IDFC First Bank shares jump 20% so far in 2025; what you need to know

Moreover, the stock has gained over 7% in the past five sessions (from June 25 to July 1).

Warburg Pincus acquires 10% stake in bank

Earlier in June 2025, CCI, the fair trade regulator, cleared private equity major Warburg Pincus' proposal to acquire a 10% stake in private sector lender IDFC First Bank.

US-based Warburg Pincus, through its arm Currant Sea Investments BV, is acquiring a stake in IDFC First Bank.

"The proposed combination entails the acquisition of up to 9.99 per cent of the paid-up share capital (on a fully diluted basis) of IDFC First Bank Ltd by way of subscription to 81,26,94,722 compulsorily convertible cumulative preference shares (CCPS) by Currant Sea Investments BV," the Competition Commission of India (CCI) said in a release.

IDFC First Bank is engaged in the business of providing banking services like providing loans and credit cards, distributing mutual funds and insurance products and providing other financial solutions.

In April this year, IDFC First Bank announced that it had approved a preferential issue of equity capital amounting to ₹4,876 crore to Currant Sea Investments BV, an affiliate company of global growth investor Warburg Pincus LLC, and ₹2,624 crore to Platinum Invictus B 2025 RSC, an arm of Abu Dhabi Investment Authority, to fuel its next phase of growth.

IDFC First Bank Q4 FY25 Results

IDFC First Bank reported a 58% fall in net profit to ₹304 crore for the fourth quarter ended in March 2025 (Q4 FY25) due to a rise in provisions.

The private sector lender had earned a net profit of ₹724 crore in the same quarter a year ago.

The lenders' total income increased to ₹11,308 crore during the quarter against ₹9,861 crore in the same quarter a year ago, IDFC First Bank said in a regulatory filing.

The interest income increased to ₹9,413 crore for the reporting quarter as against ₹8,219 crore logged in the same quarter a year ago.

For the full year FY25, the net profit decreased by 48% to ₹1,525 crore as against ₹2,957 crore in the previous year, largely impacted by the issues in the microfinance industry.

The board has approved a dividend of ₹0.25 per share subject to shareholders' approval in the ensuing annual general meeting (AGM).

IDFC First Bank merger details

IDFC First Bank in September 2024 announced the completion of the merger of IDFC Limited with the bank.

This follows the receipt of all requisite shareholder and regulatory approvals, the bank said in a statement.

The merger is effective from October 1, 2024, it added.

As a result of the merger, it said, 155 equity shares of the bank will be allotted for every 100 equity shares of IDFC Limited held by such a shareholder in IDFC Limited as of the Record Date, i.e., October 10, 2024.

The shares were announced to be credited to shareholders of IDFC Limited on or before October 31, 2024, subject to regulatory processes and clearances, it said.

Speaking about the merger, V. Vaidyanathan, MD & CEO, IDFC FIRST Bank Limited, said, "The announcement of the merger today between IDFC First Bank and IDFC Ltd brings closure to the intense work over the last 2 years.

IDFC FIRST Bank will now have a simplified corporate structure with no promoter holding, the MD added.