Profitability issues to be fully sorted in next 5 yrs: IDFC First Bank CEO

He says that the recent Reserve Bank of India norms on increased risk weights on unsecured loans impacted the capital adequacy ratio by 100 bps

IDFC First Bank has announced the next phase of growth parameters in which the lender is planning to grow the advances by 20 per cent and deposits by around 25 per cent. V Vaidyanathan, MD & CEO IDFC First Bank says in an interview to Manojit Saha that the recent Reserve Bank of India norms on increased risk weights on unsecured loans impacted the capital adequacy ratio by 100 bps. Edited Excerpts:

The bank has projected 20 per cent loan growth in the next five years while it is currently growing at 25 per cent. What is