Management

The anticipated drop in fund costs below 6% represents a strategic achievement for IDFC First Bank, primarily attributed to effective management of savings account rates. This cost optimization strategy aligns with the bank's broader efficiency initiatives and positions it favorably for sustained profitability improvements in the current financial year.

IDFC FIRST Bank announced that its Board of Directors has approved the re-appointment of Mr. S Ganesh Kumar as an Independent Director for a second term. The decision was made during a Board meeting held on January 31, 2026, following recommendations from the Nomination and Remuneration Committee.

Re-appointment Details

The Board has approved Mr. Kumar's re-appointment for a second term spanning three consecutive years. His new tenure will commence from April 30, 2026 and continue until April 29, 2029, with both dates inclusive. The re-appointment is subject to approval by the Bank's shareholders.

Professional Background

Mr. S Ganesh Kumar brings substantial experience to the Board, having served as Executive Director of the Reserve Bank of India for over three decades. His educational qualifications include an M.B.A., B.Sc., Diploma in Banking, B.G.L., and C.A.I.I.B.

During his tenure at RBI, Mr. Kumar's responsibilities encompassed:

• Complete oversight of Payment and Settlement Systems
• Creation and development of strategic plans for the Bank
• Management of external investments and foreign exchange reserves
• Association with the Institute for Development and Research in Banking Technology

Key Contributions to Financial Infrastructure

Mr. Kumar played instrumental roles in establishing several critical financial institutions and frameworks. He was involved in the creation of the National Payments Corporation of India, Reserve Bank Information Technology Private Limited, and Indian Financial Technology and Allied Services (IFTAS). His expertise extended to policy formulation, including association with the National Cyber Security Council of the Government of India and framing of the Payment and Settlement Systems Act.

His contributions to India's digital payment ecosystem include ideating, designing, and developing innovative technology-based retail payment systems, many of which are currently operated by the National Payments Corporation of India (NPCI).

Regulatory Compliance

The Bank confirmed that Mr. Kumar maintains no relationships with other Directors and is not debarred from holding directorial positions by SEBI or any other regulatory authority. The Board meeting commenced at 9:30 a.m. and concluded at 3:15 p.m., with the disclosure being uploaded on the Bank's website in compliance with SEBI Listing Regulations.