IDFCFIRSTB

April 3 (Reuters) - IDFC First Bank Ltd IDFB.NS:

• IDFC FIRST BANK - LOANS & ADVANCES GREW 20% YOY AS OF MARCH 31, 2026

• IDFC FIRST BANK - CUSTOMER DEPOSITS GREW 17.2% YOY AS OF MARCH 31

Source text: ID:nBSE9xnW9h

Further company coverage: IDFB.NS

((Reuters.Briefs@thomsonreuters.com;;))

March 11 (Reuters) - INDIA'S FINANCIAL CRIME FIGHTING AGENCY CONDUCTS SEARCHES TO INVESTIGATE ALLEGED FRAUD AT IDFC FIRST BANK - GOVERNMENT SOURCE

Further company coverage: IDFB.NS

((Reuters.Briefs@thomsonreuters.com;))

March 10 (Reuters) - IDFC First Bank Ltd IDFB.NS:

• IDFC FIRST BANK LTD - RECEIVED CLAIMS AND PAID NET PRINCIPAL AMOUNT OF 6.45 BILLION RUPEES

Source text: [ID:]

Further company coverage: IDFB.NS

((Reuters.Briefs@thomsonreuters.com;;))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, March 9 (Reuters Breakingviews) - A dealmaking boom in India's banking sector has an unlikely loser: the government. Canadian insurance holding firm Fairfax Financial FFH.TO leads the race to buy a 61% stake from Indian state entities in $13 billion IDBI Bank IDBI.NS, Bloomberg reported in February, citing sources. An $8 billion transaction would be the largest-ever foreign direct investment in a local bank. But crystallising a premium valuation looks challenging.

A deal would complete a full circle for the lender hardest hit by an asset quality crisis: in 2018, bad loans comprised nearly one-third of its portfolio. Provisions for that sour pool eroded its capital base and prompted New Delhi, which then owned 86% of IDBI, to press state-backed Life Insurance Corporation LIFI.NS to pump in 216 billion rupees, or $2.4 billion at current rates, to raise its 8% stake to 51% in 2019.

LIC now holds 49% of IDBI's shares and the government owns 45%. Selling a 30% stake to Fairfax at the latest market price would fetch the insurer a 136% return on its 2019 investment. New Delhi would be worse off, though: the lender's shares trade lower than they did 13 years ago.

Yet even current multiples may be difficult to fetch. IDBI's shares are trading at about 2 times forward book value, almost twice that of similar-sized rivals Yes Bank YESB.NS and IDFC First Bank IDFB.NS. Throwing in employee liabilities, restructuring costs and the likely absence of indemnity clauses gives the buyer a strong case for a discount.

An abundance of takeover targets has hurt New Delhi, too. Launched in 2022, the slow-moving sale process of IDBI prompted early potential bidders to look elsewhere: last year Sumitomo Mitsui Banking Corporation 8316.T bought a 24% stake in Yes Bank.

With Emirates NBD ENBD.DU still in the reckoning with Fairfax, it's a two-horse race to own IDBI. Both bidders already have a foothold in India's credit market: the Dubai-headquartered lender is set to take control of the $2 billion RBL Bank RATB.NS and Fairfax owns $675 million CSB Bank CSBB.NS.

That chips away at any shred of bargaining power left with the sellers, who can hardly demand a control premium. Regulations cap voting rights of private bank shareholders at 26%. That puts the new owner effectively at par on voting decisions with LIC and the government, which will hold a combined 34% after the sale. To maximise takings, officials could ask the central bank to relax the voting rule. The other option is to reduce their total stake to well below 26%.

Otherwise, New Delhi risks catching the weak end of India's banking M&A wave.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Fairfax Financial Holdings is the frontrunner to buy a majority stake in IDBI Bank, Bloomberg reported on February 27, citing unnamed people familiar with the matter.

Valuing the 61% stake that the government and the Life Insurance Corporation of India hold in IDBI at the current market price of about $8 billion could make it the biggest foreign direct investment in the country's banking sector, the report added.

(Editing by Antony Currie; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/shritama.bose@thomsonreuters.com))

** BofA downgrades India's IDFC First Bank IDFB.NS to "neutral" from "buy"

** Brokerage says suspected fraud could affect current and savings accounts (CASA) growth as customers might pull out deposits and other governments could de-empanel the bank

** Also cites potential one-time impact of 5.90 billion rupees ($64.9 million) in its earnings

** Cuts FY27/28 loan growth estimates by 1-2%, deposit growth estimates by up to 3%, price objective to 75 rupees from 95 rupees

** Adds, likely pressure on net interest margin on higher funding cost from CASA disruption and increasing competition in deposits market

** Avg rating of 20 analysts on IDFB at "hold"; median PT is 80 rupees - data compiled by LSEG

** YTD, stock down 16.8%

($1 = 90.8650 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru)

((Kashish.tandon@thomsonreuters.com))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Feb 25 (Reuters Breakingviews) - Confidence in India’s financial sector is always provisional. The latest reminder comes from IDFC First Bank IDFB.NS, whose shares have struggled to rebound after plunging 16% on Monday, when the $7 billion lender flagged a suspected fraud involving Haryana state government accounts. The selloff looks excessive. But the bank’s inconsistent earnings record since its enlargement from a 2018 merger between IDFC Bank and Capital First – a non-bank lender once favoured by foreign investors – helps explain why the market is reluctant to give management the benefit of the doubt.

The institution, backed by Warburg Pincus with a 10% stake and Abu Dhabi Investment Authority with 5%, is investigating the episode, which involves old-school cheque deception and amounts to 5.9 billion rupees ($65 million). Chief executive V. Vaidyanathan has describedit as “a specific isolated incident” confined to a single branch. The bank has suspended employees and ordered a forensic audit.

IDFC has moved quickly to contain the damage. It has paid out the full amount claimed by Haryana after Nayab Singh Saini, the state's chief minister, accused the bank of delaying action on the fraud. The hit more than wipes out earnings for the three months to December 2025 and equals about 38% of full‑year profit. Yet IDFC's blunt response should reduce the risk of other states following Haryana in cutting ties with the lender; government deposits account for roughly 10% of its funding base.

Vaidyanathan, founder of Capital First—the lender Warburg Pincus originally backed—has steered the enlarged bank well. He has built a low‑cost liability franchise that now accounts for 52% of total deposits, the highest share among mid‑sized private banks. Its tier‑1 equity capital ratio of 14% is also comfortably above the 9% regulatory minimum.

Yet despite net profit having trebled over the past four financial years, earnings have been uneven. Microcredit problems cut profit by 48% in the year to March 2025, while provisions for stressed infrastructure loans dragged on results in earlier years. Investors scarred by years of misreporting by Indian banks will sell on any sign of weakness.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

IDFC First Bank delayed addressing suspected fraudulent activity in government accounts, Nayab Singh Saini, Chief Minister of the northern state of Haryana said on February 23. A day later the bank said it has paid the state its entire claim of a net 5.83 billion rupees ($64 million).

The private bank on February 21 said it was investigating a suspected fraud of nearly 6 billion rupees by some employees involving accounts of local government entities and that the bank had alerted the police.

Shares in IDFC First fell 16% to 70.04 rupees on February 23 and have since recovered just 1%.

(Editing by Una Galani; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/shritama.bose@thomsonreuters.com))

By Gopika Gopakumar

MUMBAI, Feb 24 (Reuters) - India's IDFC First Bank IDFB.NS has paid a net amount of 5.83 billion rupees ($64.1 million) in principal and interest to departments of the northern state of Haryana, the lender said on Tuesday, following suspected fraudulent transactions in the accounts led to an investigation.

On Saturday, the mid-sized private bank disclosed suspected fraudulent transactions totaling 5.9 billion rupees in accounts linked to the Haryana state government, which led to the suspension of four employees and a forensic audit by KPMG.

The state has launched an investigation and dropped IDFC First from a list of banks that handle government business.

On Monday, Haryana Chief Minister Nayab Singh Saini said the discrepancies were first detected in January.

The entire amount, including an interest of approximately 220 million rupees, has been deposited back into accounts, Saini told the state legislative assembly on Tuesday, according to a video published by news agency ANI.

Saini said that the state will form a high-level committee to hold the officers and employees involved in the suspected fraud accountable and recommend measures to prevent a repeat.

Reuters holds a minority stake in ANI.

($1 = 90.9580 Indian rupees)

(Reporting by Gopika Gopakumar; Editing by Mrigank Dhaniwala)

((Gopika.Gopakumar@thomsonreuters.com;))

By Gopika Gopakumar and Manoj Kumar

MUMBAI, Feb 23 (Reuters) - Indian private lender IDFC First Bank IDFB.NS delayed acting on suspected fraudulent activity in government accounts, chief minister of the northern state of Haryana said on Monday.

The bank disclosed on Saturday suspected fraudulent transactions totaling 5.9 billion rupees ($65 million) in accounts linked to the Haryana state government, which led to the suspension of four employees and a forensic audit by KPMG. Shares of the bank plunged on Monday.

Nayab Singh Saini, chief minister of Haryana, told the state legislative assembly that the discrepancies were first detected in January, according to a statement.

The government instructed the bank to close the accounts and transfer the funds along with interest to another lender but IDFC First did not do so, Saini said.

The instructions were issued again at the end of January, after which "more serious" discrepancies were detected in February, when inconsistencies were found between the documents provided by the bank and government records, Saini said.

The bank accounts saw multiple transactions without state approval over the past 3 months, the minister said, without providing exact details on the number of accounts or the quantum of funds moved.

On February 18, the state finance department ordered the closure of all accounts held with IDFC First Bank, according to the statement.

Haryana has referred the matter to State Vigilance & Anti‑Corruption Bureau for investigation, Saini said.

Another lender, AU Small Finance Bank AUFI.NS, has also been dropped from the list of banks that operate Haryana government accounts, the government said, without giving a reason.

AU Small Finance has acknowledged the receipt of queries from the state government but has ruled out fraud.

Emails to IDFC First Bank and AU Small Finance Bank seeking responses to the state's comments were not immediately answered.

(Reporting by Gopika Gopakumar in Mumbai & Manoj Kumar in Delhi; Editing by Mrigank Dhaniwala)

((Gopika.Gopakumar@thomsonreuters.com;))

NEW DELHI, Feb 22 (Reuters) - India's IDFC First Bank said it was investigating a suspected fraud of $65 million by some employees involving accounts of local government entities and that the bank had alerted the police.

In a statement to the Bombay Stock Exchange late on Saturday, IDFC First said it had observed discrepancies of 5.9 billion rupees in accounts of some entities of the Haryana state government in the north of the country.

The Mumbai-based midsize private lender said it had suspended four employees of the branch in the city of Chandigarh pending investigation of the "incident involving unauthorized and fraudulent activities".

The bank, which attracted investments from the likes of Warburg Pincus and Abu Dhabi Investment Authority last year, said it would appoint an independent agency to probe the incident and had filed a police complaint.

The Haryana state government and police did not immediately respond to requests for comment on Sunday.

The discrepancies were spotted when the government entities requested the closure of accounts and the amounts claimed by the two sides did not match, the bank said.

IDFC First Bank reported a profit of $55.46 million in the last quarter.

($1 = 90.7010 Indian rupees)

(Reporting by Arpan Chaturvedi; Editing by William Mallard)

((Arpan.Chaturvedi@thomsonreuters.com;))

Feb 11 (Reuters) - IDFC First Bank Ltd IDFB.NS:

• IDFC FIRST BANK LTD - RBI APPROVES ICICI PRUDENTIAL TO BUY 9.95% OF IDFC FIRST BANK

• IDFC FIRST BANK LTD - RBI STATES APPROVAL CANCELLED IF ACQUISITION NOT COMPLETED IN ONE YEAR

Source text: ID:nNSE94R6P9

Further company coverage: IDFB.NS

((Reuters.Briefs@thomsonreuters.com;))

By Bharath Rajeswaran and Nishit Navin

BENGALURU, Oct 9 (Reuters) - Indian banks are poised to report subdued earnings for the September quarter, weighed down by tepid loan demand across retail and corporate segments and margin contraction due to rate cuts by the central bank, analysts said.

The Reserve Bank of India has lowered its interest rate by 100 basis points this year to revive consumption and investment amid a slowing economy. Rate cuts tend to squeeze banks' margins in the short term, as lenders reduce loan rates faster than they adjust deposit rates.

Analysts forecast private banks to post a year-on-year decline in profit in the September quarter, while net interest income (NII) may see only a marginal uptick.

Sector-wide profit is forecast to fall 7%-12% year-on-year in the quarter, with state-owned banks underperforming larger peers.

Jefferies estimates profits of large banks will fall 12% year-on-year, after posting an 8% growth in the year-ago quarter and a marginal 2% growth in the June quarter.

The brokerage forecasts 5% drop in profit for private lenders and a 20% decline for public sector banks. It expects loan growth at roughly 11% and a flat NII.

Axis Bank AXBK.NS will kick off the banking sector earnings on October 15, followed by Federal Bank FED.NS, ICICI Bank ICBK.NS, IDFC Bank IDFB.NS, IndusInd Bank INBK.NS later in the week.

"Asset quality trends are likely to remain stable due to controlled slippages and robust provision coverage ratios," said Nitin Aggarwal of Motilal Oswal.

Nomura added that stress in unsecured retail and microfinance portfolios remains elevated but delinquency trends are improving, although a gradual profit recovery is likely from the second half of fiscal 2026.

Loan growth is expected to remain muted at around 10% in the September quarter, with corporate and big-ticket retail demand still soft.

Rising bond yields are also likely to weigh on treasury income. "With bond yields rising, treasury gains will not cushion earnings in the September quarter," Axis Securities said.

Analysts expect a recovery from the second half of fiscal year 2026, driven by stronger consumption, government tax relief, and faster growth in unsecured credit.

"We expect the September quarter to mark a turning point, with earnings momentum improving from the December quarter onwards as margin pressure eases and asset quality trends strengthen," said Ankit Bihani, analyst at Nomura.

With the RBI keeping rates unchanged in recent meetings, banks' margins are expected to get some relief from the ongoing quarter as borrowing costs fall and deposit rates adjust.

Banks .NSEBANK, private lenders .NIFPVTBNK and state-owned banks .NIFTYPSU have gained 10.1%, 10.6% and 15% year-to-date, outperforming the Nifty 50's .NSEI 6% rise.

(Reporting by Nishit Navin and Bharath Rajeswaran; Editing by Eileen Soreng)

((nishit.navin@thomsonreuters.com; +91 8340791532))

Sept 19 (Reuters) - IDFC First Bank Ltd IDFB.NS:

• IDFC FIRST BANK LTD - RBI ACKNOWLEDGES CURRANT SEA INVESTMENTS' RIGHT TO APPOINT DIRECTOR

• IDFC FIRST BANK - CURRANT SEA INVESTMENTS B.V. TO APPOINT NON-EXECUTIVE DIRECTOR ON IDFC FIRST BANK BOARD

Source text: ID:nBSE9dk4QH

Further company coverage: IDFB.NS

((Reuters.Briefs@thomsonreuters.com;))

Repeats Sunday story, no changes to text

By Nikunj Ohri, Aftab Ahmed and Aditya Kalra

NEW DELHI, Aug 17 (Reuters) - Indian Prime Minister Narendra Modi's deepest tax cuts in eight years will strain government revenues but are winning praise from businesses and political pundits who say they will bolster his image in an ongoing trade fight with Washington.

In the biggest tax overhaul since 2017, Modi's government on Saturday announced sweeping changes to the complex goods and services tax (GST) regime which will make daily essentials and electronics cheaper from October, helping consumers and also companies like Nestle, Samsung and LG Electronics.

At the same time, in his Independence Day speech on Friday, Modi urged Indians to use more goods made domestically, echoing calls from many of his supporters to boycott U.S. products after Donald Trump hiked tariffs on imports from India to 50% as of August 27.

The tax cut plan comes with costs given GST is a major revenue generator. IDFC First Bank says the cuts will boost India's GDP by 0.6 percentage points over 12 months but will cost the state and federal government $20 billion annually.

But it will improve weak stock market sentiment and bring political dividends for Modi ahead of a critical state election in the eastern state of Bihar, said Rasheed Kidwai, a fellow at New Delhi-based Observer Research Foundation.

"GST reduction will impact everyone, unlike cuts to income tax, which is paid by only 3%-4% of the population. Modi is doing this as he is under a lot of pressure due to U.S. policies," said Kidwai.

"The move will also help the stock market, which is now politically important as it has a lot of retail investors."

India launched the major tax system in 2017 that subsumed local state taxes into the new, nationwide GST to unify its economy for the first time.

But the biggest tax reform since India's independence faced criticism for its complex design that taxes products and services under four slabs - 5%, 12%, 18% and 28%.

Last year, India said caramel popcorn would be taxed at 18% but the salted category at 5%, triggering criticism about a glaring example of GST's complexities.

Under the new system, India will abolish the 28% slab - which includes cars and electronics - and move nearly all of the items under the 12% category to the lower 5% slab, benefitting many more consumer items and packaged foods.

Government data shows the 28% and 12% tax slabs together garner 16% of India's annual GST revenue of roughly $250 billion last fiscal year.

'A BRIGHTER GIFT' AND POLITICS

Bihar is a key state politically and goes to the polls by November. A recent survey by the VoteVibe agency showed Modi's opposition has an edge largely because of a lack of jobs.

"Any tax cut has wide public appreciation. But of course, the timing is purely determined by political exigencies," said Dilip Cherian, a communications consultant and co-founder of Indian public relations firm Perfect Relations.

"It seems to be an indication of some mixture of frustration as well as recognition that there is a broad public pushback against high and crippling rates of taxation."

Modi's ruling Bharatiya Janata Party has seized on his tax announcement, posting on X that on the Hindu festival of lights, Diwali, "a brighter gift of simpler taxes and more savings is waiting for every Indian."

Modi has vowed to protect farmers, fishermen and cattlemen, following Trump's surprise tariff announcement on India, after trade talks between New Delhi and Washington collapsed over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases.

The latest round of trade talks between the two nations set for August 25-29 has also been called off.

($1 = 87.5080 Indian rupees)

(Reporting by Nikunj Ohri, Aftab Ahmed and Aditya Kalra; Editing by Sonali Paul)

((Email: aditya.kalra@tr.com; X: @adityakalra;))

By Nikunj Ohri, Aftab Ahmed and Aditya Kalra

NEW DELHI, Aug 17 (Reuters) - Indian Prime Minister Narendra Modi's deepest tax cuts in eight years will strain government revenues but are winning praise from businesses and political pundits who say they will bolster his image in an ongoing trade fight with Washington.

In the biggest tax overhaul since 2017, Modi's government on Saturday announced sweeping changes to the complex goods and services tax (GST) regime which will make daily essentials and electronics cheaper from October, helping consumers and also companies like Nestle, Samsung and LG Electronics.

At the same time, in his Independence Day speech on Friday, Modi urged Indians to use more goods made domestically, echoing calls from many of his supporters to boycott U.S. products after Donald Trump hiked tariffs on imports from India to 50% as of August 27.

The tax cut plan comes with costs given GST is a major revenue generator. IDFC First Bank says the cuts will boost India's GDP by 0.6 percentage points over 12 months but will cost the state and federal government $20 billion annually.

But it will improve weak stock market sentiment and bring political dividends for Modi ahead of a critical state election in the eastern state of Bihar, said Rasheed Kidwai, a fellow at New Delhi-based Observer Research Foundation.

"GST reduction will impact everyone, unlike cuts to income tax, which is paid by only 3%-4% of the population. Modi is doing this as he is under a lot of pressure due to U.S. policies," said Kidwai.

"The move will also help the stock market, which is now politically important as it has a lot of retail investors."

India launched the major tax system in 2017 that subsumed local state taxes into the new, nationwide GST to unify its economy for the first time.

But the biggest tax reform since India's independence faced criticism for its complex design that taxes products and services under four slabs - 5%, 12%, 18% and 28%.

Last year, India said caramel popcorn would be taxed at 18% but the salted category at 5%, triggering criticism about a glaring example of GST's complexities.

Under the new system, India will abolish the 28% slab - which includes cars and electronics - and move nearly all of the items under the 12% category to the lower 5% slab, benefitting many more consumer items and packaged foods.

Government data shows the 28% and 12% tax slabs together garner 16% of India's annual GST revenue of roughly $250 billion last fiscal year.

'A BRIGHTER GIFT' AND POLITICS

Bihar is a key state politically and goes to the polls by November. A recent survey by the VoteVibe agency showed Modi's opposition has an edge largely because of a lack of jobs.

"Any tax cut has wide public appreciation. But of course, the timing is purely determined by political exigencies," said Dilip Cherian, a communications consultant and co-founder of Indian public relations firm Perfect Relations.

"It seems to be an indication of some mixture of frustration as well as recognition that there is a broad public pushback against high and crippling rates of taxation."

Modi's ruling Bharatiya Janata Party has seized on his tax announcement, posting on X that on the Hindu festival of lights, Diwali, "a brighter gift of simpler taxes and more savings is waiting for every Indian."

Modi has vowed to protect farmers, fishermen and cattlemen, following Trump's surprise tariff announcement on India, after trade talks between New Delhi and Washington collapsed over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases.

The latest round of trade talks between the two nations set for August 25-29 has also been called off.

($1 = 87.5080 Indian rupees)

(Reporting by Nikunj Ohri, Aftab Ahmed and Aditya Kalra; Editing by Sonali Paul)

((Email: aditya.kalra@tr.com; X: @adityakalra;))

** IDFC First Bank IDFB.NS falls 2% to 75 rupees

** UBS initiates with "neutral", citing limited upside in return on assets (ROA) despite stable margins

** Sets PT of 85 rupees, implying 10% upside to last close

** Says Q1 performance may remain muted due to higher credit cost, margin pressure

** Expects net interest margin to remain stable at ~6.1% through FY25–FY28, with ROA at ~1% by FY27

** Sees improving cost/income and credit cost metrics; flags challenges in operating leverage, profitability

** Stock rated "buy" on average; median PT 77 rupees, per data compiled by LSEG

** YTD, IDFB gains 21%

(Reporting by Rudra Pratap Singh in Bengaluru)

((rudrapratap.singh@thomsonreuters.com))

July 3 (Reuters) - IDFC First Bank Ltd IDFB.NS:

• IDFC FIRST BANK LTD - EXECUTES AMENDMENT AGREEMENT WITH CURRANT SEA INVESTMENTS

• IDFC FIRST BANK- REVISED TERMS IN RELATION TO RIGHT OF INVESTOR TO NOMINATE 1 NON-EXEC DIRECTOR

Source text: ID:nBSE1Z7cFC

Further company coverage: IDFB.NS

((reuters.briefs@thomsonreuters.com;))

** Shares of IDFC First Bank IDFB.NS rise as much as 4.34% to 76 rupees, their highest level since September 30, 2024

** Investec upgrades the lender's stock to "buy" from "hold", raising its target price to a Street-high of 90 rupees from 65 rupees, implying a potential upside of 24.4%

** Brokerage expects a 29% CAGR in pre-provision operating profit, a metric to measure core profitability, between fiscal 2025 and 2028, the highest among Indian banks

** Sees gains from a 90-basis-point decline in credit costs due to easing liquidity and improvement in asset quality

** The average rating of 16 analysts tracking IDFB is "buy"; the median price target is 72 rupees, according to data compiled by LSEG

** IDFB shares are up 15.4% in 2025 so far outpacing the 12.5% rise in Nifty bank index .NSEBANK, exchange data shows

(Reporting by Bharath Rajeswaran in Bengaluru)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))

Update with company confirmation

By Ashwin Manikandan

June 5 (Reuters) - Walmart's WMT.N Flipkart has secured a lending licence from the Indian central bank and banking regulator, enabling it to offer loans directly to customers and sellers on its platform, a spokesperson for the company confirmed after Reuters reported the development citing documents and a source.

This is the first time the Reserve Bank of India has granted a large e-commerce player in India a non-bank finance company (NBFC) licence, allowing it to lend but not take deposits.

Most e-commerce platforms currently offer loans in tie-ups with banks and NBFCs, but a lending licence will enable Flipkart - India's largest e-commerce firm - to lend directly, a more lucrative model for the group.

The central bank issued its certificate of registration - a document that officially recognizes a company as an NBFC - to Flipkart Finance Private Limited on March 13.

Reuters has reviewed a copy of both the certificate of registration and the approval letter also dated March 13. The approval has not been previously reported.

Flipkart, in which U.S. retail behemoth Walmart holds a more than 80% stake, applied for the licence in 2022, according to the central bank’s approval letter.

The Reserve Bank of India did not immediately respond to Reuters' request for comments.

The e-commerce giant may commence its lending operation "in a few months", according to a source aware of the matter who declined to be identified as the talks are private.

A final decision on the launch will be subject to the completion of various internal processes such as the appointment of key management personnel and board members and the finalisation of business plans, the source said.

Flipkart plans to lend directly to its customers on its popular e-commerce platform and through its fintech app super.money, the source said. It may also offer financing to sellers on the platform, they added.

At present, the e-commerce giant offers personal loans to customers through tie-ups with lenders such as Axis Bank AXBK.NS, IDFC Bank IDFB.NS and Credit Saison.

Flipkart, last valued at $37 billion in 2024 when it raised $1 billion in a funding round led by Walmart, is shifting its holding company from Singapore to India. Walmart also aims to take the 17-year-old company public.

Walmart bought a controlling stake in Flipkart in 2018, which also gave it ownership of PhonePe, a fintech firm also preparing for an IPO.

Earlier this year Flipkart’s rival Amazon AMZN.O acquired a Bengaluru-based non-bank lender Axio, but the deal is yet to be cleared by the central bank.

(Reporting by Ashwin Manikandan; Editing by Jan Harvey and Ira Dugal.)

((Ashwin.Manikandan@thomsonreuters.com;))

May 20 (Reuters) - IDFC First Bank Ltd IDFB.NS:

• IDFC FIRST BANK - SHAREHOLDERS APPROVE 75 BILLION RUPEES FUND RAISE

Source text: ID:nBSE90M5b

Further company coverage: IDFB.NS

((Reuters.Briefs@thomsonreuters.com;;))

Updates with deal value in paragraphs 2-3

By Siddhi Nayak and Anton Bridge

MUMBAI/TOKYO, May 9 (Reuters) - Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) has signed a definitive agreement to take a 20% stake in Indian private lender Yes Bank YESB.NS, a deal that marks the largest cross-border merger and acquisition deal in India's financial sector.

The total value of the deal, which involves SMBC buying shares from eight existing shareholders, comes up to 134.8 billion rupees ($1.58 billion), Sumitomo Mitsui Financial Group 8316.T said in a statement.

SMBC, is a unit of Sumitomo Mitsui Financial Group and is Japan's second-biggest bank.

Restrictions on ownership, stricter capital requirements, and state domination of the banking sector have made cross-border deals a rarity across Indian banks. A takeover of troubled Lakshmi Vilas Bank by Singapore-based DBS Group DBSM.SI in 2020 was the last major deal in the sector.

SMBC's stake purchase in Yes Bank, which will make it the largest shareholder in the lender, also marks the latest major overseas acquisition by a Japanese financial institution as they look to secure new sources of growth after years of rock bottom interest rates at home and a shrinking domestic population.

Last month investment bank Nomura 8604.T acquired Macquarie Group's MQG.AX U.S. and European public asset management businesses for $1.8 billion and last December Nippon Life Insurance made Bermuda-based Resolution Life a wholly-owned subsidiary for around $8.2 billion.

As part of the deal, SMBC will acquire a 13.19% stake from State Bank of India SBI.NS, also its largest investor, and an aggregate of 6.81% from Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank Limited and Kotak Mahindra Bank, Yes Bank said in a stock exchange filing.

SBI holds a 24% stake in Yes Bank, as a result of the regulator-led restructuring of the lender in March 2020.

ICICI Bank ICBK.NS, HDFC Bank HDBK.NS, Kotak Mahindra Bank KTKM.NS, Axis Bank AXBK.NS and Life Insurance Corporation of India LIFI.NS together hold an 11.34% stake in Yes Bank.

The transaction is subject to regulatory approvals from the Reserve Bank of India, Competition Commission of India and shareholders of the Bank, Yes Bank said.

SMBC's investment "marks a pivotal step in our next phase of growth," CEO Prashant Kumar said in the release.

SMBC was advised by financial advisors JPMorgan and Jefferies, Yes Bank said.

Reuters had reported this week that SMBC was close to agreement on acquiring a stake in Yes Bank and had received a verbal go-ahead from the central bank.

Shares of Yes Bank closed nearly 10% higher ahead of the announcement on Friday and have gained 2.2% so far this year.

($1 = 85.3990 Indian rupees)

(Reporting by Siddhi Nayak in Mumbai and Anton Bridge in Tokyo
Editing by David Goodman and David Evans)

((siddhi.nayak@thomsonreuters.com; x.com/siddhiVnayak;))

** IDFC FIRST Bank IDFB.NS falls as much as 4.5% to 63.11 rupees

** Co's Q4 net profit falls 58% y/y fall as the bank doubled its provisions, keeping more funds aside to cover potential losses

** Jefferies says high credit costs, net interest margins (NIM) drag from microfinance loans resulted in weak Q4

** Expects trends to improve from Q2 FY26 as margin pressures from rate cuts start to normalise

** Bank's NIM fell 9 bps q/q to 5.95% in Q4

** Stock rated "hold" on avg; median PT is 69 rupees, per data compiled by LSEG

** YTD, IDFB gains 4.1%

(Reporting by Ashish Chandra in Bengaluru)

((ashish.chandra@thomsonreuters.com (+91 7982114624))

April 17 (Reuters) - IDFC First Bank Ltd IDFB.NS:

• IDFC FIRST BANK - APPROVES FUNDRAISE OF UP TO 75 BILLION RUPEES

• IDFC FIRST BANK - INVESTMENT AGREEMENT BETWEEN CURRANT SEA INVESTMENTS B.V., BANK

• IDFC FIRST BANK - APPROVED ISSUANCE OF SECURITIES BY WAY OF PREFERENTIAL ALLOTMENT

• IDFC FIRST BANK - APPROVED PREFERENTIAL ISSUE WORTH 48.76 BILLION RUPEES TO WARBURG PINCUS LLC AFFILIATE

• IDFC FIRST BANK - PREFERENTIAL ISSUE OF 26.24 BILLION RUPEES TO ABU DHABI INVESTMENT AUTHORITY UNIT

• IDFC FIRST BANK - WARBUG PINCUS TO HOLD 9.48%, ADIA TO HOLD 5.10% OF BANK ON CONVERSION OF CCPS

• IDFC FIRST BANK - PROPOSED FUND RAISE WILL INCREASE BOOK VALUE PER SHARE BY 2.3%

• IDFC FIRST BANK - PROPOSES TO GROW THE OVERALL LOAN BOOK AT ABOUT 20% FOR NEXT FEW YEARS

Source text: ID:nBSE5KPXDG

Further company coverage: IDFB.NS

((reuters.briefs@thomsonreuters.com;))

April 3 - ** Shares of IDFC First Bank IDFB.NS climb 3.2% to 59 rupees
** Private lender's loans and advances grows 20.3% y/y to 2.01 trillion rupees ($23.47 bln) as on March 31

** Bank's customer deposits rises 25.2% y/y to 1.94 trillion rupees as on March 31
** Stock heads for biggest weekly gain since week-ended June 12, 2023; up 7.8% for the week so far
** More than 94.2 mln shares traded, ~3x its 30-day moving avg
** Avg rating of 16 analysts covering the stock is "hold" and median PT is 67.5 rupees, ~14% higher than current price - data compiled by LSEG
** IDFB trims YTD losses to ~6%

($1 = 85.6500 Indian rupees)

(Reporting by Anuran Sadhu in Bengaluru)

((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))

Updates with details throughout, adds analysts', CEO comments

Jan 27 (Reuters) - Shares of IDFC First Bank IDFB.NS fell as much as 8% on Monday to their lowest in 21 months after the private lender said its third-quarter profit more than halved, hurt by delinquencies in microfinance loans.

The stock was on track for its biggest one-day percentage decline since June 4.

On Saturday, the Mumbai-based mid-sized private lender said gross slippages, or the loans classified as non-performing for the first time, in the microfinance segment jumped nearly 49% on-quarter to 4.37 billion rupees.

Provisions and contingencies more than doubled, dragging profit.

The bank's net profit fell 53% on-year to 3.39 billion rupees ($39.26 million) in the fiscal third quarter.

Net interest income, or the difference between interest earned on loans and paid in deposits, rose 14% on year to 49.02 billion rupees. The bank's loans increased by 22% from the year-ago quarter.

"The microfinance industry continues to drag earnings and we see the pain continuing for three-four quarters," analysts at Jefferies said in a note.

Microfinance loans, which are typically high-yielding assets, fell 19.3% on-year during the quarter and were down 12.2% sequentially.

"In the backdrop of lower growth in microfinance and some unsecured segments, topline growth will stay softer at 14-15% even as loans grow by 18-20%," Jefferies said.

The credit issues in the microfinance segment are "transitionary" and are likely to be resolved within a few quarters, CEO V Vaidyanathan said in a statement.

The stock is down about 9% so far this month, after losing nearly 29% last year.

IDFC First Bank continues to face challenges in managing high operating expenses and elevated credit cost, particularly in the microfinance segment, Centrum Broking said in a note.

The bank's asset quality will continue to remain an overhang due to the microfinance segment, JP Morgan said in a note, downgrading the stock to "underweight" rating from neutral.

($1 = 86.3470 Indian rupees)

(Reporting by Sethuraman NR and Siddhi Nayak; Editing by Eileen Soreng)

((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))

• India's FY25 fiscal deficit is estimated to be lower than budget but may not lead to any cut in borrowing via debt, IDFC First Bank says

• Says deficit estimated to be lower budget estimate by around 830 bln rupees ($9.66 bln)

• As a proportion of GDP, fiscal deficit is estimated at 4.7% vs 4.9% target

• Still, government is not expected to cut supply, given the strong demand for government bonds

• "Given expectation of fiscal deficit being lower than budget estimate plus strong non-competitive collection, there could be scope to cut t-bill issuance," economist Garua Sen Gupta says

• She expects 10-year benchmark bond yield IN067934G=CC to moderate to 6.50%-6.60% by March, from 6.76% current level

($1 = 85.9040 Indian rupees)

(Reporting by Dharamraj Dhutia)

((dharamraj.dhutia@tr.com))

Jan 3 (Reuters) - IDFC First Bank Ltd IDFB.NS:

• IDFC FIRST BANK LTD - CUSTOMER DEPOSITS GREW 28.8% Y/Y AS OF DEC END

• IDFC FIRST BANK LTD - LOANS & ADVANCES GREW 21.9% Y/Y AS OF DEC END

• IDFC FIRST BANK - TOTAL BUSINESS GREW 25.2% Y/Y AS OF DEC 31

Source text: [ID:]

Further company coverage: IDFB.NS

((reuters.briefs@thomsonreuters.com;))

Dec 27 (Reuters) - Reliance Infrastructure Ltd RLIN.NS:

• RELIANCE INFRASTRUCTURE - UNIT RECEIVES NOTICES FROM AXIS BANK AND IDFC FIRST BANK

• RELIANCE INFRASTRUCTURE LTD - NOTICES INVOKE RIGHT OF SUBSTITUTION UNDER CONCESSION AGREEMENT

• RELIANCE INFRASTRUCTURE LTD - NOTICES CITE ALLEGED DSRA DEFAULTS BY UNIT

• RELIANCE INFRASTRUCTURE - FINANCIAL IMPACT ON CO UNDETERMINED AT THIS STAGE

Source text: ID:nBSE3kWTMJ

Further company coverage: RLIN.NS

((Reuters.Briefs@thomsonreuters.com;;))

Adds India's chief economic adviser's comments

By Manoj Kumar and Shivangi Acharya

NEW DELHI, Nov 29 (Reuters) - India's economic growth slowed much more than expected in the third quarter, hampered by weaker expansions in manufacturing and consumption, likely adding pressure on the central bank for interest rate cuts.

Gross domestic output INGDPQ=ECI in the world's fifth-biggest economy rose by 5.4% in July-September year-on-year, data showed on Friday, the slowest pace in seven quarters and below a Reuters poll of 6.5%. In the previous quarter it grew 6.7%.

The gross value added (GVA), a more stable measure of economic activity, also saw a modest 5.6% growth, easing from a 6.8% increase in the previous quarter.

India's chief economic adviser V. Anantha Nageswaran told reporters the growth figure was disappointing amid a challenging global environment.

"The bulk of the slowdown has been predominantly due to the manufacturing sector ... Some of it is also due to the presence of excess capacity elsewhere and imports dumping in India," he said, highlighting surging imports of cheap steel from China, Japan and South Korea.

The slowdown, visible across a number of sectors, was indeed most pronounced in manufacturing, where year-on-year growth dropped to 2.2% compared with 7% the previous quarter.

"The economy has hit a bump on its post-pandemic recovery path, with a much slower manufacturing sector and mining sector dragging down growth prospects," said Suman Chowdhury, chief economist at Acuite Ratings.

Economists say inflation, now running at around 6%, is biting into demand for goods ranging from soaps to shampoos to cars, particularly in urban areas. Private consumer spending rose 6.0% from a year earlier, compared with 7.4% in the previous quarter.

The slowdown also came despite government spending rising 4.4% year-on-year in July-September, compared with a 0.2% contraction the previous quarter.

Helped by a good monsoon, agricultural output did better, rising 3.5% compared from 2% growth the previous quarter.

The government adviser said that growth prospects were still resilient and that rural demand would remain a supporting factor.

RED FLAGS

Third-quarter corporate earnings had hinted at a slowdown in the country.

More than 50% of the 44 firms in the blue-chip Nifty 50 index .NSEI that have reported earnings have either missed analysts' estimates or reported results in line with expectations, according to data compiled by LSEG.

Companies like Maruti Suzuki MRTI.NS and FMCG giants Nestle India NEST.NS and Hindustan Unilever HLL.NS reported sluggish urban consumption in the September quarter.

Growth in inflation-adjusted wage costs for listed Indian firms - a proxy for the earnings of urban Indians - has remained below 2% for all the three quarters of 2024, well below the 10-year average of 4.4%, data from Citi showed.

Slower earnings growth prompted record foreign outflows of nearly $12 billion from the Indian equity markets in October.

PRESSURE ON RBI

Bond yields and overnight index swap rates, seen as an indicator of interest rates, fell after the GDP release, signalling an increased probability of an interest rate cut in February.

A few economists, however, said the Reserve Bank of India (RBI) may even consider a rate cut in December.

"Post today's (GDP) print, there is a high probability of an RBI rate cut in December," said Gaura Sen Gupta, economist at Mumbai-based IDFC First Bank.

India's finance and trade ministers have called for lower interest rates to help industries to ramp up investments and build capacities, although Nageswaran kept his council when speaking to reporters.

"All of us see the data, the central bank is also seeing the data. They know what to do and I will be not commenting on this question," the government's chief economic adviser said.

The RBI's Monetary Policy Committee (MPC) left its benchmark repo rate INREPO=ECI unchanged at 6.50% last month due to still high inflation, while tweaking its policy stance to "neutral".

The bank, which last cut rates in May 2020, announces its next policy decision on Dec. 6.

(Reporting by Manoj Kumar and Aftab Ahmed; Editing by Susan Fenton and Hugh Lawson)

((manoj.kumar@thomsonreuters.com; +919810286200; Twitter:@manojgulnar;))

MUMBAI, Oct 31 (Reuters) - Indian banks' loan growth moderated this September, compared with the same month a year ago, central bank data showed on Thursday, as the impact of the Reserve Bank of India's clampdown on "exuberance" in retail lending continued.

Banks' credit grew at 14.4% year-on-year last month, slower than the 15.3% increase in September 2023, excluding the impact of HDFC Bank merging with parent Housing Development Finance Corp (HDFC), the RBI said.

Including the impact of the merger, banks' loans grew 13% last month, compared with 20% a year ago.

Loan growth had moderated in August as well.

Indian banks have consistently reported double-digit loan growth for a while, helped by healthy economic growth and urban consumption. However, the RBI, worried about the risk of bad loans, imposed higher capital requirements on banks late last year.

Despite that, some segments, such as personal loans and credit card loans posted strong growth, in excess of 25%, until earlier this year when the central bank governor warned against "exuberance".

The RBI followed up on its norms with a series of actions against non-complying entities and that, along with rising defaults especially in the once fast-growing segments like personal loans and credit cards, have slowed both loan growth.

Banks' personal loan growth halved to 12.1% in September from a year ago, while growth in credit card outstanding dropped to 18% from 31.4% a year ago, the RBI data showed.

A rise in defaults by over-leveraged small borrowers is hitting India's top lenders, with bank executives and analysts expecting higher levels of stress in these personal segments over the next year.

Credit growth to the services sector decelerated to 15.2% in September from 21.6% a year ago, primarily due to lower growth in credit to non-banking financial companies.

On the flip side, loans to industry grew by 9.1% year-on-year in September, quicker than the 6% growth last year.

(Reporting by Siddhi Nayak; Editing by Savio D'Souza)

((Siddhi.Nayak@thomsonreuters.com; +91 22 6921 7848; Reuters Messaging: X: https://twitter.com/siddhiVnayak))

Adds name in editing credits

By Siddhi Nayak, Jaspreet Kalra

MUMBAI, Oct 29 (Reuters) - A rise in defaults by over-leveraged small borrowers is hitting India's top lenders, with bank executives and analysts expecting higher levels of stress in the personal loans and micro-credit segments over the next year.

The rise in defaults marks a turn in the credit cycle for Indian lenders, whose bad loans dropped to a multi-year low of 2.8% of all assets as of end-March, according to central bank data.

In the September quarter, however, five of the eight largest private sector banks have reported an increase in bad loans.

HDFC Bank HDBK.NS, Kotak Mahindra Bank KTKM.NS, IndusInd Bank INBK.NS, RBL Bank RATB.NS and IDFC First Bank IDFB.NS saw gross bad loans as a percentage of total assets rise between 2 basis points and 19 basis points during the quarter.

Most banks have also increased provisions, or funds set aside to cover bad loans, in anticipation of a rise in defaults.

The surge in retail loan defaults comes against the backdrop of a booming economy, which is seen expanding 7.2% in the current year to March 2025 with bank lending growing at twice that pace.

Segments such as personal loans and credit cards, in particular, saw much faster growth, in excess of 25% until earlier this year, forcing the central bank to step in to curb "exuberance" in retail lending.

Slippages, or the proportion of good loans turning bad, would be elevated and stress could remain high "for the next 3-4 quarters at least", said Pranav Gundlapalle, senior research analyst at Bernstein.

Rising defaults, along with higher capital requirements imposed on banks last year, and series of actions against exuberant lending practices have slowed growth in segments such as personal loans and credit cards.

While a moderate worsening of asset quality may not be an immediate cause of concern for well-capitalised banks, the trend of rising bad loans and slowing retail loan growth could weigh on their profitability outlook, analysts said.

"We do see a general trend, particularly in unsecured (loans), where there is stress across multiple segments," said Arjun Chowdhry, group executive for segments including cards and retail loans at Axis Bank AXBK.NS, the country's third-largest private lender.

Stress is being driven by "indebtedness" caused by over-leveraging, Chowdhry said on an analyst call.

RISING DEFAULTS

The surge in bad loans is being seen mainly among borrowers who have three or more unsecured personal loans, said Rajeev Jain, managing director of Bajaj Finance, India's largest retail non-bank lender, due to easy access to funding amid extensive competition to gain market share.

For example, Harpal Singh, a 45-year old Mumbai resident whose annual income is 780,000 Indian rupees ($9,278), racked up personal loans and credit card debt of five million rupees over the last six years and is now struggling with the repayments.

"Medical emergencies have completely wiped off my savings and the general cost of living in Mumbai is so high that there is hardly anything left to pay," Singh said.

Defaults have also risen in the microfinance segment, which includes loans given to low-income borrowers.

Climate-related disruptions to crops have eroded incomes in rural areas, said a banker with a state-run bank, declining to be identified as they are not allowed to speak to the media.

The central bank, which this month barred four non-bank lenders from fresh lending due to "usurious" pricing practices, has sought data from microfinance firms on loan spreads, said five sources familiar with the requests.

The sources declined to be identified as they are not authorised to speak to the media. An e-mail sent to the central bank was not answered.

($1 = 84.0740 Indian rupees)

(Reporting by Siddhi Nayak and Jaspreet Kalra; Editing by Ira Dugal and Raju Gopalakrishnan)