IDFC FIRST Bank: Quarterly Income and Business Overview
Section 4: Key Strategic Step going forward..
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Thus far, the bank has specialised in providing loans in the affordable segment, where yields have been
between 8 to 9%. Our asset quality has been high and experience in the segment has been excellent.
Based on the strong inflow on retail liabilities into the Bank and surplus liquidity, the Bank has reduced the
Savings Rate to 4% for balance below Rs. 1 lac and reduced the peak savings account interest rate to 5%.
Consequent to the rate reduction of savings accounts, the Bank can now afford to participate in the prime
segments of all businesses including the prime home loans to employees of top corporates at a very
competitive interest rate starting at 6.9%, in line with market for this segment.
This will open up a new and large market with higher asset quality for our Bank and set up the Bank for
continuous and sustainable book growth as home loans have comparative longer tenure up to 20 years.
Section 4: Assets Update
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IDFC FIRST
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