With time, the company diversified into asset management, institutional broking and investment banking.

The bank was launched through this demerger from IDFC Limited, and it was officially inaugurated by the Prime Minister of India Narendra Modi in October 2015.

[13] IDFC Bank faced challenges due to bad loans from legacy infrastructure accounts.

[14] In January 2018, IDFC Bank and MSME financing company Capital First announced a merger.

The Reserve Bank of India approved his appointment for a period of three years, effective from 19 December 2018.

[34] On 12 September 2023, US-based GQG Partners acquired an additional 5.1 crore shares, equivalent to a 0.76% stake, from V. Vaidyanathan in a block deal conducted on the stock exchange.

[35][36] In July 2024, Life Insurance Corporation raised its stake in the bank to 2.68% by purchasing shares of the lender at Rs 80.63 each, with a total acquisition cost of ₹1,500 crore (US$170 million).

Subsequently, it began enrolling small merchants, who are existing customers with current accounts, onto a partner application registered with ONDC.

[51] In South and Central India, the rural lending is led by IDFC First Bharat Limited (IFBL) which traces its roots to Grama Vidiyal, a Tamil Nadu-based public charitable trust established in 1986.

In 2003, it became a microfinance institution called Grama Vidiyal Micro Finance Limited (GVMFL).

[59] In 2023, the bank obtained the title sponsorship rights for all Board of Control for Cricket in India's international and domestic home matches.