Annual Report 2020 21

ANNUAL REPORT
2020-21 ALWAYS YOU FIRST
SET FOR GROWTH

Contents
1
CORPORATE OVERVIEW
1 Vision & Mission
2 Key Numbers
3 Our presence
4 MD & CEO’s message
12 COO’s message
14 CFO’s message
16 Investor Corner
24 Building the Brand
28 An ethical way to Growth
32 A helpful Bank during COVID-19
38 Employee Safety & Convenience
40 Ghar Ghar Ration Programme
42 Technology Initiatives
46 You Can initiative
32 COVID-19: Staying resilient.
Helping businesses and communities
50 Because YOU matter most pull through the pandemic
54 FIRST IMPACT CSR initiatives
72 Staying connected
76 Awards & Recognition
78 Board of Directors
82
STATUTORY REPORTS
82 Directors’ Report
107 Management Discussion and Analysis
126 Corporate Governance Report
155
FINANCIAL STATEMENTS
54 First Impact: Corporate

Social Responsibility
www.idfcfirstbank.com
CORPORATE OVERVIEW
STATUTORY REPORTS
Vision
To build a world class bank in India, guided by ethics
and customer first values, powered by technology,
and be a force for social good
Mission
We want to touch the lives of millions of Indians
in a positive way by providing high-quality banking products
and services to them, using contemporary technologies
Annual Report 2020-21 1

Key Numbers FY21
`1,17,127 CRORE 67%*
Funded Assets Retail Assets as a %
of Funded Assets
`45,896 CRORE 4.98%

CASA Deposits
Net Interest Margin
1,273 51.75%#
Branches & ATMs CASA Ratio
13.77% `17,808 CRORE

(` 20,808 crore including equity
(16.32% including equity
raised on April 06, 2021)
raised on April 06, 2021)
Networth
Capital Adequacy Ratio
1.86% 153%
Average Liquidity Coverage
Net NPA
Ratio for the quarter ended
March 31, 2021
`452 CRORE
Profit after Tax
Above are all standalone figures as on/for the year ended March 31, 2021
* Excluding the inorganically acquired portfolio, where the underlying assets are retail loans, the Retail contribution to the overall
Funded Assets is 63% as of March 31, 2021.
# The CASA ratio was 31.87% on March 31, 2020.
2 IDFC FIRST Bank

Growing our Footprint
CORPORATE OVERVIEW
Jammu
596 677
STATUTORY REPORTS
& Kashmir Branches ATMs
Punjab
Chandigarh
Uttarakhand
Haryana
Delhi
Assam
Rajasthan Uttar Pradesh
Meghalaya
Bihar
Jharkhand Tripura
Gujarat Madhya Pradesh West Bengal
Chhattisgarh Odisha
Maharashtra
Telangana
Goa
Andhra Pradesh
Karnataka
Puducherry
Tamil Nadu
Kerala

MD & CEO’s message
A World-class Bank
in the making
Dear Shareholders,
It is a great pleasure writing to you once again. It has
been two and a half years since the merger and during
this period, our Bank has made tremendous progress
on laying the foundation for a highly successful and
megabank of the future. I would love to explain to you what
we are truly building at our Bank. What we are building
at the core is a new age digital Bank which is agile and
highly scalable. Our pre-provisioning profits (PPOP) are
low at this stage because of our DFI background with
higher cost of legacy liabilities, coupled with the set-up
costs of a new bank, but this is getting fixed at a quick
pace because of our strong profitability on an incremental
basis.
Chances are, as a shareholder looking at quarterly
results, the underlying quality of the bank we are building
is not entirely visible at this stage to you. Because the
usual conversation from anchors are after any results are
“So, what is your exposure to Vodafone Idea? How much
more pain is yet to come on infrastructure? What is NPA
in retail because of Covid? When do you see the situation
normalizing?” If you’re an analyst, chances are that to
V Vaidyanathan the above questions you will also add “Your ROE is low.”
Managing Director and CEO I believe they are so focused on the here and now quarter
and its comparison with other established banks that the
power of incremental profitability is lost in the noise. And
the comparison is with banks who have already been
there for 20-30 years or with entities that were already
profitable when they converted to a bank. What is not
We have defined our vision as “To visible to many is the foundation that has been laid and
how quickly the picture is changing. So much so that
build a world class bank in India, when I was pushed hard on some such subject by a
guided by ethics and customer-first journalist, I responded instinctively “You ask Mr Kamath
how hard it is to convert a DFI to a commercial bank, to
values, powered by technology, and my knowledge he is the only one who has achieved this”.
be a force for social good.” We find (Refer Financial Express in Press section)
this line highly inspiring..
4 IDFC FIRST Bank

Yes, that’s right. Our Bank was created from an infrastructure (c) “….with ethics and customer-first values”: We advise
DFI which had acquired a bank license. An infrastructure our product teams to design products in such a way
CORPORATE OVERVIEW
DFI, by the nature of its business, usually borrows long term that it is meant to be sold to our “near and dear” ones.
funding from banks/ Bonds at market rates, and usually lends We make products with transparent pricing and fees.
to corporate and institutions. So the margins and profitability Working on the theme of Customer First, we came up
are low and individual exposures are large. We are carrying with many unique features as follows:
` 27,936 crore of fixed-rate liabilities at 8.66%, largely legacy,
and you can imagine the upsides when these are replaced
by low cost deposits. We advise our product teams
Thus, to understand the future potential of our Bank, you to design products in such a
should understand the true incremental profitability of our
Bank. If you want to understand this, please jump straight way that it is meant to be sold
STATUTORY REPORTS
to Section 4 (Page 9) titled “The power of incremental
profitability.”
to our “near and dear” ones.
I would now like to explain to you the vision of our Bank. • Monthly credits: We have started “monthly” credit
of interest on savings accounts, against the industry
SECTION 1. VISION OF OUR BANK: practice of Quarterly credits. So, our customers
We have defined our vision as “To build a world class bank earn “interest on interest” monthly on their savings
in India, guided by ethics and customer-first values, accounts. To the best of our knowledge, no large
powered by technology, and be a force for social good.” bank with a Universal Bank License has ever
We find this line highly inspiring and are working towards it done this.
day and night. Let me explain what each of these words in
• Low, Dynamic APR for revolvers: APR (Annual
our vision statement mean for us. Percentage Rate) on credit card revolvers has always
(a) “To Build”: To create a world class bank is an opportunity been about 3.49% per month, that’s about 42% per
few people get in their lifetimes. Our employees could annum. So if you carry forward any balances or if
get opportunities to work in “world-class” organisations, you miss your payment by mistake, you pay at 42%
but “building” one is something else. per annum for that month. And by the way, 40% of
card holders do end up paying these rates. Either
(b) “….a world-class bank”: For a country as large and customers are insensitive to APR or don’t know
diverse as India, and a country set to be world’s third about it.
largest economy by 2030, there are few “world-class”
banks in India. And when we say world-class, we mean We think about this issue differently. We were the first
banks of global scale and profitability, on the cutting- bank to set dynamic and low rates of 0.75% to 2.99%
edge of innovation, providing amazing customer service, per month, or 9% to 36% per annum, based on
highest levels of corporate governance, generate high several factors including risk rating. Check the APR
return on equity, and enjoying international respect on the credit card you have in your pocket right now,
and admiration. We aspire to be on that list, and are chances are you are paying more than our highest
passionate about building such a bank. We have already rates. If you apply, you might get a rate somewhere in
sown the seeds for such a bank. between, and chances are that you can benefit right
away. And don’t forget our many other such customer
friendly features.
For a country as large and • Cash withdrawal interest rates: If you withdraw
diverse as India, and a emergency cash from the ATM on your credit card
you normally pay ` 250 as one-time fee PLUS interest
country set to be world’s rate of 42% p.a. from Day 1 of withdrawal. We felt this
was rather high. We charge you ` 250 and charge no
third largest economy by interest till next Payment Due date. Yes, you read this
2030, there are few “world- right, no interest till next Payment Due date.
class” banks in India.

• Customer First: Where there is a misunderstanding, ropagating our vision statement: We first came up
P
our instruction to the service team is “credit the with the idea of a “seal” to capture our key themes
customer first” and fix the root cause of the issue. to share with our employees. We then debated hours
over multiple sessions about what should be on the
• No Fine Print Banking: We don’t follow fine-print
seal. After much debate, we settled in on three themes:
banking hoping customer won’t notice certain terms
Ethical Banking, Digital Banking and Social Good.
or charges. We don’t appreciate product managers
This also goes well with our vision statement.
who talk that language when designing products.
“Social-Good” is the purpose of our existence. Our
• We don’t pressurize our employees to “somehow”
business must add to larger social good. We exist to
sell high-margin products to meet fee targets. The list
serve society- urban and rural, rich and poor, salaried
of our “Customer First” features is long.
and self-employed, cities towns and villages, and
So what we are building is a bank that’s clean from manufacturing, agriculture or services.
within. If you are wondering at this stage, if strong
“Ethical” is the means we want to use in dealing with

Customer First approach and great returns for
everyone. There is no point becoming highly profitable
Shareholders is an “either-or” trade-off, please jump
if not earned the clean way.
straight to Section 4 (Page 9) on “Incremental
Profitability” where we demonstrate the power of And “Digital” is the medium we want to use. The seal
our business profitability. looks as follows:
(d) “…and technology” India is building digital highways
Aadhaar, a vast mobile network and UPI. We are
coupling these with AI ML technologies, data, cloud,
API banking and are committed to investing in the latest
technologies to continuously stay ahead. We recently
unveiled our new mobile and web app which have a
large number of unique features like Google like search
capabilities, Personal Finance Management, Pay-
to-Contacts, one click FD creation, live mutual fund
investing, risk-analyser, and so on.
(e) “….and be a force for social good” To create social
good is the purpose of our existence. For example,
apart from lending to prime segments such as prime
home loans and car loans, we have also developed
specialization in financing artisans, large medium and

small farmers, kirana shops, restaurants, automobile
spare parts, tailoring, carpentry, salons, chemists, two After much debate, we settled
wheelers, consumer durables, JLG in rural areas etc.
The purposes of financing include business expansion,
in on three themes: Ethical
cattle purchase, water and sanitation financing and so Banking, Digital Banking and
on.
We have financed over 30 million such loans till date in
Social Good. This also goes
our combined experience. We have developed unique well with our vision statement.
skills in this area with stable and high asset quality of
Gross of ~ 2% and Net NPA of ~ 1% for over ten years.
C oding the DNA: By making this seal and sharing
Similarly on the deposits, investments, insurance or
with employees, we are attempting to code the DNA of
wealth management, we can create many solutions
our employees. That’s because we are an early stage
for customers across cross section of society, that can
bank and the DNA code we build will affect the long
create great social good.
term conduct of our employees. This also becomes an
internal check and balance among employees for good
To create social good is the conduct as expected of them.
purpose of our existence.
6 IDFC FIRST Bank

We are trying to code the DNA a. Strong CASA Ratio: At the time of merger in
CORPORATE OVERVIEW
December 2018, IDFC Bank was a recently
of our employees to align with formed Bank and thus did not have much CASA,
and Capital First was an NBFC with no CASA. On
the vision and mission by merger we had CASA ratio of 8.68%. At that time
sharing the seal with them. every analyst told us that the hardest issue to fix
for you will be the liabilities side. We are happy
to report that our CASA ratio has crossed 50%.
If anything, this describes our capability to raise
SECTION 2. EXPECTATIONS AT MERGER.
deposits, a key raw material for growth.
As compared to the original estimates at the time of merger,
b.
Strong granular deposit franchise: During
we have outperformed on every front but profitability.
STATUTORY REPORTS
H1 FY21, markets were roiled, exchanges were
On profitability, we would like to share that the issues in
crashing across the globe, there was crisis at one
infrastructure and certain corporate accounts turned out to
private sector bank, and it felt the world was falling
be more than expected because of the economic cycle. This
apart. The general experience in the banking
resulted in impact on our net-worth by about ` 2,000 crore.
system was that there was a flight of deposits to
Our Bank had also sold down loans worth ` 6,448 crore to
the top large banks. I am happy to report that
ARCs prior to the merger, and non-accrual of income from
precisely during that period of COVID chaos,
these exposures additionally affected operating profit.
IDFC FIRST Bank’s granular customer deposits
I would like to share that we have substantially overcome (Balances less than or equal to ` 5 crore) grew by a
the situation because of NIM increasing to 5.5% in Q1 FY22, whopping ` 6,315 crore in Q1 FY 21 and by another
which has resulted in Core Operating Profit crossing ` 600 ` 10,565 crore in Q2 FY21! So the COVID ravaged
crore in Q1 FY22. The core premise of attaching a well quarter was our highest ever growth in granular
performing asset machine with a bank’s liability machine is deposits. Such is the confidence our customers
well intact. We believe the Bank will head towards excellent bestow on us in a COVID year, and we know it
profitability in upcoming few years and we will cover lost time. is our job to live up to their trust. We thank them
wholeheartedly.
SECTION 3: OVERALL PERFORMANCE OF OUR
Overall, during FY 20-21, our granular customer
BANK SINCE MERGER:
deposits (balances less than or equal to ` 5 crore)
1. A strong Deposit Base: grew by a whopping ` 33,788 crore, or 99% YoY.
Today 82% of our customer deposits are granular
We have always maintained that to have a strong and
customer deposits (balances less than or equal to
stable deposit base is the most important foundation for
` 5 crore) as compared to 30% at merger.
building a great bank for the future. On this count we
have achieved the following progress:
As on Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 YoY Growth
Deposits balance
` 34,267 cr ` 40,582 cr ` 51,147 cr ` 60,383 cr ` 68,055 cr 99%
upto ` 5 cr

C. New account opening continues to be strong: 4. Excellent Retail Assets model:
The deposit inflows were strong, and more than
This is the core engine of our Bank and is performing
our requirements. So, to optimize the flows, we
exceedingly well. We feel we will easily surpass the five-
reduced our savings account interest rates. I am
year guidance of ` 1,00,000 crore given at the time of
happy to share that our new account opening
merger.
continues apace. On a related note, reducing our
savings account interest rates had another positive 5. Asset Quality:
side benefit; we can now participate in prime Home
a. Corporate Accounts: We have had a few issues
loans profitably which has multiplied our market
from large corporate accounts, including a housing
opportunities.
finance company, a financial conglomerate, a
Mumbai based Toll Road company, an Odisha
Reducing our savings based power account, a telecom account and a
few other such accounts because of downturn
account interest rates cycle in infrastructure financing in India and a few
financial conglomerates going down. Barring our
had another positive exposure to the telecom account, we feel most of
side benefit; we can now the issues are behind us.
b. Infrastructure financing is a difficult business
participate in prime Home because of dependence on regulatory approvals
loans profitably which and dependence on ecosystems on which we have
limited control. We have brought down the loan
has multiplied our market outstanding to infrastructure from ` 22,710 crore at
merger to ` 10,808 crore as of March 31, 2021.
opportunities. c.
On the Corporate Banking side, we have
implemented good controls in our Bank and our
d. Reducing Concentration risk: Deposits from our Top recent portfolio performance is pristine.
20 depositors have reduced from 40.0% of customer
d. Significant reduction in the identified stressed
deposits at merger to only 7.7% as of March 31, 2021.
list: We have brought down the Identified stressed
This is a conscious risk mitigation measure. You can
asset list (Accounts that we consider stressed over
rest assured your Bank’s deposit base is diversified and
and above the declared NPA) from ` 4,138 crore as
super safe!
of March 31, 2019 to ` 2,264 crore as of March 31,
2. Maintaining strong Liquidity: 2021. (further reduced to ` 1,371 crore as of June
30, 2021).
We always maintain liquidity more than regulatory
requirements. We ended Q4 FY 21 with average LCR e. Large borrowers’ exposure As a risk mitigation
of 153%, against regulatory LCR requirement of 100%. measure, we have reduced exposure on large
Again, your Bank will never ever take chances on this borrowers. Our top 10 borrowers as a percentage
count. of total exposure has come down from 12.8% as of
December 31, 2018 to 5.9% as of March 31, 2021.
3. Maintaining strong Capital:
f. etail Assets quality: On the retail side, our asset
R
We have always been and will always keep ourselves
quality has been pristine at Gross NPA of ~ 2%,
capitalized in excess of regulatory requirements at all
Net NPA of ~ 1% for over 10 years, through stress
times. In June 20, even while COVID first wave was
tests of Demonetisation, GST implementation and
raging, we raised ` 2,000 crore of equity. Again, in April
economic slowdown. During COVID our retail NPA
21, the COVID second wave had just reared its head,
has increased, but we are confident of reverting to
we raised ` 3,000 crore of equity. We enjoy support of
our pre-COVID GNPA and Net NPA around end of
long-term investors. Our capital adequacy is strong at
FY 22, based on the strong pickup in collections
15.56% as of June 30, 2021.
post COVID second wave. We should trust our skills,
track record, experience and technology, and not
doubt ourselves just because of a pandemic that
came our way. We learn, adjust, refine, and move on.
8 IDFC FIRST Bank

g. Expanding customer segments to cover Prime point of time. So our incremental spreads on retail is
Home Loans: Because we have dropped our over 9%. We have specialization in these segments and
CORPORATE OVERVIEW
interest rates, we can sustainably pursue prime our credit costs (provisioning) are expected to be about
home loans, the safest category of loans. We 2% based on the combination of products we finance.
expect mortgage backed loans to form 40% of our Thus our incremental ROE in the retail lending business
loan book in due course. is estimated at 18-20%.
b.
Strong incremental profitability of Corporate
We expect mortgage Lending business: Here, the estimated incremental
business ROE is 14-15%.
backed loans to form But you are not yet seeing this profitability in our books
40% of our loan book because of the following two points.
STATUTORY REPORTS
in due course. c. Higher cost of ` 1,000 crore from Legacy Liabilities
currently: As of June 30, 2021, the Bank has ` 27,936

crore of liabilities at 8.66%. These are largely legacy
h. Credit Costs: Our provisions for FY 21-22 is borrowings of our DFI background, and these are the
expected to be only 2.5% of the average loan book challenges of converting a DFI into a bank. When our
which is quite reasonable by industry standards, Bank will replace this at say, 5.0%, we would save about
of which a substantial portion has already been ` 1,000 crore per year on an annuity basis compared to
taken in Q1 FY22, hence you can expect to see today. This is a legacy issue on the liability side and will
successively reduced provisions in Q2, Q3 and go away with time.
Q4 FY 22. Going forward we expect to keep our
provisions at below 2% of the average loan book.
When our bank will replace
i. 2- 1- 2 Formula: We will be targeting a 2-1-2
formula, i.e. Gross NPA of 2%, Net NPA of 1% and this at say, 5.0%, we would
provisions of 2% on funded assets on a steady
state basis. save about ` 1,000 crore per
year on an annuity basis
We will be targeting a
2-1-2 formula, i.e. Gross d.
Set up costs in retail liabilities because of
investments as we are a new bank: Since merger
NPA of 2%, Net NPA of 1% to March 31, 2021, we have invested in 390 branches,
565 ATMs, added over 12,000 employees, invested
and provisions of 2% on and upgraded our technologies, launched or scaled
funded assets up many new businesses like credit cards, Wealth
Management, Fastag, Gold loans and scaled up many
retail lending businesses like prime home loans and
digital lending, all these are essential capabilities for
SECTION 4. INCREMENTAL PROFITABILITY OF building a large bank. These investments are giving us
OUR BANK: a negative drag today but this will become profitable
Please read the following notes on our incremental profitability with scale.
to understand the profitability of our incremental business.
a. Strong incremental profitability of retail lending
business: Our incremental borrowing cost is less than
5% and incremental lending in retail is over 14% at this

e. Incremental return on capital. Now let me tell you something amazing about our progress. Please study the
following table:
Q3 FY 19 (merger quarter) Q4 FY 21 Increase %
Funded Assets ` 1,04,660 cr ` 1,17,127 cr 11.9%
Core Income (NII plus Fees) ` 1,495 cr ` 2,616 cr 75.0%
Core Operating Profit (NII plus Fees less ` 276 cr ` 460 cr 66.9%
Opex excluding trading gains)
So, when we compare the merger quarter with Q4 21, SECTION 5: OPPORTUNITY FOR SCALE UP.
the funded assets grew only 11.9% in two years, but at
For our business, the market opportunities are practically
the same time, the Core Income grew by 75% and Core
unlimited for our lines of businesses. The credit outstanding
PPOP grew by 67%. The comparison with Q1 FY22 was
in the country including banks and NBFCs is about ` 120
even better. Here the core operating profit was ` 601
lakh crore, and as per CIBIL TU report, the outstanding for
cr which was 118% over the merger quarter, while the
commercial loans > ` 50 crore is ` 54 lakh crore (Source:
book grew only 9% over the merger quarter. This tells
June’ 21 MSME report). Thus the MSME, retail and rural
you that the incrementally, the operating profit on capital
and agriculture markets alone is about ` 65 lakh crore and
is disproportionately higher as compared to incremental
growing. India is moving from unorganized to organized,
capital consumed. That’s the power of strong increase
underserved to served, and technology is supporting this
in Net Interest Margins to 5.5%. Numbers in Q4 FY 21
change. We are well positioned to ride the technology wave.
exclude impact of interest on interest reversal of ` 55
We are merely ~` 75,000 crore in this market, which is barely
crore.
above 1% of this market. For us to grow at 25% is not a big
Guidance on Profitability: deal. There is no dearth of opportunities in our great country,
and we have the necessary capabilities.
a. As explained above, our retail lending business is
immensely profitable. We expect to grow the retail book
SECTION 6. VODAFONE IDEA EXPOSURE:
by ~25% on a compounded basis for a long period
of time. This is already playing out over the last 2 ½ I would now like to directly address the concerns that some
years, as the NIM has already expanded from 1.84% of you would have about our exposure to Vodafone Idea. Let
pre-merger to 5.09% in Q4 FY 21 and further to 5.51% us hope the government supports the industry; out of the total
in Q1 FY 22. We expect profitability to increase as we dues of the company about ` 1.5 lakh crore are owed to the
expand the loan book. government itself and hence they will be keen to solve this
issue. In any case, we have a lot of growth capital by our side.
b. The negative drag because of high cost liabilities will go
We will peruse the matter through law of the land.
away as we will repay these liabilities on maturity. The
negative drag because of investments will go away with With a strong liability base consisting of low-cost CASA
scale. Thus the highly profitable retail and wholesale of 50%+, we get good margins in our business. We can
businesses will shine the results. compound our advances continuously by about 25% for a
long time, and we can build this book to any size of our desire
c. Basis the above, you can expect to see a significant
in our lifetimes, it could be ` 2 lakh crore, ` 5 lakh crore, ` 10
pickup in NII, ROA and ROE at the Bank from here on as
lakh crore or more. We will ride it through without impacting
this phenomenon plays out. We feel comfortable guiding
our long-term future and build a great bank from here.
for Return on Equity of upwards of 16% as we scale up our
business, based on our experience and incremental unit So we will keep our eyes riveted on the longer story. We have
economics. experienced such situations earlier and have always learnt
that if we have a strong and profitable model and go on for
I believe it is only matter of time, and not a question of
extended periods of time, then a one-off incident does not
whether this will happen.
dent the long-term story.
10 IDFC FIRST Bank

SECTION 7. DEALING WITH COVID
Don’t underestimate the power
CORPORATE OVERVIEW
On dealing with COVID, I would like to say that were
overwhelmed with the way our employees stayed motivated
throughout the wave one and wave two of COVID. They were
of the 50% CASA Bank with a
volunteering to run their branches and to assist customers. powerful and tested lending
We announced a one-of-a-kind Covid Care scheme for
employees by assuring them 4X their CTC, salary credit to machine attached to it.
nominee for two years, waiver of employee loan, extension
of medical insurance for family for 24 months, scholarship
I express our sincere thanks to our regulator the Reserve
up to ` 10,000 per month for two children until graduation,
Bank of India who have constantly guided us on our approach
employment for spouse on merits or skill training allowance of
and supported us throughout. Our Board members are
` 2 lakh and so on. Our employees appreciated this greatly.
STATUTORY REPORTS
eminent people with rich experience, have great intellect,
We implemented a bank wide cost-rationalization program.
highest levels of integrity and have constantly guided the
We tightened credit criteria and launched new products. We
Bank with strategic inputs and towards very high standards
accelerated our efforts for digitising the bank. Our senior
of corporate governance.
management volunteered with salary and bonus cuts to lead
austerity by example. I thank them all. I sincerely thank our customers for banking with us. I also
sincerely thank each one of our shareholders for your support
SECTION 8. CLOSING NOTE. and confidence even in trying times. Our employees are
exceptional, and I thank them all.
I believe we are on to something very special here. We have
set up a strong platform. Don’t underestimate the power of Thank you.
the 50% CASA Bank with a powerful and tested lending
machine attached to it. We are a mid-size bank today, but I
believe we have all the ingredients of becoming a mega bank V Vaidyanathan
of the future, with themes of ethics, digital, social-good and Managing Director and CEO
customer first. I also believe our best-ever three years are
coming up for us.

COO’s message
Operational Resilience
Dear Shareholders,
Fiscal 2021 was primarily influenced and shaped by
Covid-19 pandemic, resulting in uncertain lockdowns and
major disruption of both lives and livelihoods. The impact
on economic activity and normal banking operations were
immense. The regulatory and policy changes that were put in
motion to manage the implications were equally challenging
given the speed of response that was needed and had a
direct bearing on the day to day operations of the Bank.
At the same time the banking sector also witnessed dramatic
changes on the technology front. Forces such as social
collaboration, mobility, advanced analytics-based platforms
and emergence of cloud as a viable alternative enabled
new ways of servicing stakeholders. The emergence of
new players in the financial eco system offering niche
digital services further accelerated the extreme digitization
Madhivanan Balakrishnan of financial offerings thereby creating a heightened focus
Chief Operating Officer on customer engagement that stretches beyond physical
branches, call centers and relationship personnel.
These were also times when the true mettle of an organisation
along with its core operating philosophy and principles got
tested. All through the year we stayed true to the tenets of
transparent and ethical banking, whether it is our ‘Always
You First’ approach to customer service or the constant roll
Responsiveness and Trust in the out of propositions that are designed to be customer friendly
and often an industry first. The focus has always been on
Bank and its operations were offering optimal value in the most seamless way by using
strengthened by establishing a digital interfaces.
robust delivery model across all These challenging times also saw the Bank staying true to its
social objectives. The Bank continued to play an active role
areas of operations, technology in helping various sections of both urban and rural society
and customer service in an through products and programs that focused on creating
livelihoods and relief.
uninterrupted manner.
Unlike most other organisations, IDFC FIRST Bank also
had to also manage post-merger integrations and work
on increasing agility at the same time. A culture of strong
customer centricity, an agile operating model, the right
technology platforms and quick adoption of new ways of
working collaboratively with various teams, helped us keep
pace with the fast-changing environment.
12 IDFC FIRST Bank

CORPORATE OVERVIEW
Responsiveness and Trust in the Bank and its operations on driving intelligent customer engagement based on risk
were strengthened by establishing a robust delivery model and a better understanding of the business. The unique
across all areas of operations, technology and customer combination of data and digital interfaces have helped
service in an uninterrupted manner. various operating teams take real time actionable insights
thereby creating differentiated and contextual experiences.
During this period, IDFC FIRST Bank operated 900+
branches and offices including our contact centres across
the country in compliance with government & RBI guidelines The unique combination of
STATUTORY REPORTS
allowing essential banking services to be available for its
customers. We managed risk by building more than 10000+ data and digital interfaces have
remote access capabilities to help staff work from the safe
confines of their homes or nearest branches supporting helped various operating teams
critical business and regulatory activities.
take real time actionable insights
In line with our ‘Always You First’ approach the customer
service team launched a unique call back service across thereby creating differentiated
multiple languages to manage the increased demand and
facilitated quick resolution of issues by working closely and contextual experiences.
with their business and operations colleagues. Dispatch
and delivery were severely impacted due to restricted Data sciences through advanced modelling has also
movements during COVID, however, the teams managed enabled us to manage risks, understand propensity and
uninterrupted services with 97% uptime on ATMs, facilitated therefore upsell and cross-sell better. The state-of-the-art
moratorium requests, enabled restructuring and refund of API / microservices layer along with relevant data insights
ex-gratia amounts and all regular activities such as payment have also enabled the Bank to build new partnerships
and other processing core to the Bank. and offer innovative propositions with pioneering business
This financial year also saw the Bank starting the process of models. We also ran programs to streamline services for
building a robust technology platform that was reasonably both customers and employees along with system upgrades
open and secure. Building a modern technology stack and implementation of advanced technology to facilitate
that could help the Bank take advantage of evolving digital scalability and reliability. Continuous enhancement of CRM
technologies and be a significant enabler to business was capabilities and introduction of Robotic Process Automation
a key priority. This involved working on componentised core helped our employees to handle their responsibilities more
banking modules, an API factory, and a comprehensive data productively.
platform that can support a wide variety of use cases. The events that continue to unfold are creating a new normal
The Bank’s differentiated digital platform is among the most in which change will be the only constant. This has only
comprehensive and customer friendly platform and will made our resolve to building an operationally resilient and a
provide us with the right lever to cater to the significant surge responsive organisation stronger.
in usage of digital services across all segments of customers With best wishes
thereby creating meaningful growth opportunities.
The development of a new age data lake / mart has resulted Madhivanan Balakrishnan
in the evolution of a strong data analytics practice that works Chief Operating Officer

CFO’s message
Strong Capital and

Liquidity Position
Dear Shareholders,
It is my great pleasure writing to all of you. I had joined the
Bank in March 2020, and COVID-19 struck us within 20 days
leading to house arrest as severe lockdowns were imposed
throughout the country. However, times were such that it
was action right from the word “go”. Furthermore, there were
concerns which emerged around a large private sector bank.
We were very clear that we need to quickly raise capital as an
insurance against COVID-19, and also to fund future growth
opportunities once things normalise. We conducted investor
meetings and quickly mobilised ` 2,000 crore through a
preferential allotment.
I’m happy to share that we managed to maintain liquidity
level extremely well throughout the year. We continued to
get strong customer deposits during the period. In the initial
stage, we used the strong retail customer deposit flows to
pay off our large bulky Corporate Deposits and Certificate
Sudhanshu Jain
of Deposits. However, when customer inflows continued
Chief Financial Officer & Head Corporate Centre
beyond our needs, we realised that such excess liquidity was
a drain on our P&L. Thus, we brought down the interest rates
to optimise the level of funds at the Bank. The reduction of
savings account interest rates has made the bank extremely
competitive in terms of cost of funds, and this has improved
our net interest margins and profitability. This has also enabled
the Bank to access certain additional and new segments of
The reduction of savings account credit markets focusing on better quality of customers in
select segments.
interest rates has made the Bank
We also undertook focused cost rationalisation efforts as we
extremely competitive in terms of cost were aware that our income would come down because of
of funds. This has also enabled the sharp slowdown of economic activity due to the lockdown. We
conducted regular drills on cost rationalisation at the bank. We
bank to access certain additional and gave cost rationalisation targets to various business verticals
new segments of credit markets. and supported their work with direction and supervision
from the CFO office to all the business verticals. Some of the
14 IDFC FIRST Bank

CORPORATE OVERVIEW
measures included slowdown in branch expansion, rental
We have already raised ` 3,000
STATUTORY REPORTS
renegotiation, reworking plans for hiring, renegotiating pay-
outs to various vendors and so on. This was a pan-bank
exercise with complete support from across the organisation crore of fresh equity capital in
and yielded us excellent results.
April 2021 to take our capital
We have reported profits for five quarters in a row. Our core
pre-provisioning operating profit excluding treasury income adequacy more than 15%.
has grown healthily and can absorb normalised credit losses
as required. that on an incremental basis we are very careful and prudent
about our approach towards underwriting. We evaluate the
risk-reward relationship continuously in order to ensure we
Our core pre-provisioning
take a balanced approach towards growth. We treat capital
operating profit excluding as a precious commodity and treat it with great respect. We
have already raised ` 3,000 crore of fresh equity capital in
treasury income has grown April 2021 to take our capital adequacy more than 15%. This
was the maiden QIP done in the Bank. You will continue to
healthily and can absorb see this approach towards optimal capital utilization from us
normalised credit losses going forward.
This year as per revised regulations from the regulator, we
as required are required to have a joint statutory auditor. As you know,
the appointment of a statutory auditor requires approval of
As the CFO, one of the key responsibilities is allocation of the shareholders. We took some time identifying the second
capital. We are consciously observing and evaluating the statutory auditor and sought regulatory approval. Hence, the
capital consumed by each business and the potential returns AGM this year is being held later than last year, but we expect
from these businesses. I’m happy to share that during the last to have early AGMs going forward.
two years since merger quarter, while our loan book grew by I would like the thank all the shareholders once again for their
11.9%, our core income grew by 75%. We could achieve this continued support and confidence in us.
because we utilise the capital well and increased margins on
our business. We lost about ` 2,000 crores of equity capital
because of charge offs and provisions on legacy corporate Sudhanshu Jain
loans during the last two years, but I would like to assure you Chief Financial Officer & Head Corporate Centre

Investor Corner
Proactive and Transparent

Communication
Dear Shareholders,
I would like to start this note with sincere thanks to all the
shareholders of the Bank for their continued support,
engagement and confidence in us.
Post the merger, our Bank has made significant progress
across all parameters of business including growth of
deposits, growth of retail loan book, margins and core
operating profits.
In the first few quarters after the merger we faced issues
regarding certain identified legacy wholesale loans. Our
profitability was also affected because we had to stop
accruing income on such loans and take incremental
provisions on them. I’m happy to share that during this entire
period, we have been transparent with the market. Our investor
presentation is detailed with our background, trends across
various business and financial parameters, and detailed
Saptarshi Bapari breakup of our assets and liabilities. Apart from disclosing
Head-Investor Relations gross and net NPA as is required, we proactively identify and
disclose the assets that are not yet NPA but stressed as per
management assessment. We even disclose the specific
provisions taken against each one of them individually and
thus stay very straight and transparent with the street.
Our investors have always supported us and appreciated
the level of corporate governance and disclosures in the
Post the merger, our Bank has Bank. On December 17, 2018, a day before the merger
between erstwhile IDFC Bank and erstwhile Capital First was
made significant progress across consummated, our closing stock price was at ` 39.35. After
all parameters of business. the merger, the Bank incurred net losses for five quarters in
a row, primarily for the additional provisions needed to be
Our investors have always created on certain legacy wholesale assets. Yet our stock
price remained stable at around ` 40-45 throughout this
supported us and appreciated period, which represents the confidence the markets had in
our level of corporate governance the transparency and strength of our business model.
and disclosures. During the initial phase of the COVID-19 pandemic, our
stock price came down to around ` 19 but our key business
performance indicators continued to improve. Just as the
markets kept confidence in us, equally, our customers kept
confidence in us even during COVID-19. Our customer
deposits continued to grow consistently even throughout
the pandemic. During the latter half of the last financial
year, there was a strong recovery in the business conditions
which helped the Bank to get back to the pre-COVID levels
in certain parameters like disbursal run rate and collection
16 IDFC FIRST Bank

CORPORATE OVERVIEW
efficiency. Along with the deposit growth, the retail loan government will solve the problem to keep this a competitive
growth, improvement in Net Interest Margin also drove the telecom market, however irrespective of the outcome, we are
Bank to continue on the profitability trajectory even during already prepared, and the Bank has strong capital buffers
this challenging time. In fact, our stock price rose beyond to deal with the situation. Our core business model is very
` 60 post the COVID-19 first wave, based on our steady and strong, our core profitability drivers are performing well and
improved performance and our transparent disclosures. we will continue on our growth journey. We are confident that
with strong foundation of a good business model, growth
I am proud to share that despite adverse conditions for over
opportunities, strong corporate governance, ethics and
two years, our price to book increased from 0.91x, just before
transparency, we will continue to do well in the future.
the merger, to a high of 2.00x in February 2021. We thank the
STATUTORY REPORTS
shareholders for such confidence in us.
In middle of February 2021, we decided to raise ` 3,000 I am proud to share that despite
crores of equity for growth capital as we could see significant
opportunities for growth ahead of us. The Bank convened
adverse conditions for over
a special Board Meeting on February 18, 2021 for equity two years, our price to book
fund raising with a plan to complete the entire process. We
carried out all the necessary steps in terms of the regulatory increased from 0.91x, just
processes, documentation as well as book building initiatives
under a tight project plan. With COVID-19 still looming on before the merger, to a high
the horizon with the second wave, it was quite a challenge of 2.00x in February 2021. We
for the team to carry out the necessary activities with a lot of
dependence on the virtual meetings and coordination, across thank the shareholders for such
different time zones. In the meantime, the stock price zoomed
ahead and touched a closing high of ` 67.25 in the second confidence in us.
week of March 2021 which was higher than the pre-COVID
stock price level and as a result, price to book increased to As we speak, we are recovering from the second wave of the
2.16x. COVID-19 pandemic in India which had its worst effect on the
As we were getting quite close to the issue in the third overall population and in general the economy during April-
week of March 2021, the stock price came down with the May 2021. Post June-2021, the economy has again revived
onset of second wave of the pandemic. Thus, we were in a and the business parameters have been improving gradually.
situation where the market price was lesser than the SEBI We feel that we will witness a sharp recovery in the country
mandated price for the equity raise through QIP. Despite during the second half of the financial year and the Bank is in
the situation, marquee global and domestic investors, a very good position to capitalize on that with the capabilities
participated in our issue and finally we raised ` 3,000 crore including digital and product innovations, efficient processes,
of fresh equity capital through QIP route at ` 57.30 per share strength of deposit base, high liquidity and strong capital
as the process got completed on April 6, 2021. 69% of the adequacy levels.
issue was subscribed by FIIs. The successful competition of We are committed to to creating value for our shareholders
the equity fund raising through QIP in such challenging time and we are confident that in the medium to long run our
while the nation was battling with the COVID-19 second wave, performance will reflect that and it will be appreciated. We
showcases the strength, capabilities and commitment of the are encouraged with the response of the shareholders for
management which was appreciated by the investors. I would performance over the last 24 months, barring only this issue
like to specifically thank all the investors who participated of exposure to Vodafone Idea which has significantly affected
in this round of fund raising. My sincere gratitude goes to our stock price in recent time. We hope that clarity on this
our esteemed Members of the Board for their support and matter emerges soon.
guidance. With the additional capital added and calculated
on the reported numbers as of March 31, 2021, our revised I would like to thank all the shareholders once again for their
capital adequacy moved to 16.32%. continued support and confidence in us, even during this
challenging time.
We’re happy to share with you that the Bank is doing
wonderfully well on all core building blocks. However, after
the letter from the Vodafone Idea Chairman addressed to the Saptarshi Bapari
Government of India came to light in early August 2021, our Head-Investor Relations
stock has continuously been under pressure and has come
down sharply to early 40s. We do hope and believe that the

Press clippings
In the News
Financial Express, August 6, 2021
18 IDFC FIRST Bank

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
19
Annual Report 2020-21
Press clippings
Economic Times, May 10, 2021
20 IDFC FIRST Bank

21
Mint, January 19, 2021
Press clippings
Economic Times, July 19, 2021
“While the digital segment has grown multifold, it’s become easier for fraudsters to take advantage of lack of less tech-savvy
consumers; for us it’s a fine balance between creating a great user experience versus compliance and authentication.” said
Mr. Madhivanan Balakrishnan, COO, IDFC FIRST Bank
The Hill Times, March 13, 2021
‘Honour FIRST’ is an outcome of our passion to serve the Armed Forces in a very special way by customising banking
solutions to the needs of its personnel” said Amit Kumar, Head, Retil Liabilities, IDFC FIRST Bank
22 IDFC FIRST Bank

CORPORATE OVERVIEW
Echo of India, August 13, 2021
STATUTORY REPORTS
“This is indeed a proud moment for us. The association couldn’t have come at a better time as the Indian Navy commemorates
historic victory in the 1971 war,” said Amit Kumar, Head, Retail Liabilities, IDFC FIRST Bank
Mint, July 19, 2021

IDFC First Bank had recently launched a monthly interest
credit facility on all savings bank accounts (SBAs). From 1
July, interest on SBAs will be credited on a monthly basis.
As per Reserve Bank of India (RBI) regulations, banks
credit interest to accounts of depositors every quarter,
although they are free to credit it on a monthly basis.
In case of fixed deposits, various frequencies, including
monthly, quarterly, annual and cumulative are offered by
banks. But for savings accounts, banks have not historically
given this flexibility.
Monthly credit of interest helps depositors get access to
the interest amount early.
“As IDFC First Bank has always tried to introduce innovative
solutions for its customers, this is another such benefit.
Crediting interest every month will help savings account
holders to earn interest on interest if they continue to keep
the interest earned in such accounts. Also, customers
can withdraw the interest money if they wish to to meet
their expenses, EMIs, etc,” said Amit Kumar, head, retail
liabilities, IDFC First Bank.

Building the Brand
A Banking Revolution
is on its Way
We set new benchmarks with our branding campaigns in FY21,
which clearly showed how we intend to redefine the way India banks.
FY21 continued to be a year of building the foundation of our Bank. A year of non-stop, high octane action.
We continue to strengthen our foundation, built with Trust, Integrity, Transparency, while driving up Innovation
and Digital Transformation by several notches.
SELFLESS TREE
In 2020, we launched the Bank’s first brand campaign through
a film starring our first brand ambassador, Mr. Amitabh
Bachchan – a man of great distinction who truly embodies
our principles of trust and integrity. In the film, Mr. Bachchan
is seen talking about the life lessons he learnt from his father,
who emphasised the importance of a strong foundation.
Through the analogy of a ‘Selfless Tree’, that showcases the
personality of IDFC FIRST Bank, the film beautifully conveys
our endeavour of always putting our customers first.
Our first brand campaign has struck a chord and has etched
itself in the minds of customers. Other than making a big
television debut, the campaign was screened at partner
outlets, bank branches, and social media. It will be one of
our most memorable campaigns.
24 IDFC FIRST Bank

CORPORATE OVERVIEW
TREEPUBLIC 2.0
We launched the second edition of our green initiative, which
had received overwhelming support last year by encouraging
our customers to put ‘Nature first’. On the occasion of the
Bank’s second anniversary, we tied up with an NGO and
pledged to plant a sapling for every Savings Account opened
between December 18, 2020 and January 26, 2021.
Besides planting trees, we also encouraged our staff across
STATUTORY REPORTS
our branches in urban and rural India to explore their green
thumbs through a contest. Employees had to decorate their
branch with all things green. We took to the social media to
spread the good word and designed innovative hoardings
made with plants to create a buzz. This was backed by a
radio campaign and ended with top three displays winning
awards. On the occasion, we also ran a special air-index
check that let customers know the air quality in their city.
The other green campaign undertaken during the year was
the Environment FIRST Heroes, where we celebrated those
who put nature first.
In all, we planted over 1 lakh
trees during the year. A great
way to celebrate, we think.
WEBSITE LAUNCH
The year also saw the launch of our new website with a fresh
new look that showcases the benefits of banking with us
and our offerings in a clear and succinct manner. We want
to make the customer experience simple and easy, and the
new website is a big step in that direction.

Building the Brand
OUR LATEST AD CAMPAIGN
26 IDFC FIRST Bank

27
Set for Growth
An Ethical Way to Growth

Ethics form the core of our Bank’s culture.
We strive to abide by the highest ethical standards in all our dealings with our customers, communities, employees and
stakeholders. This simply means that we are committed to doing what is right for them, even if it were contrary to conventional
industry practices. For instance, we make a conscious effort to make every relevant information available to our customers
so as to enable them to make informed financial choices. When we fall short of expectations, we acknowledge and correct
course. We do not push products or press hidden charges. For us, it means living up to the trust that our customers place
in us.
Ethics and transparency anchor every product, service, interaction and decision at the Bank. Here are a few of them:
MONTHLY INTEREST CREDIT: FINANCIAL INFORMATION HUMAN RESOURCES

The Bank offers monthly interest Highest degree of transparency The Bank has honoured all its
credit on savings account balances is maintained in all interactions commitments made to around
as against the industry practice of with customers, investors and 3,500 new hires even at the height
quarterly interest credit. Interest is stakeholders. Apart from regulatory of the pandemic. These job offers
credited on the 1st of every month. So disclosures reported on NPA, were rolled out before the pandemic
in the following month, customers earn as a part of good governance set in and some of the roles were
interest on the interest of the previous and transparency, the Bank even redundant during the pandemic.
month. This enables customers to earn provides a list of stressed assets, However, the Bank honoured every
more with the power of compounding together with their corresponding single offer made – choosing instead
every month. In addition to monthly outstanding and provision figures, to re-allocate these resources to new
compounding, customers also get and puts these in public domain roles. Over time as the economy
higher interest rates on their savings through investor presentations revived, all new hires were given
account balances. every quarter regular positions.
28 IDFC FIRST Bank

CORPORATE OVERVIEW
SAVINGS ACCOUNTS
WEALTH MANAGEMENT
• Digitised and demo cratised wealth
management platform available to all customer
Unlimited free ATM Transactions segments
Our Regular Savings Account with a minimum monthly balance
of ` 25,000 comes with unlimited ATM transactions and • Customers can choose to opt for an investment
customers can transact at any ATM country free of cost, as in line with their goals and risk profile without
STATUTORY REPORTS
against industry practice of charging beyond 5 transactions. human intervention
• Employees are trained not to push products
that do not suit customer’s financial needs
Industry-best Debit card

The Bank offers free debit card and does not charge for
replacement when the card is lost. A debit card when replaced
is usually charged by industry. For savings accounts with FOREX TRANSACTIONS
minimum monthly balance of ` 25,000, the Bank also offers
• Exchange rate is displayed and guaranteed
a Personal Accident Insurance cover of ` 35 lakh and an air
even if transaction is delayed
accident insurance cover of ` 1 crore. In the event of loss of
card, customers are protected for upto ` 6 lakh. These features • Forex rate is lower than that in industry
are higher than the industry, and give the highest comfort to our
customers. Our debit card also offers one of the highest POS
purchase and ATM withdrawal limit.
CORPORATE SALARY ACCOUNTS:

Interest is paid on Employee Reimbursement
Fixed Deposits for senior citizens and kids Accounts as against industry practice of treating
When our customers, who happen to be senior citizens and these as current accounts without interest on
kids, close Fixed Deposits ahead of maturity, the Bank does balances
not levy any penalty, as against common practice of penalties
on closure of FDs.
POS TRANSACTIONS
No charges on cheque books • Among the highest POS limit in the industry
The Bank does not charge customers for issuance of cheque
• Charges are mentioned upfront
books, cancellation or stop payment of cheques. Also, issuance
of Demand Drafts, cancellation and revalidation of DDs are not • Uniform and transparent pricing across all cards
charged as against common practice of charging for these
services.
Digital Transactions
All digital services, including electronic funds transfers i.e.
NEFT, RTGS, IMPS, issuance of foreign currency draft are
also free for our customers. This is common in the industry
to charge for digital transactions.

Set for Growth
IDFC FIRST BANK CREDIT CARDS – DIGITAL-FIRST AND SUPER REWARDING

Amidst a pandemic-struck, homebound digital world, we launched IDFC FIRST Bank Credit Cards – a milestone in our
retail roadmap.
Simple, straight and transparent, the IDFC FIRST Bank Credit Card is India’s first credit card with dynamic interest
rates and several other industry-best privileges. The lifetime-free credit card offers personalised Annual Percentage
Rate (APR) in the range of 9-36% and is linked to the cardholder’s credit scores. The APR is among the lowest in the
industry, thus benefiting customers with good credit history. The credit card suite also packs in an innovative rewards
proposition that resonates with cardholders.
FIRST Select:
Life’s luxuries with a premium new age credit card
FIRST Classic:
Exceptional value and classic features
FIRST Millennia: FIRST Wealth:

Uber cool looks and slick features designed Card with all premium features, best for international
to create a buzz around you travellers
Key Differentiators
Credit cards as an industry has been perceived by consumers • Complicated reward schemes with a long list of T&Cs,
as one fraught with multiple barriers and legacy systems expiry and clunky redemption
and processes. We worked on this premise to remove all the
• Expensive cash advances, attracting interest from Day 1
friction points and barriers of:
of withdrawal
• Multiple fees and non-transparent charges
We worked towards resolving these friction points and
• Static and super-high interest rates on revolving credit creating an industry-first proposition with best-in-class
(usually upwards of 42%) digital-first customer experience.
30 IDFC FIRST Bank

CORPORATE OVERVIEW
INDUSTRY IDFC FIRST CREDIT CARDS BENEFIT FOR CONSUMER
Lifetime Free (No Annual Fees

Usually multiple fees (Annual/ Over ever/ Nil Over Limit Fees up to Easy on the pocket
Limit) and other charges 10% over limit)
Usually static and high interest Dynamic Interest Rate

rates (36% to 48% APR) (9% to 36% APR) Affordable Credit
STATUTORY REPORTS
Often difficult redemption processes Up to 10X reward points.
with defined catalogues and Terms Unlimited earn. No expiry. Super-Rewarding
and Conditions on expiry In-store and online redemption
Interest on ATM cash Interest-Free Cash Withdrawal (Up

withdrawal from Day 1 to 48 days – similar to purchases) Emergency Cash
APPROACH TO THE CREDIT CARD BUSINESS
We made a set of strategic choices to execute our vision Hyper-personalised Customer Experience
through a robust operating plan.
• Our customer engagement and communication hooks will
Data-based Strategy be hyper-personalised, using AI/ML algorithms drawing
from behavioural and real-time data to create highly
• Developed in-house predictive online scoring models for
contextual communication to supply relevant content,
qualification and decisioning of credit card applications
product and service information to every user
from new-to-bank as well as existing customers
We are Already Seeing High Acceptability
• Created a risk and affluence-based pricing model,
which enables tailored offering for every individual The Credit Card business was launched in mid-January
cardholder, right from limit assignment to APR 2021 for existing customers of the Bank. By March 31, 2021,
we had issued close to 1.5 lakh credit cards and the Bank
Leveraging Digital
entered the industry’s Top 5 list based on incremental cards
• Our mobile-first and fully digital onboarding journey issuance.
offers instant gratification and usage
150
• Powered by a comprehensive, seamless, WOW
experience to our applicants. Rejections, if any, are 104
communicated upfront on application 43 57 47 46
• Leveraged our existing internal channels and customer
touch-points to upsell/cross-sell by building seamless,
multi-channel customer journeys, both through web and Jan-21 Feb-21 Mar-21
mobile App New Issuance (‘000) Cards in Force (‘000)

COVID-19
A helpful bank
during COVID-19
We call ourselves a customer-first bank. COVID-19 was the moment to live up to the statement. In view of the COVID-19
relief policy implemented by the RBI, we facilitated Moratorium 1.0, Moratorium 2.0, Restructuring 1.0, ECLGS, and
Ex-gratia Framework seamlessly. Keeping the branches open, reaching out to customers and providing them
moratorium was just the start. At every step of the way, we made sure that each process was made extra friendly
for customers. We did all it takes to serve our customers with speed and efficiency, to reach out to customers who
were in distress and to help others use digital tools and services so that they could bank from the safe confines of
home and avoid visiting our outlets. As an essential service, we did our best to reach out to our customers and our
employees, and create solutions to ensure ease and support as they transitioned to the new normal.
32 IDFC FIRST Bank

CORPORATE OVERVIEW
ENSURING CUSTOMER CONVENIENCE
MORATORIUM FACILITATED DIGITAL LOAN RESTRUCTURING

DIGITALLY We did not want customers who were applying
for loan restructuring to be burdened with
When COVID struck, the RBI came out with
paperwork or go the branch for avail the
norms for moratorium. Customers were required
facility. We gave them an option of coming to
to apply for one. But we realized that in the
the website, giving their loan account number,
STATUTORY REPORTS
context of COVID, customers would find it
dragging and dropping information, offering
difficult to access us and go through paper
them an easy and intuitive experience and
work. So we thought of a novel way of providing
securing loan restructuring in a simple manner.
moratorium benefit. We created a digital
This is how we stayed customer-first.
interface for customers to apply for moratorium
on our website, provide the reason for it and lo
and behold, it was done. This way, we put our
customer first philosophy in action in a crisis.
LOAN DISBURSAL DURING RURAL CUSTOMERS GIVEN
THE PANDEMIC MORATORIUM SUO MOTO
We did not stop our disbursal of loans during We realized that not all rural customers may be
the pandemic. We enabled customers to secure digitally literate or easily apply for moratorium.
loans both digitally and through our doorstep Some of them may not even be able to access
banking services. our website. For them, if we had insisted on
a written document, most of them would be
delinquent with the bureaus. We provided
moratorium suo moto to them, making all of
them eligible for it.
VIDEO KYC ATM NETWORK

Bank implemented Video KYC for The Bank added ATMs and
convenience of its customers kept uptime high

COVID-19
Our branches were kept operational to serve the financial needs of our customers
Our Customer Service Centres were available 24x7 and provided uninterrupted and seamless services through multiple
lockdowns. We also launched a new customer service centre at Noida as a disaster recovery site.
34 IDFC FIRST Bank

CORPORATE OVERVIEW
Customers who were behind schedule for loan repayments, were dealt with sensitivity. People who asked for moratorium
were given the benefit as long as they met regulatory norms. A simple moratorium calculator was developed for customers
to give them a complete view of the impact of moratorium on their loans and enable them to take informed decisions.
Moratorium portal for Customers to make moratorium applications simpler
KEY HIGHLIGHTS
STATUTORY REPORTS
The Bank provided easy
digital means for customers
to avail moratorium
Supports 11 languages with

real-time co-browsing support
Self serve and
Assisted mode available
Restructuring portal for customer assistance
KEY HIGHLIGHTS
The Bank provided easy

digital means for customers
to avail restructuring
Automated decisioning
without human interventions
New loan schedule

applicable from next due date

COVID-19
CUSTOMER SUPPORT INITIATIVES DURING THE PANDEMIC
Mobile ATMs were deployed for safe & convenient banking – 1100 + societies served Health and wellness camps were held for customers at various locations across
the country.
10,000+ Business Correspondents provided last mile financial services to customers Micro ATM led services were offered for senior citizens and customers who were
across 600+ districts in 23 states home bound to enable them to transact from the comfort of their homes
36 IDFC FIRST Bank

CORPORATE OVERVIEW
STATUTORY REPORTS
Helped customers with santisation services Masks and COVID safety kits were distributed to customers who visited branches
We felicitated doctors and COVID warriors to thank them for their service to the country Installed automated sanitizers in housing societies within branch catchment
The above pictures represent the Bank’s actual customers and activities

COVID-19
Employee Safety
and Convenience
While ensuring the safety and well-being of our employees, we also ensured that they could work seamlessly from home
by implementing technology that could sustain critical business activities from loan disbursals to client consultation.
Some of the steps undertaken by us in guaranteeing employee safety:
The Bank conducted Government guidelines and policies
24 PAN-INDIA DRIVES ensured in Bank’s branches with
to rebuild and grow 100% COMPLIANCE
To ensure safe operations, For staff to work from the safety

undertook sanitisation in of homes, activated
900+ OFFICES 10,000+ NEW REMOTE

And Bank branches ACCESS CAPABILITIES
Facilitated the vaccination of Ensured work-from-home
89% EMPLOYEES facility for
within office premises or at hospitals 50% STAFF
38 IDFC FIRST Bank

CORPORATE OVERVIEW
MESSAGE FROM MD & CEO TO EMPLOYEES
ON THE BANK’S COVID CARE SCHEME
We hold our employees dear and wish there was no case of COVID Extension of Mediclaim insurance for the family for 24 months:
death at the bank. But unfortunately the world is having casualties. Currently the employee’s dependents are covered under our group
Hence to assist our employee/ family in the event of any unfortunate Mediclaim insurance policy. The policy will continue to be effective
death, we are announcing a comprehensive “COVID Assistance, for 24 months at the same base amount as that applicable to the
Rehabilitation and Relief scheme” (COVID CARE) as per details deceased employee.
later in the note.
Scholarship up to INR 10,000 monthly to 2 children: Post 24
STATUTORY REPORTS
This policy will be implemented with retrospective effect for any months (i.e. after the ex-gratia monthly salary ceases), the Bank will
COVID related death, (i.e. this will cover even cases prior to this provide monthly scholarship of INR 10,000/- (INR Ten Thousand
communication) Only) for up to 2 children till their graduation.
This scheme is applicable to all permanent employees of IDFC Employment to Spouse or Skill Training allowance for INR 2
FIRST Bank. Lakh: The spouse of the deceased employee will be provided an
opportunity for a job in the bank on merits. Should they not qualify
These benefits will be applicable for COVID deaths till 31st December
or not avail of the employment opportunity, the bank will provide
2021 or as extended by the bank.
one-time skill training for INR 2 Lakh to the spouse for learning new
The benefits 1-10 under this scheme will be provided to the skills/knowledge. This can be availed within next 12 months from
dependents of the deceased employee. the time of the death.
Benefit number 11 will be made available to employees in case they Funeral Expense up to INR 30,000: The Bank will support the
themselves are not impacted by COVID but some member in the family in managing one-time funeral expense of the deceased
family is impacted. employee up to INR 30,000. (INR Thirty Thousand only).
As part of the COVID CARE scheme, in addition to any statutory Relocation Assistance up to INR 50,000: In case, the surviving
benefits (Employee Deposit Linked Insurance Scheme - EDLI up family wants to relocate to any other city in India; we will provide
to INR 7 Lakh, Provident Funds, Gratuity), the Bank will provide relocation support expense up to INR 50,000/- (INR Fifty Thousand
additional benefits to the nominee of the deceased employee; only) to employee’s dependent. This can be availed within next 12
with an objective to help the families navigate the difficult times as months from the time of the death.
detailed below:
Pro-rata Bonus Payout: Normally bonus is payable only for those
COVID CARE Relief Programme Details: on the rolls of the Bank as of the date of annual bonus payout. Under
the COVID-CARE scheme, the nominee of the employee will receive
Group Term Life of 4X TFP: We provide one of highest insurance
the prorated annual bonus for the tenure the employee has served
coverage in the system, which is 4 times of Total Fixed Pay (TFP) or
the organization in the current performance period, i.e. starting April
INR 30 Lakh, whichever is higher, under our Group Term Life plan.
1, 2021, based on last year’s performance rating.
This policy is applicable for any normal death situation, and also
covers COVID incidents. Personalized Financial Advisory: To help the family plan their
future, on the family’s request, we will provide personalized financial
Salary credits to nominee for 2 years: We will continue to pay
advisory service that helps the family plan their financial future.
salary (excluding retirals) as ex-gratia to the nominee for full 24
months, after death. Salary Advance up to INR 3 Lakh at 0%: In case employees don’t
have COVID themselves, but some member of the employee’s
Waiver of Employee Loan: We will waive off all IDFC FIRST Bank
family (as per Mediclaim Beneficiary List) is infected, we understand
employee loans (such as Car Loan, Two-Wheeler loan, Personal
there may be incidental expenses or expenses of treatment that
Loan, etc.) which are not covered through a personal life insurance
could end up being more than cover available under Mediclaim.
of the employee. For an employee Home loan, which happens
Thus the employee would need additional support to manage the
to be uninsured, we will waive off INR 25 Lakh, and the residual
hospitalization expense (in addition to the Mediclaim benefit). For
will be recovered through the EMI. In order to make it easy for the
this purpose, we will provide employees up to ` 3 Lakh as salary
employee’s nominee to honour the non-waived component, we will
advance at 0% rate of interest and recover the same in equal
credit the ex-gratia salary for the next two years, and deduct the EMI
installments through monthly salary during the next 24 months.
from the salary credits paid to the nominee as per point 2. This is
applicable for death incidents until June 30, 2021. Between now to With warm regards,
June 30, 2021, we request you to please ensure your loan amount V Vaidyanathan
is insured. Managing Director and CEO

COVID-19
Employee Funded
Customer First Programme
GHAR GHAR RATION – EMPLOYEE-FUNDED
COVID CUSTOMER CARE PROGRAMME
During the first wave, our employees contributed one day’s
salary to PM CARES Fund. No sooner had we settled from first
wave of COVID-19 and taken a sigh of relief that the second
wave hit us and it affected rural markets acutely. Again all the
departments joined hands along with our top management to
tackle the second wave of COVID-19 and provide relief to rural
population who had taken a huge hit.
This time around the team brainstormed and came up with Ration distribution at Karnataka by IDFC FIRST Bank Branch staff
a programme to help a large number of poor customers that
were directly affected by second wave of COVID-19. We
realized that they needed livelihood financing and support
as their livelihoods were taken away in a flash. We decided
to support our customers directly through the one-day salary It was very nice of IDFC FIRST Bank to distribute ration kits
contributions given by our employee’s salary. Led by our for people in need during the COVID crisis. Usually other
CEO who contributed one month’s salary to the effort, many banks even if they make profits they don’t do anything for
employees contributed large discretionary amounts over and people in need. I am also very happy that they sourced their
above one day’s salary requested by them. ration kits from small kirana owners like me , thereby giving
us an opportunity to earn during these difficult times.
After much deliberation, we decided to give our customers a
ration box with food staples to help them survive the lockdown Mr. Dinesh Gupta,
for a month. New Devi stores , Chiklamangalur, Karnataka
Within just three days, with repeated iterations, we worked out how
our 50,000 customers will be reached directly by our employees A lot of our customers were affected by COVID and they
throughout the value chain. We are proud that even delinquent could not go out and shop due to the lockdown. A lot of them
customers were eligible and availed of this programme in large personally came to us , telling us how they were finding it
numbers. Our employees were engaged throughout the value difficult to have a square meal a day . Thus all of us at the bank
chain, right from sourcing the ration box to delivering it to our and branch came up with this idea of personally delivering
rural customers. More than 3500 employees were involved in this ration kits to their doorstep. All of them appreciated our efforts
process and were extremely thrilled to be serving those in need. and it personally made me feel proud to be working this bank.
In urban locations, in lieu of the ration kit, we will provide the Ms. Mounica,
same support, but through a pre-paid SODEXO card worth GRO, Madhavaram Branch , Chennai , Tamil Nadu , IDFC FIRST Bank
` 1800 to the affected customers, with which they can acquire
essential supplies.
50,000
Customers are
recipients of
employee-funded
Ghar-Ghar Ration
programme
Ration distribution at Madhya Pradesh by IDFC FIRST Bank Branch staff
40 IDFC FIRST Bank

CORPORATE OVERVIEW
MESSAGE FROM MD & CEO TO EMPLOYEES ON GHAR GHAR RATION
Dear Colleagues,
The second wave of COVID has struck havoc in the country. As you know, a large number of our customers belong
to a lower income profile and, unfortunately, they have been affected either by loss of jobs, livelihood or even death.
We empathize with them in their hour of difficulty. While we cannot solve all their problems, we want to make an effort
STATUTORY REPORTS
to support them to the extent we can.
In this spirit, we have come up with a unique Employee led Customer FIRST COVID Care Program called “Ghar
Ghar Ration”. As you know we are a Customer First Bank, and this is the moment to stand up and support our
affected customers in our personal capacities.
All of you have been highly generous in contributing one day’s salary, with which we have created the above program.
Under the “Ghar Ghar Ration” Employee led Customer FIRST COVID Care Program, we will supply 50,000
customers with a ration kit containing essentials including 10 kg rice/ atta, 2 kg dal, 1 kg sugar and salt, 1 kg cooking
oil, 5 packets of assorted spices, tea and biscuits - which should hopefully support a small family for a period of
one month.
In rural locations, our local staff will nominate affected customers, procure the ration kit described above from the
local market, and directly deliver to the affected customers in person at their homes. This will support the local rural
economies and also support our customers in the process. In urban locations, in lieu of the ration kit, we will provide
the same support, but through a pre-paid SODEXO card worth ` 1800 to the affected customers, with which they
can acquire essential supplies.
Even delinquent customers of our Bank are eligible.
The program will be completed before 30th June 2021.
Please fill out this nomination form here and help us identify customers in dire need. The deadline for nomination
submission is 12 June 2021.
Each of you can be proud that this is a unique program where our employees have pitched in to support our
customers in need with your personal resources. It also symbolizes that we revere our customers and this is our
moment to express it. We are proud all of you who participated in this program.
With warm regards,
V Vaidyanathan
Managing Director and CEO

Digital FIRST
Innovation and Technology

for an Aspiring India
Technology is changing banking at its roots. The mobile is now the go-to
mode for contactless and instant banking. At IDFC FIRST Bank, we are
deploying sophisticated technologies that enable us to be flexible and highly
responsive to changing customer preferences.
We are using predictive and data-driven technologies such as cloud, Artificial Intelligence (AI) and Machine Learning
(ML) to deepen our insight into customer needs and automate decision making. For our customers, this has resulted
in improved user interface and experience.
42 IDFC FIRST Bank

Here are some of the key digital initiatives that have benefited • Transactions made easy: With options available for auto-
our customers. selection of payment models (like RTGS, IMPS, NEFT
CORPORATE OVERVIEW
or UPI).
IDFC FIRST APP AND NETBANKING –
• Payments: Adding payees is super-simplified with fewer
A REVOLUTION IN DIGITAL BANKING
clicks
Our Bank developed a new advanced app for our customers.
• Loans: Easy application process, instant approvals,
Personalised, intuitive and futuristic, the mobile App is built
access to details and documents
to deliver a superior user experience.
• Fixed Deposits: Three-click deposit booking
The App uses data-driven and predictive technologies,
resulting in customised views, convenience and an • Digital chequebook management: With option to set digital
extraordinary user interface. Here are some of the features instructions to stop payment of cheques and view returns
STATUTORY REPORTS
that make it first-of-its kind: for cheque payments
• Log in: Seamless and secure • Video and Chat services: Available to some segments of
customers
• Global search option: With the App’s search option
for functionalities, transactions and beneficiaries, say • Auto-linking of all accounts to UPI handle: Easy to set-up
goodbye to menus and dashboards and track all your balances from the app
• Analytics: All transactions are smartly auto-categorised • Investing: Recommended investment schemes and
into income and expenses, with an option to edit the options as per customer’s risk profile and simple view
categories such as shopping, home expenses, lifestyle investment summary
etc.
• Features for MSME customers: Overdraft against FDs,
• Single-view of all cash flows: With interactive graphs to seamless adding of maker/viewers, management of daily
show daily trends in spends limits, multiple payments in one go, managing of daily
limits, flexibility to review, approve and reject transactions
• Insights: On upcoming expenses and incomes
All of this – in an environment of enhanced security.
• Fund transfers are now more convenient: With auto-
detection of IFSC codes

Digital FIRST
SAFEPAY – WAVE, PAY & GO: CONTACTLESS PAYMENTS
CARD PAYMENTS ON PHONE
In a wireless world, the way people want to pay is changing. Pay to Contacts – Simpler and Faster
IDFC FIRST Bank’s SafePay is a digital facility that allows Digital Payments
contactless debit card payments by simply waving one’s Our Bank launched ‘Pay to Contacts’ feature in its mobile
smartphone against a Near Field Communication (NFC)- banking App, enabling users to make payment by
enabled POS terminal. selecting a beneficiary from the user’s phonebook or by
Our Bank was the first to have this facility embedded in the entering the beneficiary’s mobile number. This feature
mobile App to enable secure payments using a debit card rides on the UPI payments stack. The process of payment
issued by the Bank. A social distancing-friendly way to pay, is seamless and can be completed with a few clicks and
it completely does away with the need to hand over the card in seconds. It completely does away with the need to
to a merchant or even carry it in the wallet. Users can simply enter the recipient’s bank details, card number or the UPI
wave, pay and go, making the payment process not only ID. Pay to Contacts enables customers to transact in a
touch-free, but also faster, simpler and safer. frictionless and secure environment. It is the simplest and
fastest way to pay.
RBI Regulatory Sandbox

The Bank was the first to participate in the Reserve Bank
of India’s regulatory sandbox for enabling UPI for feature
phones/offline payments. The Bank partnered with UltraCash
to support offline through IVR and with eRoute to support UPI
payments on feature phones using SIM overlay.
Prepaid Cards
VIDEO KYC – PUTTING CUSTOMERS’ The Bank offered seamless digital solutions for managing
SAFETY FIRST rewards, gifting and employee benefits. The Bank partnered
As a bank on the forefront of digital experiences, our Bank was Sodexo to launch Flexi Benefit co-branded prepaid card.
among the first few in the industry to launch video KYC for its To promote financial wellness among teenagers using
online savings accounts opening journey. The start-to-finish prepaid cards, the Bank partnered FamPay and created a
digital journey makes savings account opening a delight, as co-branded prepaid card targeting teenagers.
it enables customers to complete the paperless KYC process
in a few minutes. The digital facility offers customers a branch- Bill Payment
like experience at home, making it possible to meet bankers We simplified bill payments and autopay services to retail
virtually, at a time convenient to the customer. The zero contact and corporate customers.
method completely does away with paper work or biometric
verification, thereby removing physical interaction between the Payments on mobile App
Bank and the customer for the KYC process. • The Bank is among the few in the country that fetches
names for third party funds transfer, default creation of UPI
id for all customers, and auto-links the savings account to
default created UPI ID/VPA.
• The app also auto selects the payments rail – IMPS/NEFT/
RTGS - depending on the amount and the time of funds
transfer initiated by the user on IDFC FIRST Mobile app.
44 IDFC FIRST Bank

LOAN ACCOUNT SERVICING – DIGITALLY DRIVEN
CORPORATE OVERVIEW
We redesigned our online payment journey to enable
frictionless transactions:
KEY HIGHLIGHTS
Frictionless 1 click payments
STATUTORY REPORTS
Support for vernacular
languages available &
to be implemented
Integration with core

systems to provide real time
payment recepits
We used WhatsApp channel to assist customers
IDFC FIRST Bank Debt Support- WhatsApp Channel
KEY HIGHLIGHTS
2.5L
accounts reached in 3 months
Track all details for your

loan on WhatsApp
Seamless one click payment

enabled by UPI integrations

Committed to making Customer Experience better
Creating Exceptional
Experiences
During FY21, our Bank took a Our focus therefore is clear:
large number of initiatives and

sharply upgraded our customer
service levels.
Simplify
LETTER TO EMPLOYEES ON
‘YOU CAN’ INITIATIVES
At IDFC FIRST Bank, we have set a new benchmark Enrich Automate
of customer-centricity with every story under the
Heroes@FIRST initiative. More importantly, these
stories have proven that giving our customers
memorable experiences is not only the responsibility
of one department but also the duty of our entire
organisation.
It is not merely a function, but a culture. I commend

the demonstration of exemplary customer experience
shown by every team member of our organisation by
going beyond their call of duty to serve our customers
and I greatly appreciate and thank our CX team for
bringing the most inspiring stories under the spotlight.
While this is only the first edition of the coffee table

book, I assure you many more heroic tales are in the
making at this very moment. Because, as customer-
centricity evolves, so does our employees’ spirit to
serve.
Mr. Madhivanan Balakrishnan

COO, IDFC FIRST Bank Ltd
46 IDFC FIRST Bank

CORPORATE OVERVIEW
Simplified to In FY21, we had
serve better 5 million+

digital interactions to assist customers via phone,
email and video conferencing
6.5 Lakh
WhatsApp banking users with 70% growth
STATUTORY REPORTS
in usage over three quarters
2.7 million
Requests served on WhatsApp
Automated 50+ services

for remote redefined and automated to serve
and speedy our customers digitally
connect
20+ STP
for enhanced customer convenience
Enriched
experiences
Our in-house customer experience teams were available

all through the lockdowns and the pandemic to respond,
assist and resolve issues for customers
>90%
loan centre service levels
1,600+
frontline employees upskilled and trained
~6,000
Video KYCs done every month

Committed to making Customer Experience better
In order to improve customer experience, we initiated a bank-wide campaign

called YouX (You raised to the power of x). Under this programme, employees
of the Bank were trained to create superior customer experiences. We also
published a coffee table book with stories of our employees who went out of
their way to serve customers. Enclosed are a few stories from the book.
More than a banker

Jerry Pinto, Branch Manager, Sangli, proved that we care for
our customers – beyond just providing service!
Excerpts from the Coffee Table Book after the Youx Customer Experience campaign
48 IDFC FIRST Bank

CORPORATE OVERVIEW
Thinking on their feet
STATUTORY REPORTS
Naga Sai Swamy Pilla, Fexi-Banker, and Raviteja Namudur, Deputy Branch Manager,
Gayatrinagar, Vijawada Branch, were vigilant and prevented the customer from giving in to
a fraudulent transaction.
Excerpts from the Coffee Table Book after the Youx Customer Experience campaign

Being there for our customers
Because YOU matter

the most
We are passionate about serving our customers. Our wide range of products
are customised to their needs. When we support a small business we support
a dream. Our digital processes and technologies are aimed at creating
customer delight. Following are statements from a few of our customers on
their association with us and the impact on their everyday lives.
DIGITAL BANKING FOR A TECH-SAVVY TEAM

“We started our banking relationship with IDFC FIRST Bank for salary accounts three years ago. It’s been a wonderful experience
using the Bank’s digital services, especially during the pandemic. We have employees across the country and all their accounts
were opened digitally in just 10 minutes. Their newly launched app and netbanking is quite distinctive and extremely user
friendly. Given its customer focus, we hope the Bank continues to keep their high standards of service in the future.”
Ravindranath Rao, Finance Controller, Trigent Software, Bengaluru
A bit about Trigent Software: Trigent is an early pioneer of offshore software development business and IT outsourcing having its
operations in the United States and India. It offers end-to-end consulting services, design, development and managed services
across Infrastructure, Cloud, Mobility, BI, Analytics, Product Engineering, QA & Testing, IoT, Big Data, and Artificial Intelligence.
50 IDFC FIRST Bank

BIG BUSINESS STARTS SMALL STITCHING SUCCESS
CORPORATE OVERVIEW
“I started my business with an investment of ` 1 lakh. With “I started my small business with one embroidery machine.
time, I wanted to expand the business, but funds were short. There was a growing demand for embroidered fabrics but
I approached several banks but obtaining funds during a my expansion plans were constrained due to lack of funds.
lockdown was challenging. Then I approached IDFC FIRST A Business Loan from IDFC FIRST Bank helped buy more
Bank for a Personal Loan. The process from application to machines and cater to new clients. Soon my business turnover
disbursal was fast. With the funds, I renovated and expanded doubled to ` 50 lakh. I am delighted that today I am regarded
my shop so that the shelves can hold more. My income per as a successful entrepreneur in my locality.”
month is now more than the loan I had secured.”
Nasiruddin Sardar, Proprietor, Embroidery Factory, Howrah
Mihirkumar Patel, M/s Sahjanand Chill Point, Anand, Gujarat
STATUTORY REPORTS
CATCHING AN OPPORTUNITY
“In the business of finishing boats, the more the number of boats, more is the opportunity to earn. I availed of a Micro Enterprise
Loan of ` 1 lakh from IDFC FIRST Bank and expanded the number fishing boats I operated at Velankanni. Not only did this
increase my family income and helped buy essential items of my home, but it also enabled me to give employment to 10
labourers who work with me. I wanted to expand my business of manufacturing fishing boats.”
Jayakumar, Velankanni, Tamil Nadu
The above pictures represent the Bank’s actual customers

Being there for our customers
MULTIPLYING OPPORTUNITY PLAYING IT BIG IN THE SPORTSWEAR MARKET
“Besides agricultural land, I also owned 8 buffaloes and “Demand for sportswear has been steadily increasingly over
supplied about 25-30 liters of milk to people in Hanagal. But I the years. I expanded from wholesale to retail sportswear and
wanted to expand to meet higher demand from my customers. set up a manufacturing unit for stitching these garments. I
A loan from IDFC FIRST Bank helped me increase the daily could achieve this with funding from IDFC FIRST Bank. Today,
production of milk to 45-50 litres per day. My business has now I am able to procure raw materials from different locations and
expanded and is profitable.” increase margins. My turnover is now higher with an integrated
wholesale and retail business.”
Nagaraj Gaouli, Hanagal, Hubli
K Shivakumar, Proprietor, Bindass Sportswear, Mysore
TURNING YARN INTO MONEY

“As the lockdown lifted in August 2020, business activity was back to normal and we witnessed increased demand for knitted
products. I required funds to meet my working capital needs. I obtained a loan from IDFC FIRST Bank. With five circular knitting
machines and seven workers, I have been able to enhance capacity utilisation of my installed machines and cater to new clients
and untapped markets.”
Parminder Singh, M/s Padda Industries, Ludhiana
52 IDFC FIRST Bank

A LINE OF CREDIT THAT CHANGED LIFE
CORPORATE OVERVIEW
“I needed funds for working capital and expansion of our garments business. However, due to the lengthy procedures of banks
I failed to get a loan. My shop was too small and both banks and finance companies were unwilling to give us a loan. When
I approached IDFC FIRST Bank for a business loan, they processed my documents in two working days and the funds were
credited into my account. The helped improve my cash flows and enabled me to expand my shop. Soon footfalls increased
and I had to even install a CCTV for surveillance during rush hours. I am now planning to start another outlet. We’ve come a
long way from a struggling business to a successful one.”
Sayara Bano and son Firoz Ansari, M/s Fashion Flora, Jhangirpuri, New Delhi
STATUTORY REPORTS
FUELLING GROWTH OF WHOLESALE ALWAYS A GOOD TIME TO INVEST MORE
PHARMA BUSINESS
“As agriculturists, our income is not the same every year. So I
“Demand for pharmaceuticals has shot up in the past year. I decided to invest in milch animals. I availed of a Micro Enterprise
wanted to expand my wholesale pharmaceutical business and Loan from IDFC FIRST Bank and bought 3 milch animals.
stock more products to be able to meet increasing demand I started supplying milk in my native village Kumarakudi in
from retailers. The loan provided by IDFC FIRST Bank helped Sembanarkoil. This turned out to be a successful business so
scale up supplies significantly and increase turnover from ` 1 I took another loan from IDFC FIRST and now I own 7 milch
crore to 1.75 crore annually. Now, I am an entrepreneur with animals. My family income has increased and this additional
an established presence in my catchment area.” cash flow has given us the much needed financial stability.”
Raju Kumar Agarwal, Proprietor, M/s Shiv Pharma, Ranchi Subhashini, Tanjavur, Tamil Nadu
The above pictures represent the Bank’s actual customers

FIRST IMPACT: Corporate Social Responsibility
Being There for

the Community
FY21 brought with it unprecedented challenges as a result of the
pandemic. We responded by deepening our engagement with the
beneficiaries of our social programmes through the use of digital. We
also launched ‘First Impact’, our CSR brand purpose to give a clear
focus and definitive identity to the CSR function.
As a value-driven organisation, we recognise our role in creating a positive impact in people’s lives and
the communities we operate in. FY21 was a challenging year on account of the pandemic, given the
lockdowns and health concerns. We ensured our continued support to our beneficiaries even through
these extraordinary times. And we did what we had to do – from training our partners and their field staff to
driving digital adoption in remotest locations. This helped sustain the pace of implementation of our social
responsibility programmes. We also created cross collaboration between our partners, which helped scale
interventions to new geographies.
Gram Sakhi Smt. Geeta Patel of village

Paraswada, District Hoshangabad, Madhya
Pradesh has a small cattle farm of 5 milch
animals at her home. She increased the
production of milk by 2.5 liter per day by
using good practices of dairy, feed, fodder
and shed management after she was trained
under the Shwetdhara programme.
54 IDFC FIRST Bank

CORPORATE OVERVIEW
Ed
th uc
al
STATUTORY REPORTS
at
He
io
n
Our
Focus
Wom
en
od
Em
po ho
i
w vel
er Li
me
nt
IMPACT SINCE INCEPTION
41 LAKH+
Lives impacted till date
24+
Programmes supported
10+
Locations

During FY 2020-21, our CSR brand identity and

theme-line was redefined and launched.
We believe in creating opportunities beyond creating capabilities. In
empowerment beyond charity. In equality beyond reducing inequality.
In long-term impact beyond short-term alleviation. In flow of wealth
beyond accumulation of wealth. In inspiration beyond instruction.
We believe in being the prime-mover in a chain reaction of good.
12
No. of programmes
35
No. of trainings taken
48
No. of NGO Staff
by IDFC FIRST Bank trained by IDFC FIRST
CSR Team Bank CSR team
17
No. of NGO Staff's
36
No. of NGO staff
218
No. of field workers
Capacity Built as part of supported by CSR supported by our CSR
the program programs programs
22600
No. of beneficiaries
46312
No. of hours of
156
No. of hours of capacity
reached training provided for building sessions held
beneficiaries for NGO staff
BENEFICIARY BIFURCATION
94
No. Youth with
13
No. of Entrepreneurs
6759
No. of Youth
219
No. of women
disabilities supported Supported beneficiaries supported
227
No. of adults with
322
No. of scholars
14966
No. of households
disability supported supported supported
56 IDFC FIRST Bank

1. EDUCATION
CORPORATE OVERVIEW
IDFC FIRST Bank programmes support young adults from economically weaker sections across India and provide
them with equal opportunity to succeed in life. This includes providing financial assistance in the form of scholarships
to meritorious and deserving candidates, supporting special education of young adults with intellectual disabilities
and other underserved programmes around mental health.
1.A. FLAGSHIP MBA SCHOLARSHIP PROGRAMME
STATUTORY REPORTS
Beneficiaries: Students enrolled in B-schools with family
income less than ` 6 lakh p.a.
Programme Overview:
The programme provides scholarships of ` 1 lakh p.a. for
two years to full time MBA students who secure admission
in B-schools on their own merit.
Under this programme, scholarships have been awarded
to 677 students until March 31, 2021. The 2020-21 batch
of scholars were felicitated at the IDFC FIRST Bank MBA
Scholarship Digital Conclave in February 2021.
The Bank hired four scholars of the previous year’s batch
as management trainees this year.
“I stay with my mother who is the sole earning member of
677 MBA SCHOLARS

hailing from diverse family
the family. There were a lot of ups and down in my family
due to which our financial condition wasn’t very good. My
goal is to become financially independent and having an
backgrounds such as children of MBA degree is the stepping stone to achieve my goals
retired government employees, auto- and it wouldn’t have been possible to achieve it all without
rickshaw drivers, farmers, single parent the support of IDFC FIRST Bank’s MBA Scholarship.”
etc. from low income families have Aishwarya Lakhmani,
received the scholarship till date. IDFC FIRST Bank Scholar

SCHOLARSHIPS SUPPORTING
SPECIAL EDUCATION
1.B. Kamyaab Scholarship
Beneficiaries: Young adults with autism

Programme Overview:
The Bank in partnership with Bubbles Centre for Autism is
supporting special education for children with disabilities
from both urban and rural communities in Karnataka. Under
this partnership we run a scholarship programme, life-skills
programme and a rural capacity building programme.
The programme has supported special education for 153
young adults with autism till date. These students hail from
economically disadvantaged families and cannot afford the
cost of intervention. Their parents are tea stall owners or auto
rickshaw drivers and earn an annual income of ` 1-2 lakh. Since
the onset of the pandemic, the programme is being conducted
virtually to provide end-to-end support to 20 young adults. The
classes also include sessions on speech therapy, occupational
therapy and physiotherapy. We have distributed tablets and
gadgets to nine of these students to help them access good
quality intervention at affordable rates during the lockdown.
Our Life Skills Programme imparts training to 10 young Chandana, student from Sankalpa, Davangere (Outreach partner under Aadhar
adults with autism and includes digital training on farming and programme), Karnataka with her mother. She is 9 years old and with Bubble’s
intervention on motor activities for the first time she has started walking with support.
gardening. Activities such as composting, manuring, seed ball
and coco planter making are taught. The aim of this programme
is to strengthen social and life skills of youth with autism, which
Our Aadhar Programme is a rural outreach and capacity
are often inaccessible and too costly for the families.
building programme which provides early intervention for 20
The above two programmes cater to students from urban areas children with autism in Hospet, Karnataka.
in Bengaluru.
• The Bank increased its outreach through five more
partners across India to build capacities of 15 trainers,
who would, in turn, train 70 more children. These NGOs
namely, Transcendent Knowledge Society in Kolkata,
BD Tatti in Laxmeswar, Sankalpa in Davangere, and
Ashadeep in Ilekal, Karnataka are small NGOs that were
severely impacted during the pandemic and had little or
no support
• The Bank provided 86 hours of teachers’ training in
domains of development, pre-academic skills, sensory
integration etc.
• Laptops were donated to these NGOs to enable them to
Kuhu, our Kamyaab scholar during an online session with her mother carry out interventions.
58 IDFC FIRST Bank

1.C. Young India Fellowship Programme
CORPORATE OVERVIEW
Beneficiaries: Students pursuing their degree in Liberal Arts
from Ashoka University
Programme Overview: IDFC FIRST Bank, in partnership with
Ashoka University, is supporting need-based scholarships
for 4 undergraduate and postgraduate students at Ashoka
University this year.
We have supported 28 scholars of the Young India Fellowship
Programme till date. Access to high quality liberal arts
studies, especially in a renowned institute such as Ashoka, is
STATUTORY REPORTS
made possible with our scholarships. Many of these students
make careers in the development sector and solve social
challenges in India. Our scholars belong to families of diverse Journalist Ravish Kumar holding a baithak with Ashoka students. The University hosts
backgrounds such as small business owners, farmers, single several formal and informal sessions for students to interact with notable people from
across professions.
parents, social workers etc.
1.D. BALM Fellowship Programme
Beneficiaries: Students from economically weaker sections
pursuing mental health studies at BALM
Programme Overview: The Bank, in partnership with Banyan
Academy for Leadership in Mental Health (BALM), supports
capacity-building of human resources in the field of mental
health services. We have supported 193 students till date.
The mental health crisis in India has seen a spike during
the COVID-19 pandemic. We recognise that there is a
significant need to provide access to quality mental health
education to those who cannot afford it. With this in mind,
we provide stipends to students from low-income groups
pursuing their masters and diploma programme at BALM.
Most of our students, post their graduation, go on to provide
mental health services in rural communities and work with the
vulnerable sections of society.
About 18 students who attended the IDFC FIRST Bank
Diploma programme in community mental health this year
are currently employed as NALAM workers and have
been working in the field, helping others in marginalised
NALAM worker at her residence in Thiruoporur block, Chengalpet district, Tamil Nadu
communities.
Recognising the negative effects of the COVID-19 pandemic on mental

health, the Bank provided disability allowance and social entitlements to 668
service users from low-income families.

2. LIVELIHOODS
Our programmes aim to provide livelihood intervention and skill development to youth and women from low-income
communities across India, thereby making them employable and entrepreneurial.
Demand for labour and skills vary across geographies and depend on infrastructure and local industries. We enable
access to training courses which empower women and youth to choose a livelihood skill such as electrical, welding,
beauty care, and dairy farming.
“I went through a difficult time after my husband was

diagnosed with brain haemorrhage. Since then, I have been
taking care of my family and all household expenses, including
my husband’s medical expenses. I wasn’t expecting much
from this year but my handmade soaps did very well during
Diwali and Christmas season. I am glad that I am a part of
the Women Entrepreneurship Programme. Thank you IDFC
FIRST Bank for supporting me and other women like me.”
Ms. Suman,
Haqdarshak camp organized by Etasha Society in Mangolpuri community, Delhi
Noor Mahila Udyog, Handmade soap enterprise
2.A. Women Entrepreneurship Programme
Beneficiaries: Underprivileged women from slum areas of Delhi

Programme overview: In partnership with ETASHA Society,
the Bank supports entrepreneurship development among
women from low-income communities of Delhi, providing
them the necessary skills to run and manage successful
enterprises. All our current 18 women beneficiaries are first-
time entrepreneurs and are supported until they become
quality- oriented, profitable and self-sustaining businesses
owners. Beyond financial gains, the women engaged in this
programme experience higher levels of self-esteem, respect
within the community and an improved sense of fulfilment.
We have supported eight women-led micro enterprises and Awareness camp organized by Haqdarshak on government loan and pensions
schemes at Mangolpuri-CDC-3
nine individual entrepreneurs till date and trained more than
360+ women since the inception of this programme. These
entrepreneurs are involved in manufacturing LED bulbs,
soaps, hand wash, shampoos, candles etc. From organising
360+
cross collaborative digital literacy sessions to enabling
access to social entitlements, this year we decided to go
beyond just providing financial support and take advantage
of the rapid digital adoption following the pandemic. As part Women trained in various skills
of this, we connected 288 community members with eligible since inception of Women
welfare schemes. ETASHA Society is also a part of our Karma
First Donation Programme. Currently 11 women in Delhi
are part of the Women Entrepreneurship Programme in
partnership with ETASHA Society.
60 IDFC FIRST Bank

2.B. Social Action for Manpower
CORPORATE OVERVIEW
Creation (SAMPARC)
Beneficiaries: Rural youth of Maval, Haveli and Mulshi

Taluka of District Pune
Programme Overview: The Bank has been supporting the
SAMPARC Industrial Training and Vocational Training Centre
in training rural school dropouts and youth to enable them to
find employment. We have supported 1,907 students till date
across four vocational training courses – electrician, fitter,
welder and wireman courses. These courses also impart
computer literacy and English language skills. It has resulted
STATUTORY REPORTS
in 100% placement records. During the lockdown, all the
128 students of the 2020 batch migrated to virtual learning
and focused on theoretical subjects. Practical classes have
resumed with precautionary and safety measures in place.
ITI Electrician Students receiving Practical Training
2.C. Om Creations Trust
Beneficiaries: Women with Down Syndrome
Programme Overview: In partnership with Om Creations
Trust, the Bank provides stipends to women with multiple
intellectual disabilities to honour their commitment towards
making quality art and food products that are sold by the
Trust. The proceeds of the sale are used for providing
intervention to these women. We have supported 187 women
till date.
With the COVID-19 lockdown setting in, the current batch
of 41 women migrated to online classes. Their teachers
delivered skilling kits at their doorstep and the women were
trained with the help of their guardians. The students received
Om Creations beneficiaries at the fund raising drive ‘The Hope Drive’
an average stipend of ` 5,000 a month for the stitching, art
and craft and designing work they did from their homes.
The Bank’s CSR team also conducted capacity building

workshops for the staff of Om Creations Trust on topics
such as Log Framework Analysis and developing Theory
of Change.
Om Creations Beneficiaries working from the Centre post lockdown

2.D. Lighthouse Programme

courses of their choice and providing placement support.
Beneficiaries: Underprivileged youth from slum areas of Pune City Connect works very closely with youth from urban
Aundh, Pune slums, non-slum and gaothan settlements. IDFC FIRST Bank
has supported 1,800 youth as part of this programme till date.
Programme Overview: In partnership with Pune City
Connect, the Bank is implementing the ‘Sustainable Livelihood This year we reached 413 youth in spite of the challenges
Programme’, which is run through physical centres called posed by the COVID-19 lockdown. Our students quickly
‘Lighthouses’. The real estate and capital expenditure for these adapted to the new digital learning set-up and post-completion
Lighthouses is provided by Pune Municipal Corporation and of the course, were placed across e-commerce companies as
the Bank contributes for the operational expenses to run the delivery agents. This year, we were able to secure placements
Lighthouse. This programme involves skilling underprivileged for 50% of the batch.
youth from the slum community at Aundh in vocational
Youth and women working on an assignment during foundation course at Aundh Lighthouse, Pune
The Lighthouse programme is significantly different from other skilling

programmes in India because of its emphasis on mapping passion versus
skills and working closely with the family eco-system to support them in
making well-informed decisions.
62 IDFC FIRST Bank

2.E. Digital Empowerment Programme
CORPORATE OVERVIEW
Beneficiaries: Adults between the age of 18-60
Programme Overview: Together with Pune City Connect, the
Bank provides digital literacy training for youth and adults from
low-income communities of Pune city. This course imparts
digital skills required for day-to-day activities such as accessing
net banking, applying for jobs, transacting online, exchanging
mails, using apps etc. This programme is especially important
to bridge the digital divide and to enable people to use their
digital skills to advance their income and access entitlements
from the government. Youth and women who have been through
STATUTORY REPORTS
this programme have expressed an increase in self-confidence
and employability skills post-their certification. Technology Mela organized for youth of Digital Empowerment Centre at Aundh, Pune
The Bank has supported 11,000+ learners till date across five
centres in Pune. This year, the Bank was able to train 2,000+
learners out of which 77% learners were female candidates.
The Bank is also encouraging beneficiaries of our other
11,000+
programmes to learn digital literacy skills from mentors of Learners across Pune availed
this programme to benefit a wider audience which earlier the Digital empowerment training
could not be reached due to geographical limitations. till date.77% of them were female
2.F. SHWETDHARA PROGRAMME
Beneficiaries: Small and marginal farmers

Programme Overview:
In partnership with Vrutti and End Poverty, the Bank
has designed and implemented a unique cattle care
programme in rural Madhya Pradesh and Rajasthan to
improve the productivity of milch animals and increase Gram Sakhi Smt. Geeta Patel of village Paraswada, District Hoshangabad, Madhya
the income of small and marginal dairy farmers. This Pradesh providing animal husbandry training to Shwetdhara group members of
her village. Every month, she received training under the programme on various
programme also aims to ensure dairy farmers are equipped animal husbandry topics and she also delivers training to other women of her village.
with best practices and have better understanding about
the right practices. The programme has reached 30,000+ in the midline assessment. Based on findings of the midline
beneficiaries through services like artificial insemination, study, it can be said that Shwetdhara is an essential
cattle treatment, feed and fodder services and medicine component in the communities we serve. The programme
supply for the cattle. received considerable response from the community in
the midline study.
Aligned with the Bank’s catchment areas, this programme
is run at the grassroots level by a cadre of women leaders The programme has resulted in a considerable shift in
in the community called ‘Gram Sakhis’, who enable last attitude, upkeep of cattle, and use of artificial insemination,
mile service delivery. We have set up six Pashu Vikas which increased by 40% with 25,000 artificial inseminations
Kendras in the branch catchment areas, catering to 6,000 performed till date. This has resulted in a reduction in input
rural households. This programme has been designed to cost by ` 40-70 per household per day and a consequent
become self-sustaining in five years from commencement increase in net income of households.
with each Pashu Vikas Kendra.
The Bank has trained 192 Gram Sakhis who cover Apart from the improvement in income and the
192 villages across two states, conducting 378 upkeep of cattle, the most significant impact of
community trainings and 4,286 cattle treatments. the Shwetdhara programme is the identification of
Gram Sakhis as professionals, increase in income
Baseline assessment for the programme was carried
from dairy, and training of each Gram Sakhi and
out in December 2018 and a midline assessment in
community members.
December 2020. A total of 171 households participated

3. WOMEN EMPOWERMENT
Our programmes under the theme of ‘Women Empowerment’ have a special focus on economic and social
empowerment of women from low-income groups in rural and urban areas. These include women-focused livelihood
interventions and skill development to bring about a social transformation starting with one woman at a time. As
a result, the wide-ranging effects of these programmes are not limited to financial benefits alone, they extend to
changing deep-rooted social attitudes towards women.
“I enrolled myself for the Saksham programme as I was

eager to learn a new skill that could help me become
financially independent. My financial situation was not
good and I used to borrow money to pay for my children’s
education and sometimes also for my daily expenses. There
was no scope for savings as a major part of my husband’s
income used to go towards paying the house rent. After
completion of my tailoring course, I started earning ` 5,000
per month. I also bought a sewing machine for myself on
revolving credit under the Saksham programme supported
by IDFC FIRST Bank, as going to the centre for stitching
every time was not feasible and I was getting a lot of orders.”
Pragati Rajesh Patel,
Trainee of Saksham Programme, Women beneficiaries of the Vashi centre during the graduation ceremony
Jogeshwari West Centre
3.A. Saksham
Beneficiaries: Women living in slum areas of Mumbai

Programme Overview: In partnership with Animedh Charitable
Trust, the Bank supported a three-month tailoring programme
called ‘Saksham’ for women from low-income communities in
Mumbai. This programme gives women the freedom to work from
home or in a garment factory and earn a living for themselves and
their families. With the Bank’s intervention, the women were able
to earn up to ` 5,000 a month and also take care of their families.
We are supporting three tailoring centres across Mumbai and
have trained 1,000+ women till date. During lockdown, 100
women were being trained online. Post lockdown, the batch size
was reduced to half to maintain social distancing at the centre.
1,000+
Women trained in tailoring through
Artisan beneficiaries during the advanced tailoring and garment construction training
Saksham programme till date
64 IDFC FIRST Bank

CORPORATE OVERVIEW
4. HEALTH
Our programme under the theme ‘Health’ aims to create awareness regarding community-driven solid waste
management processes and segregation at source within the Worli Koliwada community of Mumbai through a
participatory process.
“As part of the Swachh Worli Koliwada project, Stree
STATUTORY REPORTS
Mukti Sanghatana advocates capacity-building of
citizens residing in Koliwada and giving hands-on training
to segregate waste at source in three ways to make
the project self-reliant and to adhere to the principles
of decentralised waste management. With strategic
guidance and financial support from IDFC FIRST
Bank, along with active participation of MCGM, we are
confident that Worli Koliwada can become a zero-waste
community.”
CSR Team with the staff of Stree Mukti Sanghatana during field visit at Worli
Jyoti Mhapsekar,
Koliwada, Mumbai
Founder, Stree Mukti Sanghatana
4.A. Swachh Worli Koliwada
Beneficiaries: Worli Koliwada community

Programme Overview: In partnership with Stree Mukti programme has a partnership with IIT Bombay to build a
Sanghatana and the Municipal Corporation of Greater field level data collection tool which will show real time data
Mumbai (MCGM), the Bank is working on project Swachh on a website. Koliwada being primarily a fishing community,
Worli Koliwada with the aim to clean Worli Koliwada, create local businesses have been engaged with to use fish waste
awareness and bring about behaviour change around solid to create high quality compost. Efforts are being made to
waste management practices and segregation at-source build sustainability into the programme by creating sources
through a participatory process. The programme intends of revenue through compost generated.
to build a zero-waste neighbourhood that is equipped to
manage solid waste through community participation, which
makes the programme sustainable in the long run. This
programme is expected to touch the lives of 9,452 household
residents spread across 65 acres of Worli Koliwada. Under
64,872 kgs
Of wet waste collected and processed
the programme, 64,872 kgs of wet waste was collected and into compost
63,810 kgs was processed into compost. The Bank has funded
the setting up of infrastructure for dry waste segregation with
the installation of a machine that has a capacity of creating
1,000 kgs compost per day. Total dry waste collected and
sent for recycling to the MCGM is 18,111 kgs.
18,111 kgs
Of dry waste collected and sent to Munipal
Extensive awareness activities continue with 50 awareness Corporation of Greater Mumbai for recycling
sessions, which saw the participation of students and
550 community members. An innovative approach,
which gamifies behaviour change, is being adopted. The

First Impact: Corporate Social Responsibility
OTHER SOCIAL IMPACT INITIATIVES
Karma First Donation

Programme “We are grateful to the customers of IDFC FIRST Bank
for supporting us in enhancing our learning models and
continuing our intervention with individuals with autism
FY21 saw the launch of our unique Karma First programme,
and ID (intellectual disabilities). The Karma First Donation
which makes contributions to social initiatives easier than
Programme helped us raise support for our beneficiaries.
ever. The programme, hosted on the Bank’s website, enables
Using these funds, we provided support to single mother of
our customers to contribute seamlessly to social causes of
one of our students from a low-income group, helping her with
their choice.
her rations and daily necessities.”
This new feature has a Mrs. Sarbani Mallick,
simple user interface. Founder and Managing Trustee, Biswa Gouri Charitable Trust
Log into their net banking account

Customers can select from a variety of social causes and
payment schedules such as recurring donations or a one-
Choose the cause one wishes to support time donation. They can also choose to donate a part of
their interest earnings if they wish to. The Bank bears all the
administrative costs of this programme and 100% of the
Enter the amount to be donated funds go directly to the cause chosen by the contributor.
Click to proceed
66 IDFC FIRST Bank

Lend-A-Shoulder
CORPORATE OVERVIEW
Programme
Our employee volunteering programme offers our colleagues
an opportunity to make a difference by espousing social
causes that are important to them. An employee can explore
ways to do social good either directly or alongside our NGO
partners based on their specific skills, areas of interest and
availability. They can volunteer to spend time supporting
children with special needs and providing academic support
to youth, or participate in financial literacy programmes
STATUTORY REPORTS
and even give art and dance lessons to individuals with
intellectual disabilities.
We have two programmes under Lend-A-Shoulder
programme, namely Employee Volunteering Programme for
Lend-A-Shoulder is a great programme where we can
all employees across organisation and Employee Donation
connect to the NGOs based our interest and skillsets and
programme for employees across Mumbai, Maharashtra.
are able to help them where they need the most. It enables
These prorgammes enable our employees to harness their people like us to reach to correct place where we can be of
interests, professional skills, invest time towards social some help. It needs to be endorsed more. I believe more
good with the mission to strengthen their local communities, awareness should be created among employees at the
especially those who are most vulnerable. bank so that we can contribute more hours collectively.
Nihar Ranjan Sahoo,
Our Impact
Technology Delivery Manager-Projects,
We have received more than 80+ nominations for volunteering
Information Technology, IDFC FIRST Bank
from our employees and despite COVID-19 restrictions, we
have had 15 of our employees lend their time, energy and
skills towards joining our social impact mission since the
launch of this programme.
These employees spent more than 80 hours of collective
volunteering to train more than 100+ beneficiaries and
helped 4+ NGOs across Delhi, Bengaluru and Mumbai in
digitally training their members and beneficiaries.
100+ 80+ 15+

Beneficiaries Employees Completed “The Lend-A-Shoulder program is the best opportunity
reached Nominated Volunteering and platform for us to give back to our society. Whilst
volunteering, I realised that the women were very talented
but lacked new-age know-how. By imparting my knowledge
in marketing and business-related strategy, I provided them
with tools that were most relevant to their trade and day-
to-day lives.”
Nasarinbanu Kittur,
Senior Customer Service Executive,
Customer Experience, IDFC FIRST Bank

Responding to the Second
Wave of COVID-19
The second wave of COVID-19 has disrupted lives and resulted in loss
of jobs and livelihoods for many. At IDFC FIRST Bank, we always put our
customers first and are conscious of the situation they are going through.
We carried out a set of targeted interventions to address the concerns of
our customers and alleviate the situation for them.
Distribution of masks to JLG group

community women by IDFC FIRST Bank
Branch Team at Madhya Pradesh
68 IDFC FIRST Bank

CORPORATE OVERVIEW
We at CSR division are passionate about what we do and
are involved directly in all the programmes that we manage.
We get the necessary resources, time and attention of
peers and seniors who along with us are thrilled for the
opportunity to serve the people around us.
STATUTORY REPORTS
We get support from the highest level in the Bank and all
our departments get together and join hands in serving
communities affected by both waves of COVID-19. After
weeks of brainstorming we conceptualised the following 7
programmes to tackle the first wave of COVID-19
• PM Cares Contribution – We donated ` 5 Crores to PM
CARES Fund
• Ask For Mask Programme- We supported 250 women
who stitched masks. We procured /manufactured and
distributed 1.5 Lakh masks in total to frontline workers
• Shramik Sahayata Programme – We supported direct
cash transfer and linkage to various government schemes
for 625 labourers who had lost their livelihoods Oxygen concentrator handed over to Life Care Hospital, Kopargaon, Maharashtra
by IDFC FIRST Bank Branch staff, Maharashtra
• Share-a-Meal Programme- Distributed 1 Lakh meals to
migrant laborers and slum dwellers
• Gaon Gaon Mask Programme – 150 women stitched 2 IMPACT STORIES
lakh masks that were distributed in rural locations
• Jankari mein Samajhdari Programme – COVID-19
awareness film disseminated to 3 mn customers
“There were a lot of rumors around the coronavirus vaccine
• COVID Warriors on Wheels Programme- Provided and we were very disturbed by these rumors that were going
free transport facility for staff of two leading hospitals in around. We were afraid that the vaccine would be harmful for
Mumbai during the lockdown us but after we saw the ‘Jankari Mein Samajhdari’ video in the
Shwetdhara Gram Sakhi WhatsApp group, we realised that
DURING THE SECOND WAVE, WE ROLLED OUT it’s completely safe to get vaccinated. We are now looking
THE FOLLOWING PROGRAMMES – forward to getting vaccinated.”
1. JANKARI-MEIN-SAMAJDHARI PROGRAMME Rama Bai,

Shwetdhara Member,
In order to emphasise on the urgency of the COVID-19 Madhya Pradesh
vaccination, and to clear misconceptions relating to it,
the Bank reached out to over 5 million of its customers in
semi-urban and rural locations digitally. Animated films
and infographics were circulated through SMS links in nine
different languages across Kerala, Karnataka, Tamil Nadu,
Andhra Pradesh, Maharashtra, Gujarat, Madhya Pradesh,
Chhattisgarh, Odisha, Haryana and Rajasthan.

2. AAS BHI, SAAS BHI – OXYGEN
CONCENTRATOR DONATION PROGRAM In partnership with Give India, procured
IDFC FIRST Bank, in partnership with Give India, procured
63 oxygen concentrators to be distributed across hospitals
63 OXYGEN
in and around our 42 rural branches to meet the shortage of
CONCENTRATORS
oxygen concentrators in rural India. Employees of our rural to be distributed across hospitals in
branches personally visited the hospitals to hand over the and around our 42 rural branches
oxygen concentrators.
3. GAON-GAON MASK PROGRAM

Owing to the traumatic impact of the second wave of COVID-19
on the livelihoods of rural communities, the Bank enabled 64
Gram Sakhis, our village-level dairy entrepreneurs in rural
Madhya Pradesh, to lead the stitching of 1 lakh masks. This
created livelihood for women entrepreneurs in the villages
and kept their families engaged. The masks stitched by
them were distributed among vulnerable rural communities
in order to limit the spread of the virus. Masks were also
distributed among the personnel of Government hospitals,
dispensaries, police, sanitation workers, PRIs, Shwetdhara
Group members, farmers and Anganwadi workers.
Ms. Madhubala, programme coordinator of Shwetdhara programme providing

masks stitching training to Gram Sakhis at Rani Pipariya village of Hoshangabad
District Madhya Pradesh
70 IDFC FIRST Bank

4. MASK DISTRIBUTION PROGRAMME
CORPORATE OVERVIEW
Along with the Gaon-Gaon Mask programme, the Bank
distributed over 4.25 lakh masks in rural and urban areas
across 18 states to curb the spread of the COVID-19 virus.
Masks were distributed among frontline workers, police,
sanitation workers, hospitals, farmers and community
members from 500+ IDFC FIRST Bank branch catchment
areas. All the employees of our 500+ branches participated
in this activity.
STATUTORY REPORTS
Manjunatha GS, ABM handing over masks to Asst PI, Hiriyur, Karnataka
Mask Distribution Activity at vaccination center, Pathalgaon Chattisgarh OSD – Urban Development & Housing Minister MP
5. CASH RELIEF SUPPORT IMPACT STORIES

The Bank supported vulnerable families, who had lost an
earning member of their family to COVID-19, with cash relief
support of ` 10,000 in partnership with Give India. As part of
this programme, we reached out to our existing NGO partners “During COVID-19, I lost my husband who was the sole bread
and rural bank branches to identify community members who earner of our family. IDFC FIRST Bank helped us with cash
needed our support and who fit the eligibility criteria. Families relief ` 10,000, which helped us immensely. My daughter can
with income less than ` 3 lakh per annum were identified and now continue her education and will not have to quit school.
supported with cash relief; 250 such families across 20+ rural Thanks to IDFC FIRST Bank for helping us during a time of
and urban locations in India benefited from this programme. need.”
Mrs. Reshma Pramod Kamble.
wife of the deceased, Pune City Connect
5 MILLION+
Customers in semi-urban and rural
India reached through SMS in 9
languages to promote vaccination

People
Staying connected while

Working From Home
Through the year, our Bank organised multiple sessions to drive engagement
among employees in an effort to upgrade their knowledge and skills, and to
keep the business momentum going.
BHARAT KI SHAAN
Rewards & Recognition programme in which state teams
across the country come together on a digital platform on
the same day to appreciate and recognize Top Performers
in the business.
The Arête New Joiner Kit was introduced to welcome

the newly joined and inducted members of the ‘New Age’
teams (Technology, Data & Analytics, Digital Platforms,
Digital Solutions)
72 IDFC FIRST Bank

CORPORATE OVERVIEW
Rahul Chari (Guest Speaker)
pictured with Surajit Deb (Head-
Technology Management Group
and Chief Enterprise Architect)
addressing employees during ‘Tech
Hour’ – the Bank’s monthly learning
and knowledge sharing session for
our new age banking teams.
STATUTORY REPORTS
Shikha Hora, Business Head – Consumer Lending (highlighted above) chaired a Samvaad session – a Leadership
Connect Programme which provides a platform for frontend employees to interact directly with leadership

People
A social media message to our MD & CEO Mr. V Vaidyanathan triggered the thought of
launching the Bank’s 500th branch at Dimapur, Nagaland.
It all started with a comment by a resident of Nagaland to IDFC FIRST Bank. The resident invited the Bank to open a
branch in Nagaland. The comment was picked up the social media team and the message was promptly conveyed to the
business teams.
The invitation of the Nagaland resident was

considered in the business plan and branch
was opened in Dimapur, Nagaland.
The customer Nyemkha T Konyak (highlighted)

was invited to the branch launch in a digital
conference during the inaugural ceremony and
he conveyed happiness that he was taken so
seriously.
74 IDFC FIRST Bank

CORPORATE OVERVIEW
STATUTORY REPORTS
COVID-19 Vaccination Drives conducted across locations for our employees and their families

Awards and Recognition
During the year under review, our Bank was recognized in various
ways and the significant awards were presented to our Bank.
76 IDFC FIRST Bank

CORPORATE OVERVIEW
Best Private Bank – Digital Innovation &
STATUTORY REPORTS
Services 2019 by Asian Private Banker –
Awards for Distinction;
Won three awards in ‘Asset Triple A Awards

2020’ for Treasury, Trade, SSC and Risk;
‘Most Transformed Bank in India 2020’ by

Capital Finance International (CFI)
Economic Times ‘Best BFSI Award’ in
Private Bank Category

Board of Directors
Providing Prudent Guidance

MR. SANJEEB CHAUDHURI
Independent Director
Mr. Sanjeeb Chaudhuri is a Board member and Advisor to large commercial and
nonprofit organisations across Europe, US and Asia, having over four decades of senior
multinational business experience across global banks and consumer companies. He
was listed among the Top 25 Media Visionaries in Asia Pacific in 2016 and is a featured
speaker at premier global marketing and media events in Europe and Asia. Mr. Chaudhuri
has most recently been Regional Business Head for India and South Asia for Retail,
Commercial and Private Banking and also Global Head of Brand and Chief Marketing
Officer at Standard Chartered Bank. Prior to this, he was CEO for Retail and Commercial
Banking for Citigroup, Europe, Middle East and Africa. Mr. Chaudhuri has an MBA in
Marketing and has completed an Advanced Management Programme. He is also a
Global Mentor at the Columbia Business School Center for Technology Management.
MR. AASHISH KAMAT

Mr. Aashish Kamat has over 32 years of experience in the corporate world, with 24
years in banking and financial services, 6 years in public accounting and 2 years in
Private Equity. Until March 31, 2021, Mr. Kamat was the Co-managing partner for the
GCC Asia Growth Fund. He was the Country Head for UBS India from 2012 until his
early retirement in January 2018. Prior to that, he was the Regional COO/CFO for Asia
Pacific at JP Morgan based out of Hong Kong. Before moving to Hong Kong, Mr. Kamat
was in New York, where he was the Global Controller for the Investment Bank (IB) at JP
Morgan and at Bank of America as the Global CFO for the IB and Consumer & Mortgage
Products. He started his career in 1988 with Coopers & Lybrand, a public accounting
firm, before he joined JP Morgan in 1994. Mr. Kamat holds a BA in Accounting from
Franklin & Marshall College, USA and is also a Certified Public Accountant (CPA).
DR. (MRS.) BRINDA JAGIRDAR

Dr. (Mrs.) Brinda Jagirdar is an independent consulting economist with specialization

in areas relating to banking and economics, including Agriculture Economics. She is
a member of the Research Advisory Committee of the Indian Institute of Banking and
Finance, Mumbai. She is on the Governing Council of Treasury Elite, a knowledge sharing
platform for finance and treasury professionals. She retired as General Manager and
Chief Economist, State Bank of India, based at its corporate office in Mumbai. In March
2019, Dr. (Mrs.) Brinda Jagirdar was recognised as among India’s Top 100 Women in
Finance by the Association of International Wealth Management of India. She has a
brilliant academic record, with a Ph.D. in Economics from the Department of Economics,
University of Mumbai, M.S. in Economics from the University of California at Davis, USA,
M.A. in Economics from Gokhale Institute of Politics and Economics, Pune and B.A. in
Economics from Fergusson College, Pune. She has attended an executive programme
at the Kennedy School of Government, Harvard University, USA and a leadership
programme at IIM Lucknow.
78 IDFC FIRST Bank

CORPORATE OVERVIEW
MR. PRAVIR VOHRA
Mr. Pravir Vohra is a postgraduate in Economics from St. Stephen’s College, University of
Delhi and a Certified Associate of the Indian Institute of Bankers. He began his career in
banking with State Bank of India, where he worked for over 23 years. He held various senior
level positions in business as well as technology within the Bank, both in India and abroad.
The late 1990s saw Mr. Vohra as Vice President in charge of the Corporate Services Group
STATUTORY REPORTS
at Times Bank Ltd. In January 2000, he moved to the ICICI Bank Group, where he headed
a number of functions like the Retail Technology Group and Technology Management
Group. From 2005 till 2012, he was the President and Group CTO at ICICI Bank. Post his
retirement from ICICI Bank in 2012, he mentored start-ups in the payments space and,
more recently, completed a 2-year assignment with New Development Bank, Shanghai. In
the industry, Mr. Vohra has immense experience and knowledge in IT architecture, domain
expertise in financial products, process re-engineering, IT operations and strategy and
continues to serve on the Technology Advisory Committees of organizations like the BSE
Limited, NCDEX, Indian Clearing Corporation and NPCI etc.
MR. HEMANG RAJA
Mr. Hemang Raja is an MBA from Abilene Christian University, Texas, with a major in
finance. He has also completed an Advanced Management Programme (AMP) from
Oxford University, UK. He has vast experience of over 37 years in the financial services
industry. His last assignment from the year 2006 onwards was in Private Equity and Fund
Management with Credit Suisse and Asia Growth Capital Advisers in India as MD and
Head-India. He has served on the Executive Committee of the Board of the National
Stock Exchange of India Limited and has also served as a member of the Corporate
Governance Committee of BSE Limited.

Board of Directors
MR. S GANESH KUMAR

Mr. S Ganesh Kumar was the Executive Director of the Reserve Bank of India. He was with
the Reserve Bank of India for more than three decades. His most recent responsibilities
included the entire gamut of Payment and Settlement Systems, creation and development
of strategic plans for the Bank and to take care of the external investments and manage
the foreign exchange reserves with the central bank. Mr. Kumar is a post graduate in
Management having experience in varied fields such as marketing, market research,
banking, finance, law, and Information Technology.
MR. VISHAL MAHADEVIA

Non-Executive Non-Independent Director
Mr. Vishal Mahadevia is the Managing Director, Head of India and a member of the
Executive Management of Warburg Pincus. Prior to joining Warburg Pincus in 2006, he
was a Principal at Greenbriar Equity Group, a fund focussed on Private Equity investments
in the transportation sector. Prior to that, Mr. Mahadevia worked at Three Cities Research,
a New York-based Private Equity Fund and as a Consultant with McKinsey & Company.
He received a B.S. in Economics with a concentration in Finance & B.S. in Electrical
Engineering from the University of Pennsylvania.
80 IDFC FIRST Bank

CORPORATE OVERVIEW
MR. AJAY SONDHI
STATUTORY REPORTS
Non-Executive Non-Independent Director
Mr. Ajay Sondhi, is a 2017 Fellow, Harvard Advanced Leadership Initiative, MBA - Finance
from JBIMS, Mumbai University, and B.A. in Economics (Honors) from St. Stephens
College, Delhi University. He is a seasoned Financial Services and Board professional
with extensive Indian and global experience. Most recently he was Founder & CEO of
Sentinel Advisors Pte Ltd, Singapore, a boutique business and strategy advisory firm.
He was previously MD and Regional Manager for PWM at Goldman Sachs, Singapore.
He has had a long career in banking, and has held several senior leadership roles in the
industry in India and overseas.
MR. V VAIDYANATHAN
Managing Director and CEO
Mr. V Vaidyanathan worked with Citibank and ICICI Group. He then acquired a stake
in an existing listed small wholesale NBFC, concluded a Leveraged Management
Buyout of the company, recapitalised the company by raising fresh equity, and founded
Capital First (2012) as a new entity and brand. He then turned around the company
and took it to significant scale and profitability and multiplied the market cap manifold.
He later agreed to merge Capital First with IDFC Bank and became the MD & CEO of
the merged entity renamed as IDFC FIRST Bank. He is currently working on the vision
of the bank “To build a world class bank in India, guided by ethics and customer-first
values, powered by technology, and be a force for social good.”

Directors’ Report
Dear Shareholders,
Your Board of Directors are pleased to present the Seventh Annual Report of IDFC FIRST Bank Limited (‘IDFC FIRST Bank’
or the ‘Bank’) together with the Audited Financial Statements for the financial year ended March 31, 2021.
FINANCIAL HIGHLIGHTS
(` in crore)
Particulars FY 2021 FY 2020
Deposits 88,688 65,108

Borrowings 45,786 57,397
Investments 45,412 45,405
Advances 100,550 85,595
Total Assets / Liabilities 163,144 149,200
Total Income 18,222 18,030
Profit before Depreciation and Tax 805 (2,073)
Net Profit 452 (2,864)
Appropriations
Transfer to Statutory Reserve 114 -
Transfer to Capital Reserve 149 166
Transfer to Special Reserve 24 -
Transfer from Investment Reserve 335 -
Dividend paid (includes tax on dividend) - -
Balance in profit and loss account carried forward (3,729) (3,560)
Capital adequacy ratio (Basel III) 13.77% 13.38%

Gross NPA % 4.15% 2.60%
Net NPA % 1.86% 0.94%
Return on Assets 0.28% (1.79%)
STATE OF AFFAIRS OF THE BANK decreased by 27% to ` 10,808 crore as on March

31, 2021 from ` 14,840 crore as on March 31, 2020.
The Bank has successfully diversified its business mix and
added new revenue streams after the Merger. Now it has 2. Strong Growth in Retail Liabilities:
expanded its reach to serve new customer segments both • The Total CASA Deposits increased to ` 45,896
on the retail as well as wholesale side of the business. The crore as on March 31, 2021 from ` 20,661 crore as
achievements during the FY 2020-21 are mentioned below – on March 31, 2020, Y-o-Y increase of 122%.
1. Strong Growth in Retail Assets: • CASA Ratio improved to 51.75% as on March 31,
• Retail Book increased 29% Y-o-Y to ` 73,673 crore 2021 from 31.87% as on March 31, 2020.
as on March 31, 2021 from ` 57,310 crore as on • Strong CASA growth of ` 25,235 crore during
March 31, 2020. FY21 and ` 5,333 crore during Q4 FY21.
• Retail Book constitutes 63% of Funded Loan • Retail Deposits (Retail CASA and Retail Term
Assets as on March 31, 2021 compared to 54% Deposits) increased to ` 63,894 crore as on March
as on March 31, 2020. Including the Priority 31, 2021 from ` 33,924 crore as on March 31,
Sector Lending (‘PSL’) buyout portfolio, where the 2020, Y-o-Y increase of 88%.
underlying assets are retail loans, the retail assets
• IDFC FIRST Bank Fixed Deposit program was
contribution to overall funded assets stood at 67%
assigned highest safety rating of ‘FAAA’ by CRISIL.
as of March 31, 2021.
• Bank consciously reduced Certificate of Deposits
• Wholesale Book decreased by 14% to ` 33,920
(‘CD’) to ` 5,964 crore as on March 31, 2021 from
crore as on March 31, 2021 from ` 39,388 crore as
` 7,111 crore as on March 31, 2020, a Y-o-Y
on March 31, 2020.
reduction of 16%, as CD are short term institutional
• Within Wholesale Book, the Infrastructure loans borrowing in nature, and replaced them with Retail
82 IDFC FIRST Bank

FD and CASA money, thus strengthening and 7. Franchisee:
diversifying the liabilities significantly. • As on March 31, 2021, the Bank has built a national
3. Strong growth in Core Earnings: footprint through the operation of 596 branches
CORPORATE OVERVIEW
• Strong NII Growth: For the full year, total Net (out of which 371 are Urban Branches and 225
Interest Income (‘NII’) increased by 21% to ` 7,380 are Rural Branches) across many cities in India,
crore in FY21 from ` 6,076 crore in FY20. 655 Corporate Business Correspondent (‘BC’)
branches, 592 ATMs, 85 Recyclers, 3 Central
• Strong NIM improvement: The Net Interest Margin Processing Centers and 1 Clearing Hub.
(‘NIM’) for the full year FY21 was at 4.98% as
compared to 3.91% in FY20. Points of Presence comparison chart:
• Strong growth in Total Income (NII + Fees and Particulars FY 2020-21 FY 2019-20
Other Income + Trading Gain): The total income 371 295
Urban Bank Branches
for the full year increased by 24% to ` 10,207 crore
Rural Bank Branches 225 169
in FY21 from ` 8,237 crore in FY20.
STATUTORY REPORTS
ATMs* 592 356
• Core Pre-provision Operating Profit (PPOP Net of
treasury income and impact of interest on interest Recyclers 85 -
reversal): For the full year, the Core PPOP grew by Asset Service Branches 151 128
11% to ` 1,964 crore in FY21 from ` 1,764 crore in Rural BC Branches 384 380
FY20. (IDFC FIRST Bharat Limited)
• Provision: For the full year, Total Provisions stood Other BC Branches 271 272
at ` 2,638 crore in FY21 as compared to ` 4,754 *Excluding white label ATMs
crore in FY20. • The Bank offers a wide gamut of products
• Profit After Tax: The Net Profit for the full year to cater to the needs of customers from all
FY21 was ` 452 crore as compared to Net Loss of segments which can be viewed on our website:
` 2,864 crore in FY20. www.idfcfirstbank.com.
4. Asset Quality of the Bank: UPDATE ON IMPACT OF COVID-19
• Bank’s Gross NPA ratio as of March 31, 2021 stood Towards the end of 2020 and early 2021, India saw
at 4.15% as compared to 2.60% as of March 31, considerable decrease in new COVID-19 cases. But major
2020. Pandemics have multiple waves of infection and being aware
• Bank’s Net NPA ratio as of March 31, 2021 stood of the same, the Business Continuity Management (‘BCM’)
at 1.86% as compared to 0.94% as of March 31, team continued to monitor and create awareness among
2020. staff and management on the related threat to the Bank’s
services and its customers. In the later weeks of February
• Provision Coverage Ratio (PCR) was 56.23% as
2021, India saw the 2nd wave of the COVID-19 Pandemic hit
of March 31, 2021 as compared to 64.53% as of
the country.
March 31, 2020.
The continued and proactive review by the BCM team on the
5. Asset Quality on Retail Loan Book:
evolving nature of the pandemic helped the Bank take timely
• Retail Asset Gross NPA ratio stood at 4.01% as actions and minimize the impact of the 2nd wave.
of March 31, 2021 as compared to 1.77% as of
Initiative undertaken to combat 2nd wave of COVID-19
March 31, 2020.
Pandemic –
• Retail Asset Net NPA ratio stood at 1.90% as of
• Proactive & Inclusive Communication: The
March 31, 2021 as compared to 0.67% as of
Bank continues its communication with its staff on
March 31, 2020.
the Pandemic, creating awareness on the threat,
6. Capital Adequacy: precautions to take, the Bank’s Pandemic Assistance
• With Preferential Issue of ` 2,000 crore (approx.) Program, government guidelines/restrictions and the
during June 2020, our Bank availed an insurance Bank’s strategy to address the ongoing situation. For
for an emerging COVID-19 situation, that this multiple modes of communications are employed
positioned itself for strong growth going forward. - electronic (SMS, E-mail, Screensavers) and physical
(Standees/posters etc.) to reach the staff. Further,
• Capital Adequacy Ratio stood at 13.77% with CET- managers are encouraged to have frequent sessions
1 Ratio at 13.27% as of March 31, 2021. with staff to understand and address any issues
• The Bank has raised equity capital of ` 3,000 crore considering that the staff has been working remotely
(approx.) through Qualified Institutions Placement for most parts of the Pandemic.
(‘QIP’) on April 06, 2021, including this, the Capital • COVID-19 Policies & Assistance Programs: The
Adequacy Ratio stands at 16.32% with CET-1 ratio Bank last year implemented various policies targeted
at 15.62%, as on March 31, 2021. towards employee health & safety like the Work from

Home Policy & Quarantine Policy. Both these policies guides and provides resources to help address the
were activated & implemented before the lockdown in challenges of the Pandemic, keeping in front the
India, thus ensuring Bank was well prepared to address customer viz. CUSTOMER FIRST!
the effects of the Pandemic and the Lockdowns. The
• CSR Initiatives: We have undertaken 5 key initiatives in
21 days paid Quarantine Leaves ensured infected
response to the severe second wave of COVID-19 that
employee recovers well and do not infect other staff or
has impacted the marginalized across urban and rural
customers.
India. In order to emphasise urgency for COVID-19
Further, as Pandemic started having impact on our vaccination, and to clear misconceptions relating to it,
staff, the Bank came out with a “COVID-19 Assistance the bank reached out to over five million of its customers
Program” to help its staff and their families. The in semi-urban and rural locations digitally using
program addressed multiple issues affecting staff – animated films. In our other programs, we provided
Reimbursement of the cost of testing & vaccination, a Oxygen Concentrators to rural hospitals, Cash Relief
24x7 Doctor Helpline to allay their doubts/concerns, support to those who lost their bread-winner to the
discounted Pricing for Home Isolation Packages and deadly disease, mask distribution and also initiated a
hospitalization assistance for employees and their livelihood program to help families earn a living despite
family on best effort basis. The Bank also launched lockdown restrictions by means of mask-making.
countrywide vaccination drive for its staff and their
The Bank continues to monitor the evolving environment of
dependents thus ensuring staff and families are safe.
the Pandemic (potential 3rd wave) with the help of its BCM
• Safe & Secure Operating Environment: The team and will take necessary steps and do course correction
government came out with specific guidelines on as required in the interests of its customers and its staff!
keeping bank premises safe and secure last year.
The Bank implemented these guidelines and ensured DIVIDEND
that our premises are sanitized and deep cleaned The Board of Directors did not recommend any dividend on
frequently so that they are safe and secure both for equity shares for the FY 2020-21, in absence of distributable
our staff and our customers. Specialized in-house and profits, in terms of the RBI Guidelines.
external partners are involved in ensuring the same
daily. Further, branches are closed for pre-defined In accordance with Regulation 43A of the Securities and
periods whenever there is a positive COVID-19 case Exchange Board of India (Listing Obligations and Disclosure
in the branch and fully sanitized. Our Bank is fully Requirements) Regulations, 2015, as amended (‘SEBI
compliant to government laid down guidelines on use Listing Regulations’), our Bank has formulated a Dividend
of mask, social distancing and relevant controls across Distribution Policy, which ensures a fair balance between
our offices/branches in the country. rewarding its Shareholders and retaining enough capital for
the Bank’s future growth.
• Business Continuity & Course Correction: The
Business Continuity Program stood up well against This Policy is available on the Bank’s website at
the Pandemic last year. The Pandemic plan has been www.idfcfirstbank.com under the ‘Investors’ section.
further enhanced with the learnings e.g. like the Bank’s PREPAREDNESS ON IMPLEMENTATION OF INDIAN
continuity strategy has embraced the remote working
ACCOUNTING STANDARDS (‘IND-AS’)
and split site operations as a primary strategy, Bank’s
branches & team operate per changing nature of the The Reserve Bank of India (‘RBI’) vide Circular RBI/2018-
operating environments and government directives 2019/146 DBR. BP.BC.No.29/21.07.001/2018-19 dated
seamlessly with staff on rotation. The same continues March 22, 2019 has decided to defer the implementation of
now as we see the impact of the 2nd wave of COVID-19 IND-AS for banks till further notice.
Pandemic.
The Bank has made considerable progress on IND-AS
• Sprucing Up Technology Infrastructure: Our implementation and in fact, since the Bank is an associate
technology infrastructure has been the backbone of company of IDFC Limited (holding company of IDFC
the Bank’s fight against the Pandemic. It provided the Financial Holding Company Limited, Promoter) which is a
remote access platform that helped critical teams to Non-Banking Finance Company (‘NBFC’) that falls under
perform business activities from the secure confines of the ‘IND-AS Road map’ mandatorily applicable from
their homes and ensure continuity of critical business April 01, 2018. Accordingly, the Bank has been preparing
functions. The remote access technology supporting and submitting special purpose ‘Fit for Consolidation’
the Bank has been further enhanced over the course of consolidated financials under IND-AS to IDFC Limited
the last year to ensure the Bank can support more staff with the transition date as April 01, 2017. Under the RBI
in the remote operating model. guidelines, banks are not allowed to early adopt IND-AS and
should be guided by the RBI guidelines. Accordingly, the
• Reporting: The overall progress of the Pandemic
general purpose financial statements of the Bank presented
continues to be reported periodically to the
in the Annual Report are not under IND-AS.
management, the Board and their advice is taken from
time to time. As required, the management assesses, Further, the Bank also submits quarterly Standalone
84 IDFC FIRST Bank

Proforma financials in the format as prescribed by the RBI. 4. Accounting impact on the application of IND-AS at the
These submissions are reviewed by the management and transition date shall be recognized in Equity (Reserves
the Audit Committee of the Bank before submission to the and Surplus) as and when it becomes statutorily
RBI. The working group of the Bank prepares quarterly pro- applicable to the Bank.
CORPORATE OVERVIEW
forma IND-AS financials as required by the RBI.
SHARE CAPITAL
The implementation of IND-AS is expected to result in
significant changes to the way the Bank prepares and Authorised Share Capital
presents its financial statements. The areas that are expected In order to meet Bank’s growth objectives, business
to have significant accounting impact on the application of expansion plans and to further strengthen its financial
IND-AS are summarized below: position, the Bank felt the need to have adequate Authorised
Capital in order to infuse additional funds in the form of
1. Financial assets (which include advances and further capitalization and to generate long term resources
investments) shall be classified under amortized by issuing securities.
cost, fair value through other comprehensive income
Pursuant to approval of the Board of Directors of the Bank at
STATUTORY REPORTS
(a component of Reserves and Surplus) or fair value
through profit/ loss categories on the basis of the their meeting held on May 01, 2020, and in accordance with
nature of the cash flows and the intention of holding the the consent of the shareholders and other requisite approvals,
financial assets. the Authorised Share Capital of the Bank was increased to
` 75,38,00,00,000 (Rupees Seven Thousand Five Hundred
2. Interest will be recognized in the income statement Thirty Eight Crore only) divided into 7,50,00,00,000 (Seven
using the effective interest method, whereby the Hundred Fifty Crore) equity shares of ` 10 each and 38,00,000
coupon, fees net of transaction costs and all other (Thirty Eight Lakh) preference shares of ` 100 (Rupees One
premiums or discounts will be amortized over the life of Hundred only) each, by creation of additional 2,17,50,00,000
the financial instrument. (Two Hundred Seventeen and Fifty Lakh) equity shares of `
3. The impairment requirements of IND-AS 109, Financial 10 each and the consequent alteration of its Memorandum of
Instruments, are based on an Expected Credit Loss Association. Further, Reserve Bank of India had vide its letter
(ECL) model that replaces the incurred loss model dated May 10, 2020, acknowledged the proposed increase
under the extant framework. The Bank will be generally in Authorised Share Capital and consequent amendment
required to recognize either a 12-Month or Lifetime ECL, to be carried out in the Memorandum of Association of the
depending on whether there has been a significant Bank, subject to compliance with relevant statutes and
increase in credit risk since initial recognition. IND-AS circulars/ instructions/ guidelines issued by RBI from time
109 will change the Bank’s current methodology for to time.
calculating the provision for standard assets and non- As on March 31, 2021, the Authorised Share Capital of the
performing assets (NPAs). The Bank will be required Bank was ` 75,38,00,00,000 comprising of 7,50,00,00,000
to apply a three-stage approach to measure ECL on equity shares of ` 10 each and 38,00,000 preference shares
financial instruments accounted for at amortized cost of ` 100 each.
or fair value through other comprehensive income.
Financial assets will migrate through the following three Paid-up Equity Share Capital
stages based on the changes in credit quality since Issue of Equity Shares on Preferential basis (‘Preferential
initial recognition: Issue’)
Stage 1: 12 Months ECL - For exposures which have not Our Bank has grown steadily on its business and financial
been assessed as credit-impaired or where there parameters during the recent years. Our Bank is one
has not been a significant increase in credit risk of India’s fastest growing private sector banks with an
since initial recognition, the portion of the ECL expanding presence across the country.
associated with the probability of default events Basis the approval of the Board of Directors of the Bank at
occurring within the next twelve months will need their meeting held on May 01, 2020 and by virtue of special
to be recognized. resolution passed by the shareholders of the Bank through
Stage 2: Lifetime ECL - For credit exposures where there postal ballot on June 03, 2020, the Allotment, Transfer and
has been a significant increase in credit risk since Routine Matters Committee had at its meeting held on
initial recognition but are not credit-impaired, a June 12, 2020, approved the issue and allotment of
lifetime ECL will need to be recognized. 86,24,40,704 (Eighty-Six Crore Twenty-Four Lakh Forty
Thousand Seven Hundred and Four) equity shares of face
Stage 3: Lifetime ECL - Credit Impaired Financial assets value of ` 10 each fully paid-up, at a price of ` 23.19 per
will be assessed as credit impaired when one or Equity Share (including premium of ` 13.19 per share),
more events having a detrimental impact on the aggregating to ~ ` 2,000 crore on a preferential basis, the
estimated future cash flows of that asset have offer/issue price being determined in accordance with the
occurred. For financial assets that have become applicable provisions of the Securities and Exchange Board
credit impaired, a lifetime ECL will need to be of India (Issue of Capital and Disclosure Requirements)
recognized. Regulations, 2018, as amended (‘SEBI ICDR Regulations’).

Qualified Institutions Placement (‘QIP’) up equity share capital of our Bank was ` 56,75,84,98,550
Basis approval of the Board of Directors of the Bank at their comprising 5,67,58,49,855 equity shares of ` 10 each.
meeting held on February 18, 2021 and by virtue of special
Subsequent to the year under review and as on date of this
resolution passed by the shareholders of the Bank through
report, the Bank has allotted 29,13,740 equity shares of ` 10
postal ballot on March 21, 2021, the Capital Raising Committee
each to the allottees upon exercise of stock options pursuant
of the Board (the ‘Capital Raising Committee’) had at its
to IDFC FIRST Bank ESOS-2015. Post the said allotment,
meeting held on April 06, 2021 approved the issue and
the paid-up Equity Share Capital of the Bank stands at
allotment of 52,31,03,660 (Fifty-Two Crore Thirty-One Lakh
620,18,67,255 equity shares of ` 10 each, aggregating to `
Three Thousand Six Hundred Sixty) equity shares of face value
6201,86,72,550.
of ` 10 each to Qualified Institutional Buyers (‘QIBs’) at an
issue price of ` 57.35 per Equity Share (including a premium of Our Bank has not issued any equity shares with differential
` 47.35 per share) aggregating to ~ ` 3,000 crore. Further, the voting rights.
list of allottees who had been allotted more than five percent
CAPITAL ADEQUACY
(5%) of the equity shares in the QIP Issue were as below:
Currently, the Bank is required to maintain a minimum total
No. of Equity % of total Equity
Name of the Investors/ Allottees Shares allotted Shares offered in
Capital Adequacy Ratio of 10.875%, of which minimum Tier
the QIP Issue 1 is 8.875% including Capital conservation buffer.
Bajaj Allianz Life Insurance 6,26,85,260 11.98 Our Bank is well capitalised and has a Capital Adequacy
Company Ltd. Ratio under Basel III as at March 31, 2021 of 13.77% (as
Baillie Gifford Emerging 5,95,74,979 11.39 against the RBI minimum requirement of 10.88%) & with
Markets Equities Fund Tier-I Capital Adequacy Ratio being 13.27%.
Baillie Gifford Pacific Fund 46,792,068 8.95
a Sub Fund of Baillie Gifford Capital Adequacy Ratio of the Bank, including additional
Overseas Growth Funds equity capital of ` 3,000 crore raised through QIP on April 6,
BNP Paribas Arbitrage - ODI 45,074,080 8.62 2021 and calculated on figures as on March 31, 2021, was
City of New York Group 44,606,692 8.53 strong at 16.32% with CET-1 Ratio at 15.62%.
Trust
At such Capital Adequacy, our Bank shall be one of the
Baillie Gifford Emerging 35,524,397 6.79
highest CET-1 capitalized banks in the country, which is far
Markets Growth Fund a Sub
higher than the regulatory requirements.
Fund of Baillie Gifford Overs
HDFC Life Insurance 34,873,580 6.67 At high levels of Capital Adequacy, our Bank will continue
Company Limited to enjoy the highest levels of confidence from the Indian
TATA AIA Life Insurance 30,514,380 5.83 financial ecosystem including capital market participants,
CO LTD-Whole Life MID depositors and our customers.
Cap Equity Fund-ULIF 009
04/01/07 With the strong opportunities in India (India is an emerging
economy and an underserved and under-penetrated
Both, the Preferential Issue and the QIP was made pursuant market), the strong asset track record (combined with
to applicable provisions of the Companies Act, 2013, read Capital First and IDFC Bank) combined with robust liability
with relevant rules made thereunder, in accordance with franchise, our Bank is well placed to grow its business in the
the guidelines, rules and regulations of the Securities and future. Also, the capital raise does give the buffer on account
Exchange Board of India (‘SEBI’), including SEBI ICDR of unforeseen circumstances on account of COVID-19.
Regulations, SEBI Listing Regulations, the relevant provisions
of the Banking Regulation Act, 1949, the rules, circulars, As a Bank, it is our endeavor to be strong custodians of
directions and guidelines issued by the RBI, and subject to public depositors/ shareholders and to further strengthen
the MCA Circulars issued in December 2020. The Bank has the balance sheet immensely.
ensured to comply with all legal and statutory formalities. RATINGS
Post the above QIP Issue, the issued, subscribed and paid- Credit rating details for 80CCF Long Term Infrastructure
up equity share capital of our Bank as on April 06, 2021 Bonds, Private Placement Bonds and other instruments
was ` 61,98,95,35,150 consisting of 6,19,89,53,515 equity of IDFC FIRST Bank is available on the Bank’s website at
shares of ` 10 each. www.idfcfirstbank.com under the ‘Investors’ section.
Allotment of Equity Shares pursuant to exercise of Stock Our Bank is rated ‘FAAA’ by CRISIL for ` 50,000 crore Fixed
Options Deposit Program, which is the highest level of safety rating
During FY 2020-21, 35,06,135 equity shares of ` 10 each by CRISIL.
were issued and allotted to the eligible employees of the During the FY 2020-21, our Bank has not issued any Senior
Bank on exercise of Options granted under IDFC FIRST Unsecured Redeemable Long-Term Bonds in the nature of
Bank Limited Employee Stock Option Scheme 2015 (‘IDFC Non-Convertible Debentures and/ or non-equity regulatory
FIRST Bank ESOS-2015’). capital instrument.
As on March 31, 2021, the issued, subscribed and paid-
86 IDFC FIRST Bank

DEPOSITS In addition thereto, the Annual Report of IDFC FIRST Bharat
containing therein its audited financial statements has also
Being a Banking Company, the disclosures required as per been hosted on the Bank’s website at www.idfcfirstbank.com
Rule 8(5)(v) & (vi) of the Companies (Accounts) Rules, 2014, under the ‘Investors’ section.
CORPORATE OVERVIEW
read with Sections 73 and 74 of the Companies Act, 2013
are not applicable to our Bank. IDFC FIRST Bank has only one Associate Company as on
March 31, 2021, viz Millennium City Expressways Private
As per the applicable provisions of the Banking Regulation Limited, in which it holds 29.98% equity stake.
Act, 1949, details of the Bank’s deposits have been included
under Schedule 3 - Deposits, in the preparation and The highlights on performance of the Subsidiary and
presentation of the financial statements of the Bank. Associate Company and their contribution to the overall
performance of the Bank can be referred to in Form AOC-1,
LOANS, GUARANTEES OR ACQUISITION OF appended as ANNEXURE 1.
SECURITIES
PROMOTER
Pursuant to Section 186 (11) of the Companies Act, 2013,
STATUTORY REPORTS
the provisions of Section 186 of the Companies Act, 2013, Pursuant to the RBI Guidelines for ‘Licensing of New Banks
except sub-section (1), do not apply to a loan made, in the Private Sector’ dated February 22, 2013, the Promoter
guarantee given or security provided or any investment - IDFC Financial Holding Company Limited (‘IDFC FHCL’)
made by a banking company in the ordinary course of is required to hold a minimum of 40% of the total paid-up
business. The particulars of investments made by the Bank voting equity capital of the Bank which shall be locked in
are disclosed in Schedule 8 of the Financial Statements as for a period of five years from the date of commencement of
per the applicable provisions of the Banking Regulation Act, business of the Bank i.e. from October 01, 2015. Further, the
1949. shareholding by IDFC FHCL in the Bank in excess of 40%
of the total paid-up voting equity capital was required to be
PERFORMANCE AND CONTRIBUTION OF brought down to 40% within three years from the date of
SUBSIDIARY AND ASSOCIATE COMPANIES commencement of business of the Bank. Also, in the event
of the Bank raising further voting equity capital during the
IDFC FIRST Bank has one wholly owned Subsidiary
first five years from the date of commencement of business,
Company, namely IDFC FIRST Bharat Limited (‘IDFC FIRST
IDFC FHCL should continue to hold 40% of the enhanced
Bharat‘).
total voting equity capital of the Bank for a period of five
IDFC FIRST Bharat is acting as a Business Correspondent years from the date of commencement of business of the
(‘BC’) for distribution of the products of IDFC FIRST Bank Bank. Accordingly, as and when equity shares were allotted
and has given an added momentum to the financial inclusion by IDFC FIRST Bank pursuant to the ESOP Scheme or by
plan of the Bank. way of any other allotment, IDFC FHCL used to purchase
new shares for maintaining 40% shareholding in the Bank.
During FY 2020-21, IDFC FIRST Bharat has sourced loans
worth ` 6,220 crore, of which ` 4,162 crore is in Joint Liability The lock-in restrictions on IDFC FHCL for holding minimum
Group Loans (‘JLG’), ` 555 crore is in Micro Enterprises Loans 40% of the total paid-up voting equity capital of the Bank
(‘MEL’), ` 1,110 crore is in Micro Housing Loan (‘MHL’), ` 206 ceased to be applicable with effect from October 01,
crore is in Two Wheeler Loans, ` 17 crore is in Housing Loan 2020. However, pursuant to applicable provisions of law,
and ` 95 crore is in Loan Against Property products as a BC 34,49,76,282 equity shares of the Bank allotted to IDFC
to IDFC FIRST Bank. During the year consumer durable and FHCL during their subscription of preferential issue is
personal loan products, were launched and ` 71 crore and locked-in for 3 years i.e. with effect from June 26, 2020 upto
` 4 crore respectively were disbursed. The year-end Assets June 25, 2023.
Under Management (‘AUM’) of IDFC FIRST Bharat as of
As on March 31, 2021, IDFC FHCL held 2,26,89,37,489
March 31, 2021 has increased to ` 7,811 crore from ` 5,908
equity shares in Bank constituting 39.98% of the total paid-
crore as on March 31, 2020.
up voting equity capital of the Bank. As on April 06, 2021
IDFC FIRST Bank’s policy for determining material (post QIP), the shareholding of IDFC FHCL was 36.60% of
subsidiaries is available on the Bank’s website at the total paid-up voting equity capital of the Bank. As on date
www.idfcfirstbank.com under the ‘Investors’ section. of this report, the equity shareholding of IDFC FHCL remains
same.
In accordance with the provisions of Section 129(3) of the
Companies Act, 2013 read with the Companies (Accounts) EMPLOYEES
Rules, 2014, the Bank has prepared its consolidated financial
statements, which forms part of this Annual Report. The statement containing particulars of employees as
required under Section 197(12) of the Companies Act, 2013
Further, pursuant to Section 136(1) of the Companies Act, read with Rule 5(2) of the Companies (Appointment and
2013, the Annual Report of the Bank, containing therein its Remuneration of Managerial Personnel) Rules, 2014 may be
standalone and consolidated financial statements has been obtained by the shareholders by writing to the Head - Legal
hosted on the Bank’s website at www.idfcfirstbank.com and Company Secretary of our Bank.
under the ‘Investors’ section.

Disclosures pertaining to remuneration and other details The NRC conducts due diligence before appointment of
as required under Section 197(12) of the Companies Act, Directors and ensures adherence to ‘Fit and Proper’ criteria,
2013 read with Rule 5(1) of the Companies (Appointment as prescribed by RBI.
and Remuneration of Managerial Personnel) Rules, 2014 is
The Bank received instructions from Department of
appended as ANNEXURE 2.
Financial Services, Ministry of Finance, Government of
EMPLOYEE STOCK OPTION SCHEME India nominating Dr. Sanjay Kumar (DIN 08764419) as a
Government Nominee Director on the Board of the Bank in
The Employee Stock Option Scheme (‘IDFC FIRST Bank place of Ms. Anindita Sinharay (DIN 07724555). Based on
ESOS - 2015’/ ‘ESOS’) was framed with an object of the recommendation of the NRC, the Board of Directors of
encouraging higher participation on the part of employees the Bank had appointed Dr. Sanjay Kumar as a Government
in the Bank’s financial growth and success. An effective Nominee Director (Additional Director) of the Bank with effect
stock option scheme enables retention of talent and aligning from June 22, 2020 and accordingly Ms. Anindita Sinharay
employee interest to that of the Shareholders. ceased to be a Government Nominee Director with effect
There were 23,41,93,359 stock options outstanding at the from June 22, 2020.
beginning of FY 2020-21. During FY 2020-21, 4,21,32,000 The shareholders at 6th AGM of the Bank held on July 30,
stock options were granted to the eligible employees under 2020 approved the appointment of Dr. Sanjay Kumar
IDFC FIRST Bank ESOS-2015.
as a Government Nominee Director (Non-Executive Non-
Further, 1,30,19,110 stock options had lapsed/ forfeited, Independent Director), with effect from June 22, 2020.
and 35,06,135 stock options were exercised during the year
During the year under review, Dr. Rajiv Lall (DIN 00131782)
ended March 31, 2021. Accordingly, 25,98,00,114 stock
tendered his resignation as Part-Time Non-Executive Chairman
options remained outstanding as on March 31, 2021. All
from the Board of IDFC FIRST Bank effective from September
stock options vests in a graded manner and are required
04, 2020 citing his prolonged personal health issues.
to be exercised within a specific period in accordance with
IDFC FIRST Bank ESOS-2015 and Securities and Exchange Pursuant to Reserve Bank of India Circular Ref:DBOD.
Board of India (Share Based Employee Benefits) Regulations, No.BC.24/08.139.001/2002-03 dated September 9, 2002
2014, as amended (‘SEBI SBEB Regulations’). on ‘Implementation of Recommendations of the Consultative
The Bank has used the intrinsic value method to account Group of Directors of Banks/ Financial Institutions’ (‘RBI
for the compensation cost of Stock Options to employees of Circular’), and in view of attaining an age of 70 years, Mr.
the Bank. Intrinsic value is the amount by which the quoted Anand Sinha (DIN 00682433) ceased to be an Independent
market price of the underlying share on the date, prior to Director of the Bank with effect from February 02, 2021.
the date of the grant, exceeds the exercise price on the The Bank had received a communication dated March
Option. IDFC FIRST Bank ESOS - 2015 is administered by 25, 2021 from Department of Financial Services, Ministry
the Nomination and Remuneration Committee (‘NRC’) of the of Finance of Government of India (‘GoI’), mentioning that
Board of the Bank. GoI holds one (1) seat on the Board of the Bank and since,
There has been no material change in IDFC FIRST Bank the GoI has been minority shareholder in Bank and is not
ESOS - 2015 during FY 2020-21 and the said IDFC FIRST involved in day to day operation of the Bank, it has been
Bank ESOS - 2015 is in compliance with the SEBI SBEB decided to withdraw its Board representation from the Board
Regulations. of the Bank. Accordingly, the Board vide circular resolution
dated March 25, 2021 noted and approved the cessation of
The details and disclosures with respect to ESOS as Dr. Sanjay Kumar as a Government Nominee Director on the
required under SEBI SBEB Regulations and circulars issued Board of the Bank with effect from March 25, 2021.
thereunder, have been uploaded on the Bank’s website at
www.idfcfirstbank.com under the ‘Investors’ section. Subsequent to the year under review, based on the
recommendation of the NRC, the Board at its meeting
Further, disclosure as per the ‘Guidance Note on Accounting held on April 30, 2021, approved the appointment of Mr. S.
for Employee Share-based Payments’ issued by the Institute Ganesh Kumar (DIN 07635860) as an Additional Director
of Chartered Accountants of India, are appearing in the in the category of Independent Director of the Bank for a
Notes to the Standalone Financial Statements of IDFC FIRST
period of five (5) consecutive years, effective from April 30,
Bank, forming part of this Annual Report.
2021 to hold office up to April 29, 2026 (both days inclusive),
DIRECTORS AND KEY MANAGERIAL PERSONNEL subject to approval of the shareholders of the Bank and other
applicable statutory/ regulatory approvals. Further, on May
Appointment & Cessation 08, 2021, the Board of Directors on the recommendation of
All appointments of Directors are made in accordance with the NRC, approved the re-appointment of Mr. Pravir Vohra
the relevant provisions of the Companies Act, 2013 and the (DIN 00082545) as an Independent Director of the Bank for a
Rules framed thereunder, the SEBI Listing Regulations, the second term of five (5) consecutive years, commencing from
Banking Regulation Act, 1949 and the rules, guidelines and August 01, 2021 up to July 31, 2026 (both days inclusive),
circulars issued by the RBI from time to time.
subject to approval of the shareholders of the Bank and
other applicable statutory/ regulatory approvals.
88 IDFC FIRST Bank

Further, the Board of Directors of the Bank at its meeting held FRAMEWORK FOR APPOINTMENT OF DIRECTORS
on June 16, 2021, based on the recommendation of the NRC
The Bank has in place a framework for Board Diversity, Fit &
and performance evaluation, as applicable, have approved
Proper Criteria and Succession Planning for appointment of
CORPORATE OVERVIEW
the re-appointment of Mr. V. Vaidyanathan (DIN 00082596)
Directors on the Board of the Bank.
as the Managing Director & Chief Executive Officer (‘MD &
CEO’) for a period of three years with effect from December FAMILIARISATION PROGRAMMES FOR BOARD
19, 2021, subject to the approval of the shareholders and the MEMBERS
Reserve Bank of India. The approval of the shareholders in
this regard is being sought at the ensuing AGM of the Bank. At the time of appointment, all Directors of our Bank are
familiarized with their roles, responsibilities, rights and duties
The details of the Director being re-appointed is set out in along with a brief overview of our Bank’s operations in a
the Notice of the ensuing AGM of the Bank. nutshell.
Brief profiles of all the Directors of the Bank are available The Board members are further provided with necessary
on the Bank’s website at www.idfcfirstbank.com under the documents, reports and internal policies to enable them to
STATUTORY REPORTS
‘Board of Directors’ section. familiarize with the Bank’s procedures and practices.
None of the Directors of the Bank are disqualified in Periodic presentations are made at the Board and Committee
accordance with Section 164 of the Companies Act, 2013. meetings on business and performance of the Bank, global
business environment, business strategy and associated
Further, the Bank had received declaration from all the risks, responsibilities of the Directors etc.
Independent Directors (‘IDs’), at the time of appointment and
also at the first meeting of the Board of Directors held in FY Detailed presentations on the Bank’s business and updates
2020-21, that they meet the criteria of independence specified thereon were made at the meetings of the Board and
under sub-section (6) of Section 149 of the Companies Act, Committees held during the year.
2013, read with Rule 5 of the Companies (Appointment and The details of the said programmes are available on
Qualification of Directors) Rules, 2014 and Regulation 16(1) the Bank’s website at www.idfcfirstbank.com under the
(b) of the SEBI Listing Regulations, for holding the position ‘Investors’ section.
of ID and that they shall abide by the ‘Code for Independent
Directors’ as per Schedule IV of the Companies Act, 2013. BOARD EVALUATION
In the opinion of the Board, the IDs possess the requisite The Board of Directors (‘Board’) has carried out an annual
integrity, experience, expertise and proficiency required evaluation of the Board, Board Committees, and Individual
under all applicable laws and the policies of the Bank. Directors pursuant to the provisions of the Companies Act,
Further, all the IDs of the Bank have complied and affirmed 2013 and the SEBI Listing Regulations for the financial year
to abide by Rule 6 (Creation and Maintenance of Databank 2020-21.
of Persons Offering to become Independent Directors) of The detailed process indicating the manner in which the
the Companies (Appointment and Qualification of Directors) annual evaluation has been carried out pursuant to the SEBI
Rules, 2014, as amended, and have also declared their Listing Regulations and Companies Act, 2013 is provided in
enrollment in the databank of Independent Directors the Corporate Governance Report, which forms part of this
maintained by Indian Institute of Corporate Affairs (‘IICA’). Annual Report.
Further, it is reported by M/s. Makarand M. Joshi & Co., NUMBER OF MEETINGS OF THE BOARD
Practicing Company Secretaries, Bank’s Secretarial Auditor
that during the financial year under review, the Board The Board met thirteen (13) times during FY 2020-21 viz., May
of Directors of the Bank is duly constituted with proper 01, 2020, May 22, 2020, July 24, 2020, July 28, 2020, August
28, 2020, September 11, 2020, October 08, 2020, October
balance of Executive Director, Non-Executive Directors and
31, 2020, January 09, 2021, January 30, 2021, February 18,
Independent Directors. The changes in the composition of
2021, March 22, 2021 and March 31, 2021; details of which
the Board of Directors that took place during the period
are given in the Corporate Governance Report, which forms
under review were carried out in compliance with the
part of this Annual Report. The maximum interval between
provisions of the Companies Act, 2013, and other applicable
any two consecutive meetings did not exceeded 120 days.
RBI Regulations laws.
BOARD COMMITTEES
Further, as per the SEBI Listing Regulations, the Bank has
received Certificate from M/s. Bhandari & Associates, In compliance with various regulatory requirements, several
Practicing Company Secretaries that none of the Directors Board-level Committees have been constituted to delegate
on the Board of the Bank have been debarred or disqualified matters that require greater and more focused attention.
from being appointed or continuing as directors of
Details on the constitution, brief terms of reference, meetings
Companies by the Securities and Exchange Board of India/
held and attendance of all the Board-level Committees are
Ministry of Corporate Affairs or any such other statutory
given in the Corporate Governance Report which forms part
authority.
of this Annual Report.

A brief overview of some of the Board-level Committees is Stakeholders’ Relationship and Customer Service
furnished below: Committee (SRCSC)
The SRCSC met four (4) times during FY 2020-21 i.e. on May
Audit Committee
07, 2020, July 24, 2020, October 30, 2020, and January 28,
The Audit Committee met six (6) times during FY 2020-21 i.e.
2021.
on May 21, 2020, May 29, 2020, July 28, 2020, September
11, 2020, October 30, 2020, and January 30, 2021. Further, the SRCSC comprised of the following members as
on the date of this report:
All recommendations made by the Audit Committee during
the year were accepted by the Board. Chairperson | Independent
Dr. (Mrs.) Brinda Jagirdar -
Director
Further, the Audit Committee comprises of the following
Mr. Sanjeeb Chaudhuri - Member | Independent Director
members as on the date of this report:
Mr. Pravir Vohra - Member | Independent Director
Mr. Aashish Kamat - Chairman | Independent Director Mr. S. Ganesh Kumar - Member | Independent Director
Member | Non-Executive
Mr. Pravir Vohra - Member | Independent Director Mr. Sunil Kakar -
Non-Independent Director
Mr. Sanjeeb Chaudhuri - Member | Independent Director Mr. V. Vaidyanathan - Member | MD & CEO
Member | Non-Executive
Mr. Sunil Kakar -
Non-Independent Director Corporate Social Responsibility (CSR) Committee
The CSR Committee met three (3) times during FY 2020-21
Nomination and Remuneration Committee (NRC) on May 07, 2020, October 30, 2020 and January 28, 2021.
The NRC is constituted in compliance with the RBI
Further, the CSR Committee comprises of the following
Guidelines, Section 178 of the Companies Act, 2013 and the
members as on the date of this report:
SEBI Listing Regulations.
The NRC met five (5) times during FY 2020-21 on May 21, Mr. V. Vaidyanathan - Chairman | MD & CEO
2020, July 27, 2020, August 28, 2020, October 31, 2020 and Dr. (Mrs.) Brinda Jagirdar - Member | Independent Director
January 28, 2021. Mr. Hemang Raja - Member | Independent Director
Further, the NRC comprised of the following members as on The CSR Policy of the Bank is available on the Bank’s website
the date of this report: at www.idfcfirstbank.com under the ‘Investors’ section.
Mr. Hemang Raja - Chairman | Independent Director The CSR initiatives of the Bank in FY 2020-21 were
Mr. Aashish Kamat - Member | Independent Director implemented through various implementation agencies/
partners. In order to achieve impact and scale, the CSR
Dr. (Mrs.) Brinda Jagirdar - Member | Independent Director
activities undertaken during the year mainly focused
Member | Non-Executive on areas: [a] Livelihoods, [b] Health and Sanitation, [c]
Mr. Vishal Mahadevia -
Non-Independent Director
Education, [d] Women Empowerment, and [e] Others
(COVID-19 Relief).
Remuneration Policy
The Bank has formulated and adopted the Remuneration The amount spent for CSR contribution by the Bank for FY
Policies for the (i) Non-Executive Part-time Chairman 2020-21 was ` 19.62 crore.
and Non-Executive Directors; (ii) Whole-time / Executive
Annual Report on CSR activities as required under the
Directors, Material Risk Takers, Key Managerial Personnel,
Companies (Corporate Social Responsibility Policy) Rules,
Senior Management Personnel & Control Function Staff; and
2014, as amended from time to time, has been appended as
(iii) employees of the Bank (‘the Policies’), in terms of the
ANNEXURE 3 and forms part of this Report.
relevant provisions of Section 178 of the Companies Act,
2013, the relevant Rules made thereunder, the SEBI Listing KEY MANAGERIAL PERSONNEL
Regulations relating to Corporate Governance and the
Guidelines issued by the RBI, in this regard. As on the date of this report, the following officials of the
Bank are the ‘Key Managerial Personnel’ pursuant to the
During the year, the said Policies were reviewed and provisions of Section 203 of the Companies Act, 2013:
approved by the NRC and the Board.
Mr. V. Vaidyanathan
Our Bank also has a process in place for identification of Managing Director & Chief Executive Officer
independence, qualifications and positive attributes of its
Directors. The NRC ensures a transparent nomination process Mr. Sudhanshu Jain
to the Board of Directors with diversity of gender, thought Chief Financial Officer & Head - Corporate Centre
experience, knowledge and perspective in the Board. Mr. Satish Gaikwad
The said Policies have been hosted on the website of the Head – Legal & Company Secretary
Bank at www.idfcfirstbank.com, under the ‘Investors’ section
in terms of the SEBI Listing Regulations.
90 IDFC FIRST Bank

INTERNAL FINANCIAL CONTROLS Ombudsman Scheme, 2018 to enhance our Bank’s customer
grievance redressal mechanism and to improve service
The Bank has adequate internal controls and processes in delivery.
place with respect to its financial statements that provide
CORPORATE OVERVIEW
reasonable assurance regarding the reliability of financial STATUTORY AUDITORS
reporting and preparation of financial statements. These
In terms of the ‘Guidelines for Appointment of Statutory
controls and processes are driven through various policies,
Central Auditors (SCAs)/Statutory Auditors (SAs) of
procedures and certifications which also ensure the orderly
Commercial Banks (excluding RRBs), UCBs and NBFCs
and efficient conduct of the Bank’s business, including
(including HFCs)’ dated April 27, 2021 (‘RBI Guidelines’)
adherence to Bank’s policies, safeguarding of assets,
issued by RBI, banks shall appoint the Statutory Auditors for
prevention and detection of frauds and errors, accuracy
a continuous period of three (3) years, subject to the firms
and completeness of the accounting records, and the timely
satisfying the eligibility norms each year and the approval of
preparation of reliable financial information. The controls
RBI on an annual basis.
and processes are being reviewed periodically. The Bank
has a mechanism of testing the controls and processes at B S R & Co. LLP, Chartered Accountants (Firm Registration
STATUTORY REPORTS
regular intervals for their design and operating effectiveness No. 101248W/W-100022) have been the Statutory Auditors
to ascertain the reliability and authenticity of financial of the Bank for two (2) years i.e. FY 2019-20 and FY 2020-21.
information. Hence, they may continue as Statutory Auditors for one (1)
more year i.e. from the conclusion of the 7th Annual General
INFORMATION / CYBER SECURITY FRAMEWORK Meeting (‘AGM’) till the conclusion of the 8th AGM to be held
IDFC FIRST Bank since its inception has put in place a robust in 2022, subject to the approval of RBI. Accordingly, on the
Information/ Cyber Security Framework. Our Bank being a basis of the recommendation of the Audit Committee of
green field setup, has Information Security woven into our the Board (‘ACB’), the Board of Directors (‘the Board’) has
banking platform and seamlessly merges both culturally and recommended the re-appointment of B S R & Co. LLP as one
technologically. A dedicated team of security professionals of the Joint Statutory Auditors for a period of one (1) more
are part of the Information Security Group (‘ISG’) who govern year to the RBI for approval.
the Information Security practices in the Bank. Our Bank has
Further, in terms of the RBI Guidelines and the Bank’s Policy
put in place state of the art security technologies including
for Appointment of Statutory Auditors, our Bank is required
several industries ‘firsts’ technology solutions and adopted
to appoint two (2) Statutory Auditors. Accordingly, the Board,
‘defense in depth’ approach & industry best practices as
on the recommendation of the ACB, has recommended
part of our security framework and architecture.
to the RBI for approval, the name of MSKA & Associates,
This year Bank onboarded several new core cyber defense Chartered Accountants (Firm Registration No. 105047W) as
technologies to improve upon our defense and response the first preferred firm, to act as the Joint Statutory Auditors
capabilities in line with our overall Cyber Defense Strategy. of the Bank, for a period of one (1) year. The Board has also
While such technologies are in various stages of maturity, the recommended the appointment of MSKA & Associates,
use of Artificial Intelligence (‘AI’) / Machine Learning (‘ML’) is Chartered Accountants as Joint Statutory Auditors of the
at its core to identify early signs of exploits and automated Bank for a period of three (3) years to hold office from the
response and remediation will ensure identified issues are conclusion of the 7th AGM until the conclusion of the 10th AGM
addressed promptly. of the Bank, for the approval of the shareholders at the ensuing
AGM, subject to the approval of RBI on an annual basis.
Overall banking industry including our bank experienced MSKA & Associates shall act as the Joint Statutory Auditors
challenges associated with the pandemic conditions and of the Bank along with B S R & Co. LLP till the conclusion of
work from home strategy. At our bank, secure practices were the 8th AGM and thereafter act as Joint Statutory Auditors of
deployed very quickly with almost real time transition of the Bank with such other new joint Statutory Auditor(s) who
teams to work from home, without any significant downtime will be appointed by the Bank subject to prior approval from
or security lapses. Bank continued to maintain and upkeep RBI and approval of the shareholders of the Bank.
its compliance posture to standards such as ISO 27001
ISMS (Information Security Management System), PCI DSS AUDITORS’ REPORT
and regulatory requirements. Given the changing threat
There were no qualifications, reservations, adverse remarks
landscape and the continuation of the pandemic conditions,
or disclaimers made by the Statutory Auditors in their report
the attempt is to progressively move towards maturity of
for the financial year ended March 31, 2021.
proactive and adaptive platforms for automated detection,
response and recovery. SECRETARIAL AUDIT
INTERNAL OMBUDSMAN Pursuant to the provisions of Section 204 of the Companies
Act, 2013 read with Rule 9 of the Companies (Appointment
In compliance with regulatory guidelines, the Bank has
and Remuneration of Managerial Personnel) Rules, 2014, the
appointed Mr. Dayanand P. Kasabe, a senior retired Central
Bank had appointed M/s. Makarand M. Joshi & Co., Practicing
Banker as Internal Ombudsman for a period of 3 years
Company Secretaries to undertake the Secretarial Audit of
with effect from December 03, 2018, as per the Internal
the Bank for the financial year ended March 31, 2021.

The Bank provided all assistance and facilities to the INSTANCES OF FRAUD, IF ANY, REPORTED BY
Secretarial Auditors for conducting their audit. THE AUDITORS OR THE MANAGEMENT
The Secretarial Audit Report is appended as ANNEXURE 4 No offence of fraud was reported by the Auditors of the Bank
to this report. under Section 143(12) of the Companies Act, 2013. The
There were no qualifications, reservations, adverse remarks details of provisioning pertaining to Fraud Accounts during
or disclaimers made by the Secretarial Auditors in their the year under review are provided in Note No. 18.16 to the
report for the financial year ended March 31, 2021. Standalone Financial Statements as at March 31, 2021.
CONCURRENT AUDIT RISK MANAGEMENT FRAMEWORK
Our Bank has a regular and well-defined process of Our Bank promotes a strong risk culture throughout the
concurrent audits for important functions such as treasury, organization. A strong risk culture is designed to help
trade finance operations, retail operations, wholesale reinforce the Bank’s resilience by encouraging a holistic
operations, information technology, data center, etc. in line approach to management of risk & return and an effective
with the extant regulatory guidelines. Reputed Chartered management of risk, capital and reputational profile.
Accountant / CERT-IN certified firms carry out these Consequent to the amalgamation of erstwhile Capital First
Concurrent Audits. Key findings of these audits are placed Group with IDFC Bank, effective December 18, 2018, Bank
before the Audit Committee of the Board on a quarterly has re-aligned its key policies and Risk Framework forming
basis. an overall Risk Framework of the merged entity. Our Bank
operates within an effective Risk Management Framework
REQUIREMENT FOR MAINTENANCE OF COST
to actively manage all the material risks faced by the Bank,
RECORDS in a manner consistent with the Bank’s risk appetite. Our
The Bank is not required to maintain cost records as Bank aims to establish itself as an industry leader in the
specified by the Central Government under Section 148(1) management of risks and strive to reach the efficient frontier
of the Companies Act, 2013. of risk and return for the Bank and its shareholders. The Board
has ultimate responsibility for the Bank’s Risk Management
AWARDS AND RECOGNITIONS Framework. It is responsible for approving the Bank’s risk
Best Private Bank – Digital Innovation & Services 2019 appetite, risk tolerance and related strategies and policies.
by Asian Private Banker The Board is assisted by Risk Management Committee of
This award recognised our Bank as one which has embraced the Board (‘RMC’) and is supported by various management
the digital wave, its impact on the wealth management committees as part of the Risk Governance framework to
business, and the opportunities afforded by emergent ensure that Bank has sound system of risk management
technologies. This win also recognised our digital capabilities and internal controls. The RMC assists the Board in relation
and convenience our technology brought to banking. to the oversight and review of the Bank’s risk management
principles and policies, strategies, appetite, processes and
Three Asset Triple A Awards 2020 for Treasury, Trade, controls.
SSC and Risk
Our Bank secured 2 awards in Payments and Collection The RMC of the Board reviews risk management policies
solutions category for India and 1 award for Treasury and of the Bank pertaining to credit, market, liquidity and
Working Capital Domain in the NBFC segment. These operational risks. The Committee also reviews the Risk
awards corroborate with our ideology of client focus, co- Appetite & Enterprise Risk Management framework, Internal
creating innovative and client centric solutions. Capital Adequacy Assessment Process (‘ICAAP’) and
Stress Testing. ICAAP & Stress Testing requires the Bank to
‘Most Transformed New Bank in India 2020’ by Capital undertake rigorous, forward-looking assessment of risks by
Finance International (CFI) identifying severe events or changes in market conditions
With an uptick during the “COVID-19 Quarter” (Q4-2020) which could adversely impact the Bank.
coupled with strong corporate governance policies aligned
with international best practices, and focus on transparent Our Bank has in place a Board approved Risk Management
client engagement, IDFC FIRST Bank won the Most Policy. The Policy aims at establishing a risk culture
Transformed New Bank (India) in 2020 at the CFI Awards. and governance framework to enable identification,
The CFI.co judging panel bestowed this honour on IDFC measurement, mitigation and reporting of risks within the
FIRST Bank on recognizing its high-growth performance and Bank in line with the Bank’s risk appetite, risk - return trade-
prospects. off and the escalation & accountability framework.
ET Best BFSI Brand in Private Banking Category Our Bank manages its capital position to maintain strong
At the 4th edition of ET Best BFSI Brands, IDFC FIRST Bank capital ratios well in excess of regulatory and Board
was chosen as one of the Best BFSI Brands of 2021 in approved minimum capital adequacy at all times. The strong
the Private Bank Category. The award was based on the Tier I capital position of the Bank is a source of competitive
parameters of innovation, trust, legacy, customer centricity advantage and provides assurance to regulators, credit
and performance – all key tenets of the Bank’s core values rating agencies, depositors and shareholders. Capital
and philosophy. management practices are designed to maintain a risk
92 IDFC FIRST Bank

reward balance, while ensuring that businesses are directing its affairs, whilst meeting the appropriate interests
adequately capitalized to absorb the impact of stress events of its Shareholders and other Stakeholders.
including pandemic risks.
Our Bank is committed to achieve the highest standards of
CORPORATE OVERVIEW
Our Bank has rigorously adhered to the RBI mandated Corporate Governance. A separate section on Corporate
prudential norms on provisioning including on the basis of Governance standards followed by our Bank and the
evaluation of impact arising out of the fallout of COVID-19 relevant disclosures, as stipulated under the SEBI Listing
on the underlying portfolio, which is aimed at preserving Regulations, Companies Act, 2013 and Rules made
and protecting shareholders value. Our Bank continued thereunder forms part of this Annual Report.
to proactively work on the resolution of the stressed asset
A Certificate from the Secretarial Auditors of the Bank,
portfolio and has further reduced the position. Our Bank
M/s. Makarand M. Joshi & Company, Practicing Company
has also de-risked the portfolio by diversifying the credit
Secretaries, confirming compliance to the conditions of
portfolio across non-infrastructure sectors and focused
Corporate Governance as stipulated under the SEBI Listing
on increasing shorter-tenure and granular exposures. With
Regulations is enclosed at the beginning of the Corporate
these measures, we have sought to reduce the concentration
STATUTORY REPORTS
Governance Report and forms part of this Annual Report.
risk in the portfolio.
CEO & CFO CERTIFICATION
RELATED PARTY TRANSACTIONS
Certificate issued by Mr. V. Vaidyanathan, Managing Director
All the related party transactions that were entered into
& CEO and Mr. Sudhanshu Jain, Chief Financial Officer &
during the financial year were on arm’s length basis and
Head - Corporate Centre of the Bank, in terms of Regulation
in the ordinary course of business of the Bank. IDFC FIRST
17(8) of the SEBI Listing Regulations, for the year under
Bank have always been committed to good corporate
review was placed before the Board of Directors and forms
governance practices, including matters relating to related
part of this Annual Report.
party transactions.
All the related party transactions are placed before the BUSINESS RESPONSIBILITY REPORT
Audit Committee for approval. Prior omnibus approval is The Business Responsibility Report, in terms of Regulation
obtained from the Audit Committee for foreseen related 34(2)(f) of the SEBI Listing Regulations, describing the
party transactions. Prior omnibus approval is also obtained initiatives taken by IDFC FIRST Bank from an environmental,
for unforeseen related party transactions subject to their social and governance perspective is hosted on the Bank’s
value not exceeding ` 1 crore per transaction. The required website at www.idfcfirstbank.com under the ‘Investors’
disclosures are made to the Audit Committee on a quarterly section and constitutes a part of this Annual Report.
basis for all the related party transactions.
VIGIL MECHANISM/ WHISTLE BLOWER POLICY
Further, in terms of Regulation 23(9) of the SEBI Listing
Regulations, the Bank submits the disclosure of Related The Bank has implemented a Whistle Blower Policy
Party Transactions, on consolidated basis, in a prescribed in compliance with the provisions of the SEBI Listing
format, as specified under relevant Accounting Standards, Regulations, Companies Act, 2013 and RBI notification on
on half yearly basis to the Stock Exchanges and update its Introduction of ‘Protected Disclosures Scheme for Private
website accordingly. Sector and Foreign Banks’. Pursuant to this policy, the
Whistle Blowers can raise concerns relating to reportable
Pursuant to the provisions of Companies Act, 2013 and the matters (as defined in the policy) such as breach of IDFC
Rules made thereunder, SEBI Listing Regulations and in the FIRST Bank’s Code of Conduct, employee misconduct,
back-drop of the Bank’s philosophy on such matters, the fraud, illegal unethical imprudent behavior, leakage of
Bank has in place a Board approved policy on related party Unpublished Price Sensitive Information, corruption, safety
transactions. The said policy is also uploaded on the Bank’s and misappropriation or misuse of Bank funds/ assets etc.
website at www.idfcfirstbank.com under the ‘Investors’
section. Since all related party transactions entered into by Further, the mechanism adopted by the Bank encourages
the Bank were in the ordinary course of business and on the Whistle Blower to report genuine concerns or grievances
arm’s length basis, Form AOC-2 as prescribed under Section and provides for adequate safeguards against victimization
134(3)(h) of the Companies Act, 2013 is not applicable to the of Whistle Blower to those who avail such mechanism and
Bank. also provides for direct access to the Chairman of the Audit
Committee, in exceptional cases.
MANAGEMENT DISCUSSION AND ANALYSIS
The Audit Committee reviews the functioning of the Vigil
REPORT
Mechanism from time to time. None of the Whistle Blowers
The Management Discussion and Analysis Report for the has been denied access to the Audit Committee of the
year under review, as required by Regulation 34(2)(e) of the Board. The Whistle Blower Policy is available on the Bank’s
SEBI Listing Regulations, forms part of this Annual Report. website at www.idfcfirstbank.com under ‘Investors’ section.
The Whistle Blower Policy is communicated to the employees
CORPORATE GOVERNANCE and is also posted on the Bank’s intranet.
Your Directors ensure the Bank’s prosperity by collectively

In addition to the above, the Bank has formulated a Vigilance Also, our Bank has been increasingly using information
Policy for effectively managing the risks faced by the Bank technology in its operations, for more details, please refer
on account of corruption, malpractices and frauds. Management Discussion and Analysis Report, which forms
part of this Annual Report.
PREVENTION OF SEXUAL HARASSMENT OF
WOMEN AT THE WORKPLACE Further, Foreign Exchange earnings and outgo are part of
the normal banking business of the Bank.
Our Bank has an Internal Committee to investigate and
inquire into sexual harassment complaints in line with The ANNUAL RETURN
Sexual Harassment of Women at Workplace (Prevention, Pursuant to Section 92(3) read with Section 134(3)(a)
Prohibition & Redressal) Act, 2013. of the Companies Act, 2013, the Annual Return as on
Our Bank has in place a policy on Anti-Sexual Harassment, March 31, 2021 is available on the Bank’s website on
which reflects the Bank’s zero-tolerance towards any form https://www.idfcfirstbank.com/investors/annual-report.
of prejudice, gender bias and sexual harassment at the
DIRECTORS’ RESPONSIBILITY STATEMENT
workplace. Our Bank has set up an Internal Committee (‘IC’)
to receive and redress complaints of sexual harassment. Pursuant to the requirement under Section 134(5) of the
Our Bank undertakes ongoing trainings to create awareness Companies Act, 2013, it is hereby confirmed that:
on this policy.
a. in the preparation of the annual accounts, the applicable
During the year under review i.e. FY 2020-21, four (4) sexual accounting standards had been followed along with
harassment complaints were filed, out of which three (3) proper explanation relating to material departures;
complaints were closed during the year. One (1) complaint
b. the Directors had selected such accounting policies
was received in the month of February 2021 and was
and applied them consistently and made judgments
subsequently resolved within the timelines.
and estimates that are reasonable and prudent so as
During FY 2020-21, employees were given online training to give a true and fair view of the state of affairs of the
in order to understand the Policy on Prevention of Sexual Bank as on March 31, 2021 and of the profit of the Bank
Harassment and framework for reporting and resolving for that period;
instances of sexual harassment, details of which have been
c. the Directors had taken proper and sufficient care
mentioned in the Business Responsibility Report, which
for the maintenance of adequate accounting records
is hosted on the Bank’s website at www.idfcfirstbank.com
in accordance with the provisions of the Companies
under ‘Investors’ section.
Act, 2013 for safeguarding the assets of the Bank
SIGNIFICANT AND MATERIAL ORDERS PASSED and for preventing and detecting fraud and other
BY THE REGULATORS/ COURTS/ TRIBUNALS irregularities;
There were no significant and material orders passed by d. the Directors had prepared the annual accounts on a
the regulators or courts or tribunals impacting the going going concern basis;
concern status or the operations of the Bank. e. the Directors had laid down internal financial controls to
MATERIAL CHANGES AND COMMITMENTS be followed by the Bank and that such internal financial
AFFECTING THE FINANCIAL POSITION OF THE BANK controls are adequate and were operating effectively;
and
There are no material changes and commitments, affecting
the financial position of the Bank between the end of the f. the Directors had devised proper systems to ensure
financial year of the Bank i.e. March 31, 2021 and the date compliance with the provisions of all applicable laws
of the Board Meeting in which the Directors’ Report was and that such systems were adequate and operating
approved i.e. June 16, 2021. effectively.
CONSERVATION OF ENERGY, TECHNOLOGY GREEN INITIATIVE

ABSORPTION, FOREIGN EXCHANGE EARNINGS To support the ‘Green Initiative’, shareholders who have not
AND OUTGO updated their e-mail addresses are requested to update the
same with their respective Depository Participants (DPs),
The provisions of Section 134(3)(m) of the Companies Act, in case shares held are in electronic form or communicate
2013 read with Rule 8(3) of the Companies (Accounts) Rules, their e-mail address to the Registrar and Share Transfer
2014 relating to conservation of energy and technology Agent i.e. KFin Technologies Private Limited or to the Bank,
absorption are given as under: in case shares are held in physical form, so that future
Detailed initiatives taken for conservation of energy has been communications can be sent to shareholders in electronic
mentioned in the Business Responsibility Report, which is mode. Note on Green Initiative forms part of the 7th AGM
hosted on the Bank’s website at www.idfcfirstbank.com under Notice.
the ‘Investors’ section.
94 IDFC FIRST Bank

ACKNOWLEDGMENT Stock Exchanges (‘National Stock Exchange of India Limited’
& ‘BSE Limited’), Depositories, Rating Agencies, Unique
Your Directors take this opportunity to express their deep Identification Authority of India (‘UIDAI’), National Payments
and sincere gratitude to our Customers, Business Partners, Corporation of India (‘NPCI’), The Clearing Corporation
CORPORATE OVERVIEW
Business Correspondents and Vendors for the trust and of India Limited (‘CCIL’), Indian Banks’ Association (‘IBA’),
confidence reposed by them in the Bank. We would like Fixed Income Money Market and Derivatives Association
to thank our Shareholders, Bondholders, Investors and of India (‘FIMMDA’) and all other regulatory agencies and
Financial Institutions for their co-operation and assistance associations with which the Bank interacts.
during the year under review.
Your Directors sincerely acknowledge the commitment and
Your Directors would like to place on record their appreciation hard work put in by all employees of the Bank through its
for the support received from IDFC Group, Government of transformational journey. Their valuable contribution has
India, State Governments, various Ministries, Reserve Bank enabled the Bank to make significant progress towards
of India (‘RBI’), Securities and Exchange Board of India achieving its objective of becoming a diversified universal
(‘SEBI’), Insurance Regulatory and Development Authority Bank, with a focus on retail banking.
STATUTORY REPORTS
of India (‘IRDA’), Financial Intelligence Unit-India (FIU-IND),
For and on behalf of the Board of Directors

of IDFC FIRST Bank Limited
Hemang Raja V. Vaidyanathan

Date: June 16, 2021 Director Managing Director & CEO
Place: Mumbai DIN: 00040769 DIN: 00082596

ANNEXURE 1
Form No. AOC -1
Statement containing Salient Features of the Financial Statements of Subsidiaries / Associate Companies
/ Joint Ventures as on the Financial Year ended on March 31, 2021
[Pursuant to first proviso to Section 129(3) of the Companies Act, 2013, read with Rule 5 of the Companies (Accounts) Rules, 2014]
A. SUBSIDIARIES
(` in crore)
Name of Date since Share Reserves Total Total Investments Turnover Profit Provision Profit Proposed % of
Subsidiary when Capital and Assets Liabilities Before For Tax After Dividend Share-
Sr. (Note 3)
Company subsidiary Surplus Tax Tax (%) holding
No.
was
acquired
IDFC FIRST
October 13,
1 Bharat 5.58 177.31 303.62 120.73 - 463.70 40.34 11.64 28.70 - 100%
2016
Limited
Notes:
1 Names of Subsidiaries which are yet to commence operations: Not Applicable
2 Names of Subsidiaries which have been liquidated or sold during the year: Not Applicable
3 Total Liabilities is excluding Share Capital and Reserves & Surplus
4 Numbers are as per IND-AS financial statements.
B. ASSOCIATES AND JOINT VENTURES

Sr. Name of Associate Company Millennium City Expressways Private Limited (Note 3)
No.
1 Date on which the Associate or Joint Venture was associated or acquired October 21, 2014
2 Latest audited Balance Sheet Date March 31, 2021
3 Shares of Associate held by the Bank on the year end
Number of Equity Shares 22,63,83,431
Amount of Investment in Associate Company (` in crore) 226.38
Extent of Holding (%) 29.98%
4 Description of how there is significant influence Extent of equity holding in the associate company
exceeds 20%
5 Reason why the Associate is not consolidated Not Applicable (refer Note 4)
6 Networth attributable to Bank’s Shareholding as per latest Nil
audited Balance Sheet (` in crore)
7 Profit / (Loss) for the year ended March 31, 2021 (` in crore)
I. Considered in Consolidation -
II. Not considered in Consolidation (125.38)
Notes:
1 Names of Associates or Joint Ventures which are yet to commence operations: Not Applicable
2 Names of Associates or Joint Ventures which have been liquidated or sold during the year: Not Applicable
3 The financials of Millennium City Expressways Private Limited for the year ended March 31, 2021 are unaudited.
4. Investment in Millennium City Expressways Private Limited is fully provided.
For and on behalf of the Board of Directors of IDFC FIRST Bank Limited
V. Vaidyanathan Aashish Kamat

Managing Director & CEO Director
DIN: 00082596 DIN: 06371682
Sudhanshu Jain Satish Gaikwad

Date: June 16, 2021 Chief Financial Officer and Head - Legal and Company Secretary
Place: Mumbai Head-Corporate Centre
96 IDFC FIRST Bank

ANNEXURE 2
CORPORATE OVERVIEW
Details in terms of sub-section 12 of Section 197 of the Companies Act, 2013 read with Rule 5(1) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:
I. Ratio of Remuneration of each director to the median employees’ remuneration for the FY 2020-21 and Percentage
increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer and Company Secretary
in the FY 2020-21
Sr. Name of the Director/KMP Designation Ratio Percentage Increase
No.
1. Mr. V. Vaidyanathan Managing Director & CEO 104 : 1 -30%
STATUTORY REPORTS
2. Mr. Aashish Kamat Independent Director 4.8 : 1 -
3. Dr. (Mrs.) Brinda Jagirdar Independent Director 6.7 : 1 -
4. Mr. Hemang Raja Independent Director 6.5 : 1 -
5. Mr. Pravir Vohra Independent Director 5.8 : 1 -
6. Mr. Sanjeeb Chaudhuri Independent Director 5.0 : 1 -
7. Mr. Sunil Kakar Non-Executive Non-Independent Director - -
8. Mr. Vishal Mahadevia Non-Executive Non-Independent Director - -
9. Mr. Sudhanshu Jain KMP – CFO & Head-Corporate Centre - Nil
10. Mr. Satish Gaikwad KMP – Head-Legal & Company Secretary - Nil
11. Dr. Rajiv B. Lall Part-Time Non-Executive Chairman 5.6 : 1 Nil
12. Mr. Anand Sinha Independent Director 3.9 : 1 -
13. Ms. Anindita Sinharay Non-Executive Non-Independent Director - -
14. Dr. Sanjay Kumar Non-Executive Non-Independent Director - -
Note:
Executive Director:
In case of Managing Director & CEO, we have considered Total Fixed Pay, as approved by the RBI, for the computation of ratios. Total Fixed Pay includes Fixed
Salary, allowances and employee contribution to Provident fund. Further, there has been a reduction in the remuneration of Managing Director & CEO in the
FY 2020-21. In view of the distress caused by COVID-19 pandemic which had impacted the overall economy, and as part of the Bank’s austerity measures
which start at the top, the Mr. V. Vaidyanathan, Managing Director & CEO had voluntarily offered to take a pay cut of 30% in his compensation including Fixed
compensation as well as all allowances for FY 2020-21.
Independent / Non-Executive Directors:

In case of Part-Time Non-Executive Chairman, we have considered the Salary, as approved by RBI and sitting fees for attending Board meetings during FY
2020-21. Further, there has been no increase in the remuneration of Part-Time Non-Executive Chairman in the FY 2020-21. Dr. Rajiv Lall ceased to be a Part-
time Non-Executive Chairman of the Bank with effect from September 04, 2020 pursuant to tendering his resignation due to prolonged personal health issues.
In case of Independent Directors, sitting fees paid for attending Board and Committee meetings during FY 2020-21 has been considered. Further, the amount
of sitting fees paid per Board and Committee meeting remains unchanged from previous FY 2019-20.
Pursuant to Reserve Bank of India Circular Ref:DBOD.No.BC.24/08.139.001/2002-03 dated September 9, 2002 on ‘Implementation of Recommendations of the
Consultative Group of Directors of Banks/ Financial Institutions’ (‘RBI Circular’), in view of attaining an age of 70 years, Mr. Anand Sinha (DIN: 00682433) ceased
to be an Independent Director of the Bank with effect from February 02, 2021.
In case of Non-Executive Non-Independent Directors, they have not been paid any remuneration (i.e. sitting fees for attending Board and Committee meetings)
during FY 2020-21.
Ms. Anindita Sinharay ceased to be Government Nominee Director, with effect from June 22, 2020, pursuant to communication received from Ministry of Finance,
Government of India.
Dr. Sanjay Kumar was appointed as Government Nominee Director of the Bank, with effect from June 22, 2020 and he ceased to be Government Nominee
Director with effect from March 25, 2021, pursuant to receipt of communication dated March 25, 2021 from Department of Financial Services, Ministry of Finance
of Government of India (GoI) mentioning that since GoI holds one (1) Board seat and is minority shareholder in Bank, not involved in day to day operations of
the Bank, it was decided to withdraw its Board representation from the Board of the Bank.
Key Managerial Personnel, other than MD & CEO:

Mr. Sudhanshu Jain, Chief Financial Officer & Head-Corporate Centre, the percentage increase in remuneration during the FY 2020-21 is 0%.
Mr. Satish Gaikwad, Head-Legal & Company Secretary, the percentage increase in remuneration during the FY 2020-21 is 0%.

II. The percentage increase in the median remuneration Average percentile increase for Managerial Personnel
of Employees in the financial year for the financial year is 13%.
The median remuneration of the employees of IDFC
Average percentile increase for employees other than
FIRST Bank Limited increased by 13% in the financial
the Managerial Personnel for the financial year is 16%.
year.
The average increase in the remuneration of employees
III. The number of permanent Employees on the rolls of
compared to the increase in remuneration of Managerial
the Bank
Personnel is in line with the market bench mark study.
There were 24,169 permanent employees on the rolls of
the Bank as on March 31, 2021. There is no exceptional increase in the Managerial
Remuneration.
IV. Average percentile increase already made in the
salaries of Employees other than the Managerial V. Affirmation that the remuneration is as per the
Personnel in the last financial year and its comparison remuneration policy of the Bank
with the percentile increase in the managerial The Bank affirms that the remuneration is as per the
remuneration and justification thereof and point remuneration policy of the Bank, as applicable.
out if there are any exceptional circumstances for
increase in the managerial remuneration


98 IDFC FIRST Bank

ANNEXURE 3
Annual Report on CSR Activities
CORPORATE OVERVIEW
[Pursuant to Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended]
1. Brief outline on CSR policy of the Bank. 3. Web-link where Composition of CSR
The Corporate Social Responsibility (‘CSR’) policy committee, CSR Policy and CSR projects
is to ensure that CSR activities are not performed in approved by the board are disclosed on the
silos and that it be skillfully and inextricably woven into website of the Bank:
the fabric of the Bank’s business strategy for overall Composition of the CSR Committee shared above
value creation for all stakeholders. As a conscientious and is available on the Bank’s website at https://
corporate citizen, IDFC FIRST Bank believes in a www.idfcfirstbank.com/content/dam/idfcfirstbank/
STATUTORY REPORTS
sense of responsibility towards all stakeholders with a p d f /c o r p o ra t e - g o v e r n a n c e / I D FC - F I RST- B a n k- -
view to make a material, visible and lasting difference Composition-of-Board-level-Committees.pdf
to the lives of disadvantaged sections of the people,
preferably in the immediate vicinity in which the Bank CSR policy - https://www.idfcfirstbank.com/content/
operates and at the same time ensure widespread d a m / i d f c fi r s t b a n k /p d f /c o r p o ra t e - g o v e r n a n c e /
spatial distribution of its CSR activities Pan-India. Corporate-Social--Responsibility-Policy.pdf
Section 135 of Companies Act, 2013 (‘the Act’) read CSR projects - https://www.idfcfirstbank.com/csr-activities
with Companies (Corporate Social Responsibility
4. Impact assessment of CSR projects carried
Policy) Rules 2014 requires IDFC FIRST Bank Limited
to mandatorily spend on CSR. out in pursuance of sub-rule (3) of rule 8 of the
Companies (Corporate Social Responsibility
During the year, IDFC FIRST Bank Limited carried Policy) Rules, 2014, if applicable:
out CSR activities through various not-for-profit
implementing partners / agencies. The Bank takes cognizance of sub-rule (3) of rule 8
of the Companies CSR Policy Rules 2014. There are
IDFC FIRST Bank undertook the following CSR activities no projects undertaken or completed after January
which fall within the ambit of the activities listed in 22, 2021, for which the impact assessment report is
Schedule VII of the Act for promoting the development applicable in FY 2020-21.
of –
5. Details of the amount available for set off
(a) Livelihoods
in pursuance of sub-rule (3) of rule 7 of the
(b) Health and sanitation Companies (Corporate Social Responsibility
(c) Education Policy) Rules, 2014 and amount required for
set off for the financial year, if any:
(d) Women empowerment
Sl. Financial Year Amount available Amount required
(e) Others (COVID-19 Relief) No. for set-off from to be set-off for the
preceding financial financial year, if any
2. Composition of the CSR Committee: years (in `) (in `)
1. FY 2019-20 7.24 crore -
Sl. Name of Director Designation Number of Number of
No. / Nature of meetings meetings 2. FY 2020-21 19.62 crore -
Directorship of CSR of CSR Total 26.86 crore -
Committee Committee
held attended 6. Average net profit of the Bank as per section
during the during the
year year 135(5): ` - 1,230.17 crore
Chairman / 7. (a) Two percent of average net profit of the
1 Mr. V. Vaidyanathan 3 3
MD & CEO
Bank as per section 135(5): NIL
Member /
2 Mr. Hemang Raja Independent 3 3 (b) Surplus arising out of the CSR projects or
Director programmes or activities of the previous
Member / financial years: NIL
Dr. (Mrs.) Brinda
3 Independent 3 3
Jagirdar
Director (c) Amount required to be set off for the
financial year, if any: NIL
(d) Total CSR obligation for the financial year
(7a+7b-7c): NIL

8. (a) CSR amount spent or unspent for the financial year:
Total Amount Spent Amount Unspent (in `)
for the Financial Total Amount transferred to Unspent Amount transferred to any fund specified under Schedule VII
Year. (in `) CSR Account as per section 135(6) as per second proviso to section 135(5)
Amount Date of transfer Name of the Fund Amount Date of transfer
19.62 crore NIL Not Applicable Not Applicable NIL Not Applicable
(b) Details of CSR amount spent against ongoing projects for the financial year: None
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Sl. Name of Item from Local Location of the Project Amount Amount Amount Mode of Mode of
No. the Project the list of area project duration allocated spent transferred Implementation Implementation -
activities (Yes/ for the in the to Unspent - Direct (Yes/No) Through Implementing
in No) project current CSR Account Agency
Schedule (in `) financial for the
VII to the Year project as
Act State. District. (in `) per Section Name CSR
135(6) Registration
(in `) number
1. - - - - - - - - - - - -
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
` 19,43,88,599.75 (Refer EXHIBIT-A)
(d) Amount spent in Administrative Overheads: ` 17,86,166.65
(e) Amount spent on Impact Assessment, if applicable: Not Applicable
(f) Total amount spent for the Financial Year (8b+8c+8d+8e): ` 19,61,74,766.40
(g) Excess amount for set off, if any
Sl. Particular Amount (in `)
No.
(i) Two percent of average net profit of the company as per section 135(5) NIL
(ii) Total amount spent for the Financial Year 19.62 crore
(iii) Excess amount spent for the financial year [(ii)-(i)] 19.62 crore
Surplus arising out of the CSR projects or programmes or activities of the previous financial
(iv) NIL
years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] 19.62 crore
9. (a) Details of Unspent CSR amount for the preceding three financial years:
Sl. No. Preceding Amount Amount spent Amount transferred to any fund specified under Schedule Amount
Financial Year transferred to in the reporting VII as per section 135(6), if any. remaining to
Unspent CSR Financial Year be spent in
Account under (in `) Name of the Fund Amount (in `) Date of transfer succeeding
section 135 (6) financial years.
(in `) (in `)
1. - NIL - - NIL - -
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial
year(s): None
(1) (2) (3) (4) (6) (7) (8) (9)
Sl. No Project ID Name of the Financial Year Project Total amount Amount spent Cumulative Status of
Project in which the duration allocated for on the project amount spent the project -
project was the project in the reporting at the end Completed /
commenced (in `) Financial Year of reporting Ongoing
(in `) Financial Year
(in `)
1. - - - - - - -
100 IDFC FIRST Bank

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created
or acquired through CSR spent in the financial year (asset-wise details).
(a) Date of creation or acquisition of the capital asset(s): None
CORPORATE OVERVIEW
(b) Amount of CSR spent for creation or acquisition of capital asset: NIL
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is
registered, their address etc.: Not Applicable
(d) Provide details of the capital asset(s) created or acquired (including complete address and
location of the capital asset): Not Applicable
11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per
section 135(5): Not Applicable
STATUTORY REPORTS

Member - CSR Committee Chairman - CSR Committee

EXHIBIT - A
(1) (2) (3) (4)
Sl. Name of the Project Item from the list of activities in Schedule VII to the Act Local area (Yes/No)
No.
1 Psychosocial Disability Support Cl.(ii) promoting education. Yes
2 Scholarship Program Cl.(ii) promoting education. Yes

3 Women Entrepreneurship Program Cl.(ii) promoting employment, enhancing vocation skills Yes
among women, livelihood enhancement projects.
4 Saksham Cl.(iii) Empowering women Yes
5 Kamyaab Program Cl.(ii) promoting education, including special education. Yes
6 Vocation Training Program Cl.(ii) promoting employment, enhancing vocation skills, Yes
livelihood enhancement projects.
7 Lighthouse Program Cl.(ii) promoting employment, enhancing vocation skills, Yes
livelihood enhancement projects.
8 Digital Empowerment Program Cl.(ii) promoting education and employment, enhancing Yes
vocation skills.
9 Rehabilitation Program Cl.(ii) promoting employment, enhancing vocation skills Yes
among differently abled.
10 Om Abode Cl.(ii) promoting employment, enhancing vocation skills Yes
among differently abled.
11 MBA Scholarship Program Cl.(ii) promoting education
12 Swachh Worli Koliwada CI (i) Promoting sanitation Yes
13 Shwetdhara Cl.(ii) livelihood enhancement projects. Yes
14 iSpirt Foundation Cl.(ii) promoting education Yes

15 Research Grant Cl.(ii) promoting education. Yes
16 Ask For Mask CI (xii) disaster management, including relief, rehabilitation Yes
and reconstruction activities
17 Gaon Gaon Mask CI (xii) disaster management, including relief, rehabilitation Yes
18 Shramik Sahayata CI (xii) disaster management, including relief, rehabilitation Yes

19 Share a meal CI. (i) Eradicating hunger, poverty and malnutrition Yes
20 Jankari Mein Samajhdari CI (xii) disaster management, including relief, rehabilitation Yes
21 Warrior On Wheels CI (xii) disaster management, including relief, rehabilitation Yes
22 Covid Relief Response CI. (i) Eradicating hunger, poverty and malnutrition Yes
23 PM CARES fund (viii) contribution to Prime Minister’s Citizen Assistance and Yes
Relief in Emergency Situations Fund (PM CARES Fund)]
TOTAL
102 IDFC FIRST Bank

(5) (6) (7) (8)
CORPORATE OVERVIEW
Location of the project. Amount spent Mode of Mode of Implementation - Through Implementing Agency
State District for the project Implementation - Name CSR Registration
(excluding Direct (Yes/No) number.
administrative
overhead
expenses) (in `)
Tamil Nadu Chennai 22,36,500.00 No Banyan Academy of Leadership in CSR00001557
Mental Health
Delhi Delhi 1,09,66,500.00 No Ashoka University CSR00000712
Delhi Delhi 29,41,820.00 No ETASHA Society CSR00002969
STATUTORY REPORTS
Maharashtra Mumbai 25,76,465.00 No Animedh Charitable Trust CSR00003224
Karnataka Bangalore 52,02,073.50 No Biswa Gouri Charitable Trust CSR00001082
Maharashtra Lonavala 16,67,501.07 No Social Action for Manpower CSR00003752
Creation(SAMPARC)
Maharashtra Pune 96,13,538.00 No Pune City Connect CSR00001116
Maharashtra Pune 34,31,750.00 No Pune City Connect CSR00001116
Maharashtra Mumbai 36,58,544.50 No Om Creations Trust CSR00002773
Maharashtra Karjat 10,25,000.00 No Om Creations Trust CSR00002773
PAN India 29969000.17 Yes IDFC FIRST Bank -

Maharashtra Mumbai 11538441.51 No Stree Mukti Sanghatana , G5A CSR00001126
Foundation for Contemporary culture
Madhya Hoshangabad, 22049825 No End Poverty , CARD , Vrutti CSR00000314,
Pradesh and Indore Dewas, CSR00000538
Rajasthan Jaipur
PAN India 1,25,00,000.00 No iSpirt Foundation CSR00001434
Delhi Delhi 1,00,000.00 No Pahle India Foundation CSR00005791
Maharashtra Mumbai, Delhi 57,89,401.00 No ETASHA Society , Om Creations Trust , CSR00002773,
and Delhi IDFC FIRST Bank CSR00002969
Rajasthan Hoshangabad, 29,35,450.00 No End Poverty, Vrutti CSR00000314,
and Madhya Indore Dewas, CSR00000538
Pradesh Jaipur
PAN India 27,00,000.00 No Collective Good Foundation CSR00001648
Delhi, Gurgaon , Delhi 24,81,875.00 No Akshay Patra , Zomato Feeding India CSR00000286
Haryana , others
PAN India 3,19,000.00 No Swadhaar Fin access -
Maharashtra Mumbai 5,40,640.00 Yes IDFC FIRST Bank -
PAN India 1,00,00,000.00 No Give India CSR00000389

PAN India 5,01,45,275.00 No PM CARES Fund -
19,43,88,599.75

ANNEXURE 4
FORM NO. MR-3
SECRETARIAL AUDIT REPORT
For The Financial Year Ended March 31, 2021
[Pursuant to section 204(1) of the Companies Act, 2013 and rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To
The members,
IDFC FIRST Bank Limited
We have conducted the secretarial audit of the compliance (c) The Securities and Exchange Board of India
of applicable statutory provisions and the adherence to (Depositories and Participants) Regulations, 2018;
good corporate practices by IDFC FIRST Bank Limited
(d) The Securities and Exchange Board of India
(hereinafter called the ‘Bank’). Secretarial Audit was
(Issue of Capital and Disclosure Requirements)
conducted in a manner that provided us a reasonable basis
Regulations, 2018;
for evaluating the corporate conducts/ statutory compliances
and expressing our opinion thereon. (e) The Securities and Exchange Board of India
(Share Based Employee Benefits) Regulations,
Based on our verification of the Bank’s books, papers, minute
2014;
books, forms and returns filed and other records maintained
by the Bank and also the information provided by the Bank, (f) The Securities and Exchange Board of India (Issue
its officers, agents and authorized representatives during and Listing of Debt Securities) Regulations, 2008;
the conduct of secretarial audit, we hereby report that in our
(g) The Securities and Exchange Board of India (Issue
opinion, the Bank has, during the audit period covering the
and Listing of Non-Convertible and Redeemable
financial year ended on March 31, 2021 (hereinafter called
Preference Shares) Regulations, 2013; (Not
the ‘Audit Period’) complied with the statutory provisions
Applicable to the Bank during the Audit Period)
listed hereunder and also that the Bank has proper Board-
processes and compliance-mechanism in place to the (h) The Securities and Exchange Board of India
extent, in the manner and subject to the reporting made (Registrars to an Issue and Share Transfer Agents)
hereinafter: Regulations, 1993 regarding the Companies Act
and dealing with client;
We have examined the books, papers, minute books, forms
and returns filed and other records maintained by the Bank (i) The Securities and Exchange Board of India
for the financial year ended on March 31, 2021 according to (Delisting of Equity Shares) Regulations, 2009
the provisions of: (Not applicable to the Bank during the Audit
Period) and
(i) The Companies Act, 2013 (the ‘Act’) and the rules made
thereunder; (j) The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 2018; (Not
(ii) The Securities Contracts (Regulation) Act, 1956
Applicable to the Bank during the Audit Period).
(‘SCRA’) and the rules made thereunder;
We have also examined compliance with the applicable
(iii) The Depositories Act, 1996 and the Regulations and
clauses of the following:
Bye-laws framed thereunder;
(i) Secretarial Standards issued by The Institute of
(iv) Foreign Exchange Management Act, 1999 and the
Company Secretaries of India;
rules and regulations made thereunder to the extent
of Foreign Direct Investment and External Commercial (ii) The Securities and Exchange Board of India (Listing
Borrowings. The Bank did not have any Overseas Direct Obligations and Disclosure Requirements) Regulations,
Investment during the Audit Period; 2015.
(v) The following Regulations and Guidelines prescribed We further report that, having regard to the compliance
under the Securities and Exchange Board of India Act, systems prevailing in the Bank and on the examination of
1992 (‘SEBI Act’):- the relevant documents and records in pursuance thereof on
test- check basis, the Bank has complied with the following
(a) The Securities and Exchange Board of India
laws to the extent applicable:
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;  The Banking Regulation Act, 1949 read with applicable
circulars/ notifications/ guidelines, etc. issued by RBI
(b) The Securities and Exchange Board of India
from time to time.
(Prohibition of Insider Trading) Regulations, 2015;
104 IDFC FIRST Bank

 The Securities and Exchange Board of India (Bankers (ii) The Bank has issued 86,24,40,704 equity shares on
to an Issue) Regulations, 1994; Preferential Basis, amounting to ` 2,000 Crores. The
Shareholders of the Bank have approved both the
 The Securities and Exchange Board of India (Stock
aforesaid proposals through Postal Ballot with requisite
CORPORATE OVERVIEW
Brokers and Sub-Brokers) Regulations, 1992;
majority on June 03, 2020.
 The Securities and Exchange Board of India (Merchant
(iii) The Bank has approved borrowing/raising of funds,
Bankers) Regulations, 1992.
from time to time, in Indian currency/ Foreign currency,
During the Audit Period, the Bank has complied with the by issue of debt securities including but not limited to
provisions of the Act, Rules, Regulations, Guidelines and Non-Convertible Debentures and Bonds on private
Standards made thereunder for all the above laws to the placement basis upto an amount not exceeding
extent possible. ` 5,000 Crores, outstanding at any point of time, within
the overall borrowing limits of ` 1,50,000 Crores; via
We further report that The Board of Directors of the Bank is
members approval obtained at the 6th Annual General
duly constituted with proper balance of Executive Directors,
Meeting held on July 30, 2020.
STATUTORY REPORTS
Non-Executive Directors and Independent Directors. The
changes in the composition of the Board of Directors that (iv) The shareholders of the Bank approved raising of
took place during the period under review were carried out Capital through issuance of Equity Shares and/or other
in compliance with the provisions of the Act. Equity-linked Securities up to ` 3,000 Crores, through
Postal Ballot with requisite majority on March 21, 2021.
Adequate notice was given to all directors to schedule the
Board Meetings, agenda and detailed notes on agenda were (v) The Bank has bought back various series of Private
sent at least seven days in advance and a system exists for Placement Bonds aggregating to ` 18,33,60,00,000/-
seeking and obtaining further information and clarifications through buy back/call/put option and redeemed Retail
on the agenda items before the meeting and for meaningful Bonds and Private Placement Bonds aggregating to `
participation at the meeting. 8,34,84,00,000/- & ` 42,75,10,00,000/- respectively.
All decisions at Board Meetings and Committee Meetings For Makarand M. Joshi & Co.
are carried out unanimously as recorded in the minutes of Practicing Company Secretaries
the meetings of the Board of Directors and Committee of the
Board, as the case may be and no dissenting views were Kumudini Bhalerao
observed, while reviewing the minutes. Partner
FCS No. 6667
We further report that there are adequate systems and
CP No. 6690
processes in the Bank to commensurate with the size and
UDIN: F006667C000341276
operations of the Bank to monitor and ensure compliance
Peer Review No : P2009MH007000
with applicable laws, rules, regulations and guidelines.
We further report that during the audit period, the Bank has Place: Mumbai
undertaken following events/ actions: Date: May 18, 2021
(i) The Bank has increased its Authorized Share Capital *This report is to be read with our letter of even date which
to ` 75,38,00,00,000 comprising 7,50,00,00,000 equity is annexed as Annexure A and forms an integral part of this
shares of `10 each and 38,00,000 preference shares of report.
`100 each.

Annexure A
To
The members,
Our Secretarial Audit Report for the financial year ended 5. The compliance of the provisions of Corporate and
March 31, 2021 of even date is to be read along with this other applicable laws, rules, regulations, standards is
letter. the responsibility of management. Our examination was
limited to the verification of procedures on test basis.
1. Maintenance of secretarial record is the responsibility
of the management of the Bank. Our responsibility is to 6. The Secretarial Audit report is neither an assurance as
express an opinion on these secretarial records based to the future viability of the Bank nor of the efficacy
on our audit. or effectiveness with which the management has
conducted the affairs of the Bank.
2. We have followed the audit practices and processes
as were appropriate to obtain reasonable assurance For Makarand M. Joshi & Co.
about the correctness of the contents of the Secretarial Practicing Company Secretaries
records. The verification was done on test basis to
ensure that correct facts are reflected in secretarial Kumudini Bhalerao
records. We believe that the processes and practices, Partner
we followed provide a reasonable basis for our opinion. FCS No. 6667
CP No. 6690
3. We have not verified the correctness and
UDIN: F006667C000341276
appropriateness of financial records and Books of
Accounts of the Bank.
4. Wherever required, we have obtained the Management Place: Mumbai
representation about the compliance of laws, rules and Date: May 18, 2021
regulations and happening of events, etc.
106 IDFC FIRST Bank

Management Discussion and Analysis
CORPORATE OVERVIEW
MACRO-ECONOMIC ENVIRONMENT rates have exceeded the peak of last year, indicating
the virulence of the second wave. In response the state
The financial year 2020-21 brought overwhelming headwinds
governments increased restrictions and announced/ local
because of COVID-19, resulting in lockdowns implemented
lockdowns to curtail the spread of the virus and reduce the
as a first line of defence. India’s lockdown was one of the
burden on the healthcare infrastructure.
most stringent last year impacting nearly 50% of the economy
in the Q1 of FY21. GDP growth contracted sharply, down by The lockdowns and restrictions were able to contain the
STATUTORY REPORTS
24% Y-o-Y in Q1 FY21, spanning both industry and services. spread of infection with Covid-19 cases peaking in May 2021.
Subsequently as COVID-19 cases declined, restrictions were Subsequently, restrictions are being eased in a calibrated
eased, resulting in GDP moving into positive growth territory manner resulting in improvement in activity indicators with
in the third (0.54%) and fourth quarter (1.6%) of the year. rise in individual and freight movement and industrial activity.
For the full financial year, India’s GDP contracted by 7.3% The recovery from the second wave has been much faster
2020-21 as per the Ministry of Statistics and Programme with activity levels recovering in three months compared to
Implementation, Government of India. 10 months during the first wave last year. The faster recovery
is because lockdowns have been nimbler, with industries
The start of FY22 has been even more challenging with a
remaining functional to varying degrees. Moreover, the
surge in COVID-19 cases. The second wave has been much
duration of the lockdowns has been shorter.
steeper and spread across majority states. Test positivity
COVID-19 Business continuity index
Source: CEIC, IDFC FIRST Bank Economics Research
Looking ahead, we expect the recovery to be supported Inflation Spiked on Supply-side Disruptions
by increasing pace of vaccinations, strong export growth
and capital expenditure by the government. Rising pace of At the height of the lockdown last year, CPI inflation had
vaccinations will support consumer sentiment and reduce the touched 7.6% in October 2020 as supply-side disruption had
risks to the recovery from potential rise in Covid-19 cases. driven food and beverages inflation to 10.1%. Subsequently
The unprecedented levels of stimulus in developed countries as lockdown restrictions were eased and food supplies
is expected to support strong global growth recovery which improved supported by bumper harvests, headline inflation
augurs well for India’s exports. The FY22 Union Budget moderated to 5.6% in H2FY21 from 6.7% in H1FY21.
prioritized capital expenditure which tends to have stronger The moderation in headline inflation masks the fact that core
growth multipliers and will provide much needed support to inflation remains upward sticky, rising to 5.5% in H2FY21 from
the capex cycle. We estimate FY22 GDP growth at 10.0%, 5.1% in H1FY21. Part of the reason behind the upward rise in
with growth improving in H2FY22. core inflation is higher global crude oil prices as economic
activity recovered gradually the world over. Moreover, the

Government of India maintained its excise duty hikes on In FY22, we expect the CPI inflation to average at 5.7%,
petrol and diesel undertaken in H1FY21 to shore up its which is premised on our expectation of normal monsoon and
revenues. However, a few state governments reduced their crude oil prices (Brent) averaging at US US$70 per barrel.
VAT on fuel to provide some relief to retail consumers. The second Covid-19 wave resulted in recurrence of supply-
side disruptions resulting in Headline CPI inflation averaging
To get a better sense of core dynamics, we removed the
at 5.6% in Q1FY22 from 4.9% in Q4FY21, reflecting higher
impact of commodities from core inflation, better known as
services inflation. Looking ahead, core inflation is expected
core core inflation. Here too, a pick-up is seen with core
to remain upward sticky with supply-side disruption and
core inflation rising to 4.4% in H2FY21 from 4.1% in H1FY21,
elevated fuel prices, keeping it firm in H1FY22. In H2FY22,
driven by higher service inflation. The disruptive impact of
we expect the output gap to narrow as domestic demand
COVID-19 persists on services with elevated healthcare
conditions improve.
costs. Moreover, service providers need to comply with
COVID-19 norms, which adds to their costs, resulting in
services inflation remaining upward sticky.
CPI inflation Core inflation Food inflation
14 YoY%
12
10
0
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Nov-21
Jan-22
Mar-22
Fiscal Policy and Monetary Policy to Remain Importantly, the RBI emphasised that these regulatory
Accommodative forbearances will not qualify as a default, effectively ring-
fencing asset quality of banks, preventing any adverse swing
Monetary policy was the first line of defence in FY21, with in the NPA cycle during a phase when the lockdown is likely
sharp reduction in repo rate by 115 bps and ensuring to lead to large cashflow mismatches for all economic agents.
liquidity to the affected sectors via Targeted Long-term
Repo Operations (TLTRO), whereby the funds would be There was also a sharp rise in inter-bank liquidity due to RBI’s
earmarked for investments in corporate bonds, commercial dollar purchase to limit appreciation pressure on the Indian
papers and non-convertible debentures, the rates of which Rupees (‘INR’). RBI also purchased Government Securities
had risen due to the Covid-19 shock. The RBI also cut CRR (G-Secs)to keep yields contained, despite a sharp rise in
by 100 bps to 3% in March 2020 to infuse liquidy which was government borrowing programme. The RBI conducted net
subsequently normalized back to 4%in two phases by May Open Market Operations (OMO) purchases of INR 3.1 trillion
2021. Further, in light of the COVID-19 related disruptions, in FY21. This includes INR 300 billion of OMO purchases of
the RBI announced moratorium of payments of instalments State Development Loans (SDLs) undertaken by the RBI for
on term loans and deferment of interest payments on working the first time ever, to keep SDL yields contained.
capital loans.
108 IDFC FIRST Bank

RBI net OMO puchase / sale (INR bn) for MSMEs and NBFCs) and protecting the vulnerable section
of society. Policy focus gradually shifted to supporting
CORPORATE OVERVIEW
3,500 3,133
demand with third bailout package focusing on boosting
2.992 consumption and investment.
3,000
The FY22 Union Budget focus is on providing a boost to
2,500 investments with a 26.2% YoY increase in capital expenditure
in FY22 and mobilisation of funds for infrastructure projects
2,000 by setting up DFI and creation of a National Monetisation
pipeline to fund the creation of new assets. The expenditure
1,500 1,149
1,105 mix is expected to improve substantially in FY22 with
881
1,000 capital expenditure accounting for 16% of total government
expenditure, compared to the usual ratio of 12% to 13%. This
STATUTORY REPORTS
500 bodes well for growth as capital expenditure has a higher
fiscal multiplier than revenue expenditure.
0
The Government of India has allocated INR 350 billion on
-500 vaccination cost.
-1,000 -888
Additional fiscal response from the Government of India
due to the second COVID-19 wave has been focused
-1,500 on providing relief to at-risk segment of the population.
FY16 FY17 FY18 FY19 FY20 FY21 It has announced additional free food grains for the next
two months, which will have fiscal cost of INR 260 billion.
Source: CEIC, IDFC FIRST Bank Economics Research State governments which have announced lockdowns have
announced income support for construction workers and
As a consequence of RBI’s foreign exchange (FX) purchases migrant workers.
and G-Sec purchases, substantial interbank liquidity External Sector
conditions persist, resulting in call rates falling below the
reverse repo rate. Monetary transmission also improved with The sharp decline in growth last year resulted in a rise in
weight average lending rates lower by 71 bps on outstanding current account surplus to 3.0% of GDP in H1FY21, as imports
loans and 63 bps lower on fresh loans in FY21. had contracted and fall in crude oil prices. In H2FY21, current
account was back in the deficit zone as imports revived and
Looking ahead we expect the RBI to keep monetary policy rise in crude oil prices. The revival in imports was due to
accommodative given the uncertainty created by the second easing of lockdown restrictions and improvement in domestic
COVID-19 wave. The regulator has clearly indicated that demand conditions. For the full year FY21 current account
supporting growth on a durable basis remains a priority, surplus was 0.9% of GDP. In FY22, we expect a moderate
while ensuring CPI inflation remains within the 4%±2% target current account deficit of 1.6% of GDP, led by rise in imports
range. We expect our repo rate to remain unchanged this and higher crude oil prices.
year and ample liquidity conditions to be maintained.
On the flows front there was a surge in capital flows in FY21,
On the yields front, liquidity management focus is on flattening due to ultra-accommodative global monetary policy, resulting
the yield curve. The upfront commitment to purchase G-secs in large foreign investment inflows to the emerging markets
by the RBI under G-SAP is expected to keep long-end yields (EMs). India also witnessed rise in foreign investment inflows
contained. At the same time, the announcement of longer - net FPI inflows rose to US $30.3 billion in FY21 and net FDI
tenor of variable rate reverse repo auctions is aimed at lifting inflows rose to US $44 billion. The current account surplus
overnight rates back above reverse repo. and capital inflows resulted in net BoP surplus rising to US
Fiscal policy in FY21 has played a supportive role with total $87 billion.
fiscal stimulus estimated at 8.4% of GDP, which includes To limit, appreciation pressure on the INR, RBI intervened in
demand augmenting measures (higher expenditure and tax both spot and forwards market to absorb dollar inflows. RBI’s
cuts) of 3.3% of GDP. The first two packages announced net dollar purchases (spot plus forward market) is estimated
by the government focused more on supply-side measures at US $146 billion in FY21.
ensuring credit flow to the affected sectors (credit guarantees

RBI FX intervention (USDbn)
In F Y22, we estimate BoP surplus to reduce to prepare and provide for credit defaults and losses arising
US $22.8 billion, based on our expectation of current from this unprecedented situation in their balance sheets.
account deficit and slowdown in FPI inflows. In H1 FY22 we At its early stages of transformation and growth, IDFC FIRST
saw a measure of INR volatility as restrictions rise in various Bank also encountered such a situation, which impacted its
states, negatively impacting growth momentum. H1FY22, financial performance of FY21.
USD-INR trading range is expected between INR 73.50 and
Net Profit (` crores)
INR 76.50. In H2FY22, we expect depreciation pressures on
INR to reduce with expected reduction in COVID-19 cases
and progress on the vaccination front. Overall, more than
adequate FX reserves and moderate current account deficit
in FY22, will keep depreciation pressures contained.
FINANCIAL SUMMARY
FY21 has been a challenging yet a transformational year for
IDFC FIRST Bank.
As the pandemic hit India in the early part of 2020, the
Banking and Financial Services (BFSI) sector in our country
encountered the impact from March 2020 onwards. Financial
year 2020-21 (FY21) has been an extremely challenging
year for the entire BFSI sector, which witnessed multiple The Bank posted a profit of ` 452 crore for the last financial
interventions from the Government of India and the RBI. This year, FY21, despite challenges in the Indian banking sector
includes an array of fiscal and monetary stimulus measures as the COVID-19 pandemic outbreak triggered nation-
(moratorium, extension of moratorium and restructuring wide lockdowns. This impacted businesses, operations
plans) to support the vulnerable sections of the population. and collections of the Bank and the Bank took additional
Mobility of the population was also restricted by imposing provisions to accommodate such impacts, following the
nation-wide lockdown. prescribed guidelines by the RBI. We are proud to share
The slowdown in the economy with contraction in GDP that during the year our customer deposits consistently grew
compelled the incumbents in the BFSI sector in India to every quarter and our transparent communications helped to
increase our customers’ confidence.
110 IDFC FIRST Bank

1. The Bank steadily diversified its funded assets by Retail CASA and Retail Term Deposits as they are much
increasing the Retail Loan Assets. stickier, granular and sustainable in nature.
CORPORATE OVERVIEW
2. The Bank made significant progress in retailising its Such transformation of both loan assets and deposits are
deposit base in favour of the retail deposits including evident through the performance of the Bank post merger.
Core Deposits (Retail CASA + Retail TD) Other Deposits Total Customer Deposits (Excl. CD)
`38,455 Cr `40,504 Cr `57,719 Cr `82,725 Cr
`18,831 Cr
STATUTORY REPORTS
`10,400 Cr 23%
41%
33%
27%
59% 77%
73% 67%
`28,055 Cr `63,894 Cr
Dec-18 Mar-19 Mar-20 Mar-21
Retail Funded Assets Wholesale Funded Assets (incl Inorganic Portfolio) Total Funded Assets
`1,04,660 Cr `1,10,400 Cr `1,07,004 Cr `1,17,127 Cr
`43,453 Cr
`36,236 Cr
37% 37%
46%
35%
54% 63%
65% 63%
`68,424 Cr `73,673 Cr
Dec-18 Mar-19 Mar-20 Mar-21

Liabilities – Transformation Driven by the Strong March 31, 2021 from 27.72% as of March 31, 2020. The Bank
Retail Deposits Growth now is well positioned with its large peers in terms of CASA
ratio.
CASA Deposits
Funded Assets
The CASA Deposits of the Bank has grown strongly. The
CASA deposits of the Bank has grown by 122% from ` 20,661 Total Funded Loan Assets, including advance, credit
crore as on March 31, 2020 to ` 45,896 crore as on March investments and PSL buyouts (as per internal classification)
31, 2021. gross of Inter-Bank Participation Certificates (IBPC), stood
at ` 1,17,127 crore as on March 31, 2021, compared to
CASA Deposits (` crores)
` 1,07,004 crore for as on March 31, 2020. Of the total book,
the Retail Loan Book increased by 29% to ` 73,673 crore as on
March 31, 2021, compared to ` 57,310 crore as on March
31, 2020. The Retail Loan Book as March 31, 2021 includes
the outstanding book disbursed under ECLGS scheme of
` 1,687 crores. Excluding this, the Retail Loan Book grew by
26% YOY in FY21.
Retail Funded Assets (` crores)
Core Deposits
The Bank’s Core Deposits (Retail CASA and Retail Term
Deposits) of the Bank increased by 88% from ` 33,924 crore
as on March 31, 2020 to ` 63,894 crore as on March 31,
2021.
Core Deposits (` crores)
In line with the stated strategy to reduce the concentrated

exposure, the Bank reduced its Wholesale Funded Assets by
14% from ` 39,388 crore as on March 31, 2020, to ` 33,920
crore as on March 31, 2021. This is also in accordance with
the guidance given at the time of merger.
Wholesale Funded Assets (in ` crore)
Total Customer Deposits

Total Customer Deposits (CASA, Retail Term Deposits and
Wholesale Term Deposits) have increased by 43% from
` 57,719 crore as on March 31, 2020 to ` 82,725 crore as on
March 31, 2021. The Bank is primarily focused on growing
the Retail CASA and Retail Term Deposits, in order to reduce
the dependence on Wholesale Term Deposits.
Gradual Improvement in the CASA ratio
Reduced Exposure to the Infrastructure Segment
During FY21, the Bank’s CASA ratio has consistently improved
Again, as per the stated strategy, within the Wholesale Funded
every quarter and within a year it has grown from 31.87% as
Assets, the Infrastructure Financing portfolio decreased by
on March 31, 2020 to 51.75% as on March 31, 2021. The daily
27% from ` 14,840 crore as on March 31, 2020 to ` 10,808
average CASA Ratio of the Bank improved to 50.23% as of
crore as on March 31, 2021.
112 IDFC FIRST Bank

Infrastructure Finance Portfolio (` crores) Asset Quality
The Bank’s Gross NPA% reduced by 3 bps sequentially to
CORPORATE OVERVIEW
4.15% as on March 31, 2021, compared to the proforma
GNPA% of 4.18% as on December 31, 2020. The Net NPA%
reduced by 18 bps sequentially to 1.86% as on March 31,
2021, compared to the proforma Net NPA% of 2.04% as on
December 31, 2020. Provision Coverage Ratio (PCR) stood
at 56.23% as on March 31, 2021. The Gross NPA% and Net
NPA% for the Bank as of March 31, 2020 was 2.60% and
0.94% respectively. The NPA% figures as of March 31, 2021
includes the percolated effect of moratorium and standstill
due to COVID-19 situation and hence not comparable with
STATUTORY REPORTS
the NPA% figures of March 31, 2020.
March 2020
Proforma
December 2019 (Moratorium March 2021
Particulars December 2020
(pre COVID) implemented during (post COVID)
(post COVID)
the quarter)
Gross NPA 2.83% 2.60% 4.18% 4.15%
Net NPA 1.23% 0.94% 2.04% 1.86%
PCR (%) 57.34% 64.53% 52.35% 56.23%
As on March 31, 2021, the Gross NPA percentage of the percentage of the Retail Loan Book of the Bank was at 1.90%
Retail Loan Book was at 4.01% (compared to Proforma Retail (as compared to Proforma Retail NNPA of 2.35% as on
GNPA of 3.88% as on December 31, 2020) and Net NPA December 31, 2020).
March 2020
Proforma
December 2019 (Moratorium March 2021
Particulars December 2020
(pre COVID) implemented during (post COVID)
(post COVID)
the quarter)
Retail - Gross NPA 2.26% 1.77% 3.88% 4.01%
Retail - Net NPA 1.06% 0.67% 2.35% 1.90%
PCR (%) 53.67% 62.44% 40.52% 53.68%
Net Worth (Share Capital and Reserves & Surplus) & FY21 from ` 6,076 crore in FY20. The Total Operating Income
Capital Adequacy (Net Interest Income plus other revenues) of the Bank grew
by 24% YOY to ` 10,207 crore in FY21 from ` 8,237 crore in
The Bank’s net worth stood at ` 17,808 crore as on March
FY20. The growth in the Total Operating Income included
31, 2021 compared to ` 15,343 crore as on March 31, 2020.
the 97% growth in the trading gains. Excluding the same,
The book value per share stood at ` 31.37 as of March 31,
the core operating income of the Bank increased by 18% to
2021. The Bank raised ` 3,000 crores of fresh equity capital
` 9,002 crore in FY21 from ` 7,625 crore in FY20.
from marquee FIIs and DIIs through qualified institutional
placement on April 6, 2021. Including the same on the net Interest income from the loans originated through business
worth figure as of March 31, 2021, the revised net worth correspondents (BCs), were earlier being booked net of the
would have been ` 20,808 crore and the revised book value origination and servicing expense incurred by BCs. Effective
per share would have been ` 33.56. from Q4 FY21, such income is now booked on a gross basis,
and the origination and servicing expenses pertaining to
The Bank reported Capital Adequacy of 13.77% with CET-
this book is included in the operating expense line of the
1 ratio of 13.27% as of March 31, 2021. Calculated on the
Bank. For fair comparison purposes, the previous period
revised net worth after including the fresh equity raised of
interest income, operating expenditure (opex) figures, and
` 3,000 crores on the reported net worth as of March 31,
the resulting NIM% have been recomputed and presented.
2021 as mentioned above, the revised Capital Adequacy
Ratio, would have been 16.32% with CET-1 Ratio at 15.62%. The Net Interest Margin (NIM = Net Interest Income as % of
Interest Earning Assets) for the year was 4.98% excluding the
Profit and Loss Statement
one-time non-recurring income amount of ` 53 crore in FY21.
Net Interest Income The NIM% in FY21 improved by 107 basis point from 3.91%
The Bank reported 21% growth in Net Interest Income in FY20. The NIM% of the Bank has been increasing steadily
(interest earned less interest expended) to ` 7,380 crore for over the quarters since the merger in December 2018, as the

both the assets and liabilities of the Bank are undergoing the trading gains) for the bank was 78.79% in FY21 as compared
transformation in favour of the retail businesses resulting in the to 76.86% in FY20.
improvement of overall yields and cost of funds respectively.
Pre-Provision Operating Profit
Net Interest Margin (%)
The Pre-Provision Operating Profit of the Bank increased
by 31% YOY, to ` 3,113 crore in FY21 from ` 2,376 crore in
FY20. Excluding the Trading Gain, the Core Pre-Provision
Operating Profit grew by 11% YOY, to ` 1,964 crore in FY21
from ` 1,764 crore in FY20.
Provisions
The incremental provisions including provisions for NPAs,
other stressed assets, standard assets as well as write-offs
for the year ended March 31, 2021 was at ` 2,638 crore. The
total provisions as % of the average total assets of the Bank
was 1.68% for FY21.
(Pre-Merger) The erstwhile Capital First had portfolios like loan against
shares with ticket sizes above ` 20 lakh and loans with
annual interest payments, which were allowed for NBFCs
Non-Interest Income
but are not allowed for a Bank. On merger with the Bank,
The year FY21 experience a tepid YOY growth of 5% in fee dispensation was provided by the RBI for the said portfolio
& other income, from ` 1,550 crore in FY20 to ` 1,662 crore and such dispensation stood discontinued during the year.
in FY21, due to lower disbursals and business activities Due to this, the Bank had to make 100% provision on these
impacted by the lockdowns and weak economic condition loans amounting to ` 89 crore in Q4-FY21.
due to COVID-19 pandemic, especially in the first half of the
Net profit (Loss)
financial year FY21 as it was down by 35%. In the second
half of FY21, the business activities revived with disbursal For FY21, the Bank posted a net profit of ` 452 crore,
volumes and climbing to pre-COVID19 monthly run-rate by compared to net loss of ` 2,864 crore for FY20, despite
March 2021, the fee income grew by 36% YOY in H2-FY21. the COVID-19 impact on its businesses, operations and
collections. This affected the total income of the Bank and
The fee & other income also included the fees obtained from
also resulted in the need for the additional provisioning.
the non-funded assets of our Bank, which decreased by 8%
from ` 25,450 crore as on March 31, 2020 to ` 23,530 crore
RETAIL LIABILITIES: BUILDING A STRONG
as on March 31, 2021.
FRANCHISE
Operating Expenses
FY21 was a year of transformation for the Bank’s Liabilities
The operating expenses for the year ended March 31, 2021, and wealth management business. Our Liabilities proposition
were ` 7,093 crore, an increase of 21% on YOY basis from achieved significant breadth and scale which enabled the
` 5,861 crore in FY20. Post the merger, with the new strategic Bank to have a competitive advantage and deliver superior
plan and transformation journey to become a large retail customer experience.
banking player in India, the Bank is making investments
The Bank’s franchise strength is evident from the growth in its
for building the foundation blocks which will yield results
Liabilities franchise. The Bank recorded a 31% growth in the
going forward. During the year FY21, the Bank invested
number of retail liabilities accounts opened over that opened
significantly in the digital capabilities as the COVID-19
in FY 19-20. The retail deposits including Retail CASA and
situation hit the economy, enforcing the necessities for touch
Retail Term Deposits grew over 88% YOY to ` 63,894 crore in
free and remote business processes and operations. With
FY21, despite the COVID-19 impact. A total of 132 branches,
the requisite digital innovations and capabilities being built,
236 ATMs and 85 new Recyclers were added during the
the Bank has prepared itself on course to be future ready
year, taking the Bank’s footprint to 596 branches. Despite
for the digital wave in Indian Banking and Financial Services
challenging circumstances in FY21, our branches remained
system, with a strong focus on customer experiences. Along
open throughout the lockdown in FY21, helping customers
the way, the Bank also increased its footprints across India
by providing in-person support and assistance.
by opening 132 new Bank branches and 236 new ATMs and
85 new Recyclers. The Bank also invested in building the In FY21, the Bank overcame the challenging business
new products like credit card & gold loans and expanded conditions and offered customers convenient ways to
the manpower to scale up the new businesses further. As a transact, access their savings and current accounts, fixed
result, the cost to income ratio (on core income excluding the deposits, make digital payments and grow their wealth.
114 IDFC FIRST Bank

The Bank revised its interest rates on Savings Accounts The Bank started offering NRI Portfolio Investment Scheme
from 7% to 6% in FY21. These rates have now been further accounts that enabled NRI investors to invest in listed
CORPORATE OVERVIEW
reduced to 4% below ` 1 lakh, 4.5% from Rs 1 lakh-` 10 lakh companies in India through stock exchanges. As an industry-
and 5% from Rs 10 lakh-` 2 cr. The Bank is aware that the first, the account can be opened digitally through netbanking
CASA ratio may come down as a result of this reduction and in a few simple steps, along with instant issuance of the
savings account balances may shift to term deposits which Portfolio Investment Scheme permission letter.
may impact our CASA ratio, but the Bank is comfortable with
Expanding the product suite
CASA ratio in the range of 40-50% at the reduced savings
account interest rate as it reduces the Bank’s cost of funds The Bank continues to expand capital market offering for
and enables the Bank to become more competitive for the its customers with the launch of the Application Supported
products in the asset side. by Blocked Amount (ASBA). This allows customers to apply
for IPOs digitally via netbanking as well as through ASBA-
Digital Capabilities as Business Drivers
designated branches. The features of this offering include
STATUTORY REPORTS
While the Bank continued to invest across channels, including simplification of the application process and assistance
physical branches, a significant underlying business driver during the user’s online journeys.
was its enhanced digital capabilities. A rapid scale up of our
Yet another segment where the Bank expanded convenience
digital platforms complemented our branch presence and
was forex for retail customers. It offered services of global
strengthened our business model.
fund transfer in 13 currencies to resident as well as non-
The Bank has built the necessary digital capabilities with resident customers at competitive exchange rates. Our
customer friendly features and continues to develop on these customers can now also send money abroad digitally via
capabilities. In the new financial year, this will provide us netbanking 24/7 at guaranteed exchange rates for a wide
meaningful opportunities for growth. variety of purposes.
Customer experience is at the centre of all our strategies. Business Banking
In line with this business philosophy, the Bank launched
The Bank undertook a number of initiatives to offer best-in-
a world-class digital platform for mobile and netbanking
class products and digital platforms to small businesses.
that provided customers a whole new way of banking. The
With this objective, the Freedom Current Account & World
platform, called IDFC FIRST App. is available on browser
Business Account were launched. These variants provide
and mobile app, and comes with an easy-to-navigate user
competitive transaction charges across all domestic and
interface with a faster and safer login process. Once logged
international trade transactions. This provided customers the
in, the dashboard offers all relevant information, upfront. It is
ability to access their account anytime and from anywhere
intuitive, personalised, and enables all service requests with
without charges. The Bank supplemented this with its best-
‘one click’, including single-click fixed deposit opening. It is
in-class business account management app and digital trade
designed and built to provide a convenient and engaging
platform. The digital platform provides end-to-end support
customer experience.
from transaction initiation to regulatory closure with integrated
The Bank also launched a digitised processes for Corporate forex rate booking – all on a single platform.
Salary account opening. Earlier in the year, the Bank
As part of customer offerings in this space, the Bank curated
introduced Video KYC for digital account opening, thereby
‘Beyond Banking offers’ by partnering with various fin-techs
providing an integrated and seamless experience to
in the space of ERP solutions, HRMS payroll, legal, taxation
customers from account opening to KYC completion.
advisory, school management, society management, etc.
The Bank also launched SafePay, contactless debit card Our Beyond Banking product suite now has over 50 offers
payments on phone, a digital facility that allows customers and is growing at a healthy pace with an overwhelming
to make payments by simply waving one’s smartphone market response.
against a Near Field Communication (NFC)-enabled POS
In support of India’s start-up story, the Bank supports
terminal. SafePay embeds Near Field Communication (NFC)
customers in their early stages of business with preferential
technology in the IDFC FIRST Mobile App to enable secure
pricing and Beyond Banking offers. The merchant acquiring
payments using a debit card issued by the Bank.
solution was also launched by the Bank along with a simplified
NRI banking the UPI-QR solution to strengthen the proposition for retail
customers. These solutions have found healthy adoption and
The Bank’s NRI business grew significantly during the year as
acceptability by customers.
the Bank added a dedicated NRI Relationship Management
team to cater to the specialised needs of NRI clients. NRIs The Bank’s Business Banking vertical supports Micro,
have reposed faith in the Bank, evidenced from a significant Small and Medium Enterprises (MSMEs) by meeting their
growth in both balances and addition of new customers. The working capital requirements through a diverse offerings for
Bank also offered NRI customers an opportunity to hedge both funded and non-funded lending. The Bank developed
their Foreign Currency deposits as INR with enhanced yields. capabilities for the relationship manager to onboard

customers digitally in a hassle-free manner. The Kisan credit Government Banking
card continues to offer a secured working capital facility for
The Government Banking division continues to maintain
customers/ farmers involved in agricultural activities based
and further deepen strategic partnerships with Central and
on credit assessments related to cropping pattern, credit
various State Governments, Public Sector Undertakings and
bureau and reference checks as well as legal and technical
other government entities through new banking solutions,
valuation of the security.
backed by technological capabilities and agile services.
Corporate Salary business
Proactive participation in the e-Governance initiatives of
The Bank’s Corporate Salary accounts grew 38% the government through customised solutions to meet their
year-on-year and salary credits increased 41% year-on-year, requirements and ease of transacting for the citizens has been
despite corporates job and pay cuts across industries. Retail the division’s focus area. The Bank provides multiple product
CASA in the portfolio also saw stellar growth. suites to government clients including Account Management
Services, Corporate Salary Solutions, Transaction Banking,
To enhance digital experience in this segment, the Bank
e-Auction and other digital solutions, benefiting the citizens
launched the start-to-finish instant digital corporate salary
for example Contribution to PM CARES, Collections
account. Backed by Video KYC, the zero-contact processes
under Municipal, Housing and Education segment, and
does away with paper, biometric verification or physical
many others.
interaction between the Bank and customer.
The Government Banking division continues to engage
During the year, the Bank introduced a customised offering
in discussions with the key stakeholders to understand
for the Armed Forces with the launch of Honour FIRST salary
the requirements and opportunities to add value in the
account for Assam Rifles. The Bank also introduced Women’s
Government eco-system. The Group works closely with
Savings Account named FIRST Power and FD Life Secure – a
the branch banking teams to fulfil their banking needs at all
bundled offering of Fixed Deposit with a complimentary life
levels viz. State, Districts, Blocks, Panchayats and Villages
insurance cover. For graduate and post graduate students,
on the PFMS platform. This synergy has resulted in the Bank
the Bank launched Future FIRST account and for corporates
being empanelled by various state governments for providing
in the rural space, the Bank introduced Vishesh Salary
banking services.
account.
Despite the pandemic, the Bank’s effort to deliver banking
We continue to make strong advances in salary accounts as
services and seamless transaction execution facility digitally
our salary accounts products are preferred by corporates
have made the Bank a preferred one in this segment.
because of attractive interest rates, wide range of services,
no hidden fees, digital enhancements and experiences.
RETAIL ASSETS: RESETTING FOR GROWTH
Wealth Management
The Bank expanded its range and reach of retail loans in
The Bank made significant progress in growing its Wealth FY 21 to enable customers, largely individuals and small
Management business. The Bank’s wealth management businesses to avail financial services in the most hassle-free
AUM recorded 2x growth during the year to ` 3,100 crore. and convenient manner.
It adopted the multi-partner open architecture insurance
The Bank’s Retail Assets grew to ` 73,673 crore on March 31,
distribution model in FY21, adding two new life insurance
2021, from ` 57,310 crore as on March 31, 2020, registering
partners – ICICI Prudential Life and Bajaj Allianz Life.
29% growth. The retail loan book as on March 31, 2021
The year also saw the launch of the Bank’s digital wealth
includes the ECLGS portfolio of ` 1,687 crore. Excluding this,
management solutions through the new mobile app and
the retail loan book growth YOY in FY21 was 26%. Including
netbanking platforms.
inorganically acquired portfolio where underlying assets are
The new wealth management platform now offers unique retail loans; the Bank’s retail loans as a proportion of total
features such as ‘Consolidated Investment Dashboard’ funded assets were at 67% as on March 31, 2021.
where the customer can access all investments such as
Through FY21, the Bank continued to sustain the momentum
Mutual Funds, Fixed Deposits, Gold Bonds, PMS among
garnered in FY20 with a significant focus on expanding the
other investment on a single dashboard. The Bank received
product offering in line with market demand and digitisation
two awards during the year – ‘The Digital Banker’ awards for
to improve customer experience.
Best Wealth Management Digital Experience and Excellent
User experience for Netbanking. The Bank’s Home Loans portfolio was backed by a strong,
segmented approach, focus on portfolio quality and
For its Private Banking clients, the Bank added niche
enhancements in digital customer journeys. This helped
solutions such as Offshore Investment Products and
the business post sustained growth after the lockdown and
Immigration-based investment products to its product suite.
clock higher disbursement figures. During the year, the Bank
launched digital customer on-boarding experiences.
116 IDFC FIRST Bank

During the year, the Bank started providing holistic banking The team focused its efforts on building digital literacy,
solutions through its liability branches by serving the needs of inculcating mobile and online banking habits, and offering
CORPORATE OVERVIEW
both asset and liability customers. The Bank’s Personal Loan convenience and speed of world class banking within the
business expanded its presence to 103 locations with a good deepest pockets of India.
growth in the overall book in FY21. The Bank’s consumer
FY21 saw Rural Banking expand its presence across 9
durable business witnessed a sharp pick-up in demand
states and 225 branches across the country, almost a third
post lockdown. The Bank used advanced machine learning
of the total branches. This growth came with an increase in
techniques and adopted unique process flows to improve its
employee base, an expanded product suite across assets
origination processes The Bank successfully leveraged new
and liabilities, and improved digital offerings for customers.
business models such as self-fulfilment journeys for customer
on-boarding by dealers and collaborated with partners to Our Rural product offering now includes JLG loan and a wide
expand its retail distribution. range of loans including Gold loans and Home loans. On
the Liabilities side, the Bank’s has continued its focus on
STATUTORY REPORTS
New product variants such as personal line of credit, travel
Savings which contributed to building the habit of thrift in
line of credit, merchant loans, and Buy Now Pay Later loans
rural households, and channelising savings into the formal
in partnership with major e-commerce and financial services
banking channel. The Bank’s product proposition remains
entities across India were launched during the year. The Bank
committed to serving the last mile customer and ensures that
has been able to achieve 3X increase in month-on-month
it plays its part in the financial inclusion of the nation.
disbursals and 6X jump in assets under management in this
product segment in FY21. Despite the headwinds faced due to the pandemic, the
ethos of strong customer relationship ensured that the
In the last financial year FY21, the Bank launched its credit
team remained committed to supporting the wellbeing
card product with multiple variants targeted for different
of customers (with initiatives such as Gaon Gaon Mask
customer segment. The product was introduced with many
– through this initiative, we provided the materials for our
unique and differentiated features like dynamic interest rate
customers to stitch 2 lakh masks which were then distributed
(APR), lifetime free, interest free cash withdrawals (up to next
across hospital staff, police personnel, sanitation workers,
billing cycle date or 48 days, whichever is earlier) etc. Since
community members across the rural areas).
launch in January 2021, the Bank has already issued more
than 300,000 credit cards till June 2021. In this COVID impacted year, our Rural Banking division
engaged with customers about their well-being, educated
The Bank witnessed a 27% growth in Two-wheeler loans
them about moratorium and its impact on their loans, taught
and 12% in Used Car loan book in FY21. The Commercial
them contact-less ways of Banking along with making them
Vehicle loan book also grew by 21%, supported by increased
finance available when they needed it most. We continued to
focus on the retail and small commercial vehicles segment.
work with customers encouraging them to borrow and repay
The Bank announced additional tie-ups with preferred
digitally, do their financial transactions on the Mobile, offering
financers for all three segments, resulting in an expansion
them convenience and speed of world class banking, out of
of its customer base.
their mobile phones.
During the year, the Bank leveraged technology and analytics
to expand its cross-sell business and enhance its offerings to WHOLESALE BANKING
SME and liability customers. as a result, many of the Bank’s
The current financial year was one of the most challenging
existing customers could avail the benefit of pre-approved
ones for the Indian Corporate sector due to the pandemic.
loans in select product segments. This gave them access to
During the year, your Bank has worked along various RBI
emergency funds with a superior experience.
regulatory packages and continued its effort to maintain
The Bank continued to offer Micro Business Loans to micro the portfolio performance. Your Bank continued on the
entrepreneurs across 133 locations across the country. The strategy of transitioning its exposure from infrastructure
Bank’s specialised lending approach to these customers lending and large-ticket lending to a more diversified and
based on their credit personas has helped understand mid-sized lending. Even so, your Bank continues to have
customer needs better with effective risk profiling. a full-service suite of Corporate Banking with coverage
across Large Corporates, Emerging Large Corporates,
In the SME retail business, the Bank sustained the momentum
NBFCs and Financial Institutions. We offer all products
gained in the earlier year. It proactively reached out to eligible
encompassing Lending, Transaction Banking, Financial
customers under the Government’s Emergency Credit Line
Markets and Liabilities. Further, the Bank continues to focus
Guarantee Scheme. By March 2021, the Bank’s business
on improving profitability through improving its lending yields
reached an all-time high, surpassing pre-COVID levels.
and improving product penetration across its clients.
The Rural Banking division of IDFC FIRST Bank remained
Corporate Coverage
unwavering in its mission of transforming lives across rural
India. This year, the unit stayed on its course of providing The Bank’s Corporate Coverage Group continued its efforts
banking services to several villages and towns across India. to reduce the Bank’s balance sheet risk profile from long-term

and big-ticket infrastructure legacy assets to predominantly Key focus areas for the Corporate Coverage Group will
loans to operating mid-sized and more granular corporate continue to be:
banking assets.
• To obtain corporate salary account mandates and
During the year under review, the Bank’s Corporate Coverage increase core CASA liabilities
Group successfully reduced its Infrastructure Legacy Assets
• ELC segment asset growth
exposure by 4,032 crore over that of the previous year.
Similarly, certain large-ticket exposures to corporate entities • Earning higher fee from transaction banking, non-fund
were also reduced. Infrastructure loans decreased by 27% to based commissions, FX and Debt Capital Markets
` 10,808 crore as on March 31 2021 from ` 14,840 crore as business
on March 31, 2020. Infrastructure loans accounted for 9.23%
• Drive higher utilization of our world-class cash
of total funded assets as on March 31, 2021 as compared to
management services platform
13.87% as on March 31, 2020.
Financial Institutional Coverage
The Bank also opted for a cautious approach on its exposure
to the NBFC and FIG sector. The outstanding to this sector The Bank’s Financial Institutions Group addresses the finance
reduced from ` 12,645 crore on March 31, 2020 to ` 10,960 and banking needs of Domestic as well as International
crore in March 31, 2021. Financial Institutions.
The combination of these have led to the overall Wholesale The Domestic Financial Institutions Group (DFIG) team
Bank book reduce by ` 5,468 crore in its size over this year. engages with the domestic commercial banks, small finance
Going forward, the Bank will continue to work on the similar banks (SFBs), Insurance Companies, Financial Institutions
strategy and will continue to focus on asset quality. and Capital Market participants such as Exchanges, Mutual
The Bank’s credit rating threshold for initiating a relationship Funds, FPIs and AIFs. The Bank is focused to on-board large
continues to be in a healthy zone with most of the business liability-strong Institutions by offering superior transaction
being initiated with the better performing investment banking services through innovative products and assuring
grade corporates. client-centricity for product delivery. The Bank has been able
to create traction with large Institutions, thereby improving its
At the beginning of the financial year FY 20-21, RBI had issued footprint substantially.
the guidelines on the COVID regulatory package basis which
our Wholesale Banking business had offered moratorium The Bank actively engages with Institutions like SIDBI,
to its customers as per their requests. The moratorium was NABARAD, NHB and Exim Bank to avail refinance and
extended to 272 customers. The repayment schedule of these with overseas branches of domestic banks to avail foreign
customers were revised in line with the moratorium extended. currency borrowings. Leveraging on its strong relationships
Further, basis the customer request, for 14 customers the with banks, the Bank also acquired Priority Sector Assets to
accrued interest for CC /OD/WCDL facilities (for the deferment meet its regulatory requirements, through investment in IBPC
period up to August 31, 2020) was converted into a funded issued by these banks and purchased PSLCs from them.
interest term loan (FITL) which was repayable not later than The Bank’s International Financial Institutions Group (IFIG)
March 31, 2021. team is responsible for relationship management with
As part of the Emergency Credit Line Guarantee Scheme International Banks, Multilateral Agencies and offshore
(ECLGS) announced by the Finance Ministry to aid the Micro, Financial Institutions.
Small, Medium Enterprises (MSME) sectors in view of the The Bank continues to strengthen its network of international
economic distress caused by the COVID-19 pandemic, the banks and FIs to deliver efficient treasury and trade finance
wholesale banking segment extended credit to 7 MSME solutions to the Bank’s local customers, who have banking
customers under the ECLGS 1.0 scheme. Further under requirements offshore. The Bank also offers complete suite
the ECLGS 2.0 scheme, the wholesale banking segment of products encompassing Financial Markets, trade finance
extended credit facility to 20 borrowers in the sectors and financial advisory to the offshore banks and FIs, thereby
identified by the Kamath Committee on Resolution Framework enabling them to provide seamless India linked service to
and the Healthcare sector. 100% Guarantee coverage on the their clientele. Through strong relationship management and
amount for the credit facility under the ECLGS scheme has distinctive service, the Bank has built up strong network in
been provided by the NCGTC to the Bank. prominent India linked trade corridors. As of March 2021,
Further in August 2020, RBI announced a one-time special the Bank has been able to develop strong correspondent
window for lenders in order to restructure the current loans, banking network of over 250 global entities, spread across
which will further allow them to change repayment terms 56 countries.
for their borrowers who have been hit by the COVID-19
Financial Markets Group
lockdown. Under this scheme as on March 31, 2021, your
bank has granted restructuring to 13 clients. The Bank’s Financial Markets Group consists of Treasury,
Foreign Exchange/Interest Rate sales and Domestic Capital
118 IDFC FIRST Bank

Market business. Treasury manages Investments and funding based channel usage such as API Banking and Host-to-Host
from money markets for the Bank. This function ensures that connectivity apart from the existing online platform i.e, BXP.
CORPORATE OVERVIEW
the Bank meets its regulatory requirements of maintaining
CRR, SLR and LCR. This is achieved through a well-defined Backed by technology, various solutions in the bill payments
and monitored asset liability management process carried and collection space were customised to client requirements.
out under the guidance of the Asset-liability committee An emphasis on enablers such as e-NACH, API-based
(ALCO) of the Bank. It also manages the sensitivity to frameworks, BBPS, etc., ensured healthy business growth
interest rate movements for the Bank by utilising various and helped in self-sustaining current account balances for
market investments, money markets and permitted derivative the Bank. In addition to corporates, the Transaction Banking
products. vertical engages with various other segments such as
MFIs, NBFCs, MFs, Insurance companies, and Government
The treasury sales team helps clients manage risk of Banking clients to design innovative offerings.
exposure to currency and rates fluctuation through a diverse
The Bank consistently focused on the digital agenda for
STATUTORY REPORTS
suit of risk management products (FX Forwards / Time option
FX Forwards, FX Options and variants, Currency Swaps, Risk Trade flows, providing smooth and faster turnaround time for
Transformation products). The team also provides expertise clients for transaction processing. A comprehensive, inward
and online end to end solutions to handle remittances for both remittance module on trade platform has been successfully
retail and corporate clients. The Domestic Capital Markets developed which takes care of various aspects of settling
team provides debt financing solutions delivered through inward remittances like, export, non-export with FX rate
bonds, structured products and loans to raise funds for booking functionalities. The division implemented form
capital expenditure, working capital, refinancing and other rationalization which has resulted in reduced discrepancies
corporate requirements. Technology driven fully automated while processing clients trade transaction and operational
forex outward remittance solution for retail customers. excellence. These solutions are offered to all clients including
Ease of FX booking is of key focus to deliver superior MSME and corporates. The Bank also introduced new
customer experience. features and functionalities for the Supply Chain space,
aimed at achieving granular and sustainable business.
Since its start, the bank has successfully grown its business
Toll and Transit
with clients by offering and transacting in the full suite of
product solutions. Dealing rooms are set up across six The Bank continued to be one of the leading players in the toll
centres to cater to client requirements in the best possible and transit space with the acquisition of over 200 toll plazas
way. In house research is also disseminated to keep clients and issue of over 15,00,000 tags during the year. The Bank
abreast of market developments. Significant effort has been services fleet owners, automobile dealers and tech service
made to build robust online solutions for clients to further providers in the automobile and mobility world to provide
increase efficiency and service quality across products. digital solutions which are simple and secure to use.
The Bank’s FASTag is the only one that can be used for toll,
TRANSACTION BANKING
fuel and payments at parking lots. The Bank’s tie-up with
The Bank’s Transaction Banking solutions are designed HPCL enables customers to pay for fuel at an HPCL outlet
keeping in mind customers’ interest and convenience. using the IDFC FIRST FASTag. The Bank has also tied up
with four major shopping malls to enable customers to pay
The Transaction Banking vertical offers a unique state-of-
for parking with IDFC FIRST FASTag.
the-art digital platform which offers a unified interface for
accessing products and services.
OPERATIONS
During the year, the Bank offered digital solutions within Cash
The Operations function at the Bank has been designed to
Management on the payments as well as the collections side.
deliver a superior and differentiated customer experience.
The Bank continues to enhance its next-generation corporate
The Bank works alongside business and technology in an
banking portal the Business Experience Platform (BXP),
agile manner to deliver technology-enabled processes that
which unifies cash management, trade services, corporate
minimise paperwork and ensure seamless processing with
linked finance, and treasury services for a seamless banking
minimal manual intervention.
experience.
The Retail Operations Function of the Bank is committed
The Transaction Banking team works closely with technology
to deliver a superior experience for business growth and
partners, industry leaders and service providers to develop
collection strategies. With our primary focus on customer
various customised solutions to cater to the business
experience, we successfully introduced Credit Card
requirements of various customer segments. The Bank’s
Operations with strong process orientation, controls and
initiatives were well received and led to transitioning ~33
technology implementation. In view of the Covid-19 Relief
per cent of transactions to the digital mode. During the
policy implemented by RBI, we have facilitated Moratorium
year, a focused approach was made for specific segment-
1.0, Moratorium 2.0, Restructuring 1.0, ECGLS, and
ex-gratia Framework seamlessly. Our Operations team

has adopted “Innovative Operating Model” theme which our clients and front facing business teams by adopting a
primarily focused on encouraging Innovation by lateral out- split team approach seamlessly, combining work from home
of-box thinking based around preemptive actions with use of and work from office to deliver uninterrupted services through
technology, cutting cost and control the disintegrated value these testing times.
chain. We adopted an imaginative approach to support our
front-line teams in an agile manner and stay connected TECHNOLOGY
to offer differentiated solutions to fulfill rapidly changing
The Bank has further continued to build on its technology
customer needs.
platforms by expanding its coverage of digital state of the art
Throughout the year, the Operations team has delivered faster experiences across a wider variety of the banks products and
Time to Process against higher volumes across all products services. New product launches and the roll out of enhanced
through technology enabled delivery model and unified services especially in the areas of data management and
workflows. Major breakthroughs in technologies adopted microservices have widened the portfolio of offerings and
such as Robotics Process Automation (RPA Bots), OCR and the capabilities to respond faster to the ever changing market
SAS reporting were major drivers of uninterrupted services dynamics. As a by-product of the restrictions caused by the
during lockdown and facilitated higher scale of operations. pandemic, there has been a significant change in customer
We have been successful in implementing “Digilocker – A behaviour with a huge surge in usage of digital services
Digital India Initiative” solution as prescribed by Ministry of across all segments of customers with an expectation of end
Electronics and Information Technology (MeiTY), Government to end services being delivered digitally. The bank is pivoting
of India (GOI) in one our automation initiatives, becoming rare towards next generation platforms that are cloud native, open
in the industry to adopt. & extensible and flexible to meet the expectations of both
customers and employees alike. The need for an hybrid work
Adopting variablisation strategies to shift from conventional
environment with all the attendant security needs was also
operations model to a managed service model is getting
met in an efficient manner. Further, the bank has also created
implemented, which is bringing benefits of cost optimisation
capabilities that helps the business operations leverage the
and consolidation of services.
power of data & insights in a secure and transparent model
Our customer-facing deliveries and collaboration with to offer new products & services in a seamless manner. The
business through technology solutions along with strong Bank continues to build a differentiated technology team with
WFH strategy ensured uninterrupted services during a unique set of capabilities, defined new ways of working
lockdown. We are also strengthening our core capabilities and a harmonised partner ecosystem to build and sustain
to empower our frontend teams with rightsizing and data its edge in the market.
analytics During these lockdown waves, with adoption of
balanced scheduling of work from home and work from RISK
office, we were able to maintain our agreed turnaround time
The Bank promotes a strong risk culture throughout the
levels and accuracy expectations. This ensured seamless
organization. This is designed to help reinforce the Bank’s
operations of our core deliveries of onboarding, servicing,
resilience by encouraging a holistic approach to management
reconciliation, dispute settlement and repayments across all
of risk and return, and an effective management of risk,
products and portfolios of the Bank.
capital and reputational profile.
Wholesale Banking Operations provides transaction and
Consequent to the merger of erstwhile IDFC Bank Limited
accounting execution for all corporate banking products
and erstwhile Capital First Limited effective December 2018,
and key enterprise functions such as Clearing and Cash.
Bank has re-aligned its key policies and Risk Framework
It also has a demonstrated client orientation through the
forming an overall Risk framework of the merged entity.
client servicing team which provides targeted service to
clients through experienced client focused bankers having The Bank operates within an effective risk management
expertise across a range of products. Part of the account framework to actively manage all the material risks faced, in
opening and servicing process is digital and requires minimal a manner consistent with the Bank’s risk appetite, making the
manual intervention. Bank resilient to shocks in a rapidly changing environment.
The Bank aims to establish itself as an industry leader in
Through the year, the Operations team has delivered
the management of risks, and strive to reach the efficient
against higher volumes across products by leveraging
frontier of risk and return for the Bank and its shareholders,
technology-enabled systems, workflows and STP, wherever
consistent with its risk appetite.
possible. This has enabled us to deliver faster turnaround
times, across identified key products. The Bank has a robust risk governance framework. The
Board is principally responsible for approving the Bank’s risk
The pandemic has accelerated focus on technology and
appetite, risk tolerance and related strategies and policies. To
digital channels which has ensured that the Bank can
ensure that the Bank has a sound system of risk management
consistently deliver high levels of service in a cost-effective
and internal controls in place, the Board has established
manner, and at scale. The Operations team supported both
Risk Management Committee of the Board (RMC). The RMC
120 IDFC FIRST Bank

assists the Board in relation to the oversight and review of the Operational Risk
Bank’s risk management principles and policies, strategies,
Deregulation and globalisation of financial services, together
CORPORATE OVERVIEW
appetite, processes and controls.
with growing sophistication of financial technology and
Risk Appetite increasing complexity and volume of financial transactions,
are making the risk profiles of Banks more complex. A
The risk appetite is an expression of the amount and type of
growing number of operational losses and risk events, recent
risks that the Bank is able and is willing to take in pursuit of its
regulations, industry trends and new types of threats and
business objectives. The Risk Appetite Statement provides
exposures have highlighted the importance of Operational
strategic guidance around various parameters. The Risk
Risk management. Operational Risk touches every part
Appetite Framework is approved by the Board and put up
of the organisation from products, people, processes
for review/ revision to the Risk Management Committee of
and technology and hence it is important to identify and
the Board, at least on an annual basis, keeping in the view
manage proactively. The Bank has put in place Board
the changing business environment and the Bank’s business
STATUTORY REPORTS
approved governance and organisational structure to
strategy and competencies.
manage Operational Risks. A committee comprising senior
Credit Risk management personnel namely ‘Operational Risk and
InfoSec Risk Management Committee ’ is responsible for
Bank’s credit risk is controlled and governed by the Board
overseeing implementation of Board approved Operational
approved Credit Risk Management Policy. The Credit Risk
Risk Management policy and framework. Operational Risk
group has been established to independently evaluate
Management Department engages with the First Line of
all proposals to estimate the various risks as well as their
Defence (Business and Operating Units) on a continuous
mitigation. The Bank has rigorously adhered to the RBI
basis to identify and mitigate operational risks to minimise
mandated prudential norms on provisioning of stressed
the Risk and its impact.
assets and has adopted a stringent approach in taking
aggressive provisioning, which is aimed at preserving and Compliance Risk
protecting shareholder value. During the year, Our Bank
Compliance Risk is defined as the risk of legal or regulatory
has proactively worked on the resolution of the stressed
sanctions, material financial loss, or loss to reputation the
asset portfolio and has significantly reduced the stressed
Bank may suffer as a result of its failure to comply with
assets outstanding. Bank has also de-risked the portfolio
applicable laws, regulations, rules, standards, and codes of
by diversifying the credit portfolio across non-infrastructure
conduct. The management of compliance risk is an integral
sectors and focused on increasing shorter-tenure and non-
component of the governance framework at the Bank along
funded exposures. With these measures, we have sought to
with other internal control and risk management frameworks.
reduce the concentration risk in the portfolio.
The Bank has a Compliance Policy, duly approved by the
Market Risk
Board of Directors for effectively managing the compliance
The Bank’s trading positions in debt, foreign exchange, risk faced by the Bank. The Compliance function of the Bank
derivatives, and equity are subject to Market Risk. Market is an independent unit with adequate staff managing various
Risk Group is responsible for identifying, measuring and compliance activities of the Bank. The Compliance function
monitoring such risks. Our Bank has put in robust policy performs the following principal activities:
frameworks such as Market Risk Policy, Funds and Investment
(i) advisory services to businesses on regulatory matters
Policy, Forex and Derivatives Policy to ensure positions,
which are subject to market risk are maintained within the (ii) dissemination and implementation of regulatory
approved risk appetite of the Bank. Several models and tools guidelines/ directions
such as MTM, PV01, VaR, Stress testing, Capital Charge (iii) regulatory engagement
assessment and extensive limit management framework etc., (iv) managing AML/ KYC/ CFT
are used to measure and continuously monitor such risks.
(v) identifying, assessing, monitoring and reporting on
The tools, models and underlying risk factors are reviewed compliance risk The Compliance department assists
periodically to enhance their effectiveness. The group also the businesses and other functions for the management
supports the Asset-Liability Management (ALM) function. of compliance risks (to mitigate and prevent breaches of
The purpose of the Asset Liability Management Committee laws and regulations) in accordance with the compliance
(ALCO) is to act as a decision-making unit responsible for risk framework of the Bank. The Compliance department
integrated balance sheet risk-management from risk-return provides compliance assurance to the Management
perspective including strategic management of interest rate and Board through the Compliance Self-Certification
and liquidity risks. ALM function also supports measurement System and Compliance Testing Framework. The status
and monitoring of Liquidity Gaps, resilience to liquidity stress updates of compliance risk are regularly reported to the
using tools like LCR and Interest Rate Risk in Banking Book Management and Board.
by assessing impact on NII and Market Value of Equity due
to changes in underlying interest rates.

Information Technology and Information Security developed a comprehensive ICAAP policy and document, in
Risk line with regulations prescribed by the RBI.
Given that the Bank’s expansion strategy is more and more The document aims to assess the risk profile of the Bank
digital, cyber and Information Security risk is an important and whether the capital maintained is commensurate with
area of focus of the Bank. The Information Security Group the scale and complexity of operations. The document also
(ISG) is responsible for this function and works continually contains projections of financials for the Bank, and its capital
towards adoption of newer and better security practices. adequacy projections for next three years under normal and
ISG works as an independent group within Risk function stress conditions. It also contains relevant details of plans
and operates under the Information Security Management and strategies for meeting capital requirements. Stress
System framework (ISMS), which is aligned to ISO 27001 and testing forms an essential part of ICAAP. It requires the Bank
RBI Cyber Security Framework and other guidance’s issued to undertake rigorous, forward-looking assessment of risks
from time to time. The Bank is an ISO 27001: 2013 and PCI by identifying severe events or changes in market conditions
DSS certified organisation. ISG follows systematic approach which could adversely impact the Bank.
through people, process and technological security controls The ICAAP ensures that stress-testing reports provide
to prevent, detect, respond and recover from cyber-attacks senior management with a thorough understanding of the
and manage sensitive company information so that it remains material risks to which the Bank is exposed. Stress-testing
secure by design and practice. complements other approaches in the assessment of risk.
BitSight an independent cyber readiness rating company It is the primary indicator of the Bank’s ability to withstand
offers the most widely adopted Security Ratings solution. tail events and maintain sufficient levels of capital. It is used
BitSight Security Ratings range from 250 to 900 and indicate s to evaluate the financial position of the Bank under various
company’s relative security effectiveness. Each organisation plausible scenarios (base, medium and severe) to assist in
can receive one of the three following ratings: decision-making. It also assists the Bank in improving its risk
monitoring processes.
• Basic (upto 640)
Environment and Social Policy (E&S) and Appraisal
• Intermediate (below 740) Process
• Advanced (740 and Above) The Bank has a comprehensive environment and social
The Security Rating for IDFC FIRST Bank has moved from policy and a robust environment and social risk management
600 (Basic) to 790 (Advanced) over the past 12 months framework for its lending businesses. The Environmental
clearly validating our commitment to move towards Secured Risk Group (ERG) of IDFC FIRST Bank works proactively
Digital Bank as a continuous endeavour. with clients/ internal teams to identify, mitigate and manage
E&S risks associated with projects/ transactions. The
Capital Adequacy
Bank obtains environment-related regulatory compliance
The Bank manages its capital position to maintain strong information so as to ensure that the projects/ transactions
capital ratios well in excess of regulatory and Board it finances are in compliance with the applicable national
approved minimum capital adequacy at all times. The strong environmental legislations. IDFC FIRST Bank has developed
Tier-I capital position of the Bank is a source of competitive and adopted an exclusion list comprising sectors in which it
advantage and provides assurance to regulators, credit- will not engage in any financing activity. The Bank continues
rating agencies, depositors and shareholders. In accordance to hold the distinction of being India’s first financial institution
with the RBI guidelines on Basel III, the Bank adopts the to sign up for the Equator Principles (EP) – a credit risk
standardised approach for credit risk, basic indicator management framework for determining, assessing and
approach for operational risk and standardised duration managing environmental and social risk in Project Finance
approach for market risk. transactions. For the purpose of financing activities, IDFC
Capital management practices are designed to maintain a FIRST Bank has also identified sensitive sectors which have
risk- reward balance, while ensuring that businesses are potentially high impact on the environment and communities,
adequately capitalised to absorb the impact of stress events and where the Bank may have to deal with critical E&S issues.
including pandemic risks. The Internal Capital Adequacy
INTERNAL CONTROLS
Assessment Process (ICAAP) forms an integral part of the
IDFC FIRST Bank’s internal controls systems are based on
Supervisory Review Process (SRP) under Pillar 2 of the Basel
a framework of organizational policies, technology systems,
III Framework. SRP under the Basel III Framework (Pillar 2)
processes, and risk management practices. These controls
envisages the establishment of appropriate risk and capital
identify and mitigate various risks by ensuring effectiveness
management processes in banks and their review by the
and efficiency of operations, adequacy and reliability of
supervisory authority. ICAAP is a structured approach to
financial controls, monitoring and reporting systems and
assess the risk profile of the Bank and determine the level
compliance with applicable laws and regulations.
of capital commensurate with the scale and complexity of
operations. As part of the Basel III implementation, Bank has
122 IDFC FIRST Bank

The internal controls systems are aimed at ensuring adequate Sustaining the link to a common purpose
authorisation, accurate recording and reporting of all
The Bank continued to drive operational excellence in every
CORPORATE OVERVIEW
transactions in the Banks books of account, and safeguarding
aspect of its business. To do so, it was important to link our
the Banks assets. The Bank uses an array of technology
employees working remotely across different geographies
systems and processes for its operations including loan
back to the organization’s common purpose – that of serving
origination system, core banking system, treasury system,
our customers.
customer relationship management system, general ledger
system and other technologies, which operate under a robust Towards this, the Bank stepped up Learning & Development
control framework. in digital formats and invested in upskilling and re-skilling
of employees to prepare them for a dynamic business
The Bank has an independent Internal Audit Function,
environment.
headed by the Chief Internal Auditor who reports to the MD
& CEO of the Bank and the Audit Committee of the Board, Providing employees with flexible learning opportunities
STATUTORY REPORTS
in compliance with extant regulatory guidelines. The Internal made available digitally via mobile app was key to promoting
Audit Function of the Bank constitutes the third line of defence a culture of learning. Towards this, the Bank launched the
of the Bank and adopts a risk-based approach to provide mobile app called iLearn (Learning Management System) and
independent, objective assurance on the effectiveness of through it, imparted training in technology, leadership and
internal controls, risk management and information security soft skills. Other initiatives included AI-based assessment,
systems, compliance with regulatory requirements and virtual board games for managers to help upskill, reskill and
corporate governance to the Board, Management and other train, and self-learning platforms. This resulted in a sharp
stakeholders. increase in learning among employees with 322,605 learning
hours clocked in FY21.
The Internal Audit Department is appropriately staffed
with qualified and competent personnel to perform their Engaging employees in continual two-way dialogue
duties as outlined in the Internal Audit Charter which is
The Bank continued to provide a transparent working
approved by the Board of Directors. Internal Audit reports environment where employees would feel empowered to
all significant observations and their follow-up actions to the speak up and trigger a change in the interest of our customers
Audit Committee of the Board. Further, the Audit Committee and organization ethics.
reviews adequacy and effectiveness of the Bank’s internal
control environment and also monitors the implementation of A series of engagement initiatives during the year helped align
audit recommendations. The Audit Committee also reviews employees to the organization’s mission, and encouraged
and evaluates the functioning of the Bank’s Internal Audit them to seek help when required.
Department through independent meetings, reviews and The engagement took the form of townhalls, rewards
formal annual evaluations. and recognition events and digital interactions with
senior management. This allowed informal and organic
HUMAN RESOURCES: BUILDING EMPLOYEE conversations to emerge and an open two-way dialogue on
RESILIENCE business trends, customer expectations and new initiatives
The Bank responded very well to the first phase of the by the Bank. Such sessions enabled employees to stay
COVID-19 crisis in FY21. In compliance with government connected and also earn camaraderie in an ongoing crisis.
guidelines related to the pandemic, the Bank transitioned
overnight to provide a Work From Home (WFH) environment Each engagement initiative was curated to address specific
for a section of its workforce, automated processes and employee groups. The bank implemented avenues fordirectly
significantly scaled up digital initiatives for employees. connecting the key senior leadership team with frontline staff
and management trainees. The Bank implemented initiatives
Simultaneously, safety measures were enhanced for for catering to the needs of the technology teams, recognising
employees on the field, at branches and customer service star performers in rural banking and for other retail banking
centres, to enable uninterrupted service to our customers teams. ‘Your Voice’ enabled the HR team to reach out to
during the lockdown. specific employee groups to understand employee pulse
A new way of working and plan necessary interventions . The MD & CEO of the
Bank and other key senior management of the Bank routinely
Our employees at branches and offices responded well to addressed senior employees through Microsoft Teams and
workplace challenges. Employees who worked remotely provided necessary leadership on matters related to culture,
also successfully navigated the unprecedented levels of transformation, moratorium, growth, controls and all such
disruption created by the pandemic and stayed on-course leading matters. They also wrote and spoke to employees
to deliver desired business results. during townhalls on time to time as required.
A blend of remote-working and on-site service to customers
led to vastly different working models and cross-functional
collaborations. This helped meet the organization’s most
pressing needs and worked well for customers and business.

Focus on employee effectiveness and well-being India with the help of IT interventions and analytics, resulting
in efficient digital customer journeys.
The Bank continued to invest in the well-being of its teams.
The Human Resources team was empathetic and engaging The Bank has put in place robust systems and processes to
so as to support employees in meaningful ways. accomplish high growth in its retail deposit base, even during
the pandemic. It also showed the confidence to reduce peak
Numerous initiatives including free 24*7 online consultations
interest rates offered for savings account by 200 bps. The
with doctors, a medical room facility in our larger offices,
retail deposits including retail CASA is a big opportunity
a free COVID-19 Assistance Program for employees and
for the Bank going forward as it gears itself with its new
their family members, were launched. In addition, monthly
Banking App and website to provide seamless experience
workshops and webinars on wellness were also conducted.
to depositors. Interestingly, they can use the same app as a
Our Group insurance policies offering medical, accident and one-stop solution for usual banking, transactions, payments,
life covers continued to be a critical support for employees investments, expense management, and so on.
during these challenging times. The Bank also offered
Although some of the consumption segments such as
attractive top-up options for increased medical insurance
travel, entertainment, restaurants and others were impacted
coverage and enhancement in the cover for women
comparatively higher by the COVID-19 pandemic during
employees. A Wellness Week was held in December 2020
the first half of FY21, the overall consumption trajectory
with online mental & physical wellness sessions.
was positive during the second half of FY21. This indicates
Talent continued to be key to our transformation a sharp recovery and growth opportunity going forward,
into a stronger Bank especially in the digital transactions, e-commerce, consumer
The Bank succeeded in hiring high quality talent to ensure durables, car and two wheeler sales and the high demand
seamless business continuity. The team digitised the entire for the mortgage products.
hiring process, thus providing applicants and managers a The interventions and new schemes from the Government
unified candidate application and screening process. The of India also helped the SME segments cope with the tough
Bank witnessed an uptick in hiring around mid-September and economic scenario and SMEs have subsequently shown
ended the financial year on a high note, resulting in successful strong resilience and recovery for growth. These segments
expansion into new geographies. Onboarding and induction have been key for the Bank’s business growth going forward.
of new recruits was made completely paperless and digitised. Recently, the Bank also announced offering home loans for
The Bank launched its new career website and Employer the select customer segment at a very competitive (6.90%
Value Proposition, which resulted in significant enhancement annually) interest rate. This indicates the Bank’s assessment
of its brand as a preferred company to work with. of the growth opportunity of this segment and its confidence
Continuing to meet the safety needs on its capabilities to capture such opportunity, apart from
continuing with the existing product offering to the chosen
As the second wave of the COVID-19 crisis sweeps the customer segments including the rural customers.
country, we continue to foster a culture of collaboration and
a strong focus on the safety of our employees. The Bank has also launched credit card as a product with
differentiated features like dynamic pricing which would help
OPPORTUNITIES & OUTLOOK the Bank to participate in the opportunity in this segment
FY2021 has been an exception year for the entire world resulting in higher banking transaction activities and fee
and specifically with Indian Banking & Financial Services income growth.
sector as the world struggled with the impact of COVID-19 The country has also experienced the impact of the second
pandemic which brought in extended national lockdown for wave of COVID-19 pandemic starting in late March 2021
the entire country, stalling the economic progress across which turned out to be more fatal as compared to the first
industries. The country experienced a gradual shift towards wave. However, the rapid vaccination program as well as
“new normal” which resulted in a spurt in demand for essential localised restrictions initiated by the Government of India
consumptions, personal mobility, digital products, focus on and the respective State Governments have helped the
health-oriented practices and a need for larger comfortable entire country to move through the peak infection scenarios
space for living. and situations improved gradually as we see right now. The
During this time, IDFC FIRST Bank, as a new age Bank with economic activities are gradually coming back on track and
focus on digital innovations and interventions, has been in expected to soon reach the March-2021 level, as it was before
the cross-road of the pandemic and the new opportunities the COVID-19 second wave. Although the first two quarters of
emerging from the situation. As a strategic choice, post the the current financial year may turn out to be tepid in terms of
merger in December 2018, the Bank has drifted away from business growth, the entire country is now better prepared for
the wholesale financing and infrastructure financing to focus faster recovery in the second half of the current financial year.
on retail banking. Such a strategy will help the Bank cater The Bank has utilised this time to strengthen its processes and
better to Indian consumers and SMEs in the urban and rural product offering to come out with excellent digital solutions
and is poised for the growth opportunity ahead.
124 IDFC FIRST Bank

“CAUTIONARY STATEMENT
Statements made in this Management Discussion and new regulations and Government policies that may impact
CORPORATE OVERVIEW
Analysis Report may contain certain forward-looking the Bank’s businesses as well as the ability to implement its
statements based on various assumptions on the Bank’s strategies. The information contained herein is as of the date
present and future business strategies and the environment referenced and the Bank does not undertake any obligation
in which it operates. Actual results may differ substantially to update these statements. The Bank has obtained all
or materially from those expressed or implied due to risk market data and other information from sources believed to
and uncertainties. These risks and uncertainties include be reliable or its internal estimates, although its accuracy or
the effect of economic and political conditions in India and completeness cannot be guaranteed.”
abroad, volatility in interest rates and in the securities market,
STATUTORY REPORTS

Corporate Governance Report
IDFC FIRST BANK’S PHILOSOPHY ON CORPORATE Listing Regulations and in accordance with the best
GOVERNANCE practices in Corporate Governance across the Industry.
IDFC FIRST Bank Limited (‘IDFC FIRST Bank’ or the ‘Bank’), Changes in the Board
since its inception is committed to adopting the highest
standards of Corporate Governance through its commitment During the year under review, the Board of the Bank had
to values and ethical business conduct. The Bank strongly an optimum combination of Executive and Non-Executive
believes that sound Corporate Governance is an essential Directors with excellent knowledge and experience in
ingredient for corporate success and sustainable economic various fields relating to the business activities of the Bank.
growth. The Bank, through its stringent adherence to
During the year under review, pursuant to the instructions
compliances, aims to enhance and retain investor trust and
received from Department of Financial Services, Ministry of
social acceptability.
Finance, Government of India (‘Ministry of Finance, GoI’) for
The Bank endeavors to conduct its operations with change in Nominee Director, the Board through its Circular
transparency and honesty towards all its stakeholders Resolution dated June 22, 2020 approved the appointment
including customers, shareholders, regulators, employees of Dr. Sanjay Kumar (DIN 08764419) as Additional Director
and the general public at large. The Bank’s business in the category of Nominee Director representing Ministry of
focuses on maximizing return on assets while managing Finance, GoI with effect from close of business hours of June
inherent risks, thus ensuring that the Bank’s performance 22, 2020, subject to the approval of the shareholders of the
goals are met with integrity. The Bank’s systems, policies and Bank and other applicable statutory/ regulatory approvals
frameworks are regularly upgraded to meet the challenges and noted the consequent stepping-down of Nominee
of rapid growth in a dynamic external business environment. Director, Ms. Anindita Sinharay (DIN 07724555) representing
Governance practices not only deal with the growing size of Ministry of Finance, GoI, with effect from close of business
business, but also deal with the increase in complexities of hours of June 22, 2020.
the organisational structure that supports such growth.
The aforesaid appointment of Dr. Sanjay Kumar was
In India, Corporate Governance standards for listed approved by the shareholders of the Bank at its 6th Annual
companies are regulated by the Securities and Exchange General Meeting held on July 30, 2020.
Board of India (‘SEBI’) through SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (‘Listing During the year under review, Dr. Rajiv B. Lall (DIN 00131782)
Regulations’). As a Bank, which believes in implementing tendered his resignation as Part-Time Non-Executive
Corporate Governance practices that go beyond just Chairman of the Bank citing reason that he has been dealing
meeting the letter of law, IDFC FIRST Bank not only with prolonged personal health issues. The Board noted his
complies with the requirements of Companies Act, 2013, resignation with effect from September 04, 2020, vide its
Banking Regulation Act, 1949 and mandated elements of Circular Resolution dated September 04, 2020.
Listing Regulations, but also incorporates most of the non-
Pursuant to Reserve Bank of India (‘RBI’) Circular Ref:DBOD.
mandatory recommendations.
No.BC.24/08.139.001/2002-03, dated September 09, 2002,
This Chapter, read with the chapters on Management on ‘Implementation of Recommendations of the Consultative
Discussion & Analysis, and Directors’ Report confirms IDFC Group of Directors of Banks/ Financial Institutions’, in view
FIRST Bank’s compliance with the Listing Regulations. of attaining an age of 70 years, Mr. Anand Sinha (DIN
00682433) ceased to be an Independent Director of the
BOARD OF DIRECTORS Bank with effect from the close of business hours of February
02, 2021. The Board noted the same at its meeting held on
The Board of Directors (the ‘Board’) of the Bank brings with
January 30, 2021.
them, a wide range of significant professional expertise, skills
and rich experience across a wide spectrum of functional The Ministry of Finance, GoI vide its communication dated
areas such as Management, Administration, Economics, March 25, 2021 had mentioned that the Government of India
Banking, Finance, Accounting, Auditing, Information has been minority shareholder in Bank and is not involved
Technology, Business Management, Risk Management, in day to day operation of the Bank, and accordingly it was
Agricultural Economics, etc. decided to withdraw its nominee representation from the
Board of the Bank. Pursuant to aforesaid communication, the
The Bank encourages Board diversity and balance of skills
Board of the Bank vide its Circular Resolution dated March
at the same time, to ensure effective decision making.
25, 2021, noted the cessation of directorship held by Dr.
The Board has been constituted in compliance with the Sanjay Kumar as Non-Executive Non-Independent Director
Banking Regulation Act, 1949, the Companies Act, 2013, (Nominee Director representing Ministry of Finance, GoI) of
126 IDFC FIRST Bank

the Bank with effect from close of business hours of March The Board has complete access to all the information about
25, 2021. the Bank. The Board is frequently provided with necessary
documents, reports and internal policies to enable them to get
Accordingly, as on March 31, 2021, the Board of the Bank
CORPORATE OVERVIEW
familiarised with the Bank’s procedures and practices. The
consisted below eight (8) Directors, out of which five (5) were details of familiarisation programmes imparted to Directors
Independent Directors (the ‘IDs’), two (2) Non-Executive are disclosed on the Bank’s website: www.idfcfirstbank.com
Non-Independent Directors and one (1) Executive Director: under ‘Investors’ section.
Name of the Director (DIN) Position on the Board Skills/ Expertise/ Competence of Board of Bank
Mr. Aashish Kamat : Independent Director The Bank recognizes and embraces the importance of a
(DIN 06371682) diverse Board and is endowed with appropriate balance
Dr. (Mrs.) Brinda Jagirdar : Independent Director of skills, experience and diversity of perspectives thereby
(DIN 06979864) ensuring effective Board governance. The Board has
Mr. Hemang Raja : Independent Director reviewed and adopted the Policy on Board Diversity, which
(DIN 00040769) sets out its approach to ensure Board diversity, so as to
STATUTORY REPORTS
Mr. Pravir Vohra : Independent Director enhance its effectiveness while discharging its fiduciary
(DIN 00082545) obligations towards the stakeholders of the Bank. The
Mr. Sanjeeb Chaudhuri : Independent Director
Bank considers diversity in skills, regional and industry
(DIN 03594427)
experience, expertise and educational background whilst
Mr. Sunil Kakar : Non-Executive Non-Independent
determining the composition of its Board. The Bank also
(DIN 03055561) Director
Mr. Vishal Mahadevia : Non-Executive Non-Independent
considers the principles relating to fit and proper norms as
(DIN 01035771) Director prescribed by the RBI and confirms that each Director is also
Mr. V. Vaidyanathan : Managing Director & Chief in compliance with the norms as prescribed by the Ministry
(DIN 00082596) Executive Officer (the ‘MD & CEO’) of Corporate Affairs (‘MCA’) and SEBI under applicable laws,
whilst determining the composition of its Board.
Mr. Sunil Kakar is representing IDFC Limited. As on March
31, 2021, IDFC Financial Holding Company Limited held Our Bank, being a Banking Company, is regulated by
39.98% equity shares in the Bank. the provisions of Banking Regulation Act, 1949, Listing
Regulations and the Companies Act, 2013. In terms of Section
Subsequent to the year under review, based on the 10A(2)(a) of the Banking Regulation Act, 1949 read with RBI
recommendation of the Nomination and Remuneration notification no. DBR. Appt. BC. No.38/29.39.001/2016-17
Committee (‘NRC’), the Board at its meeting held on April dated November 24, 2016, requires that not less than 51%
30, 2021, approved the appointment of Mr. S. Ganesh Kumar of the total number of members of the Board of Directors of
(DIN 07635860) as an Additional Director in the category a Banking Company shall consist of persons, who shall have
of Independent Director of the Bank for a period of five (5) special knowledge or practical experience in respect of one
consecutive years, effective from April 30, 2021 to hold office or more of the following matters, namely;
up to April 29, 2026 (both days inclusive). Further, on May 08,
(i) accountancy
2021, the Board of Directors on the recommendation of the
NRC, approved the re-appointment of Mr. Pravir Vohra (DIN (ii) agriculture and rural economy
00082545) as an Independent Director of the Bank for a
(iii) banking
second term of five (5) consecutive years, commencing from
August 01, 2021 up to July 31, 2026 (both days inclusive). (iv) co-operation
The aforesaid appointment of Mr. S. Ganesh Kumar and re- (v) economics
appointment of Mr. Pravir Vohra is subject to approval of the (vi) finance
shareholders of the Bank at ensuing Annual General Meeting
and other applicable statutory/ regulatory approvals, as (vii) law
required. (viii) small-scale industry
Further, the Board of Directors of the Bank at its meeting held (ix) Information Technology
on June 16, 2021, based on the recommendation of the NRC
and performance evaluation, as applicable, have approved (x) Payment & Settlement Systems
the re-appointment of Mr. V. Vaidyanathan (DIN 00082596) (xi) Human Resources
as the MD & CEO for a period of three (3) years with effect
from December 19, 2021, subject to the approval of the (xii) Risk Management
shareholders and the Reserve Bank of India. (xiii) Business Management
Brief profiles of all the Directors of the Bank are available (xiv) any other matter the special knowledge of, and practical
on the Bank’s website at www.idfcfirstbank.com under the experience in, which would, in the opinion of the RBI, be
‘Board of Directors’ section. useful to the Banking Company.

Further, not less than two Directors shall be persons having special knowledge or practical experience in respect of agriculture
and rural economy, co-operation or small-scale industry.
The Bank has identified above skills/ expertise/ competencies as required to be possessed by the Board of our Bank, to
function effectively in the context of businesses and the sectors in which Bank deals.
Based on the confirmation and declaration taken from the Directors of the Bank, the Board of Directors at its meeting held on
May 08, 2021 noted the following skill set, special knowledge or practical experience of the Directors:
Name of the Director Position on the Board Skill set, special knowledge or practical experience
Mr. Aashish Kamat Independent Director Accountancy, Auditing, Banking, Finance, Risk
Management and Business Management
Dr. (Mrs.) Brinda Jagirdar Independent Director Banking and Economics including Agriculture Economics
Mr. Hemang Raja Independent Director Finance and Management
Mr. Pravir Vohra Independent Director Information Technology, Banking, Economics and
Payment & Settlement Systems
Mr. Sanjeeb Chaudhuri Independent Director Banking, Business Management, Rural Economics, Risk
Management, Information Technology and Payment &
Settlement Systems
Mr. S. Ganesh Kumar* Additional - Independent Director Banking, Regulation and Supervision, Accounting,
Information Technology, Payment and Settlement Systems,
Risk Management, Business Continuity Management,
Institution Setting-up
Mr. Sunil Kakar Non-Executive Non-Independent Director Finance
Mr. Vishal Mahadevia Non-Executive Non-Independent Director Economics and Finance
Mr. V. Vaidyanathan MD & CEO Banking, Business Management and Risk Management
* Mr. S. Ganesh Kumar has been appointed as Independent Director of the Bank, with effect from April 30, 2021.
The Board of the Bank is guided by the above provisions and the business requirements during appointment of any new
Director on the Board.
As on date of this Report, the Board of our Bank is formed in compliance with the requirements of all applicable laws.
CODE OF CONDUCT Further, the Bank has received a certificate from

The Bank has in place a Code of Conduct (‘Code’) for M/s. Bhandari & Associates, Company Secretaries that
none of the Directors on the Board of the Bank have been
Board of Directors and designated Senior Management
debarred or disqualified from being appointed or continuing
Personnel (‘SMP’) of the Bank. The Code is available
as Directors of Companies by the Securities and Exchange
on the Bank’s website: www.idfcfirstbank.com under
Board of India/ Ministry of Corporate Affairs or any such
‘Investors’ section.
statutory authority (Certificate annexed to this Report as
All Directors and designated SMP have affirmed their ANNEXURE A).
compliance with the Code. A declaration to this effect duly
The terms and conditions of appointment of IDs are also
signed by the MD & CEO is enclosed at the end of this
disclosed on the Bank’s website: www.idfcfirstbank.com
Report.
Further, all the IDs have confirmed that they meet the
criteria mentioned under Regulation 16(1)(b) of the Listing BOARD MEETINGS
Regulations read with Section 149(6) of the Companies Act,
The Board meets at least once a quarter to review the
2013. Also, they have given a declaration of independence
quarterly results along with other agenda items and
pursuant to Section 149(7) of the Companies Act, 2013, read
additional meetings are conducted from time to time to
with Rule 5 of Companies (Appointment and Qualification of
consider significant matters, whenever required. The dates
Directors) Rules, 2014 along with their affirmance to the Code of Board meetings for the next financial year (‘FY’) are
for Independent Directors as prescribed under Schedule decided well in advance and are informed to the Directors
IV of the Companies Act, 2013. The Board confirms that in so as to enable them to manage their schedule effectively
the opinion of the Board, the Independent Directors fulfill and prepare for the meetings well in advance.
the conditions specified in the Listing Regulations and are
independent of the Management.
128 IDFC FIRST Bank

Also, the Bank makes available video conferencing facility on the following dates:
or other audio-visual means, to enable larger participation
• May 01, 2020
of Directors in the meetings, whenever required. During the
CORPORATE OVERVIEW
year all the meetings of the Board and its Committees were • May 22, 2020
held through video conference due to COVID-19 pandemic
• July 24, 2020
restrictions across country.
• July 28, 2020
In consultation with the MD & CEO and the Management
team, the Company Secretary prepares the agenda along • August 28, 2020
with the detailed notes thereon. Directors and invitees are
• September 11, 2020
free to recommend inclusion of any matter in the agenda for
discussion. • October 08, 2020
SMP are also invited to attend the Board meetings, make • October 31, 2020
presentations and provide additional inputs to the agenda
STATUTORY REPORTS
• January 09, 2021
items under discussion, whenever required.
• January 30, 2021
The responsibilities of the Board inter-alia include
formulating and monitoring plans, business strategies, • February 18, 2021
budgets, information security methods, reviewing financial • March 22, 2021
results, appointment/ cessation and remuneration of SMP
and Key Managerial Personnel (‘KMP’), perusing of policies • March 31, 2021
and procedures, etc. The Board reviews on a quarterly basis The maximum gap between any two consecutive meetings
the compliance reports of all laws applicable to the Bank, was less than 120 days. The necessary quorum was present
including the Corporate Governance reports submitted to for all the meetings.
the Stock Exchanges.
Periodic presentations are made at the Board/ Committee
The RBI prescribes seven comprehensive critical themes meetings on business strategy, performance updates,
in Board deliberation, to be placed before the Board of financial statements etc. Minimum Information to be placed
Directors, vide its circular on ‘Calendar of Reviews’. These before the Board of Directors as mentioned in Schedule II
themes include Business Strategy, Risk, Financial Reports Part A of the Listing Regulations is placed before the Board
and their integrity, Compliance, Customer Protection, for its consideration, as and when applicable.
Financial Inclusion and Human Resources. Agenda items
within the scope of these themes are primarily presented to Details of Directors of the Board, along with their attendance
the relevant Committees of the Board, report of which is then at the Board meetings and Annual General Meeting (‘AGM’)
placed at the Board meetings. held during FY 2020-21, other directorships, memberships/
chairmanships in Committees, etc. as on March 31, 2021 are
During FY 2020-21, thirteen (13) Board meetings were held given in Table No. 1.

Table No. 1: Composition of Board of Directors for FY 2020-21 and other details as on March 31, 2021
Name of the Director DIN Completed Position on the Board Board Meetings
Age attended in FY 2020-
21
Mr. Aashish Kamat 06371682 55 Independent Director 12/13

Dr. (Mrs.) Brinda Jagirdar 06979864 68 Independent Director 13/13
Mr. Hemang Raja 00040769 62 Independent Director 13/13
Mr. Pravir Vohra 00082545 66 Independent Director 13/13
Mr. Sanjeeb Chaudhuri 03594427 68 Independent Director 13/13

Mr. Sunil Kakar 03055561 63 Non-Executive Non-Independent Director 13/13
(representing IDFC Limited – Equity
Investor)
Mr. Vishal Mahadevia 01035771 48 Non-Executive Non-Independent Director 13/13
Mr. V. Vaidyanathan 00082596 53 Managing Director & Chief Executive 13/13

Officer
Dr. Rajiv B. Lall 00131782 63 Part-Time Non-Executive Chairman 2/5
Mr. Anand Sinha 00682433 70 Independent Director 10/10
Dr. Sanjay Kumar 08764419 44 Non-Executive Non-Independent Director 0/10
(was representing Ministry of Finance, GoI
Ms. Anindita Sinharay 07724555 45 – Equity Investor) 0/2
Notes:
1 Ms. Anindita Sinharay ceased to be Government Nominee Director, with effect from close of business hours of June 22, 2020, pursuant to
communication received from Ministry of Finance, Government of India.
2 Dr. Sanjay Kumar was appointed as Government Nominee Director of the Bank, with effect from close of business hours of June 22, 2020 and
later on, he ceased to be Government Nominee Director with effect from close of business hours of March 25, 2021, pursuant to communications
received from Ministry of Finance, Government of India.
3 Dr. Rajiv B. Lall has resigned as Part-Time Non-Executive Chairman of the Bank with effect from September 04, 2020.
4 Mr. Anand Sinha ceased to be Independent Director of the Bank with effect from close of business hours of February 02, 2021, in view of him
attaining an age of 70 years.
5 Subsequent to FY 2020-21, Mr. S. Ganesh Kumar has been appointed as Independent Director of the Bank with effect from April 30, 2021.
6 None of the Directors of the Bank were Member of more than 10 committees or acted as Chairperson of more than 5 committees across all
Public Limited Companies in which they were Directors in terms of Regulation 26 of the Listing Regulations.
7 None of the Directors held directorship in more than 10 Public Limited Companies.
130 IDFC FIRST Bank

Whether Number of Directorships Directorship in other Listed Company No. of Committee
CORPORATE OVERVIEW
attended of Indian of other excluding IDFC FIRST Bank Membership
Sixth AGM Public Limited Companies^ (Category of Directorship) (Chairmanship)
held on July Companies of Companies
30, 2020* (including (including IDFC
IDFC FIRST FIRST Bank)#
Bank)
Yes 1 1 None 1 (1)
Yes 6 0 Rane Engine Valve Limited (Independent Director) 5 (0)
Rane Brake Lining Limited (Independent Director)
Yes 2 0 Multi Commodity Exchange of India Limited 1 (0)
(Non-Executive – Non Independent Director)
STATUTORY REPORTS
[Shareholder Nominee Director]
Yes 4 0 Thomas Cook (India) Limited 5 (2)
(Independent Director)
3i Infotech Limited
(Non-Independent Director)
Yes 1 0 None 2 (1)
Yes 6 3 IDFC Limited 2 (0)
(Executive Director, Managing Director & CEO)
No 3 1 Apollo Tyres Limited 1 (0)

(Non-Executive – Non Independent Director)
Yes 1 0 None 1 (0)
No
Yes Not Applicable, as ceased to be Director of the Bank as on March 31, 2021
Yes
Not
Applicable
8 None of the Directors were related to each other.

9 None of the Directors of the Bank served as Director or Independent Director in more than 7 listed companies.
10 Mr. V. Vaidyanathan, MD & CEO, was not on Board of any other company.
* Chairpersons of the Audit Committee, the Nomination and Remuneration Committee, and the Stakeholders’ Relationship and Customer Service
Committee were present at the 6th AGM held on July 30, 2020. Dr. Rajiv B. Lall and Mr. Vishal Mahadevia could not attend the 6th AGM due to
their personal commitments/ exigencies.
^ Excludes directorship held in Foreign Companies but includes Private Limited Companies and Section 8 Companies in India.
# Includes memberships of Audit Committee and Stakeholders’ Relationship Committee of all Indian Public Limited Companies including IDFC
FIRST Bank Limited; figures in brackets indicate number of Committee Chairmanships as per Regulation 26 of the Listing Regulations. Section
8 Companies have been excluded for the purpose of Committee Memberships/ Chairmanships.

BOARD COMMITTEES As on March 31, 2021, the Bank had the following
Management Committees:
The Board has constituted various Board-level Committees
to delegate particular matters that require greater and • Credit and Market Risk Committee
more focused attention. These Committees take informed • Operational and Information Security Risk Committee
decisions in the best interest of the Bank. Also, these
Committees monitor the activities falling within their terms of • Asset Liability Management Committee
reference and recommend their views to the Board. • Product Approval Committee
Pursuant to appointment of Mr. S. Ganesh Kumar as • Customer Service Committee
Independent Director and in terms of RBI Circular No. • Investment Committee
RBI/2021-22/24DOR.GOV.REC.8/29.67.001/2021-22
dated April 26, 2021 on ‘Corporate Governance in Banks • Premises Committee
- Appointment of Directors and Constitution of Committees • Information Technology Steering Committee
of the Board’, the Board Committees were reconstituted
• Data and Cyber Security Committee
alongwith necessary quorum requirements.
• Internal Audit and Controls Committee
As on March 31, 2021, the Bank had following Board-level
Committees, which have been constituted in accordance • Executive Committee
with the applicable provisions of law, wherever applicable: • Human Resources Committee
• Audit Committee Details on composition of the Board-level Committees, brief
• Risk Management Committee terms of reference and number of meetings held during FY
2020-21, are given hereinafter:
• Nomination and Remuneration Committee
• Credit Committee 1. Audit Committee
• Information Technology Strategy Committee As on March 31, 2021, the Audit Committee comprised four
(4) members, three (3) of whom were IDs and one (1) Non-
• Fraud Monitoring Committee Executive Non-Independent Director viz. Mr. Aashish Kamat
• Stakeholders’ Relationship & Customer Service – Chairperson, Mr. Pravir Vohra, Mr. Sanjeeb Chaudhuri and
Committee Mr. Sunil Kakar.
• Corporate Social Responsibility Committee Also, the Chief Financial Officer, Statutory Auditors and the
• Allotment, Transfer and Routine Matters Committee Internal Auditors are invitees to the meetings of the Audit
Committee.
• Wilful Defaulter or Non-Cooperative Borrower Review
Committee All members of the Audit Committee are financially literate
and have accounting and related financial management
Majority of the members of most of the Board – level expertise.
Committees are IDs and most of these Committees are
chaired by IDs. The Committee met six (6) times during FY 2020-21, on
May 21, 2020, May 29, 2020, July 28, 2020, September 11,
Mr. Satish Gaikwad, Head – Legal & Company Secretary 2020, October 30, 2020 and January 30, 2021. The meeting
acts as the Secretary for all the Board – level Committees held on May 21, 2020 was adjourned to May 22, 2020 and
and ensures adherence to all laws and regulations for the meeting held on October 30, 2020 was adjourned to
conducting Committee meetings. October 31, 2020, for discussion of few agenda items. The
Also, the Bank has put in place, a Management Committee time gap between two consecutive meetings was less than
framework to ensure that various submissions to the 120 days. All the meetings were held during the year with
Board and its Committees are first reviewed, approved requisite quorum.
and recommended by the Management Committees. The composition, names of members and chairperson, and
This enhances governance and helps to strengthen the their attendance at the Audit Committee meetings held
compliances within the Bank. during FY 2020-21 are given in Table No. 2.
Table No. 2 : Attendance Details of Audit Committee Meetings held during FY 2020-21
Name of the Member Position on the Board Status No. of Meetings
attended in
FY 2020-21
Mr. Aashish Kamat Independent Director Chairperson 6/6
Mr. Pravir Vohra Independent Director Member 6/6
Mr. Sanjeeb Chaudhuri Independent Director Member 6/6
Mr. Sunil Kakar Non-Executive Non-Independent Director Member 6/6
132 IDFC FIRST Bank

The Terms of Reference of the Audit Committee of the • Any other terms of reference as may be included
Board inter-alia includes the following: from time to time in the Companies Act, 2013, Listing
• Oversight of the Bank’s financial reporting process Regulations, and/ or applicable RBI Guidelines/
and the disclosure of its financial information to ensure Regulations, or any re-enactment, amendment or
CORPORATE OVERVIEW
that the financial statement is correct, sufficient and modification thereto from time to time.
credible.
2. Risk Management Committee
• Reviewing with management quarterly results, quarterly/
annual financial statements and auditor’s report before IDFC FIRST Bank has in place a robust mechanism to
submission to the Board with special emphasis on inform the Board about its risk assessment and minimisation
accounting policies and practices, compliance with procedures with periodic reviews to ensure that the
accounting standards, disclosure of related party Management controls risk through a Board-approved well-
transactions and other legal requirements relating to defined framework. The Board is responsible for framing,
financial statements. implementing and monitoring the Risk Management Plan
for the Bank. This is done through its Board-level Risk
STATUTORY REPORTS
• Approval for Related party transactions including Management Committee (‘RMC’) and it monitors and reviews
omnibus approval. risks of the Bank on a regular basis. The RMC reviews and
• Review of Intra Group Transactions & Exposures, monitors mainly four types of risks across the organisation
Corporate Governance norms, accounting policies/ viz. credit risk, market risk, liquidity risk and operational risk.
systems, etc. This is done under the overall framework of the Enterprise
Risk Management System.
• Recommending to the Board, the appointment, re-
appointment, remuneration, terms of appointment and, As on March 31, 2021, the RMC comprised five (5) members,
if required, the replacement or removal of the statutory four (4) of whom were IDs and one (1) Executive Director
auditor and fixation of audit fees. viz. Mr. Sanjeeb Chaudhuri – Chairperson, Dr. (Mrs.) Brinda
Jagirdar, Mr. Hemang Raja, Mr. Pravir Vohra and Mr. V.
• Evaluation of internal financial controls and risk
Vaidyanathan.
management systems.
The Committee met four (4) times during FY 2020-21, on
• Review compliance report on directives issued by ACB/ May 13, 2020, July 27, 2020, October 29, 2020, and January
Board/ RBI. 29, 2021. All the meetings were held during the year with
requisite quorum.
• Review the functioning of the Whistle Blower/ Vigil
Mechanism. The composition, names of members and chairperson and
their attendance at the RMC meetings held during FY 2020-
• Reviewing the adequacy of the Audit and Compliance
21 are given in Table No. 3.
functions, including their policies, procedures,
techniques and other regulatory requirements.
Table No. 3 : Attendance Details of the Risk Management Committee Meetings held during FY 2020-21
attended in FY
2020-21
Mr. Sanjeeb Chaudhuri1 Independent Director Chairperson -
Dr. (Mrs.) Brinda Jagirdar2 Independent Director Member 4/4
Mr. Hemang Raja Independent Director Member 4/4
Mr. V. Vaidyanathan MD & CEO Member 4/4
Mr. Anand Sinha1 Independent Director Chairperson 4/4
Notes:
1. Pursuant to cessation of Mr. Anand Sinha from the Board with effect from February 02, 2021, he ceased to be Chairperson of the RMC.
Mr. Sanjeeb Chaudhuri has been appointed as Chairperson of the RMC with effect from February 02, 2021.
2. Dr. (Mrs.) Brinda Jagirdar ceased to be member of the RMC with effect from May 08, 2021 and in her place Mr. S. Ganesh Kumar has been
appointed as member of the RMC with effect from May 08, 2021.
The Terms of Reference of the Risk Management • To oversee the risk management policy and approve
Committee inter-alia includes the following: annual Risk Appetite Framework for the Bank.
• To identify, monitor and measure the risk profile of the
• To review the activities of certain Management
Bank (including market risk, liquidity risk, operational
Committees and to monitor compliance of various risk
risk, reputational risk, fraud management and credit
parameters by operating departments.
risk).
• To monitor and review the risk management plan of the
• To monitor and review the cyber security processes of
Bank.
the Bank.

• To oversee the Bank’s integrated risk measurement Advance Approaches) preparedness and Reserve
system. Bank of India Application
• To review and evaluate the overall risk faced by the • To carry out any other function as referred by the Board
Bank including market risk and liquidity risk. from time to time or enforced by any statutory authority,
as may be applicable.
• To review management’s formulation of procedures,
action plans and strategies to mitigate risks on short 3. Nomination and Remuneration Committee
term as well as long term basis.
As on March 31, 2021, the Nomination and Remuneration
• To review and recommend to the Board, the Bank’s Committee (‘NRC’) comprised four (4) members, three (3) of
ICAAP proposal. whom were IDs and one (1) Non-Executive Non-Independent
• Design stress scenarios to measure the impact of Director viz. Mr. Hemang Raja – Chairperson, Mr. Aashish
unusual market conditions and monitor variance Kamat, Dr. (Mrs.) Brinda Jagirdar and Mr. Vishal Mahadevia.
between actual volatility of portfolio value and that The Committee met five (5) times during FY 2020-21, on May
predicted by risk measures. 21, 2020, July 27, 2020, August 28, 2020, October 31, 2020
• To ensure that the Bank’s credit exposure to any one and January 28, 2021. The meeting held on January 28,
group or industry does not exceed the internally set 2021 was adjourned to January 29, 2021 for discussion of
limits and that the risk is prudently diversified. few agenda item. All the meetings were held during the year
with requisite quorum.
• To oversee promotion of awareness of a risk-based
culture and achieving a balance between risk The composition, names of members and chairperson, and
minimization and reward for risks accepted. their attendance at the NRC meetings held during FY 2020-
21 are given in Table No. 4.
• To oversee the Bank’s Basel (Standardized and
Table No. 4 : Attendance Details of Nomination and Remuneration Committee Meetings held during FY 2020-21
attended in FY
2020-21
Mr. Hemang Raja Independent Director Chairperson 5/5
Mr. Aashish Kamat Independent Director Member 5/5
Dr. (Mrs.) Brinda Jagirdar Independent Director Member 5/5
Mr. Vishal Mahadevia Non-Executive Non-Independent Director Member 4/5
The Terms of Reference of the Nomination and report to the Board to nominate potential successors to
Remuneration Committee of the Board inter-alia includes CEO/ Senior Management personnel.
the following:
• Oversee the Director’s succession planning process
• Formulation of the criteria for determining qualifications,
for ensuring the right mix of Directors on the Board.
positive attributes and independence of a Director and
recommend to the Board of Directors a policy relating • Approve and monitor grant of employee stock options
to the remuneration of the Directors, key managerial as a part of compensation of Whole-time Directors,
personnel and other employees. Senior Management Personnel, Key Managerial
Personnel and other employees.
• Devising a policy on diversity of Board of Directors.
• Provide a framework for the remuneration of all
• Identifying persons who are qualified to become
employees (including risk-takers).
Directors and who may be appointed in senior
management in accordance with the criteria laid • Recommend to the Board, all remuneration, in whatever
down, and recommend to the Board of Directors form, payable to senior management.
their appointment and removal and shall specify the
• To provide guidance and help shape management’s
manner for effective evaluation of performance of
efforts in embedding ethical practices in the
Board, its committees and individual directors to be
organization.
carried out either by the Board, by the Nomination and
Remuneration Committee or by an independent external • To co-ordinate and oversee the annual self-review of
agency and review its implementation and compliance. the performance of the Board, its Committees and of
the Individual Directors.
• Determine the Bank’s policy on specific remuneration
packages for Whole-time Directors/ Executive Directors • Abide by any other requirement in accordance with
including pension rights and any compensation payment. the applicable provisions of the Listing Regulations,
Companies Act, 2013 and/ or applicable RBI Guidelines/
• The Committee shall plan for CEO/ Senior Management
Regulations, or any re-enactment, amendment or
succession including plans for interim succession in
modification thereto from time to time.
the event of an unexpected occurrence and submit a
134 IDFC FIRST Bank

Performance Evaluation Remuneration of Directors
The Companies Act, 2013 and Listing Regulations contain Pursuant to the requirement of Companies Act, 2013 read with
broad provisions on Board evaluation i.e. evaluation of the Rules and provision of Listing Regulations as amended from
CORPORATE OVERVIEW
performance of (a) Board as a Whole, (b) Individual Directors time to time, the Board of Directors on the recommendation
(including Independent Directors and Chairperson) and (c) of Nomination and Remuneration Committee have adopted
Various Committees of the Board. the following remuneration policies:
SEBI vide its circular no. SEBI/HO/CFD/CMD/ (i) Remuneration Policy (For the Non-Executive/
CIR/P/2017/004 dated January 05, 2017 issued a guidance Independent Directors)
note on Board evaluation in order to guide listed entities
(ii) Remuneration Policy (For the Whole Time/ Executive
by elaborating various aspects of board evaluation that
Directors, Material Risk Takers, Key Managerial
may help them to improve the evaluation process, derive
Personnel, Senior Management Personnel and Control
the best possible benefit and achieve the objective of the
Function)
entire process.
STATUTORY REPORTS
(iii) Remuneration Policy for Employees (Except for the
For FY 2019-20
Whole Time/ Executive Directors, Non-Executive/
Three (3) questionnaires for the above categories were Independent Directors, Key Managerial Personnel,
circulated to all the Directors of the Bank for Evaluation Senior Management Personnel, Control Function &
Process of FY 2019-20. Material Risk Taker)
Evaluation process for “Board as a Whole”, “Committee(s) These policies are in line with the provisions of the Banking
of the Board” and “Individual Directors (including Regulation Act, 1949 and RBI guidelines issued in this
Independent Directors and Chairperson of the Board)” was regard, from time to time.
carried out.
The aforesaid policies are available on the Bank’s website at
Questionnaire for evaluation of Chairperson of the Board www.idfcfirstbank.com under ‘Investors’ section.
was sent to all the Directors of the Bank (except the
The NRC in accordance with the Remuneration Policy,
Chairperson himself) and the results thereon were sent
recommends remuneration of the Directors, Senior
directly to Mr. Hemang Raja, Chairperson of the NRC.
Management Personnel and Key Managerial Personnel to
Further, Questionnaire for evaluation of other individual
the Board for its approval.
Directors (i.e. excluding the Chairperson of the Board) was
sent to all the Directors and the results thereon were sent IDFC FIRST Bank pays remuneration to the Executive
directly to Dr. Rajiv B. Lall, former Chairperson of the Board. Directors by way of salary, allowance, perquisites including
retirement benefits (fixed component), stock options and
Mr. Hemang Raja and Dr. Rajiv B. Lall informed Mr.
a variable component based on the recommendation of
Satish Gaikwad, Head – Legal & Company Secretary,
the NRC and approvals of the RBI, Board of Directors and
that the performance evaluation results for evaluation of
Shareholders of the Bank.
“Individual Directors (including Independent Directors
and Chairperson)” were communicated to each individual The IDs are paid by way of commission/ remuneration and
Director and accordingly, the entire evaluation process for sitting fees. Based on the recommendation of the NRC, the
FY 2019-20 have been completed satisfactorily. Board approved sitting fees to be paid to Non-Executive
Directors (‘NEDs’) at ` 1,00,000 per Board meeting and `
For FY 2020-21
50,000 per Committee meeting.
Evaluation Process for the FY 2020-21 was carried out in
Further, the shareholders at their meeting held on July
a similar manner, where-in three (3) questionnaires for the
27, 2016 approved payment of remuneration by way of
above categories were circulated to all the Directors of the
commission to the NEDs of the Bank (i.e. Directors other
Bank for evaluation.
than Managing Director and Whole-time Directors), not
Evaluation process for “Board as a Whole”, “Committee(s) exceeding in aggregate, 1% of the net profits of the Bank
of the Board” and “Individual Directors (including as computed in the manner laid down in Section 198 of the
Independent Directors and Chairperson of the Board)” was Companies Act, 2013 or maximum of ` 10 Lakh per annum
carried out. to each of such Directors as per RBI guidelines, whichever
is lower.
Questionnaire for performance evaluation of Chairperson
of the Board Meetings, was sent to all the Directors of the Our Bank did not pay any commission to its NEDs for the FY
Bank (except Chairperson of Board Meeting). Further, 2020-21.
Questionnaire for evaluation of other individual Directors
Pursuant to RBI Circular No. RBI/2021-22/24 DOR.
(i.e. excluding the Chairperson of the Board Meeting)
GOV.REC.8/29.67.001/2021-22 dated April 26, 2021 on
was sent to all the Directors. The performance evaluation
‘Corporate Governance in Banks - Appointment of Directors
process for FY 2020-21 has been completed and the
and Constitution of Committees of the Board’, basis the
outcome of same will be placed before the Independent
recommendation of the Nomination and Remuneration
Director meeting and meeting of NRC and Board.

Committee, the Board of Directors of the Bank has approved Except below, none of the NEDs held any shares or
a fixed remuneration of ` 16 Lakh per annum to NEDs convertible instruments of IDFC FIRST Bank as on March
(except Chairperson of the Board) for FY 2021-22. The said 31, 2021:
remuneration within the overall limit, shall be subject to the
Name of the Director No. of equity shares held
approval of the shareholders at its 7th AGM.
Mr. Aashish Kamat 26,000
The criteria for making payments to NEDs has been
Mr. Pravir Vohra 5,10,000
disseminated on the Bank’s website: www.idfcfirstbank.com
Mr. Sanjeeb Chaudhuri 21,000
Mr. Sunil Kakar 20,000
During FY 2020-21, the Bank had not granted any stock
options to NEDs of the Bank. The Bank did not advance There were no pecuniary relationships or transactions of
loans to any of its Directors during FY 2020-21, except credit NEDs vis-à-vis the Bank which has potential conflict with the
card issued to Directors in normal course of business. The interests of the Bank at large.
Executive Director(s) are not entitled to severance fee and The remuneration paid to the Directors is well within the limits
the notice period shall be subject to compliance with the prescribed under the Banking Regulation Act, 1949 and is in
provisions of Banking Regulation Act, 1949, Banks’ policy line with the guidelines issued by RBI, from time to time.
and other regulations, as applicable. None of the employees
of the Bank are related to any of the Directors. There is no Details of remuneration paid to the Directors during FY 2020-
inter-se relationship between the members of the Board. 21 are given in Table No. 5.
None of the Directors of the Bank are related to each other.
Table No. 5 : Details of the Remuneration paid to the Directors
(in `)
Name of the Director Stock Options granted Sitting Fees Remuneration Performance Bonus/
during the year (No.) Commission for FY
2019-20 (Paid during FY
2020-21)
Mr. V. Vaidyanathan 50,00,0001 - 4,76,72,7952 1,40,92,4003
Mr. Aashish Kamat - 20,00,000 -
Dr. (Mrs.) Brinda Jagirdar - 28,00,000 - -
Mr. Hemang Raja - 27,50,000 - -
Mr. Pravir Vohra - 24,50,000 - -
Mr. Sanjeeb Chaudhuri - 21,00,000 - -
Mr. Sunil Kakar - - - -
Mr. Vishal Mahadevia - - - -
Dr. Rajiv B. Lall4 - 2,00,000 21,41,6675 -
Ms. Anindita Sinharay6 - - - -
Dr. Sanjay Kumar7 - - - -
Mr. Anand Sinha8 - 16,50,000 - -
Notes:
1 During FY 2020-21, based on the recommendation of Nomination and Remuneration Committee, the Board of Directors of the Bank at its
meeting held on May 22, 2020 had approved grant of 50,00,000 stock options to Mr. V. Vaidyanathan, MD & CEO under ‘IDFC FIRST Bank –
Employees Stock Option Scheme 2015’. In terms of Section 35B of the Banking Regulation Act, 1949, the said grant was duly approved by
the RBI vide its letter dated January 22, 2021. Further during the FY 2020-21, in terms of Section 35B of the Banking Regulation Act, 1949, the
30,00,000 stock options granted to Mr. V. Vaidyanathan, MD & CEO in October 2019, was duly approved by the RBI vide its e-mail dated April
13, 2020.
2 In view of the distress caused by COVID-19 pandemic which had impacted the overall economy, in order to demonstrate responsible leadership
and to set the tone at the top for the Bank’s austerity measures, the MD & CEO had voluntarily offered to take a pay cut of 30% for his
compensation of FY 2020-21, including all Fixed compensation as well as all allowances.
3 During FY 2020-21, an amount of ` 1,40,92,400 was paid to Mr. V. Vaidyanathan towards Performance Bonus for FY 2019-20 and the same was
duly approved by the RBI vide its letter dated January 22, 2021.
4 Dr. Rajiv B. Lall has resigned as Part-Time Non-Executive Chairman of the Bank with effect from September 04, 2020.
5 A fixed remuneration of ` 15,00,000 per annum to Dr. Rajiv B. Lall for rendering service as Part-Time Non-Executive Chairman of the Bank was
approved by RBI vide its letter dated December 21, 2018. Accordingly, during FY 2020-21, remuneration of ` 15,00,000 for FY 2019-20 and
` 6,41,667 for FY 2020-21 (upto September 04, 2020) was paid to Dr. Rajiv B. Lall as Part-Time Non-Executive Chairman of the Bank.
6 Ms. Anindita Sinharay ceased to be Government Nominee Director, with effect from close of business hours of June 22, 2020, pursuant to
communication received from Ministry of Finance, Government of India.
136 IDFC FIRST Bank

7 Dr. Sanjay Kumar was appointed as Government Nominee Director of the Bank, with effect from close of business hours of June 22, 2020 and
later on, he ceased to be Government Nominee Director with effect from close of business hours of March 25, 2021, pursuant to communications
received from Ministry of Finance, Government of India.
CORPORATE OVERVIEW
8 Mr. Anand Sinha ceased to be Independent Director of the Bank with effect from close of business hours of February 02, 2021, in view of him
attaining an age of 70 years.
9 Subsequent to FY 2020-21, Mr. S. Ganesh Kumar has been appointed as Independent Director of the Bank with effect from April 30, 2021.
4. Credit Committee August 31, 2020, October 12, 2020, November 11, 2020,
December 16, 2020, January 15, 2021, January 28, 2021,
As on March 31, 2021, the Credit Committee comprised February 18, 2021, March 12, 2021 and March 26, 2021.
four (4) members, two (2) of whom were IDs, one (1) Non- All the meetings were held during the year with requisite
Executive Non-Independent Director and one (1) Executive quorum.
Director viz. Mr. Hemang Raja – Chairperson, Dr. (Mrs.) Brinda
Jagirdar, Mr. Vishal Mahadevia and Mr. V. Vaidyanathan. The composition, names of members and chairperson, and
their attendance at the Credit Committee meetings held
STATUTORY REPORTS
The Committee met thirteen (13) times during FY 2020-21, on during FY 2020-21 are given in Table No. 6.
April 29, 2020, May 29, 2020, June 30, 2020, July 31, 2020,
Table No. 6 : Attendance Details of the Credit Committee Meetings held during FY 2020-21
attended in FY
2020-21
Mr. Hemang Raja Independent Director Chairperson 13/13
Mr. Vishal Mahadevia Non-Executive Non-Independent Director Member 13/13
The Terms of Reference of the Credit Committee mechanism and portfolio management.
inter-alia includes the following:
5. Information Technology (IT) Strategy
• To formulate clear policies on standards for
presentation of credit proposals, financial covenants, Committee
rating standards and benchmarks, delegation of As on March 31, 2021, the IT Strategy Committee comprised
credit approving powers, prudential limits on large three (3) members, two (2) of whom were IDs and one (1)
credit exposures, asset concentrations, standards Executive Director viz. Mr. Pravir Vohra – Chairperson, Mr.
for loan collateral, portfolio management, loan review Sanjeeb Chaudhuri and Mr. V. Vaidyanathan.
mechanism, risk concentrations, risk monitoring and The Committee met four (4) times during FY 2020-21, on
evaluation, pricing of loans, provisioning, norms for May 13, 2020, July 27, 2020, October 29, 2020 and January
write-off and compromise/ settlement proposals, 29, 2021. All the meetings were held during the year with
recovery procedures, sale of NPAs, regulatory/ legal requisite quorum.
compliance, etc.
The composition, names of members and chairperson, and
• To approve credit exposures which are beyond the their attendance at the IT Strategy Committee meetings held
powers delegated to executives of the Bank as per the during FY 2020-21 are given in Table No. 7.
Delegation of Authority.
• To control the risk through effective loan review
Table No. 7 : Attendance Details of the IT Strategy Committee Meetings held during FY 2020-21
attended in FY
2020-21
Mr. Pravir Vohra Independent Director Chairperson 4/4
Mr. Anand Sinha1 Independent Director Member 4/4
Notes:
1 Pursuant to cessation of Mr. Anand Sinha from the Board with effect from February 02, 2021, he ceased to be member of the IT Strategy
Committee.
2 Mr. S. Ganesh Kumar has been appointed as member of the IT Strategy Committee with effect from May 08, 2021.
The Terms of Reference of the IT Strategy Committee ensuring that the management has put an effective
inter-alia includes the following: strategic planning process in place.
• Approving IT strategy and policy documents and

• Ascertaining that management has implemented 6. Fraud Monitoring Committee
processes and practices that ensure that the IT delivers
value to the business. As on March 31, 2021, the Fraud Monitoring Committee
comprised five (5) members, three (3) of whom were IDs,
• Ensuring IT investments represent a balance of risks one (1) Non-Executive Non-Independent Director and
and benefits and that budgets are acceptable. one (1) Executive Director viz. Mr. Sanjeeb Chaudhuri –
Chairperson, Mr. Aashish Kamat, Mr. Pravir Vohra, Mr. Sunil
• Monitoring the method that management uses to
Kakar and Mr. V. Vaidyanathan.
determine the IT resources needed to achieve strategic
goals and provide high-level direction for sourcing and The Committee met four (4) times during FY 2020-21, on
use of IT resources. May 07, 2020, July 24, 2020, October 29, 2020 and January
29, 2021. All the meetings were held during the year with
• Ensuring proper balance of IT investments for sustaining
requisite quorum.
Bank’s growth and becoming aware about exposure
towards IT risks and controls. The composition, names of members and chairperson,
and their attendance at the Fraud Monitoring Committee
• Such other roles and functions as may be prescribed
meetings held during FY 2020-21 are given in Table No. 8.
by Reserve Bank of India or as may be delegated by
the Board of Directors from time to time.
Table No. 8 : Attendance Details of the Fraud Monitoring Committee Meetings held during FY 2020-21
attended in FY
2020-21
Mr. Sanjeeb Chaudhuri2 Independent Director Chairperson -
Mr. Aashish Kamat Independent Director Member 4/4
Mr. Anand Sinha1 Independent Director Chairperson 4/4
Notes:
1 Pursuant to cessation of Mr. Anand Sinha from the Board with effect from February 02, 2021, he ceased to be Chairperson of the Fraud
Monitoring Committee.
2 Mr. Sanjeeb Chaudhuri was appointed as Chairperson of Fraud Monitoring Committee with effect from February 02, 2021. He ceased to
be Chairperson of the Fraud Monitoring Committee with effect from May 08, 2021, however continued as member of the Fraud Monitoring
Committee.
3 Mr. S. Ganesh Kumar has been appointed as Chairperson of the Fraud Monitoring Committee with effect from May 08, 2021.
The Terms of Reference of the Fraud Monitoring internal controls;

Committee inter-alia include the following:
• Put in place other measures as may be considered
The major function of the Fraud Monitoring Committee would
relevant to strengthen preventive measures against
be to monitor and review of all the frauds of ` 10 million and
frauds;
above so as to:
• To initiate process of fixing staff accountability for cases
• Identify the systemic lacunae, if any, that facilitated
involving very senior executive of the Bank;
perpetration of the fraud, and put in place measures to
plug the same; • To monitor and review the progress of the mitigating
steps taken by the Bank in case of electronic frauds
• Identify the reasons for delay in detection, if any,
and efficacy of the same in containing fraud numbers
reporting to top management of the bank and RBI;
and values; and
• Monitor progress of CBI / Police Investigation, and
• To review a report providing inter-alia, a synopsis of the
recovery position;
remedial action taken together with their current status
• Ensure that staff accountability is examined at all of the Red Flagged Accounts.
levels in all the cases of frauds and staff side action, if
required, is completed quickly without loss of time; 7. Stakeholders’ Relationship and Customer
Service Committee
• Review the efficacy of the remedial action taken to
prevent recurrence of frauds, such as strengthening of As on March 31, 2021, the Stakeholders’ Relationship and
Customer Service (‘SRCS’) Committee comprised five
138 IDFC FIRST Bank

(5) members, three (3) of whom were IDs, one (1) Non- received from the investors, customers, shareholders
Executive Non-Independent Director and one (1) Executive and bond holders. The Board of Directors and the SRCS
Director viz. Mr. Sanjeeb Chaudhuri – Chairperson, Dr. (Mrs.) Committee are on a quarterly basis updated on the resolution
Brinda Jagirdar, Mr. Pravir Vohra, Mr. Sunil Kakar and Mr. V. and redressal of the complaints. The Committee looks into
CORPORATE OVERVIEW
Vaidyanathan. various aspects of interests of the Bank’s Shareholders and
Debenture holders.
Mr. Satish Gaikwad, Head – Legal and Company Secretary
is the designated person responsible for handling Investor/ The Bank has designated e-mail id bank.info@idfcfirstbank.com
Shareholder Grievances and is the Compliance Officer of for equity investors and ig@idfcfirstbank.com for bond holders
the Bank under Listing Regulations. He is also the Nodal for reporting complaints/ grievances. The said e-mail id are
Officer of the Bank for handling Investor Grievances with also displayed on the website of the Bank.
respect to Investor Education and Protection Fund (‘IEPF’).
The Committee met four (4) times during FY 2020-21, on
The Bank receives investor complaints through various May 07, 2020, July 24, 2020, October 30, 2020 and January
sources such as from Stock Exchanges, SEBI Complaints 28, 2021. All the meetings were held during the year with
STATUTORY REPORTS
Redress System (SCORES), Registrar of Companies, requisite quorum.
through the Bank’s Registrar and Transfer Agents, directly
The composition, names of members and chairperson, and
from investors’ correspondence and from the investors
their attendance at the SRCS Committee meetings held
personal visits to the Bank. The Bank has a dedicated team
during FY 2020-21 are given in Table No. 9.
of professionals to respond to queries and grievances
Table No. 9 : Attendance Details of Stakeholders’ Relationship and Customer Service Committee Meetings held
during FY 2020-21
attended in FY
2020-21
Mr. Sanjeeb Chaudhuri1 Independent Director Chairperson 4/4
Dr. (Mrs.) Brinda Jagirdar 2
Independent Director Member 4/4
Notes:
1 Mr. Sanjeeb Chaudhuri ceased to be Chairperson of the SRCS Committee with effect from May 08, 2021, however continued as member of the
SRCS Committee.
2 Dr. (Mrs.) Brinda Jagirdar, who was member of the SRCS Committee, has been appointed as Chairperson of SRCS Committee with effect from
May 08, 2021.
3 Mr. S. Ganesh Kumar has been appointed as member of the SRCS Committee with effect from May 08, 2021.
Details of Complaints received and attended by the Bank during FY 2020-21 for Equity Shares and Infrastructure Bonds
issued under Section 80CCF of Income Tax Act, 1961 are given in Table No. 10A.
Table No. 10A : Nature of Complaints received and attended during FY 2020-21
Particulars Complaints pending Complaints received Complaints redressed Complaints pending
as on April 01, 2020 during the year during the year as on March 31, 2021
Equity Shares 0 8 8 0
Infrastructure Bonds 3 6831 6155 679*
* the pending complaints have been resolved subsequent to the year under review within the prescribed timelines.
During FY 2020-21, no Complaints were received in respect of the bonds/ Non-Convertible Debentures issued by the Bank
on private placement basis.
During FY 2020-21, total 21,015 complaints were received from the customers of the Bank. As on March 31, 2021, 98.4% of
the cases were resolved and 1.6% of the cases were pending.

Awards passed by the Banking Ombudsman in FY 2020-21 is given in Table No. 10B
Table No. 10B : Awards passed by the Banking Ombudsman
Number of unimplemented awards Number of awards passed by the Number of awards implemented Number of unimplemented awards
at the beginning of the year Banking Ombudsman during the during the year at the end of the year
year
0 1 1 0
The Terms of Reference of the Stakeholders’ Relationship • To review the level of customer service in the Bank
and Customer Service Committee of the Board inter-alia including customer complaints and the nature of their
includes the following: resolution.
For Security and Other Stakeholders
• To ensure customers are treated fairly all the times and
• To consider and resolve the grievances of security
complaints raised by them is dealt with courtesy and in
holders of the Bank including complaints related to
time.
transfer/ transmission of shares, non-receipt of balance
sheet, non-receipt of annual report, non-receipt of • To examine any other issues having a bearing on the
declared dividend, issue of new/ duplicate certificates, quality of customer service rendered.
general meetings etc.
• To formulate comprehensive deposit policy
• Propose to the Board of Directors, the appointment/ re- incorporating the issues arising out of the demise of
appointment of the Registrar and Share Transfer Agent, a depositor for operation of his account, the product
including the terms and conditions, remuneration, approval process, the annual survey of depositor
service Charge/ fees. satisfaction and the triennial audit of such services.
• Review of adherence to the service standards adopted • To monitor implementation of awards under the Banking
by the listed entity in respect of various services being Ombudsman Scheme.
rendered by the Registrar and Share Transfer Agent.
• To ensure implementation of directives received from
• Review the existing “Stakeholder Redressal System” RBI with respect to rendering services to customers of
and suggest measures for improvement. the Bank.
• Take measures to enhance operational transparency to • Any other requirement in accordance with the
Stakeholders and suggest measures for improvement applicable provisions of RBI Guidelines.
in Stakeholder relations.
8. Corporate Social Responsibility Committee
• Develop mechanism to provide access to Stakeholders
to relevant, sufficient and reliable information on a As on March 31, 2021, the CSR Committee comprised three
timely and regular basis to enable them to participate (3) members, one (1) of whom was Executive Director and
in Corporate Governance process. two (2) were IDs. viz. Mr. V. Vaidyanathan – Chairperson, Dr.
(Mrs.) Brinda Jagirdar and Mr. Hemang Raja. The Committee
• Any other requirement in accordance with the met three (3) time during FY 2020-21, on May 07, 2020,
applicable provisions of the Companies Act, Listing October 30, 2020 and January 28, 2021. All the meetings
Regulations and RBI Guidelines. were held during the year with requisite quorum.
For Customers: The composition, names of members and chairperson,
• To oversee the functioning of the Bank’s internal and their attendance at the CSR Committee meetings held
committee set-up for customer service. during FY 2020-21 are given in Table No. 11.
Table No. 11 : Attendance Details of the Corporate Social Responsibility Committee Meetings held during FY 2020-21
attended in FY
2020-21
Mr. V. Vaidyanathan MD & CEO Chairperson 3/3
Mr. Hemang Raja Independent Director Member 3/3
Details of CSR initiatives undertaken by IDFC FIRST Bank which shall indicate the activities to be undertaken by
can be referred in the Directors’ Report, which forms part of the Bank as specified in Schedule VII of the Companies
this Annual Report. Act, 2013 and applicable rules as amended from time
The Board approved CSR Policy is placed on the Bank’s to time.
website: www.idfcfirstbank.com under ‘Investors’ section • Recommend the amount of expenditure to be incurred
The Terms of Reference of the Corporate Social on the activities referred to in Point above.
Responsibility Committee inter-alia includes the following: • Monitor the CSR Policy of the Bank from time to time.
• Formulate and recommend to the Board, a CSR Policy • Review and monitor the CSR activities of the Bank
140 IDFC FIRST Bank

on behalf of the Board to ensure that the Bank is in • Review management-identified opportunities to optimize
compliance with appropriate laws and legislations. the use of technology for the use of CSR activities.
• Formulate a transparent monitoring mechanism 9. Allotment, Transfer and Routine Matters
CORPORATE OVERVIEW
for implementation of CSR Projects or programs or Committee
activities undertaken by the Bank.
As on March 31, 2021, the Allotment, Transfer and Routine
• Regularly report to the Board on the CSR initiatives Matters Committee comprised six (6) members, three (3)
and status and also provide reasons to the Board if of whom were Directors consisting of one (1) Executive
the amount earmarked for CSR initiatives has not been Director, one (1) ID and one (1) Non-Executive Non-
spent and action steps for the same. Independent Director viz. Mr. V. Vaidyanathan – Chairperson,
Mr. Sanjeeb Chaudhuri and Mr. Sunil Kakar, and three (3)
• Review management’s position on key stakeholder were employees of the Bank consisting of Chief Financial
expectations involving CSR and provide perspectives Officer & Head – Corporate Centre, Chief Human Resources
for Board’s consideration. Officer and Head - Information Security Governance.
STATUTORY REPORTS
• Review on a continuous basis the Bank’s communication The Committee met one (1) time during FY 2020-21, on
strategies relating to CSR. June 12, 2020. The meeting was held during the year with
requisite quorum.
• Review the Bank’s annual CSR report prior to its
issuance. The composition, names of members and chairperson,
and their attendance at the Allotment, Transfer and Routine
• Review and assess the remit and reports of any audit Matters (ATRM) Committee meeting held during FY 2020-21
process to gain assurance over the CSR activities. are given in Table No. 12.
Table No. 12 : Attendance Details of the Allotment, Transfer and Routine Matters Committee Meeting held during
FY 2020-21
attended in FY
2020-21
Mr. V. Vaidyanathan MD & CEO Chairperson 1/1
Mr. Sunil Kakar Independent Director Member 1/1
Notes:
1 Chief Financial Officer & Head – Corporate Centre, Chief Human Resources Officer and Head – Information Security Governance were present
at the ATRM Committee meeting held on June 12, 2020.
2 Head - Information Security Governance ceased to be member of the ATRM Committee with effect from May 08, 2021.
The Terms of Reference of the Allotment, Transfer and • To open/ operate/ close dividend account/ G Sec
Routine Matters Committee inter-alia includes the account.
following:
• To give authority for signing documents for treasury
• To address, approve and monitor all matters related transactions.
with the allotment, transfer, transmission, transposition,
name deletion, consolidation, rematerialization, • To do such other things as may be delegated by the
dematerialization and splitting of share and debenture Board/ any other Committee of the Bank.
certificates of the Bank. 10. Wilful Defaulter or Non-Cooperative Borrower
• To open, operate and close different types of bank Review Committee
accounts/ Demat accounts of the Bank as may be
As on March 31, 2021, the Wilful Defaulter or Non-Cooperative
necessary, from time to time and update the operating Borrower Review (‘WDNCBR’) Committee comprised three
instructions of existing bank accounts of the Bank. (3) members, one (1) of whom was Executive Director and
• To apply for memberships to various exchanges, central two (2) were IDs viz. Mr. V. Vaidyanathan – Chairperson,
counterparties and other quasi regulatory bodies. Mr. Aashish Kamat and Dr. (Mrs.) Brinda Jagirdar.
• To grant authorization for labour and HR operations During the year, pursuant to cessation of Mr. Anand Sinha
matter including signing of leave and license from the Board with effect from February 02, 2021, he ceased
agreement(s). to be member of the WDNCBR Committee and in his place
Dr. (Mrs.) Brinda Jagirdar has been appointed as member
• To appoint/ empanel such intermediaries and of WDNCBR Committee with effect from February 02, 2021.
consultants or service providers, as may be required Mr. S. Ganesh Kumar has been appointed as member of the
from time to time. WDNCBR Committee with effect from May 08, 2021.

No meeting of WDNCBR Committee has been held during the interest between the Bank and these parties. Suitable
FY 2020-21. disclosures as required by the Accounting Standards (AS18)
have been made in the notes to the Financial Statements.
The Terms of Reference of the Wilful Defaulter or Non-
The details of the transactions with related parties are
Cooperative Borrower Review Committee inter-alia
placed before the Audit Committee, from time to time. The
include the following:
Board has approved a policy for related party transactions in
• To review the order passed by the Identification
compliance with the provisions of the Companies Act, 2013
Committee which concludes that an event of wilful
and the Listing Regulations which is available on the Bank’s
default or non-cooperation has occurred and issues a
website: www.idfcfirstbank.com under ‘Investors’ section.
Show Cause Notice to the concerned borrower (and
the promoter / whole time director) and calls for their MD & CEO AND CFO CERTIFICATION
submissions and after considering their submissions,
issues an order, recording the fact of wilful default or In compliance with Regulation 17 of the Listing Regulations,
non-cooperation and the reasons for the same. the MD & CEO and Chief Financial Officer certification on
the financial statements and internal controls relating to
• To review as on half yearly basis the status of non– financial reporting for FY 2020-21 is enclosed at the end of
cooperative borrowers for deciding whether their this Report.
names can be declassified as evidenced by its return
to credit discipline and cooperative dealings. POLICY FOR DETERMINING ‘MATERIAL’
SUBSIDIARIES
• To review the status of and matters relating to Non-
Cooperative Borrowers or Wilful Defaulters. In accordance with the provisions of Listing Regulations,
every listed entity shall formulate a policy for determining its
• Any other requirement in accordance with the ‘material’ subsidiaries. IDFC FIRST Bank has one subsidiary
applicable provisions of RBI Guidelines. company viz. IDFC FIRST Bharat Limited (formerly known
• Any other matters which the Committee may deem as IDFC Bharat Limited) and it does not fall under the
fit in this connection and as may be required by any definition of material subsidiary as per Regulation 16(1)
regulatory authority, from time to time. (c) of the Listing Regulations. The policy for determining
‘material’ subsidiaries is available on the Bank’s website:
The Composition of all the Board-level Committees is www.idfcfirstbank.com under ‘Investor Relations’ section.
available on the Bank’s website: www.idfcfirstbank.com
under ‘Investors’ section. CODE OF CONDUCT FOR PROHIBITION OF
INSIDER TRADING
MEETING OF INDEPENDENT DIRECTORS
The Bank has adopted a Code of Conduct for Prohibition
As per Schedule IV of the Companies Act, 2013 and the of Insider Trading (the ’PIT Code’) in accordance with the
rules made thereunder, the IDs of a Company shall hold requirements of the SEBI (Prohibition of Insider Trading)
at least one (1) meeting in a financial year, without the Regulations, 2015 (‘SEBI Insider Trading Regulations’) as
attendance of Non-Independent Directors and members amended from time to time, with a view to regulate trading in
of the Management. This meeting is expected to review the securities by the Board of Directors and Employees of IDFC
performance of Non-Independent Directors and the Board FIRST Bank, their immediate relatives and other insiders
as a whole; review the performance of the Chairperson of the as defined in the Code. When the trading window is open,
Board, taking into account the views of executive directors ‘Designated Persons’ as defined in the Code are required
and non-executive directors; and assess the quality, to obtain pre-clearance from the Compliance Officer before
quantity and timeliness of the flow of information between trading (buy/ sell) in securities of IDFC FIRST Bank. Also,
the Management and the Board that is necessary for the during the period of closure of the trading window, no
Board to effectively and reasonably perform their duties. Employee/ Designated Person is permitted to trade with or
Accordingly, a separate meeting of IDs of the Bank was held without pre-clearance in securities of restricted companies
on May 21, 2020 without the presence of MD & CEO, Non- as informed by the Secretarial Department, from time to time.
Independent Directors and SMP. The meeting was attended Timely disclosures are made to the Stock Exchanges by the
by all the six (6) IDs. Bank where transactions over any calendar quarter, whether
RELATED PARTY TRANSACTIONS in one transaction or a series of transaction aggregates to a
traded value (buy/ sell) in excess of ` 10 lakh.
During FY 2020-21, all transactions entered into with related
parties as defined under the Companies Act, 2013 and the No Employee/ Designated Person is permitted to
Listing Regulations, were in the ordinary course of business communicate, provide, or allow access to any Unpublished
and on arm’s length basis and did not attract the provisions Price Sensitive Information relating to IDFC FIRST Bank, its
of Section 188 of the Companies Act, 2013. The Bank has securities or any other company (listed or proposed to be
not entered into any materially significant transactions listed), to any person except where such communication is
with the related parties including Promoters, Directors, in furtherance of legitimate purpose, performance of duties
Key Managerial Personnel, Subsidiaries or Relatives of or discharge of legal obligations.
the Directors, which could lead to a potential conflict with The Bank periodically monitors and facilitates compliance
142 IDFC FIRST Bank

with the SEBI Insider Trading Regulations, 2015, as amended of Whistle Blower to those who avail such mechanism and
from time to time, and report the status to Audit Committee also provides for direct access to the Chairman of the Audit
on a periodic basis. Committee, in exceptional cases.
CORPORATE OVERVIEW
During FY 2020-21, the identified Designated Persons (‘DPs’) The Audit Committee reviews the functioning of the Vigil
of the Bank were given online training in order to understand Mechanism from time to time. None of the Whistle Blowers
the Bank’s PIT Code as well as framework of the SEBI Insider has been denied access to the Audit Committee of the
Trading Regulations, as amended. Further, efforts were made Board. The Whistle Blower Policy is available on the Bank’s
to create awareness and sensitize the employees (including website at: www.idfcfirstbank.com under ‘Investors’ section.
DPs) of the Bank about important topics & aspects of the PIT The Whistle Blower Policy is communicated to the employees
Code and SEBI Insider Trading Regulations through periodic and is also posted on the Bank’s intranet.
e-mailers.
In addition to the above, the Bank has formulated a Vigilance
VIGIL MECHANISM/ WHISTLE BLOWER POLICY Policy for effectively managing the risks faced by the Bank
on account of corruption, malpractices and frauds.
The Bank has implemented a Whistle Blower Policy in
STATUTORY REPORTS
compliance with the provisions of the Listing Regulations, Mr. Avinash Saraiya is the Chief Vigilance Officer of the Bank.
Companies Act, 2013 and RBI notification on Introduction
PENALTIES AND STRICTURES - CAPITAL MARKET
of ‘Protected Disclosures Scheme for Private Sector and
Foreign Banks’. Pursuant to this policy, the Whistle Blowers During the last three years, there were no instances of non-
can raise concerns relating to reportable matters (as defined compliance by the Bank or any penalties and/ or strictures
in the policy) such as breach of IDFC FIRST Bank’s Code imposed on the Bank by the RBI or stock exchange(s) or
of Conduct, employee misconduct, fraud, illegal unethical SEBI or any other statutory authority, on any matter relating
imprudent behavior, leakage of UPSI, corruption, safety and to capital markets.
misappropriation or misuse of Bank funds/ assets etc.
ANNUAL GENERAL MEETINGS
Further, the mechanism adopted by the Bank encourages
the Whistle Blower to report genuine concerns or grievances Details of the Annual General Meetings held in the last three
and provides for adequate safeguards against victimization (3) financial years have been given in Table No. 13.
Table No. 13 : Annual General Meetings held in last three years

Financial Year Location of the Meeting Day, Date & Time Special Resolutions passed with requisite majority
*FY Through Video Conference: Thursday, July 1. Offer and Issue of Debt Securities on Private Placement
2019-20 KRM Towers, 7th Floor, No.1, 30, 2020 at basis
6th AGM Harrington Road, Chetpet, 11:00 a.m.
Chennai – 600 031,
Tamil Nadu, India
FY The Music Academy, Thursday, July 1. Re-appointment of Mr. Anand Sinha as an Independent
2018-19 T.T.K Auditorium (Main Hall), 25, 2019 at Director of the Bank.
5th AGM Near Acropolis Building, 11:00 a.m. 2. Increase in ESOP pool from 6% to 8% of the issued
New No. 168 (Old No. 306), and paid up capital of the Bank, from time to time
T.T.K. Road, Royapettah, and modification of exercise period and consequent
Chennai - 600 014, modification to “IDFC FIRST Bank ESOS – 2015.
Tamil Nadu, India
3. Modification of IDFC FIRST Bank ESOS – 2015 and
grant of Options to Eligible Employee of the Subsidiary
Company(ies) of the Bank under the Scheme
4. Offer and Issue of Debt Securities on Private Placement
basis.
FY Sir Mutha Venkatasubba Rao Tuesday, July 31, 1. Offer and Issue of Debt Securities on Private Placement
2017-18 Concert Hall (Inside Lady Andal 2018 at 10:30 basis
4th AGM School Premises), Shenstone a.m. 2. Re-appointment of Mr. Abhijit Sen as an Independent
Park, # 13/1 Harrington Road, Director of the Bank
Chetpet, Chennai – 600 031,
3. Re-appointment of Ms. Veena Mankar as an Independent
Tamil Nadu, India
Director of the Bank
4. Re-appointment of Mr. Ajay Sondhi as an Independent
5. Re-appointment of Mr. Rajan Anandan as an Independent
6. Alteration of Articles of Association
* The 6th AGM was held through Video Conferencing on account of outbreak of COVID-19 pandemic. The AGM was conducted in accordance with
relevant circulars issued by MCA and SEBI.

POSTAL BALLOT Notice dated May 01, 2020 and February 18, 2021 has
been carried out as per the above provisions and therefore,
Procedure for Postal Ballot the hard copy of Postal Ballot Notice was not sent to the
In view of the pandemic situation of COVID-19 and pursuant to shareholders for aforesaid Postal Ballot and shareholders
the guidelines and notification issued by the Ministry of Home were required to communicate their assent or dissent
Affairs, Government of India and in light of circulars issued through the E-Voting system only.
by the Ministry of Corporate Affairs, Government of India
(the ‘MCA’) vide its General Circular No.14/2020 dated April Apart from above, the Postal Ballot, if any, post closure of
08, 2020, General Circular No.17/2020 dated April 13, 2020 COVID-19 pandemic situation, would be carried out as per
General Circular No. 22/2020 dated June 15, 2020, General the provisions of Sections 108 and 110 and other applicable
Circular No. 33/2020 dated September 28, 2020 and General provisions of the Companies Act, 2013 read with the rules
Circular No. 39/2020 dated December 31, 2020 (the ‘MCA framed thereunder.
Circulars’) and pursuant to Section 110 of the Companies
Postal Ballot during FY 2020-21
Act, 2013 (the ‘Act’) and the Rules made thereunder, the Bank
In view of the pandemic situation of COVID-19, approval
proposed to pass the necessary resolutions as per the said
of shareholders of the Bank was sought only by way of
guidelines, circulars and provisions of the Act as mentioned in
remote electronic voting for the following matters through
Postal Ballot Notice. In terms of said Section of the Act and the
Postal Ballot activity conducted twice during the FY 2020-
Rules, a company may, and in case of resolutions relating to
21, in accordance with the provisions of Sections 108 and
such business as the Central Government may, by notification,
110 and other applicable provisions of the Companies Act,
declare to be conducted only by Postal Ballot, shall, get any
2013 alongwith with the guidelines, notification issued by the
resolution (other than Ordinary Business and any Business in
Ministry of Home Affairs, Government of India and in light of
respect of which Directors or Auditors have right to be heard
circulars issued by the MCA and SEBI.
at any meeting) passed by means of Postal Ballot, instead of
transacting the business in general meeting of the Company. Details of Postal Ballot activity undertaken during FY 2020-
21 are given in Table No. 14A and 14B.
Accordingly, the Postal Ballot procedure for Postal Ballot
Table No. 14A : Postal Ballot dated May 01, 2020
Votes in favour of the resolution Votes against the resolution
SN Resolution No. of votes % to total votes No. of votes % to total votes
1. Ordinary Resolution: To increase the authorized 2,82,39,20,747 99.9635 10,29,932 0.0365
share capital of the Bank and consequent alteration
of the Memorandum of Association of the Bank.
2. Special Resolution: To issue, offer and allot equity 2,82,34,53,922 99.9475 14,83,265 0.0525
shares on preferential basis.
Date of Results: Wednesday, June 03, 2020
Scrutinizer: Mr. B Narasimhan (Membership No. F1303) of M/s. BN & Associates, Practicing Company Secretaries, was the
Scrutinizer for carrying out the aforesaid Postal Ballot process in a fair and transparent manner.
Table No. 14B : Postal Ballot dated February 18, 2021

Votes in favour of the resolution Votes against the resolution
SN Resolution No. of votes % to total votes No. of votes % to total votes
1. Special Resolution: To approve raising of capital 3,45,51,34,831 99.9544 15,77,981 0.0456
through issuance of equity shares and/or other equity
linked securities.
Date of Results: Sunday, March 21, 2021
Scrutinizer: Ms. Manisha Maheshwari (Membership No. A30224) of M/s. Bhandari & Associates, Practicing Company
Secretaries, was the Scrutinizer for carrying out the aforesaid Postal Ballot process in a fair and transparent manner.
The result of the aforesaid Postal Ballot is posted on the MEANS OF COMMUNICATION
Bank’s website www.idfcfirstbank.com and was also
As per Regulation 46 of Listing Regulations, IDFC FIRST Bank
communicated to the Stock Exchanges where the Bank
maintains a website viz. www.idfcfirstbank.com containing
shares are listed.
information about the Bank, such as details of its business,
Apart from above, resolution(s), if any, to be passed through financial results, shareholding pattern, compliance with the
Postal Ballot during the FY 2021-22 will be taken up as and corporate governance requirements and contact details of
when necessary. the designated officials who are responsible for assisting
and handling investor grievances.
144 IDFC FIRST Bank

The Bank also displays all official press releases and Investor Presentations thereon are uploaded on the Bank’s
presentations to institutional investors or analysts made by website: www.idfcfirstbank.com
the Bank.
SECRETARIAL AUDITORS’ CERTIFICATE ON
CORPORATE OVERVIEW
This information is regularly updated on the Bank’s website CORPORATE GOVERNANCE
www.idfcfirstbank.com.
As required under Schedule V of Listing Regulations, the
The National Stock Exchange of India Limited (‘NSE’)
Secretarial Auditors’ Certificate on Corporate Governance is
and BSE Limited (‘BSE’) have their respective electronic
provided at the end of this Report.
platforms namely NSE Electronic Application Processing
System (‘NEAPS’) and BSE Listing Centre Online Portal GENERAL SHAREHOLDER INFORMATION
for submission of various filings by listed companies. IDFC
FIRST Bank ensures that the requisite compliances are filed 7th Annual General Meeting:
through these platforms on time. DAY and DATE: Wednesday, September 15, 2021
The financial and other information filed by the Bank from TIME: 02:00 p.m. (IST)
STATUTORY REPORTS
time to time is also available on the website of the Stock VENUE: In view of the ongoing COVID-19 pandemic
Exchanges i.e. NSE and BSE. scenario in the country, the Bank is conducting meeting
The quarterly, half-yearly and annual results of IDFC FIRST through Video Conferencing (“VC”) / Other Audio Visual
Bank’s performance and other news articles are normally Means (“OAVM”) pursuant to the circular issued by MCA
published in leading newspapers in India which include the and SEBI. For details please refer to the Notice of this AGM.
Hindu Business Line, Financial Express and Makkal Kural As required under Regulation 36(3) of the Listing Regulations
(in Chennai) and are also displayed on the Bank’s website: and Secretarial Standard 2, particulars of Director seeking
www.idfcfirstbank.com under ‘Investors’ section. appointment at this AGM is given in the Annexure to the
COMPLIANCE WITH MANDATORY AND NON- Notice of this AGM.
MANDATORY REQUIREMENTS Financial Calendar
IDFC FIRST Bank has duly complied with all the mandatory Financial year: The financial year of the Bank is from April 01
Corporate Governance requirements as given under to March 31 of the following year.
Regulations 17 to 27 and clauses (b) to (i) of Regulation
46(2) of the Listing Regulations, to the extent applicable. For the year ended March 31, 2021, results were
announced on:
The Bank has also adopted and complied with the non- • July 28, 2020 for first quarter
mandatory requirements as follows:
• October 31, 2020 for second quarter and half year
Separate Posts of Chairperson and CEO
The Bank has complied with the requirement of having • January 30, 2021 for third quarter and nine months
separate persons to the post of Chairperson and MD & CEO. • May 08, 2021 for fourth quarter and full year
During the FY 2020-21, Dr. Rajiv B. Lall resigned from the
post of Part-Time Non-Executive Chairman of the Bank with For the year ending March 31, 2022, results will be
effect from September 04, 2020 as he has been dealing with announced latest by:
prolonged personal health issues. The Bank has proposed • Second week of August 2021 for first quarter
the candidate(s) for the position of Part-Time Non-Executive • Second week of November 2021 for second quarter
Chairperson of the Bank and the approval of RBI is awaited. and half year
The office of Non-Executive Chairman of the Bank is
maintained by the Bank at its expenses and all the expenses • Second week of February 2022 for third quarter and
incurred in performance of his duties are reimbursed by the nine months
Bank. • Last week of May 2022 for fourth quarter and full year
Mr. V. Vaidyanathan is the MD & CEO of the Bank. Dividend Payment Date
Audit Qualification The Board of Directors did not recommend any dividend
For the year under review, there were no audit qualifications on equity shares for the FY 2020-21 in the absence of
with respect to Bank’s financial statements. IDFC FIRST distributable profits in terms of the RBI Guidelines.
Bank strives to adopt the best practices to ensure a regime Dividend Distribution Policy
of financial statements with unmodified audit opinion. In accordance with Regulation 43A of the SEBI Listing
Reporting of Internal Auditor Regulations as amended from time to time, our Bank has
The Internal Auditor of the Bank reports to the MD & CEO formulated a Dividend Distribution Policy, which ensures
of the Bank and the Audit Committee of the Board, in a fair balance between rewarding its Shareholders and
compliance with extant regulatory guidelines. retaining enough capital for the Bank’s future growth.
Shareholder Rights The Dividend Distribution Policy is available on the Bank’s

Quarterly, half-yearly and annual financial results along with website at www.idfcfirstbank.com under ‘Investors’ section.

STOCK EXCHANGES WHERE SECURITIES OF Bonds & Debentures
IDFC FIRST BANK ARE LISTED 80CCF Infrastructure Bonds
Equity Shares Pursuant to the Demerger Scheme, the Financial
The equity shares of IDFC FIRST Bank are listed on BSE and NSE. Undertaking of IDFC Limited was transferred to IDFC
FIRST Bank with effect from October 01, 2015 (Effective
BSE Limited Date of Demerger Scheme). Accordingly, Infrastructure
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001 Bonds issued by IDFC Limited under Section 80CCF of
National Stock Exchange of India Limited the Income Tax Act, 1961 and the Bonds issued by IDFC
Exchange Plaza, C/ 1, G Block, Bandra-Kurla Complex, Limited on private placement basis were transferred to
Bandra (East), Mumbai - 400 051. IDFC FIRST Bank on October 01, 2015.
The Stock Exchange Codes and ISIN for equity shares of the A. Upcoming Redemptions of IDFC Infrastructure
Bank are as follows: Bonds - Tranche 1, 2 and 3 of FY 2011-12:
BSE: 539437 The 80CCF Infrastructure Bonds of IDFC FIRST Bank are
NSE: IDFCFIRSTB listed and traded on NSE and BSE. The trading details for the
ISIN: INE092T01019 80CCF Infrastructure Bonds alongwith redemption dates are
The annual listing fees for equity shares for FY 2021-22 has mentioned in Table No. 15A.
been paid.
Table No. 15A : Details of 80CCF Infrastructure Bonds

SN Folio Tranche Series ISIN BSE NSE Maturity Date
Code Scrip code Scrip ID Symbol Series
1 IDD Tranche 1/ Series 1 - INE092T08CK9 961719 IDFCFBLD1I IDFCFIRSTB N9 December 30,

FY12 Annual 2021
2 IDD Tranche 1/ Series 2 - INE092T08CL7 961720 IDFCFBLD1J IDFCFIRSTB NA December 30,
FY12 Cumulative 2021
3 IDE Tranche 2/ Series 1 - INE092T08CM5 961735 87IDFCBFBL IDFCFIRSTB NB March 21, 2022
FY12 Annual
4 IDE Tranche 2/ Series 2 - INE092T08CN3 961736 870IDFCFBL IDFCFIRSTB NC March 21, 2022
FY12 Cumulative
5 IDF Tranche 3/ Series 1 - INE092T08CO1 961745 843IDFCFBLL IDFCFIRSTB ND March 31, 2022
FY12 Annual
6 IDF Tranche 3/ Series 2 - INE092T08CP8 961746 843IDFCFBL IDFCFIRSTB NE March 31, 2022
FY12 Cumulative
In order to facilitate smooth and immediate payment of maturity proceeds of upcoming Bond redemption, we urge our
Bondholders to visit https://www.idfcfirstbank.com/investors/ifb-infra-bonds-equity-shares and update Bank account,
Address and other details, as required.
B. Update on IDFC Infrastructure Bonds - Tranche 1, 2 and 3 of FY 2010-11, redeemed during the FY 2020-21:
During the FY 2020-21, the Bank has redeemed the following Bonds pertaining to Tranche 1, 2 and 3 of FY 2010-11 as
mentioned in Table No. 15B.
Table No. 15B : Details of 80CCF Infrastructure Bonds redeemed during FY 2020-21
1 IDA Tranche 1/ Series 1 - INE092T08CC6 961694 IDFCFBLD1A IDFCFIRSTB N1 November

FY11 Annual 12, 2020
2 IDA Tranche 1/ Series 2 - INE092T08CD4 961695 IDFCFBLD1B IDFCFIRSTB N2 November
FY11 Cumulative 12, 2020
3 IDA Tranche 1/ Series 3 - INE092T08CE2 961696 IDFCFBLD1C IDFCFIRSTB N3 November
4 IDA Tranche 1/ Series 4 - INE092T08CF9 961697 IDFCFBLD1D IDFCFIRSTB N4 November
5 IDB Tranche 2/ Series 1 - INE092T08CG7 961699 IDFCFBLD1E IDFCFIRSTB N5 February
146 IDFC FIRST Bank

6 IDB Tranche 2/ Series 2 - INE092T08CH5 961700 IDFCFBLD1F IDFCFIRSTB N6 February
CORPORATE OVERVIEW
7 IDC Tranche 3/ Series 1 - INE092T08CI3 961709 IDFCFBLD1G IDFCFIRSTB N7 March
8 IDC Tranche 3/ Series 2 - INE092T08CJ1 961710 IDFCFBLD1H IDFCFIRSTB N8 March
All the aforesaid Bond Tranches were redeemed on maturity which remains unclaimed/ unpaid for a period of seven
dates, as mentioned above. Maturity intimations were made years from the date it became due for payment is required
to Bondholders well in advance, by way of sending emails/ to be transferred to the IEPF established by the Central
physical letter, including necessary intimations to Stock Government. After such transfer, no claim shall lie against
exchanges about the record/ maturity dates. the Bank. However, the Bondholders can claim the unpaid
STATUTORY REPORTS
amount from the IEPF Authority.
The Bank also proactively undertook series of initiatives
including newspaper advertisements, sending emails and For any query related to Bond redemption/ interest payment
SMS, to encourage the Bondholders to update their Bank kindly contact our Registrar and Transfer Agent, KFin
Account/ Address and other details in order to ensure Technologies Private Limited on Toll Free No.: 1800 309 4001
seamless redemption of maturity proceeds. or send an E-mail at einward.ris@kfintech.com. You may also
reach us on Toll Free No.: 1800 266 0404 or send an E-mail
Additionally, with the objective of easing the process of
at ig@idfcfirstbank.com.
claiming maturity proceeds, an URL link - https://ris.kfintech.
com/clientservices/bonds/bankmandate/bankmandate.aspx Private Placement Bonds
was also activated and has been live for bondholder to
Private Placement bonds of IDFC FIRST Bank are listed and
update bank account, address and other details.
traded on NSE and BSE, wherever applicable, as per their
For any further information, you are requested to visit Bond respective Information Memorandum/ Term Sheets. The
Section on our website www.idfcfirstbank.com. trading details for Private Placement bonds can be obtained
by sending an e-mail at bank.info@idfcfirstbank.com
Pursuant to the provisions of Section 125 of the Companies
Act, 2013, read with the Investor Education and Protection The annual listing fees for FY 2021-22 for both the aforesaid
Fund Authority (Accounting, Audit, Transfer and Refund) bonds have been paid.
Rules, 2016, any matured debentures and interest accrued
MARKET PRICE DATA
Table No. 16 gives the monthly high and low quotation of IDFC FIRST Bank’s equity shares traded on BSE Limited (‘BSE’)
and the National Stock Exchange of India Limited (‘NSE’) during FY 2020-21.
Table No. 16 : Monthly High & Low Prices of IDFC FIRST Bank’s Equity Shares during FY 2020-21 along with Traded
Volumes
Month BSE NSE
High (in `) Low (in `) Volume High (in `) Low (in `) Volume
April 2020 26.90 19.50 2,25,09,829 26.90 19.50 52,80,14,104

May 2020 22.85 18.50 3,26,50,927 23.25 18.45 77,02,80,360
June 2020 29.25 22.45 9,99,54,565 29.25 22.40 1,36,42,79,287
July 2020 29.75 24.10 5,40,19,462 29.20 24.10 89,38,52,554
August 2020 34.50 26.00 6,19,80,969 34.50 26.00 1,01,17,02,892
September 2020 32.75 26.85 6,71,14,861 32.75 26.85 87,04,42,894
October 2020 32.30 29.80 3,44,30,384 32.25 29.75 55,28,30,104
November 2020 37.75 29.90 4,70,97,678 38.50 29.90 71,33,86,893
December 2020 39.00 32.85 4,71,26,233 39.05 32.90 58,55,93,457
January 2021 52.45 36.90 10,18,37,813 52.45 36.85 1,28,83,23,462
February 2021 65.85 43.80 8,64,25,501 66.80 43.75 1,38,78,40,786
March 2021 69.30 55.35 6,57,92,720 69.30 55.30 87,38,37,857

Performance of the Equity Shares of the Bank relative to indices of BSE (S&P BSE Private Bank) and NSE (Bank Nifty)
respectively is given below:
100.00%
31 Dec 2018: 31 Mar 2020:

80.00% S&P BSE Private Bank: +4.39% S&P BSE Private Bank: -28.51%
Bank Nifty: +3.81% Bank Nifty: -26.83%
IDFCFB: +19.09% IDFCFB: -42.03%
60.00%
40.00%
20.00%
0.00%
-20.00%
31 Mar 2019: 31 Mar 2021:
S&P BSE Private Bank: +18.37% S&P BSE Private Bank: +27.39%
-40.00% Bank Nifty: +16.30% Bank Nifty: +27.29%
IDFCFB: +52.47% IDFCFB: +53.02%
-60.00%
Bank Nifty IDFC FIRST Bank S&P BSE Private Bank
UNCLAIMED SHARES LYING IN THE ESCROW The voting rights on the shares outstanding shall remain
ACCOUNT frozen till the rightful owner claims their shares. The details
of the Shareholders whose equity shares are lying in the
Pursuant to SEBI’s Circular No. CIR/ CFD/ DIL/ 10/ 2010 Demat Suspense Account are available on the Bank’s
dated December 16, 2010, IDFC Limited had credited the website: www.idfcfirstbank.com under ‘Investors’ section.
unclaimed shares lying in the Escrow Account, allotted in
the Initial Public Offer of the company during July – August UNCLAIMED/ UNPAID DIVIDEND AND SHARES
2005, into a Demat Suspense Account opened specifically Pursuant to the provisions of Sections 124 and 125 of the
for this purpose. Pursuant to the Demerger Scheme, the Companies Act, 2013, read with the Investor Education and
shareholders of IDFC Limited as on the record date i.e. Protection Fund Authority (Accounting, Audit, Transfer and
October 05, 2015 were allotted one equity share of IDFC Refund) Rules, 2016 (‘IEPF Rules’), any dividend/ refund
FIRST Bank for every one equity share held by them in IDFC which remains unclaimed/ unpaid for a period of seven
Limited. Therefore, 100 Shareholders who were holders of years from the date of transfer to the unpaid dividend/ refund
28,453 shares lying in the Demat Suspense Account of IDFC account is required to be transferred to the IEPF established
Limited were eligible and allotted equity shares of IDFC by the Central Government. After such a transfer, no claim
FIRST Bank. shall lie against the Bank. However, the investor can claim
As on April 01, 2020, the Demat Suspense Account of IDFC the unpaid dividend from the IEPF Authority.
FIRST Bank held 28,253 equity shares of ` 10 each belonging As on March 31, 2021, the amounts lying in the unclaimed/
to 99 shareholders. During FY 2020-21, no shareholder had unpaid dividend account with respect to the final dividend
approached the Registrar and Share Transfer Agent for that were declared by the Bank and erstwhile Capital First
transfer of shares from the Demat Suspense Account. As on Limited and last tentative date for claiming dividend before
March 31, 2021, the Demat Suspense Account of IDFC FIRST they become due to be credited to the IEPF are mentioned
Bank held 28,253 equity shares of ` 10 each belonging to 99 in Table No. 17:
shareholders.
Table No. 17: Tentative Date of Transfer of Unclaimed/ Unpaid Dividend to IEPF
SN Financial Year IDFC FIRST Bank (`) erstwhile Capital First Limited (`) Last Tentative Date for claiming
Dividend
1. 2013-14 NA ` 3,62,358.00 July 14, 2021
2. 2014-15 NA ` 4,34,564.00 August 15, 2022
3. 2015-16 ` 10,58,605.00 ` 4,31,465.20 August 22, 2023
148 IDFC FIRST Bank

SN Financial Year IDFC FIRST Bank (`) erstwhile Capital First Limited (`) Last Tentative Date for claiming
Dividend
4. 2016-17 ` 34,74,459.75 ` 5,22,449.80 August 23, 2024
5. 2017-18 ` 42,68,433.00 ` 6,29,235.60 August 26, 2025
CORPORATE OVERVIEW
6. 2018-19 No Dividend Declared
7. 2019-20 No Dividend Declared
During FY 2021-22, the Bank would be transferring unclaimed the date they became due for payment are required to be
Dividend amount declared for the FY 2013-14 by erstwhile transferred to the demat account of IEPF in the manner
Capital First Limited (‘eCFL’). The Bank has sent an intimation prescribed under the IEPF Authority (Accounting, Audit,
letter dated April 05, 2021 to shareholders in respect of the Transfer and Refund) Amendment Rules, 2017 as may be
shares on which dividend declared by eCFL for FY 2013-14, amended from time to time. Upon transfer of such shares,
had remained unpaid or unclaimed for seven consecutive all benefits (e.g. bonus, spilt etc.), if any, accruing on such
years or more, requesting them to claim such dividend latest shares shall also be credited to the IEPF Demat Account and
by July 14, 2021, so as to avoid the corresponding shares the voting rights on such shares shall remain frozen till the
STATUTORY REPORTS
being transferred to the IEPF authority. Simultaneously, an rightful owner claims the shares.
advertisement to this effect was published in leading English
In this connection, during FY 2020-21, IDFC FIRST Bank
and vernacular newspapers.
had sent intimation letters to shareholders in respect of the
Shareholders who either have not received or have not shares on which dividend declared by erstwhile Capital First
encashed their dividend warrant(s) as specified above, Limited for FY 2012-13, had remained unpaid or unclaimed
are requested to write to KFin Technologies Private Limited for seven consecutive years or more, requesting them to
[earlier Karvy Fintech Private Limited] (‘KFIN’), mentioning claim such dividend so as to avoid the corresponding shares
the relevant Folio number(s)/ DP ID and Client ID, for being transferred to the IEPF authority. Simultaneously, an
issuance of duplicate/ revalidated dividend warrant(s). advertisement to this effect was published in leading English
and vernacular newspapers.
All shares in respect of which dividend has not been claimed
or paid for a period of seven consecutive years or more from
During FY 2020-21 IDFC FIRST Bank had transferred to the IEPF, the following unclaimed Dividends which were declared by
erstwhile Capital First Limited for FY 2012-13 and shares:
Particulars Amount of No. of shares
Dividend (`)
Unclaimed Dividend for the FY 2012-13 and Shares on which Dividend had remained unpaid ` 3,66,029 2,443
or unclaimed for seven consecutive years or more, transferred during FY 2020-21 to IEPF
The dividend amount and shares transferred to the IEPF can holdings to dematerialized form. Transfers of equity shares
be claimed by the concerned shareholders from the IEPF in electronic form are processed through the depositories
Authority after complying with the procedure prescribed with no involvement of the Bank. The Allotment, Transfer and
under the IEPF Rules. The details of the unclaimed Routine Matters Committee are authorized by the Board to
dividends are also available on the Bank’s website at www. approve matters related to transfer/ transmission, remat/
idfcfirstbank.com under ‘Investors’ section and the said demat of shares, issue of duplicate shares, etc.
details have also been uploaded on the website of the IEPF
IDFC FIRST Bank has a Stakeholders’ Relationship and
Authority and the same can be accessed through www.
Customer Service Committee for redressing complaints and
iepf.gov.in.
queries raised by Shareholders, Investors and Customers,
As on March 31, 2021, 4,74,501 equity shares are lying with from time to time.
IEPF.
IDFC FIRST Bank’s shares are compulsorily traded in
Share Transfer System dematerialised mode. A half-yearly certificate of compliance
IDFC FIRST Bank has appointed KFIN as its Registrar with the share transfer formalities as required under
and Share Transfer Agent. All share transfers and related Regulation 40(9) of the Listing Regulations is obtained
operations are conducted by KFIN, which is registered with from the Practising Company Secretary and a copy of the
SEBI as a Category I Registrar. certificate is filed with the Stock Exchanges.
In terms of Regulation 40(1) of SEBI Listing Regulations, as As required by SEBI, Reconciliation of Share Capital Audit
amended from time to time, securities can be transferred is conducted by a Practising Company Secretary on a
only in dematerialized form with effect from April 01, 2019, quarterly basis, for the purpose, inter-alia, of reconciliation of
except in case of request received for transmission or the total admitted equity share capital with the depositories
transposition of securities. Further, SEBI has fixed March and in the physical form with the total issued/ paid-up equity
31, 2021 as the cut-off date for re-lodgement of transfer capital of the Bank.
deeds and the shares that are re-lodged for transfer shall
Certificates issued in this regard are filed with BSE and NSE
be issued only in demat mode. Members holding shares
on a quarterly basis.
in physical form are requested to consider converting their

Distribution of Shareholding
The distribution of the shareholding of IDFC FIRST Bank’s equity shares by size and by ownership as on March 31, 2021 are
given in Table No. 18 and Table No. 19 respectively. Top ten equity shareholders of IDFC FIRST Bank as on March 31, 2021
are given in Table No. 20.
Table No. 18 : Distribution of Shareholding as on March 31, 2021 (Total) (By Size)
SN Category (Shares) No. of Holders % To Holders No. of Equity Shares % To Equity
1. 1 - 5,000 11,49,734 97.16 48,92,30,835 8.62
2. 5,001 - 10,000 17,683 1.49 13,00,14,703 2.29
3. 10,001 - 20,000 8,647 0.73 12,27,96,990 2.16
4. 20,001 - 30,000 2,813 0.24 6,96,51,654 1.23
5. 30,001 - 40,000 1,237 0.10 4,34,72,625 0.77
6. 40,001 - 50,000 780 0.07 3,59,50,603 0.63
7. 50,001 - 100,000 1,354 0.11 9,62,46,299 1.70
8. 100,001 and above 1,114 0.09 4,68,84,86,146 82.60
TOTAL 11,83,362 100.00 5,67,58,49,855 100.00
Table No. 19 : Distribution of Shareholding as on March 31, 2021 (Total) (By Ownership)
SN Description No. of Holders No. of Equity Shares % To Equity
1. Promoters Bodies Corporate 1 2,26,89,37,489 39.98
2. Foreign Portfolio - Corp 158 67,41,84,070 11.88
3. Foreign Corporate Bodies 1 47,17,33,265 8.31
4. Foreign Nationals 14 47,312 ß
5. Qualified Institutional Buyer 10 44,55,06,136 7.85
6. Mutual Funds 13 16,24,07,577 2.86
7. Clearing Members 329 3,26,31,771 0.57
8. Insurance Companies 5 2,80,64,270 0.49
9. Indian Financial Institutions 1 100 ß
10. Alternative Investment Fund 1 19,000 ß
11. Bodies Corporates 2,861 5,65,46,718 1.00
12. Banks 9 13,80,240 0.02
13. NBFC 13 19,61,503 0.03
14. President of India 1 26,14,00,000 4.61
15. Investor Education and Protection Fund 1 4,74,501 0.01
16. Resident Individuals 11,47,093 1,14,97,05,649 20.26
17. Non-Resident Indians 8,029 6,05,67,459 1.07
18. Non-Resident Indian Non Repatriable 4,380 2,17,04,233 0.38
19. HUF 20,406 3,81,66,442 0.67
20. Trusts 36 4,12,120 0.01
TOTAL 11,83,362 5,67,58,49,855 100.00
ß denotes negligible value
Table No. 20 : Top Ten Equity Shareholders as on March 31, 2021 (Client Id based)
SN Name No. of Equity Shares % To Equity
1. IDFC Financial Holding Company Limited 2,26,89,37,489 39.98
2. Cloverdell Investment Ltd 47,17,33,265 8.31
3. President of India 26,14,00,000 4.61
4. ICICI Prudential Life Insurance Company Limited 25,87,32,212 4.56
5. ODYSSEY 44 A S 22,85,89,390 4.03
6. Bajaj Allianz Life Insurance Company Ltd. 9,19,45,461 1.62
7. Dayside Investment Ltd 9,17,75,672 1.62
8. HDFC Life Insurance Company Limited 7,80,44,407 1.38
9. Aditya Birla Sun Life Trustee Private Limited A/C Aditya Birla Sun Life Tax Relief 96 6,42,40,516 1.13
10. Vanguard Emerging Markets Stock Index Fund, a series of Vanguard International 3,86,33,746 0.68
Equity Index Funds
Dematerialisation of Shares and Liquidity
The Bank’s shares are compulsorily traded in dematerialised form on NSE and BSE and are available for trading on both the
depositories in India i.e. NSDL and CDSL. As on March 31, 2021, over 99.99% equity shares of IDFC FIRST Bank were held
150 IDFC FIRST Bank

in dematerialised form. Details on the same are given in Table No. 21.
Table No. 21 : Statement of Dematerialisation of Shares as on March 31, 2021
Category No. of Equity Shares % To Equity
CORPORATE OVERVIEW
NSDL 5,16,40,37,698 90.98
CDSL 51,16,99,237 9.02
Physical 1,12,920 ß
TOTAL 5,67,58,49,855 100.00
ß denotes negligible value
Credit Ratings and Change/ Revisions in Credit Ratings:

As on the date of this report, the credit ratings assigned by the rating agencies are as below:
Domestic Long Term Outlook Short-term Month of
Rating Press Release
STATUTORY REPORTS
Tier 2 NCDs Infrastructure Fixed Bank Loan1 Certificates of
Bonds Bonds Deposits Deposits
CRISIL CRISIL AA - - FAAA - Stable CRISIL A1+ Apr-21
ICRA - ICRA AA ICRA AA - - Stable ICRA A1+ June-20
India Ratings IND AA+ IND AA+ IND AA+ - - Negative - Aug-20
CARE - CARE AA - - CARE AA Stable - Oct-20
Brickworks - BWR AA+ - - - Stable - May-21
Notes:
1 The Instruments have been transferred from Capital First Limited (CFL) and Capital First Home Finance Limited (CFHFL) to IDFC FIRST
Bank Limited as per the Scheme of Amalgamation between CFL, CFHFL and Capital First Securities Limited with IDFC FIRST Bank.
During the FY 2020-21 following revisions in credit rating Recommendations of Committees of the Board
took placed: There were no instances during the FY 2020-21, wherein the
CRISIL: Long term rating of CRISIL FAAA (Stable) was Board had not accepted recommendations made by any
assigned to IDFC FIRST Bank’s Fixed Deposit Program (April Committee of the Board.
2020)
Total fees for Statutory Auditors of the Bank
ICRA: Short Term rating of IDFC FIRST Bank’s Commercial
During FY 2020-21: a] M/s. B S R & Co. LLP, Chartered
Papers was withdrawn considering NIL Outstanding (May
Accountants (Firm Registration No. 101248W/W- 100022)
2020)
were paid/ provided ` 2.70 crore as Audit Fees and
CARE: Long term ratings of IDFC FIRST Bank’s NCD and ` 2.68 crore as fees for Certifications, and rendering other
bank loans were revised to CARE AA (Stable) from CARE Non-Audit services (includes fees related to QIP) to the Bank
AA+ (Negative) and Short Term rating of IDFC FIRST and b] ` 0.11 crore was paid/ provided to one of the firms
Bank’s Commercial Papers was withdrawn considering NIL of B S R & Affiliates, a network registered with the Institute
outstanding (October 2020) of Chartered Accountants of India, of which the Statutory
Auditors are a member entity.
During the FY 2021-22 following revisions in credit rating
took place: The above fees excludes applicable Taxes and Out of
Brickwork: Long term ratings of IDFC FIRST Bank’s bank Pocket expenses.
loans was withdrawn considering NIL outstanding (May
2021) Disclosures in relation to the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and
Details of utilization of funds raised through preferential
Redressal) Act, 2013:
allotment or qualified institutions placement:
Our Bank has an Internal Committee (‘IC’) to investigate and
During the FY 2020-21, the Bank has raised funds through
inquire into sexual harassment complaints in line with The
Preferential Allotment on June 12, 2020. Further subsequent
Sexual Harassment of Women at Workplace (Prevention,
to the year under review, the Bank has raised funds through
Prohibition & Redressal) Act, 2013.
Qualified Institutional Placement.
The Bank has utilized the funds raised through Preferential Our Bank has in place a policy on Anti-Sexual Harassment,
Allotment made by the Bank during FY 2020-21 for the which reflects the Bank’s zero-tolerance towards any form
purposes which was stipulated in the Placement Document. of prejudice, gender bias and sexual harassment at the
Further, the funds raised through Qualified Institutions workplace. Our Bank has set up an IC to receive and redress
Placement subsequent to the year under review has also complaints of sexual harassment. Our Bank undertakes
been utilized for the purposes which was stipulated in the ongoing trainings to create awareness on this policy.
Placement Document.

During the year under review i.e. FY 2020-21, four (4) sexual Registered Office Address
harassment complaints were filed, out of which three (3) IDFC FIRST Bank Limited
complaints were closed during the year. One (1) complaint KRM Tower, 7th Floor, No. 1 Harrington Road, Chetpet,
was received in the month of February 2021 and was Chennai - 600 031, Tamil Nadu, India.
subsequently resolved within the timelines. Tel: +91 44 4564 4000
Toll Free No.: 1800 266 0404
During FY 2020-21, employees were given online training
E-mail: bank.info@idfcfirstbank.com
in order to understand the Policy on Prevention of Sexual
Website: www.idfcfirstbank.com
Harassment and framework for reporting and resolving
instances of sexual harassment.
For Bond Related Query you can contact:
Outstanding GDRs/ ADRs/ Warrants or any Convertible RTA Toll Free No.: 1800 309 4001
Instruments, Conversion Date and likely impact on E-mail: einward.ris@kfintech.com
Equity Bank Toll Free No.: 1800 266 0404
The Bank does not have any Outstanding GDRs/ ADRs/ E-mail: ig@idfcfirstbank.com
Warrants or any other convertible instruments as on date.
Details of the Registrar and Share Transfer Agent
Commodity Price Risk or Foreign Exchange Risk and For Equity Shares and 80CCF Long Term Infrastructure
Commodity Hedging Activities Bonds
The Bank has a Board approved Market Risk Management KFin Technologies Private Limited
Policy, Limit Management Framework and Foreign Exchange (Unit: IDFC FIRST Bank Limited)
and Derivatives Policy which defines the risk control Selenium Tower B, Plot 31 & 32, Gachibowli, Financial
framework for undertaking foreign exchange transactions District, Nanakramguda, Serilingampally, Hyderabad - 500
and for managing the risks associated with it. The Board of 032, Telangana, India.
the Bank has defined Net Overnight Open Position (‘NOOP’) Tel: +91 40 6716 2222/ 7961 1000
Limit, Stop Loss Limit, Value at Risk (‘VaR’) limit to control the Toll Free: 1800 309 4001
Foreign exchange risk within the approved framework. The E-mail: einward.ris@kfintech.com
Bank uses derivatives including FORWARDS and SWAPS Website: www.kfintech.com
for hedging its currency risk in its balance sheet and offers
For Certificate of Deposits, Bonds and Debentures
these products to customers and proprietary trading in
issued on Private Placement basis
due compliance with overall risk limits, control framework
NSDL Database Management Limited
and applicable regulatory guidelines. Bank does not offer
4th Floor, Trade World, A Wing, Kamala Mills Compound,
commodity hedging products.
Senapati Bapat Marg, Lower Parel, Mumbai - 400 013,
The management of these products is governed by the Maharashtra, India
policies mentioned above. The Bank did not exceed any Tel: +91 22 4914 2700
of the Board approved risk limits during the period under E-mail: pratikt@nsdl.co.in
review. Website: www.ndml.in
Plant Location Details of the Debenture Trustee
As the Bank is engaged in the business of banking / financial IDBI Trusteeship Services Limited
services, the Bank does not have any plant location. Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard
Estate, Mumbai - 400 001, Maharashtra, India.
INVESTOR CORRESPONDENCE MAY BE Tel: +91 22 4080 7000
ADDRESSED TO: E-mail : itsl@idbitrustee.com
Mr. Satish Gaikwad Website: www.idbitrustee.com
Head – Legal & Company Secretary Catalyst Trusteeship Limited
Corporate Office Address GDA House, Plot No. 85, Bhusari Colony (Right), Paud Road,
IDFC FIRST Bank Limited Pune – 411 038, Maharashtra, India.
Naman Chambers, C-32, G Block, Bandra-Kurla Complex, Tel. No.: +91 20 2528 0081
Bandra (East), Mumbai - 400 051, Maharashtra, India. E-mail: dt@ctltrustee.com
Tel: +91 22 7132 5500 Website: www.catalysttrustee.com


152 IDFC FIRST Bank

Corporate Governance Compliance Certificate
CORPORATE OVERVIEW
To
The Members,
We have examined the compliance of conditions of Governance as stipulated in Regulations 17 to 27, clauses
Corporate Governance by IDFC FIRST Bank Limited (“the (b) to (i) of sub-regulation (2) of Regulation 46 and Para C, D
Bank”) for the year ended on March 31, 2021, as stipulated in and E of Schedule V of the Listing Regulations.
Regulations 17 to 27 and clauses (b) to (i) of sub-regulation
We further state that such compliance is neither an assurance
(2) of Regulation 46 and Para C, D and E of Schedule V of The
as to the future viability of the Bank nor of the efficiency or
STATUTORY REPORTS
Securities and Exchange Board of India (Listing Obligations
effectiveness with which the management has conducted
and Disclosure Requirements) Regulations, 2015 [”Listing
the affairs of the Bank.
Regulations”].
For Makarand M. Joshi & Co.
The compliance of conditions of Corporate Governance is
Practicing Company Secretaries
the responsibility of the management. Our examination was
limited to procedures and implementation thereof, adopted
Kumudini Bhalerao
by the Bank for ensuring the compliance of the conditions
Partner
of the Corporate Governance. It is neither an audit nor an
FCS No. 6667
expression of opinion on the financial statements of the
CP No. 6690
Bank.
In our opinion and to the best of our information and according UDIN: F006667C000341397
to the explanations given to us, and representations made
by the management, we certify that the Bank, to the extent Place: Mumbai
applicable, has complied with the conditions of Corporate Date: May 18, 2021

ANNEXURE A
Certificate of Non-Disqualification of Directors
Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
To,
The Member of
IDFC FIRST BANK LIMITED
KRM Tower, 7th Floor,
No. 1 Harrington Road,
Chetpet, Chennai - 600031
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of IDFC FIRST
Bank Limited, having CIN: L65110TN2014PLC097792 and having registered office at KRM Tower, 7th Floor, No. 1 Harrington
Road, Chetpet, Chennai - 600031 (hereinafter referred to as ‘the Bank’), produced before us by the Bank for the purpose of
issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C sub clause 10(i) of the Securities
and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification Number
(DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Bank and its
officers, we hereby certify that none of the Directors on the Board of the Bank as stated below for the financial year ended on
March 31, 2021 have been debarred or disqualified from being appointed or continuing as Directors of Companies by the
Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.
Sr. Name of Director DIN Date of appointment
No.
1. Mr. Aashish Kamat 06371682 December 18, 2018
2. Dr. (Mrs.) Brinda Jagirdar 06979864 December 18, 2018
3. Mr. Hemang Raja 00040769 December 18, 2018
4. Mr. Pravir Kumar Vohra 00082545 August 01, 2018
5. Mr. Sanjeeb Chaudhuri 03594427 May 10, 2019
6. Mr. Sunil Kakar 03055561 July 16, 2017
7. Mr. Vishal Mahadevia 01035771 December 18, 2018
8. Mr. Vaidyanathan Vembu 00082596 December 19, 2018
Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management
of the Bank. Our responsibility is to express an opinion based on our verification. This certificate is neither an assurance as
to the future viability of the Bank nor of the efficiency or effectiveness with which the management has conducted the affairs
of the Bank.
For Bhandari & Associates
Company Secretaries
S. N. Bhandari
Partner
FCS No: 761; C P No. : 366
Mumbai | June 11, 2021
ICSI UDIN: F000761C000447451
154 IDFC FIRST Bank

CEO & CFO Certificate
CORPORATE OVERVIEW
We, V. Vaidyanathan, Managing Director & Chief Executive Officer and Sudhanshu Jain, Chief Financial
Officer & Head - Corporate Centre of IDFC FIRST Bank Limited (‘the Bank’) hereby certify to the Board that:
[a] We have reviewed financial statements and the cash (ii) significant changes in accounting policies during
flow statement for the year ended March 31, 2021 and the year and the same have been disclosed in the
that to the best of our knowledge and belief: notes to the financial statements; and
(i) these statements do not contain any materially (iii) instances of significant fraud of which we have
untrue statement or omit any material fact or become aware and the involvement therein, if
STATUTORY REPORTS
contain statements that might be misleading; any, of the management or an employee having a
significant role in the listed entity’s internal control
(ii) these statements together present a true and fair
system over financial reporting.
view of the Bank’s affairs and are in compliance
with existing accounting standards, applicable [e] We affirm that no personnel has been denied access to
laws and regulations. the Audit Committee of the Bank (in respect of matters
involving alleged misconduct, if any).
[b] There are, to the best of our knowledge and belief, no
transactions entered into by the Bank during the year [f] We further declare that all Board members and Senior
which are fraudulent, illegal or violative of the Bank’s Management Personnel have affirmed compliance with
Code of Conduct. the ‘Code of Conduct for Board of Directors & Senior
Management Personnel’.
[c] We accept responsibility for establishing and
maintaining internal controls for financial reporting and For IDFC FIRST Bank Limited
we have evaluated the effectiveness of internal control
systems of the Bank pertaining to financial reporting.
We have disclosed to the Auditors and the Audit V. Vaidyanathan Sudhanshu Jain
Committee, deficiencies in the design or operation of Managing Director & Chief Financial Officer &
such internal controls, if any, of which we are aware and Chief Executive Officer Head - Corporate Centre
the steps we have taken or propose to take to rectify DIN: 00082596
these deficiencies.
Date: June 16, 2021
[d] We have indicated to the Auditors and the Audit
Place: Mumbai
Committee:
(i) significant changes in internal control over
financial reporting during the year;

Independent Auditor’s Report
To the Members of IDFC FIRST Bank Limited Basis of opinion
We conducted our audit in accordance with the Standards
Report on the audit of the Standalone Financial on Auditing (‘SAs’) specified under Section 143 (10) of
Statements the Act. Our responsibilities under those SAs are further
Opinion described in the Auditor’s Responsibilities for the Audit of the
We have audited the standalone financial statements of Standalone Financial Statements section of our report. We
IDFC FIRST Bank Limited (the ‘Bank’), which comprise are independent of the Bank in accordance with the Code
the standalone balance sheet as at 31 March 2021, the of Ethics issued by the Institute of Chartered Accountants of
standalone profit and loss account, the standalone cash India together with the ethical requirements that are relevant
flow statement for the year then ended, and notes to the to our audit of the standalone financial statements under
standalone financial statements, including a summary of the provisions of the Act and the Rules thereunder, and we
the significant accounting policies and other explanatory have fulfilled our other ethical responsibilities in accordance
information. with these requirements and the Code of Ethics. We believe
In our opinion and to the best of our information and according that the audit evidence we have obtained, is sufficient
to the explanations given to us, the aforesaid standalone and appropriate to provide a basis for our opinion on the
financial statements give the information required by the standalone financial statements.
Banking Regulation Act, 1949 as well as the Companies Key audit matters
Act, 2013 (the ‘Act’) in the manner so required for banking Key audit matters are those matters that, in our professional
companies and give a true and fair view in conformity with judgment, were of most significance in our audit of the
the accounting principles generally accepted in India, of the standalone financial statements of the current period. These
state of affairs of the Bank as at 31 March 2021, and its profit, matters were addressed in the context of our audit of the
and its cash flows for the year ended on that date. standalone financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.
156 IDFC FIRST Bank

Key audit matter How the matter was addressed in our audit
Provisions on advances
P/L Charge (Including provision on Non Performing Advances (NPA), Identified Standard Advances, restructured
CORPORATE OVERVIEW
advances, COVID provisions and Write-off): Rs. 3,888 crore for year ended 31 March 2021
Provision on Advances (Including provision on Non Performing Advances, Identified Standard Advances and
Restructured Advances): Rs. 3,173 crore as at 31 March 2021
Refer to the accounting policies in “Note 17.02 to the Standalone Financial Statements: Significant Accounting Policies –
Advances”, “Schedule 9 to the Standalone Financial Statements: Advances”, “Note 18.12(d) to the Standalone Financial
Statements: COVID-19 Regulatory Package - Asset Classification and Provisioning” and “Note 18.29 to the Standalone
Financial Statements: Provisions and Contingencies”
Subjective estimate Our key audit procedures included:
Provisions in respect of non-performing and restructured Design / controls
advances are made based on management’s assessment - Assessing the design, implementation and operating
STATUTORY REPORTS
of the degree of impairment of the advances subject to the effectiveness of key internal financial controls over
minimum provisioning levels prescribed under the Prudential monitoring of watch list loans, including monitoring
Norms on Income Recognition, Asset Classification & process of overdue loans (and those which became
Provisioning, prescribed by the RBI from time to time. overdue subsequent to the reporting date), measurement
The provision on non-performing assets (NPAs) are also of provision, identification of NPA accounts, assessing
based on the valuation of the security available. In case of the reliability of management information, which included
restructured accounts, provision is made in accordance with overdue reports. Also, assessing how management
the RBI guidelines. has evaluated the impact of stress in the overall
economic environment arising from COVID-19 in its NPA
We identified provision on non-performing advances as a
assessment.
key audit matter because of-
- Understanding management’s approach, interpretation,
1) the management judgement involved in determining the
systems and controls implemented in relation to NPA
provision;
computation.
2) any regulator mandated provision that may be needed
- For corporate loans, testing controls over the monitoring
for the portfolio of loans;
of the credit watch list, credit file review processes,
3) the dependency on the valuation of the security available approval of external collateral valuation vendors and
on NPAs; and review controls over the approval of significant individual
impairments.
4) because of its significance to the financial results of the
Bank. - Evaluating the design, implementation and operating
effectiveness of key internal controls over the valuation of
the securities for the NPAs and watch list cases.
- Testing of review controls over measurement of provisions
and disclosures in financial statements.
- Involving information system specialist to gain comfort
over data integrity and calculations, including system
reconciliations.
- Testing key controls operating over the information
technology in relation to NPA systems, including system
access and system change management, program
development and computer operations.
- Testing Bank’s controls relating to implementing
and actioning any RBI mandated specific provision
requirement.

Further, we have identified the impact of, and uncertainty Substantive tests
related to the COVID-19 pandemic as a key event and - Test of details over of calculation of NPA provisions,
consideration for recognition and measurement of NPAs including provisions on restructured loans, as at the
on account of greater levels of management judgement year-end for assessing the completeness, accuracy
and therefore increased levels of audit focus in the Bank’s and relevance of data and to ensure that the same is
estimation of provision for NPAs. in compliance with the Prudential Norms on Income
Recognition, Asset Classification & Provisioning, Bank’s
Management has assessed the impact of COVID-19 on the
policy and the Resolution Framework for COVID-19
loan portfolio in evaluating the need for recording additional
related stress announced by the RBI.
provisions on loans at 31 March 2021.
- Select a sample of corporate loans to test potential cases
of loans repaid and disbursed to the same customer
during the period and fresh disbursement(s) to stressed
customers.
- Testing a sample (based on quantitative and
qualitative thresholds) of large sized corporate clients
where impairment indicators had been identified by
management. Obtaining management’s assessment
of the recoverability of these exposures (including
individual provisions calculations) and challenging
whether individual impairment provisions, or lack of, were
appropriate.
This included the following procedures:
• evaluating the statement of accounts, approval process,
committee meeting minutes, credit review of customers,
review of SMA reports and other related documents to
assess recoverability and the classification of the facility;
and
• assessing external collateral valuer’s work and the results
and comparing external valuations to values used in
management’s assessment.
- For a selection of corporate loans not identified as
displaying indicators of impairment by management,
independently challenging their assessment by
reviewing the historical performance of the customer
and formed our own view whether any impairment
indicators were present.
- Evaluating management’s rationale for making
additional provision on account of COVID-19 and
testing the computation.
- Assessing the factual accuracy and appropriateness
of the financial statements disclosures made by
the Bank in context of impact of COVID-19 and
restructured loans.
158 IDFC FIRST Bank

Assessment of the realizability of deferred tax assets
Deferred tax asset (net): Rs. 1,999 crore as at 31 March 2021
CORPORATE OVERVIEW
Refer to the accounting policies in “Note 17.08 to the Standalone Financial Statements: Significant Accounting Policies –
Income Tax” and “Note 18.28 to the Standalone Financial Statements: Deferred Tax”
Significant estimate and judgement involved Our key audit procedures included:
Recognition of deferred tax assets require a determination of • Assessing the design, implementation and operating
future taxable income based on the Bank’s expectations. The effectiveness of management’s key internal financial
assessment of realizability of deferred tax assets is based controls over the recognition of deferred tax assets.
on a virtual or reasonable certainty test, depending on the
• Obtained details of different components of deferred tax
composition of the deferred tax assets.
assets and details of estimates of taxable incomes for
Given the Bank’s recent financial performance and future periods as approved by the Board of Directors.
uncertainty in business growth on account of COVID-19, we
• Obtained confirmation where the future forecasts were
STATUTORY REPORTS
identified recognition of deferred tax assets as a key audit
approved in the meetings of the Board of Directors.
matter because of the significant management judgement
and assumptions involved in estimating the future taxable • Evaluating management assessment relating to the
income based on the income forecasts approved by the amendment in Income Tax Act and its consequential
Bank’s Board of Directors. impact on items that qualify for recognition of deferred
tax assets.
• Evaluating management assessment for estimating
availability of future taxable profits for determination of
recognition of deferred tax assets.
• Evaluated management’s considerations involved in
forecasting future taxable profits due to the uncertainty
on account of COVID-19.
• Assessed the period over which the deferred tax assets
would be recovered against future taxable income.
• Evaluated the Bank’s actual performance vis-à-vis the
budgets for the current and past years and discussed
with management their basis and assumptions in respect
of evidence to support that there will be sufficient taxable
income to absorb the deferred tax asset.
• Performed sensitivity analysis over the Bank’s
expectations of the future taxable income.

Valuation of Investments
Net Value of Investments: Rs. 45,412 crore as at 31 March 2021
Provision on depreciation on investments (including the amount related to standard identified investments):
Rs. (820) crore for year ended 31 March 2021
Refer to the accounting policies in “Note 17.01 to the Standalone Financial Statements: Significant Accounting Policies-
Investments Classification”, “Schedule 8 to the Standalone Financial Statements: Investments” and “Schedule 18.29 to the
Standalone Financial Statements: Provision and Contingencies”
Subjective estimates and judgment involved Our key audit procedures included:
Investments Test of design / controls
Investments are classified into ‘Held for Trading’ (‘HFT’), - Assessed the design, implementation and operating
‘Available for Sale’ (‘AFS’) and ‘Held to Maturity’ (‘HTM’) effectiveness of management’s key internal financial
categories at the time of purchase. Investments, which controls over specific provisions on certain investments.
the Bank intends to hold till maturity are classified as HTM
- Evaluated controls relating to creation and reversal of
investments.
provisions
Investments classified as HTM are carried at amortised cost.
Substantive tests
Where, in the opinion of management, a diminution other
- For a selection of investments, we re-performed the
than temporary, in the value of investments has taken place,
valuation computation. For cases where no directly
appropriate provisions are required to be made.
observable inputs were used, we examined and re-
Investments classified as AFS and HFT are marked- to- performed the calculation basis the cashflows by using a
market on a periodic basis as per the relevant RBI guidelines. discounted cashflow method to compare the results with
that of the Bank’s which was computed in accordance
We identified valuation of investments as a key audit matter
with the relevant RBI guidelines.
because of the:
- We verified the management assessment of specific
- management judgement and external data involved in-
provisions against certain investments and evaluated the
• determining the value of certain investments like appropriateness of the provisions made and rationale
security receipts, venture capital units, pass through put forward by the Bank for reversal of such specific
certificates and unquoted equity securities, provision.
• creation and reversal of specific provisions on certain - Assessed whether the financial statement disclosures
identified investments; and appropriately reflect the Bank’s exposure to investments
with reference to the requirements of the prevailing RBI
• the overall significance of investments to the financial
guidelines.
statements of the Bank.
- We verified that the specific provision are netted off from
the carrying value of such investments in line with the
accounting policy of the Bank.
160 IDFC FIRST Bank

Information technology Our key IT audit procedures included:
Information Technology (IT) systems and controls - We focused on user access management, change
CORPORATE OVERVIEW
The Bank’s key financial accounting and reporting processes management, segregation of duties, system interface
are highly dependent on information systems including controls, system application controls and Information
automated controls in systems, such that there exists a risk Produced by entity (IPE) controls over key financial
that gaps in the IT control environment could result in the accounting and reporting systems.
financial accounting and reporting records being misstated.
- We tested a sample of key controls for data migration
Amongst its multiple IT systems, we scoped in systems that
operating over the information technology in relation to
are key for the overall financial reporting.
financial accounting and reporting systems, including
The Bank has also undertaken few data migration projects analysis of strategy documents, review of data mapping
post the merger in the last financial year. sheets and reconciliation confirmations from operations
team, user acceptance test (UAT) sign offs, incidents
Further, the prevailing COVID-19 situation has caused the
monitoring and approvals for pre and post migration.
STATUTORY REPORTS
required IT applications to be made accessible on a remote
basis. - We tested the design and operating effectiveness of key
controls over user access management which include
We have identified ‘IT systems and controls’ as a key audit
new user creation and granting access rights, removal of
matter because of the high level of automation, significant
user rights, user access review and preventive controls
number of systems being used by management and the
designed to enforce segregation of duties.
complexity of the IT architecture.
- For a selected group of key controls over financial
and reporting systems, we independently performed
procedures to determine that these controls remained
unchanged during the year or were changed following
the standard change management process.
- Other areas that were assessed included password
policies, security configurations, controls over changes
to applications and databases and controls to ensure
that developers and production support did not have
access to change applications, the operating system or
databases in the production environment.
- Performed inquiry for data security controls in the context
of a large population of staff working from remote location
at the year end.
Information Other than the Standalone Financial communicate the matter to those charged with governance.
Statements and Auditors’ Report Thereon
Management’s and Board of Director’s Responsibility for
The Bank’s management and Board of Directors are
the Standalone Financial Statements
responsible for the other information. The other information
The Bank’s management and Board of Directors are
comprises the information included in the Bank’s Annual
responsible for the matters stated in Section 134(5) of the
report, but does not include the standalone financial
Act with respect to the preparation of these standalone
statements and our auditor’s report thereon. The Bank’s
financial statements that give a true and fair view of the state
Annual report is expected to be made available to us after
of affairs, profit and cash flows of the Bank in accordance
the date of this auditor’s report.
with the accounting principles generally accepted in India,
Our opinion on the standalone financial statements does not including the Accounting Standards specified under Section
cover the other information and we will not express any form 133 of the Act, provisions of Section 29 of the Banking
of assurance conclusion thereon. Regulation Act, 1949 and the circulars and guidelines
issued by Reserve Bank of India (‘RBI’) from time to time.
In connection with our audit of the standalone financial
This responsibility also includes maintenance of adequate
statements, our responsibility is to read the other information
accounting records in accordance with the provisions of
identified above when it becomes available and, in doing
the Act, for safeguarding of the assets of the Bank and for
so, consider whether the other information is materially
preventing and detecting frauds and other irregularities;
inconsistent with the standalone financial statements or our
selection and application of appropriate accounting policies;
knowledge obtained in the audit or otherwise appears to be
making judgments and estimates that are reasonable and
materially misstated.
prudent; and design, implementation and maintenance
When we read the Bank’s Annual Report, if we conclude that of adequate internal financial controls that were operating
there is a material misstatement therein, we are required to effectively for ensuring the accuracy and completeness

of the accounting records, relevant to the preparation and obtained, whether a material uncertainty exists related
presentation of the standalone financial statements that give to events or conditions that may cast significant doubt
a true and fair view and are free from material misstatement, on the Bank’s ability to continue as a going concern.
whether due to fraud or error. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report
In preparing the standalone financial statements, the
to the related disclosures in the standalone financial
Management and Board of Directors are responsible for
statements or, if such disclosures are inadequate, to
assessing the Bank’s ability to continue as a going concern,
modify our opinion. Our conclusions are based on the
disclosing, as applicable, matters related to going concern
audit evidence obtained up to the date of our auditor’s
and using the going concern basis of accounting unless
report. However, future events or conditions may cause
the Management and Board of Directors either intends to
a Bank to cease to continue as a going concern.
liquidate the Bank or to cease operations, or has no realistic
alternative but to do so. • evaluate the overall presentation, structure and content
of the standalone financial statements, including the
The Board of Directors are also responsible for overseeing
disclosures, and whether the standalone financial
the Bank’s financial reporting process.
statements represent the underlying transactions and
Auditor’s Responsibilities for the Audit of the Standalone events in a manner that achieves fair presentation.
Financial Statements
We communicate with those charged with governance
Our objectives are to obtain reasonable assurance about
regarding, among other matters, the planned scope and
whether the standalone financial statements as a whole
timing of the audit and significant audit findings, including
are free from material misstatement, whether due to fraud
any significant deficiencies in internal control that we
or error, and to issue an auditor’s report that includes our
identify during our audit. We also provide those charged
opinion. Reasonable assurance is a high level of assurance,
with governance with a statement that we have complied
but is not a guarantee that an audit conducted in accordance
with relevant ethical requirements regarding independence,
with SAs will always detect a material misstatement when it
and to communicate with them all relationships and other
exists. Misstatements can arise from fraud or error and are
matters that may reasonably be thought to bear on our
considered material if, individually or in the aggregate, they
independence, and where applicable, related safeguards.
could reasonably be expected to influence the economic
From the matters communicated with those charged with
decisions of users taken on the basis of these standalone
governance, we determine those matters that were of
financial statements. As part of an audit in accordance
most significance in the audit of the standalone financial
with SAs, we exercise professional judgment and maintain
statements of the current period and are therefore the key
professional skepticism throughout the audit. We also:
audit matters. We describe these matters in our auditor’s
• identify and assess the risks of material misstatement report unless law or regulation precludes public disclosure
of the standalone financial statements, whether due to about the matter or when, in extremely rare circumstances,
fraud or error, design and perform audit procedures we determine that a matter should not be communicated
responsive to those risks, and obtain audit evidence in our report because the adverse consequences of doing
that is sufficient and appropriate to provide a basis so would reasonably be expected to outweigh the public
for our opinion. The risk of not detecting a material interest benefits of such communication.
misstatement resulting from fraud is higher than for
Report on other legal and regulatory requirements
one resulting from error, as fraud may involve collusion,
The standalone balance sheet and the standalone profit and
forgery, intentional omissions, misrepresentations, or
loss account have been drawn up in accordance with the
the override of internal control.
provisions of Section 29 of the Banking Regulation Act, 1949
• obtain an understanding of internal control relevant to and Section 133 of the Act.
the audit in order to design audit procedures that are
A. As required by sub-section (3) of Section 30 of the
appropriate in the circumstances. Under section 143(3)
Banking Regulation Act, 1949, we report that:
(i) of the Act, we are also responsible for expressing
our opinion on whether the bank has adequate internal (a) we have obtained all the information and
financial controls with reference to financial statements explanations which, to the best of our knowledge
in place and the operating effectiveness of such and belief, were necessary for the purpose of our
controls. audit and have found them to be satisfactory;
• evaluate the appropriateness of accounting policies (b) read with the matter discussed in Note 18.01 of
used and the reasonableness of accounting estimates standalone financial statements, transactions of
and related disclosures in the standalone financial the Bank, which have come to our notice, have
statements made by the Management and Board of been within the powers of the Bank; and
Directors.
(c) since the key operations of the Bank are automated
• conclude on the appropriateness of the Management with the key applications integrated to the core
and Board of Directors use of the going concern banking systems, the audit is carried out centrally
basis of accounting and, based on the audit evidence as all the necessary records and data required
162 IDFC FIRST Bank

for the purposes of our audit are available therein. litigations as at 31 March 2021 on its financial
However, during the course of our audit we have position in its standalone financial statements
visited 27 branches. - Refer Schedule 12 and Note 18.58 to the
standalone financial statements;
CORPORATE OVERVIEW
B. Further, as required by Section 143(3) of the Act, we
report that: ii. the Bank has made provision, as required under
the applicable law or accounting standards, for
(a) we have sought and obtained all the information
material foreseeable losses, if any, on long-term
and explanations which to the best of our
contracts including derivative contracts - Refer
knowledge and belief were necessary for the
Schedule 12 and Note 18.58 to the standalone
purposes of our audit;
financial statements;
(b) in our opinion, proper books of account as required
iii. there has been no delay in transferring amounts,
by law have been kept by the Bank so far as it
required to be transferred, to the Investor
appears from our examination of those books;
Education and Protection Fund by the Bank; and
STATUTORY REPORTS
(c) the standalone balance sheet, the standalone
iv. The disclosures required on holdings as well as
profit and loss account, and the standalone cash
dealing in Specified bank notes during the period
flow statement dealt with by this Report are in
from 8 November 2016 to 30 December 2016 as
agreement with the books of account;
envisaged in notification G.S.R. 308(E) dated 30
(d) in our opinion, the aforesaid standalone financial March 2017 issued by the Ministry of Corporate
statements comply with the Accounting Standards Affairs is not applicable to the Bank.
specified under Section 133 of the Act, to the
D. With respect to the other matters to be included in the
extent they are not inconsistent with the accounting
Auditors’ Report in accordance with the requirements
policies prescribed by RBI;
of Section 197(16) of the Act, as amended:
(e) on the basis of the written representations received
In our opinion and to the best of our information
from the directors as on 31 March 2021 taken
and according to the explanations given to us,
on record by the Board of Directors, none of the
being a banking company, Section 35B (2A) of the
directors is disqualified as on 31 March 2021 from
Banking Regulation Act, 1949 regarding managerial
being appointed as a director in terms of Section
remuneration applies to the Bank and Section 197 (16)
164 (2) of the Act; and
of the Act is not applicable.
(f) with respect to the adequacy of the internal
financial controls with reference to standalone For B S R & Co. LLP
financial statements of the Bank and the operating Chartered Accountants
effectiveness of such controls, refer to our separate ICAI Firm Registration No: 101248W/W-100022
Report in ‘Annexure A’.
Manoj Kumar Vijai
C. With respect to the other matters to be included in the Partner
Auditor’s Report in accordance with Rule 11 of the Membership No:046882
Companies (Audit and Auditors) Rules, 2014, in our UDIN: 21046882AAAAAG4376
opinion and to the best of our information and according
to the explanations given to us: Place: Mumbai
Date: 8 May 2021
i. the Bank has disclosed the impact of pending

Annexure A to the Independent Auditor’s Report
of even date on the standalone financial statements of IDFC FIRST Bank Limited for the period ended 31 March 2021
Report on the internal financial controls with reference to the aforesaid standalone financial statements under Clause
(i) of Sub-section 3 of Section 143 of the Companies Act, 2013
(Referred to in paragraph (B (f)) under ‘Report on other legal and regulatory requirements’ section of our report of
even date)
Opinion and perform the audit to obtain reasonable assurance about

We have audited the internal financial controls with reference whether adequate internal financial controls with reference
to standalone financial statements of IDFC FIRST Bank to standalone financial statements were established and
Limited (the ‘Bank’) as of 31 March 2021 in conjunction with maintained and whether such controls operated effectively
our audit of the standalone financial statements of the Bank in all material respects.
for the year ended on that date.
Our audit involves performing procedures to obtain audit
In our opinion, the Bank has, in all material respects, evidence about the adequacy of the internal financial
adequate internal financial controls with reference to controls with reference to standalone financial statements
standalone financial statements and such internal financial and their operating effectiveness. Our audit of internal
controls were operating effectively as at 31 March 2021, financial controls with reference to standalone financial
based on the internal financial controls with reference to statements included obtaining an understanding of such
standalone financial statements criteria established by internal financial controls, assessing the risk that a material
the Bank considering the essential components of internal weakness exists, and testing and evaluating the design
control stated in the Guidance Note on Audit of Internal and operating effectiveness of internal control based on
Financial Controls Over Financial Reporting issued by the the assessed risk. The procedures selected depend on
Institute of Chartered Accountants of India (the ‘Guidance the auditor’s judgment, including the assessment of the
Note’). risks of material misstatement of the standalone financial
statements, whether due to fraud or error.
We believe that the audit evidence we have obtained
Management’s responsibility for internal financial
is sufficient and appropriate to provide a basis for our
controls
audit opinion on the Bank’s internal financial controls with
The Bank’s management and the Board of Directors are
reference to standalone financial statements.
responsible for establishing and maintaining internal financial
controls based on the internal financial controls with reference Meaning of internal financial controls over financial
to standalone financial statements criteria established by reporting
the Bank considering the essential components of internal A bank’s internal financial controls with reference to
control stated in the Guidance Note. These responsibilities standalone financial statements is a process designed to
include the design, implementation and maintenance of provide reasonable assurance regarding the reliability of
adequate internal financial controls that were operating financial reporting and the preparation of the standalone
effectively for ensuring the orderly and efficient conduct of financial statements for external purposes in accordance with
its business, including adherence to the Bank’s policies, the generally accepted accounting principles. A bank’s internal
safeguarding of its assets, the prevention and detection of financial controls with reference to standalone financial
frauds and errors, the accuracy and completeness of the statements include those policies and procedures that (1)
accounting records, and the timely preparation of reliable pertain to the maintenance of records that, in reasonable
financial information, as required under the Companies Act, detail, accurately and fairly reflect the transactions and
2013 (the ‘Act’). dispositions of the assets of the bank; (2) provide reasonable
assurance that transactions are recorded as necessary to
Auditor’s responsibility
permit preparation of standalone financial statements in
Our responsibility is to express an opinion on the Bank’s
accordance with generally accepted accounting principles,
internal financial controls with reference to standalone
and that receipts and expenditures of the bank are being
financial statements based on our audit. We conducted
made only in accordance with authorizations of management
our audit in accordance with the Guidance Note and the
and directors of the bank; and (3) provide reasonable
Standards on Auditing prescribed under section 143 (10)
assurance regarding prevention or timely detection of
of the Act, to the extent applicable to an audit of internal
unauthorized acquisition, use, or disposition of the bank’s
financial controls with reference to standalone financial
assets that could have a material effect on the standalone
statements. Those Standards and the Guidance Note
financial statements.
require that we comply with ethical requirements and plan
164 IDFC FIRST Bank

Inherent limitations of internal financial controls with compliance with the policies or procedures may deteriorate.
reference to standalone financial statements
Because of the inherent limitations of internal financial controls For B S R & Co. LLP
with reference to standalone financial statements, including Chartered Accountants
CORPORATE OVERVIEW
the possibility of collusion or improper management override ICAI Firm Registration No: 101248W/W-100022
of controls, material misstatements due to error or fraud
may occur and not be detected. Also, projections of any Manoj Kumar Vijai
evaluation of the internal financial controls with reference to Partner
standalone financial statements to future periods are subject Membership No:046882
to the risk that the internal financial controls with reference UDIN: 21046882AAAAAG4376
to standalone financial statements may become inadequate Place: Mumbai
because of changes in conditions, or that the degree of Date: 8 May 2021
STATUTORY REPORTS

Balance Sheet
as at March 31, 2021
(` in Thousands)
As at As at
Particulars Schedule No.
March 31, 2021 March 31, 2020
Capital and Liabilities
Capital 1 56,758,499 48,099,030
Employees' stock options outstanding 1a 974 -
Reserves and surplus 2 121,319,463 105,326,974
Deposits 3 886,884,214 651,079,712
Borrowings 4 457,860,854 573,971,855
Other liabilities and provisions 5 108,614,824 113,526,415
TOTAL 1,631,438,828 1,492,003,986
Assets
Cash and balances with Reserve Bank of India 6 47,459,280 33,799,209
Balances with banks and money at call and short notice 7 10,819,273 8,108,642
Investments 8 454,117,427 454,045,798
Advances 9 1,005,501,259 855,953,595
Fixed assets 10 12,664,230 10,377,265
Other assets 11 100,877,359 129,719,477
TOTAL 1,631,438,828 1,492,003,986
Contingent liabilities 12 2,124,743,417 2,806,760,832

Bills for collection 12,853,780 9,149,534
Significant accounting policies and notes to accounts 17 & 18
The schedules and the accompanying notes to accounts referred to above form an integral part of the standalone Balance Sheet.
As per our report of even date.

The balance sheet has been prepared in conformity with form ‘B’ of the Third Schedule to the Banking Regulation Act, 1949
For B S R & Co. LLP For and on behalf of the Board of Directors of IDFC FIRST Bank Limited
Chartered Accountants
(Firm Registration No: 101248W/W-100022)
Manoj Kumar Vijai Aashish Kamat V. Vaidyanathan

Partner Director Managing Director & Chief Executive Officer
(Membership No. 046882) DIN: 06371682 DIN: 00082596
Satish Gaikwad Sudhanshu Jain

Date : May 8, 2021 Head - Legal & Chief Financial Officer &
Place : Mumbai Company Secretary Head Corporate Centre
166 IDFC FIRST Bank

Profit & Loss Account
for the year ended March 31, 2021
CORPORATE OVERVIEW
(` in Thousands)
Year Ended Year Ended
Schedule No.
March 31, 2021 March 31, 2020
I Income
Interest earned 13 159,678,595 163,075,645
Other income 14 22,536,990 17,221,577
TOTAL 182,215,585 180,297,222
II Expenditure
Interest expended 15 85,875,968 102,319,989
STATUTORY REPORTS
Operating expenses 16 70,932,833 58,609,874
Provisions and contingencies 18.29 20,883,981 48,009,463
TOTAL 177,692,782 208,939,326
III Net Profit / (Loss) for the year (I-II) 4,522,803 (28,642,104)
Balance in profit and loss account brought forward from previous (35,602,576) (5,300,472)
year
IV Amount Available for Appropriation (31,079,773) (33,942,576)
V Appropriations :
Transfer to statutory reserve 18.31 1,135,000 -
Transfer to investment reserve 18.31 3,350,000 -
Transfer to capital reserve 18.31 1,485,000 1,660,000
Transfer to special reserve 18.31 240,000 -
Transfer to investment fluctuation reserve 18.31 - -
Dividend paid (includes tax on dividend) 18.53 - -
Balance in profit and loss account carried forward (37,289,773) (35,602,576)
TOTAL (31,079,773) (33,942,576)
VI Earnings Per Share 18.47
(Face value ` 10 per share)
Basic (`) 0.82 (5.98)
Diluted (`) 0.81 (5.91)
The schedules and the accompanying notes to accounts referred to above form an integral part of the Profit and Loss Account.



Cash Flow Statement
(` in Thousands)
Schedule No.
March 31, 2021 March 31, 2020
A Cash flow from operating activities
Profit / (Loss) after tax 4,522,803 (28,642,104)
Add: Provision for tax 235,040 4,856,929
Net profit / (loss) before taxes 4,757,843 (23,785,175)
Adjustments for :
Depreciation on fixed assets 16 (V) 3,293,752 3,054,447
Amortization of deferred employee compensation 16 (I) 974 -
Amortisation of premium on held to maturity investments 1,061,129 1,286,952
Provision / (Write back) on depreciation in value of investments 18.29 (8,203,859) 10,514,904
Provision towards non performing advances 18.29 9,450,777 4,415,807
Provision for restructured assets 18.29 993,198 205,915
Provision / (Write back) on identified standard assets 18.29 811,004 (410,618)
Provision / (Write back) for standard assets 18.29 958,147 3,309,472
Bad-debts including technical / prudential write off 18.29 23,870,190 13,864,356
Loss / (Profit) on sale of fixed assets (net) 14 (IV) (156,565) 1,731
Other provisions and contingencies 18.29 (7,230,416) 11,252,696
Adjustments for :
(Increase) / decrease in investments (excluding held to 29,909,122 152,616,283
maturity investment and investment in subsidiary)
Increase in advances (183,578,718) (11,006,196)
Increase / (Decrease) in deposits 235,804,502 (53,710,374)
(Increase) / Decrease in other assets 30,459,300 (25,639,600)
Increase / (Decrease) in other liabilities and provisions (6,937,590) 24,584,931
Direct taxes (paid) / refund (net) 5,351,934 (1,287,424)
Net cash flow generated from operating activities (A) 140,614,724 109,268,106
B Cash flow from investing activities
Purchase of fixed assets (5,774,002) (4,005,264)
Proceeds from sale of fixed assets 349,850 73,872
Increase in held to maturity investments (22,838,021) (33,710,082)
Net cash flow used in investing activities (B) (28,262,173) (37,641,474)
168 IDFC FIRST Bank

Cash Flow Statement
CORPORATE OVERVIEW
C Cash flow from financing activities
Decrease in borrowings (116,111,001) (125,862,047)
Proceeds from issue of share capital 20,129,152 475,496
Net cash flow used in financing activities (C) (95,981,849) (125,386,551)
Net increase / (decrease) in cash and cash equivalents (A+B+C) 16,370,702 (53,759,919)
Cash and cash equivalents at the beginning of the year 41,907,851 95,667,770
Cash and cash equivalents at the end of the year 58,278,553 41,907,851
Represented by :
Cash and Balances with Reserve Bank of India 6 47,459,280 33,799,209
STATUTORY REPORTS
Balances with Banks and Money at Call and Short Notice 7 10,819,273 8,108,642


Schedules
forming part of the balance sheet as at March 31, 2021
Schedule 1 - Capital
(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
Authorised capital
7,500,000,000 (Previous Year - 5,325,000,000) equity shares of ` 10 each 75,000,000 53,250,000
3,800,000 (Previous Year - 3,800,000) Preference shares of ` 100 each 380,000 380,000
Equity Share Capital ^
Issued, subscribed and paid-up capital
5,675,849,855 (Previous Year - 4,809,903,016) equity shares of ` 10 each, fully paid up 56,758,499 48,099,030
TOTAL 56,758,499 48,099,030
^ Includes 3,506,135 equity shares (Previous Year 28,226,604 equity shares) allotted pursuant to the exercise of options under the
Employee Stock Option Scheme.
Also includes additional capital raised by Bank aggregating to ` 2,000 crore (rounded off) on a preferential basis through
issuance of 862,440,704 equity shares, fully paid-up, at the price of ` 23.19/- per equity share (including premium).
Schedule 1a - Employees’ Stock Options Outstanding

Employees’ stock option outstanding 974 -
TOTAL 974 -
Schedule 2 - Reserves and Surplus

(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Statutory reserves
Opening balance 8,197,951 8,197,951
Additions during the year (refer note 18.31) 1,135,000 -
Deduction during the year - -
Closing balance 9,332,951 8,197,951
II Capital reserves
Additions during the year (refer note 18.31) 1,485,000 1,660,000
III Share premium
Opening balance 118,142,291 117,949,061
Additions during the year 11,469,684 193,230
Closing balance 129,611,975 118,142,291
IV General reserve
Additions during the year (refer note 18.31) - -
V Amalgamation Reserve (2,317,951) (2,317,951)
VI Special reserve
Additions during the year (refer note 18.31) 240,000 -
170 IDFC FIRST Bank

Schedules
CORPORATE OVERVIEW
(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
VII Investment Fluctuation Reserve
Opening balance - -
Closing balance - -
VIII Investment Reserve Account (IRA)
STATUTORY REPORTS
Opening balance - -
Additions during the year 3,350,000 -
Deduction during the year (refer note 18.31) - -
Closing balance 3,350,000 -
IX Balance in Profit and Loss Account (37,289,773) (35,602,576)
TOTAL (I+II+III+IV+V+VI+VII+VIII+IX) 121,319,463 105,326,974
Schedule 3 - Deposits
(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
A I Demand deposits
(i) From banks 3,343,654 1,599,190
(ii) From others 50,812,542 40,868,300
II Savings bank deposits 404,805,164 166,929,213
III Term deposits
(i) From banks 24,490,499 19,604,899
(ii) From others 403,432,355 422,078,110
TOTAL (I+II+III) 886,884,214 651,079,712
B I Deposits of branches in India 886,884,214 651,079,712
II Deposits of branches outside India - -
TOTAL 886,884,214 651,079,712
Schedule 4 - Borrowings
(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Borrowings in India
(i) Reserve Bank of India - -
(ii) Other banks ^ 17,746,794 40,924,349
(iii) Other institutions and agencies $ 411,357,414 486,367,444
II Borrowings outside India 28,756,646 46,680,062
TOTAL (I + II) 457,860,854 573,971,855
Secured borrowings included in I and II above * 50,824,682 70,855,239
^ Borrowings from banks include long term infrastructure bonds of ` 281.50 crore (Previous Year ` 281.50 crore).
$ Borrowings from other institutions and agencies include long term infrastructure bonds of ` 9,226.80 crore (Previous Year ` 10,152.50 crore)
and Bonds under section 80CCF of the Income tax Act, 1961 of ` 855.08 crore (Previous Year ` 1,689.92 crore).
* Secured borrowings includes borrowings under Collateralised Borrowing and Lending Obligation / Triparty Repo (TREPS), market repurchase
transactions with banks & financial institutions, transactions under Liquidity Adjustment Facility and Marginal Standing Facility secured against
Government Securities.

Schedules
Schedule 5 - Other Liabilities and Provisions

(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Bills payable 9,155,950 3,831,576
II Inter-office adjustments (net) - -
III Interest accrued 25,269,754 34,887,705
IV Contingent provision against standard assets (refer note 18.19) 9,594,974 7,542,712
V Others (including provisions) 64,594,146 67,264,422
TOTAL (I + II + III + IV + V) 108,614,824 113,526,415
Schedule 6 - Cash and Balances with Reserve Bank of India

(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Cash in hand (including foreign currency notes) 5,776,109 5,033,988
II Balances with Reserve Bank of India:
(i) In current accounts 41,683,171 28,765,221
(ii) In other accounts - -
TOTAL (I + II) 47,459,280 33,799,209
Schedule 7 - Balances with Banks and Money at call and short notice
(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I In India
(i) Balance with banks
(a) In current accounts 2,631,342 1,805,098
(b) In other deposit accounts - -
(ii) Money at call and short notice
(a) With banks 4,470,000 5,250,000
(b) With other institutions 958,978 -
TOTAL 8,060,320 7,055,098
II Outside India
(i) In current accounts 398,324 189,669
(ii) In other deposit accounts - -
(iii) Money at call and short notice 2,360,629 863,875
TOTAL 2,758,953 1,053,544
GRAND TOTAL (I+II) 10,819,273 8,108,642
172 IDFC FIRST Bank

Schedules
CORPORATE OVERVIEW
Schedule 8 - Investments (Net of Provisions)
(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Investments in India in:
(i) Government securities 354,464,011 330,138,163
(ii) Other approved securities - -
(iii) Shares# 4,615,388 3,827,243
(iv) Debentures and bonds 40,919,490 50,797,993
STATUTORY REPORTS
(v) Subsidiaries and / or joint ventures 2,324,021 2,324,021
(vi) Others (venture capital funds, security receipts, PTCs etc.) 51,791,257 66,955,118
Total Investments in India 454,114,167 454,042,538
II Investments Outside India in:

(i) Government securities (including local authorities) - -
(ii) Subsidiaries and / or joint ventures abroad - -
(iii) Others (Equity Shares) 3,260 3,260
Total Investments outside India 3,260 3,260
GRAND TOTAL (I+II) 454,117,427 454,045,798
# Includes investments in associates
Schedule 9 - Advances (net of provisions)

(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
A (i) Bills purchased and discounted 17,346,701 15,650,404
(ii) Cash credits, overdrafts and loans repayable on demand 65,618,583 55,798,000
(iii) Term loans# 922,535,975 784,505,191
TOTAL 1,005,501,259 855,953,595
B (i) Secured by tangible assets * 568,100,921 516,370,564

(ii) Covered by bank / government guarantees $ 18,917,010 9,846,717
(iii) Unsecured 418,483,328 329,736,314
TOTAL 1,005,501,259 855,953,595
CI Advances in India
(i) Priority sector 272,239,206 199,738,539
(ii) Public sector 3,600,000 8,600,000
(iii) Banks 2,907,752 3,138,122
(iv) Others 726,754,301 644,476,934
TOTAL 1,005,501,259 855,953,595
C II Advances Outside India

(i) Due from banks - -
(ii) Due from others :
(a) Bills purchased and discounted - -
(b) Syndicated loans - -
(c) Others - -
TOTAL - -
GRAND TOTAL (C I+C II) 1,005,501,259 855,953,595
The above advances are net of provisions of ` 3,173.12 crore (Previous Year ` 2,153.36 crore).
# Net of borrowings under Inter Bank Participation Certificate (IBPC) Nil for current year (previous year ` 3,484.12 crores)
* Includes advances against book debts
$ Includes advances against LCs issued by banks

Schedules
Schedule 10 - Fixed Assets

(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Premises (Including Land)
Gross block
At cost at the beginning of the year 2,963,562 2,963,562
Additions during the year - -
Deductions during the year (128,015) -
TOTAL 2,835,547 2,963,562
Depreciation
As at the beginning of the year 588,914 536,833
Charge for the year 51,422 52,081
Depreciation to date 604,188 588,914
Net block of premises 2,231,359 2,374,648
II Other fixed assets (including furniture and fixtures) (refer note 18.51)
Gross block
Additions during the year 5,774,002 3,610,730
Deductions during the year (290,849) (300,257)
TOTAL 47,972,326 42,489,173
Depreciation
As at the beginning of the year 35,217,220 32,439,508
Charge for the year 3,242,329 3,002,366
Depreciation to date 38,192,162 35,217,220
Net block of other fixed assets (including furniture and fixtures) 9,780,164 7,271,953
III CAPITAL WORK-IN-PROGRESS (including capital advances) 652,707 730,664

GRAND TOTAL (I+II+III) 12,664,230 10,377,265
174 IDFC FIRST Bank

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CORPORATE OVERVIEW
Schedule 11 - Other Assets
(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Inter-office adjustments (net) - -
II Interest accrued 16,751,212 16,593,655
III Tax paid in advance / tax deducted at source (net of provisions) 5,148,607 10,522,581
IV Stationery and stamps 176 97
V Non banking assets acquired in satisfaction of claims - -
STATUTORY REPORTS
VI Others * 78,977,364 102,603,144
TOTAL ( I + II + III + IV + V + VI) 100,877,359 129,719,477
* Includes RIDF Deposit of ` 2,515.53 crore (Previous Year ` 2,736.59 crore), Deferred Tax Asset (net) of ` 1,999.45 crore (Previous Year
` 2,020.75 crore) and share issue expenses of ` 41.18 crore which shall be adjusted against securities premium to the extent permissible under
Companies Act, 2013 on the date of completion of Qualified Institutional Placement i.e. April 6, 2021.
Schedule 12 - Contingent Liabilities

(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Claims against the bank not acknowledged as debts 684,615 640,506
II Liability for partly paid investments 255,816 143,993
III Liability on account of outstanding forward exchange and derivative contracts :
(a) Forward Contracts 686,623,792 732,933,712
(b) Interest rate swaps, currency swaps, forward rate agreement and interest 1,175,398,844 1,740,855,788
rate futures
(c) Foreign currency options 19,700,180 75,460,600
Total (a+b+c) 1,881,722,816 2,549,250,100
IV Guarantees given on behalf of constituents
In India 151,181,907 165,222,583
Outside India - -
V Acceptances, endorsements and other obligations 84,122,392 89,279,212
VI Other items for which the bank is contingently liable 6,775,871 2,224,438
GRAND TOTAL (I+II+III+IV+V+VI) 2,124,743,417 2,806,760,832

Schedules
forming part of profit and loss account for the year ended March 31, 2021
Schedule 13 - Interest Earned

(` in Thousands)
March 31, 2021 March 31, 2020
I Interest / discount on advances / bills 126,329,781 120,747,996
II Income on investments 30,392,107 39,172,849
III Interest on balances with Reserve Bank of India and other inter-bank funds 1,121,667 805,243
IV Others * 1,835,040 2,349,557
TOTAL 159,678,595 163,075,645
* Includes interest on income tax refunds amounting to ` 32.99 crore (Previous Year ` 42.89 crore).
Schedule 14 - Other Income

(` in Thousands)
March 31, 2021 March 31, 2020
I Commission, exchange and brokerage 14,995,606 14,201,187
II Profit / (loss) on sale of investments (net) 5,969,578 3,904,461
III Profit / (loss) on revaluation of investments (net) - -
IV Profit / (loss) on sale of land, buildings and other assets (net) 156,565 (1,731)
V Profit / (loss) on exchange/derivative transactions (net) 1,360,828 (1,106,447)
VI Income earned by way of dividends etc. from subsidiaries / companies and / or - -
joint venture abroad / in India
VII Miscellaneous Income 54,413 224,107
TOTAL 22,536,990 17,221,577
Schedule 15 - Interest Expended

(` in Thousands)
March 31, 2021 March 31, 2020
I Interest on deposits 47,350,847 47,117,972
II Interest on borrowings from Reserve Bank of India / inter-bank borrowings 11,133,766 15,925,879
III Others 27,391,355 39,276,138
TOTAL 85,875,968 102,319,989
Schedule 16 - Operating Expenses

(` in Thousands)
March 31, 2021 March 31, 2020
I Payments to and provisions for employees 19,769,758 15,275,824
II Rent, taxes and lighting 3,237,254 2,785,191
III Printing and stationery 461,345 582,771
IV Advertisement and publicity 822,099 1,391,236
V Depreciation on bank's property 3,293,752 3,054,447
VI Directors' fees, allowance and expenses 19,806 17,197
VII Auditors' fees and expenses 40,352 35,680
VIII Law charges 377,550 73,853
IX Postage, telegrams, telephones etc. 799,850 846,885
X Repairs and maintenance 1,109,496 1,800,849
XI Insurance 902,986 536,293
XII Other expenditure 40,098,585 32,209,648
TOTAL 70,932,833 58,609,874
176 IDFC FIRST Bank

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forming part of the Financial Statements as at and for the year ended March 31, 2021
CORPORATE OVERVIEW
17 Significant accounting policies forming part Transfer of securities between categories of investments
of the financial statements for the year ended is accounted as per the RBI guidelines. However, for
March 31, 2021 disclosure in the Balance Sheet, investments in India are
classified under six categories - Government Securities,
A Background Other approved securities, Shares, Debentures and
IDFC FIRST Bank Limited (Formerly ‘IDFC Bank Limited’) Bonds, Investment in Subsidiaries / Joint Ventures and
(“the Bank”) was incorporated on October 21, 2014 as a Others.
Company under the Companies Act, 2013. Further, the
Bank commenced its banking operations on October Basis of classification and accounting :
1, 2015 after receiving universal banking license from Investments that are held principally for resale within
STATUTORY REPORTS
the Reserve Bank of India (‘the RBI’) on July 23, 2015. 90 days from the date of purchase are classified under
The Bank has 598 branches and 156 Banking Outlets HFT category. Further, as per the RBI guidelines, HFT
in India. The Bank’s shares are listed on National Stock securities, which remain unsold for a period of 90 days
Exchange of India Limited and BSE Limited. are reclassified to AFS category. Investments which
the Bank intends to hold till maturity are classified as
B Basis of preparation HTM securities. Investments which are not classified
The financial statements have been prepared based in either of the above categories are classified under
on historical cost convention and accrual basis AFS category. Investments in the equity of subsidiaries
of accounting, unless otherwise stated and are in / joint ventures are categorised as HTM in accordance
accordance with the requirements prescribed under with the RBI guidelines. Purchase and sale transactions
Section 29 and third schedule of the Banking Regulation in securities are recorded under settlement date of
Act, 1949 and in conformity with Generally Accepted accounting, except in the case of equity shares where
Accounting Principles in India to comply with the trade date accounting is followed.
statutory requirements prescribed under the circulars
and guidelines issued by the RBI from time to time Cost of acquisition :
and the Accounting Standards notified under section • Costs such as brokerage and commission
133 of the Companies Act, 2013 read together with pertaining to investments paid at the time of
Companies (Accounts) Rules, 2014 and the Companies acquisition are charged to the Profit and Loss
(Accounting Standards) Amendment Rules, 2016 to the Account.
extent applicable and practices generally prevalent in • Cost of investments is computed based on First in
the banking industry in India. First out Method for all categories of Investments
C Use of estimates including Short sales.
The preparation of financial statements in conformity • Broken period interest (the amount of interest from
with the Generally Accepted Accounting Principles the previous interest payment date till the date of
requires the Management to make estimates and purchase / sale of instrument) on debt instrument
assumptions that affects the reported amount of assets is treated as a revenue item.
and liabilities, revenues and expenses and disclosure
of contingent liabilities at the date of the financial Valuation :
statements. The management believes that the Investments classified under HTM category are carried
estimates used in preparation of financial statements at their acquisition cost and not marked to market. Any
are prudent and reasonable. Actual results could differ premium on acquisition is amortised over the remaining
from these estimates. Any revision to the accounting maturity period of the security on a straight line method
estimates is recognised prospectively in the current basis, while discount is not accreted. Such amortisation
and future periods. of premium is adjusted against interest income under
the head “Income from investments” as per the RBI
D Significant accounting policies : guidelines. Any diminution, other than temporary, in the
17.01 Investments value of investments in HTM Category is provided.
Classification :
In accordance with the RBI Guidelines on investment Investments classified under AFS and HFT categories
classification and valuation; Investments are classified are marked to market as per the extant RBI guidelines.
into following categories: Traded investments are valued based on the trades /
quotes on the recognised stock exchanges, or prices/
• Held for Trading (‘HFT’), yields declared by Primary Dealers Association of
• Available for Sale (‘AFS’) and India (‘PDAI’) jointly with Fixed Income Money Market
and Derivatives Association (‘FIMMDA’) / Financial
• Held to Maturity (‘HTM’). Benchmark India Pvt. Ltd. (‘FBIL’), periodically.

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• The market value of unquoted government Investments in subsidiaries are categorised as

securities which qualify for determining the HTM and assessed for impairment to determine
Statutory Liquidity Ratio (‘SLR’) included in the permanent diminution, if any, in accordance with the
AFS and HFT categories is computed as per the RBI guidelines. Dividend received from pre-acquisition
prices published by FIMMDA / FBIL. profits is reduced from cost of investments as per AS -
13 - Accounting for Investments.
• Special bonds such as oil bonds, DISCOM bonds,
fertilizer bonds etc. that do not qualify for SLR are Securities are valued script wise and depreciation
valued using the prices published by FIMMDA/ / appreciation is aggregated for each category. Net
FBIL by applying the appropriate mark up above depreciation, if any, compared to the acquisition cost, in
the corresponding yield on GOI securities. any of the categories, is charged to the Profit and Loss
Account. The net appreciation in each category, if any,
• The valuation of other unquoted fixed income
is not recognised except to the extent of depreciation
securities (viz. State Government securities, Other
already provided. Net depreciation required to be
approved securities, Bonds and Debentures) and
provided for in any one classification is not reduced on
preference shares, wherever linked to the YTM
account of net appreciation in any other classification.
rates, is done with a mark-up (reflecting associated
The valuation of investments includes securities under
credit and liquidity risk) over the YTM rates for
repo transactions.
government securities published by FIMMDA
/ FBIL. For Tax-free bonds, the valuation is done Non-performing investments (‘NPI’) are identified and
after grossing up the coupon in line with FIMMDA/ depreciation / provision is made thereon based on the
FBIL guidelines. RBI guidelines. The depreciation / provision against
NPI is not set off against the appreciation in respect of
• Unquoted equity shares are valued at the break-
other performing securities. Interest on non-performing
up value, if the latest balance sheet is available or
investments is recognised on cash basis.
at ` 1 as per the RBI guidelines.
As a prudent risk measure, specific provision
• Units of mutual funds are valued at the latest
against identified investments are made based on
repurchase price / net asset value (‘NAV’) declared
management’s assessment of impairment based
by the mutual fund.
on qualitative factors, subject to minimum provision
• Treasury Bills, Commercial Papers and Certificate determined under FIMMDA/FBIL valuation guidelines.
of Deposits being discounted instruments, are These provisions are netted off from carrying value of
valued at carrying cost. Accretion of discount on such investments. Further, interest on such identified
discounted Money Market Securities is computed investments is recongnised on cash basis.
on straight line method and for long term
Bonds and debentures are classified as other
discounted securities, constant YTM method is
receivables under other assets on maturity date and
used.
disclosed under Schedule - 11
• Security receipts (SR) are valued as per NAV as
Investment Fluctuation Reserve (‘IFR’) :
provided by the Reconstruction Company (‘RC’) /
The RBI has advised banks to create an Investment
Securitization Company (SC).
Fluctuation Reserve (‘IFR’) with effect from FY 2018-19.
• Units of Venture Capital Funds (‘VCF’) and Accordingly, an amount not less than the lower of net
Alternate Investment Fund (‘AIF’) held under AFS profit on sale of investments during the year or net profit
category are marked to market based on the NAV for the year less mandatory appropriations shall be
provided by VCF/AIF based on the latest audited transferred to the IFR, until the amount of IFR is at least
financial statements. In case the audited financials 2 percent of the HFT and AFS portfolio, on a continuing
are not available for a period beyond 18 months, basis. Where feasible, this should be achieved within a
the investments are valued at ` 1 per VCF/AIF. period of 3 years.
Investments in units of VCFs is classified under
Further, the Bank may, at its discretion, draw down the
HTM for an initial period of three years and valued
balance available in IFR in excess of 2 percent of its
at cost during this period, in accordance with the
HFT and AFS portfolio, for credit to the balance of profit/
RBI guidelines.
loss as disclosed in the profit and loss account at the
• Priority Sector pass through certificates (‘PTCs’) end of any accounting year. In the event the balance
are valued at book value as per FIMMDA in the IFR is less than 2 percent of the HFT and AFS
guidelines. investment portfolio, a draw down is permitted subject
to the following conditions:
178 IDFC FIRST Bank

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CORPORATE OVERVIEW
(a) The drawn down amount is used only for meeting participation is classified under advances. In the case
the minimum Common Equity Tier 1/Tier 1 capital of participation without risk, the aggregate amount of
requirements by way of appropriation to free participation issued by the Bank is classified under
reserves or reducing the balance of loss and borrowings and where the Bank is participating, the
aggregate amount of participation is shown as due
(b) The amount drawn down is not more than the extent
from banks under advances.
the MTM provisions made during the aforesaid
year exceed the net profit on sale of investments The Bank makes general provisions on all standard
during that year. advances and restructured advances based on the
rates under each category of advance as prescribed
IFR is eligible for inclusion in Tier 2 capital.
STATUTORY REPORTS
by the RBI. In addition, the Bank makes provisions for
Short sales : standard assets in telecom sector (as defined by RBI)
The Bank undertakes short sale transactions in Central and other stressed sectors, at rates higher than the
Government dated securities in accordance with the regulatory minimum, based on evaluation of risk and
RBI guidelines and these are shown under Schedule stress as per the Board approved policy. The provision
8 - Investments. The short position is marked to market on standard advances is not reckoned for arriving at
along with other securities in that category and loss, net NPAs. The provision against standard advances
if any, is charged to the Profit and Loss Account while (other than provision against identified advances) is
gain, if any, is ignored. Profit / loss on settlement of the shown separately as “Contingent Provisions against
short position are recognised in the Profit and Loss Standard Assets” under “Schedule 5 - Other Liabilities”.
Account.
In case of corporate loans, specific loan loss provisions
Repo and Reverse Repo Transaction : in respect of identified advances and non-performing
In accordance with the RBI guidelines, Repo and advances are made based on the management’s
Reverse Repo transactions in government securities assessment of the degree of impairment, subject to
and corporate debt securities, including transactions the minimum provisioning level prescribed by the RBI.
conducted under Liquidity Adjustment Facility (‘LAF’) The Bank can provide additional specific provision on
and Marginal Standby Facility (‘MSF’) with RBI are standard advances at higher than prescribed rates as
reflected as borrowing and lending transactions a prudent risk measure. These provisions are reviewed
respectively. Borrowing cost on repo transactions is and reassessed at least once in a year. Provision on /
accounted as interest expense and revenue on reverse write off of homogeneous retail loans and advances,
repo transactions are accounted as interest income. subject to minimum provisioning requirement of
the RBI, is assessed on the basis of ageing of loans
17.02 Advances
as prescribed in the Board approved policy of the
In accordance with the RBI guidelines, advances are
Bank. Provision due to diminution in the fair value of
classified as performing and non-performing. Non-
restructured / rescheduled loans and advances is made
Performing advances (‘NPA’) are further classified as
in accordance with the applicable the RBI guidelines.
Sub-Standard, Doubtful and Loss Assets in accordance
with the RBI guidelines on Income Recognition and The RBI issued guidelines on enhancing credit supply
Asset Classification (‘IRAC’). In addition, based on for Large Borrowers through Market Mechanism dated
extant environment or specific information on risk of August 25, 2016 which are applicable to exposure
possible slippages or current pattern of servicing, the on all single counterparties of the Bank. The bank’s
Bank makes provision on specific advances which incremental exposures from FY 2018-19 onwards to
are classified as standard advances as these are not the specified borrowers exceeding the Net Permitted
non-performing advances (‘identified advances’). Lending Limits (‘NPLL’) will attract prudential measures.
Advances are stated net of provisions against NPA, Incremental Exposure of the Banking System to a
specific provisions against identified advances, specified borrower beyond NPLL shall be deemed to
provisions for non-performing funded interest term loan carry higher risk which shall be recognized by way of
and provisions in lieu of diminution in the fair value of additional standard asset provisioning and higher risk
restructured asset. weights.
The Bank may transfer advances through inter-bank In accordance with the RBI guidelines relating Large
participation with and without risk. In accordance with Exposures Framework – Increase in Exposure to
the RBI guidelines, in the case of participation with a Group of Connected Counterparties dated May
risk, the aggregate amount of the participation issued 23, 2020, banks exposure to a group of connected
by the Bank is reduced from advances and where the counterparties has been increased from 25% to 30% of
Bank is participating, the aggregate amount of the the eligible capital base with a view to facilitate greater

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flow of resources to corporates under COVID-19 as on March 1, 2020, the Bank may at its discretion
pandemic till Jun 30, 2021. extend such timeline for resolution by 180 days from
the date on which the 180-day period was originally set
In the event of substantial erosion in value of loan and
to expire, on case by case basis.
remote possibility of collection, non performing loans
with adequate provisions are evaluated for technical COVID-19 – Regulatory Package
/ prudential write off based on Bank’s policy and the In accordance with the RBI guidelines on ‘COVID-19
RBI guidelines. Such write off does not have an impact Regulatory Package’ of March 27, 2020, April 17, 2020
on the Bank’s legal claim against the borrower. The and May 23, 2020, the Bank granted moratorium on
Bank may also write off non performing loans on one repayment of instalments and / or interest, as applicable,
time settlement (‘OTS’) with the borrower or otherwise. due between March 1, 2020 and August 31, 2020 to
Amounts recovered from borrowers against debts all eligible borrowers. For all eligible accounts, where
written off is recognised in the Profit and Loss Account the moratorium is granted, the asset classification shall
under “Provisions and contingencies”. remain stand still during the moratorium period (i.e. the
number of days past-due shall exclude the moratorium
Further, the RBI has issued guidelines on “Prudential
period for the purposes of asset classification under
Framework for Resolution of Stressed Assets dated
the Income Recognition, Asset Classification and
June 07, 2019” with a view to providing a framework for
Provisioning norms).
early recognition, reporting and time bound resolution
of stressed assets. The Bank has put in place Board- The Bank made general provision in terms of the RBI
approved policy for resolution of distressed borrowers circular dated April 17, 2020. These provisions are
with an objective to initiate the process of resolution adjusted against the actual provisioning requirements
even before a default and prior to the initiation of for slippages from the accounts reckoned for such
proceedings under the IBC. provisions. The residual provisions at the end of the
financial year are written back or adjusted against the
The Bank is required to make an additional provisioning
provisions required for all other accounts.”
for the delayed implementation of Resolution Plan (RP)
as under: In accordance with Resolution Framework for COVID-19
announced by the RBI on August 6, 2020, the Bank
(a) Additional provision of 20% of total outstandings if
has implemented a one-time restructuring for certain
RP is implemented beyond 180 days from the end
eligible borrowers and such borrowers are classified
of the review period
as Standard Restructured in accordance with this
(b) Additional provision of 35% of total outstandings if framework. On successful implementation of resolution
RP is implemented beyond 360 days from the end plan under this framework, the Bank is required to
of the review period maintain provisions which should be higher of 10% of
the restructured debt or provisions required under IRAC
The additional provisions shall be made over and above
norms before the implementation of the Resolution Plan.
the higher of the following, subject to the total provisions
held being capped at 100% of total outstanding: Unhedged Foreign Currency Exposure
Provision for Unhedged Foreign Currency Exposure
(a) The provisions already held; or,
of borrowers is made as per the RBI guidelines and
(b) The provisions required to be made as per IRAC disclosed under Contingent Provision against Standard
norms Assets. In addition to the provisions required to be held
according to the asset classification status, provisions
In accordance with the RBI guidelines relating to are held for individual country exposure (other than
COVID-19 Regulatory Package dated April 17, 2020 for home country as per the RBI guidelines). The
and May 23 , 2020, it has been decided that in respect countries are categorised into seven risk categories as
of accounts which were within the Review Period as mentioned in the ECGC guidelines namely insignificant,
on March 1, 2020, the period from March 1, 2020 to low, moderate, high, very high, restricted and off-credit
August 31, 2020 shall be excluded from the calculation and provision is made on exposures exceeding 180
of the 30-day timeline for the Review Period. In respect days on a graded scale ranging from 0.25% to 100%.
of all such accounts, the residual Review Period shall For exposures with contractual maturity of less than 180
resume from September 1, 2020, upon expiry of which days, 25% of the normal provision requirement is held.
the lenders shall have the usual 180 days for resolution. If the funded exposure (net) of the Bank in respect of
In respect of accounts where the Review Period was each country does not exceed 1% of the total assets,
over, but the 180-day resolution period had not expired no provision is maintained on such country exposure.
180 IDFC FIRST Bank

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CORPORATE OVERVIEW
17.03 Revenue recognition Fees and charges :
Interest income : Loan originating fees, when it becomes due, is
Interest Income is recognised on accrual basis in the recognised upfront as income. Arrangership /
Profit and Loss Account, except in the case of Non- syndication fee is accounted on completion of
Performing Assets (‘NPAs’) and identified advances, the agreed service and when right to receive is
where it is recognised upon realisation. The unrealised established. Fee and commission income is recognised
interest, fees and charges booked in respect of NPAs as income when due and reasonable right of recovery
and identified advances and any other facility given to is established and can be reliably measured.
the same borrower is reversed to the Profit and Loss
Commission received on guarantees and letter of
and subsequent interest income is accounted into
STATUTORY REPORTS
credit issued is recognised on straight line basis
interest suspense.
over the period of the contract or the period for which
In accordance with the instructions in the RBI Circular commission is received.
on Refund / adjustment of ‘interest on interest’ dated
Fee on rescheduling of outstanding debt is recognised
April 07, 2021, the Bank shall refund / adjust ‘interest
on accrual basis over the period of time covered by the
on interest’ to all borrowers including those who
rescheduled extension period.
had availed of working capital facilities during the
moratorium period, irrespective of whether moratorium Underwriting commission earned to the extent not
had been fully or partially availed, or not availed. As reduced from the cost of the securities is recognised
required by the RBI notification, the methodology for as fees on closure of issue.
calculation of such interest on interest has recently
All other fees and charges is recognised as and when
been circulated by the Indian Banks’ Association. The
they become due and revenue can be reliably measured
Bank is in process of implementing this circular. As at
and reasonable right of recovery is established.
March 31, 2021, the Bank has created a liability towards
estimated interest relief and reduced the same from the Investments :
interest income. Profit / loss on sale of investments under the HTM, AFS
and HFT categories are recognised in the Profit and
The unrealized interest represented by Funded Interest
Loss Account. The profit from sale of investment under
Term Loan (‘FITL’) is reversed in Profit & Loss Account
HTM category, is appropriated from Profit and Loss
with the corresponding credit in Sundry Liabilities
Account to “Capital Reserve” (net of applicable taxes
Account- Interest Capitalization account. Interest
and transfer to Statutory Reserve) in accordance with
income is booked in Profit & Loss account upon
the RBI guidelines.
realization, by debiting the sundry liabilities account.
Exchange gain or loss arising on account of revaluation
Subvention income on loans is recognised as income
of monetary assets and liabilities is recognised in the
over the tenor of the loan agreements. The unamortized
Profit and Loss Account as per the revaluation rates
balance is disclosed as part of other liabilities. On
published by Foreign Exchange Dealers’ Association of
foreclosure, balance unamortised subvention income
India (‘FEDAI’).
is recognised in the Profit and Loss Account. Income
on retained interest in the assigned asset, if any, is Other operating income :
accounted on accrual basis except in case of NPAs Securitisation transactions :
wherein interest income is recognised on receipt basis Net income arising on account of sale of standard asset,
as per RBI guidelines. being the difference between the sale consideration
and book value, is amortised over the life of the
Interest Income on coupon bearing securities is
securities issued by the Special Purpose Vehicle (SPV).
recognised over the tenure of the instrument on a
Any loss arising on account of sale is recognised in the
straight line method and on non-coupon bearing
Profit and Loss Account in the year in which the sale
securities over the tenure on yield basis. Any premium
occurs.
on acquisition of securities held under HTM category
is amortised over the remaining maturity period of the In case of Non-Performing Assets sold to Securitisation
security on a straight line method basis. Company (‘SC’) / Reconstruction Company (‘RC’)
for cash, excess provision is reversed to Profit and
Dividend on equity shares, preference shares and on
Loss Account. Any loss arising on account of sale is
mutual fund units is recognised as income when the
recognised in the Profit and Loss Account in the year
right to receive the dividend is established.
in which the sale occurs. If sale is against issuance of

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SRs by SC / RC, the sale will be recognised at lower of by FEDAI are revalued at the forward exchange rates
redemption value of SRs and net book value of financial implied by the swap curves in respective currencies.
asset sold. On realisation, the proceeds are reduced The resultant gains or losses are recognized in the
against the carrying value of SRs and surplus, if any, is Profit and Loss Account.
recognised in the Profit and Loss Account.
Contingent liabilities on account of forward exchange
With effect from April 1, 2018 investments in SRs by and derivative contracts, guarantees, acceptances,
more than 10 percent of the SRs backed by the assets endorsements and other obligations denominated in
sold and issued under the scheme of securitization, foreign currencies are disclosed at closing rates of
provisioning requirement on SRs will be higher of exchange notified by FEDAI.
provisioning rate required in terms of net asset value
17.06 Accounting for derivative transactions
declared by the SCs/RCs or provisioning rate as
Derivative transactions comprises of forward contracts,
applicable to the underlying loans, assuming that the
futures, swaps and options. The Bank undertakes
loans notionally continued in the books.
derivative transactions for trading and hedging
Direct Assignments : on-balance sheet assets and liabilities. All trading
Profit / premium arising on account of sale of transactions are marked to market and resultant gain or
standard asset, being the difference between the sale loss is recognized in the Profit and Loss Account.
consideration and book value, is amortised over the
For hedge transactions, the Bank identifies the hedged
residual life of the loan. Any loss arising on account of
item (asset or liability) and assesses the effectiveness
sale is recognised in the Profit and Loss Account in the
at inception as well as at each reporting date. Funding
year in which the sale occurs. In case of gain on sale of
swaps are accounted in accordance with FEDAI
non-performing assets, the excess provision shall not
guidelines. The Hedge swaps and funding swaps
be reversed but will be utilised to meet the shortfall /
are accounted on accrual basis except the swap
loss on account of sale of other non-performing financial
designated with an asset or liability that is carried at
assets and shortfall if any is charged to the Profit and
lower of cost or market value in the financial statements.
Loss Account.
In such cases swaps are marked to market with the
17.04 Priority Sector Lending Certificates (‘PSLCs’) resulting gain or loss recorded as an adjustment to
The bank may enter into transactions for the purchase the market value of designated asset or liability. Any
or sale of Priority Sector Lending Certificates (‘PSLCs’). resultant profit or loss on termination of hedge swaps is
In case of a purchase transaction the bank buys the amortized over the life of the swap or underlying liability
fulfilment of priority sector obligation and in case of a whichever is shorter. Upon ineffectiveness of hedge on
sale transaction, the bank sells the fulfilment of priority re-assessment or termination of underlying, the Bank
sector obligation through the RBI trading platform designates the derivative as trade.
without any transfer of underlying risk or loan assets.
Premium / discount on currency swaps undertaken
Fees paid for purchase of the PSLCs is recorded as
to hedge foreign currency assets and liabilities and
‘Other Expenditure’ and fees received for the sale of
funding swaps is recognized as interest income /
PSLCs is recorded as ‘Miscellaneous Income’ in Profit
expense on accrual basis and is amortized on a pro-
and Loss Account. These are amortised on straight-line
rata basis over the underlying swap period.
basis over the tenor of the certificate.
Premium in option transaction is recognized as
17.05 Transactions involving foreign exchange
income / expense on expiry or early termination of
Foreign currency income and expenditure items of
the transaction. Mark to market gain / loss (adjusted
domestic operations are translated at the exchange
for premium received / paid on options contracts) is
rates prevailing on the date of the transaction. Monetary
recorded as other income. The amounts received /
foreign currency assets and liabilities of domestic and
paid on cancellation of option contracts are recognized
integral foreign operations are translated at closing
as realized gain / loss on options. Pursuant to the RBI
exchange rates notified by FEDAI relevant to the balance
guidelines, any receivables under derivative contracts
sheet date. The resulting gain or loss on revaluation are
which remain overdue for more than 90 days and mark-
included in the Profit and Loss Account in accordance
to-market gains on all derivative contracts with the
with the RBI / FEDAI guidelines. All outstanding
same counter-parties are reversed in Profit and Loss
forward exchange contracts are revalued based on
Account.
the exchange rates notified by FEDAI for specified
maturities and at interpolated rates for contracts of Currency futures contracts are marked-to-market using
interim maturities. The forward exchange contracts of daily settlement price on a trading day, which is the
longer maturities where exchange rates are not notified closing price of the respective futures contracts on that
182 IDFC FIRST Bank

Schedules
CORPORATE OVERVIEW
day. All open positions are marked to market based Asset Estimated Useful Life
on the settlement price and the resultant marked to
Building – RCC Frame 60 Years
market profit/loss settled with the exchange. Charges
Building – Other than RCC Frame 30 Years
receivable / payable on cancellation / termination of
Computers – Desktops, Laptops, 3 Years
foreign exchange forward contracts is recognized
End User Devices
as income / expense on the date of cancellation /
Computers – Server & Network 6 Years
termination under ‘Other Income’.
Vehicles 4 Years
Valuation of Exchange Traded Currency Options Furniture 10 Years
(‘ETCO’) is carried out on the basis of the daily Office Equipment 5 Years
STATUTORY REPORTS
settlement price of each individual option provided by Over the extended
the exchange and valuation of Interest Rate Futures Leasehold Improvements
period of lease
(‘IRF’) is carried out on the basis of the daily settlement Others (including software and 5 years
price of each contract provided by the exchange. system development)
As per the RBI guidelines on ‘Prudential Norms for Off Fixed assets individually costing less than ` 5,000 are
Balance Sheet Exposures of Banks’ a general provision fully depreciated in the year of installation.
is made on the current gross MTM gain of the contract Depreciation on assets sold during the year is recognized
for all outstanding interest rate and foreign exchange on a pro-rata basis to the Profit and Loss Account till the
derivative transactions. For provisioning purpose, date of sale. Profit on sale of premises net of taxes and
the exposure for all the counterparties except CSA / transfer to statutory reserve is appropriated to Capital
Qualified Central Counter Party (‘QCCP’) are calculated
Reserve as per the RBI guidelines.
at deal level, i.e. Gross Positive MTM after netting of
margin to the extent of Positive MTM. The exposure 17.08 Income tax
reckoned for standard provisioning on CSA / QCCP is Income tax expense is the aggregate amount of current
calculated at counterparty level i.e. Net Positive MTM tax and deferred tax charge. The current tax expense
adjusted for margin, if any. and deferred tax expense is determined in accordance
with the provisions of the Income Tax Act, 1961 and as
The RBI has released amendments to prudential per Accounting Standard 22 - Accounting for Taxes on
guidelines on bilateral netting of Qualified Financial Income respectively.
Contracts (QFC) on March 30, 2021 permitting taking
benefit of netting agreement in computation of exposure Deferred income taxes reflects the impact of current
with immediate effect. The Bank shall work towards year timing differences between taxable income and
implementation of the revised guidelines. accounting income for the year and reversal of timing
differences of earlier years. Deferred tax assets and
17.07 Fixed assets and depreciation liabilities are measured using tax rates and tax laws
Fixed assets are carried at cost of acquisition less that have been enacted or substantively enacted at the
accumulated depreciation and impairment, if any. Cost Balance Sheet date.
includes freight, duties, taxes and incidental expenses
related to the acquisition and installation of the asset. Current tax assets and liabilities and deferred tax
assets and liabilities are off-set when they relate to
The management believes that the useful life of assets income taxes levied by the same taxation authority,
assessed by the Bank, pursuant to the Companies Act, when the Bank has a legal right to off-set and when the
2013, taking into account changes in environment, Bank intends to settle on a net basis.
changes in technology, the utility and efficacy of the
asset in use, fairly reflects its estimate of useful lives of Deferred tax assets are recognized only to the extent
the fixed assets. there is reasonable certainty that the assets can
be realized in future. In case of history of tax losses,
Capital work-in-progress includes cost of fixed assets deferred tax assets on unabsorbed depreciation or
that are not ready for their intended use and also carried forward loss under taxation laws are recognized
include advances paid to acquire fixed assets. only if there is virtual certainty of realization of such
Depreciation is charged over the estimated useful life assets. Deferred tax assets are reviewed at each
of a fixed asset on a straight-line basis. The rates of balance sheet date and appropriately adjusted to
depreciation for fixed assets, which are not lower than reflect the amount that is reasonably / virtually certain to
the rates prescribed in Part C of Schedule II of the be realized. The impact of changes in the deferred tax
Companies Act, 2013, are given below : assets / liabilities is recognised in the Profit and Loss
Account.

Schedules
17.09 Employees’ stock option scheme the expected benefits to be derived by the Bank from
The Bank has formulated Employees’ Stock Option a contract are lower than the unavoidable costs of
Scheme - IDFC FIRST Bank Limited ESOS -2015 (‘the meeting the future obligations under the contract. The
Scheme’) in accordance with the SEBI (Employee provision is measured at the present value of the lower
Stock Option Scheme and Employee Stock Purchase of the expected cost of terminating the contract and
Scheme) Guidelines, 1999. The scheme provides for the expected net cost of continuing with the contract.
the grant of options to acquire equity shares of the Bank Before a provision is established, the Bank recognises
to its employees. The options granted to employees any impairment loss on the assets associated with that
vest in a graded manner and these may be exercised contract.
by the employees within a specified period.
A disclosure of contingent liability is made when there
The Bank follows the intrinsic value method to account is :
for its stock-based employee compensation plans.
• a possible obligation arising from a past event, the
Compensation cost is measured by the excess, if
existence of which will be confirmed by occurrence
any, of the market price of the underlying stock over
or non-occurrence of one or more uncertain future
the grant price as determined under the option plan.
events not within the control of the Bank; or
Compensation cost, if any is amortized over the vesting
period on a straight line method. In case the vested • a present obligation arising from a past event
stock options expire unexercised, the balance in which is not recognised as it is not probable that
stock options outstanding is transferred to the general an outflow of resources will be required to settle
reserve. In case the unvested stock options get lapsed the obligation or a reliable estimate of the amount
/ cancelled, the balance in stock option outstanding of the obligation cannot be made.
account is transferred to the Profit and Loss Account.
When there is a possible obligation or a present
17.10 Employee benefits obligation in respect of which the likelihood of outflow
Defined contribution plan : of resources is remote, no provision or disclosure is
The contribution to provident fund, superannuation fund made.
and pension fund are considered as defined plans and
Contingent assets are not recognised in the financial
are charged to the Profit and Loss Account as they fall
statements. However, contingent assets are assessed
due, based on the amount of contribution required to
continually and if it is virtually certain that an inflow
be made and when services are rendered.
of economic benefits will arise, the asset and related
Defined benefit plan : income are recognised in the period in which the
The net present value of obligations towards gratuity to change occurs.
employees is actuarially determined as at the Balance
17.12 Earnings per share
Sheet based on the projected unit credit method.
The Bank reports basic and diluted earnings per
Actuarial gains and losses are recognised in the Profit
share in accordance with AS-20, Earnings per Share,
and Loss Account for the year.
as notified under Section 133 of the Companies Act,
Compensated absences : 2013 read together with paragraph 7 of the Companies
Any unavailed privilege leave to the extent encashable (Accounts) Rules, 2014 and the Companies (Accounting
is paid to the employees and charged to the Profit Standards) Amendment Rules, 2016. Basic earnings
and Loss Account for the year based on estimates of per share are computed by dividing the net profit after
availment / encashment of leaves. tax by the weighted average number of equity shares
outstanding for the year.
17.11 Provisions, contingent liabilities and
contingent assets Diluted earnings per share reflect the potential dilution
A provision is recognised when the Bank has a present that could occur if securities or other contracts to issue
obligation as a result of past event where it is probable equity shares were exercised or converted during the
that an outflow of resources will be required to settle the year. Diluted earnings per equity share is computed
obligation, in respect of which a reliable estimate can by dividing net profit after tax attributable to equity
be made. Provisions are not discounted to its present shareholders by the weighted average number of
value and are determined based on best estimate equity shares and weighted average number of dilutive
required to settle the obligation at the Balance Sheet potential equity shares outstanding during the year,
date. These are reviewed at each Balance Sheet date except where the results are anti-dilutive.
and adjusted to reflect the current best estimates.
17.13 Leases
Provisions for onerous contracts are recognised when Leases where the lessor effectively retains substantially
184 IDFC FIRST Bank

Schedules
CORPORATE OVERVIEW
all the risks and benefits of ownership over the lease at by discounting the future cash flows to their present
term are classified as operating lease. Amount due value, based on an appropriate discounting factor.
under the operating leases, including cost escalation, If at the Balance Sheet date, there is an indication
are charged on a straight line method over the lease that previously recognised impairment loss no longer
term in the Profit and Loss account. Initial direct exists, the recoverable amount is reassessed and the
cost incurred specifically for operating leases are asset is reflected at the recoverable amount, subject
recognised as expense in the Profit and Loss Account to a maximum of the depreciable historical cost and
in the year in which they are incurred. reversal of such impairment loss is recognised in the
Profit and Loss Account, except in case of revalued
17.14 Reward Points
assets.
STATUTORY REPORTS
The Bank may grant reward points in respect of certain
debit / credit cards. Presently, the Bank is offering 17.18 Fraud Provisioning
reward points only on credit cards. The Bank makes As per the RBI guidelines, in case of frauds due to the
provisions for reward points in credit cards basis Bank or for which the Bank is liable, provision needs
outstanding redemption points after considering the to be immediately recognised in Profit and Loss
conversion ratio. Account. However, the banks have an option to make
provisions over a period, not exceeding four quarters,
17.15 Securities issue expenses
commencing from the quarter in which the fraud has
Securities issue expenses are adjusted from Securities
been detected.
Premium Account in terms of Section 52 of the
Companies Act, 2013. 17.19 Cash and cash equivalents
Cash and cash equivalents include cash in hand,
17.16 Segment reporting
balances with the RBI, balances with other banks and
As per the RBI guidelines, business segments are
money at call and short notice.
divided under a) Treasury b) Corporate and wholesale
banking c) Retail Banking and d) Other Banking 17.20 Corporate social responsibility
Business. Business segments have been identified and Spends towards corporate social responsibility, in
reported considering the target customer segment, the accordance with Companies Act, 2013, are recognised
nature of products, internal business reporting system, in the Profit and Loss Account.
transfer pricing policy approved by Asset Liability
17.21 Accounting for Dividend
Committee (ALCO), the guidelines prescribed by the
As per AS-4 ‘Contingencies and Events occurring after
RBI.
the Balance sheet date’ as notified by the Ministry of
17.17 Impairment of assets Corporate Affairs through amendments to Companies
The carrying amount of the assets at each Balance (Accounting Standards) Amendment Rules, 2016,
Sheet date is reviewed for impairment. If any indication dated 30 March, 2016, the Bank does not account for
of impairment based on internal / external factors proposed dividend (including tax) as a liability through
exists, the recoverable amount of such assets is appropriation from the profit and loss account. The
estimated and impairment is recognised wherever the same is recognised in the year of actual payout post
carrying amount of an asset exceeds its recoverable approval of shareholders. However, the Bank reckons
amount. The recoverable amount is the greater of the proposed dividend in determining capital funds in
net selling price and its value in use, which is arrived computing the capital adequacy ratio.

Notes
18 Notes forming part of the Financial Statements the RBI, which was valid till December 31, 2019, to
as at and for the year ended March 31, 2021 grandfather certain loan accounts which were given
by the erstwhile Capital First Limited as a Non Banking
Amounts in notes forming part of the financial statements Financial Company (NBFC). In this regard, the RBI
for the year ended March 31, 2021 are denominated in vide letter dated March 4, 2021, having not acceded to
` crore to conform with the extant RBI guidelines. the dispensation, had advised the Bank to hold 100%
18.01 provisions in respect of non-compliant non-performing
IDFC FIRST Bank Limited (Formerly ‘IDFC Bank loans. Further, for other non-compliant standard loans
Limited’) (“the Bank”) was incorporated on October 21, with insignificant outstanding balance, the Bank is
2014 as a Company under the Companies Act, 2013. required to assign additional risk weight of 25% and
Further, the Bank commenced its banking operations make such loan accounts compliant with the extant
on October 1, 2015 after receiving universal banking regulatory instructions by June 30, 2021. The Bank has
license from the Reserve Bank of India (‘the RBI’) on made additional provision of ` 89.34 crore for the year
July 23, 2015. ended March 31, 2021 for such non-compliant non-
performing loans and assigned additional risk weight
The Bank had sought for renewal of dispensation from of 25% on other non-compliant standard loans.
18.02 Capital adequacy
The capital adequacy ratio of the Bank, calculated as per the RBI guidelines (under Basel III) is set out below :
(` in crore)
Particulars March 31, 2021 March 31, 2020

Tier I capital 16,974.38 14,690.12
of which common equity tier I capital 16,974.38 14,690.12
Tier II capital 647.15 89.93
Total capital 17,621.53 14,780.05
Total Risk Weighted Assets 127,943.29 110,481.46
Common equity Tier I capital ratio (%) 13.27% 13.30%
Tier I capital ratio (%) 13.27% 13.30%
Tier II capital ratio (%) 0.50% 0.08%
Total capital ratio (CRAR) (%) 13.77% 13.38%
Percentage of the shareholding of the Government of India 4.61% 5.43%
Amount of equity capital raised* 2,000.00 -
Amount of additional Tier I capital raised; of which
Perpetual non cumulative preference shares - -
Perpetual debt instruments - -
Amount of Tier II capital raised; of which
Debt capital instrument - -
Preference share capital instruments - -
* The Bank raised additional capital aggregating to ` 2,000 crore (rounded off) on a preferential basis through issuance of 862,440,704
equity shares, fully paid-up, at the price of ` 23.19/- per equity share (including premium).
The Capital Raising Committee of the Board of Directors of the Bank at its meeting held on April 6, 2021, approved the issue and allotment
of 523,103,660 equity shares of face value of ` 10 each to qualified institutional buyers at an issue price of ` 57.35 per equity share
(including a premium of ` 47.35 per equity share), aggregating to ` 3,000 crore (rounded off), pursuant to the Issue.
186 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
18.03 Business ratios / information
(` in crore)

Interest income as a percentage to working funds $ 9.79% 9.56%
Non-interest income as a percentage to working funds $ 1.38% 1.01%
Operating profit as a percentage to working funds $ & 1.56% 1.14%
Return on assets @ 0.28% (1.79%)
Business per employee # ^ (` in crore) 7.68 9.59
Net Profit/(loss) per employee ^ (` in crore) 0.02 (0.18)
STATUTORY REPORTS
$ Working funds represents average of total assets as reported to Reserve Bank of India in Form X under Section 27 of the Banking
Regulation Act, 1949, during the 12 months of the financial year.
@ Return on assets is based on the simple average of opening and closing total assets excluding accumulated losses if any.
# Business is the total of average net advances and average deposits (net of inter-bank deposits). The average advances and the average
deposits represents the simple average of the opening and closing figures.
^ Productivity ratios are based on monthly average of employee numbers, which excludes contract staff, intern etc.
& Operating profit is profit before provisions and contingencies.
18.04 Investments
I Value of investments :
(` in crore)

i. Gross value of investments
a. In India 47,454.41 48,267.63
b. Outside India 0.33 0.33
ii Provisions for depreciation
a. In India (2,042.99) (2,863.38)
b. Outside India - -
iii Net value of investments
a. In India 45,411.42 45,404.25
b. Outside India 0.33 0.33
II Movement of provisions held towards depreciation on investments (including provision towards non-performing
investments classified under schedule-8 and specific provision against identified investments)
(` in crore)

Opening balance 2,863.38 1,811.89
Add: Provisions made during the year 318.27 2,314.39
Less: Write-back of provisions during the year (1,138.66) (1,262.90)
Closing balance 2,042.99 2,863.38

Notes
18.05 Repo transactions

Following are the details of securities sold and purchased under repo / reverse repo transactions (in face value terms)
respectively including transactions under Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) done
during the years ended March 31, 2021 and March 31, 2020 :
Year ended March 31, 2021
(` in crore)
Minimum Maximum Daily Average
Outstanding as on
Particulars outstanding during outstanding during outstanding during
March 31, 2021
the year the year the year
Securities sold under repo
i Government securities 184.20 7,671.51 1,939.54 309.70
ii Corporate debt securities - - - -
Securities purchased under reverse repo
(` in crore)
Minimum Maximum Daily Average
Outstanding as on
Particulars outstanding during outstanding during outstanding during
March 31, 2020
the year the year the year
Securities sold under repo
Securities purchased under reverse repo
18.06 Non-SLR investment portfolio
i Issuer composition of non SLR investments as at March 31, 2021 * :
(` in crore)
Extent of "below Extent of Extent of
Extent of private
No Issuer Total Amount investment grade" "unrated" "unlisted"
placement
securities securities^ securities
(1) (2) (3) (4) (5) (6) (7)
i Public sector undertakings ß - - - ß
ii Financial institutions 1,043.16 848.18 - - 87.22
iii Banks 1,102.25 1,002.25 - - -
iv Private corporates 3,997.90 3,997.90 2,225.00 - 1,380.59
v Subsidiaries / joint ventures 232.40 232.40 - - 232.40
vi Others 5,589.49 5,589.49 141.59 - 5,589.49
Provision held towards (1,999.86) - - - -
vii
depreciation
Total 9,965.34 11,670.22 2,366.59 - 7,289.71
Amounts reported under columns (4), (5), (6) and (7) above are not mutually exclusive.
* excludes investment in excess SLR government securities of ` 5,904.67 crore .
^ Excludes investments in equity shares, units of equity oriented mutual funds / venture capital funds and Security Receipts
188 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
Issuer composition of non SLR investments as at March 31, 2020 $ :
(` in crore)
Extent of "below Extent of Extent of
Extent of private
No Issuer Total Amount investment grade" "unrated" "unlisted"
placement
securities securities^ securities
(1) (2) (3) (4) (5) (6) (7)
i Public sector undertakings 142.74 0.88 - - ß
ii Financial institutions 3,036.17 2,074.81 295.96 - 92.22
iii Banks 756.61 756.61 - - 27.36
STATUTORY REPORTS
iv Private corporates 3,969.63 3,969.63 2,100.00 - 1,235.72
v Subsidiaries / joint ventures 232.40 232.40 - - 232.40
vi Others 7,116.59 7,116.59 - - 7,116.59
Provision held towards (2,863.38)
vii
depreciation
Total 12,390.76 14,150.92 2,395.96 - 8,704.29
Amounts reported under columns (4), (5), (6) and (7) above are not mutually exclusive.
$ excludes investment in excess SLR government securities of ` 7,188.62 crore .
^ Excludes investments in equity shares, units of equity oriented mutual funds / venture capital funds and Security Receipts
ii Non performing Non-SLR investments :
(` in crore)

(a) Opening balance of Non performing Non-SLR investments 1,646.14 1,290.34
Additions during the year 213.36 407.33
Reductions during the year (379.55) (51.53)
Closing balance of Non performing Non-SLR investments 1,479.95 1,646.14
(b) Opening Provision on Non performing Non-SLR investments 1,523.02 1,290.34
Reductions during the year (338.48) (52.73)
Closing Provision on Non performing Non-SLR investments 1,364.59 1,523.02
Opening balance of Non performing Non-SLR investments 451.73 -
(c)
(Under ‘Schedule 11 - Other Assets’)
Reductions during the year (451.73) -
Closing balance of Non performing Non-SLR investments (Under 215.00 451.73
'Schedule 11 - Other Assets')
Opening provision on Non performing Non-SLR investments 338.80 -
(d)
(Under ‘Schedule 11 - Other Assets’)
Reductions during the year (338.80) -
Closing provision on Non performing Non-SLR investments (Under 215.00 338.80
'Schedule 11 - Other Assets')
18.07
During the years ended March 31, 2021 and March 31, 2020, the value of sales / transfers of securities to / from
HTM category (excluding one-time transfer of securities permitted to be undertaken by banks at the beginning of the
accounting year and with approval of the Board of Directors and sales to the RBI under open market operation auctions
and redemptions in units of Venture Capital Funds as these are not initiated by the Bank) did not exceed 5% of the book
value of investments held in HTM category at the beginning of the year.

Notes
(` in crore)

Market value of investments held in HTM category N.A. N.A.
Excess of book value over market value for which provision is not made N.A. N.A.
18.08 Forward rate agreement (FRA) / interest rate swap (IRS)
(` in crore)

i The notional principal of swap agreements 109,697.01 165,940.28
Losses which would be incurred if counterparties failed to fulfil their 867.48 1,693.46
ii
obligations under the agreements
iii Collateral required by the bank upon entering into swaps - -
iv Concentration of credit risk arising from the swaps * 53.82% 53.95%
v The fair value of the swap book (Net MTM) (72.00) (246.83)
* Concentration of credit risk basis CEM arising from swaps with Banks & Financial Institutions as at March 31, 2021 & March 31, 2020
The nature and terms of the IRS as on March 31, 2021 are set out below :
(` in crore)
Nature No. of deals Notional principal Benchmark Terms

Trading 792 46,304.68 INROIS Pay Fixed/Receive Floating
Trading 474 20,800.83 INROIS Pay Floating/Receive Fixed
Trading 107 13,494.53 USD LIBOR Pay Fixed/Receive Floating
Trading 66 13,121.89 USD LIBOR Pay Floating/Receive Fixed
Trading 10 6,899.48 USD LIBOR Pay Floating/Receive Floating
Trading 1 30.01 EURIBOR Pay Fixed/Receive Floating
Trading 1 30.01 EURIBOR Pay Floating/Receive Fixed
Trading 54 4,405.00 INRMIFOR Pay Fixed/Receive Floating
Trading 93 4,062.25 INRMIFOR Pay Floating/Receive Fixed
Banking 1 548.33 USD LIBOR Pay Fixed/Receive Floating
Total 1,599 109,697.01
The nature and terms of the IRS as on March 31, 2020 are set out below :
(` in crore)
Nature No. of deals Notional principal Benchmark Terms

Trading 1,186 51,024.75 INROIS Pay Fixed/Receive Floating
Trading 1,047 64,833.34 INROIS Pay Floating/Receive Fixed
Trading 121 17,950.45 USD LIBOR Pay Fixed/Receive Floating
Trading 88 24,052.58 USD LIBOR Pay Floating/Receive Fixed
Trading 1 43.45 EURIBOR Pay Fixed/Receive Floating
Trading 1 43.45 EURIBOR Pay Floating/Receive Fixed
Trading 82 3,687.25 INRMIFOR Pay Floating/Receive Fixed
Trading 53 4,305.00 INRMIFOR Pay Fixed/Receive Floating
Total 2,579 165,940.28
190 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
18.09 Exchange traded interest rate derivatives
(` in crore)

Notional principal amount of exchange traded interest rate derivatives under- - 10.38
i
taken during the year
7.26% GOI 2029 - 10.38
Notional principal amount of exchange traded interest rate derivatives - -
ii
outstanding.
Notional principal amount of exchange traded interest rate derivatives - -
iii
STATUTORY REPORTS
outstanding and not “highly effective”
Mark-to-market value of exchange traded interest rate derivatives outstand- - -
iv
ing and not “highly effective”
18.10 Disclosures on risk exposure in derivatives
Qualitative disclosures :
a. Structure and organisation for management of risk in derivatives trading, the scope and nature of risk measurement,
risk reporting and risk monitoring systems, policies for hedging and / or mitigating risk and strategies and processes
for monitoring the continuing effectiveness of hedges / mitigants :
i The Bank undertakes transactions in FX and derivatives for the purpose of hedging the Balance Sheet, support
customer FX and Derivatives hedging / business requirements and takes proprietary positions. Bank deals in
various kinds of products viz. FX spot and forwards, INR and CCY Swaps and Foreign currency options. The
Bank undertakes trading positions FX Spot, Forward, Swaps and Futures. The Bank does not run Option book
as of now. All the Option products are offered to the clients on a back to back basis.
ii Treasury Sales Desk is a customer centric desk that caters to customers’ requirements in FX and Derivatives
products subject to regulatory and internal requirements. Product offering to the clients is based on Suitability
and Appropriateness policy of the Bank as well as by the extant RBI guidelines. The policy ensures that the
product being offered by the Bank are in sync with the nature of the underlying risk sought to be hedged
giving due regard to the risk appetite of the customer and understanding of the risk by the customer. Market
Risk exposures of clients arising out of FX and Derivative transactions are monitored by the Bank on a daily
basis through current exposure method. Exposures are independently monitored and reported.
iii The Bank recognises all derivative contracts (other than those designated as hedges) at fair value. The mark
to market movement on the positions is monitored on a daily basis. Changes in the fair value of derivatives
other than those designated as hedges are recognised in the Profit and Loss Account. Hedge transactions
are accounted for on an accrual basis. Hedging transactions are undertaken by the Bank to protect the
variability in the fair value or the cash flow of the underlying Balance Sheet item.
iv All the derivative transactions are governed by the FX & Derivative policy, Market Risk Management policy and
Limit Management Framework of the Bank. Limit Management Framework details various types of market risk
limits which are monitored on a daily basis and breaches, if any, are reported promptly. Risk assessment of the
portfolio is undertaken periodically and presented to the Market Risk Committee / Asset Liability Committee.
These limits are set up taking into account market volatility, risk appetite, business strategy and management
experience. The Bank has a clear functional segregation of Treasury operations between Front Office, Market
Risk and Back Office.
b. Accounting policy for recording hedge and non-hedge transactions; recognition of income, premiums and discounts;
valuation of outstanding contracts; provisioning, collateral and credit risk mitigation :
For hedge transactions, the Bank identifies the hedged item (asset or liability) and assesses the effectiveness at
inception as well as at each reporting date. Funding swaps are accounted in accordance with FEDAI guidelines.
Interest rate swaps are booked with the objective of managing the interest rate risk on liabilities. Interest rate
swaps in the nature of hedge are recorded on accrual basis and these transactions are not marked-to-market. Any
resultant profit or loss on termination of the hedge swaps is amortised over the life of the swap or underlying liability,
whichever is shorter.
Currency interest rate swaps in the nature of hedge, booked with the objective of managing the currency and
interest rate risk on foreign currency liabilities are recorded on accrual basis and these transactions are not

Notes
marked-to-market. Any resultant profit or loss on termination of hedge swaps is amortised over the life of swap or
underlying liability, whichever is shorter. The foreign currency balances on account of principal of currency interest
rate swaps outstanding as at the balance sheet date are revalued using the closing rate.
Quantitative disclosure on risk exposure in derivatives :
(` in crore)
March 31, 2021

Sr.
Particulars Currency Interest rate
No.
Derivatives derivatives
1 Derivatives (notional principal amount)
a. For hedging 10,216.08 548.33
b. For trading 68,259.19 109,148.68
2 Marked to market positions
a. Asset (+) 777.08 867.48
b. Liability (-) (861.96) (939.47)
3 Credit exposure 3,115.21 1,811.88
4 Likely impact of one percentage change in interest rate (100*PV01)^
a. On hedging derivatives 0.94 1.40
b. On trading derivatives 13.41 76.91
5 Maximum and minimum of 100*PV01 observed during year^
a. On hedging
- minimum 0.86 -
- maximum 1.29 4.19
b. On trading
- minimum 11.34 74.63
- maximum 18.27 186.64
^ Excludes instruments such as FX forwards, FX Swaps etc.
(` in crore)
March 31, 2020

Sr.
Particulars Currency Interest rate
No.
Derivatives derivatives
1 Derivatives (notional principal amount)
a. For hedging 7,473.04 945.81
b. For trading 81,511.69 164,994.47
2 Marked to market positions
a. Asset (+) 2,062.25 1,693.46
b. Liability (-) (1,527.12) (1,940.30)
3 Credit exposure 5,033.12 3,100.08
4 Likely impact of one percentage change in interest rate (100*PV01)^
a. On hedging derivatives 1.11 0.01
b. On trading derivatives 14.12 95.07
5 Maximum and minimum of 100*PV01 observed during year^
a. On hedging
- minimum 0.36 -
- maximum 1.27 6.66
b. On trading
- minimum 9.58 95.07
- maximum 14.12 240.48
^ Excludes instruments such as FX forwards, FX Swaps etc.
i The notional principal amount of derivatives reflect the volume of transactions outstanding as at the balance sheet
date and do not represent the amounts at risk.
192 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
ii The Bank has computed maximum and minimum of PV01 for the year based on monthly averages.
iii In respect of derivative contracts, the Bank evaluates the credit exposure arising therefrom. Credit exposure has
been computed using the Current Exposure Method (CEM) which is the sum of :
a. the current replacement cost (marked-to-market value including accrued interest) of the contract or zero
whichever is higher; and
b. the Potential Future Exposure (PFE) is a product of the notional principal amount of the contract and credit
conversion factors derived basis the type / residual maturity of the contract, in line with the extant RBI
guidelines
STATUTORY REPORTS
The RBI had released amendments to prudential guidelines on Bilateral Netting of Qualified Financial Contracts on
March 30, 2021. The Bank shall work towards implementation of the same. However, it may be noted that the credit
exposure (CEM) is currently reckoned basis the earlier methodology defined under Basel III Capital Regulations, which
are more conservative for exposure measurement.
18.11 Credit Default Swaps
The Bank has not undertaken any transactions in Credit Default Swaps (CDS) during the year ended March 31, 2021
and March 31, 2020. Further, there are no outstanding CDS as on March 31, 2021 and March 31, 2020.
18.12 Asset quality
(` in crore)
a Particulars March 31, 2021 March 31, 2020
i Net NPAs to Net Advances (%) 1.86% 0.94%
ii Provision Coverage Ratio (In terms of extant RBI guidelines) 63.57% 66.40%
iii Movement of gross NPAs :
a. Opening balance 2,279.56 2,136.04
b. Additions during the year 5,626.76 2,693.50
c. Reductions during the year :
- Upgradation (345.80) (663.19)
- Recoveries (excluding recoveries made from upgraded accounts) (585.54) (376.56)
- Write offs including technical / prudential write-offs (2,671.97) (1,510.23)
d. Closing balance 4,303.01 2,279.56
iv Movement of net NPAs :
a. Opening balance 808.57 1,106.63
b. Additions during the year 2,074.28 695.47
c. Reductions during the year : (999.57) (993.53)
d. Closing balance 1,883.28 808.57
v Movement of provisions for NPAs (excluding provisions on
standard assets) :
a. Opening balance 1,470.99 1,029.41
b. Additions during the year
Additions 3,552.47 1,998.03
Transfer on downgrade of identified advances - -
c. Reductions during the year :
Write-offs including technical / prudential write-offs (2,246.95) (1,225.49)
Write-back on recovery / upgradation (356.78) (330.96)
d. Closing balance 2,419.73 1,470.99

Notes
b Divergence in Asset Classification and Provisioning for NPAs :

In terms of the RBI circular no. DBR.BP.BC.No.32/21.04.018/2018-19 dated 1 April, 2019, banks are required
to disclose the divergences in asset classification and provisioning consequent to RBI’s annual supervisory
process in their notes to accounts to the financial statements, wherever either or both of the following conditions
are satisfied: (a) the additional provisioning for NPAs assessed by RBI exceeds 10 per cent of the reported profit
before provisions and contingencies for the reference period and (b) the additional Gross NPAs identified by RBI
exceed 15 per cent of the published incremental Gross NPAs for the reference period.
Based on the above, no disclosure on divergence in asset classification and provisioning for NPAs is required with
respect to RBI’s annual supervisory process for the year ended 31 March, 2020.
c Implementation of Resolution Plans (RPs):
(` in crore)
RPs successfully implemented during

Cases eligible for RPs during FY21* RPs under implementation during FY21*
FY21*
Balance Balance Balance
No.of cases No.of cases # No.of cases
Outstanding$ Outstanding Outstanding
3 585.13 2 585.13 - -
* Aggregate Exposure of the Borrower to Lenders above ` 1,500 crore
$ Balance outstanding does not include 1 case written off during the year
# No.of cases include 1 case where RP was implemented and there is no balance outstanding as at March 31, 2021.
Note - As per the approved policy of the Bank, in addition to the above, RP is at various stages of implementation for 5
counterparties with aggregate outstanding of ` 382.10 Crores as on March 31, 2021.
d COVID-19 Regulatory Package - Asset Classification and Provisioning:
With reference to the RBI circular RBI/2019-20/220 DOR.No.BP.BC.63/21.04.048/2020-21 dated April 17, 2020,
Banks are advised to disclose as under.
(` in crore)
Respective amounts in
SMA/overdue categories, Respective amount Provisions adjusted Residual provisions
Provisions made in
where the moratorium / where asset against slippages in as at March 31, 2021 in
terms of Para 5 of the
deferment was extended, classification benefits is terms of Para 6 of the terms of Para 6 of the
circular
in terms of Para 2 and 3 extended. circular circular.
of the circular
2,917.40 1,248.66 287.78 (287.78) -
The impact of COVID-19, including changes in customer behaviour and pandemic fears, as well as restrictions
on business and individual activities, has led to significant volatility in global and Indian financial markets and a
significant decrease in global and local economic activity, which may persist even after the restrictions related to
the COVID-19 outbreak are being lifted. While the easing of restrictions has driven a revival in economic activity
across sectors, the continued slowdown has impacted lending business, fee income generation from sale of third
party products, collection efficiency etc. Further, there may be a rise in the number of customer defaults and
consequently an increase in provisions. The extent to which the COVID-19 pandemic, including the current “second
wave” will continue to impact the Bank’s operations and asset quality will depend on future developments, which
are highly uncertain. The current second wave COVID-19 pandemic where the number of cases have increased
significantly in India, has resulted into re-imposition of localised / regional lock down measures in various parts of
the country. The Bank’s capital and liquidity position is strong and would continue to be the focus area for the Bank
during this period.
In accordance with the RBI guidelines on ‘COVID-19 Regulatory Package’ of March 27, 2020, April 17, 2020 and May
23, 2020, the Bank granted moratorium on repayment of instalments and/or interest, as applicable, due between
March 1, 2020 and August 31, 2020 to all eligible borrowers. For all eligible accounts, where the moratorium was
granted, the asset classification was under standstill during the moratorium period (i.e. the number of days past-
due shall exclude the moratorium period for the purposes of asset classification under the Income Recognition,
Asset Classification and Provisioning norms).
194 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
During the year ended March 31, 2021, the Bank has made additional COVID-19 related provision (net) amounting
to ` 375.00 crores.
e Resolution Framework for COVID-19-related Stress
Details of resolution plan implemented under the Resolution Framework for Covid-19 related stress as per RBI
circular dated August 6, 2020 during the year ended March 31, 2021:
(` in crore)
Additional funding Increase in

Number of accounts Exposure to
Of (B), aggregate sanctioned, if provisions on
where resolution accounts mentioned
amount of debt that any, including account of
STATUTORY REPORTS
Type of Borrower plan has been at (A) before
was converted into between invocation the implementation
implemented under implementation of
other securities (C) of the plan and of the resolution
this window (A) the plan (B)*
implementation (D) (E)**
Personal Loans 81,007 961.48 - - 96.15
Corporate Loans 1 100.00 - - - ***
Of which, MSMEs - - - - -
Others 45 4.74 - - 0.47
Total 81,053 1,066.22 - - 96.62
* Refers to Outstanding balances of the restructured advances upon implementation of the resolution plan.
** Refers to provisions created on account of implmentation of the resolution plan.
*** The Bank is required to maintain higher of the provisions held as per the extant IRAC norms immediately before implementation, or 10
percent of the total debt, accordingly the Bank holds Provisions amounting to ` 25.00 crore
f Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances

With reference to the RBI circular RBI/2020-21/17 DOR.No.BP.BC/4/21.04.048/2020-21 dated August 6, 2020,
Banks are advised to disclose MSME accounts restructured as under:
No. of accounts restructured Amount ( ` in crore)

533 318.89

18.13 Particulars of Accounts Restructured
196
Details of loans subjected to restructuring during the year ended March 31, 2021 are given below:
(` in crore)
Type of Restructuring Under CDR Mechanism Under SME Debt Restructuring Mechanism Others Total
Sr.
Sub- Sub- Sub- Sub-
Notes
No. Asset Classification Standard Doubtful Loss Total Standard Doubtful Loss Total Standard Loss Total Standard Doubtful Loss Total
standard standard standard Doubtful standard
No. of borrowers - - - - - - - - - - 6 1 2 - 9 6 1 2 - 9
Amount outstanding - - - - - - - - - - 752.17 49.70 32.17 - 834.05 752.17 49.70 32.17 - 834.05
Restructured accounts as on (restructured facility)
1 April 1, 2020 Amount outstanding - - - - - - - - - - 30.02 - - - 30.02 30.02 - - - 30.02
IDFC FIRST Bank

(opening figures) (other facility)
Provision there on - - - - - - - - - - 67.85 7.50 11.55 - 86.90 67.85 7.50 11.55 - 86.90
No. of borrowers - - - - - - - - - - 81,564 - 22 81,586 81,564 - 22 - 81,586
Amount outstanding - - - - - - - - - - 1,309.08 - 0.16 - 1,309.23 1,309.08 - 0.16 - 1,309.23
Fresh restructuring during (restructured facility)
2 - - - - - - - - - - - - - - - - - - - -
the year Amount outstanding
(other facility)
Provision there on - - - - - - - - - - 197.99 - 0.17 198.16 197.99 - 0.17 - 198.16
No. of borrowers - - - - - - - - - - - - - - - - - - - -
Amount outstanding - - - - - - - - - - - - - - - - - - - -
Upgradations to restructured (restructured facility)
3 standard category during - - - - - - - - - - - - - - - - - - - -
Amount outstanding
the year
(other facility)
Provision there on - - - - - - - - - - - - - - - - - - - -
Increase / (decrease) in Amount outstanding - - - - - - - - - - (5.59) (1.04) (1.31) - (7.95) (5.59) (1.04) (1.31) - (7.95)
borrower level outstanding of (restructured facility)
4 existing restructured cases Amount outstanding - - - - - - - - - - - (0.60) - - (0.60) - (0.60) - - (0.60)
during the year ended March (other facility)
31, 2021 Provision there on - - - - - - - - - - 0.41 0.05 24.23 - 24.69 0.41 0.05 24.23 - 24.69
No. of borrowers - - - - (1) (1) (1) (1)
Restructured standard
advances which cease to Amount outstanding - - - - (399.96) (399.96) (399.96) (399.96)
attract higher provisioning and (restructured facility)
/ or additional risk weight at the Amount outstanding - - - - -
5
end of the year and hence need (other facility)
not be shown as restructured - - - - (20.04) (20.04) (20.04) (20.04)
standard advances at the Provision there on
beginning of the next year
No. of borrowers - - - - - - - - - - (22,957) 22,956 1 - - (22,957) 22,956 1 - -
Amount outstanding - - - - - - - - - - (328.37) 278.67 49.70 - - (328.37) 278.67 49.70 - -
Downgradations of restructured (restructured facility)
6
accounts during the year Amount outstanding - - - - - - - - - - (30.02) 30.02 - - - (30.02) 30.02 - - -
(other facility)
Provision there on - - - - - - - - - - (97.54) 90.04 7.50 - - (97.54) 90.04 7.50 - -
No. of borrowers - - - - - - - - - - - - (1) - (1) - - (1) - (1)
Amount outstanding - - - - - - - - - - - - (4.67) - (4.67) - - (4.67) - (4.67)
Write-offs / recoveries of (restructured facility)
7 restructured accounts during
the year
(other facility)
Provision there on - - - - - - - - - - - - (4.67) - (4.67) - - (4.67) - (4.67)
No. of borrowers - - - - - - - - - - 58,612 22,957 24 - 81,593 58,612 22,957 24 - 81,593
Amount outstanding - - - - - - - - - - 327.33 76.04 - 327.33 76.04 -
Restructured Accounts as on (restructured facility) 1,327.33 1,730.70 1,327.33 1,730.70
8 - - - - - - - - - - - 29.42 - - 29.42 - 29.42 - - 29.42
March 31, 2021 (closing figures) Amount outstanding
(other facility)
Details of loans subjected to restructuring during the year ended March 31, 2020 are given below:
(` in crore)
Type of Restructuring Under CDR Mechanism Under SME Debt Restructuring Mechanism Others Total
Sr.
No. Asset Classification Sub- Sub- Sub- Sub-
Standard Doubtful Loss Total Standard Doubtful Loss Total Standard Loss Total Standard Doubtful Loss Total
standard standard standard Doubtful standard
Notes
No. of borrowers - - - - - - - - - - 5 1 1 - 7 5 1 1 - 7
Restructured accounts as on (restructured facility)
1 Amount outstanding - - - - - - - - - - 32.68 - - - 32.68 32.68 - - - 32.68
April 1, 2019 (opening figures)
(other facility)
No. of borrowers - - - - - - - - - - - 1 1 - 2 - 1 1 - 2
Amount outstanding - - - - - - - - - - - 50.00 4.87 - 54.87 - 50.00 4.87 - 54.87
Fresh restructuring during (restructured facility)
2 - - - - - - - - - - - - - - - - - - - -
the year Amount outstanding
(other facility)
Provision there on - - - - - - - - - - - 7.50 4.87 - 12.37 - 7.50 4.87 - 12.37
No. of borrowers - - - - - - - - - - 1 - (1) - - 1 - (1) - -
Amount outstanding - - - - - - - - - - 401.53 - (401.53) - - 401.53 - (401.53) - -
Upgradations to restructured (restructured facility)
3 standard category during - - - - - - - - - - - - - - - - - - - -
Amount outstanding
the year
(other facility)
Provision there on - - - - - - - - - - 20.04 - (102.89) - (82.86) 20.04 - (102.89) - (82.86)
Increase / (decrease) in Amount outstanding - - - - - - - - - - (2.74) (0.30) (0.20) - (3.23) (2.74) (0.30) (0.20) - (3.23)
borrower level outstanding of (restructured facility)
4 existing restructured cases Amount outstanding - - - - - - - - - - (2.66) - - - (2.66) (2.66) - - - (2.66)
during the year ended March (other facility)
31, 2020 Provision there on - - - - - - - - - - (2.18) - 2.55 - 0.37 (2.18) - 2.55 - 0.37
No. of borrowers - - - - - - - -
Restructured standard
advances which cease to Amount outstanding - - - - - - - -
attract higher provisioning and (restructured facility)
/ or additional risk weight at the Amount outstanding - - - - - - -
5 (other facility)
end of the year and hence need
not be shown as restructured - - - - - - - -
standard advances at the Provision there on
beginning of the next year
No. of borrowers - - - - - - - - - - - (1.00) 1.00 - - - (1.00) 1.00 - -
Amount outstanding - - - - - - - - - - - (27.50) 27.50 - - - (27.50) 27.50 - -
Downgradations of restructured (restructured facility)
6 - - - - - - - - - - - - - - - - - - - -
accounts during the year Amount outstanding
(other facility)
Provision there on - - - - - - - - - - - (4.13) 4.13 - - - (4.13) 4.13 - -

No. of borrowers - - - - - - - - - - - - - - - - - - - -
Write-offs / recoveries of (restructured facility)
7 restructured accounts during
the year
(other facility)
Provision there on - - - - - - - - - - - - - - - - - - - -
No. of borrowers - - - - - - - - - - 6 1 2 - 9 6 1 2 - 9
Restructured Accounts as on (restructured facility)
8 - - - - - - - - - - 30.02 - - - 30.02 30.02 - - - 30.02
March 31, 2020 (closing figures) Amount outstanding
(other facility)
Note : The Bank does not have MSME restructuring cases.

197
FINANCIAL STATEMENTS STATUTORY REPORTS CORPORATE OVERVIEW
Notes
18.14 Specific Provision against identified advances

(` in crore)

Opening balance 654.09 695.15
Addition during the year 324.14 136.33
Reduction during the year (73.47) (149.78)
Transfer to provisions on NPA (169.57) (27.61)
Closing balance 735.19 654.09
18.15 Movement in technical / prudential written-off accounts :
Technical or prudential write-offs refers to the amount of non-performing advances which are outstanding in the books
of the branches, but have been written-off (fully or partially) at the head office level. Movement in the stock of technically
or prudentially written-off accounts are given below :
(` in crore)

Opening balance of technical / prudential written- off accounts 126.93 20.35
Add : Technical / prudential write-offs during the year 759.30 111.62
Less : Recoveries made from previously technical / prudential written-off accounts (19.49) (5.05)
during the year
Less : Sacrifice made from previously technical/prudential written-off - -
accounts
Closing balance of technical / prudential write off 866.74 126.93
18.16 Provisioning pertaining to Fraud Accounts
(` in crore)

Number of frauds reported 370 321
Amounts involved*@ 106.23 30.56
Provisions held at the beginning of the year 3.10 0.60
Provisions made during the year 7.28 3.55
Release in provision (5.81) (1.05)
Provisions held at the end of the year 4.57 3.10
Unamortised provision debited from ‘other reserves’ as at the end of the year - -
* Includes fraudulent accounts which are NPAs and provision of ` 25.04 crore (Previous year ` 14.12 crore) has been made as part of NPA
provisions.
@ Includes written off fraudulent accounts of ` 102.42 crore (Previous year ` 11.44 crore).
18.17 Securitisation and Direct Assignment

a Details of Financial Assets sold to Securitisation / Reconstruction Company for Asset Reconstruction
(` in crore)

No. of accounts - -
Aggregate value (net of provisions) of accounts sold to SC / RC - -
Aggregate consideration - -
Additional consideration realized in respect of accounts transferred in earlier - -
years
Aggregate gain / (loss) over net book value - -
198 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
Details of book value of investments in security receipts
(` in crore)
SRs issued more
SRs issued within than 5 years ago SRs issued more
Particulars
past 5 years but within past 8 than 8 years ago
years
i Backed by NPAs sold by the bank as underlying 102.48 141.82 -
Provision held against (i) 102.48 141.82 -
ii Backed by NPAs sold by other banks / financial institutions / non - - 14.19
STATUTORY REPORTS
banking financial companies as underlying
Provision held against (ii) - - 14.19
Total book value of investments in security receipts ( i+ii ) 102.48 141.82 14.19
(` in crore)
SRs issued more
SRs issued within than 5 years ago SRs issued more
Particulars
past 5 years but within past 8 than 8 years ago
years
i Backed by NPAs sold by the bank as underlying 258.68 154.85 -
Provision held against (i) 102.48 154.85 -
ii Backed by NPAs sold by other banks / financial institutions / non - - 14.19
banking financial companies as underlying
Provision held against (ii) - - 14.19
Total book value of investments in security receipts ( i+ii ) 258.68 154.85 14.19
b Disclosures relating to Securitisation
(` in crore)
1 No. of SPVs sponsored by the bank for securitisation transactions - -
Total amount of securitised assets as per books of the SPVs sponsored by - -
2
the bank
Total amount of exposures retained by the bank to comply with MRR as on
3
the date of balance sheet
a Off-balance sheet exposures
First loss - -
Others - -
b On-balance sheet exposures
First loss - -
Others - -
4 Amount of exposures to securitisation transactions other than MRR
i. Exposure to own securitizations
First loss - -
Others - -
ii. Exposure to third party securitisations
First loss - -
Others 165.85 256.71
First loss - -
Others - -
First loss - -
Others - -

Notes
c Disclosures relating to loans sold through direct assignment

(` in crore)
1 No. of SPVs sponsored by the bank for securitisation transactions - -
2 Total amount of assets sold through direct assignment during the year - -
Total amount of exposures retained by the bank to comply with MRR as on
3
the date of balance sheet
First loss 9.00 9.00
Others 12.07 10.58
First loss - -
Others* 255.31 334.06
4 Amount of exposures to securitisation transactions other than MRR
First loss - -
Others - -
First loss - -
Others - -
First loss - -
Others - -
First loss - -
Others - -
* Represents MRR portion for direct assignment transactions done by the Merging entities before the appointed date of the merger.
18.18 Details of non-performing financial assets purchased / sold (excluding securitisation / reconstruction
companies)
A Details of non performing financial assets purchased:
(` in crore)
1 a. No. of accounts purchased during the year - -
b. Aggregate outstanding - -
2 a. Of these, number of accounts restructured during the year - -
b. Aggregate outstanding - -
B Details of non performing financial assets sold:

(` in crore)
1 No. of accounts sold 969 920
2 Aggregate outstanding 4.45 3.77
3 Aggregate consideration received 4.45 3.77
Note: This includes sale of written off accounts.
18.19 Provisions on standard assets (including unhedged foreign currency exposure)

(` in crore)
Provisions towards standard assets* 959.50 754.27
* Including Covid-19 provision & provision on standard restructured assets. (refer note 18.12 - d, e & f)
200 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
18.20 Exposure to real estate sector
(` in crore)
Category March 31, 2021 March 31, 2020
1 Direct exposure
i Residential mortgages 9,492.17 6,621.28
of which housing loans eligible for inclusion in priority sector advances 1,674.28 1,586.45
ii Commercial real estate 1,426.52 1,680.27
iii Investments in Mortgage Backed Securities (MBS) and other
securitised exposures
STATUTORY REPORTS
a. Residential 1,204.89 1,506.53
b. Commercial real estate - -
2 Indirect exposure
Fund based and non-fund based exposures on National Housing Bank 1,787.53 3,276.46
(NHB) and Housing Finance Companies (HFCs)
Others 100.00 50.00
Total Exposure to Real Estate Sector 14,011.11 13,134.54
18.21 Exposure to capital market
(` in crore)
Direct investment in equity shares, convertible bonds, convertible debentures 1,351.95 1,260.82
1 and units of equity oriented mutual funds the corpus of which is not exclusively
invested in corporate debt *
Advances against shares / bonds / debentures or other securities or on - 13.07
clean basis to individuals for investment in shares (including IPOs / ESOPs),
2
convertible bonds, convertible debentures, and units of equity-oriented
mutual funds
Advances for any other purposes where shares or convertible bonds or - 19.40
3 convertible debentures or units of equity oriented mutual funds are taken as
primary security
Advances for any other purposes to the extent secured by the collateral - -
security of shares or convertible bonds or convertible debentures or units of
4 equity oriented mutual funds i.e. where the primary security other than shares
/ convertible bonds / convertible debentures / units of equity oriented mutual
funds does not fully cover the advances
Secured and unsecured advances to stock brokers and guarantees issued on 216.90 168.38
5
behalf of stockbrokers and market makers
Loans sanctioned to corporates against the security of shares / bonds / 19.15 121.10
6 debentures or other securities or on clean basis for meeting promoter’s
contribution to the equity of new companies in anticipation of raising resources
7 Bridge loans to companies against expected equity flows / issues - -
Underwriting commitments taken up by the banks in respect of primary issue - -
8 of shares or convertible bonds or convertible debentures or units of equity
oriented mutual funds
9 Financing to stockbrokers for margin trading - -
10 All exposures to Venture Capital Funds (both registered and unregistered) 614.53 615.57
Total exposure to capital market 2,202.54 2,198.34
* Excludes investment in equity shares on account of conversion of debt into equity as part of Strategic Debt Restructuring amounting to
` 274.02 crore (Previous Year ` 274.02 crore) which are exempted from exposure to Capital Market.

Notes
18.22 Risk category wise country exposure

(` in crore)
March 31, 2021 March 31, 2020

Risk Category
Exposure (net) Provision held Exposure (net) Provision held
Insignificant 5,489.67 - 6,511.95 -
Low 1,063.07 - 1,182.57 -
Moderate 134.00 - 140.00 -
High - - - -
Very High - - - -
Restricted - - - -
Off-credit - - - -
Total 6,686.74 - 7,834.52 -
18.23 Maturity pattern of certain items of assets and liabilities
A maturity pattern of certain items of assets and liabilities as at March 31, 2021 :
(` in crore)
Over Over
Over Over Over
2 days 8 days 15 days 31 days 3 months 6 Months
2 months 1 year 3 years Over
Particulars Day 1 to to to to and up and up Total
to & up to & up to 5 years
7 days 14 days 30 days 2 months to to
3 months 3 years 5 years
6 months 1 year
Deposits 692.64 2,690.26 3,143.51 2,319.65 8,665.71 6,628.74 7,887.45 8,246.62 45,902.71 1,555.83 955.30 88,688.42
Advances 314.30 2,060.47 902.89 1,868.89 4,023.46 4,248.42 9,643.70 13,028.80 30,445.33 11,703.37 22,310.50 100,550.13
Investments 13,555.74 6,052.31 584.89 568.41 1,296.67 1,947.27 2,243.80 4,019.92 8,673.77 2,167.84 4,301.12 45,411.74
Borrowings - 5,329.67 70.12 729.00 2,170.69 1,114.73 1,000.81 2,385.87 13,028.61 19,596.79 359.80 45,786.09
Foreign Currency 276.41 0.19 23.22 178.38 433.30 132.67 834.11 39.46 269.68 136.79 81.51 2,405.72
assets*
Foreign Currency 2.21 6.47 6.26 60.12 1,311.78 607.51 803.68 314.60 550.87 805.98 - 4,469.48
liabilities *
*The net FX risk is dynamically hedged by the Balance Sheet Management Group of the Bank.
A maturity pattern of certain items of assets and liabilities as at March 31, 2020^ :
(` in crore)
Over Over
Over Over Over
2 days 8 days 15 days 31 days 3 months 6 Months
2 months 1 year 3 years Over
Particulars Day 1 to to to to and up and up Total
to & up to & up to 5 years
7 days 14 days 30 days 2 months to to
3 months 3 years 5 years
6 months 1 year
Deposits 249.68 1,933.90 2,692.18 888.65 8,627.24 6,336.34 7,178.08 7,887.99 26,981.23 1,675.65 657.03 65,107.97
Advances 207.03 1,854.13 1,044.79 130.52 3,375.47 1,411.33 7,528.69 11,174.83 27,502.39 23,278.62 8,087.56 85,595.36
Investments 9,806.89 8,509.51 611.95 696.42 978.40 2,701.69 2,187.46 2,581.25 9,903.19 1,591.39 5,836.43 45,404.58
Borrowings - 7,427.71 230.12 1,561.20 2,921.83 4,610.16 2,752.05 4,830.46 12,330.42 14,974.70 5,758.54 57,397.19
Foreign Currency 106.65 0.06 73.45 29.27 214.96 226.85 174.22 51.26 114.47 98.42 110.16 1,199.77
assets*
Foreign Currency 0.71 4.29 7.38 7.83 1,951.59 2,631.92 1,017.62 1,382.82 587.80 348.01 0.00 7,939.97
liabilities *
* The net FX risk is dynamically hedged by the Balance Sheet Management Group of the Bank.
^ The estimates and assumptions used by the Bank for classification of assets and liabilities under the different maturity buckets are based
on the returns submitted to RBI for the relevant periods. In accordance with the regulatory package announced by the Reserve Bank of
India on March 27, 2020, the Bank has extended the option of payment moratorium for all dues falling due between March 1, 2020 and
May 31, 2020 to its eligible borrowers. As the moratorium has been given effect in April 2020, inflows from advances are based on the
original cash flows prevailing at March 31, 2021 along with the effect of applicable behavioral studies.
Classification of assets and liabilities under the different maturity buckets is based on the same estimates and
assumptions as used by the Bank for compiling the return submitted to the RBI, which has been relied upon by the
auditors. Maturity profile of foreign currency assets and liabilities is excluding off balance sheet items.
202 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
18.24 Unsecured advances
During the year ended March 31, 2021, there are unsecured advances of ` 655.23 crore (Previous Year ` 811.38 crore)
for which intangible securities such as charge over the rights, licenses, authority etc. has been taken as collateral by the
Bank and the estimated value of the intangible collaterals was ` 1,844.78 crore (Previous Year ` 2,154.12 crore).
18.25 Disclosure of penalties imposed by RBI
During the year ended March 31, 2021, no penalty was imposed by the RBI. During the previous year, RBI imposed a
penalty of ` 10,000 on the Bank with respect to certain deficiencies observed on note /coin exchange and clean note
policy during the incognito visit to the branch.
18.26 Employee benefits
STATUTORY REPORTS
i The Bank has charged the following amounts in the Profit and Loss Account towards contribution to defined
contribution plans which are included under schedule 16 (I) :
(` in crore)
Provident fund 67.78 53.89

Superannuation fund - -
Pension fund 2.77 2.79
ii Gratuity
The following tables summarise the components of net benefit expenses recognised in the Profit and Loss Account
and funded status and amounts recognised in the balance sheet for the gratuity benefit plan :
Profit and Loss Account
Net employee benefit expenses (recognised in payments to and provisions for employees) :
(` in crore)
Current service cost 14.64 13.48

Interest on defined benefit obligation 4.06 4.87
Expected return on plan assets (3.06) (3.92)
Net actuarial losses / (gains) recognised in the year (7.98) (4.83)
Past service cost 0.20 0.20
Losses / (gains) on Acquisition / Divestiture - -
Total included in “employee benefit expense” [schedule 16(I)] 7.86 9.79
Actual return on plan assets 5.44 3.58
Balance Sheet
Details of provision for gratuity :
(` in crore)
Fair value of plan assets 45.16 44.32

Present value of funded obligations (62.91) (54.41)
Unrecognised Past Service Cost 0.20 0.39
Net Liability Included under Schedule 5 - Other Liabilities (17.55) (9.69)

Notes
Changes in the present value of the defined benefit obligation are as follows :
(` in crore)
Opening defined benefit obligation 54.41 53.13

Interest cost 4.06 4.87
Actuarial losses / (gains) (5.60) (5.18)
Past service cost - -
Liabilities assumed on acquisition / (settled on divestiture) - -
Benefits paid (4.60) (11.89)
Closing defined benefit obligation 62.91 54.41
Changes in the fair value of plan assets are as follows :
(` in crore)
Opening fair value of plan assets 44.32 52.64

Expected return on plan assets 3.06 3.92
Actuarial gains / (losses) 2.38 (0.35)
Contributions by employer - -
Assets acquired on acquisition / (distributed on divestiture) - -
Closing fair value of plan assets 45.16 44.32
Expected Employers Contribution Next Year 6.00 6.00
Experience adjustments
(` in crore)
Particulars March 31, 2021 March 31, 2020 March 31, 2019 March 31, 2018 March 31, 2017
Defined benefit obligations 62.91 54.41 53.13 36.90 36.13

Plan assets 45.16 44.32 52.64 37.19 36.44
Surplus / (deficit) (17.74) (10.08) (0.49) 0.29 0.31
Experience adjustments on plan (3.76) (6.33) (1.57) (1.59) 2.02
liabilities
Experience adjustments on plan 2.38 (0.35) (0.20) (0.20) 1.12
assets
Major categories of plan assets (managed by Insurers) as a percentage of fair value of total plan assets :
Government securities 44.24% 32.70%

Bonds, debentures and other fixed income instruments 38.06% 50.56%
Deposits and money market instruments 5.99% 4.97%
Equity shares 11.71% 11.77%
Principal actuarial assumptions at the balance sheet date:
Discount rate (p.a.) 5.30% 6.20%

Expected rate of return on plan assets (p.a.) 7.00% 7.00%
Salary escalation rate (p.a.) 8.00% 8.00%
204 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
Business Segments :
The Business of the bank is divided into four segments : Treasury, Corporate / Wholesale Banking, Retail Banking
Business and Other Banking Business. These segments have been identified and reported taking into account, the
target customer segment, the nature of products, internal business reporting system, transfer pricing policy approved
by Asset Liability Committee (ALCO), the guidelines prescribed by the Reserve Bank of India (‘the RBI’), which has been
relied upon by the auditors.
Segment Principal activities

The treasury segment primarily consists of Bank’s investment portfolio, money market borrowing
STATUTORY REPORTS
and lending, investment operations and entire foreign exchange and derivative portfolio of the
Bank. Revenue of treasury segment consist of interest income on investment portfolio, inter segment
Treasury
revenue, gains or losses from trading operations, trades and capital market deals. The principal
expenses consists of interest expenses from external sources & on funds borrowed from inter
segments, premises expenses, personnel cost, direct and allocated overheads.
The wholesale banking segment provides loans, non-fund facilities and transaction services to
corporate relationship not included under Retail Banking, and syndication. Revenues of the
wholesale banking segment consists of interest earned on loans to customers, inter segment
Corporate / Wholesale
revenue, interest / fees earned on transaction services, earnings from trade services, fees on client
Banking
FX & derivative and other non-fund facilities. The principal expenses of the segment consists of
interest expense on funds borrowed from internal segments, premises expenses, personnel costs,
other direct overheads and allocated expenses of delivery channels, and support groups.
Retail Banking constitutes lending to individuals / business banking customers through the branch
network and other delivery channels subject to the orientation, nature of product, granularity of
the exposure and the quantum thereof. Revenues of the retail banking segment are derived from
interest earned on retail loans, inter segment revenue and fees from services rendered, fees on
Retail Banking
client FX & derivative. Expenses of this segment primarily comprise interest expense on deposits &
funds borrowed from inter segments, commission paid to retail assets sales agents, infrastructure
and premises expenses for operating the branch network and other delivery channels, personnel
costs, other direct overheads and allocated and support groups.
Other Banking Business This segment includes revenue from distribution of third party products.
All items which are reckoned at an enterprise level are classified under this segment. This includes
assets and liabilities which are not directly attributable to any segment. Revenue & expense of this
segment includes income & expenditure which are not directly attributable to any of the above
Unallocated
segments. Revenue includes interest on income tax refund and expense of this segment mainly
includes employee cost, establishment & technology expense which is not directly attributable to
any segment.
Segmental reporting for the year ended March 31, 2021 are set out below :
(` in crore)
Corporate/
Retail Other Banking
Particulars Treasury Wholesale Unallocated Total
Banking Business
Banking
Revenue (i) 10,773.55 6,118.04 15,010.76 152.67 50.61 32,105.63
Less : inter segment revenue (ii) (13,884.07)
Total Revenue (i-ii) 18,221.56
Segment Results before tax 2,594.94 698.50 (2,594.71) (17.24) (205.70) 475.78
Less: Provision for tax (23.50)
Net Profit 452.28
Total Segment assets 56,420.62 29,167.89 74,459.95 41.61 3,053.81 163,143.88
Total Segment liabilities 40,843.93 35,895.26 67,466.52 27.97 1,102.31 145,335.99
Net assets 15576.69 (6727.37) 6993.43 13.64 1951.50 17807.89
Capital expenditure for the year 22.10 6.28 523.53 23.23 2.26 577.40
Depreciation on fixed assets for 47.06 4.46 273.50 2.24 2.12 329.38
the year

Notes
(` in crore)
Corporate/
Banking Business
Banking
Revenue (i) 12,866.02 8,028.33 11,777.72 158.53 43.49 32,874.09
Segment Results before tax (1,241.68) (25.61) (917.33) (6.29) (187.61) (2,378.52)
Net Profit (2,864.21)
Total Segment liabilities 58,294.59 39,072.68 36,236.42 70.57 183.54 133,857.80
Net assets (567.04) (8,412.23) 21,097.84 5.80 3,218.24 15,342.60
the year
Geographic segments
The business of the Bank is concentrated in India. Accordingly, geographical segment results have not been reported.
18.28 Deferred tax
The major components of deferred tax assets and deferred tax liabilities arising out of timing differences are as under :
(` in crore)
Deferred tax assets on:

- Provisions for loan losses 1,008.01 708.12
- Provision for diminution in value of investments 521.91 489.97
- Other contingencies 557.50 461.31
- Depreciation on fixed assets (Including intangible assets) - 436.38
Total (A) 2,087.42 2,095.78
Deferred tax liabilities on:
- Depreciation on fixed assets (Including intangible assets) 7.01 -
- Others (Special Reserve under section 36(1)(viii) of Income Tax Act, 1961) 80.96 75.03
Total (B) 87.97 75.03
Net Deferred tax asset (A-B) 1,999.45 2,020.75
The Finance Act, 2021 has provided that goodwill of a business or profession will not be considered as a depreciable
asset and no depreciation on goodwill would be allowed effective April 1, 2020. The Bank had claimed depreciation
on goodwill while computing provision for tax that arose pursuant to the merger with Erstwhile Capital First Limited and
its subsidiaries in FY2018, and a deferred tax asset had been recognised on carrying value of such goodwill as per
Income Tax Act. Pursuant to the change in law, the Bank has now written off the deferred tax asset of ` 338.00 crores on
depreciation on goodwill in excess of the depreciation claimed in its returns of income filed till FY 2020 by debiting the
profit and loss account. Further, as at March 31, 2021, the Bank has reassessed the continuing recognition of deferred
tax assets by assessing availability of sufficient future taxable profits, based on financial projections which have been
approved by the Board of Directors, to absorb the carrying amount of deferred tax asset.
18.29 Provisions and contingencies
‘Provisions and contingencies’ shown under the head expenditure in Profit and Loss Account comprise of :
(` in crore)
Provision made towards income taxes 23.50 485.69

Provisions for depreciation on investment* (820.39) 1,051.49
Provision / (Write back) towards non-performing advances 945.08 441.58
206 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
(` in crore)
Provision / (Write back) for restructured assets 99.32 20.59

Provision / (Write back) on identified standard assets 81.10 (41.06)
Provision against Standard Asset 95.81 330.95
Bad-debts written off / technical write off ^ 2,387.02 1,386.44
Provision and other contingencies (723.04) 1,125.27
Total 2088.40 4,800.95
^ Net of bad-debt recoveries from borrowers on written off accounts of ` 420.10 crore (Previous Year ` 229.58 crore)
STATUTORY REPORTS
* During the year ended March 31, 2020, the Bank recognized a large telecom exposure of ` 3,243.77 crore (` 2,000.00 crore funded,
` 1,243.77 crore non funded) as stressed and created provisions of ` 1,622.00 crore, (50%) on the total of funded and non-funded
exposure, of which the Bank has written back provision amounting to ` 1,135.40 crore during the year ended March 31, 2021.
* During the year ended March 31, 2021, the Bank has sold bonds of a Non Banking Finance company and large housing finance company
resulting into realised loss of ` 573.48 crore accounted in “Other Income” and corresponding existing provision release of ` 572.92 crore
accounted in “Provisions (other than tax) and Contingencies”. During the year ended March 31, 2020, the Bank sold bonds of Financial
Services Company resulting into realised loss of ` 381.98 crore accounted in “Other Income” and corresponding existing provision
release of ` 374.63 crore accounted in “Provisions (other than tax) and Contingencies”
18.30 Floating provisions

(` in crore)
a Opening Balance - -
b Provisions made during the year - -
c Amount of draw down made during the year - -
d Closing Balance - -
18.31 Draw down from reserves
The Bank has not undertaken any draw down from reserves during the year ended March 31, 2021 and March 31, 2020.
Appropriation to Reserves
i Statutory Reserve
As mandated by the Banking Regulation Act, 1949, all banking companies incorporated in India shall create a
reserve fund, out of the balance of profit of each year as disclosed in the profit and loss account and before any
dividend is declared and transfer a sum equivalent to not less than twenty five per cent of such profit. During the
year, the Bank has transferred an amount of ` 113.50 crore (Previous year Nil) to Statutory Reserve Account.
ii Investment Reserve Account (IRA)
As per RBI guidelines, if provisions created on account of depreciation in the ‘AFS’ or ‘HFT’ categories are found
to be in excess of the required amount in any year, the excess shall be credited to the Profit and Loss Account and
an equivalent amount (net of taxes, if any and net of transfer to Statutory Reserves as applicable to such excess
provision) shall be appropriated to Investment Reserve Account. Further, the Bank may draw down from the IRA to
the extent of provision made during the year towards depreciation in investment in AFS and HFT categories (net of
taxes, if any, and net of transfer to Statutory Reserves as applicable to such excess provision). During the year, the
Bank has transferred an amount of ` 335.00 crore (Previous year Nil) to Investment Reserve Account.
iii Investment Fluctuation Reserve (IFR)
The RBI vide circular DBR.No.BP.BC.102/21.04.048/2017-18 dated April 2, 2018 advised banks to create an
Investment Fluctuation Reserve (IFR) with effect from FY 2018-19. Accordingly, an amount not less than the lower
of net profit on sale of investments during the year or net profit for the year less mandatory appropriations shall be
transferred to the IFR, until the amount of IFR is at least 2 percent of the HFT and AFS portfolio, on a continuing
basis. Where feasible, this should be achieved within a period of 3 years. During the year, the Bank has transferred
Nil (Previous year Nil) to Investment Fluctuation Reserve.
iv Capital Reserve
As per RBI Guidelines, profit/loss on sale of investments in the ‘Held to Maturity’ category is recognised in the Profit
and Loss Account and profit is thereafter appropriated (net of applicable taxes and statutory reserve requirements)
to Capital Reserve. Profit / loss on sale of investments in ‘Available for Sale’ and ‘Held for Trading’ categories is

Notes
recognised in the Profit and Loss Account. Accordingly, the Bank has appropriated ` 148.50 crore (Previous Year
` 166.00 crore) to capital reserve.
v Special Reserve
As per the provisions under Section 36(1)(viii) of Income Tax Act, 1961, specified entities like banks are allowed
deduction in respect of any special reserve created and maintained, i.e. an amount not exceeding twenty per cent
of the profits derived from eligible business computed under the head “Profits and gains of business or profession”
is carried to such reserve account. This would be applicable till the aggregate of the amounts carried to such
reserve account from time to time exceeds twice the amount of the paid up share capital and general reserves
of the entity. During the year, the Bank has transferred an amount of ` 24.00 crore (Previous Year Nil) to Special
Reserve.
vi General Reserve
During the year ended March 31, 2021 and March 31, 2020, no amount was transferred to the general reserve.
18.32 Disclosure of complaints
A Complaints by Customers / Stakeholders / Bondholders
i (a) Disclosure of customer complaints relating to Bank’s customers on Bank’s ATMs
a No. of complaints pending at the beginning of the year - -

b No. of complaints received during the year 9 -
c No. of complaints redressed during the year 9 -
d No. of complaints pending at the end of the year - -
(b) Disclosure of customer complaints relating to Bank’s customers on other bank’s ATMs
a No. of complaints pending at the beginning of the year - -

b No. of complaints received during the year 8,013 2,473
c No. of complaints redressed during the year 8,010 2,473
d No. of complaints pending at the end of the year 3 -
(c) Disclosure of customer complaints other than ATM transaction complaints
a No. of complaints pending at the beginning of the year 540 131

d No. of complaints pending at the end of the year 324 540
(d) Summary information on complaints received by the bank from customers and from the OBOs
Complaints received by the bank from its customers March 31, 2021 March 31, 2020
a No. of complaints pending at the beginning of the year 540 131

-Of which, number Of complaints rejected by the bank 397 -
d. No. of complaints pending at the end of the year 327 540
Maintainable complaints received by the bank from OBOs
Number of maintainable complaints received by the Bank from 3,394 1,572
e.
OBOs
f. Of 'e', number of complaints resolved in favour of the Bank by BOs 3,189 1,500
Of 'e', number of complaints resolved through conciliation/media- 204 72
g.
tion/advisories issued by BOs
"Of 'e', number of complaints resolved after passing 1 -
h.
of Awards by BOs against the bank "
Number of Awards unimplemented within the stipulated time (oth- - -
i.
er than those appealed)
208 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
Top five grounds of complaints received by the bank from customers
March 31, 2021
% increase/
Number of decrease in
Number of Number of Of 5, number
complaints the number
Grounds of complaints, complaints complaints of complaints
pending at the of complaints
(i.e. complaints relating to) received during pending at the pending
beginning of received over
the year end of the year beyond 30 days
the year the previous
year
1 2 3 4 5 6
ATM/Debit Cards 3 8,270 224% 5 -
STATUTORY REPORTS
Loans and advances 330 5,903 149% 168 1
Recovery Agents/Direct Sales Agents 64 4,726 320% 87 2
Charges Related 21 657 208% 24 -
Internet/Mobile/Electronic Banking 31 328 -15% 8 1
Others 91 1,131 20% 35 3
Total 540 21,015 177% 327 7
March 31, 2020

% increase/
Number of decrease in
Number of Number of Of 5, number
complaints the number
Grounds of complaints, complaints complaints of complaints
pending at the of complaints
(i.e. complaints relating to) received during pending at the pending
beginning of received over
the year end of the year beyond 30 days
the year the previous
year
1 2 3 4 5 6
ATM/Debit Cards 1 2,555 585% 3 3
Loans and advances 67 2,375 130% 330 52
Recovery Agents/Direct Sales Agents 37 1,125 37% 64 36
Charges Related 6 385 686% 31 3
Internet/Mobile/Electronic Banking 5 213 26% 21 2
Others 15 943 37% 91 27
Total 131 7,596 143% 540 123
ii Investors complaints :
a No. of complaints pending at the beginning of the year - 9

b No. of complaints received during the year * 8 538
c No. of complaints redressed during the year 8 547
d No. of complaints pending at the end of the year - -
* The aforesaid decrease in reporting is on account of requisite guidelines issued to Registrar and Transfer Agent (RTA) for appropriate
segregation amongst queries and complaints.
iii Retail bondholder’s complaints :

a No. of complaints pending at the beginning of the year 3 -

d No. of complaints pending at the end of the year 679 3
18.33 Disclosure of letters of comfort (LoCs) issued by banks
The Bank has not issued any Letter of Comfort to its subsidiary / group companies during the years ended March 31,
2021 and March 31, 2020.

Notes
18.34 Bancassurance business

The details of fees / brokerage earned in respect of insurance broking, agency and bancassurance business undertaken by
the Bank are as under:
(` in crore)
Nature of Income March 31, 2021 March 31, 2020
1 For selling life insurance policies 33.42 25.31

2 For selling non-life insurance policies 19.14 16.81
3 For selling mutual fund products 5.86 3.72
4 Others 7.68 4.94
Total 66.10 50.78
18.35 Concentration of deposits, advances, exposures and NPAs
i Concentration of deposits
(` in crore)
Total Deposits of twenty largest depositors 8,843.08 14,799.75

Percentage of deposits of twenty largest depositors to total deposits of the 9.97% 22.73%
bank
ii Concentration of advances
(` in crore)
Total advances to twenty largest borrowers# 8,376.99 9,228.09

Percentage of advances to twenty largest borrowers to total advances of the 8.08% 10.52%
bank
# Advances represent credit exposure (fund based).
(` in crore)
Total advances to twenty largest borrowers * 14,532.10 16,628.05

Percentage of advances to twenty largest borrowers to total advances of the 11.08% 13.88%
bank
* Advances represent credit exposure (funded and non-funded) including derivative exposure computed as per current exposure
method in accordance with RBI guidelines.
iii Concentration of exposures $

(` in crore)
Total exposure to twenty largest borrowers / customers 21,039.37 21,898.06

Percentage of exposures to twenty largest borrowers / customers to total 12.44% 13.49%
exposure of the bank on borrowers / customers
$ Exposure includes credit exposure (funded and non-funded), derivative exposure and investment exposure (including underwriting
and similar commitments) in accordance with RBI guidelines.
iv Concentration of NPAs
(` in crore)
Total exposure to top four NPA accounts 948.10 873.33
18.36 Details of single borrower limit (SGL) / group borrower limit (GBL) exceeded by the bank
During the years ended March 31, 2021 and March 31, 2020, the Bank’s credit exposure to single borrower and group
borrowers was within the prudential exposure limits prescribed by the RBI.
210 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
During the year ended March 31, 2021, the Bank complied with the RBI guidelines on Large Exposure framework on
Individual borrower and Group borrower limit. As per the exposure limits permitted under extant RBI guidelines, the
Bank with the approval of the Board of Directors can enhance exposure to single borrower and borrower group by a
further 5% of capital funds.
18.37 Intra-group exposures
Intra-group exposures in accordance with RBI guidelines are as follows :
(` in crore)
STATUTORY REPORTS
i Total amount of intra-group exposures 800.18 809.78
ii Total amount of top-20 intra-group exposures 800.18 809.78
Percentage of intra-group exposures to total exposure of the bank on bor- 0.47% 0.50%
iii
rowers / customers
Details of breach of limits on intra-group exposures and regulatory action - -
iv
thereon, if any
18.38 Unhedged Foreign Currency Exposure (UFCE)
The Bank’s Credit Policy lays down that the Bank will evaluate risks arising out of unhedged foreign currency exposures
of the borrowers and will also monitor the same. Both at the time of initial approval as well as subsequent reviews, the
assessment of credit risk arising out of foreign currency exposure of the borrowers include details of imports, exports,
repayments of foreign currency borrowings, as well as hedges done by the borrowers or naturally enjoyed by them vis-
a-vis their intrinsic financial strength, history of hedging and losses arising out of foreign currency volatility. The details
of unhedged foreign currency exposure of customers are monitored periodically. The Bank also maintains additional
provision and capital, in line with RBI guidelines.
During the year ended March 31, 2021, incremental capital held towards borrowers having unhedged foreign currency
exposures is `119.69 crore (Previous Year `43.37 crore) and provision held towards UFCE is `54.50 crore (Previous
Year `41.81 crore).
18.39 Sector-wise advances
(` in crore)
March 31, 2021
% of Gross
Sector Outstanding total NPAs to total
Gross NPAs
advances advances in that
sector
A Priority Sector
i Agriculture and allied activities 10,457.64 140.87 1.35%
Advances to industries sector eligible as priority sector 2,510.56 64.51 2.57%
ii
lending
iii Services 11,100.26 398.27 3.59%
iv Personal loans, of which : * 3,551.46 96.28 2.71%
Housing 3,028.64 93.50 3.09%
Subtotal (A) 27,619.92 699.93 2.53%
B Non Priority Sector
i Agriculture and allied activities 211.02 - -
ii Industry, of which * 18,974.88 675.95 3.56%
Infrastructure- Energy 2,947.09 91.19 3.09%
Infrastructure- Transport 4,848.42 358.53 7.39%
iii Services 11,628.81 638.21 5.49%
iv Personal loans, of which : * 45,288.61 2,288.92 5.05%
Housing 7,155.51 184.89 2.58%
Vehicle Loans 9,774.25 609.69 6.24%
Subtotal (B) 76,103.32 3,603.08 4.73%
Total (A)+(B) 103,723.24 4,303.01 4.15%
* Sub-sectors have been disclosed where advances exceed 10% of total advances in that sector at reporting date.

Notes
(` in crore)
March 31, 2020
% of Gross
Sector Outstanding total NPAs to total
Gross NPAs
advances advances in that
sector
A Priority Sector
i Agriculture and allied activities 6,544.54 12.05 0.18%
Advances to industries sector eligible as priority sector 2,783.59 90.97 3.27%
ii
lending
iii Services 8,178.65 159.29 1.95%
Housing 2,271.51 47.47 2.09%
Subtotal (A) 20,136.84 309.98 1.54%
B Non Priority Sector
i Agriculture and allied activities 275.41 - -
ii Industry, of which * 21,316.98 729.56 3.42%
Infrastructure- Energy 4,463.60 94.55 2.12%
Infrastructure- Transport 5,751.90 498.27 8.66%
Infrastructure- Communication - - -
iii Services 11,551.46 557.52 4.83%
Housing 4,343.30 50.35 1.16%
Vehicle Loans 8,048.99 209.53 2.60%
Subtotal (B) 67,611.88 1,969.58 2.91%
Total (A)+(B) 87,748.70 2,279.56 2.60%
* Sub-sectors have been disclosed where advances exceed 10% of total advances in that sector at reporting date.
18.40 Amount of Priority Sector Lending Certificates (PSLCs) purchased / sold by the Bank
Category wise PSLCs purchased :
(` in crore)
PSLC - Agriculture 4,458.00 450.00

PSLC - Small/Marginal Farmers 10,176.00 7,004.00
PSLC - Micro Enterprises - -
PSLC - General 1,000.00 -
15,634.00 7,454.00
Category wise PSLCs sold :
(` in crore)
PSLC - Agriculture - 1,000.00

PSLC - Small/Marginal Farmers - -
PSLC - Micro Enterprises 75.00 2,700.00
PSLC - General - 550.00
75.00 4,250.00
18.41 Overseas assets, NPAs and revenue
(` in crore)
Total assets - -
Total NPAs - -
Total revenue - -
Note: The Bank does not have any overseas operations as on March 31, 2021 and March 31, 2020.
212 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
18.42 Off-balance sheet SPVs sponsored (which are required to be consolidated as per accounting norms)
Off-balance sheet SPVs sponsored as on March 31, 2021 and March 31, 2020
March 31, 2021 March 31, 2020

Name of the SPV sponsored
Domestic Overseas Domestic Overseas
Nil Nil Nil Nil
18.43 Disclosures on Remuneration
Qualitative disclosures
a Information relating to the composition and mandate of the Remuneration Committee :
STATUTORY REPORTS
The Board nomination and remuneration committee comprised of the following members :
Mr. Hemang Raja Chairman
Mr. Aashish Kamat Member
Dr. (Mrs.) Brinda Jagirdar Member
Mr. Vishal Mahadevia Member
The functions of the Committee inter-alia include the following :
i Evaluate performance of the Whole Time Directors (WTDs) (including the Managing Director & CEO) against
predetermined parameters
ii Make recommendations on remuneration (including performance bonus and perquisites) of Whole Time
Directors
iii Approve policy and quantum of variable pay, bonus, stock options and increments for the employees of the
Bank
iv Frame guidelines for the Employees Stock Option Scheme (ESOS) and recommend grants of the Bank’s stock
options to Whole Time Directors of the Bank
v Review and recommend to the Board the payment of profit related commission to the Non-Executive Directors
of the Bank within the overall limits as may be approved by the shareholders of the Bank, in terms of the
Companies Act, 2013 and RBI Guidelines.
b Information relating to the design and structure of remuneration processes and the key features and objectives of
remuneration policy :
The principles for Remuneration Policy at the Bank have been formulated with the approval of the Nomination
and Remuneration Committee (‘NRC’). They are guided by the organization’s philosophy for enabling employee
performance to achieve the organization’s short term and long term objectives, balanced with prudent risk taking
and are in compliance with the RBI’s Guidelines on Compensation of Whole Time Directors / Chief Executive
Officers / Risk takers and Control function staff, etc. dated January 13, 2012.
The principles are as follows:
• To ensure that the level and composition of remuneration is reasonable and sufficient to attract, retain and
motivate talent.
• To ensure that the remuneration is balanced between fixed pay, variable pay and ESOPs, with adequate focus
on prudent risk taking and the short-term as well as the long-term objectives of the Bank and its shareholders.
• To ensure a clear relationship between remuneration and performance with adequate focus on achievement
of performance objectives incorporating elements of risk, compliance and service measures.
• To respect employee needs basis relevant market anchors and to compensate adequately for the contribution
towards the Bank’s growth.
• To ensure that the cost/income ratio of the Bank supports the remuneration package consistent with
maintenance of sound capital adequacy ratio.

Notes
c Description of the ways in which current and future risks are taken into account in the remuneration process including
the nature and type of the key measures used to take account of these risks :
The Board approves the risk framework for the Bank. Business activities of the Bank are undertaken within this
framework to achieve the financial plan. The risk framework includes the Bank’s risk appetite, limits framework and
policies and procedures governing various types of risk. The performance evaluation framework of Whole Time
Directors, equivalent positions and senior management personnel in material risk taker roles, incorporates these
risk and control aspects as detailed by the Board. These factors include (but are not limited to) elements such as
consistency in asset quality, rating slippage of existing loans, RORWA, operational risk parameters and quality of
systems. The performance management framework of the Bank will evolve over time and get more sophisticated
and mature. As regards linkage to remuneration, the compensation for Whole Time Director’s, etc. is paid in fixed
pay, performance linked variable pay and stock options which is approved by the NRC.
d Description of the ways in which the bank seeks to link performance during a performance measurement period with
levels of remuneration :
Performance and its linkage to levels of remuneration will be guided by the objectives / principles as spelt out in
Item b above. Annual Remuneration package comprises of a combination of fixed salary, cash bonus and ESOPs,
in a mix that ensures appropriate alignment with RBI guidelines, long term value creation and stability of the Bank.
Further, total pay levels will be referenced against 66th percentile of Indian private sector banks.
e Bank’s policy on deferral and vesting of variable remuneration and a discussion of the bank’s policy and criteria for
adjusting deferred remuneration before vesting and after vesting :
As outlined in Item (d) above, deferral structures have been incorporated and published to the staff. For senior
levels and material risk taker roles, remuneration package represents a mix of fixed pay, cash bonus and ESOP
with deferred vesting schedule. Further, the deferred / unvested portions will be subject to “malus” provision in
conformity with RBI guidelines.
f Description of the different forms of variable remuneration (i.e. cash, shares, ESOPs and other forms) that the bank
utilizes and the rationale for using these different forms :
The bank has the following forms of variable remuneration
• Annual Cash Bonus - This is part of the annual performance and compensation review cycle and is basis the
performance rating of the individual employee.
• Sales Incentive Plan - employees in sales, customer relationship / service, collections & operations are covered
under Incentive Plan. The coverage and payout plan is defined on the basis of business plans and budgets,
it is designed keeping in mind, requisite emphasis on risk and control parameters.
• Promotional activities which may result in rewards on achieving threshold targets. This may be in cash or kind
and is subject to perquisite tax as applicable.
• The ESOP scheme has been designed with a view to ensure an appropriate risk balanced remuneration
architecture.
Quantitative disclosures
The quantitative disclosures cover the Bank’s Whole Time Directors.
i Number of meetings held by the Remuneration Committee during the 5 6

a
financial year
ii Remuneration paid to its members (sitting fees) (` in crore) 0.75 0.85
Number of employees having received a variable remuneration award during 1 1
b
the financial year
c Number and total amount of sign-on awards made during the financial year - -
d Details of guaranteed bonus, if any, paid as joining / sign-on bonus - -
e Details of severance pay, in addition to accrued benefits, if any - -
Total amount of outstanding deferred remuneration, split into cash, shares NIL NIL
f
and share-linked instruments and other forms ( ` in crore).
g Total amount of deferred remuneration paid out in the financial year NIL 0.13
214 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
Fixed - `4.77 cr Fixed - ` 6.42 cr

Variable - ` 1.41 cr Variable - ` 2.30 cr
Deferred - Nil Deferred - Nil
Breakdown of amount of remuneration awards for the financial year to show
h Number of stock Number of stock
fixed and variable, deferred and non-deferred
option granted option granted
during the financial during the financial
year - 80,00,000* year - Nil
Total amount of outstanding deferred remuneration and retained remunera- NIL NIL
i
tion exposed to ex-post explicit and/or implicit adjustments
STATUTORY REPORTS
Total amount of reductions during the financial year due to ex-post explicit NA NA
j
adjustments
Total amount of reductions during the financial year due to ex-post implicit NA NA
k
adjustments
* During FY 2020-21, the Board of Directors of the Bank, based on the recommendation of Nomination and Remuneration Committee, at its
meeting held on May 21, 2020 had approved grant of 50,00,000 stock options to Mr. V. Vaidyanathan, MD & CEO under ‘IDFC FIRST Bank
– Employees Stock Option Scheme 2015’. In terms of Section 35B of the Banking Regulation Act, 1949, the said grant was duly approved
by the Reserve Bank of India vide its letter dated January 22, 2021.
During FY 2019-20, the Board of Directors of the Bank, based on the recommendation of Nomination and Remuneration Committee, at its
meeting held on October 24, 2019 had approved grant of 30,00,000 stock options to Mr. V. Vaidyanathan, MD & CEO under ‘IDFC FIRST
Bank – Employees Stock Option Scheme 2015’. In terms of Section 35B of the Banking Regulation Act, 1949, the said grant was duly
approved by the Reserve Bank of India vide its email dated April 13, 2020. The aforesaid grant has been accounted for in the FY 2020-21,
in terms of the relevant applicable accounting norms.
18.44 Transfers to depositor education and awareness fund (DEAF)

(` in crore)
Opening balance of amounts transferred to DEAF - -

Add : Amounts transferred during the year - -
Less : Amounts reimbursed towards claims - -
Closing balance of amounts transferred to DEAF - -
18.45 Liquidity Coverage Ratio
Qualitative disclosure
Liquidity risk management of the Bank is undertaken by the Balance Sheet Management Group (BSMG) under the
central oversight of the Asset Liability Management Committee (ALCO) in accordance with the Board approved policies
and ALCO approved funding plans. The Bank has adopted the Basel III framework on liquidity standards as prescribed
by RBI for reporting of the Liquidity Coverage Ratio (LCR). The mandated regulatory threshold as per the transition plan
is embedded into the Limit Management Framework of the Bank with appropriate cushion to ensure maintenance of
adequate liquidity buffers. Risk department computes the LCR and reports the same to the Asset Liability Management
Committee (ALCO), Risk Management Committee of the Board and Board for oversight and periodical review. The Bank
has been submitting LCR reports to RBI from January 2016.
As a strategy, the Bank is highly invested into GOI Bonds and corporate bonds which has resulted in a high level of
HQLA. The Bank follows the criteria laid down by the RBI for month-end calculation of High Quality Liquid Assets (HQLA),
gross outflows and inflows within the next 30 day period. HQLA predominantly comprises Government securities in
excess of minimum SLR requirement viz. Treasury Bills, Central and State Government securities and corporate bonds
in form of CP, CD and Bonds rated AA- and above with mandated haircuts applied thereto.
Bank is funded through long term bonds , term deposits, CASA, refinance and foreign currency borrowings. All significant
outflows and inflows determined in accordance with RBI guidelines are included in the prescribed LCR computation.
The Risk department measures and monitors the liquidity profile of the Bank with reference to the Board approved
limits on a static as well as on a dynamic basis by using the gap analysis technique supplemented by monitoring of
key liquidity ratios and periodical liquidity stress testing. The Bank assesses the impact on short term liquidity gaps
dynamically under various scenarios covering business projections under normal as well as varying market conditions.
Periodical reports are placed before the Bank’s ALCO for perusal and review.

Notes
Quantitative disclosure
(` in crore)
Quarter ended Quarter ended Quarter ended Quarter ended
March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020
Particulars Total Total Total Total Total Total Total Total
Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
Value Value Value Value Value Value Value Value
(average) (average) (average) (average) (average) (average) (average) (average)
High quality liquid assets
1 Total high quality liquid 30,131.93 28,740.03 27,701.22 28,905.62
assets (HQLA)
Cash outflows
Retail deposits and 51,991.63 4,905.83 44,074.84 4,127.95 36,199.22 3,356.83 29,085.02 2,686.22
deposits from small
2
business customers, of
which :
i Stable deposits 5,866.58 293.33 5,590.61 279.53 5,261.74 263.09 4,445.73 222.29
ii Less stable deposits 46,125.04 4,612.50 38,484.22 3,848.42 30,937.48 3,093.75 24,639.29 2,463.93
Unsecured wholesale 26,313.42 17,647.43 26,365.04 17,861.13 27,235.49 18,500.94 29,202.67 20,183.25
3
funding, of which :
i Operational deposits - - - - - - - -
(all counterparties)
ii Non-operational 14,443.31 5,777.32 14,173.18 5,669.27 14,557.60 5,823.04 15,032.37 6,012.95
deposits (all
counterparties)
iii Unsecured debt 11,870.11 11,870.11 12,191.86 12,191.86 12,677.90 12,677.90 14,170.30 14,170.30
Secured wholesale - - - -
4
funding
Additional requirements, 29,827.66 24,042.59 20,299.27 15,246.58 18,774.53 15,881.68 23,067.40 20,331.29
5
of which :
i Outflows related to 23,565.86 23,565.86 14,816.27 14,816.27 15,636.83 15,636.83 20,091.01 20,091.01
derivative exposures
and other collateral
requirements
ii Outflows related to - - - - - - - -
loss of funding on
debt products
iii Credit and liquidity 6,261.80 476.73 5,483.00 430.31 3,137.71 244.85 2,976.39 240.28
facilities
Other contractual funding 1,937.35 1,937.35 1,679.37 1,679.37 1,318.50 1,318.50 1,219.64 1,219.64
6
obligations
Other contingent funding 35,505.04 1,304.08 28,846.91 994.46 26,019.04 844.47 34,367.35 1,238.16
7
obligations
8 Total cash outflows 49,837.28 39,909.49 39,902.42 45,658.56
Cash inflows
Secured lending 3,836.23 - 4,422.28 - 3,172.79 - 5,508.52 -
9
(e.g.reverse repos)
Inflows from fully 7,676.97 6,465.70 4,055.90 3,137.97 4,675.13 3,870.78 3,336.89 2,672.59
10
performing exposures
11 Other cash inflows* 24,205.82 23,721.83 15,535.43 15,016.35 16,637.29 15,993.47 20,928.85 20,360.07
12 Total Cash Inflows 35,719.02 30,187.53 24,013.61 18,154.32 24,485.21 19,864.25 29,774.26 23,032.66
216 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
(` in crore)
Total Total Total Total

Adjusted Adjusted Adjusted Adjusted
STATUTORY REPORTS
Value Value Value Value
TOTAL HQLA 30,131.93 28,740.03 27,701.22 28,905.62
Total Net Cash Outflows 19,649.77 21,755.17 20,038.17 22,625.90
Liquidity coverage ratio 153.34% 132.11% 138.24% 127.75%
(%)
The average weighted and unweighted amounts are calculated taking daily averages.
* “Other Cash inflows” include inflows related to derivative exposure. The corresponding outflows related to derivative exposures are
shown separately under “5.i. Outflows related to derivative exposures and other collateral requirements”
(` in crore)
High quality liquid assets
1 Total high quality liquid 23,828.61 22,516.71 24,187.84 23,515.25
assets (HQLA)
Cash outflows
Retail deposits and 25,916.02 2,443.60 21,521.42 2,096.52 15,685.90 1,522.75 11,431.23 1,104.87
deposits from small
2
business customers, of
which :
i Stable deposits 2,960.09 148.00 1,112.38 55.62 916.77 45.84 764.99 38.25
ii Less stable deposits 22,955.93 2,295.59 20,409.04 2,040.90 14,769.12 1,476.91 10,666.24 1,066.62
Unsecured wholesale 29,870.92 20,106.92 27,197.35 18,075.06 29,248.26 20,017.68 30,514.41 21,992.41
3
funding, of which :
i Operational deposits - - - - - - - -
(all counterparties)
ii Non-operational 16,273.33 6,509.33 15,203.82 6,081.53 15,384.30 6,153.72 14,203.33 5,681.33
deposits (all
counterparties)
iii Unsecured debt 13,597.59 13,597.59 11,993.54 11,993.54 13,863.96 13,863.96 16,311.08 16,311.08
Secured wholesale - - - -
4
funding
Additional requirements, 25,163.48 21,225.79 20,650.68 16,484.14 22,977.41 21,409.44 24,207.09 23,248.51
5
of which :
i Outflows related to 20,899.83 20,899.83 16,147.37 16,147.37 21,235.41 21,235.41 23,174.60 23,174.60
derivative exposures
and other collateral
requirements
ii Outflows related to - - - - - - - -
loss of funding on
debt products

Notes
(` in crore)
iii Credit and liquidity 4,263.65 325.96 4,503.31 336.76 1,742.00 174.02 1,032.49 73.91
facilities
Other contractual funding 1,469.03 1,469.03 906.15 906.15 803.79 803.79 925.82 925.82
6
obligations
Other contingent funding 36,626.67 1,316.55 38,687.54 1,408.73 40,351.87 1,487.12 40,666.97 1,489.11
7
obligations
8 Total cash outflows 46,561.90 38,970.61 45,240.78 48,760.72
Cash inflows
Secured lending 3,173.08 - 737.06 1,503.72 - 697.30 -
9
(e.g.reverse repos)
Inflows from fully 5,687.30 3,928.42 5,483.10 3,637.97 6,578.68 4,548.10 7,635.06 5,455.73
10
performing exposures
11 Other cash inflows* 21,723.63 21,171.85 16,938.63 16,400.54 21,899.02 21,408.30 23,961.18 23,456.58
12 Total Cash Inflows 30,584.00 25,100.27 23,158.80 20,038.51 29,981.41 25,956.40 32,293.55 28,912.31
Total Total Total Total

Adjusted Adjusted Adjusted Adjusted
Value Value Value Value
TOTAL HQLA 23,828.61 22,516.71 24,187.84 23,515.25
Total Net Cash Outflows 21,461.62 18,932.10 19,284.38 19,848.41
Liquidity coverage ratio 111.03% 118.93% 125.43% 118.47%
(%)
The average weighted and unweighted amounts are calculated taking daily averages.
* “Other Cash inflows” include inflows related to derivative exposure. The corresponding outflows related to derivative exposures are
shown separately under “5.i. Outflows related to derivative exposures and other collateral requirements”
In accordance with the regulatory package announced by the Reserve Bank of India on March 27, 2020, the Bank has extended
the option of payment moratorium for all dues falling due between March 1, 2020 and May 31, 2020 to its eligible borrowers. As the
moratorium has been given effect in April 2020, inflows from advances are based on the original cash flows prevailing at March 31,
2021 along with the effect of applicable behavioral studies.
Note : Classification of inflows and outflows for determining the run off factors is based on the same estimates and assumptions as
used by the Bank for compiling the return submitted to the RBI, which has been relied upon by the auditors.
18.46 Related party disclosure :
As per AS-18, Related Party Disclosure, the Bank’s related parties are disclosed below :
a Entities having Significant Influence
IDFC Limited
IDFC Financial Holding Company Limited
b Subsidiary
IDFC FIRST Bharat Limited
c Associates
Millennium City Expressways Private Limited
d Key Management Personnel
Mr. V. Vaidyanathan
218 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
e Relatives of key management personnel:
Mrs. Jeyashree Vaidyanathan, Mr. Krishnamurthy Vembu, Mr. Pranav Vaidyanathan, Mr. Amartya Vaidyanathan, Ms.
Anusha Vaidyanathan, Group Captain V. Satyamurthy, Mr. Maj V Krishnamurthy, Ms. Savitri Krishnamoorthy
In accordance with paragraph 5 and 6 of AS - 18, the Bank has not disclosed certain transactions with relatives of
key management personnel as they are in the nature of banker-customer relationship.
The significant transactions between the Bank and related parties for year ended March 31, 2021 are given below.
A specific related party transaction is disclosed as a significant related party transaction wherever it exceeds 10%
of all related party transactions in that category:
STATUTORY REPORTS
• Interest Expense :
IDFC Financial Holding Company Limited ` 7.61 crore (Previous year ` 3.99 crore); IDFC FIRST Bharat Limited
` 2.47 crore (Previous year ` 3.97 crore)
• Interest income earned :
Millennium City Expressways Private Limited ` 8.93 crore (Previous year ` 0.11 crore)
• Managerial Remuneration :
Mr. V. Vaidyanathan ` 6.18 crore (Previous year ` 8.72 crore)
• Receiving of services
IDFC FIRST Bharat Limited ` 464.35 crore (Previous year ` 372.62 crore)
• Rendering of services
Millennium City Expressways Private Limited ` 0.10 crore (Previous year ` 0.10 crore); IDFC FIRST Bharat
Limited ` 0.01 crore (Previous year Nil)
• Sale of fixed assets
IDFC Limited ` 0.09 crore (Previous year Nil)
The details of the transactions of the Bank with its related party during the year ended March 31, 2021 are given below:
(` in crore)
Related Party
Entities having Key Management
Particulars Subsidiary Associates
Significant Influence Personnel
Interest expense 7.62 2.47 - 0.12
Interest income earned - - 8.93 -
Managerial Remuneration**^ - - - 6.18
Receiving of services 0.35 * 464.35 - -
Rendering of services - 0.01 0.10 ß
Sale of fixed assets 0.09 - - -
* Reimbursement of chairman office expenses done by the Bank to IDFC Limited for Dr. Rajiv Lall during the tenure of chairmanship till
September 4, 2020.
** Refer Note 18.43 - Quantitative Disclosure
^ During FY 2020-21, the Board of Directors of the Bank, based on the recommendation of Nomination and Remuneration Committee, at its

Notes
The balances payable to / receivable from the related parties of the Bank as on March 31, 2021 are given below:
(` in crore)
Related Party
Deposits with the Bank 7.73 152.18 - 0.93
Interest Accrued on Deposit - 0.25 - ß
Loans & advances including credit card - - 341.40 ß
balances
Investment of the Bank - 232.40 226.38 -
Investment of related party in the Bank $ - - - -
Other receivables # - 76.56 - -
Other Payable - 48.24 - -

#
Other receivable includes cash with business correspondents.

$
As at March 31, 2021, IDFC Financial Holding Company Limited holds 2,268,937,489 and KMP holds 24,857,117 equity shares in the
Bank.
The maximum balances payable to/receivable from the related parties of the Bank during the year ended March 31,
2021 are given below:
(` in crore)
Related Party
Loans & advances including credit card - - 351.00 ß
balances
Other payables - 85.10 - -

#
(` in crore)
Related Party
Interest expense 4.01 3.97 - 0.07
Purchase of investments 51.61 - - -
Managerial Remuneration** - - - 8.72
Receiving of services - 372.62 - -
Rendering of services 0.27 - 0.10 -
** Refer Note 18.43 - Quantitative Disclosure
220 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
(` in crore)
Related Party
Interest Accrued on Deposit 0.54 0.17 - -
Advances - - 351.00 -
STATUTORY REPORTS
Investment of related party in the Bank $ - - - -
Other Payable - 97.89 - -
#
$
Bank.
The maximum balances payable to/receivable from the related parties of the Bank during the year ended March 31,
(` in crore)
Related Party
Advances - - 351.00 -
Other payables - 97.89 - -
#
18.47 Earnings per share (‘EPS’)

Basic and diluted earnings per equity share are computed in accordance with AS 20 - Earnings per share. Basic
earnings per equity share is computed by dividing net profit after tax attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. Diluted earnings per equity share is computed by dividing
net profit after tax attributable to equity shareholders by the weighted average number of equity shares and weighted
average number of dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive.
Dilution of equity is on account of stock options granted to employees by the Bank.
Basic
Weighted average number of equity shares outstanding (in crore) 550.26 478.64
Net Profit / (Loss) after Tax ( ` in crore) 452.28 (2,864.21)
Basic earnings per share ( ` ) 0.82 (5.98)
Diluted
Net Profit / (Loss) after Tax ( ` in crore) 452.28 (2,864.21)
Diluted earnings per share ( ` ) 0.81 (5.91)
Nominal value of shares ( ` ) 10.00 10.00
18.48 Movement in stock options granted is as under:
Employee Stock Option Scheme (ESOS) of IDFC FIRST Bank Limited viz. IDFC FIRST Bank ESOS-2015 was framed with
an object of encouraging higher participation on the part of employees in the Bank’s financial growth and success. An
effective stock option scheme enables retention of talent and aligning employee interest to that of the Shareholders.

Notes
The Shareholders of the Bank at its Extra-Ordinary General Meeting held on December 09, 2014 had approved
IDFC FIRST Bank ESOS – 2015. The IDFC FIRST Bank ESOS – 2015 was further amended and was approved by the
shareholders at its the 1st Annual General Meeting (AGM) held on September 29, 2015, at the 2nd AGM held on July
27, 2016 and at 5th AGM held on July 25, 2019.
IDFC FIRST Bank ESOS-2015 is in compliance with Securities and Exchange Board of India (Share Based Employee
Benefits) Regulations, 2014, as amended from time to time. IDFC FIRST Bank ESOS-2015 is administered by the
Nomination and Remuneration Committee (‘NRC’) of the Bank. As per IDFC FIRST Bank ESOS-2015, the Bank is
authorized to issue Employee Stock Options to Eligible Employees as defined under the IDFC FIRST Bank ESOS-2015.
All Options vests in a graded manner and are required to be exercised within a specific period. The Bank has used
the intrinsic value method to account for the compensation cost of stock options to employees of the Bank. Intrinsic
value is the amount by which the quoted market price of the underlying share on the date, prior to the date of the grant,
exceeds the exercise price on the Option. Accounting for the stock options has been in accordance with the Securities
and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014, to the extent applicable.
During the year ended March 31, 2021, there has been no material change in IDFC FIRST Bank ESOS-2015.
Stock option activity under the Scheme for the year ended 31 March, 2021 is set out below:
Weighted
Range of Weighted average average remaining
Particulars Options outstanding
exercise prices ( ` ) exercise price ( ` ) contractuallife
(Years)
Outstanding at the beginning of the year 234,193,359 11.20 - 79.85 37.32 3.68
Granted during the year 42,132,000 19.25 - 47.80 21.79 5.45
Re-Instated druing the year - - - -
Forfeited during the year (12,302,110) 19.25 - 74.20 42.16 -
Expired during the year (717,000) 44.60 - 53.26 50.73 -
Exercised during the year (3,506,135) 11.20 - 58.75 36.84 -
Outstanding at the end of the year 259,800,114 11.20 - 79.85 34.54 3.09
Exercisable at the end of the year 160,584,324 11.20 - 79.85 33.43 2.31
The weighted average share price in respect of options exercised during the year was ` 56.63
Stock option activity under the Scheme for the year ended 31 March, 2020 is set out below:
Weighted
Range of Weighted average average remaining
Particulars Options outstanding
exercise prices ( ` ) exercise price ( ` ) contractuallife
(Years)
Outstanding at the beginning of the year 256,256,305 11.20 - 79.85 36.28 4.23
Granted during the year 41,026,000 21.75 - 54.65 38.77 5.45
Re-Instated druing the year 83,400 33.24 - 51.06 45.12 2.81
Forfeited during the year (28,861,525) 12.53 - 78.55 47.70 -
Expired during the year (6,084,217) 12.53 - 59.43 49.00 -
Exercised during the year (28,226,604) 11.20 - 47.00 16.85 -
Outstanding at the end of the year 234,193,359 11.20 - 79.85 37.32 3.68
Exercisable at the end of the year 152,281,819 11.20 - 79.85 33.06 3.22
The weighted average share price in respect of options exercised during the year was ` 39.14
Fair Value Methodology
On applying the fair value based method in Guidance Note on ‘Accounting for Employee Share-based Payments’ the
impact on reported net profit and EPS would be as follows:
222 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
Net Profit / (Loss) (as reported) ( ` in crores) 452.28 (2,864.21)

Add: Stock based employee compensation expense under intrinsic value method 0.10 -
included in net Profit / (Loss)
Less: Stock based employee compensation expense determined under fair value 40.06 26.98
based method (proforma) ( ` in crores)
Net Profit / (Loss) (Proforma) ( ` in crores) 412.32 (2,891.19)
Earnings per share: Basic (in ` )
As reported 0.82 (5.98)
STATUTORY REPORTS
Proforma 0.75 (6.04)
Earnings per share: Diluted (in ` )
As reported 0.81 (5.91)
Proforma 0.74 (5.96)
The fair value of the options is estimated on the date of the grant using the Black-Scholes options pricing model,
with the following assumptions:
Dividend yield 3.35% 0.07%

Expected life 4.50 years 4.51 years
Risk free interest rate 5.43% 6.14%
Volatility 40.35% 35.37%
18.49 Unclaimed Shares
Details of unclaimed shares as of March 31, 2021 and March 31, 2020 are as follows :
Aggregate number of shareholders at the beginning of the year 99 99

Total outstanding shares in Unclaimed Suspense Account at the beginning of the 28,253 28,253
year
Number of shareholders who approached to issuer for transfer of shares from - -
Unclaimed Suspense Account during the year
Number of shareholders to whom shares were transferred from Unclaimed Sus- - -
pense Account during the year
Aggregate number of shareholders at the end of the year 99 99
Total outstanding shares in Unclaimed Suspense Account at the end of the year 28,253 28,253
18.50 Leases
In accordance with Accounting Standard 19 on ‘Leases’ as notified under the Accounting Standards specified under
Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, the following
disclosures in respect of operating leases are made:
(This comprise of office premises / branches / ATMs taken on lease.)
(` in crore)
Future lease rentals payable as at the end of the year :

Not later than one year 247.79 214.35
Later than one year and not later than five years 724.92 589.76
Later than five years 252.82 210.70
Total of minimum lease payments recognised in the Profit and Loss Account for 289.73 238.12
the year
Total of future minimum sub-lease payments expected to be received under - -
non-cancellable subleases
Sub-lease payments recognised in the Profit and Loss Account for the year - -

Notes
The Bank has not sub-leased any of its properties taken on lease. There are no provisions relating to contingent rent.
The terms of renewal / purchase options and escalation clauses are those normally prevalent in similar agreements.
There are generally no undue restrictions or onerous clauses in the agreements.
18.51 Other Fixed Assets
The movement in fixed assets capitalised as application software is given below :
(` in crore)
March 31, 2021 March 31, 2020

Particulars
Software Other Intangibles* Software Other Intangibles*
Cost
At the beginning of the year 783.07 2,599.35 648.44 2,599.35
Additions during the year 294.99 - 134.63 -
Deductions during the year - - - -
Total (i) 1,078.06 2,599.35 783.07 2,599.35
Depreciation
Accumulated depreciation at the 510.37 2,599.35 346.96 2,599.35
beginning of the year
Depreciation charge for the year 158.21 - 163.41 -
Total (ii) 668.58 2,599.35 510.37 2,599.35
Net Value (i-ii) 409.48 - 272.70 -
* Other intangibles includes Goodwill & Brand acquired and arising on amalgamation
18.52 Corporate Social Responsibility (CSR)

i Amount required to be spent by the Bank on CSR during the year is Nil (Previous Year Nil).
ii Amount spent towards CSR during the year and recognised as expense in the statement of profit and loss on CSR
related activities is ` 19.62 crores (Previous Year ` 7.24 crores), which comprise of following -
(` in crore)
Yet to be paid in
Nature of activities In cash Total
cash (i.e. provision)
Construction / acquisition of any asset - - -
On purpose other than above 19.46 0.16 19.62
(` in crore)
Yet to be paid in
On purpose other than above 7.24 - 7.24
18.53 Proposed dividend
The Bank did not declare any dividend for the financial year ended March 31, 2021 and March 31, 2020.
18.54 Small and Micro Industries
Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from October 2, 2006,
certain disclosures are required to be made relating to Micro, Small and Medium enterprises. During the year ended
March 31, 2021 ` 23.91 crores (Previous Year Nil) worth bills were paid with delays to micro and small enterprises
and ` 1.86 crores worth bills remained unpaid as at March 31, 2021. There have been no demand of interest on these
payments.
18.55 Disclosure on Factoring
224 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
As per the RBI circular Ref No. DBR.No.FSD.BC.32/24.01.007/2015-16 dated July 30, 2015, banks are required to
disclose factoring exposures. Receivables acquired under factoring are treated as part of loans and advances and
reported under the head ‘Bills Purchased and Discounted’ in Schedule 9 of the Balance Sheet. The Bank has factoring
exposure of ` 875.05 crore (Previous Year ` 876.14 crore) and outstanding of ` 607.13 crore (Previous Year ` 573.87
crore) as on March 31, 2021.
18.56 Investor Education and Protection Fund
There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Bank.
18.57 The Bank pays loan servicing fees to business correspondents for services rendered towards sourcing and
STATUTORY REPORTS
servicing of loans and other related activities. These were hitherto netted off from “Interest/discount on advances/bills”
in the profit and loss account. During the year ended March 31, 2021, the Bank has changed this presentation and
accordingly reclassified them as part of “Operating Expenses” with the corresponding change in the previous year.
Basis this change, all relevant disclosures have been regrouped / reclassified wherever applicable.
(` in crore)
Year ended
31.03.2020
Interest/discount on advances/bills - As reported 11,634.54
Interest/discount on advances/bills - As per reclassification 12,074.80
Operating Expenses - As reported 5,420.73
Operating Expenses As per reclassification 5,860.99
18.58 In accordance with the instructions in the aforesaid circular dated April 07, 2021, the Bank shall refund / adjust
‘interest on interest’ to all borrowers including those who had availed of working capital facilities during the moratorium
period, irrespective of whether moratorium had been fully or partially availed, or not availed. As required by the RBI
notification, the methodology for calculation of such interest on interest has recently been circulated by the Indian
Banks’ Association. The Bank is in process of implementing this circular. As at March 31, 2021, the Bank has created a
liability towards estimated interest relief of ` 55.00 crore and reduced the same from the interest income.
18.59 Description of contingent liabilities
i Claims against the Bank not acknowledged as debts
The Bank is a party to taxation matters which are in dispute and are under appeal. The demands have been partly
paid / adjusted and will be received as refund if the matters are decided in favour of the Bank. The Bank is a party
to various legal proceedings in the normal course of business. The Bank does not expect the outcome of these
proceedings to have a material adverse effect on the Bank’s financial conditions, results of operations or cash
flows.
ii Liability for partly paid investments
This represents amounts remaining unpaid towards liability for partly paid investments. These payment obligations
of the Bank do not have any profit / loss impact.
iii Liability on account of forward exchange and derivative contracts
The Bank enters into foreign exchange contracts, currency options, forward rate agreements, currency swaps
and interest rate swaps with inter-bank participants on its own account and for customers. Forward exchange
contracts are commitments to buy or sell foreign currency at a future date at the contracted rate. Currency swaps
are commitments to exchange cash flows by way of interest / principal in one currency against another, based on
predetermined rates. Interest rate swaps are commitments to exchange fixed and floating interest rate cash flows.
Interest rate futures are standardised, exchange-traded contracts that represent a pledge to undertake a certain
interest rate transaction at a specified price, on a specified future date. Forward rate agreements are agreements
to pay or receive a certain sum based on a differential interest rate on a notional amount for an agreed period. A
foreign currency option is an agreement between two parties in which one grants to the other the right to buy or sell
a specified amount of currency at a specific price within a specified time period or at a specified future time. An
exchange traded currency option contract is a standardised foreign exchange derivative contract, which gives the
owner the right, but not the obligation, to exchange money denominated in one currency into another currency at a
pre-agreed exchange rate on a specified date on the date of expiry. Currency Futures contract is a standardised,
exchange-traded contract, to buy or sell a certain underlying currency at a certain date in the future, at a specified

Notes
price.
With respect to transactions entered by customers, the Bank generally takes off-setting positions in the inter-bank
markets which results into higher numbers of outstanding contracts. The same also leads to representation of large
gross notional principal of the portfolio, while the actual credit /market risk is much smaller.
Further, the notional amount of the financial instruments do not represent the current fair value or future cash flows
and hence do not indicate Banks’ exposure to credit or price risk. The derivative instrument becomes an asset /
liability basis change in underlying market rates compared to contracted rates.
iv Guarantees given on behalf of constituents
As a part of its banking activities, the Bank issues guarantees on behalf of its customers to enhance their credit
standing. Guarantees represent irrevocable assurances that the Bank will make payments in the event of the
customer failing to fulfill its financial or performance obligations.
v Acceptances, endorsements and other obligations
These includes documentary credit issued by the Bank on behalf of its customers and bills drawn by the Bank’s
customers that are accepted or endorsed by the Bank.
vi Other items
Other items represent estimated amount of contracts remaining to be executed on capital account. This also
includes the amount of investments bought and remaining to be settled on the date of financial statements.
18.61 Comparative figures
Figures for the previous year have been regrouped and reclassified wherever necessary to conform to the current year’s
presentation.
18.62 The figures of ` 50,000 or less have been denoted by ß .


226 IDFC FIRST Bank

Independent Auditor’s Report
CORPORATE OVERVIEW
To the Members of IDFC FIRST Bank Limited Basis of opinion
We conducted our audit in accordance with the Standards
Report on the Audit of the Consolidated Financial on Auditing (SAs) specified under section 143(10) of
Statements the Act. Our responsibilities under those SAs are further
Opinion described in the Auditor’s Responsibilities for the Audit of
We have audited the consolidated financial statements of the Consolidated Financial Statements section of our report.
IDFC FIRST Bank Limited (hereinafter referred to as the We are independent of the Group in accordance with the
‘Bank’ or ‘Holding Company’) and its subsidiary (the Bank/ ethical requirements that are relevant to our audit of the
Holding Company and its subsidiary together referred Consolidated Financial Statements in terms of the Code of
to as the ‘Group’) and its associate, which comprise the Ethics issued by Institute of Chartered Accounts of India
STATUTORY REPORTS
consolidated balance sheet as at 31 March 2021, the and the relevant provisions of the Act, and we have fulfilled
consolidated profit and loss account and the consolidated our other ethical responsibilities in accordance with these
cash flows statement for the year then ended, and notes to requirements. We believe that the audit evidence obtained
the consolidated financial statements, including a summary by us along with the consideration of audit reports of the
of significant accounting policies and other explanatory other auditors referred to in sub paragraph (a) of the “Other
information (hereinafter referred to as the ‘consolidated Matters” paragraph below, is sufficient and appropriate to
financial statements’). provide a basis for our opinion on the consolidated financial
In our opinion and to the best of our information and statements.
according to the explanations given to us, and based on Key audit matters
the consideration of report of another auditor on separate
Key audit matters are those matters that, in our professional
financial statements of a subsidiary and management
accounts of an associate, the aforesaid Consolidated judgment, were of most significance in our audit of the
Financial Statements give the information required by the consolidated financial statements of the current period.
Companies Act, 2013 (“Act”) in the manner so required and These matters were addressed in the context of our audit
give a true and fair view in conformity with the accounting of the consolidated financial statements as a whole, and
principles generally accepted in India, of the consolidated in forming our opinion thereon, and we do not provide a
state of affairs of the Group and its associate as at 31 March separate opinion on these matters.
2021, of its consolidated profit and consolidated cash flows
for the year ended on that date.

Provisions on advances
P/L Charge (including provision on Non Performing Advances (NPA), Identified Standard Advances, restructured
advances, COVID provisions and Write-off): Rs. 3,888 crore for year ended 31 March 2021
Provision on Advances (Including provision on Non Performing Advances (NPA), Identified Standard Advances and
Restructured Advances): Rs. 3,173 crore as at 31 March 2021
Refer to the accounting policies in “Note 17.02 to the Consolidated Financial Statements: Significant Accounting Policies –
Advances”, “Schedule 9 to the Consolidated Financial Statements: Advances”, “Note 18.05 to the Consolidated Financial
Statements: Provisions and Contingencies” and “Note 18.21 to the Consolidated Financial Statements: COVID-19 Regulatory
Package - Asset Classification and Provisioning.”
Subjective estimate Our key audit procedures included:
Provisions in respect of non-performing and restructured Design / controls
advances are made based on management’s assessment - Assessing the design, implementation and operating
of the degree of impairment of the advances subject to the effectiveness of key internal financial controls over
minimum provisioning levels prescribed under the Prudential monitoring of watch list loans, including monitoring
Norms on Income Recognition, Asset Classification & process of overdue loans (and those which became
Provisioning, prescribed by the RBI from time to time. overdue subsequent to the reporting date), measurement
The provision on non-performing assets (NPAs) are also of provision, identification of NPA accounts, assessing
based on the valuation of the security available. In case of the reliability of management information, which included
restructured accounts, provision is made in accordance with overdue reports. Also, assessing how management
the RBI guidelines. has evaluated the impact of stress in the overall
economic environment arising from COVID-19 in its NPA
We identified provision on non-performing advances as a
assessment.
key audit matter because of-
- Understanding management’s approach, interpretation,
1) the management judgement involved in determining the
systems and controls implemented in relation to NPA
provision;
computation.
2) any regulator mandated provision that may be needed
- For corporate loans, testing controls over the monitoring
for the portfolio of loans;
of the credit watch list, credit file review processes,
3) the dependency on the valuation of the security available approval of external collateral valuation vendors and
on NPAs; and review controls over the approval of significant individual
impairments.
4) because of its significance to the financial results of the
Bank. - Evaluating the design, implementation and operating
effectiveness of key internal controls over the valuation of
the securities for the NPAs and watch list cases.
- Testing of review controls over measurement of provisions
and disclosures in financial statements.
- Involving information system specialist to gain comfort
over data integrity and calculations, including system
reconciliations.
- Testing key controls operating over the information
technology in relation to NPA systems, including system
access and system change management, program
development and computer operations.
- Testing Bank’s controls relating to implementing
and actioning any RBI mandated specific provision
requirement.
228 IDFC FIRST Bank

Further, we have identified the impact of, and uncertainty Substantive tests
related to the COVID-19 pandemic as a key event and - Test of details over of calculation of NPA provisions,
CORPORATE OVERVIEW
consideration for recognition and measurement of NPAs including provisions on restructured loans, as at the
on account of greater levels of management judgement year-end for assessing the completeness, accuracy
and therefore increased levels of audit focus in the Bank’s and relevance of data and to ensure that the same is
estimation of provision for NPAs. in compliance with the Prudential Norms on Income
Recognition, Asset Classification & Provisioning and
Management has assessed the impact of COVID-19 on the
the Resolution Framework for Covid-19 related stress
loan portfolio in evaluating the need for recording additional
announced by the RBI .
provisions on loans at 31 March 2021.
- Select a sample of corporate loans to test potential cases
of loans repaid and disbursed to the same customer
during the period and fresh disbursement(s) to stressed
customers.
STATUTORY REPORTS
- Testing a sample (based on quantitative and
qualitative thresholds) of large sized corporate clients
where impairment indicators had been identified by
management. Obtaining management’s assessment
of the recoverability of these exposures (including
individual provisions calculations) and challenging
whether individual impairment provisions, or lack of, were
appropriate.
This included the following procedures:
• evaluating the statement of accounts, approval process,
committee meeting minutes, credit review of customers,
review of SMA reports and other related documents to
assess recoverability and the classification of the facility;
and
• assessing external collateral valuer’s work and the results
and comparing external valuations to values used in
management’s assessment.
- For a selection of corporate loans not identified as
displaying indicators of impairment by management,
independently challenging their assessment by
reviewing the historical performance of the customer
and formed our own view whether any impairment
indicators were present.
- Evaluating management’s rationale for making
additional provision on account of COVID-19 and
testing the computation.
- Assessing the factual accuracy and appropriateness
of the financial statements disclosures made by
the Bank in context of impact of COVID-19 and
restructured loans.

Assessment of the realizability of deferred tax assets
Deferred tax asset (net): Rs. 2,002 crore as at 31 March 2021
Refer to the accounting policies in “Note 17.08 to the Consolidated Financial Statements: Significant Accounting Policies –
Income Tax” and “Note 18.04 to the Consolidated Financial Statements: Deferred Tax”
Significant estimate and judgement involved Our key audit procedures included:
Recognition of deferred tax assets require a determination of • Assessing the design, implementation and operating
future taxable income based on the Bank’s expectations. The effectiveness of management’s key internal financial
assessment of realizability of deferred tax assets is based controls over the recognition of deferred tax assets.
on a virtual or reasonable certainty test, depending on the
• Obtained details of different components of deferred tax
composition of the deferred tax assets.
assets and details of estimates of taxable incomes for
Given the Bank’s recent financial performance and future periods as approved by the Board of Directors.
uncertainty in business growth on account of COVID-19, we
• Obtained confirmation where the future forecasts were
identified recognition of deferred tax assets as a key audit
approved in the meetings of the Board of Directors.
matter because of the significant management judgement
and assumptions involved in estimating the future taxable • Evaluating management assessment relating to the
income based on the income forecasts approved by the amendment in Income Tax Act and its consequential
Bank’s Board of Directors. impact on items that qualify for recognition of deferred
tax assets.
• Evaluating management assessment for estimating
availability of future taxable profits for determination of
recognition of deferred tax assets.
• Evaluated management’s considerations involved in
forecasting future taxable profits due to the uncertainty
on account of COVID-19.
• Assessed the period over which the deferred tax assets
would be recovered against future taxable income.
• Evaluated the Bank’s actual performance vis-à-vis the
budgets for the current and past years and discussed
with management their basis and assumptions in respect
of evidence to support that there will be sufficient taxable
income to absorb the deferred tax asset.
• Performed sensitivity analysis over the Bank’s
expectations of the future taxable income.
230 IDFC FIRST Bank

Valuation of Investments
Net Value of Investments: Rs. 45,182 crore as at 31 March 2021
CORPORATE OVERVIEW
Provision on depreciation on investments (including the amount related to standard identified investments):
Rs. (820) crore for year ended 31 March 2021
Refer to the accounting policies in “Note 17.01 to the Consolidated Financial Statements: Significant Accounting Policies-
Investments Classification”, “Schedule 8 to the Consolidated Financial Statements: Investments” and “Schedule 18.05 to
the Consolidated Financial Statements: Provision and Contingencies”
Subjective estimates and judgment involved Our key audit procedures included:
Investments Test of design / controls
Investments are classified into ‘Held for Trading’ (‘HFT’), - Assessed the design, implementation and operating
‘Available for Sale’ (‘AFS’) and ‘Held to Maturity’ (‘HTM’) effectiveness of management’s key internal financial
categories at the time of purchase. Investments, which controls over specific provisions on certain investments.
the Bank intends to hold till maturity are classified as HTM
STATUTORY REPORTS
- Evaluated controls relating to creation and reversal of
investments.
provisions
Investments classified as HTM are carried at amortised cost.
Substantive tests
Where, in the opinion of management, a diminution other
- For a selection of investments, we re-performed the
than temporary, in the value of investments has taken place,
valuation computation. For cases where no directly
appropriate provisions are required to be made.
observable inputs were used, we examined and re-
Investments classified as AFS and HFT are marked- to- performed the calculation basis the cashflows by using a
market on a periodic basis as per the relevant RBI guidelines. discounted cashflow method to compare the results with
that of the Bank’s which was computed in accordance
We identified valuation of investments as a key audit matter
with the relevant RBI guidelines.
because of the:
- We verified the management assessment of specific
- management judgement and external data involved in:
provisions against certain investments and evaluated the
• determining the value of certain investments like appropriateness of the provisions made and rationale
security receipts, venture capital units, pass through put forward by the Bank for reversal of such specific
certificates and unquoted equity securities; provision.
• creation and reversal of specific provisions on certain - Assessed whether the financial statement disclosures
identified investments; and appropriately reflect the Bank’s exposure to investments
with reference to the requirements of the prevailing RBI
• the overall significance of investments to the financial
guidelines.
statements of the Bank.
- We verified that the specific provision are netted off from
the carrying value of such investments in line with the
accounting policy of the Bank.

Information technology Our key IT audit procedures included:
Information Technology (IT) systems and controls - We focused on user access management, change
The Bank’s key financial accounting and reporting processes management, segregation of duties, system interface
are highly dependent on information systems including controls, system application controls and Information
automated controls in systems, such that there exists a risk Produced by entity (IPE) controls over key financial
that gaps in the IT control environment could result in the accounting and reporting systems.
financial accounting and reporting records being misstated.
- We tested a sample of key controls for data migration
Amongst its multiple IT systems, we scoped in systems that
operating over the information technology in relation to
are key for the overall financial reporting.
financial accounting and reporting systems, including
The Bank has also undertaken few data migration projects analysis of strategy documents, review of data mapping
post the merger in the last financial year. sheets and reconciliation confirmations from operations
team, user acceptance test (UAT) sign offs, incidents
Further, the prevailing COVID-19 situation has caused the
monitoring and approvals for pre and post migration.
required IT applications to be made accessible on a remote
basis. - We tested the design and operating effectiveness of key
controls over user access management which include
We have identified ‘IT systems and controls’ as a key audit
new user creation and granting access rights, removal of
matter because of the high level of automation, significant
user rights, user access review and preventive controls
number of systems being used by management and the
designed to enforce segregation of duties.
complexity of the IT architecture.
- For a selected group of key controls over financial
and reporting systems, we independently performed
procedures to determine that these controls remained
unchanged during the year or were changed following
the standard change management process.
- Other areas that were assessed included password
policies, security configurations, controls over changes
to applications and databases and controls to ensure
that developers and production support did not have
access to change applications, the operating system or
databases in the production environment.
- Performed inquiry for data security controls in the context
of a large population of staff working from remote location
at the year end.
Information Other than the Consolidated Financial Management’s and Board of Directors’ Responsibilities
Statements and Auditors’ Report Thereon” for the Consolidated Financial Statements
The Bank’s management and Board of Directors are The Bank’s management and Board of Directors are
responsible for the other information. The other information responsible for the preparation and presentation of these
comprises the information included in the Bank’s Annual consolidated financial statements in term of the requirements
Report, but does not include the consolidated financial of the Act that give a true and fair view of the consolidated
statements and our auditors’ report thereon. The Bank’s state of affairs, the consolidated profit and the consolidated
Annual report is expected to be made available to us after cash flows of the Group including its associate in accordance
the date of this auditor’s report. with the accounting principles generally accepted in India,
including the Accounting Standards specified under section
Our opinion on the consolidated financial statements does
133 of the Act and the circulars, and guidelines issued by
not cover the other information and we do not express any
Reserve Bank of India (‘RBI’) from time to time.
form of assurance conclusion thereon.
The respective Management and Board of Directors of
In connection with our audit of the consolidated financial
the companies included in the Group and of its associate
statements, our responsibility is to read the other information
are responsible for maintenance of adequate accounting
and, in doing so, consider whether the other information
records in accordance with the provisions of the Act for
is materially inconsistent with the consolidated financial
safeguarding of the assets of each Company and for
statements or our knowledge obtained in the audit or
preventing and detecting frauds and other irregularities;
otherwise appears to be materially misstated.
selection and application of appropriate accounting policies;
When we read the Bank’s Annual Report, if we conclude that making judgments and estimates that are reasonable and
there is a material misstatement therein, we are required to prudent; and the design, implementation and maintenance
communicate the matter to those charged with governance. of adequate internal financial controls, that were operating
232 IDFC FIRST Bank

effectively for ensuring accuracy and completeness of • evaluate the appropriateness of accounting policies
the accounting records, relevant to the preparation and used and the reasonableness of accounting estimates
presentation of the consolidated financial statements and related disclosures made by the Management and
that give a true and fair view and are free from material Board of Directors.
CORPORATE OVERVIEW
misstatement, whether due to fraud or error, which have
• conclude on the appropriateness of Management and
been used for the purpose of preparation of the consolidated
Board of Directors use of the going concern basis
financial statements by the Management and Directors of
of accounting in preparing consolidated financial
the Bank, as aforesaid.
statements and, based on the audit evidence obtained,
In preparing the consolidated financial statements, the whether a material uncertainty exists related to events
respective Management and Board of Directors of the or conditions that may cast significant doubt on the
companies included in the Group and of its associate are appropriateness of this assumption. If we conclude that
responsible for assessing the ability of each Company to a material uncertainty exists, we are required to draw
continue as a going concern, disclosing, as applicable, attention in our auditor’s report to the related disclosures
matters related to going concern and using the going concern in the consolidated financial statements or, if such
STATUTORY REPORTS
basis of accounting unless the respective management and disclosures are inadequate, to modify our opinion. Our
Board of Directors either intends to liquidate the Company conclusions are based on the audit evidence obtained
or to cease operations, or has no realistic alternative but to up to the date of our auditor’s report. However, future
do so. events or conditions may cause the Group and its
associate to cease to continue as a going concern.
The respective Board of Directors of the companies
included in the Group and of its associate are responsible • evaluate the overall presentation, structure and content
for overseeing the financial reporting process of each of the consolidated financial statements, including the
Company. disclosures, and whether the consolidated financial
statements represent the underlying transactions and
Auditor’s responsibilities for the Audit of the
events in a manner that achieves fair presentation.
Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about • obtain sufficient appropriate audit evidence regarding
whether the Consolidated Financial Statements as a whole the financial information of the entities or business
are free from material misstatement, whether due to fraud activities within the Group and its associate to express
or error, and to issue an auditor’s report that includes our an opinion on the consolidated financial statements.
opinion. Reasonable assurance is a high level of assurance, We are responsible for the direction, supervision and
but is not a guarantee that an audit conducted in accordance performance of the audit of the financial statements
with SAs will always detect a material misstatement when it of such entities included in the consolidated financial
exists. Misstatements can arise from fraud or error and are statements of which we are the independent auditors. For
considered material if, individually or in the aggregate, they the other entities included in the consolidated financial
could reasonably be expected to influence the economic statements, which have been audited by another
decisions of users taken on the basis of these consolidated auditors, such other auditor remains responsible for the
financial statements. direction, supervision and performance of the audits
carried out by them. We remain solely responsible for
As part of an audit in accordance with SAs, we exercise
our audit opinion. Our responsibilities in this regard are
professional judgment and maintain professional skepticism
further described in sub- paragraph (a) of the section
throughout the audit. We also:
titled ‘Other Matters’ in this audit report.
• identify and assess the risks of material misstatement
We believe that the audit evidence obtained by us along with
of the consolidated financial statements, whether due
the consideration of audit report of the other auditor referred
to fraud or error, design and perform audit procedures
to in sub-paragraph (a) of the Other Matters paragraph
responsive to those risks, and obtain audit evidence
below, is sufficient and appropriate to provide a basis for
that is sufficient and appropriate to provide a basis
our audit opinion on the Consolidated Financial Statements.
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for We communicate with those charged with governance of the
one resulting from error, as fraud may involve collusion, Holding Company in the Consolidated Financial Statements
forgery, intentional omissions, misrepresentations, or of which we are the independent auditors regarding, among
the override of internal control. other matters, the planned scope and timing of the audit
and significant audit findings, including any significant
• obtain an understanding of internal control relevant to
deficiencies in internal control that we identify during our
the audit in order to design audit procedures that are
audit.
appropriate in the circumstances. Under section 143(3)
(i) of the Act, we are also responsible for expressing our We also provide those charged with governance with a
opinion on the internal financial controls with reference statement that we have complied with relevant ethical
to consolidated financial statements and the operating requirements regarding independence, and to communicate
effectiveness of such controls based on our audit. with them all relationships and other matters that may

reasonably be thought to bear on our independence, and associate, as noted in the ‘Other Matters’ paragraph,
where applicable, related safeguards. we report, to the extent applicable, that:
From the matters communicated with those charged with a) we have sought and obtained all the information
governance, we determine those matters that were of and explanations which to the best of our
most significance in the audit of the consolidated financial knowledge and belief were necessary for the
statements of the current period and are therefore the key purposes of our audit of the aforesaid consolidated
audit matters. We describe these matters in our auditor’s financial statements;
report unless law or regulation precludes public disclosure
b) in our opinion, proper books of account as required
about the matter or when, in extremely rare circumstances,
by law relating to preparation of the aforesaid
we determine that a matter should not be communicated
consolidated financial statements have been kept
in our report because the adverse consequences of doing
so far as it appears from our examination of those
so would reasonably be expected to outweigh the public
books and the reports of the other auditors;
interest benefits of such communication.
c) the consolidated balance sheet, the consolidated
Other Matters
profit and loss account, and the consolidated
(a) We did not audit the financial statements of 1 subsidiary
cash flow statement dealt with by this Report are
whose financial statements reflect total assets of Rs.
in agreement with the relevant books of account
299 crore as at 31 March 2021, total revenues of Rs.
maintained for the purpose of preparation of the
464 crore and net cash flows amounting to Rs. 111
consolidated financial statements;
crore for the year ended on that date, as considered in
the consolidated financial statements. These financial d) in our opinion, the aforesaid consolidated financial
statements have been audited by other auditors whose statements comply with the Accounting Standards
reports have been furnished to us by the Management specified under Section 133 of the Act to the extent
and our opinion on the consolidated financial they are not inconsistent with the accounting
statements, in so far as it relates to the amounts and policies prescribed by RBI;
disclosures included in respect of the subsidiary and
e) on the basis of the written representations received
associate, and our report in terms of sub-section (3)
from the directors of the Bank as on 31 March
of Section 143 of the Act, in so far as it relates to the
2021 taken on record by the Board of Directors of
aforesaid subsidiary is based solely on the audit report
the Bank and the reports of the statutory auditor
of the other auditor.
of its subsidiary company, none of the directors
(b) The consolidated financial statements also include the of the Group companies is disqualified as on 31
Group’s share of net loss of Rs. NIL for the year ended March 2021 from being appointed as a director in
31 March 2021, as considered in the consolidated terms of Section 164(2) of the Act; and
financial statements, in respect of 1 associate, whose
f) with respect to the adequacy of the internal financial
financial statements have not been audited by us or by
controls with reference to financial statements
other auditors. These unaudited financial statements
of the Bank and its subsidiary company and the
have been furnished to us by the Management and our
operating effectiveness of such controls, refer to
opinion on the consolidated financial statements, in so
our separate Report in “Annexure A”;
far as it relates to the amounts and disclosures included
in respect of this associate and our report in terms of B. With respect to the other matters to be included in
sub-sections (3) of Section 143 of the Act in so far as the Auditor’s Report in accordance with Rule 11 of
it relates to the aforesaid associate, is based solely on the Companies (Audit and Auditor’s) Rules, 2014,
such unaudited financial statements. In our opinion and in our opinion and to the best of our information and
according to the information and explanations given to according to the explanations given to us and based
us by the Management, these financial statements are on the consideration of the report of the other auditors
not material to the Group. on separate financial statements of the subsidiary and
management accounts for the associate as noted in the
Our opinion on the consolidated financial statements, and
‘Other Matters’ paragraph:
our report on Other Legal and Regulatory Requirements
below, is not modified in respect of the above matters with i. The consolidated financial statements disclose
respect to our reliance on the work done and the reports of the impact of pending litigations as at 31 March
the other auditors and the financial statements certified by 2021 on the consolidated financial position of the
the Management. Group. Refer Schedule 12 and Note 18.18 to the
consolidated financial statements.
Report on Other Legal and Regulatory Requirements
A. As required by Section 143(3) of the Act, based on our ii. Provision has been made in the consolidated
audit and on the consideration of report of the other financial statements, as required under the
auditors on separate financial statements and the other applicable law or accounting standards, for
financial information of such subsidiary as were audited material foreseeable losses, on long-term
by other auditors and management accounts of the contracts including derivative contracts. Refer
234 IDFC FIRST Bank

Schedule 12 and Note 18.18 to the consolidated of the Act is not applicable and based on the reports
financial statements in respect of such items as it of the statutory auditor of such subsidiary company
relates to the Group. which were not audited by us, the remuneration paid
during the current year by the subsidiary company to
CORPORATE OVERVIEW
iii. There has been no delay in transferring amounts
its directors is in accordance with the provisions of
to the Investor Education and Protection Fund by
Section 197 of the Act. The remuneration paid to any
the Bank or its subsidiary company during the
director by the subsidiary company is not in excess of
year ended 31 March 2021.
the limit laid down under Section 197 of the Act. The
iv. The disclosures regarding holdings as well as Ministry of Corporate Affairs has not prescribed other
dealings in specified bank notes during the details under Section 197(16) which are required to be
period from 8 November 2016 to 30 December commented upon by us.
2016 have not been made in the consolidated
financial statements since they do not pertain to For B S R & Co. LLP
the financial year ended. Chartered Accountants
ICAI Firm Registration No: 101248W/W-100022
STATUTORY REPORTS
C. With respect to the other matters to be included in the
Auditor’s Report in accordance with the requirements Manoj Kumar Vijai
of section 197(16) of the Act, as amended: Partner
Membership No:046882
In our opinion and to the best of our information
UDIN: 21046882AAAAAI6941
and according to the explanations given to us,
being a banking company, Section 35B (2A) of the Place: Mumbai
Banking Regulation Act, 1949 regarding managerial Date: 8 May 2021
remuneration applies to the Bank and Section 197 (16)

Annexure A to the Independent Auditor’s Report
on the consolidated financial statements of IDFC FIRST Bank Limited for the period ended 31 March 2021
Report on the internal financial controls with reference to the aforesaid consolidated financial statements under
Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
(Referred to in paragraph (A (f)) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of
even date)
Opinion with ethical requirements and plan and perform the audit
In conjunction with our audit of the consolidated financial to obtain reasonable assurance about whether adequate
statements of IDFC FIRST Bank Limited as of and for the internal financial controls with reference to consolidated
year ended 31 March 2021, we have audited the internal financial statements were established and maintained and
financial controls with reference to consolidated financial if such controls operated effectively in all material respects.
statements of IDFC FIRST Bank Limited (hereinafter referred
Our audit involves performing procedures to obtain audit
to as “the Holding Company”), as of that date.
evidence about the adequacy of the internal financial
In our opinion, the Holding Company and its subsidiary controls with reference to consolidated financial statements
company, have, in all material respects, adequate internal and their operating effectiveness. Our audit of internal
financial controls with reference to consolidated financial financial controls with reference to consolidated financial
statements and such internal financial controls were statements included obtaining an understanding of internal
operating effectively as at 31 March 2021, based on the financial controls with reference to consolidated financial
internal financial controls with reference to consolidated statements, assessing the risk that a material weakness
financial statements criteria established by such companies exists, and testing and evaluating the design and operating
considering the essential components of such internal effectiveness of the internal controls based on the assessed
controls stated in the Guidance Note on Audit of Internal risk. The procedures selected depend on the auditor’s
Financial Controls Over Financial Reporting issued by the judgement, including the assessment of the risks of material
Institute of Chartered Accountants of India (the “Guidance misstatement of the consolidated financial statements,
Note”). whether due to fraud or error.
Management’s responsibility for internal financial We believe that the audit evidence we have obtained
controls and the audit evidence obtained by the other auditors of
The respective Company’s management and the Board of the relevant subsidiary company in terms of their reports
Directors are responsible for establishing and maintaining referred to in the Other Matters paragraph below, is sufficient
internal financial controls with reference to consolidated and appropriate to provide a basis for our audit opinion on
financial statements based on the criteria established the internal financial controls with reference to consolidated
by the respective company considering the essential financial statements.
components of internal control stated in the Guidance Note.
Meaning of internal financial controls with reference to
These responsibilities include the design, implementation
consolidated financial statements
and maintenance of adequate internal financial controls
A company’s internal financial controls with reference to
that were operating effectively for ensuring the orderly and
consolidated financial statements is a process designed
efficient conduct of its business, including adherence to
to provide reasonable assurance regarding the reliability of
the respective company’s policies, the safeguarding of its
financial reporting and the preparation of financial statements
assets, the prevention and detection of frauds and errors,
for external purposes in accordance with generally
the accuracy and completeness of the accounting records,
accepted accounting principles. A company’s internal
and the timely preparation of reliable financial information,
financial controls with reference to consolidated financial
as required under the Companies Act, 2013 (hereinafter
statements includes those policies and procedures that (1)
referred to as “the Act”).
pertain to the maintenance of records that, in reasonable
Auditors’ responsibility detail, accurately and fairly reflect the transactions and
Our responsibility is to express an opinion on the internal dispositions of the assets of the company; (2) provide
financial controls with reference to consolidated financial reasonable assurance that transactions are recorded as
statements based on our audit. We conducted our audit in necessary to permit preparation of financial statements in
accordance with the Guidance Note and the Standards on accordance with generally accepted accounting principles,
Auditing, prescribed under section 143(10) of the Act, to the and that receipts and expenditures of the company are
extent applicable to an audit of internal financial controls being made only in accordance with authorisations of
with reference to consolidated financial statements. Those management and directors of the company; and (3) provide
Standards and the Guidance Note require that we comply reasonable assurance regarding prevention or timely
236 IDFC FIRST Bank

detection of unauthorised acquisition, use, or disposition of Other matters
the company’s assets that could have a material effect on Our aforesaid report under Section 143 (3) (i) of the Act
the financial statements. on the adequacy and operating effectiveness of the
internal financial controls with respect to consolidated
CORPORATE OVERVIEW
Inherent limitations of internal financial controls with
financial statements insofar as it relates to a subsidiary
reference to consolidated financial statements
which is a company incorporated in India, is based on
Because of the inherent limitations of internal financial
the corresponding report of the auditor of such company
controls with reference to consolidated financial statements,
incorporated in India.
including the possibility of collusion or improper management
override of controls, material misstatements due to error or Our opinion is not modified in respect of the above matter.
fraud may occur and not be detected. Also, projections of
any evaluation of the internal financial controls with reference For B S R & Co. LLP
to consolidated financial statements to future periods are Chartered Accountants
subject to the risk that the internal financial controls with ICAI Firm Registration No: 101248W/W-100022
reference to consolidated financial statements may become
STATUTORY REPORTS
inadequate because of changes in conditions, or that the Manoj Kumar Vijai
degree of compliance with the policies or procedures may Partner
deteriorate. Membership No:046882
UDIN: 21046882AAAAAI6941
Place: Mumbai
Date: 8 May 2021

Consolidated Balance Sheet
(` in Thousands)
As at As at
Particulars Schedule No.
March 31, 2021 March 31, 2020
Capital and Liabilities
Capital 1 56,758,499 48,099,030
Employees' stock options outstanding 1a 974 -
Reserves and surplus 2 122,237,676 105,936,199
Deposits 3 885,362,442 650,789,413
Borrowings 4 457,860,854 573,971,855
Other liabilities and provisions 5 108,494,798 112,789,021
TOTAL 1,630,715,243 1,491,585,518
Assets
Cash and balances with Reserve Bank of India 6 46,695,475 33,484,198
Balances with Banks and money at call and short notice 7 11,035,770 8,144,241
Investments 8 451,815,865 451,744,235
Advances 9 1,005,501,259 855,953,595
Fixed assets 10 12,959,304 10,732,314
Other assets 11 102,707,570 131,526,935
TOTAL 1,630,715,243 1,491,585,518
Contingent liabilities 12 2,124,865,217 2,806,789,233

Bills for collection 12,853,780 9,149,534
The schedules and the accompanying notes to accounts referred to above form an integral part of the consolidated Balance Sheet.
As per our report of even date

The balance sheet has been prepared in conformity with form ‘B’ of the Third Schedule to the Banking Regulation Act, 1949


238 IDFC FIRST Bank

Consolidated Profit & Loss Account
CORPORATE OVERVIEW
(` in Thousands)
Schedule No.
March 31, 2021 March 31, 2020
I Income
Interest earned 13 159,681,523 162,403,190
Other income 14 22,538,021 17,224,087
TOTAL 182,219,544 179,627,277
II Expenditure
Interest expended 15 85,851,273 102,282,695
STATUTORY REPORTS
Operating expenses 16 70,529,490 57,647,959
Provisions and contingencies 18.05 21,006,988 48,130,527
TOTAL 177,387,751 208,061,181
Net Profit/(Loss) before share in Profit / (Loss) of associates 4,831,792 (28,433,904)
Add : Share in Profit / (Loss) of associates - -
III Consolidated Profit / (Loss) for the year
4,831,792 (28,433,904)
attributable to the group
Balance in profit and loss account brought forward from previous (34,993,352) (4,899,448)
year
IV Amount Available for Appropriation (30,161,560) (33,333,352)
V Appropriations :
Transfer to statutory reserve 18.06 1,135,000 -
Transfer to investment reserve 18.06 3,350,000 -
Transfer to capital reserve 18.06 1,485,000 1,660,000
Transfer to special reserve 18.06 240,000 -
Transfer to investment fluctuation reserve 18.06 - -
Dividend paid (includes tax on dividend) 18.13 - -
Balance in profit and loss account carried forward (36,371,560) (34,993,352)
TOTAL (30,161,560) (33,333,352)
VI Earnings per Share 18.08
(Face value ` 10 per share)
Basic (`) 0.88 (5.94)
Diluted (`) 0.87 (5.86)
The schedules and the accompanying notes to accounts referred to above form an integral part of the consolidated Profit and Loss
Account
As per our report of even date



Cash Flow Statement
(` in Thousands)
Schedule No.
March 31, 2021 March 31, 2020
A Cash flow from operating activities
Profit / (Loss) after tax 4,831,792 (28,433,904)
Add: Provision for tax 358,048 4,974,955
Net profit / (loss) before taxes 5,189,840 (23,458,949)
Adjustments for :
Depreciation on fixed assets 16 (V) 3,425,065 3,200,069
Amortization of deferred employee compensation 16 (I) 974 -
Amortisation of premium on held to maturity investments 1,061,129 1,286,952
Provision on depreciation in value of investments 18.05 (8,203,859) 10,514,904
Provision / (write back) towards non performing advances 18.05 9,450,777 4,415,807
Provision / (write back) for restructured assets 18.05 993,198 205,915
Provision / (Write back) on identified standard assets 18.05 811,004 (410,618)
Provision for standard assets 18.05 958,147 3,309,472
Bad debts including technical / prudential write off 18.05 23,870,190 13,864,356
Loss/(Profit) on sale of fixed assets (net) 14 (IV) (157,597) (161)
Other provisions and contingencies 18.05 (7,230,516) 11,255,735
Adjustments for :
(Increase) / decrease in investments (excluding held to 29,909,121 152,616,283
maturity investment and investment in subsidiary)
Increase in advances (183,578,718) (11,006,196)
Increase / (Decrease) in deposits 234,573,029 (52,746,494)
(Increase) / Decrease in other assets 30,489,977 (25,751,783)
Increase / (Decrease) in other liabilities and provisions (6,320,221) 23,853,657
Direct taxes (paid) / refund (net) 5,175,591 (1,493,593)
Net cash flow generated from operating activities (A) 140,417,131 109,655,356
B Cash flow from investing activities
Purchase of fixed assets (5,859,728) (4,275,961)
Proceeds from sale of fixed assets 365,271 84,144
Increase in held to maturity investments (22,838,021) (33,710,082)
Net cash flow used in investing activities (B) (28,332,478) (37,901,899)
240 IDFC FIRST Bank

Cash Flow Statement
CORPORATE OVERVIEW
C Cash flow from financing activities
Decrease in borrowings (116,111,000) (125,862,047)
Proceeds from issue of share capital 20,129,152 475,496
Net cash flow used in financing activities (C) (95,981,848) (125,386,551)
D Net increase / (decrease) in cash and cash equivalents 16,102,805 (53,633,094)
(A+B+C)
Cash and cash equivalents at the beginning of the year 41,628,440 95,261,534
STATUTORY REPORTS
Represented by :
Cash and Balances with Reserve Bank of India 6 46,695,475 33,484,198
Balances with Banks and Money at Call and Short Notice 7 11,035,770 8,144,241



Schedules
forming part of the Consolidated Balance Sheet as at March 31, 2021
Schedule 1 - Capital
(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
Authorised capital
7,500,000,000 (Previous Year - 5,325,000,000) equity shares of ` 10 each 75,000,000 53,250,000
3,800,000 (Previous Year - 3,800,000) Preference shares of ` 100 each 380,000 380,000
Equity Share Capital
Issued, subscribed and paid-up capital ^
5,675,849,855 (Previous Year - 4,809,903,016) equity shares of ` 10 each, fully paid up 56,758,499 48,099,030
TOTAL 56,758,499 48,099,030
^Includes 3,506,135 equity shares (Previous Year 28,226,604 equity shares) allotted pursuant to the exercise of options under the
Employee Stock Option Scheme.
Also includes additional capital raised by Holding Company aggregating to ` 2,000 crore (rounded off) on a preferential basis
through issuance of 862,440,704 equity shares, fully paid-up, at the price of ` 23.19/- per equity share (including premium).
SCHEDULE 1a - EMPLOYEES’ STOCK OPTIONS OUTSTANDING

Employees’ stock option outstanding 974 -
TOTAL 974 -
Schedule 2 - Reserves and Surplus

(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Statutory reserves
Additions during the year (refer note 18.06) 1,135,000 -
II Capital reserves
Additions during the year (refer note 18.06) 1,485,000 1,660,000
III Share premium
Opening balance 118,142,291 117,949,061
Additions during the year 11,469,684 193,230
Closing balance 129,611,975 118,142,291
IV General reserve
V Amalgamation Reserve (2,317,951) (2,317,951)
VI Special reserve
Additions during the year (refer note 18.06) 240,000 -
242 IDFC FIRST Bank

Schedules
CORPORATE OVERVIEW
(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
VII Investment Fluctuation Reserve
Opening balance - -
Closing balance - -
VIII Investment Reserve Account (IRA)
STATUTORY REPORTS
Opening balance - -
Additions during the year 3,350,000 -
Deduction during the year (refer note 18.06) - -
Closing balance 3,350,000 -
IX Balance in Profit and Loss Account (36,371,560) (34,993,352)
TOTAL (I+II+III+IV+V+VI+VII+VIII+IX) 122,237,676 105,936,199
Schedule 3 - Deposits
(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
A I Demand deposits
(i) From banks 3,343,654 1,599,190
(ii) From others 50,207,547 40,790,053
II Savings bank deposits 404,805,164 166,929,213
III Term deposits
(i) From banks 24,490,499 19,604,899
(ii) From others 402,515,578 421,866,058
TOTAL (I+II+III) 885,362,442 650,789,413
B I Deposits of branches in India 885,362,442 650,789,413
II Deposits of branches outside India - -
TOTAL (I+II) 885,362,442 650,789,413
Schedule 4 - Borrowings
(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Borrowings in India
(i) Reserve Bank of India - -
(ii) Other banks ^ 17,746,794 40,924,349
(iii) Other institutions and agencies$ 411,357,414 486,367,444
II Borrowings outside India 28,756,646 46,680,062
TOTAL (I + II) 457,860,854 573,971,855
Secured borrowings included in I and II above* 50,824,682 70,855,239
^ Borrowings from banks include long term infrastructure bonds of ` 281.50 crore (Previous Year ` 281.50 crore).
$ Borrowings from other institutions and agencies include long term infrastructure bonds of ` 9,226.80 crore (Previous Year ` 10,152.50 crore)
and Bonds under section 80CCF of the Income tax Act, 1961 of ` 855.08 crore (Previous Year ` 1,689.92 crore).
* Secured borrowings includes borrowings under Collateralised Borrowing and Lending Obligation / Triparty Repo (TREPS), market repurchase
transactions with banks & financial institutions, transactions under Liquidity Adjustment Facility and Marginal Standing Facility secured against
Government Securities.

Schedules
Schedule 5 - Other Liabilities and Provisions

(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Bills payable 9,155,950 3,831,576
II Inter-office adjustments (net) - -
III Interest accrued 25,267,114 34,886,084
IV Contingent provision against standard assets 9,594,974 7,542,712
V Others (including provisions) 64,476,760 66,528,649
TOTAL (I + II + III + IV + V) 108,494,798 112,789,021
Schedule 6 - Cash and Balances with Reserve Bank of India

(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Cash in hand (including foreign currency notes) 5,012,304 4,718,977
II Balances with Reserve Bank of India:
(i) In current accounts 41,683,171 28,765,221
(ii) In other accounts - -
TOTAL (I + II) 46,695,475 33,484,198
Schedule 7 - Balances with Banks and Money at call and short notice
(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I In India
(i) Balance with banks
(a) In current accounts 2,847,839 1,840,697
(b) In other deposit accounts - -
(ii) Money at call and short notice
(a) With banks 4,470,000 5,250,000
(b) With other institutions 958,978 -
TOTAL 8,276,817 7,090,697
II Outside India
(i) In current accounts 398,324 189,669
(ii) In other deposit accounts - -
(iii) Money at call and short notice 2,360,629 863,875
TOTAL 2,758,953 1,053,544
GRAND TOTAL (I+II) 11,035,770 8,144,241
244 IDFC FIRST Bank

Schedules
CORPORATE OVERVIEW
Schedule 8 - Investments (Net of Provisions)
(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Investments in India in:
(i) Government securities 354,464,011 330,138,163
(ii) Other approved securities - -
(iii) Shares* 4,637,847 3,849,701
(iv) Debentures and bonds 40,919,490 50,797,993
STATUTORY REPORTS
(v) Others (venture capital funds, security receipts, PTCs etc.) 51,791,257 66,955,118
Total Investments in India 451,812,605 451,740,975
II Investments Outside India in:

(i) Government securities (including local authorities) - -
(ii) Subsidiaries and/or joint ventures abroad - -
(iii) Others (Equity Shares) 3,260 3,260
Total Investments outside India 3,260 3,260
GRAND TOTAL (I+II) 451,815,865 451,744,235
* Includes investments in associates
Schedule 9 - Advances (net of provisions)
(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
A (i) Bills purchased and discounted 17,346,701 15,650,404
(ii) Cash credits, overdrafts and loans repayable on demand 65,618,583 55,798,000
(iii) Term loans# 922,535,975 784,505,191
TOTAL 1,005,501,259 855,953,595
B (i) Secured by tangible assets * 568,100,921 516,370,564

(ii) Covered by bank / government guarantees $ 18,917,010 9,846,717
(iii) Unsecured 418,483,328 329,736,314
TOTAL 1,005,501,259 855,953,595
CI Advances in India
(i) Priority sector 272,239,206 199,738,539
(ii) Public sector 3,600,000 8,600,000
(iii) Banks 2,907,752 3,138,122
(iv) Others 726,754,301 644,476,934
TOTAL 1,005,501,259 855,953,595
C II Advances Outside India
(i) Due from banks - -
(ii) Due from others :
(a) Bills purchased and discounted - -
(b) Syndicated loans - -
(c) Others - -
TOTAL - -
GRAND TOTAL (C I+C II) 1,005,501,259 855,953,595
The above advances are net of provisions of ` 3,173.12 crore (Previous Year ` 2,153.36 crore).
# Net of borrowings under Inter Bank Participation Certificate (IBPC) Nil for current year (previous year ` 3,484.12 crore)
* Includes advances against book debts
$ Includes advances against LCs issued by banks

Schedules
Schedule 10 - Fixed Assets

(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Premises (including land)
Gross block
Additions during the year - -
TOTAL 2,873,161 3,001,176
Depreciation
As at the beginning of the year 588,914 536,831
Charge for the year 51,422 52,083
Depreciation to date 604,188 588,914
Net block of premises 2,268,973 2,412,262
II Other fixed assets (including furniture and fixtures) (refer note 18.11)
Gross block
Additions during the year 5,859,728 3,872,505
TOTAL 48,681,388 43,127,015
Depreciation
As at the beginning of the year 35,551,563 32,671,406
Charge for the year 3,373,642 3,147,986
Depreciation to date 38,643,764 35,551,563
Net block of other fixed assets (including furniture and fixtures) 10,037,624 7,575,452
III CAPITAL WORK-IN-PROGRESS (including capital advances) 652,707 744,600

GRAND TOTAL (I+II+III) 12,959,304 10,732,314
246 IDFC FIRST Bank

Schedules
CORPORATE OVERVIEW
Schedule 11 - Other Assets
(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Inter-office adjustments (net) - -
II Interest accrued 16,751,212 16,593,655
III Tax paid in advance / tax deducted at source (net of provisions) 5,330,643 10,643,405
IV Stationery and stamps 176 97
V Non banking assets acquired in satisfaction of claims - -
STATUTORY REPORTS
VI Others * 80,625,539 104,289,778
TOTAL ( I + II + III + IV + V + VI) 102,707,570 131,526,935
* Includes RIDF Deposit of ` 2,515.53 crore (Previous Year ` 2,736.59 crore), Deferred Tax Asset (net) of ` 2,001.64 crore (Previous Year
` 2,023.73 crore) and share issue expenses of ` 41.18 crore which shall be adjusted against securities premium to the extent permissible under
Companies Act, 2013 on the date of completion of Qualified Institutional Placement i.e. April 6, 2021.
Schedule 12 - Contingent Liabilities

(` in Thousands)
As at As at
March 31, 2021 March 31, 2020
I Claims against the group not acknowledged as debts 684,615 640,506
II Liability for partly paid investments 255,816 143,993
III Liability on account of forward exchange and derivative contracts :
(a) Forward Contracts 686,623,792 732,933,712
(b) Interest rate swaps, currency swaps, forward rate agreement and interest 1,175,398,844 1,740,855,788
rate futures
(c) Foreign currency options 19,700,180 75,460,600
Total (a+b+c) 1,881,722,816 2,549,250,100
IV Guarantees given on behalf of constituents
In India 151,181,907 165,222,583
Outside India - -
V Acceptances, endorsements and other obligations 84,122,392 89,279,212
VI Other items for which the group is contingently liable 6,897,671 2,252,839
GRAND TOTAL (I+II+III+IV+V+VI) 2,124,865,217 2,806,789,233

Schedules
forming part of Consolidated Profit and Loss Account for the year ended March 31, 2021
Schedule 13 - Interest Earned

(` in Thousands)
March 31, 2021 March 31, 2020
I Interest / discount on advances / bills 126,329,781 120,071,674
II Income on investments 30,392,107 39,172,849
III Interest on balances with Reserve Bank of India and other inter-bank funds 1,123,126 805,243
IV Others * 1,836,509 2,353,424
TOTAL 159,681,523 162,403,190
* Includes interest on income tax refunds amounting to ` 32.99 crore (Previous Year ` 42.89 crore).
Schedule 14 - Other Income

(` in Thousands)
March 31, 2021 March 31, 2020
I Commission, exchange and brokerage 14,995,496 14,201,187
II Profit / (loss) on sale of investments (net) 5,969,578 3,904,461
III Profit / (loss) on revaluation of investments (net) - -
IV Profit / (loss) on sale of land, building and other fixed assets (net) 157,597 161
V Profit / (loss) on exchange/derivative transactions (net) 1,360,828 (1,106,447)
VI Income earned by way of dividends etc. from subsidiaries / companies and / or - -
joint venture abroad / in India
VII Miscellaneous Income 54,522 224,725
TOTAL 22,538,021 17,224,087
Schedule 15 - Interest Expended

(` in Thousands)
March 31, 2021 March 31, 2020
I Interest on deposits 47,326,152 47,080,677
II Interest on borrowings from Reserve Bank of India / inter-bank borrowings 11,133,766 15,925,879
III Others 27,391,355 39,276,139
TOTAL 85,851,273 102,282,695
Schedule 16 - Operating Expenses

(` in Thousands)
March 31, 2021 March 31, 2020
I Payments to and provisions for employees 23,015,156 17,950,057
II Rent, taxes and lighting 3,432,670 2,917,583
III Printing and stationery 514,495 641,293
IV Advertisement and publicity 822,222 1,394,955
V Depreciation on group's property 3,425,065 3,200,069
VI Directors' fees, allowance and expenses 24,966 19,932
VII Auditors' fees and expenses 43,608 40,497
VIII Law charges 377,558 73,853
IX Postage, telegrams, telephones etc. 839,641 882,438
X Repairs and maintenance 1,297,634 1,930,547
XI Insurance 902,986 536,293
XII Other expenditure 35,833,489 28,060,442
TOTAL 70,529,490 57,647,959
248 IDFC FIRST Bank

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forming part of the Consolidated Financial Statements as at and for the year ended March 31, 2021
CORPORATE OVERVIEW
17 Significant accounting policies forming part of The consolidated financial statements present the
the consolidated financial statements for the accounts of IDFC FIRST Bank Limited, IDFC FIRST
year ended March 31, 2021 Bharat Limited and its associate for the full year.
A Background Country of
Ownership Interest
Name Relation
IDFC FIRST Bank Limited (Formerly IDFC Bank Limited) Incorporation March 31, March 31,
2021 2020
(“the Bank”) was incorporated on October 21, 2014 as a
IDFC FIRST 100.00% 100.00%
Company under the Companies Act, 2013. Further, the
Bharat Limited
Bank commenced its banking operations on October Subsidiary India
(formerly IDFC
1, 2015 after receiving universal banking license from Bharat Limited)
STATUTORY REPORTS
the Reserve Bank of India (‘the RBI’) on July 23, 2015. Millennium City 29.98% 29.98%
Expressways Associate India
The Bank has 598 branches and 156 Banking Outlets Private Limited
in India. The Bank’s shares are listed on National Stock
Exchange of India Limited and BSE Limited. The audited financial statements of the subsidiary
IDFC FIRST Bharat Limited is the subsidiary of the Bank. company and the un-audited financial statements of
IDFC FIRST Bharat Limited (“the Subsidiary”) operates associate have been drawn up to the same reporting
as business correspondent. date as that of the Bank, i.e. March 31, 2021.
B Principles of Consolidation The standalone financial statements of the subsidiary

The consolidated financial statements comprise the has been prepared in accordance with notified Indian
financial statements of IDFC FIRST Bank Limited (‘the Accounting Standards(‘Ind-AS’) with effect from April
Holding company’ or ‘the Bank’) and its subsidiary, 1, 2018. The financial statements of the subsidiary
which together constitute ‘the Group’. used for consolidation of the consolidated financial
statements are special purpose financial statements
The Bank consolidates its subsidiary in accordance prepared in accordance with Generally Accepted
with AS-21, Consolidated Financial Statements notified Accounting Principles in India (‘GAAP’) specified under
under Section 133 of the Companies Act, 2013 read Section 133 of the Companies Act, 2013 read together
together with para 7 of the Companies (Accounts) Rules, with paragraph 7 of the Companies (Accounts) Rules,
2014 and the Companies (Accounting Standards) 2014 and the Companies (Accounting Standards)
Amendment Rules, 2016 on a line-by-line basis by adding Amendment Rules, 2016.
together the like items of assets, liabilities, income and
expenditure. All significant inter-company accounts and In case the accounting policies followed by a subsidiary
transactions are eliminated on consolidation. Further, are different from those followed by the Bank, the same
the Bank accounts for investments in associates in have been disclosed in the respective accounting
accordance with AS-23, Accounting for Investments policy.
in Associates in Consolidated Financial Statements, D Use of estimates
notified under Section 133 of the Companies Act, The preparation of financial statements in conformity
2013 of the Companies (Accounts) Rules, 2014 and with the Generally Accepted Accounting Principles
the Companies (Accounting Standards) Amendment requires the Management to make estimates and
Rules, 2016 using the equity method of accounting. assumptions that affects the reported amount of assets
C Basis of preparation and liabilities, revenues and expenses and disclosure
The financial statements have been prepared based of contingent liabilities at the date of the financial
on historical cost convention and accrual basis statements. The management believes that the
of accounting, unless otherwise stated and are in estimates used in preparation of financial statements
accordance with the requirements prescribed under are prudent and reasonable. Actual results could differ
Section 29 and third schedule of the Banking Regulation from these estimates. Any revision to the accounting
Act, 1949 and in conformity with Generally Accepted estimates is recognised prospectively in the current
Accounting Principles in India to comply with the and future periods.
statutory requirements prescribed under the circulars E Significant accounting policies :
and guidelines issued by the RBI from time to time 17.01 Investments
and the Accounting Standards notified under section Classification :
133 of the Companies Act, 2013, read together with
Companies (Accounts) Rules, 2014 and the Companies In accordance with the RBI Guidelines on investment
(Accounting Standards) Amendment Rules, 2016 to the classification and valuation; Investments are classified
extent applicable and practices generally prevalent in into:
the banking industry in India. • Held for Trading (HFT),

Schedules
• Available for Sale (AFS) and Benchmark India Pvt. Ltd. (‘FBIL’), periodically.
• Held to Maturity (HTM). • The valuation of other unquoted fixed income
securities (viz. State Government securities, Other
Transfer of securities between categories of investments
approved securities, Bonds and Debentures) and
is accounted as per the RBI guidelines. However, for
preference shares, wherever linked to the YTM
disclosure in the Balance Sheet, investments in India are
rates, is done with a mark-up (reflecting associated
classified under six categories - Government Securities,
credit and liquidity risk) over the YTM rates for
Other approved securities, Shares, Debentures and
government securities published by FIMMDA /
Bonds, Investment in Subsidiaries/Joint Ventures and
FIBIL. For Tax-free bonds, the valuation is done
Others.
after grossing up the coupon in line with FIMMDA/
Basis of classification and accounting : FBIL guidelines.
Investments that are held principally for resale within
• Unquoted equity shares are valued at the break-
90 days from the date of purchase are classified under
up value, if the latest balance sheet is available or
HFT category. Further, as per the RBI guidelines, HFT
at ` 1 as per the RBI guidelines.
securities, which remain unsold for a period of 90 days
are reclassified to AFS category. Investments which • Units of mutual funds are valued at the latest
the Bank intends to hold till maturity are classified as repurchase price / net asset value (‘NAV’) declared
HTM securities. Investments which are not classified in by the mutual fund.
either of the above categories are classified under AFS
• Treasury Bills, Commercial Papers and Certificate
category. Purchase and sale transactions in securities
of Deposits being discounted instruments, are
are recorded under settlement date of accounting,
valued at carrying cost. Accretion of discount on
except in the case of equity shares where trade date
discounted Money Market Securities is computed
accounting is followed.
on straight line method and for long term
Cost of acquisition : discounted securities, constant YTM method is
• Costs including brokerage and commission used.
pertaining to investments paid at the time of
• Security receipts (‘SR’) are valued as per NAV as
acquisition are charged to the Profit and Loss
provided by the Reconstruction Company (‘RC’) /
Account.
Securitization Company (‘SC’).
• Cost of investments is computed based on First in
• Units of Venture Capital Funds (‘VCF’) and
First out Method for all categories of Investments
Alternate Investment Fund (‘AIF’) held under AFS
including Short sales.
category are marked to market based on the NAV
• Broken period interest (the amount of interest from provided by VCF/AIF based on the latest audited
the previous interest payment date till the date of financial statements. In case the audited financials
purchase / sale of instrument) on debt instrument are not available for a period beyond 18 months,
is treated as a revenue item. the investments are valued at ` 1 per VCF/AIF.
Banks’ investments in units of VCFs is classified
Valuation :
under HTM for an initial period of three years and
Investments classified under HTM category are carried
valued at cost during this period, in accordance
at their acquisition cost and not marked to market. Any
with the RBI guidelines.
premium on acquisition is amortised over the remaining
maturity period of the security on a straight line method • Priority Sector Pass Through Certificates (PTC) are
basis, while discount is not accreted. Such amortisation valued at book value as per FIMMDA guidelines.
of premium is adjusted against interest income under
Securities are valued script wise and depreciation
the head “Income from investments” as per the RBI
/ appreciation is aggregated for each category. Net
guidelines. Any diminution, other than temporary, in the
depreciation, if any, compared to the acquisition cost, in
value of investments in HTM Category is provided.
any of the categories, is charged to the Profit and Loss
Investments classified under AFS and HFT categories Account. The net appreciation in each category, if any,
are marked to market as per the RBI guidelines. is not recognised except to the extent of depreciation
Traded investments are valued based on the trades / already provided. Net depreciation required to be
quotes on the recognised stock exchanges, or prices/ provided for in any one classification is not reduced on
yields declared by Primary Dealers Association of account of net appreciation in any other classification.
India (‘PDAI’) jointly with Fixed Income Money Market The valuation of investments includes securities under
and Derivatives Association (‘FIMMDA’) / Financial repo transactions.
250 IDFC FIRST Bank

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CORPORATE OVERVIEW
Non-performing investments are identified and gain, if any, is ignored. Profit / loss on settlement of the
depreciation / provision is made thereon based on the short position are recognised in the Profit and Loss
RBI guidelines. The depreciation / provision is not set off Account.
against the appreciation in respect of other performing
Repo and Reverse Repo Transaction :
securities. Interest on non-performing investments is
In accordance with the RBI guidelines Repo and
recognised on cash basis.
Reverse Repo transactions in government securities
Bonds and debentures are classified as other and corporate debt securities, including transactions
receivables under other assets on maturity date and conducted under Liquidity Adjustment Facility (‘LAF’)
disclosed under Schedule - 11. and Marginal Standby Facility (‘MSF’) with the RBI
STATUTORY REPORTS
are reflected as borrowing and lending transactions
As a prudent risk measure, specific provision
respectively. Borrowing cost on repo transactions is
against identified investments are made based on
accounted as interest expense and revenue on reverse
management’s assessment of impairment based
repo transactions are accounted as interest income.
on qualitative factors, subject to minimum provision
determined under FIMMDA/FBIL valuation guidelines. 17.02 Advances
These provisions are netted off from carrying value of In accordance with the RBI guidelines, advances are
such investments. Further, interest on such identified classified as performing and non-performing. Non-
investments is recongnised on cash basis. Performing advances (‘NPA’) are further classified as
Sub-Standard, Doubtful and Loss Assets in accordance
Investment Fluctuation Reserve (‘IFR’) :
with the RBI guidelines on Income Recognition and
The RBI has advised banks to create an Investment
Asset Classification (‘IRAC’). Advances are stated net
Fluctuation Reserve (‘IFR’) with effect from FY 2018-
of provisions against NPA, specific provisions against
19. Accordingly, an amount not less than the lower of
identified advances, provisions for non-performing
net profit on sale of investments during the year or net
funded interest term loan and provisions in lieu of
profit for the year less mandatory appropriations shall
diminution in the fair value of restructured asset.
be transferred to the IFR by the Holding company, until
the amount of IFR is at least 2 percent of the HFT and The Holding company may transfer advances through
AFS portfolio, on a continuing basis. Where feasible, inter-bank participation with and without risk. In
this should be achieved within a period of 3 years. accordance with the RBI guidelines, in the case of
participation with risk, the aggregate amount of the
Further, the Holding company may, at its discretion,
participation issued by the Bank is reduced from
draw down the balance available in IFR in excess of
advances and where the Bank is participating, the
2 percent of its HFT and AFS portfolio, for credit to the
aggregate amount of the participation is classified under
balance of profit/loss as disclosed in the profit and loss
advances. In the case of participation without risk, the
account at the end of any accounting year. In the event
aggregate amount of participation issued by the Bank
the balance in the IFR is less than 2 percent of the HFT
is classified under borrowings and where the Bank is
and AFS investment portfolio, a draw down is permitted
participating, the aggregate amount of participation is
subject to the following conditions:
shown as due from banks under advances.
(a) The drawn down amount is used only for meeting
The Holding company makes general provisions
the minimum Common Equity Tier 1/Tier 1 capital
on all standard advances based on the rates under
requirements by way of appropriation to free
each category of advance as prescribed by the RBI.
reserves or reducing the balance of loss and
In addition, the Bank makes provisions for standard
(b) The amount drawn down is not more than the extent assets in telecom sector (as defined by RBI) and other
the MTM provisions made during the aforesaid stressed sectors, at rates higher than the regulatory
year exceed the net profit on sale of investments minimum, based on evaluation of risk and stress as
during that year. per the Board approved policy. The provision on
standard advances is not reckoned for arriving at net
IFR is eligible for inclusion in Tier 2 capital.
NPAs. The provision against standard advances (other
Short sales : than provision against identified advances) is shown
The Bank undertakes short sale transactions in Central separately as “Contingent Provisions against Standard
Government dated securities in accordance with RBI Assets” under “Schedule 5 - Other Liabilities”.
guidelines and these are shown under Schedule 8 -
In case of corporate loans, specific loan loss provisions
Investments. The short position is marked to market
in respect of identified advances and non-performing
along with other securities in that category and loss,
advances are made based on the management’s
if any, is charged to the Profit and Loss Account while

Schedules
assessment of the degree of impairment, subject to The Bank is required to make an additional provisioning
the minimum provisioning level prescribed by the RBI. for the delayed implementation of Resolution Plan (RP)
The Bank can provide additional specific provision on as under:
standard advances at higher than prescribed rates as
(a) Additional provision of 20% of total outstandings if
a prudent risk measure. These provisions are reviewed
RP is implemented beyond 180 days from the end
and reassessed at least once in a year. Provision on /
of the review period
write off of homogeneous retail loans and advances,
subject to minimum provisioning requirement of (b) Additional provision of 35% of total outstandings if
the RBI, is assessed on the basis of ageing of loans RP is implemented beyond 360 days from the end
as prescribed in the Board approved policy of the of the review period
Bank. Provision due to diminution in the fair value of
The additional provisions shall be made over and above
restructured/rescheduled loans and advances is made
the higher of the following, subject to the total provisions
in accordance with the applicable RBI guidelines.
held being capped at 100% of total outstanding:
The RBI issued guidelines on enhancing credit supply
(a) The provisions already held; or,
for Large Borrowers through Market Mechanism dated
August 25, 2016 which are applicable to exposure (b) The provisions required to be made as per IRAC
on all single counterparties of the Bank. The bank’s norms
incremental exposures from FY 2018-19 onwards to
the specified borrowers exceeding the Net Permitted In accordance with the RBI guidelines relating to
Lending Limits (‘NPLL’) will attract prudential measures. COVID-19 Regulatory Package dated April 17, 2020
Incremental Exposure of the Banking System to a and May 23 , 2020, it has been decided that in respect
specified borrower beyond NPLL shall be deemed to of accounts which were within the Review Period as
carry higher risk which shall be recognized by way of on March 1, 2020, the period from March 1, 2020 to
additional standard asset provisioning and higher risk August 31, 2020 shall be excluded from the calculation
weights. of the 30-day timeline for the Review Period. In respect
of all such accounts, the residual Review Period shall
In accordance with the RBI guidelines relating Large resume from September 1, 2020, upon expiry of which
Exposures Framework – Increase in Exposure to the lenders shall have the usual 180 days for resolution.
a Group of Connected Counterparties dated May
23, 2020, banks exposure to a group of connected In respect of accounts where the Review Period was
counterparties has been increased from 25% to 30% of over, but the 180-day resolution period had not expired
the eligible capital base with a view to facilitate greater as on March 1, 2020, the Bank may at its discretion
flow of resources to corporates under COVID-19 extend such timeline for resolution by 180 days from
pandemic till Jun 30, 2021. the date on which the 180-day period was originally set
to expire, on case by case basis.
In the event of substantial erosion in value of loan and
remote possibility of collection, non performing loans COVID-19 – Regulatory Package
with adequate provisions are evaluated for technical In accordance with the RBI guidelines on ‘COVID-19
/ prudential write off based on Bank’s policy and the Regulatory Package’ of March 27, 2020, April 17, 2020
RBI guidelines. Such write off does not have an impact and May 23, 2020, the Bank granted moratorium on
on the Bank’s legal claim against the borrower. The repayment of instalments and/or interest, as applicable,
Bank may also write off non performing loans on one due between March 1, 2020 and August 31, 2020 to
time settlement (‘OTS’) with the borrower or otherwise. all eligible borrowers. For all eligible accounts, where
Amounts recovered form borrowers against debts the moratorium is granted, the asset classification shall
written off is recognised in the Profit and Loss Account remain stand still during the moratorium period (i.e. the
under “Provisions and contingencies”. number of days past-due shall exclude the moratorium
period for the purposes of asset classification under
Further, the RBI has issued guidelines on “Prudential the Income Recognition, Asset Classification and
Framework for Resolution of Stressed Assets dated Provisioning norms).
June 07, 2019” with a view to providing a framework for
early recognition, reporting and time bound resolution The Holding company made general provision in
of stressed assets. The Bank has put in place Board- terms of the RBI circular dated April 17, 2020.These
approved policy for resolution of distressed Borrowers provisions are adjusted against the actual provisioning
with an objective to initiate the process of resolution requirements for slippages from the accounts reckoned
even before a default and prior to the initiation of for such provisions. The residual provisions at the end
proceedings under the IBC. of the financial year are written back or adjusted against
252 IDFC FIRST Bank

Schedules
CORPORATE OVERVIEW
the provisions required for all other accounts. interest income.
In accordance with Resolution Framework for COVID-19 The unrealized interest represented by Funded Interest
announced by the RBI on August 6, 2020, the Bank Term Loan (‘FITL’) is reversed in Profit & Loss Account
has implemented a one-time restructuring for certain with the corresponding credit in Sundry Liabilities
eligible borrowers and such borrowers are classified Account- Interest Capitalization account. Interest
as Standard Restructured in accordance with this income is booked in Profit & Loss account upon
framework. On successful implementation of resolution realization, by debiting the sundry liabilities account.
plan under this framework, the Bank is required to
Subvention income on loans is recognised as income
maintain provisions which should be higher of 10% of
over the tenor of the loan agreements. The unamortized
STATUTORY REPORTS
the restructured debt or provisions required under IRAC
balance is disclosed as part of other liabilities . On
norms before the implementation of the Resolution Plan.
foreclosure, balance unamortised subvention income
Unhedged Foreign Currency Exposure is recognised in the Profit and Loss Account. Income
Provision for Unhedged Foreign Currency Exposure on retained interest in the assigned asset, if any, is
of borrowers is made as per the RBI guidelines and accounted on accrual basis except in case of NPAs
disclosed under Contingent Provision against Standard wherein interest income is recognised on receipt basis
Assets. In addition to the provisions required to be held as per RBI guidelines.
according to the asset classification status, provisions
Interest Income on coupon bearing securities is
are held for individual country exposure (other than
recognised over the tenure of the instrument on a
for home country as per the RBI guidelines). The
straight line method and on non-coupon bearing
countries are categorised into seven risk categories as
securities over the tenure on yield basis. Any premium
mentioned in the ECGC guidelines namely insignificant,
on acquisition of securities held under HTM category
low, moderate, high, very high, restricted and off-credit
is amortised over the remaining maturity period of the
and provision is made on exposures exceeding 180
security on a straight line method basis.
days on a graded scale ranging from 0.25% to 100%.
For exposures with contractual maturity of less than 180 Dividend on equity shares, preference shares and on
days, 25% of the normal provision requirement is held. mutual fund units is recognised as income when the
If the funded exposure (net) of the Bank in respect of right to receive the dividend is established.
each country does not exceed 1% of the total assets,
Fees and charges :
no provision is maintained on such country exposure.
Loan originating fees, when it becomes due, is
17.03 Revenue recognition recognised upfront as income. Arrangership /
Interest income : syndication fee is accounted on completion of
Interest Income is recognised on accrual basis in the the agreed service and when right to receive is
Profit and Loss Account, except in the case of Non- established. Fee and commission income is recognised
Performing Assets (NPAs) and identified stressed as income when due and reasonable right of recovery
advances, where it is recognised upon realisation. is established and can be reliably measured.
The unrealised interest, fees and charges booked in
Commission received on guarantees and letter of
respect of NPAs and identified stressed advances and
credit issued is recognised on straight line basis
any other facility given to the same borrower is reversed
over the period of the contract or the period for which
to the Profit and Loss and subsequent interest income
commission is received.
is accounted into interest suspense.
Fee on rescheduling of outstanding debt is recognised
In accordance with the instructions in the RBI Circular
on accrual basis over the period of time covered by the
on Refund/adjustment of ‘interest on interest’ dated
rescheduled extension period.
April 07, 2021, the Bank shall refund / adjust ‘interest
on interest’ to all borrowers including those who Underwriting commission earned to the extent not
had availed of working capital facilities during the reduced from the cost of the securities is recognised
moratorium period, irrespective of whether moratorium as fees on closure of issue.
had been fully or partially availed, or not availed. As
required by the RBI notification, the methodology for All other fees and charges is recognised as and when
calculation of such interest on interest has recently they become due and revenue can be reliably measured
been circulated by the Indian Banks’ Association. The and reasonable right of recovery is established.
Bank is in process of implementing this circular. As at Investments :
March 31, 2021, the Bank has created a liability towards Profit / loss on sale of investments under the HTM, AFS
estimated interest relief and reduced the same from the and HFT categories are recognised in the Profit and

Schedules
Loss Account. The profit from sale of investment under (‘PSLCs’). In case of a purchase transaction the bank
HTM category is appropriated from Profit and Loss buys the fulfilment of priority sector obligation and in
Account to “Capital Reserve” (net of applicable taxes case of a sale transaction, the bank sells the fulfilment
and transfer to Statutory Reserve) in accordance with of priority sector obligation through the RBI trading
the RBI guidelines. platform without any transfer of underlying risk or loan
assets. Fees paid for purchase of the PSLCs is recorded
Exchange gain or loss arising on account of revaluation
as ‘Other Expenditure’ and fees received for the sale of
of monetary assets and liabilities is recognised in the
PSLCs is recorded as ‘Miscellaneous Income’ in Profit
Profit and Loss Account as per the revaluation rates
and Loss Account. These are amortised on straight-line
published by Foreign Exchange Dealers’ Association of
basis over the tenor of the certificate.
India (‘FEDAI’).
17.05 Transactions involving foreign exchange
Other operating income :
Foreign currency income and expenditure items of
Securitisation transactions :
domestic operations are translated at the exchange
Net income arising on account of sale of standard asset,
rates prevailing on the date of the transaction. Monetary
being the difference between the sale consideration and
foreign currency assets and liabilities of domestic and
book value, is amortised over the life of the securities
integral foreign operations are translated at closing
issued by the Special Purpose Vehicle (‘SPV’). Any loss
exchange rates notified by FEDAI relevant to the balance
arising on account of sale is recognised in the Profit
sheet date. The resulting gain or loss on revaluation are
and Loss Account in the year in which the sale occurs.
included in the Profit and Loss Account in accordance
In case of Non-Performing Assets sold to Securitisation with the RBI / FEDAI guidelines. All outstanding
Company (‘SC’) / Reconstruction Company (‘RC’) forward exchange contracts are revalued based on
for cash, excess provision is reversed to Profit and the exchange rates notified by FEDAI for specified
Loss Account. Any loss arising on account of sale is maturities and at interpolated rates for contracts of
recognised in the Profit and Loss Account in the year interim maturities. The forward exchange contracts of
in which the sale occurs. If sale is against issuance of longer maturities where exchange rates are not notified
SRs by SC / RC, the sale will be recognised at lower of by FEDAI are revalued at the forward exchange rates
redemption value of SRs and net book value of financial implied by the swap curves in respective currencies.
asset sold. On realisation, the proceeds are reduced The resultant gains or losses are recognized in the
against the carrying value of SRs and surplus, if any, is Profit and Loss Account.
recognised in the Profit and Loss Account.
Contingent liabilities on account of forward exchange
With effect from April 1, 2018 investments in SRs by and derivative contracts, guarantees, acceptances,
more than 10 percent of the SRs backed by the assets endorsements and other obligations denominated in
sold and issued under the scheme of securitization, foreign currencies are disclosed at closing rates of
provisioning requirement on SRs will be higher of exchange notified by FEDAI.
provisioning rate required in terms of net asset value
17.06 Accounting for derivative transactions
declared by the SCs/RCs or provisioning rate as
Derivative transactions comprises of forward contracts,
applicable to the underlying loans, assuming that the
futures, swaps and options. The Holding company
loans notionally continued in the books.
undertakes derivative transactions for trading and
Direct Assignments : hedging on-balance sheet assets and liabilities. All
Profit / premium arising on account of sale of trading transactions are marked to market and resultant
standard asset, being the difference between the sale gain or loss is recognized in the Profit and Loss
consideration and book value, is amortised over the Account.
residual life of the loan. Any loss arising on account of
For hedge transactions, the Holding company identifies
sale is recognised in the Profit and Loss Account in the
the hedged item (asset or liability) and assesses the
year in which the sale occurs. In case of gain on sale of
effectiveness at inception as well as at each reporting
non-performing assets, the excess provision shall not
date. Funding swaps are accounted in accordance
be reversed but will be utilised to meet the shortfall /
with FEDAI guidelines. The Hedge swaps and funding
loss on account of sale of other non-performing financial
swaps are accounted on accrual basis except the swap
assets and shortfall if any is charged to the Profit and
designated with an asset or liability that is carried at
Loss Account.
lower of cost or market value in the financial statements.
17.04 Priority Sector Lending Certificates (PSLCs) In such cases swaps are marked to market with the
The Holding company may enter into transactions for the resulting gain or loss recorded as an adjustment to
purchase or sale of Priority Sector Lending Certificates the market value of designated asset or liability. Any
254 IDFC FIRST Bank

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CORPORATE OVERVIEW
resultant profit or loss on termination of hedge swaps is Contracts (QFC) on March 30, 2021 permitting taking
amortized over the life of the swap or underlying liability benefit of netting agreement in computation of exposure
whichever is shorter. Upon ineffectiveness of hedge on with immediate effect. The Bank shall work towards
re-assessment or termination of underlying, the Bank implementation of the revised guidelines.
shall de-designate the derivative as trade.
17.07 Fixed assets and depreciation
Premium / discount on currency swaps undertaken Fixed assets are carried at cost of acquisition or
to hedge foreign currency assets and liabilities and construction less accumulated depreciation and
funding swaps is recognized as interest income / impairment, if any. Cost includes freight, duties, taxes
expense on accrual basis and is amortized on a pro- and incidental expenses related to the acquisition and
STATUTORY REPORTS
rata basis over the underlying swap period. installation of the asset.
Premium in option transaction is recognized as Capital work-in-progress includes cost of fixed assets
income / expense on expiry or early termination of that are not ready for their intended use and also
the transaction. Mark to market gain / loss (adjusted include advances paid to acquire fixed assets.
for premium received / paid on options contracts) is
The management believes that the useful life of assets
recorded as other income. The amounts received /
assessed by the Bank, pursuant to the Companies Act,
paid on cancellation of option contracts are recognized
2013, taking into account changes in environment,
as realized gain / loss on options. Pursuant to the RBI
changes in technology, the utility and efficacy of the
guidelines, any receivables under derivative contracts
asset in use, fairly reflects its estimate of useful lives of
which remain overdue for more than 90 days and mark-
the fixed assets.
to-market gains on other derivative contracts with the
same counter-parties are reversed in Profit and Loss Depreciation is charged over the estimated useful life
Account. of a fixed asset on a straight-line basis. The rates of
depreciation for fixed assets, which are not lower than
Currency futures contracts are marked-to-market using
the rates prescribed in Part C of Schedule II of the
daily settlement price on a trading day, which is the
Companies Act, 2013, are given below :
closing price of the respective futures contracts on that
day. All open positions are marked to market based Asset Estimated Useful Life
on the settlement price and the resultant marked to
Building – RCC Frame 60 Years
market profit / loss settled with the exchange. Charges
Building – Other than RCC Frame 30 Years
receivable / payable on cancellation / termination of
Computers – Desktops, Laptops, 3 Years
foreign exchange forward contracts is recognized
End User Devices
as income / expense on the date of cancellation /
Computers – Server & Network 6 Years
termination under ‘Other Income’.
Vehicles 4 Years to 8 years
Valuation of Exchange Traded Currency Options Furniture 10 Years
(‘ETCO’) is carried out on the basis of the daily Office Equipment 5 Years
settlement price of each individual option provided by Over the extended
Leasehold Improvements
the exchange and valuation of Interest Rate Futures period of lease
(‘IRF’) is carried out on the basis of the daily settlement Others (including software and 5 years
price of each contract provided by the exchange. system development)
As per the RBI guidelines on ‘Prudential Norms for Off All fixed assets individually costing less than ` 5,000
Balance Sheet Exposures of Banks’ a general provision are fully depreciated in the year of installation.
is made on the current gross MTM gain of the contract Depreciation on assets sold during the year is recognized
for all outstanding interest rate and foreign exchange on a pro-rata basis to the Profit and Loss Account till the
derivative transactions. For provisioning purpose, date of sale. Profit on sale of premises net of taxes and
the credit exposure for all the counterparties except transfer to statutory reserve is appropriated to Capital
CSA / Qualified Central Counter Party (‘QCCP’) are Reserve as per the RBI guidelines. The Subsidiary
calculated at deal level, i.e. Gross Positive MTM after Company recognises the gains or losses arising on the
netting of margin to the extent of Positive MTM. The disposal of the tangible assets in the Profit and Loss
credit exposure reckoned for standard provisioning on Account within other income or other expenses, as the
CSA / QCCP is calculated at counterparty level i.e. Net case may be.
Positive MTM.
17.08 Income tax
The RBI has released amendments to prudential Income tax expense is the aggregate amount of current
guidelines on bilateral netting of Qualified Financial tax and deferred tax charge. The current tax expense

Schedules
and deferred tax expense is determined in accordance and pension fund are considered as defined plans and
with the provisions of the Income Tax Act, 1961 and as are charged to the Profit and Loss Account as they fall
per Accounting Standard 22 - Accounting for Taxes on due, based on the amount of contribution required to
Income respectively. be made and when services are rendered.
Deferred income taxes reflects the impact of current Defined benefit plan :
year timing differences between taxable income and The net present value of obligations towards gratuity to
accounting income for the year and reversal of timing employees is actuarially determined as at the Balance
differences of earlier years. Deferred tax assets and Sheet based on the projected unit credit method.
liabilities are measured using tax rates and tax laws Actuarial gains and losses are recognised in the Profit
that have been enacted or substantively enacted at the and Loss Account for the year.
Balance Sheet date.
Compensated absences :
Current tax assets and liabilities and deferred tax Any unavailed privilege leave to the extent encashable
assets and liabilities are off-set when they relate to is paid to the employees and charged to the Profit
income taxes levied by the same taxation authority, and Loss Account for the year based on estimates of
when the Bank has a legal right to off-set and when the availment / encashment of leaves.
Bank intends to settle on a net basis.
17.11 Provisions, contingent liabilities and
Deferred tax assets are recognized only to the extent contingent assets
there is reasonable certainty that the assets can A provision is recognised when the Group has a
be realized in future. In case of history of tax losses, present obligation as a result of past event where it is
deferred tax assets on unabsorbed depreciation or probable that an outflow of resources will be required
carried forward loss under taxation laws are recognized to settle the obligation, in respect of which a reliable
only if there is virtual certainty of realization of such estimate can be made. Provisions are not discounted
assets. Deferred tax assets are reviewed at each to its present value and are determined based on best
balance sheet date and appropriately adjusted to estimate required to settle the obligation at the Balance
reflect the amount that is reasonably / virtually certain to Sheet date. These are reviewed at each Balance Sheet
be realized. The impact of changes in the deferred tax date and adjusted to reflect the current best estimates.
assets / liabilities is recognised in the Profit and Loss
Provisions for onerous contracts are recognised when
Account.
the expected benefits to be derived by the Group from
17.09 Employees’ stock option scheme a contract are lower than the unavoidable costs of
The Holding company has formulated Employee Stock meeting the future obligations under the contract. The
Option Scheme - IDFC FIRST Bank Limited ESOS -2015 provision is measured at the present value of the lower
(‘the Scheme’) in accordance with the SEBI (Employee of the expected cost of terminating the contract and
Stock Option Scheme and Employee Stock Purchase the expected net cost of continuing with the contract.
Scheme) Guidelines, 1999. The scheme provides for Before a provision is established, the Group recognises
the grant of options to acquire equity shares of the Bank any impairment loss on the assets associated with that
to its employees. The options granted to employees contract.
vest in a graded manner and these may be exercised
A disclosure of contingent liability is made when there
by the employees within a specified period.
is :
The Holding company follows the intrinsic value method
• a possible obligation arising from a past event, the
to account for its stock-based employee compensation
existence of which will be confirmed by occurrence
plans. Compensation cost is measured by the excess,
or non-occurrence of one or more uncertain future
if any, of the market price / fair value of the underlying
events not within the control of the Bank; or
stock over the grant price as determined under the
option plan. Compensation cost, if any is amortized over • a present obligation arising from a past event
the vesting period on a straight line method. In case the which is not recognised as it is not probable that
vested stock options expire unexercised, the balance in an outflow of resources will be required to settle
stock options outstanding is transferred to the general the obligation or a reliable estimate of the amount
reserve. In case the unvested stock options get lapsed/ of the obligation cannot be made.
cancelled, the balance in stock option outstanding
When there is a possible obligation or a present
account is transferred to the Profit and Loss Account.
obligation in respect of which the likelihood of outflow of
17.10 Employee benefits resources is remote, no provision or disclosure is made.
Defined contribution plan :
Contingent assets are not recognised in the financial
The contribution to provident fund, superannuation fund
256 IDFC FIRST Bank

Schedules
CORPORATE OVERVIEW
statements. However, contingent assets are assessed 17.16 Securities issue expenses
continually and if it is virtually certain that an inflow Securities issue expenses are adjusted from Securities
of economic benefits will arise, the asset and related Premium Account in terms of Section 52 of the
income are recognised in the period in which the Companies Act, 2013.
change occurs.
17.17 Impairment of assets
17.12 Earnings per share The carrying amount of the assets at each Balance
The Group reports basic and diluted earnings per Sheet date is reviewed for impairment. If any indication
share in accordance with AS-20, Earnings per Share, of impairment based on internal / external factors
as notified under Section 133 of the Companies Act, exists, the recoverable amount of such assets is
STATUTORY REPORTS
2013 read together with paragraph 7 of the Companies estimated and impairment is recognised wherever the
(Accounts) Rules, 2014 and the Companies (Accounting carrying amount of an asset exceeds its recoverable
Standards) Amendment Rules, 2016. Basic earnings amount. The recoverable amount is the greater of the
per share are computed by dividing the net profit after net selling price and its value in use, which is arrived
tax by the weighted average number of equity shares at by discounting the future cash flows to their present
outstanding for the year. value, based on an appropriate discounting factor.
If at the Balance Sheet date, there is an indication
Diluted earnings per share reflect the potential dilution
that previously recognised impairment loss no longer
that could occur if securities or other contracts to issue
exists, the recoverable amount is reassessed and the
equity shares were exercised or converted during the
asset is reflected at the recoverable amount, subject
year. Diluted earnings per equity share is computed
to a maximum of the depreciable historical cost and
by dividing net profit after tax attributable to equity
reversal of such impairment loss is recognised in the
shareholders by the weighted average number of
Profit and Loss Account, except in case of revalued
equity shares and weighted average number of dilutive
assets.
potential equity shares outstanding during the year,
except where the results are anti-dilutive. 17.18 Fraud Provisioning
As per RBI guidelines, in case of frauds due to the
17.13 Leases
Holding company or for which the Holding company
Leases where the lessor effectively retains substantially
is liable, provision needs to be immediately recognised
all the risks and benefits of ownership over the lease
in Profit and Loss Account. However, the Holding
term are classified as operating lease. Amount due
company has an option to make provisions over a
under the operating leases, including cost escalation,
period, not exceeding four quarters, commencing from
are charged on a straight line method over the lease
the quarter in which the fraud has been detected.
term in the Profit and Loss account. Initial direct
cost incurred specifically for operating leases are 17.19 Cash and cash equivalents
recognised as expense in the Profit and Loss Account Cash and cash equivalents include cash in hand,
in the year in which they are incurred. balances with the RBI, balances with other banks and
money at call and short notice.
17.14 Reward Points
The Bank may grant reward points in respect of certain 17.20 Corporate social responsibility
debit / credit cards. Presently, the Bank is offering Expenditure towards corporate social responsibility, in
reward points only on credit cards. The Bank makes accordance with Companies Act, 2013, are recognised
provisions for reward points in credit cards basis in the Profit and Loss Account.
outstanding redemption points after considering the
17.21 Accounting for Dividend
conversion ratio.
As per AS-4 ‘Contingencies and Events occurring after
the Balance sheet date’ as notified by the Ministry of
As per the RBI guidelines, the Holding company’s
Corporate Affairs through amendments to Companies
business segments are divided under a) Treasury b)
(Accounting Standards) Amendment Rules, 2016,
Corporate and wholesale banking c) Retail Banking
dated 30 March, 2016, the Holding company does
and d) Other Banking Business. Business segments
not account for proposed dividend (including tax) as
have been identified and reported considering the
a liability through appropriation from the profit and
target customer segment, the nature of products,
loss account. The same is recognised in the year of
internal business reporting system, transfer pricing
actual payout post approval of shareholders. However,
policy approved by Asset Liability Committee (ALCO),
the Holding Company reckons proposed dividend
the guidelines prescribed by the RBI.
in determining capital funds in computing the capital
adequacy ratio.

Notes
18 Notes forming part of the Consolidated The Bank had sought for renewal of dispensation from
Financial Statements as at and for the year the RBI, which was valid till December 31, 2019, to
ended March 31, 2021 grandfather certain loan accounts which were given
by the erstwhile Capital First Limited as a Non Banking
Amounts in notes forming part of the financial Financial Company (NBFC). In this regard, the RBI
statements for the year ended March 31, 2021 are vide letter dated March 4, 2021, having not acceded to
denominated in ` crore to conform with the extant RBI the dispensation, had advised the Bank to hold 100%
guidelines. provisions in respect of non-compliant non-performing
18.01 loans. Further, for other non-compliant standard loans
with insignificant outstanding balance, the Bank is
IDFC FIRST Bank Limited (Formerly ‘IDFC Bank Limited’) required to assign additional risk weight of 25% and
(“the Bank” or “Holding company”) was incorporated on make such loan accounts compliant with the extant
October 21, 2014 as a Company under the Companies regulatory instructions by June 30, 2021. The Bank has
Act, 2013. Further, the Bank commenced its banking made additional provision of ` 89.34 crore for the year
operations on October 1, 2015 after receiving universal ended March 31, 2021 for such non-compliant non-
banking license from the Reserve Bank of India (‘the performing loans and assigned additional risk weight
RBI’) on July 23, 2015. of 25% on other non-compliant standard loans.
18.02 Employee benefits
i The Group has charged the following amounts in the Profit and Loss Account towards contribution to defined
contribution plans which are included under schedule 16 (I) :
(` in crore)
Provident fund 84.09 69.74
Superannuation fund - -
Pension fund 2.77 2.79
ii Gratuity
The following tables summarise the components of net benefit expenses recognised in the Profit and Loss Account
and funded status and amounts recognised in the balance sheet for the gratuity benefit plan :
Profit and Loss Account
Net employee benefit expenses (recognised in payments to and provisions for employees) :
(` in crore)
Interest on defined benefit obligation 5.49 5.89
Expected return on plan assets (4.53) (4.92)
Net actuarial losses / (gains) recognised in the year (10.25) (2.94)
Past service cost 0.20 0.20
Losses / (gains) on Acquisition / Divestiture - -
Total included in “employee benefit expense” [schedule 16(I)] 9.22 15.60
Actual return on plan assets 6.66 4.50
Balance Sheet
Details of provision for gratuity :
(` in crore)
Fair value of plan assets 69.87 62.09
Present value of funded obligations (84.51) (75.53)
Unrecognised Past Service Cost 0.20 0.39
Net Liability Included under Schedule 5 - Other Liabilities (14.44) (13.05)
258 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
Changes in the present value of the defined benefit obligation are as follows :
Opening defined benefit obligation 75.53 69.23
Interest cost 5.49 5.89
Actuarial losses / (gains) (8.12) (3.32)
Past service cost - -
Closing defined benefit obligation 84.52 75.53
STATUTORY REPORTS
Changes in the fair value of plan assets are as follows :
Opening fair value of plan assets 62.09 65.62
Expected return on plan assets 4.53 4.92
Actuarial gains / (losses) 2.13 (0.39)
Contributions by employer 7.81 5.58
Assets acquired on acquisition / (distributed on divestiture) - -
Closing fair value of plan assets 69.87 62.09
Expected Employers Contribution Next Year 10.60 9.37
Experience adjustments
Particulars March 31, 2021 March 31, 2020 March 31, 2019 March 31, 2018 March 31, 2017
Defined benefit obligations 84.52 75.53 69.23 48.14 46.38

Plan assets 69.87 62.09 65.62 46.92 43.70
Surplus / (deficit) (14.65) (13.44) (3.61) (1.22) (2.68)
Experience adjustments on plan liabilities (3.76) (6.33) (1.57) (1.68) 1.29
Experience adjustments on plan assets 2.38 (0.35) (0.20) (0.16) 1.13
Major categories of plan assets (managed by Insurers) as a percentage of fair value of total plan assets :
Government securities 44.24% 32.70%

Bonds, debentures and other fixed income instruments 38.06% 50.56%
Deposits and money market instruments 5.99% 4.97%
Equity shares 11.71% 11.77%
Principal actuarial assumptions at the Balance Sheet date:
Discount rate (p.a.) 5.30% to 7.15% 6.20% to 6.69%

Expected rate of return on plan assets (p.a.) 7.00% to 7.15% 6.69% to 7.00%
Salary escalation rate (p.a.) 8.00% to 10.00% 8.00% to 10.00%
Business Segments :
The Business of the Group is divided into four segments : Treasury, Corporate / Wholesale Banking, Retail Banking
Business and Other Banking Business. These segments have been identified and reported taking into account, the
target customer segment, the nature of products, internal business reporting system, transfer pricing policy approved
by Asset Liability Committee (ALCO), the guidelines prescribed by the Reserve Bank of India (‘the RBI’), which has been
relied upon by the auditors.

Notes
Segment Principal activities

The treasury segment primarily consists of Group’s investment portfolio, money market borrowing
and lending, investment operations and entire foreign exchange and derivative portfolio of the
Bank. Revenue of treasury segment consist of interest income on investment portfolio, inter segment
Treasury
revenue, gains or losses from trading operations, trades and capital market deals. The principal
expenses consists of interest expenses from external sources & on funds borrowed from inter
segments, premises expenses, personnel cost, direct and allocated overheads.
The wholesale banking segment provides loans, non-fund facilities and transaction services to
corporate relationship not included under Retail Banking, and syndication. Revenues of the
wholesale banking segment consists of interest earned on loans to customers, inter segment
Corporate / Wholesale
revenue, interest / fees earned on transaction services, earnings from trade services, fees on client
Banking
FX & derivative and other non-fund facilities. The principal expenses of the segment consists of
interest expense on funds borrowed from internal segments, premises expenses, personnel costs,
other direct overheads and allocated expenses of delivery channels, and support groups.
Retail Banking constitutes lending to individuals / business banking customers through the branch
network and other delivery channels subject to the orientation, nature of product, granularity of
the exposure and the quantum thereof. Revenues of the retail banking segment are derived from
interest earned on retail loans, inter segment revenue and fees from services rendered, fees on
Retail Banking
client FX & derivative. Expenses of this segment primarily comprise interest expense on deposits &
funds borrowed from inter segments, commission paid to retail assets sales agents, infrastructure
and premises expenses for operating the branch network and other delivery channels, personnel
costs, other direct overheads and allocated and support groups.
Other Banking Business This segment includes revenue from distribution of third party products.
All items which are reckoned at an enterprise level are classified under this segment. This includes
assets and liabilities which are not directly attributable to any segment. Revenue & expense of this
segment includes income & expenditure which are not directly attributable to any of the above
Unallocated
segments. Revenue includes interest on income tax refund and expense of this segment mainly
includes employee cost, establishment & technology expense which is not directly attributable to
any segment.
(` in crore)
Corporate/
Banking Business
Banking
Revenue (i) 10,773.55 6,118.04 15,011.16 152.67 50.60 32,106.02
Segment Results before tax 2,594.94 698.50 (2,551.52) (17.24) (205.70) 518.98
Net Profit / (loss) before 483.18
earnings from Associate
Add: Share of profit / (loss) -
in Associate
Net Profit / (loss) 483.18
Total Segment liabilities 40,843.59 35,890.91 67,308.75 27.36 1,101.21 145,171.81
Net assets 15,346.88 (6,723.02) 7,288.61 14.25 1,972.99 17,899.71
the year
260 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
(` in crore)
Corporate/
Banking Business
Banking
Revenue (i) 12,866.02 8,028.33 11,778.36 158.53 43.49 32,874.73
Segment Results before tax (1,241.68) (25.61) (884.71) (6.29) (187.61) (2,345.89)
STATUTORY REPORTS
Net Profit / (loss) before (2,843.38)
earnings from Associate
Add: Share of profit / (loss) -
in Associate
Net Profit / (loss) (2,843.38)
Total Segment liabilities 58,293.05 39,063.31 36,149.10 68.79 180.78 133,755.03
Net assets (795.67) (8,402.86) 21,361.39 7.58 3,233.08 15,403.51
the year
Geographic segments
The business of the Group is concentrated in India. Accordingly, geographical segment results have not been
reported.
18.04 Deferred tax
The major components of deferred tax assets and deferred tax liabilities arising out of timing differences are as under :
(` in crore)
Deferred tax assets:

- Provisions for loan losses 1,008.01 708.12
- Provision for diminution in value of investments 521.91 489.97
- Depreciation on fixed assets 2.98 438.50
- Provision for employee benefits - 0.86
- Other contingencies 557.50 461.31
Total (A) 2,090.40 2,098.76
Deferred tax liabilities on:
- Depreciation on fixed assets 7.01 -
- Provision for employee benefits 0.79 -
- Others (special reserve under section 36(1)(viii) of Income Tax Act, 1961) 80.96 75.03
Total (B) 88.76 75.03
Net Deferred tax asset (A-B) 2,001.64 2,023.73
The Finance Act, 2021 has provided that goodwill of a business or profession will not be considered as a depreciable asset
and no depreciation on goodwill would be allowed effective April 1, 2020. The Bank had claimed depreciation on goodwill
while computing provision for tax that arose pursuant to the merger with erstwhile Capital First Limited and its subsidiaries in
FY2018, and a deferred tax asset had been recognised on carrying value of such goodwill as per Income Tax Act. Pursuant to
the change in law, the Bank has now written off the deferred tax asset of ` 338.00 crores on depreciation on goodwill in excess
of the depreciation claimed in its returns of income filed till FY 2020 by debiting the profit and loss account. Further, as at March
31, 2021, the Bank has reassessed the continuing recognition of deferred tax assets by assessing availability of sufficient future
taxable profits, based on financial projections which have been approved by the Board of Directors, to absorb the carrying
amount of deferred tax asset.

Notes
18.05 Provisions and contingencies

Provisions and contingencies’ shown under the head expenditure in Profit and Loss Account comprise of :
(` in crore)
Provision made towards income taxes 35.80 497.50

Provisions for depreciation on investment (820.39) 1,051.49
Provision / (write back) towards non-performing advances 945.08 441.58
Provision / (write back) for restructured assets 99.32 20.59
Provision / (write back) on identified standard assets 81.10 (41.06)
Provision against Standard Assets 95.81 330.95
Bad-debts written off / technical write off ^ 2,387.02 1,386.44
Provision and other contingencies (723.05) 1,125.57
Total 2,100.70 4,813.05
^ Net of bad-debt recoveries from borrowers on written off accounts of ` 420.10 crore (Previous Year ` 229.58 crore)
18.06 Draw down from reserves

The Group has not undertaken any draw down from reserves during the year ended March 31, 2021 and March 31,
2020.
Appropriation to Reserves
i Statutory Reserve
As mandated by the Banking Regulation Act, 1949, all banking companies incorporated in India shall create a
reserve fund, out of the balance of profit of each year as disclosed in the profit and loss account and before any
dividend is declared and transfer a sum equivalent to not less than twenty five per cent of such profit. The Group
has transferred ` 113.50 crore (Previous Year Nil) to Statutory Reserve for the year.
ii Investment Reserve Account (IRA)
As per RBI guidelines, if provisions created on account of depreciation in the ‘AFS’ or ‘HFT’ categories are found
to be in excess of the required amount in any year, the excess shall be credited to the Profit and Loss Account and
an equivalent amount (net of taxes, if any and net of transfer to Statutory Reserves as applicable to such excess
provision) shall be appropriated to Investment Reserve Account. Further, the Bank may draw down from the IRA to
the extent of provision made during the year towards depreciation in investment in AFS and HFT categories (net
of taxes, if any, and net of transfer to Statutory Reserves as applicable to such excess provision). During the year
ended March 31, 2021 and March 31 2020, as per RBI guidelines, the Holding company has appropriated ` 335.00
crore (Previous Year Nil) to Investment Reserve Account.
iii Investment Fluctuation Reserve (IFR)
The RBI vide circular DBR.No.BP.BC.102/21.04.048/2017-18 dated April 2, 2018 advised banks to create an
Investment Fluctuation Reserve (IFR) with effect from FY 2018-19. Accordingly, an amount not less than the lower
of net profit on sale of investments during the year or net profit for the year less mandatory appropriations shall be
transferred to the IFR, until the amount of IFR is at least 2 percent of the HFT and AFS portfolio, on a continuing
basis. Where feasible, this should be achieved within a period of 3 years. During the year ended March 31, 2021
and March 31, 2020, the Holding company transferred Nil (Previous year Nil) to Investment Fluctuation Reserve.
iv Capital Reserve
As per RBI Guidelines, profit/loss on sale of investments in the ‘Held to Maturity’ category is recognised in the Profit
and Loss Account and profit is thereafter appropriated (net of applicable taxes and statutory reserve requirements)
to Capital Reserve. Profit / loss on sale of investments in ‘Available for Sale’ and ‘Held for Trading’ categories is
recognised in the Profit and Loss Account. Accordingly, the Holding company has appropriated ` 148.50 crore
(Previous Year ` 166.00 crore) to capital reserve.
262 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
v Special Reserve
As per the provisions under Section 36(1)(viii) of Income Tax Act, 1961, specified entities like banks are allowed
deduction in respect of any special reserve created and maintained, i.e. an amount not exceeding twenty per cent
of the profits derived from eligible business computed under the head “Profits and gains of business or profession”
is carried to such reserve account. This would be applicable till the aggregate of the amounts carried to such
reserve account from time to time exceeds twice the amount of the paid up share capital and general reserves of
the entity. During the year, the Holding company has transferred an amount of ` 24.00 crore (Previous Year Nil) to
Special Reserve.
vi General Reserve
STATUTORY REPORTS
During the year ended March 31, 2021 and March 31, 2020, no amount was transferred to the general reserve.
18.07 Related party disclosure :
As per AS-18, Related Party Disclosure, the Group’s related parties are disclosed below :
a Entities having Significant Influence
IDFC Limited
IDFC Financial Holding Company Limited
b Associates
Millennium City Expressways Private Limited
c Key Management Personnel
Mr. V. Vaidyanathan
d Relatives of key management personnel:
Mrs. Jeyashree Vaidyanathan, Mr. Krishnamurthy Vembu, Mr. Pranav Vaidyanathan, Mr. Amartya Vaidyanathan,
Ms. Anusha Vaidyanathan, Group Captain V. Satyamurthy, Mr. Maj V Krishnamurthy, Ms. Savitri Krishnamoorthy
In accordance with paragraph 5 and 6 of AS - 18, the Group has not disclosed certain transactions with relatives
of key management personnel as they are in the nature of banker-customer relationship.
The significant transactions between the Group and related parties for year ended March 31, 2021 are given below.
A specific related party transaction is disclosed as a significant related party transaction wherever it exceeds 10%
of all related party transactions in that category:
• Interest Expense :
IDFC Financial Holding Company Limited ` 7.61 crore (Previous year ` 3.99 crore)
• Interest income earned :
• Managerial Remuneration :
Mr. V. Vaidyanathan ` 6.18 crore (Previous year ` 8.72 crore)
• Receiving of services
IDFC Limited ` 0.35 crore (Previous year ` 0.27 crore)
• Rendering of services
• Sale of fixed assets
IDFC Limited ` 0.09 crore (Previous year Nil)

Notes
(` in crore)
Related Party
Particulars Associates
Interest expense 7.62 - 0.12
Interest income earned - 8.93 -
Managerial Remuneration^ - - 6.18
Receiving of services 0.35* - -
Rendering of services - 0.10 ß
Sale of fixed assets 0.09 - -
* Reimbursement of chairman office expenses done by the Bank to IDFC Limited for Dr. Rajiv Lall during the tenure of chairmanship till
September 4, 2020.
^ During FY 2020-21, the Board of Directors of the Bank, based on the recommendation of Nomination and Remuneration Committee, at its
(` in crore)
Related Party
Deposits with the Bank 7.73 - 0.93
Interest Accrued on Deposit - - ß
Loan and Advances including credit card balances - 341.40 ß
Investment of the Bank - 226.38 -
Investment of related party in the Bank # - - -
#
Bank.
The maximum balances payable to / receivable from the related parties of the Bank during the year ended March 31,
(` in crore)
Related Party
Deposits with the Bank 875.08 - 6.54
Loan and Advances including credit card balances - 351.00 ß
Investment of the Bank - 226.38 -
* Amount less than ` 50,000 is denoted by ß
264 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
(` in crore)
Related Party
Entities having Fellow Subsidiary Key Management
Significant Influence Companies Personnel
Interest expense 4.01 - - 0.07
Purchase of investments 51.61 - - -
Managerial Remuneration - - - 8.72
STATUTORY REPORTS
Rendering of services 0.27 - 0.10 -
(` in crore)
Related Party
Deposits with the Bank 609.43 - - 6.58
Interest Accrued on Deposit 0.54 - - -
Investment of related party in the Bank# - - - -
Advances - - 351.00 -
Investment of the Bank - - 226.38 -
#
As at March 31, 2020, IDFC Financial Holding Company Limited holds 1,923,961,207 and KMP holds 25,081,117 equity shares in the Bank.
The maximum balances payable to / receivable from the related parties of the Bank during the year ended March 31,
(` in crore)
Related Party
Deposits with the Bank 614.44 - - 10.03
Advances - - 351.00 -
Investment of the Bank - - 226.38 -
18.08 Earnings per share (‘EPS’)
Basic and diluted earnings per share are computed in accordance with AS 20 - Earnings per share. Basic earnings per
equity share is computed by dividing net profit after tax attributable to equity shareholders by the weighted average
number of equity shares outstanding during the year. Diluted earnings per equity share is computed by dividing net
profit after tax attributable to equity shareholders by the weighted average number of equity shares and weighted
average number of dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive.
Dilution of equity is on account of stock options granted to employees by the Bank.
Basic
Net Profit after Tax ( ` in crore) 483.18 (2843.39)
Basic earnings per share ( ` ) 0.88 (5.94)
Diluted
Net Profit after Tax ( ` in crore) 483.18 (2843.39)
Diluted earnings per share ( ` ) 0.87 (5.86)
Nominal value of shares ( ` ) 10.00 10.00

Notes
18.09 Unclaimed Shares

Details of unclaimed shares as of March 31, 2021 and March 31, 2020 are as follows :
Aggregate number of shareholders at the beginning of the year 99 99

Total outstanding shares in Unclaimed Suspense Account at the beginning of the 28,253 28,253
year
Number of shareholders who approached to issuer for transfer of shares from - -
Unclaimed Suspense Account during the year
Number of shareholders to whom shares were transferred from Unclaimed Sus- - -
pense Account during the year
Aggregate number of shareholders at the end of the year 99 99
Total outstanding shares in Unclaimed Suspense Account at the end of the 28,253 28,253
year
18.10 Leases
In accordance with Accounting Standard 19 on ‘Leases’ as specified under Section 133 of the Companies Act 2013
read with Rule 7 of the Companies (Accounts) Rules, 2014, the following disclosures in respect of operating leases are
made:
(This comprises of office premises / branches / ATMs taken on lease)
(` in crore)
Future lease rentals payable as at the end of the year :

Not later than one year 247.79 214.35
Later than one year and not later than five years 724.92 589.76
Later than five years 252.82 210.70
Total of minimum lease payments recognised in the Profit and Loss Account for 307.45 249.49
the year
Total of future minimum sub-lease payments expected to be received under - -
non-cancellable subleases
Sub-lease payments recognised in the Profit and Loss Account for the year - -
The Group has not sub-leased any of its properties taken on lease. There are no provisions relating to contingent rent.
The terms of renewal / purchase options and escalation clauses are those normally prevalent in similar agreements.
There are generally no undue restrictions or onerous clauses in the agreements.
18.11 Other Fixed Assets
The movement in fixed assets capitalised as Intangible assets is given below :
(` in crore)
March 31, 2021 March 31, 2020
Particulars
Software Other Intangibles* Software Other Intangibles*
Cost
At the beginning of the year 791.25 2,599.35 655.69 2,599.35
Additions during the year 295.69 - 135.62 -
Total (i) 1,086.94 2,599.35 791.32 2,599.35
Depreciation
Accumulated depreciation at the 515.01 2,599.35 350.54 2,599.35
beginning of the year
Depreciation charge for the year 159.35 - 164.47 -
Total (ii) 674.36 2,599.35 515.01 2,599.35
Net Value (i-ii) 412.58 - 276.31 -
* Other intangibles includes Goodwill & Brand acquired and arising on amalgamation
266 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
18.12 Corporate Social Responsibility (CSR)
i Amount required to be spent by the Group on CSR during the year ` 1.02 crores (Previous Year ` 0.76 crores).
ii Amount spent towards CSR during the year and recognised as expense in the statement of profit and loss on CSR
related activities is ` 20.64 crores (Previous Year ` 8.08 crores), which comprise of following -
(` in crore)
Yet to be paid in
STATUTORY REPORTS
On purpose other than above 20.49 0.16 20.64
(` in crore)
Yet to be paid in
On purpose other than above 8.08 - 8.08
18.13 Proposed dividend
The Bank did not declare any dividend for the financial year ended March 31, 2021 and March 31, 2020.
18.14 Small and Micro Industries
‘Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from October 2, 2006,
certain disclosures are required to be made relating to Micro, Small and Medium enterprises.During the year ended
March 31, 2021 ` 23.91 crores (previous year Nil) worth bills were paid with delays to micro and small enterprises
and ` 1.86 crores worth bills remained unpaid as at March 31, 2021. There have been no demand of interest on these
payments.
18.15 The Bank pays loan servicing fees to business correspondents for services rendered towards sourcing and
servicing of loans and other related activities. These were hitherto netted off from “Interest/discount on advances/bills”
in the profit and loss account. During the year ended March 31, 2021, the Bank has changed this presentation and
accordingly reclassified them as part of “Operating Expenses” with the corresponding change in the previous year.
Basis this change, all relevant disclosures have been regrouped / reclassified wherever applicable.
(` in crore)
Year ended
31.03.2020
Interest/discount on advances/bills - As reported 12,007.17
Interest/discount on advances/bills - As per reclassification 12,074.80
Operating Expenses - As reported 5,764.80
Operating Expenses As per reclassification 5,832.43
18.16 In accordance with the instructions in the RBI circular RBI/2021-22/17 DOR.STR.REC.4/21.04.048/2021-22
circular dated April 7, 2021, the Holding Company shall refund / adjust ‘interest on interest’ to all borrowers including
those who had availed of working capital facilities during the moratorium period, irrespective of whether moratorium had
been fully or partially availed, or not availed. As required by the RBI notification, the methodology for calculation of such
interest on interest has recently been circulated by the Indian Banks’ Association. The Holding Company is in process of
implementing this circular. As at March 31, 2021, the Holding Company has created a liability towards estimated interest
relief of ` 55.00 crores and reduced the same from the interest income.
18.17 Disclosure of penalties imposed by RBI
During the year ended March 31, 2021 no penalty was imposed by RBI. During the previous year, RBI imposed a penalty
of ` 10,000 on the Bank with respect to certain deficiencies observed on note /coin exchange and clean note policy
during the incognito visit to the branch.

Notes
18.17 Description of contingent liabilities

i Claims against the Group not acknowledged as debts
The entities under the Group is a party to taxation matters which are in dispute and are under appeal. The demands
have been partly paid / adjusted and will be received as refund if the matters are decided in favour of the Group.
The Group is a party to various legal proceedings in the normal course of business. The Group does not expect
the outcome of these proceedings to have a material adverse effect on the Group’s financial conditions, results of
operations or cash flows.
ii Liability for partly paid investments
This represents amounts remaining unpaid towards liability for partly paid investments. These payment obligations
of the Group do not have any profit / loss impact.
iii Liability on account of forward exchange and derivative contracts
The Group enters into foreign exchange contracts, currency options, forward rate agreements, currency swaps
and interest rate swaps with inter-bank participants on its own account and for customers. Forward exchange
contracts are commitments to buy or sell foreign currency at a future date at the contracted rate. Currency swaps
are commitments to exchange cash flows by way of interest / principal in one currency against another, based on
predetermined rates. Interest rate swaps are commitments to exchange fixed and floating interest rate cash flows.
Interest rate futures are standardised, exchange-traded contracts that represent a pledge to undertake a certain
interest rate transaction at a specified price, on a specified future date. Forward rate agreements are agreements
to pay or receive a certain sum based on a differential interest rate on a notional amount for an agreed period. A
foreign currency option is an agreement between two parties in which one grants to the other the right to buy or sell
a specified amount of currency at a specific price within a specified time period or at a specified future time. An
exchange traded currency option contract is a standardised foreign exchange derivative contract, which gives the
owner the right, but not the obligation, to exchange money denominated in one currency into another currency at a
pre-agreed exchange rate on a specified date on the date of expiry. Currency Futures contract is a standardised,
exchange-traded contract, to buy or sell a certain underlying currency at a certain date in the future, at a specified
price.
With respect to transactions entered by customers, the Group generally takes off-setting positions in the inter-bank
markets which results into higher numbers of outstanding contracts. The same also leads to representation of large
gross notional principal of the portfolio, while the actual credit /market risk is much smaller.
Further, the notional amount of the financial instruments do not represent the current fair value or future cash flows
and hence do not indicate Banks’ exposure to credit or price risk. The derivative instrument becomes an asset /
liability basis change in underlying market rates compared to contracted rates.
iv Guarantees given on behalf of constituents
As a part of its banking activities, the Group issues guarantees on behalf of its customers to enhance their credit
standing. Guarantees represent irrevocable assurances that the Group will make payments in the event of the
customer failing to fulfil its financial or performance obligations.
v Acceptances, endorsements and other obligations
These includes documentary credit issued by the Group on behalf of its customers and bills drawn by the Group’s
customers that are accepted or endorsed by the Group.
vi Other items
Other items represent estimated amount of contracts remaining to be executed on capital account. This also
includes the amount of investments bought and remaining to be settled on the date of financial statements.
268 IDFC FIRST Bank

Notes
CORPORATE OVERVIEW
18.19 Statement of Net Assets as per Schedule III to the Companies Act, 2013
Net assets, i.e. total assets minus total
Share of profit or (loss)
liabilities
Name of the entity
Amount Amount
% of total % of total
(` in crore) (` in crore)
Holding company
IDFC FIRST Bank 99.49 17,807.89 93.61 452.28
Subsidiary
IDFC Bharat Limited 1.02 182.33 6.39 30.90
STATUTORY REPORTS
Associate
Millennium City Expressways Private Limited - - - -
Inter-company adjustments (0.51) (90.51) - -
Total net assets/net profit 100.00 17,899.71 100.00 483.18
Period ended March 31, 2020
Net assets, i.e. total assets minus total
Share of profit or (loss)
liabilities
Name of the entity
Amount Amount
% of total % of total
(` in crore) (` in crore)
Holding company
IDFC FIRST Bank 99.60 15,342.60 100.73 (2,864.21)
Subsidiary
IDFC Bharat Limited 0.98 151.41 (0.73) 20.82
Associate
Millennium City Expressways Private Limited - - - -
Inter-company adjustments (0.59) (90.49) - -
Total net assets/net profit 100.00 15,403.52 100.00 (2,843.39)
18.20 Additional disclosure
Additional statutory information disclosed in the separate financial statements of the Bank and subsidiary have no
material bearing on the true and fair view of the Consolidated Financial Statements and the information pertaining to the
items which are not material have not been disclosed in the Consolidated Financial Statements.
18.21 COVID-19 Regulatory Package - Asset Classification and Provisioning:
The impact of COVID-19, including changes in customer behaviour and pandemic fears, as well as restrictions on
business and individual activities, has led to significant volatility in global and Indian financial markets and a significant
decrease in global and local economic activity, which may persist even after the restrictions related to the COVID-19
outbreak are being lifted. While the easing of restrictions has driven a revival in economic activity across sectors,
the continued slowdown has impacted lending business, fee income generation from sale of third party products,
collection efficiency etc. Further, there may be a rise in the number of customer defaults and consequently an increase
in provisions. The extent to which the COVID-19 pandemic, including the current “second wave” will continue to impact
the Bank’s operations and asset quality will depend on future developments, which are highly uncertain. The current
second wave COVID-19 pandemic where the number of cases have increased significantly in India, has resulted into
re-imposition of localised / regional lock down measures in various parts of the country. The Holding Company’s capital
and liquidity position is strong and would continue to be the focus area for the Holding Company during this period.
In accordance with the RBI guidelines on ‘COVID-19 Regulatory Package’ of March 27, 2020, April 17, 2020 and May
23, 2020, the Holding Company granted moratorium on repayment of instalments and/or interest, as applicable, due
between March 1, 2020 and August 31, 2020 to all eligible borrowers. For all eligible accounts, where the moratorium
was granted, the asset classification was under standstill during the moratorium period (i.e. the number of days past-
due shall exclude the moratorium period for the purposes of asset classification under the Income Recognition, Asset
Classification and Provisioning norms).
During the year ended March 31, 2021, the Holding Company has made an additional COVID-19 related provision (net)
amounting to ` 375.00 crores.

Notes
18.22 Comparative figures

Figures for the previous year have been regrouped and reclassified wherever necessary to conform to the current
year’s presentation.

18.23 The figures of ` 50,000 or less have been denoted by ß .


270 IDFC FIRST Bank

Basel Pillar III Disclosures
Pillar 3 disclosures as at March 31, 2021 as per Basel III guidelines of Reserve Bank of India have been disclosed separately
on the Bank’s website under “Regulatory Disclosures” on the home page.
THE SECTION CONTAINS FOLLOWING DISCLOSURES:

1. Qualitative and Quantitative disclosures as at March 31, 2021
• Scope of Application
• Capital Adequacy
• Credit Risk - General Disclosure
• Credit Risk – Disclosures for portfolios subject to standardised Approach
• Credit Risk Mitigation - Disclosure under standardised Approach
• Securitisation Exposures - Disclosure under standardised Approach
• Market Risk in Trading Book
• Operational Risk
• Interest rate risk in the Banking Book (‘IRRBB’)
• General Disclosure for exposures related to Counterparty Credit Risk
• Equities - Disclosure for Banking Book Positions
2. Leverage Ratio as at March 31, 2021
3. Reconciliation of leverage ratio exposure under common disclosure template at March 31,2021
4. Liquidity Coverage Ratio as at March 31, 2021
5. Capital Disclosure
• Composition of Capital
• Composition of Capital & reconciliation requirements
• Main Features of Regulatory Capital Instruments March 31, 2021
• Terms and Conditions of Equity Shares
The link to this section is https://www.idfcfirstbank.com/regulatory-disclosures.html

Corporate Identity Number:

L65110TN2014PLC097792
Naman Chambers, C-32, G-Block,

Bandra-Kurla Complex, Bandra (East),
Mumbai - 400 051, Maharashtra, India
Tel: + 91 22 7132 5500
Fax: +91 22 2654 0354

Annual Report 2020 21

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ANNUAL REPORT

2020-21 ALWAYS YOU FIRST

SET FOR GROWTH

54 First Impact: Corporate

Annual Report 2020-21 1

`45,896 CRORE 4.98%

13.77% `17,808 CRORE

2 IDFC FIRST Bank

Gujarat Madhya Pradesh West Bengal

Annual Report 2020-21 3

4 IDFC FIRST Bank

class” banks in India.

Annual Report 2020-21 5

purpose of our existence.

6 IDFC FIRST Bank

As on Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 YoY Growth

Annual Report 2020-21 7

8 IDFC FIRST Bank

Annual Report 2020-21 9

Q3 FY 19 (merger quarter) Q4 FY 21 Increase %

Funded Assets ` 1,04,660 cr ` 1,17,127 cr 11.9%

Core Income (NII plus Fees) ` 1,495 cr ` 2,616 cr 75.0%

10 IDFC FIRST Bank

Annual Report 2020-21 11

12 IDFC FIRST Bank

Annual Report 2020-21 13

Strong Capital and

14 IDFC FIRST Bank

Annual Report 2020-21 15

Proactive and Transparent

16 IDFC FIRST Bank

Annual Report 2020-21 17

Financial Express, August 6, 2021

18 IDFC FIRST Bank

Economic Times, May 10, 2021

20 IDFC FIRST Bank

Economic Times, July 19, 2021

The Hill Times, March 13, 2021

22 IDFC FIRST Bank

Mint, July 19, 2021

Annual Report 2020-21 23

24 IDFC FIRST Bank

Annual Report 2020-21 25

OUR LATEST AD CAMPAIGN

26 IDFC FIRST Bank

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MONTHLY INTEREST CREDIT: FINANCIAL INFORMATION HUMAN RESOURCES

28 IDFC FIRST Bank

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CORPORATE SALARY ACCOUNTS:

Annual Report 2020-21 29

IDFC FIRST BANK CREDIT CARDS – DIGITAL-FIRST AND SUPER REWARDING

FIRST Millennia: FIRST Wealth:

30 IDFC FIRST Bank

Lifetime Free (No Annual Fees

Usually static and high interest Dynamic Interest Rate

Interest on ATM cash Interest-Free Cash Withdrawal (Up

APPROACH TO THE CREDIT CARD BUSINESS

mobile App New Issuance (‘000) Cards in Force (‘000)

Annual Report 2020-21 31