V. Vaidyanathan

V. Vaidyanathan is Founder and Chairman of Capital First Ltd. He founded Capital First Ltd. by acquiring an equity stake in an existing wholesale NBFC, and then securing an equity backing of Rs. 810 crore in 2012 from reputed PE Warburg Pincus and concluded a successful buyout of the company[2] which resulted in buyout of other majority and minority shareholders through an open offer to public. As part of the process, fresh capital of Rs. 1.00 billion was infused into the company, the board of directors was reconstituted, the business of the company was changed from wholesale to retail lending, and a new brand, Capital First was created. Post the buyout, Vaidyanathan holds shares and options totaling 13% of the company on a fully diluted basis through personal holdings and related entities.[3] Before this entrepreneurial foray at 42, he was the MD and CEO of ICICI Prudential Life Insurance, and was earlier on the Board of ICICI bank.

V. Vaidyanathan
Born (1968-01-02) January 2, 1968
NationalityIndian
Alma materBirla Institute of Technology, Mesra
OccupationFounder and Chairman, Capital First Ltd.
MD & CEO of IDFC First Bank [1]

Education

V. Vaidyanathan is an alumnus of Birla Institute of Technology, Mesra. He attended the six-week Advanced Management Program from Harvard Business School, Boston.[4]

Early life

Vaidyanathan was born in Chennai. One of his childhood's fondest memories was traveling by train to Chennai for annual leave, the same location every year. He spent the early days of his childhood studying in Kendriya Vidyalaya across the country.

He got admission to Birla Institute of Technology in Ranchi, but ran out of money to buy train tickets. His mathematics teacher Mr. Saini then lent him Rs. 500 to take a train to help him appear for an interview for Birla Institute of Technology Ranchi. Vaidyanathan searched for him for over 30 years but couldn't find him. One fine day ICICI Staff skip-traced his teacher in Agra, whom he then called to thank him profusely.[5]

Career

Vaidyanathan began his career at Citibank, and worked there from 1990 to 2000 in consumer banking. In 1999–2000, when ICICI decided to foray into Retail lending from Project Lending, he joined them to spearhead the Retail businesses. His responsibility included setting up the businesses including all key functions related to these businesses like strategy, team building, business relationships, Credit policy, Credit administration and risk management.[6][7]

He joined ICICI when it was a Domestic Financial Institution (DFI) known for project financing, and the retail business he built helped the transition of ICICI from a DFI to a Universal Bank. He was appointed MD and CEO of ICICI Personal Financial Services (PFS) Limited at 32, and built the Retail Lending Business for ICICI since its inception. In 2002, ICICI Limited merged with its subsidiary ICICI bank and with ICICI PFS Limited. Post the merger, he became the Head of Retail Banking in charge of both Lending and Retail Liabilities in the merged entity, ICICI Bank Limited. He grew the retail business to over 1400 bank branches in 800 cities, 25 million customers, a vast CASA and retail deposit base, branch, internet and digital banking, and built a retail loan book of over Rs. 1.35 trillion in Mortgages, Auto loans, Commercial Vehicles, Credit Cards and Personal Loans. As an additional responsibility, he also built the ICICI Bank's SME business since 2003, and managed the Rural Banking Business after 2007.[8]

He was appointed Executive Director on the Board of ICICI Bank at the age of 38 and became the MD and CEO of ICICI Prudential Life Insurance Co at 41. He was also the Chairman of ICICI Home Finance Co. Ltd, and served on the Board of ICICI Lombard General Insurance Company, CIBIL - India's first Credit Bureau, and SMERA- SIDBI's Credit Rating Agency.[9]

In 2012, venturing down the entrepreneurial road, he acquired a stake in an existing NBFC, then secured an equity backing of Rs. 8.10 billion from Warburg Pincus and thus founded Capital First Limited. Today, he is the Executive Chairman and Managing Director of this successful Retail NBFC.[10][11] Vaidyanathan believed that there is a unique opportunity in financing India's 30 million MSMEs and India's emerging middle class, with a differentiated model based on new technology platforms. As part of this belief he exited four legacy businesses - Forex, Broking, Wealth management and Investment management and instead started retail financing in the company which includes MSME and Consumer lending businesses. Thus he transformed the existing wholesale NBFC, (90% of loan book was wholesale in March '10), into a retail finance institution where over 85% of the business was migrated to retail. The company grew from 9 locations to 222 locations across India within 5 years.

During this period, he has grown the total loan book from Rs.9.35 billion to Rs.295.68 billion (as of 30 June 2018), of which retail financing which grew from Rs.0.94 billion to Rs.272.2 billion (as on 30 June 2018), has grown the Market Cap from Rs.7.9 billion (as on 31 March 2012) to Rs.60.96 bn (as on 31 March 2018), reduced the NPA from 5.28% to 1.72% (90 DPD recognition norm), and got the long term credit rating upgraded to AAA.[12] (Rs. 1.00 billion = USD 15 million @ US$1 = Rs. 66.7)

In line with V. Vaidyanathan's objective and long-term plan of getting a banking license, on January 13, 2018, in a joint press release issued by IDFC Bank and Capital First, announced a merger. IDFC Bank is to issue 139 shares for every 10 shares of Capital First and Mr. Vaidyanathan will take over as the MD and CEO of the combined bank.[13]

In January 2018, he announced to the exchanges under regulation 7(2) read with Regulation 6(2) of Securities and Exchange Board of India (Prohibition of insider trading) that he had donated half million shares of Capital First of his personal wealth to Rukmini Foundation which is a social welfare trust to support activities providing education and healthcare support for economically underprivileged children and other such charitable causes. The stock was valued Rs. 400 million Indian Rupees at the prevailing stock price on the date of the transfer. Some of the initial beneficiaries of the trust are Genesis Foundation which works on the healthcare of children, Samparc who works on rehabilitation and education of children, and Apnalaya which works in the area of education of slum children in Mumbai.[14]

According to company stock exchange filing under regulation 7(2) read with Regulation 6(2) of Securities and Exchange Board of India (Prohibition of insider trading) in November 2018, Vaidyanathan informed that he gifted an additional 4.29 lakh shares to drivers, maids, present as well former colleagues and family members. The stock was valued Rs. 200 million Indian Rupees at the prevailing stock price on the date of the transfer.[15][16][17][18][19]

Personal life

Apart from his professional commitments, V. Vaidyanathan is an active marathoner. He has till now run 8 full marathons and 22 half marathons. In his spare time he strums the guitar and occasionally plays golf. He lives in Mumbai with his family consisting of his father, wife and three children.[7][20][21]

He is committed to social causes. He performed songs by Stevie Wonder, Elvis Presley, Westlife and George Baker for Genesis Foundation for raising funds for critically ill children suffering from Congenital Heart Disease.[22][23]

Awards and recognition

During his career, he has received a large number of domestic and international awards -

  • "CEO of the year 2018"[24] by Businessworld
  • "Outstanding Corporate Transformation India 2018" by Capital Finance International[25]
  • "V Vaidyanathan: Most Inspirational Management Buyout India 2018" by Capital Finance International[25]
  • "Game Changers of India" – Economic Times Global Business Summit 2018 [26]
  • "Entrepreneur of the Year Award"[27] at APEA 2017
  • "Economic Times Most Promising Business Leaders of Asia" at the Asian Business Leaders Conclave 2016, Malaysia
  • "Outstanding Entrepreneur Award"[28] in Asia Pacific Entrepreneurship Awards 2016
  • "Greatest Corporate Leaders of India 2014"
  • "Leaders Under 40" from Business Today in 2009
  • He was also nominated for "Retail Banker of the Year" by EFMA Europe for the year 2008
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References
  1. "Mr.Vaidyanathan will be the Managing Director and Chief Executive Officer of the merged entity". livemint. 19 December 2018. Retrieved 6 January 2019.
  2. "::A Management Buyout at 30,000 ft::". www.businesstoday.com. Retrieved 2016-05-11.
  3. "In India, You Really Can Achieve Anything". AsianEntrepreneur. Retrieved 2016-04-25.
  4. "V Vaidyanathan, Capital First Ltd: Profile & Biography". Bloomberg. Retrieved 2016-04-25.
  5. "India is a land of amazing opportunities: V Vaidyanathan, Chairman, Capital First". 10 May 2017. Retrieved 22 January 2019 – via The Economic Times.
  6. "There are risks, but there are opportunities too: V Vaidyanathan". timesofindia-economictimes. Retrieved 2016-04-25.
  7. "V Vaidyanathan | VCCircle Events". events.vccircle.com. Retrieved 2016-04-25.
  8. "Celebrity Photo Gallery, Celebrity Wallpapers, Celebrity Videos, Bio, News, Songs, Movies". in.com. Retrieved 2016-05-17.
  9. "V Vaidyanathan - The Strategist". IndiasGreatest.com.
  10. "RBI not getting carried away by expectations: V Vaidyanathan, Capital First". timesofindia-economictimes. Retrieved 2016-04-25.
  11. "The Economic Times". economictimes.indiatimes.com. Retrieved 2016-04-25.
  12. ":: Brickworks Ratings upgrades credit ratings of Capital First ::". www.indiainfoline.com. Retrieved 2017-03-07.
  13. "How Rajiv Lall and Vaidyanathan of IDFC Bank and Capital First stitched up project 'Idli-Dosa'". economictimes.indiatimes.com. Retrieved 2016-04-25.
  14. "Announcements". www.bseindia.com. Retrieved 22 January 2019.
  15. Sonavane, Ravindra (2 November 2018). "Capital First chief's gift makes millionaires of maids, drivers, family". Mint. Retrieved 22 January 2019.
  16. "Rs20 crore Diwali gift! V Vaidyanathan of Capital First gifts personal shares to colleagues, close relatives and family staff". Moneylife NEWS & VIEWS. Retrieved 22 January 2019.
  17. "कैपिटल फर्स्ट के बॉस परिवार के साथ नौकरों और ड्राइवर्स को भी गिफ्ट करेंगे शेयर". Navbharat Times. 5 November 2018. Retrieved 22 January 2019.
  18. "Capital First founder gifts Rs 20 crore worth of shares to maids, drivers, colleagues, family". financialexpress.com. 5 November 2018. Retrieved 22 January 2019.
  19. "Capital First chairman gifts shares worth Rs 31 lakh to drivers and maids - Business News". www.timesnownews.com. Retrieved 22 January 2019.
  20. "A month to the marathon - Livemint". www.livemint.com. Retrieved 2016-04-25.
  21. "India Inc: Get, set, go". timesofindia-economictimes. Retrieved 2016-04-25.
  22. Capital First. "Mr. Vaidyanathan singing Seasons in the Sun at the Genesis Foundation event". Retrieved 22 January 2019 – via YouTube.
  23. Capital First. "Mr. Vaidyanathan singing Una Paloma Blanca at the Genesis Foundation event". Retrieved 22 January 2019 – via YouTube.
  24. "V Vaidyanathan, A Big Match Player". Retrieved 2018-09-01.
  25. "Capital First: Outstanding Corporate Transformation India 2018 & Most Inspirational Management Buyout India 2018 - CFI.co Awards - Capital Finance International Awards". cfi.co. Retrieved 22 January 2019.
  26. "Game Changers of India".
  27. "Vaidyanathan Vembu — Enterprise Asia". Retrieved 2017-09-01.
  28. "APEA Press Release". www.bizjournals.com. Retrieved 2017-09-01.
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