Slide 1: Investor Presentation – Q4 FY21
Investor Presentation – Q4 FY21
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by and is the sole responsibility of IDFC FIRST Bank (together with its subsidiaries, referred to as the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form
Slide 3: Key Metrics and progress vis-à-vis Guidance at the time of merger
Key Metrics and our progress vis-à-vis Guidance provided at the time of the merger in Dec 2018 Guidance given at the time of Particulars Dec-18 (At Merger) Mar-19 Mar-20 Mar-21 (YoY %) Status C merger for FY24-FY25 A Net-worth Rs. 18,736 Cr Rs. 18,159 Cr Rs. 15,343 Cr Rs. 20,808 Cr (36%)^ P I CET –
Slide 4: Key Metrics and progress vis-à-vis Guidance at the time of merger
Key Metrics and our progress vis-à-vis Guidance provided at the time of the merger in Dec 2018 Guidance given at the time of Particulars Dec-18 (At merger) Mar-19 Mar-20 Mar-21 (YoY %) Status merger for FY24-FY25 Retail Funded Assets Rs. 36,236 Cr Rs. 40,812 Cr Rs. 57,310 Cr Rs. 73,673 Cr (26%^) Rs.
Slide 5: Results at a glance for Period ended March 31, 2021
Results at a glance for Period ended on March 31, 2021: IDFC FIRST Bank: Strong Strides across all the Strategic Priorities We are happy to report that we are making strong progress on the guidance since merger. 1. Strong Growth in Retail Assets: • Retail Book increased 26%^ YoY to Rs. 73,673 crore
Slide 6: Results at a glance: Strong growth in Core Earnings
Results at a glance for Period ended on March 31, 2021: IDFC FIRST Bank: Strong Strides across all the Strategic Priorities 3. Strong growth in Core Earnings: a. Strong NII Growth: For the full year, the Total Net Interest Income increased by 21% to Rs. 7,380 crore in FY21 from Rs. 6,076 crore in FY
Slide 7: Results Update: Asset Quality remains resilient
Results Update: IDFC FIRST Bank: Strong Strides across all the Strategic Priorities 4. Asset Quality of the Bank remains resilient • Bank’s Gross NPA marginally improved by 3 bps to 4.15% as of March 31, 2021 as compared to 4.18% as of December 31, 2020 (proforma). • Bank Net NPA improved by 18 bps
Slide 8: Results Update: Capital Adequacy and Franchise
Results Update: IDFC FIRST Bank: Strong Strides across all the Strategic Priorities 5. Strong Capital Adequacy: • Capital Adequacy Ratio of the Bank was strong at 16.32% with CET-1 Ratio at 15.62% including additional equity capital of Rs. 3,000 crore raised through QIP on April 6, 2021, calculated
Slide 9: Table of Contents
9 SECTION 1: THE FOUNDING OF IDFC FIRST BANK 17 SECTION 2: VISION & MISSION OF IDFC FIRST BANK Table 20 SECTION 3: PRODUCT OFFERING of 24 SECTION 4: FINANCIAL PERFORMANCES Contents 50 SECTION 5: DIRECTORS & SHAREHOLDERS 55 SECTION 6: STRATEGY GOING FORWARD FOR THE COMBINED ENTITY
Slide 10: The Founding of IDFC FIRST Bank
Section 1: The Founding of IDFC FIRST Bank.. IDFC FIRST Bank was founded by the merger of Erstwhile IDFC Bank and Erstwhile Capital First on December 18, 2018. Section 1: The Founding of IDFC FIRST Bank 10
Slide 11: The Founding of IDFC FIRST Bank
Section 1: The Founding of IDFC FIRST Bank.. Erstwhile IDFC BANK Erstwhile CAPITAL FIRST LIMITED IDFC Limited was set up in 1997 to finance infrastructure focusing Mr Vaidyanathan who had built ICICI Bank’s Retail Banking business primarily on project finance and mobilization of capital for private
Slide 12: The Founding of IDFC FIRST Bank (continued)
Section 1: The Founding of IDFC FIRST Bank.. Erstwhile IDFC BANK Erstwhile CAPITAL FIRST LIMITED Continued from page 11 Continued from page 11 The bank was launched through this demerger from IDFC Limited in .. Between March 31, 2010 to March 31, 2018, the Company’s Retail November 2015. During the
Slide 13: Erstwhile IDFC Bank history and track record (pre-merger)
Section 1: Erstwhile IDFC Bank history and track record (pre-merger) IDFC Limited was an acknowledged leader and expert in financing Infrastructure Sector Gross Funded Assets (INR bn) Liabilities (Sep 30,2018) Gross Funded Assets mix (1) 753 INR 753bn 702 709 • CASA balance was at Rs. 6,426 crore ou
Slide 14: Erstwhile Capital First history and track record (pre-merger)
Section 1: Erstwhile Capital First history and track record (pre-merger) AUM (Rs. Cr) Profit (Rs. Cr) Cost to Income (%) Wholesale AUM Retail AUM Total AUM 32,623 327 26,997 78% 80% 239 72% 74% 71% 19,824 206 59% 16,041 166 51% 51% 53% 48% 114 91% 11,975 94% 9,679 35 56 6,186 7,510 93% 3.8 86% 84% 2
Slide 15: Pre merger - Proforma Financials – P&L (H1 FY19)
Pre merger - Proforma Financials – P&L (H1 FY19) In Rs. Crore Erstwhile IDFC Bank Erstwhile Capital First Proforma Total Funded Assets / AUM 75,332 32,623 1,07,955 Net-Worth 14,776 2,928 17,704 NII 912 1,143 2,055 Fees & Other Income 256 153 409 Treasury Income 31 31 Total Income 1199 1,297 2,496 Op
Slide 16: The Founding of IDFC FIRST Bank: merger terms
Section 1: The Founding of IDFC FIRST Bank.. In January 2018, Erstwhile IDFC Bank and Erstwhile Capital First announced a merger. Shareholders of Erstwhile Capital First were to be issued 13.9 shares of the merged entity for every 1 share of Erstwhile Capital First. Thus, IDFC FIRST Bank was founded
Slide 17: Table of Contents
9 SECTION 1: THE FOUNDING OF IDFC FIRST BANK 17 SECTION 2: VISION & MISSION OF IDFC FIRST BANK 20 SECTION 3: PRODUCT OFFERING 24 SECTION 4: FINANCIAL PERFORMANCES 50 SECTION 5: DIRECTORS & SHAREHOLDERS 55 SECTION 6: STRATEGY GOING FORWARD FOR THE COMBINED ENTITY
Slide 18: Vision and Mission
Section 2: Vision and Mission Our Vision: To create a world-class bank in India for larger social good Our Mission: We want to touch the lives of millions of Indians in a positive way by providing high-quality banking products and services to them, with particular focus on aspiring consumers and ent
Slide 19: Key excerpts from MD & CEO’s Letter - Annual Report 2019-20
Section 2: Key excerpts from MD & CEO’s Letter - Annual Report 2019-20 Theme of 2nd Annual Report after merger: AR 19-20: “Building a Strong Foundation“ Section 2: Vision and Mission 19
Slide 20: Table of Contents
9 SECTION 1: THE FOUNDING OF IDFC FIRST BANK 17 SECTION 2: VISION & MISSION OF IDFC FIRST BANK 20 SECTION 3: PRODUCT OFFERING 24 SECTION 4: FINANCIAL PERFORMANCES 50 SECTION 5: DIRECTORS & SHAREHOLDERS 55 SECTION 6: STRATEGY GOING FORWARD FOR THE COMBINED ENTITY
Slide 21: Loan offerings across varied customer segments
Section 3: Loan offerings – IDFC FIRST Bank offers a bouquet of loan products.. .. across varied customer segments including Consumers and MSMEs in different parts of India Prime Home Loans: Affordable Home Loans: Loan Against Property: New and Pre-owned Car Business Loans: Starting at 6.9% to selec
Slide 22: Since Launch in January 2021, the Bank has issued 1.5 Lac Credit Cards
Section 3: Since Launch in January 2021, the Bank has issued 1.5 Lac Credit Cards till March 31, 2021 INDUSTRY IDFC FIRST Bank Credit Cards customer friendly A Credit Card, like no other initiatives Customer friendly card launched by the Bank, keeping in line with the ethos of always customer first.
Slide 23: Product Offerings – Liabilities, Payments and other Services
Section 3: Product Offerings – Liabilities, Payments and other Services IDFC FIRST Bank provides wide range of Deposit facilities along with Savings Accounts, Deposit accounts, Wealth Management, Forex Services, Cash Management Services and Insurance services to its customers. Wealth Management Serv
Slide 24: Table of Contents
9 SECTION 1: THE FOUNDING OF IDFC FIRST BANK 17 SECTION 2: VISION & MISSION OF IDFC FIRST BANK 20 SECTION 3: PRODUCT OFFERING 24 SECTION 4: FINANCIAL PERFORMANCES 50 SECTION 5: DIRECTORS & SHAREHOLDERS 55 SECTION 6: STRATEGY GOING FORWARD FOR THE COMBINED ENTITY
Slide 25: Financial Performance of the Bank for Q4 FY21
SECTION 4: FINANCIAL PERFORMANCE OF THE BANK FOR Q4 FY21 • Update on Liabilities • Assets Update • Assets Quality • Key Business & Financial Parameters ✓ Income Statement ✓ Balance Sheet ✓ Net Interest Margin ✓ Capital Adequacy
Slide 26: Strong progress in retailization of Liabilities
Section 4: The Bank has made strong progress in retailization of Liabilities. Retail liabilities now comprise 77% of customer deposits, up from 27% at merger. • The Bank is focused for retailization of the liabilities which is reflected in the growth in its Core Deposits. • Such Deposits are sticky
Slide 27: Strong and well diversified liability franchise
Section 4: The Bank now has a strong and well diversified liability franchise CASA Deposits has grown by Rs. 40,622 crore since merger with As a result, the CASA Ratio (%) of the Bank has grown from 8.68% 1 2 (Dec-18) at merger to 51.75% (Mar-21) YoY growth (FY21) of 122% 45,896 51.75% in Rs. crore
Slide 28: Granularization of Customer Deposits
Section 4: Granularization of the Customer Deposits through quality liability franchise As part of the granularization, the Bank increased its Deposits Similarly, the Bank increased Deposits with balance Rs. 1 crore 1 2 and less, as % of total customer deposits, from 18% (Mar-18) to with balance Rs.
Slide 29: Strong growth in Retail Deposits
Section 4: The Bank continues to see strong growth in Retail Deposits. This has reduced the dependence on wholesale deposits and has provided greater stability. In Rs. Crore Mar-20 Dec-20 Mar-21 YOY% Legacy Long Term Bonds 12,013 9,460 7,892 -34% Legacy Infra Bonds 10,434 9,514 9,508 9% Refinance 14
Slide 30: Financial Performance of the Bank for Q4 FY21
SECTION 4: FINANCIAL PERFORMANCE OF THE BANK FOR Q4 FY21 • Update on Liabilities • Assets Update • Assets Quality • Key Business & Financial Parameters ✓ Income Statement ✓ Balance Sheet ✓ Net Interest Margin ✓ Capital Adequacy
Slide 31: Retail loans as a % of total loans improved to 67%
Section 4: Retail loans as a % of total loans has improved to 67% (including Retail PSL buyouts). • The Bank provides financing for prime home loans, affordable home loans, business banking, loan against property, car loans, consumer durables and other such products to salaried and self – employed i
Slide 32: Consumer and SME business history of stable growth and high asset quality
Section 4: Together, the Consumer and SME business has a rich history of 10 years with stable growth and high Asset quality. All amounts are in Rs. crore unless specified • Capital First was focused on growing the home loans, business loans, Consumer Loans, car loans and loan against property. The r
Slide 33: Reduced wholesale and infrastructure loan assets since merger
Section 4: The Bank reduced wholesale, infrastructure loan assets since merger; Top 10 borrowers’ concentration reduced. The Bank reduced the wholesale funded assets by CAGR of 29% Out of this, infrastructure financing (Rs crore) has reduced by 41% 1 2 between Mar-19 and Mar-21 CAGR between Mar-19 t
Slide 34: Total Funded Assets Breakup
Section 4: Total Funded Assets Breakup In Rs. Crore Mar-20 Dec-20 Mar-21 Growth% (YoY) Home Loans 7,736 9,367 10,613 37% Loan against Property 12,578 13,817 15,320 22% SME Loans 8,871 9,415 10,812 22% Wheels 8,875 10,162 10,763 21% Consumer Loans 11,722 13,159 13,949 19% Credit Card - 86 428 - Rural
Slide 35: Key Strategic Step going forward
Section 4: Key Strategic Step going forward.. • 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 liabilitie
Slide 36: Financial Performance of the Bank for Q4 FY21
SECTION 4: FINANCIAL PERFORMANCE OF THE BANK FOR Q4 FY21 • Update on Liabilities • Assets Update • Assets Quality • Key Business & Financial Parameters ✓ Income Statement ✓ Balance Sheet ✓ Net Interest Margin ✓ Capital Adequacy
Slide 37: Bank maintains strong overall Asset Quality
Section 4: Bank maintains strong overall Asset Quality Dec-19 Proforma Dec-20 Mar-21 Sequential (QoQ) In Rs. Crore Mar-20 (Pre-Covid) (Post-Covid) (Post-Covid) movement GNPL 2,511 2,280 4,044 4,303 Increased by Rs. 259 crore Provisions for GNPL 1,440 1,471 2,117 2,420 Increased by Rs. 303 crore NNPL
Slide 38: Proactively identified stressed wholesale accounts
Section 4: In addition to declared Wholesale NPA accounts, Bank has proactively identified the following wholesale accounts, which are standard on the books but are stressed or potential NPAs, and taken provisions for the same proactively. O/S Client Description (Rs. Crore) Provision PCR% Comments E
Slide 39: Exposure to identified Stressed Assets reduced by 45% since March 2019
Section 4: Exposure to identified Stressed Assets mentioned in previous slide, has reduced by 45% since March 2019 All amounts are in Rs. crore unless specified O/s Exposure Provision Provision coverage 23% 47% 47% 50% 49% 52% 48% 51% 48% 4,138 3,804 3,544 3,518 3,205 3,195 2,717 2,528 2,264 1,786 1
Slide 40: Asset quality trends at Capital First
Section 4: The asset quality trends over the last 8 years at Capital First is displayed below as a demonstration of our trend in asset quality and our capabilities in this space. Since most of the loan book in the merged entity has been built and seasoned in Capital First prior the merger and the sa
Slide 41: Retail Loans - Gross and Net NPA
Section 4: Retail Loans - Gross and Net NPA Long term pre-COVID Proforma Covid Impact Sequential (QoQ) Mar-21 Average (A) Dec-20 (C – A) Change (C - B) (C) (Mar-19 to Dec-19) (B) (bps) (bps) Gross NPA - Retail Increased by 2.27% 3.88% 4.01% 175 13 bps Net NPA - Retail Decreased by 1.13% 2.35% 1.90%
Slide 42: Continuous improvement in Retail Loan Underwriting
Section 4: Continuous improvement in Retail Loan Underwriting over the years • The first step in disbursing retail loans is credit policy and underwriting. Even prior to arrival of Covid-19, the bank has been continuously improving its credit underwriting based on experience by tightening its underw
Slide 43: Incremental controls implemented in light of COVID-19
Section 4: Incremental controls implemented in the light of COVID-19 • Further, in the light of the Covid-19, the bank has implemented a number of new measures to restrict lending to sectors affected by the pandemic. All new bookings that have been done post-pandemic already factors for pandemic rel
Slide 44: Financial Performance of the Bank for Q4 FY21
SECTION 4: FINANCIAL PERFORMANCE OF THE BANK FOR Q4 FY21 • Update on Liabilities • Assets Update • Assets Quality • Key Business & Financial Parameters ✓ Income Statement ✓ Balance Sheet ✓ Net Interest Margin ✓ Capital Adequacy
Slide 45: Income Statement – For the year ended March 31, 2021
Section 4: Income Statement – For the year ended March 31, 2021 In Rs. Crore FY20 FY21 Growth (%)Y-o-Y Interest Income 16,308 15,9681 -2% Interest Expense 10,232 8,588 -16% Net Interest Income 6,076 7,380 21% Fee & Other Income 1,550 1,622 5% Operating Income (Excl Trading Gain) 7,625 9,002 18% Trad
Slide 46: Quarterly Income Statement
Section 4: Quarterly Income Statement In Rs. Crore Q4 FY20 Q3 FY21 Q4 FY21 Growth% (QoQ) Growth% (YoY) Interest Income 4,092 4,101 3,9931 -3% -2% Interest Expense 2,392 2,209 2,033 -8% -15% Net Interest Income 1,700 1,892 1,960 4% 15% Fee & Other Income 432 582 600 3% 39% Operating Income (Excl Trad
Slide 47: Balance Sheet
Section 4: Balance Sheet Growth (%) In Rs. Crore Mar-20 Dec-20 Mar-21 (Y-o-Y) Shareholders' Funds 15,343 17,668 17,808 16% Deposits 65,108 84,294 88,688 36% - Retail Deposits 33,924 58,435 63,894 88% - Wholesale Deposits (including CD) 31,184 25,859 24,795 -20% Borrowings 57,397 40,805 45,786 -20% O
Slide 48: Strong improvement in Net Interest Margin %
Section 4: Strong improvement in Net Interest Margin % • The NIM of the bank has accelerated to 5.09% post merger (Q4-FY21) despite accounting for reversal of Interest on Interest of Rs. 55 crore. • Interest income from the loans originated through Business correspondents being booked net of the ori
Slide 49: Capital Adequacy Ratio including additional equity capital raised
Section 4: Capital Adequacy Ratio, including additional equity capital of Rs. 3,000 crore raised in April 2021, is at 16.32% with CET-1 Ratio at 15.62% Mar-21 In Rs. Crore Mar-20 Dec-20 Mar-21 (Incl Capital Raise) Common Equity 14,690 17,287 16,974 19,988 Tier 2 Capital Funds 90 629 647 887 Total Ca
Slide 50: Table of Contents
9 SECTION 1: THE FOUNDING OF IDFC FIRST BANK 17 SECTION 2: VISION & MISSION OF IDFC FIRST BANK 20 SECTION 3: PRODUCT OFFERING 24 SECTION 4: FINANCIAL PERFORMANCES 50 SECTION 5: DIRECTORS & SHAREHOLDERS 55 SECTION 6: STRATEGY GOING FORWARD FOR THE COMBINED ENTITY
Slide 51: Board of Directors
Section 5: Board of Directors With over two decades in financial services in India, V. Vaidyanathan has seen India through many lens – first as a banker (1990-2010, Citibank), then as an entrepreneur (2010-2019, Capital First) and a professional banker again (2019- date, after merging Capital First
Slide 52: Board of Directors
Section 5: Board of Directors MR. SUNIL KAKAR - NON-EXECUTIVE NON INDEPENDENT DIRECTOR (REPRESENTING IDFC LIMITED) Mr. Sunil Kakar is the Managing Director & CEO of IDFC Limited. He started his career at Bank of America where he worked in various roles, covering Business Planning & Financial Control
Slide 53: Board of Directors
Section 5: Board of Directors DR.(MRS.) BRINDA JAGIRDAR - INDEPENDENT DIRECTOR Dr. (Mrs.) Brinda Jagirdar, is an independent consulting economist with specialization in areas relating to the Indian economy and financial intermediation. She is on the Governing Council of Treasury Elite, a knowledge s
Slide 54: Shareholding Pattern as of March 31, 2021
Section 5: Shareholding Pattern as of March 31, 2021 Scrip Name : IDFC FIRST Bank (BSE: 539437, NSE:IDFCFIRSTB) Key Shareholders % Holding (through their respective various funds and affiliate companies wherever applicable) Other Body President of Corporate, 1.0% IDFC Financial Holding Company Limit
Slide 55: Table of Contents
9 SECTION 1: THE FOUNDING OF IDFC FIRST BANK 17 SECTION 2: VISION & MISSION OF IDFC FIRST BANK 20 SECTION 3: PRODUCT OFFERING 24 SECTION 4: FINANCIAL PERFORMANCES 50 SECTION 5: DIRECTORS & SHAREHOLDERS 55 SECTION 6: STRATEGY GOING FORWARD FOR THE COMBINED ENTITY
Slide 56: Strategy Going Forward for the Combined Entity
SECTION 6: STRATEGY GOING FORWARD FOR THE COMBINED ENTITY (as declared at merger in December 2018) • Key Strategies for the combine entity – ✓ Asset Strategy • Growth of Assets • Diversification of Assets • Gross Yield expansion ✓ Liability Strategy • CASA Growth • Diversification of Liability • Bra
Slide 57: Asset Strategy as guided at the time of merger
Section 6: Asset Strategy for IDFC FIRST Bank as guided at the time of merger in December 2018. • Growth of Assets: • The Bank plans to grow retail loan assets from Rs. 36,236 crore (December 31, 2018) to over Rs. 100,000 crore in the next 5 years • The Bank plans to wind down loans to infrastructur
Slide 58: Liability Strategy as guided at the time of merger
Section 6: Liability Strategy for IDFC FIRST Bank as guided at the time of merger in December 2018. • CASA Growth: This is a key focus and growth area for the bank. We plan to increase the CASA Ratio from 8.68% as of December 31, 2018 on a continuous basis year on year and strive to reach 30% CASA r
Slide 59: Profitability Goals as guided at the time of merger
Section 6: Profitability Goals for IDFC FIRST Bank as guided at the time of merger in December 2018. • Net Interest Margin: The bank plans to expand the NIM to about 5.0% - 5.5% in the next 5 years based on better cost of funds and carefully selecting the product segments where we have strong proven
Slide 60: History of Capital First
Since the business model of Capital First with sustainable and profitable Retail Asset growth is an important part of the business being built in the merged bank, the brief history and the business progression of Capital First are provided further for reference to the investors. Section 7: History o
Slide 61: Successful Trajectory of Growth and Profits at Capital First
Section 6: Successful Trajectory of Growth and Profits at Capital First History of Capital First Limited The Company was first listed on Stock Exchanges in January 2008. Between 2010 to 2012, Mr Vaidyanathan acquired a stake in the company and executed a Management Buyout (MBO) of the Company with e
Slide 62: Successful Trajectory of Growth and Profits at Capital First
Section 6: Successful Trajectory of Growth and Profits at Capital First. This page is an extract from Capital First investor Presentation of September 2018, which is the last quarter prior to merger. Presented here to demonstrate the capability of the core loan book and the track record of growth an
Slide 63: Summary – Strategy for IDFC FIRST Bank
Section 6: Summary – Strategy for IDFC FIRST Bank In summary, IDFC FIRST Bank has been building a granular retail deposit and asset franchisee with healthy incremental margins, supported by the digital innovations and analytics platforms. The Bank provides excellent service to its customers under it
Slide 64: Thank You
THANK YOU IDFC FIRST Bank