IDFC FIRST Bank Risk Management & Asset Quality
e. Legacy High Cost Borrowings
Section 7: Deposits & Borrowings
Bank continues to successfully run down the legacy high cost long term borrowings
Balance
Run off Schedule
In Rs. Cr
As on Dec-22
As on Dec-23
Q4-FY24
FY25
Rol (%)
FY26
Beyond FY26
Infrastructure Bonds
7,542
5,899
5,064
834
8.94%
Long Term Legacy Bonds
6,511
6,030
1,310
1,126
3,594
8.91%
Other Bonds
1,867
748
123
299
327
9.07%
Refinance
2,842
930
930
8.25%
Total
18,762
13,607
1,310
7,243
4,727
327
8.89%
Because we have a DFI background, the legacy borrowings are costing the bank 8.89%. The Bank plans to replace this with low-
cost deposits.
To simulate, if the Bank were to replace all high-cost legacy borrowings with the current cost of funds, the return on equity
(annualized) for Q3-FY24 would be higher by ~90 bps.
37
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