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.

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.