IDFC First Bank's retail aspiration is swallowing capital

Proforma NPA in Q3 stood at 4.18 per cent and retail NPA at 3.88 per cent is highest among top 7 banks

Among many things, it’s the retailisation strategy that has worked in favour of IDFC First Bank since 2018, when it was merged with Capital First and V Vaidhyanathan took over from Rajiv Lall to head the bank. From 13 per cent share of retail loans ahead of the merger, the share of these loan jumped to 60 per cent in December 2020 quarter (Q3). The bank’s decision to write off unviable corporate loans and adequately provide for them where necessary, at the cost of incurring heavy losses since the merger, has immensely lifted its balance sheet.

Its only lately that the