The bank operates across retail, wholesale, and treasury segments, focusing on building a robust retail franchise while continuing to serve corporate and infrastructure clients. A key strategy is leveraging digital banking and technology-driven solutions.
IDFC First Bank benefits from the combined strengths of IDFC’s infrastructure financing expertise and Capital First’s retail presence. This diversified portfolio presents opportunities for growth. However, the bank faces challenges common to the sector, including intense competition, managing non-performing assets, and navigating regulatory changes. Consistent profitability remains a key focus area.
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Meet the Visionaries: IDFC Bank and ET NOW Bring You the 12th Edition of the Prestigious ‘Leaders of Tomorrow’ Awards
The 12th edition of the Leaders of Tomorrow Awards 2025 will take place on March 10, 2025, in New Delhi, hosted by ET NOW, India’s leading English business news channel, in association with IDFC FIRST Bank. The event will recognize entrepreneurs who are making a significant impact on the global market while scaling their businesses in India. The awards will focus on businesses that are redefining industries, driving disruption, and fostering global competitiveness. A distinguished jury comprising respected business leaders and visionaries will evaluate the nominees based on business model, innovation, disruption, and long-term vision.
The event will feature thought-provoking panel discussions, keynote addresses, and the recognition of outstanding entrepreneurs across 16 categories, including Excellence in Health, Wellness, and Ayurveda, and Excellence in Edtech and Skill Development. The award categories will also include Entrepreneur of the Year and Global Business Leadership Award.
IDFC FIRST Bank will support the event, which is expected to reinforce India’s position as a powerhouse of entrepreneurial talent. ET NOW, as part of the Times Network, is dedicated to empowering India’s development and aims to engage with viewers in 16 countries across the globe. The channel focuses on content around development, economy, government, and policy issues, differentiating itself from other business channels. The event is expected to be a premier platform celebrating entrepreneurial excellence and empowering India’s MSME sector, a key driver of economic growth, innovation, and job creation.
Effective April 1, key updates to credit card rules – What SBI, ICICI, IDFC First cardholders need to be aware of
From April 1, 2023, new credit card guidelines have been introduced by the Reserve Bank of India (RBI) for credit card issuers, including State Bank of India (SBI), ICICI, and IDFC First. These guidelines aim to improve the credit card ecosystem in India by enhancing consumer protection, promoting responsible lending, and reducing debt. Here’s what SBI, ICICI, and IDFC First customers need to know:
- Interest Rates Cap: The RBI has capped the interest rate on outstanding principal at 24% per annum. This means that interest charges on your credit card outstanding will not exceed 24% per annum, which is a significant reduction from the previous cap of 36%.
- Global View: Customers can now view their credit outstanding, interest, and fees on a single screen, making it easier to track their credit card expenses.
- Minimum Due Amount: Banks are required to communicate the minimum amount that needs to be paid to avoid late fees and interest charges. This will help customers plan their payments better.
- Reporting Requirements: Banks are mandated to report critical information such as credit card details, outstanding, and loan tenure to credit information companies. This will help in maintaining a healthy credit score.
- Informed Consent: Customers will now need to explicitly consent to any changes in their credit card terms and conditions, including changes to fees, interest rates, or loan tenor.
- Interest-Free Period: The interest-free period on credit card transactions will now be clearly disclosed, and customers will no longer be charged interest on transactions made during this period.
- Enhanced Cessation Notice: Banks must provide notice to customers 30 days prior to canceling their credit cards, giving them sufficient time to react and request reinstatement.
- Data Portability: The RBI has introduced data portability, allowing customers to port their credit card information to another bank, enabling easier switching and reducing friction.
- Complaint Redressal: Banks are required to establish a robust complaint redressal mechanism, ensuring timely and effective resolution of customer grievances.
- Ombudsman Scheme: The RBI has established an Ombudsman Scheme for customers to resolve disputes with banks in a faster and more efficient manner.
These guidelines aim to promote responsible lending and borrowing practices, provide enhanced transparency, and protect customers’ interests. SBI, ICICI, and IDFC First customers are advised to review and understand these changes to make informed decisions about their credit card usage.
Credit Card Revamp: SBI, IDFC First Bank to Introduce New Terms From April 1, Several Perks to Expire
From April 1, 2025, several credit card rules will undergo significant changes, particularly for Club Vistara co-branded credit cards issued by IDFC First Bank and SBI Card. One major change is the discontinuation of milestone ticket vouchers and renewal benefits.
IDFC First Bank is discontinuing the milestone benefits for its Club Vistara IDFC First Credit Card holders. The free vouchers, which included a premium economy ticket and a class upgrade voucher, will no longer be available. Additionally, milestone vouchers for premium economy tickets will also be discontinued. Cardholders can earn Maharaja Points until March 31, 2026, while the card remains open. However, renewal of the card after March 31, 2025, will waive off the annual fee for one year.
SBI Card is also introducing changes to its Club Vistara SBI Credit Card and Club Vistara SBI PRIME Credit Card. Economy and premium economy ticket vouchers will no longer be available on these cards from April 1, 2025. The milestone benefits on the Club Vistara SBI Credit Card will be discontinued on annual spending limits of Rs 1.25 lakh, Rs 2.5 lakh, and Rs 5 lakh. Premium economy ticket vouchers will not be available on the Club Vistara SBI PRIME Credit Card. The annual fee for the base card will be Rs 1,499, and for the PRIME card, it will be Rs 2,999, although the fee waiver option will be available.
As of April 2025, Club Vistara credit card holders will need to adapt to these changes, as many key benefits will no longer be available. Cardholders should plan ahead to make the most of their credit card benefits while they still can.
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After careful consideration, SBI and IDFC First will discontinue key benefits on these cards, effective immediately.
SBI Card has announced changes to the benefits and fees for its Club Vistara SBI Credit Cards and Club Vistara SBI PRIME Credit Cards. Starting April 1, 2025, cardholders will no longer receive economy or premium economy ticket vouchers as renewal benefits. In addition, the renewal fees for these cards will increase. The base card’s renewal fee will be ₹1,499, while the PRIME card’s renewal fee will be ₹2,999. However, a fee waiver option will be available for customers who renew their cards after March 31, 2025.
These changes aim to provide a more balanced and simplified benefits structure for SBI Card’s premium card offerings. The removal of economy and premium economy ticket vouchers as renewal benefits will likely allow cardholders to enjoy other valuable benefits, such as travel insurance, airport lounge access, and concierge services.
The increased renewal fees reflect the card’s upgraded benefits and services, including enhanced airport lounge access, faster redemption of travel insurance, and improved customer support. Cardholders who renew their cards after March 31, 2025, can take advantage of the fee waiver option, which may help offset the increased costs.
Overall, these changes aim to provide a more sustainable and competitive offering for SBI Card’s premium cardholders, while also enhancing the overall cardholder experience. Cardholders who are affected by these changes are advised to review the new benefits and fees carefully to ensure they can continue to get the most out of their cards.
IDFC First and SBI revamp perks for Club Vistara Credit Card holders, eliminating free ticket offers.
IDFC First Bank and SBICards are making significant changes to their co-branded credit cards, effective from the next financial year. For IDFC First Bank, the changes will take place on March 31, 2023, while for SBICards, the changes will come into effect on April 1, 2025. The key changes include the discontinuation of annual benefits, such as milestone ticket vouchers, and the end of complimentary vouchers, including one premium economy ticket voucher and a one-class upgrade voucher. Additionally, the card product will be fully closed by March 31, 2026.
SBICards, on the other hand, will revise its Club Vistara SBI and Club Vistara SBI PRIME credit cards, with the changes including the end of economy ticket voucher benefits for the base card and the discontinuation of milestone benefits for annual spends of Rs 1.25 lakh, Rs 2.5 lakh, and Rs 5 lakh for the PRIME card.
The changes come as a result of the Vistara-Air India merger in November 2024, which led to a restructuring of loyalty programs under Air India’s Maharaja Club. The discontinuation of benefits has significantly impacted the value of these credit cards, with IDFC First Bank clarifying that no annual charges will be levied and no annual benefits will be offered. This shift has sparked discussions about the future of airline credit card rewards in India.
As the industry undergoes this transformation, Air India is expected to launch new co-branded credit cards under its Maharaja Club program, offering updated benefits and a streamlined customer rewards structure. For now, cardholders will continue to earn Maharaja Points until March 31, 2026, after which the card will be fully discontinued. These developments mark a significant transformation in India’s airline credit card landscape, with Air India set to redefine loyalty programs for frequent flyers.
Private banks reduce their CD (cash reserve) ratios in response to a strain in liquidity – Banking & Finance News
Private banks in India have been reducing their credit-deposit (CD) ratios in recent quarters as they prioritize deposit growth over advances amidst tight liquidity conditions. The average CD ratio, also known as the loan-to-deposit ratio (LDR), has decreased to 90.74% in the December quarter of the current financial year, down from 94.4% in the same period a year ago. Private sector banks, such as HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Yes Bank, and IDFC First Bank, have all seen a year-on-year decline in their CD ratios.
HDFC Bank, the largest private lender, has seen a significant decline in its CD ratio to 98.2%, down from 110.5% in the same quarter a year ago. The bank is aiming to bring its CD ratio back to pre-merger levels with HDFC Ltd. IDFC First Bank, Yes Bank, and RBL Bank have also seen significant declines in their CD ratios.
Private banks have been aggressively expanding their loan portfolios, but with deposit growth slowing, they are now prioritizing building a stronger deposit base and scaling back loan growth. Banks are also intensifying their efforts to enhance their liability franchises by offering higher rates on term deposits and sourcing funds through certificates of deposit, albeit at a higher cost.
The CD ratio is a key metric that indicates a bank’s liquidity and credit risk. A high CD ratio can pose liquidity and credit risk for a lender. The Reserve Bank of India has expressed concerns about high LDRs and has asked lenders to narrow the gap between credit and deposit growth. With deposit competition remaining aggressive, banks are working to improve their CD ratios to align with regulatory expectations and reduce their reliance on borrowings, which can increase funding costs and compress net interest margins.