Idfc First Bank Ltd. · NSE:IDFCFIRSTB
Idfc First Bank — Q3 FY25 Earnings Presentation
101 slides from Idfc First Bank's earnings presentation, January 2025
Slide 1: Investor Presentation – Q3 FY25
Investor Presentation – Q3 FY25
Slide 2: Our Vision
IDFC FIRST Bank Our Vision TO BUILD A WORLD CLASS BANK IN INDIA, GUIDED BY ~~ ETHICS, 9 POWERED BY ~.> TECHNOLOGY, AND BE A FORCE FOR Safe SOCIAL GOOD @
Slide 3: Key Highlights of Q3 FY25 - Commentary
Section 1: Building a Universal Bank Key Highlights of Q3 FY25 - Commentary • Strong growth of 28.8% YoY in Customer Deposits to reach US$ 26,432 Mn. • 29.6% YoY growth in Retail Deposits to reach US$ 21,018 Mn. Deposits • Strong growth of 32.3% YoY in CASA deposits • Savings accounts grow at 32.9%
Slide 4: Key Highlights of Q3 FY25
Section 1: Building a Universal Bank Key Highlights of Q3 FY25 • Provisions for Q3 FY25 stood at US$ 156 Mn., driven by the higher slippages in in the Micro-Finance book. Excluding MFI, the provisions were stable for the Non-MFI book. Provisions • The Bank has not utilized any provision buffers in Q
Slide 5: Table of Contents
1 Building a Universal Bank 5 2 Deposits and Borrowings 13 3 Diversified Loan Portfolio 26 4 Robust Risk Framework 32 TABLE 5 Microfinance Business 48 OF 6 Digital Capabilities 53 CONTENTS 7 Profitability & Capital 60 8 Credit Rating 76 9 Board of Directors 78 10 Progress on ESG 81 11 Awards & Recog
Slide 6: IDFC FIRST Bank was created by merger of IDFC Bank and Capital First in December 2018
Section 1: Building a Universal Bank IDFC FIRST Bank was created by merger of IDFC Bank and Capital First in December 2018 • IDFC FIRST Bank was created by the merger of Erstwhile IDFC Bank and Erstwhile Capital First on December 18, 2018. • Erstwhile IDFC Bank started its operation as a Bank after
Slide 7: IDFC FIRST Bank was created by merger of IDFC Bank and Capital First in December 2018
Section 1: Building a Universal Bank IDFC FIRST Bank was created by merger of IDFC Bank and Capital First in December 2018 In US$ Mn. IDFC FIRST Bank, IDFC FIRST Bank Change Parameters Erst. CAPITAL FIRST Erst. IDFC Bank (30-Sep-2018) (30-Sep-2018) (on merger) (now) Since (31-Dec-2018) (31-Dec-2024)
Slide 8: Post merger, the Bank undertook key initiatives to create building blocks for future growth
Section 1: Building a Universal Bank Post merger, the Bank undertook key initiatives to address the challenges and create necessary building blocks for future growth over the last 6 years.. We are happy to share that IDFC FIRST Bank has made significant progress on all counts during the last 6 years
Slide 9: Bank has launched and scaled up many new products
Section 1: Building a Universal Bank Bank has launched and scaled up many new products From FY19 onwards, the Bank Some of the Key New Products Launched Post-Merger Current Accounts Variants launched a number of products in the areas of loans, Agri / Farmer Loans deposits, fee-based products Forex S
Slide 10: The Bank now has built a full Suite of Universal Banking Products
Section 1: Building a Universal Bank The Bank now has built a full Suite of Universal Banking Products.. Corporate Lending Retail Lending Solutions Working Capital demand Loans, Cash Credit, Term Home Loans, vehicle Loans, Consumer Loans, Education Loans, Personal Loans, Corporate Bonds / NCDs, Fore
Slide 11: Bank has built a strong franchise of 38 M customers
Section 1: Building a Universal Bank Bank has built a strong franchise of 38 M customers Total Unique Customers Credit Cards in Force 37.5Mn 3.3M 9.3Mn - Mar-19 Dec-24 Mar-19 Dec-24 NRI Customers Wealth Management Customers 89,876 2,23,000 3,641 5,500 Mar-19 Dec-24 Mar-19 Dec-24 1. Credit Cards busi
Slide 12: Expanding customer franchise in SME & Corporate Banking
Section 1: Building a Universal Bank Expanding customer franchise in SME & Corporate Banking Start-up Banking Customers Business Banking Customers 21,900 8,976 1,732 - Mar-19 Dec-24 Mar-19 Dec-24 FASTag Customers CMS Relationships 15.5Mn 3,310 1,153 0.1Mn Mar-19 Dec-24 Mar-19 Dec-24 11
Slide 13: Bank has set-up 971 branches across India
Section 1: Building a Universal Bank Bank has set-up 971 branches across India • IDFC FIRST Bank Branches and ATMs are spacious, digitally equipped, and customer friendly staff. • The Bank intends to grow the branch network by 10% each year in near term. • Bank grew its branch network from 206 branc
Slide 14: Section 2: Deposits and Borrowings
Section 2: Deposits and Borrowings
Slide 15: Strong growth in Customer Deposits, YoY growth of 28.8%
Section 2: Deposits & Borrowings Strong growth in Customer Deposits, YoY growth of 28.8% In US$ Mn. Customer Deposits Dec-24 vs Dec-23 US$ 5,911 28.8 % 26,432 Dec-24 vs Sep-24 US$ 1,080 4.3 % 22,202 15,661 10,839 9,619 6,712 4,472 4,710 Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Dec-24 14
Slide 16: Strong growth in Retail Deposits, YoY growth of 29.6%
Section 2: Deposits & Borrowings Strong growth in Retail Deposits, YoY growth of 29.6% In US$ Mn. Retail Deposits Dec-24 vs Dec-23 US$ 4,805 29.6 % 21,018 Dec-24 vs Sep-24 US$ 634 3.1 % 17,598 12,078 7,430 7,911 3,945 1,209 1,537 Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Dec-24 15
Slide 17: Strong growth in CASA Deposits, YoY Growth of 32.3%
Section 2: Deposits & Borrowings Strong growth in CASA Deposits, YoY Growth of 32.3% In US$ Mn. CASA Deposits Dec-24 vs Dec-23 US$ 3,208 32.3 % 13,149 Dec-24 vs Sep-24 US$ 440 3.5 % 10,693 8,122 5,950 5,337 2,402 613 918 Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Dec-24 16
Slide 18: CASA Ratio Stable at 47.7%
Section 2: Deposits & Borrowings CASA Ratio Stable at 47.7% CASA Ratio as of 30th September 2024 was 48.9% 51.7% 48.4% 49.0% 47.7% 46.5% 31.9% 11.4% 8.7% Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Dec-24 17
Slide 19: Bank has a highly diversified liabilities base with 80% Retail Customer Deposits
Section 2: Deposits & Borrowings Bank has a highly diversified liabilities base with 80% Retail Customer Deposits • It is a strategic priority of the Bank to diversify the deposits by raising retail deposits. • Retail Deposit customers get used to transactions, id, passwords, RMs, branch services, a
Slide 20: Deposits & Borrowings Details
Section 2: Deposits & Borrowings Deposits & Borrowings Details The Bank has grown its customer deposits by 29% YOY which was utilized for repayment of the legacy borrowings and for growth of assets. Particulars (in US$ Mn.) Dec-23 Sep-24 Dec-24 YoY Growth Legacy Long Term & Infrastructure Bonds 1,38
Slide 21: Bank has reduced Cost of Funds by 131 bps since merger
Section 2: Deposits & Borrowings Bank has reduced Cost of Funds by 131 bps since merger Even In environment of increasing interest rates Cost of Funds 7.80% • The Repo Rate increased by 25 bps between FY19 and 6.48% 9M-FY25, but the Cost of Funds of the Bank reduced from 7.8% at merger to 6.48%, a r
Slide 22: Retail Deposits and CASA raised to wind down Borrowings and Certificate of Deposits
Section 2: Deposits & Borrowings The Bank has raised Retail Deposits and CASA to wind down Borrowings and Certificate of Deposits Composition of Total Deposits & Borrowings* US$ 31,834 Mn. CASA • Borrowing and Certificate of Deposits together as % of total 41.3% deposits & Borrowings has Retail Term
Slide 23: Reliance on borrowings has declined meaningfully
Section 2: Deposits & Borrowings Reliance on borrowings has declined meaningfully, completing the liability side transformation Borrowings (Excluding Money Market) as a % of Total Liabilities 48% 44% 44% 31% 27% 22% 14% 13% Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Dec-24 22
Slide 24: Bank continues to run down the Legacy high-cost long-term borrowings
Section 2: Deposits & Borrowings Bank continues to run down the Legacy high-cost long-term borrowings • Because we have a DFI background, the legacy borrowings are costing the bank 8.81%. The Bank plans to replace this with low- cost deposits. Maturity of Legacy Borrowings Q4 FY25 US$ 216 Mn. 6,704
Slide 25: Credit Deposit Ratio has reduced from 137% to 95.7%
Section 2: Deposits & Borrowings Credit Deposit Ratio has reduced from 137% to 95.7% CD Ratio (Gross Advances & Credit Substitutes) CD Ratio (Gross Advances) 169.0% 156.6% 159.0% 137.0% 134.8% 132.1% 124.9% 122.2% 117.0% 114.5% 111.0% 107.0% 100.2% 98.4% 97.5% 95.7% Dec-18 Mar-19 Mar-20 Mar-21 Mar-2
Slide 26: Section 3: Diversified Loan Portfolio
Section 3: Diversified Loan Portfolio
Slide 27: Diversified Loan Book
Section 3: Diversified Loan Portfolio Diversified Loan Book The Bank has transformed the loan book from a primarily wholesale credit book to a well diversified portfolio including retail, rural, MSME and corporate Banking Loan Book: US$ 12,170 Mn. December 31, 2018 Loan Book: US$ 26,869 Mn. December
Slide 28: The Bank has diversified its loan book across more than 25 business lines
Section 3: Diversified Loan Portfolio The Bank has diversified its loan book across more than 25 business lines Other Corporates Infrastructure incl SE/SR 1% Financing 1% Loan Book: December 31, 2024 US$ 26,869 Mn. Financial Institutions 8% Emerging Corporates 7% Home Loan 11% Large Corporates 1% 28
Slide 29: Loan Growth driven by HL, LAP, Vehicle and MSME & Corporate Loans
Section 3: Diversified Loan Portfolio Loan Growth driven by HL, LAP, Vehicle and MSME & Corporate Loans Gross Loans & Advances (In US$ Mn.) Dec-23 Sep-24 Dec-24 YoY (%) QoQ (%) Retail Finance 12,953 15,198 15,692 21.10% 3.20% - Home Loan 2,457 2,964 3,058 24.50% 3.10% - Loan Against Property 2,539 3
Slide 30: Infrastructure financing portfolio reduced from 19% to 1.1%
Section 3: Diversified Loan Portfolio The Bank has reduced its infrastructure financing portfolio from 19% in Mar-19 to 1.1% of the total funded assets in Dec-24. Infra Book (US$ Mn) Infra % 2,495 19.4% 1,664 13.8% 1,257 9.2% 801 5.3% 542 2.9% 329 296 1.4% 1.1% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar
Slide 31: Reduced concentration risk in Wholesale lending
Section 3: Diversified Loan Portfolio As a key risk measure, the Bank has reduced concentration risk in Wholesale lending Also, the exposure to top 20 single borrowers reduced from 16% in Further, the exposure to top 5 industries also reduced from 41% Mar-19 Mar-19 to 5% in Dec-24 to 21% in Dec-24 w
Slide 32: 4. Robust Risk Management Framework
4. Robust Risk Management Framework 1. Cash-flow based lending – fundamental basis of Bank’s lending 2. EMI / Cheque Bounce (early bucket) return Trend 3. Collection Efficiency Trend 4. SMA – 1+2 Trend 5. Product wise SMA -1+2 trend in Retail, Rural, MSME 7. Asset Quality Summary Separating MFI asse
Slide 33: Cash Flow Assessment Debit
1. Cash-flow based lending – fundamental basis of Bank’s lending Section 4: Robust Risk Management Framework The fundamental underwriting principle of the Bank explained Cash Flow Debit Assessment Instruction to High Asset Quality (Bank statements, GST filings, Bureau Data etc.) Bank • The Bank lend
Slide 34: 10 Step Stringent Underwriting Process
1. Cash-flow based lending – fundamental basis of Bank’s lending Section 4: Robust Risk Management Framework 10 Step Stringent Underwriting Process No Go The Bank evaluates certain quick no-go criteria such as Title Deed Evaluation of title deeds of the property and collateral, Criteria deduplicatio
Slide 35: First EMI returns for insufficient funds has reduced by 32%
2. EMI / Cheque Bounce (early bucket) return Trend Section 4: Robust Risk Management Framework First EMI returns for insufficient funds has reduced by 32% which indicates quality of underwriting has improved over the years First EMI Returns for insufficient funds 7.1% 5.1% 5.1% 5.0% 4.9% 4.7% 4.7% D
Slide 36: Collection efficiency stable at 99.5% (Excluding micro-finance)
3. Collection Efficiency Trend Section 4: Robust Risk Management Framework The Bank collection efficiency stable at 99.5% (Excluding micro-finance) Collection Efficiency % = (Pos of EMI Collected for the Month)/(Pos of EMI Due for the month) % Collections % represented here do not include any arrear
Slide 37: SMA-1 & SMA-2 portfolio as % of Retail, Rural & MSME Loan Book
4. SMA 1+2 Trend Section 4: Robust Risk Management Framework SMA-1 & SMA-2 portfolio as % of Retail, Rural & MSME Loan Book (Excluding Microfinance business) is stable SMA-1 & SMA-2 portfolio as % of Retail, Rural & MSME Loan Book, ex MFI (gross of IBPC) SMA 1 = 31-60 dpd Pre -NPA SMA 2 = 61-90 dpd
Slide 38: Product wise SMA Analysis – All product stable except Microfinance
5. Product wise SMA 1+2 Trend Section 4: Robust Risk Management Framework Product wise SMA Analysis – All product stable except Microfinance We expect credit cost of MFI business to Product-wise SMA-1 & SMA-2 portfolio peak in Q4-FY25 and taper off from there 4.56% Mar-24 Jun-24 Sep-24 Dec-24 SMA ex
Slide 39: Retail, rural and MSME product segments continue to have low NPA ratios
6. Break-down of NPA Section 4: Robust Risk Management Framework Retail, rural and MSME product segments continue to have low NPA ratios • Bank’s GNPA was at 1.94% and GNPA% NNPA% % of Funded Assets NNPA at 0.52% • Provision coverage at bank level stood at 73.59% Retail, Rural & MSME - GNPA: 1.63% |
Slide 40: Asset Quality of the Bank excluding Microfinance business is stable
7. Asset Quality Summary – Ex-MFI and MFI Section 4: Robust Risk Management Framework Asset Quality of the Bank excluding Microfinance business is stable Gross NPA % Net NPA % 1.88% 1.81% 0.48% 0.49% Credit cost of the Bank ex MFI and excluding one Q2 FY25 Q3 FY25 Q2 FY25 Q3 FY25 Mumbai entry point
Slide 41: Asset Quality of Microfinance book deteriorated during the quarter
7. Asset Quality Summary – Ex-MFI and MFI Section 4: Robust Risk Management Framework Asset Quality of Microfinance book deteriorated during the quarter Gross NPA % Net NPA % 4.45% 1.11% 2.52% 0.49% Q2 FY25 Q3 FY25 Q2 FY25 Q3 FY25 SMA 1+2 4.56% Credit cost of Microfinance 2.54% business was 8% for 9
Slide 42: High Retail asset quality, GNPA of ~2% and NNPA ~1% for 14 years
8. NPA Trend in Retail, Rural, MSME Book for 15 years Section 4: Robust Risk Management Framework Bank has maintained High Retail asset quality, GNPA of ~2% and NNPA ~1% for 14 years across cycles 31-Dec-24 GNPA NNPA Retail, Rural & MSME NPA ratio GNPA: 1.63% NNPA: 0.59% 4.01% Ex Micro-finance GNPA:
Slide 43: NPA Movement
9. NPA Movement Section 4: Robust Risk Management Framework NPA Movement Description (US$ Mn.) Q2 FY25 Q3 FY25 Opening NPAs 454 488 ADD: Gross additions (Fresh Slippages) 236 255 - Other than MFI 202 204 - MFI 34 51 LESS: Recoveries, Upgrades and others -74 -76 Net Addition 162 179 LESS: Write-offs
Slide 44: Vintage Analysis – showing quality of portfolio improvement
10. Vintage Analysis Section 4: Robust Risk Management Framework Vintage Analysis – showing quality of portfolio improvement over the year (excluding microfinance business). Vintage Analysis compares the delinquency of a portfolio with another, exactly 6.0% after the same number of Months on Books (
Slide 45: Coincidental (30+%) delinquency better than industry as per CIBIL records
11. Industry Comparison 30+ Performance for key products Section 4: Robust Risk Management Framework Coincidental (30+%) delinquency better than industry as per CIBIL records Home Loan Loan Against Property 4.1% 4.1% 5.3% 5.4% 3.5% 3.5% 3.5% 4.7% 4.6% 4.3% 2.0% 1.9% 1.6% 1.5% 1.5% 1.4% 0.8% 0.7% 0.6
Slide 46: Coincidental (30+%) delinquency better than industry as per CIBIL records
11. Industry Comparison 30+ Performance for key products Section 4: Robust Risk Management Framework Coincidental (30+%) delinquency better than industry as per CIBIL records 30+ DPD Trend (PL including Digital) Consumer Durable 3.3% 3.3% 3.0% 3.1% 3.1% 3.2% 2.9% 2.9% 2.6% 2.7% 3.0% 3.0% 2.8% 2.6% 2
Slide 47: Provision Coverage Ratio increased to 73.6% for the Bank
12. Trend of Provision Coverage Ratio Section 4: Robust Risk Management Framework Provision Coverage Ratio increased to 73.6% for the Bank 73.6% 68.8% 66.4% 59.5% Provision coverage improved by 671 bps 56.2% from 66.9% in December 2023 to 73.6% in December 2024 Mar-21 Mar-22 Mar-23 Mar-24 Dec-24 Pro
Slide 48: Section 5: Microfinance Business
Section 5: Microfinance Business a. Purpose & Objective b. Trend of Disbursement & Outstanding Book c. Microfinance Trend in Collection Efficiency d. Insured by CGFMU Cover
Slide 49: Micro-finance Loans – Meets Agri and PSL Requirements
a. Purpose & Objective Section 5: Microfinance Business Micro-finance Loans – Meets Agri and PSL Requirements • Small ticket size loans offered to only women borrowers primarily in rural areas for their livelihood generation • Usually, 10-20 members come together to form a group, who are provided co
Slide 50: Micro-Finance book reduced to 4.8% of total funded assets
b. Trend of Microfinance Disbursement & Book Section 5: Microfinance Business The Bank’s Micro-Finance book has reduced to 4.8% of total funded assets as the conservative stance of Micro-Finance disbursals continues • Bank put restriction on new to bank customer in selected geographies and have been
Slide 51: Collection Efficiency reduced in October 2024, bounced back to 98.6% in Dec-24
c. MFI Trend in Collection Efficiency Section 5: Microfinance Business Collection Efficiency reduced in October 2024, bounced back to 98.6% in Dec-24 Collection Efficiency % = (Pos of EMI Collected for the Month)/(Pos of EMI Due for the month)% Note: Collections does not include any arrear collectio
Slide 52: Micro-finance business: CGFMU cover increased gradually since January 2024
d. Insured by CGFMU cover Section 5: Microfinance Business Micro-finance business: CGFMU cover increased gradually since January 2024 • The disbursals in micro-finance segment continued to remain tepid in Q3- FY25. • The incremental new disbursals from January 2024 have been covered under CGFMU. 58%
Slide 53: Section 6: Digital Capabilities
Section 6: Digital Capabilities
Slide 54: Advanced Mobile Banking App with top rating of 4.8
Section 6: Digital Capabilities Bank successfully rolled out an advanced Mobile Banking App with top rating of 4.8 on Google Play and 4.8 on App Store CREATE FD in 2 CLICKS 8 FIRSTMONEY PL – ETB/NTB ACE FUNDS/ IPO SMART STATEMENT Only Indian bank to feature in REVAMPED CREDIT CARD Global Top-15 Mob
Slide 55: Wealth Management: AUM growing at 89% CAGR
Section 6: Digital Capabilities Wealth Management: AUM growing at 89% CAGR and crossed US$ 4,900 Mn. • The Bank is successfully creating a strong wealth franchise. • Private Banking Book comprising of Wealth AUM & Deposits grew by 53% on a YoY basis to US$ 4,974 Mn. Wealth Private AUM & Deposit (US$
Slide 56: Over 21.5 million FASTags issued
Section 6: Digital Capabilities Over 21.5 million FASTags issued Largest IDFC FIRST is the largest issuer among 38 Issuer FASTags issued banks in NETC with respect to FASTAG monthly Issuer bank activation numbers and value processed. 21.5M 17.6M Largest Acquirer Largest Acquirer Bank with 761+ Toll
Slide 57: Credit Cards in force crosses 3 million mark
Section 6: Digital Capabilities Credit Cards in force crosses 3 million mark Credit Card Book (US$ Mn.) Credit Cards in force Credit Card Spends (US$ Mn.) 3.3 Mn+ 804 3,519 3,418 645 2.5 Mn+ 2,160 408 1.5 Mn+ 234 989 0.7 Mn+ 49 50 0.1 Mn+ Mar-21 Mar-22 Mar-23 Mar-24 Dec-24 Mar-21 Mar-22 Mar-23 Mar-2
Slide 58: Strong growth in Business from recently launched Mobile App
Section 6: Digital Capabilities Strong growth in Business from recently launched Mobile App Mutual Funds (Investments) Foreign Payments (US$ Mn.) (US$ Mn.) 90 26 40 14 Q3-FY24 Q3-FY25 Q3-FY24 Q3-FY25 Payment through UPI Fixed Deposits (US$ Mn.) (US$ Mn.) 755 1,514 510 789 Q3-FY24 Q3-FY25 Q3-FY24 Q3-
Slide 59: Strong improvement in Customer Service due to Digital Capabilities
Section 6: Digital Capabilities Strong improvement in Customer Service due to Digital Capabilities • Digitisation initiatives are improving efficiency and customer experience in customer service, disbursement, processing, collection, liabilities, and all divisions. • For instance, in the last one ye
Slide 60: Section 7: Profitability & Capital
Section 7: Profitability & Capital 59
Slide 61: Strong rise in Profitability, Core PPOP grew 24% YoY in 9M FY25
Section 7: Profitability & Capital Strong rise in Profitability, Core PPOP grew 24% YoY in 9M FY25 In US$ Mn. unless specified otherwise Net Interest Income 20% Fee and Other Income 19% 674 1,913 578 1,673 1,469 1,393 482 487 1,129 858 313 706 189 180 407 97 FY19* FY20 FY21 FY22 FY23 FY24 9M 9M FY19
Slide 62: Breakup of Fee & Other Income – 9M FY25
Section 7: Profitability & Capital Breakup of Fee & Other Income – 9M FY25 Loan Origination • The Bank has launched and Fees scaled up many fee-based General banking Fees & 31% Others products in the last 5 years. 23% • Many of these products are in the early stage of their lifecycle and have the po
Slide 63: Targeting to bring down the Cost to Income Ratio over next 3 years
Section 7: Profitability & Capital Targeting to bring down the Cost to Income Ratio over next 3 years Assets C:I ratio Trend: Retail Liabilities C:I ratio Trend: Credit Cards C:I ratio Trend: 60% 227% 197% 240% 182% 178% 55% 140% 53% 165% 53% <50% 116% 100% ~75% FY22 FY23 FY24 9M FY25 FY27 P FY22 FY
Slide 64: Composition of Operating Expenditure (9M-FY25)
Section 7: Profitability & Capital Composition of Operating Expenditure (9M-FY25) IT Expenses • Bank beginning to see benefits of 11% Employee Related Expenses operating leverage. In 9MFY 25, Others 30% Total Business grew by 25% but the 11% Opex increased by only 18.2%. • Customer Deposits grew by
Slide 65: Bank has turned profitable on sustained basis
Section 7: Profitability & Capital Bank has turned profitable on sustained basis based on strong Operating Profits Net Profit (US$ Mn.) 344 283 • The core business of the Bank continued to remain profitable despite expenses incrurred in launching many new business lines. 142 • The Asset Businesses (
Slide 66: Assets (Retail Loans & Wholesale Banking): Profitability
Section 7: Profitability & Capital Assets (Retail Loans & Wholesale Banking) : Profitability In US$ Mn. Operating Profit as a % of Average Loan Book (Retail + Wholesale) Avg. Loan Book 12,698 12,487 13,535 16,802 21,025 24,760 • Loan Asset Book including the loan book in YoY Growth% retail, rural, M
Slide 67: Retail Liabilities Business: Moving towards break even
Section 7: Profitability & Capital Retail Liabilities Business : Moving towards break even with scale and productivity In US$ Mn. Operating Profit as % of Average Retail Deposits Avg Retail Deposits 2,701 6,511 8,095 10,653 15,962 21,481 • Retail Liabilities generates necessary granular and YoY Grow
Slide 68: Credit Cards Business: Moving towards break even
Section 7: Profitability & Capital Credit Cards Business: Moving towards break even with scale and productivity In US$ Mn. Operating Profit as % of Average Loan Book • Credit Card business was launched during the end of FY21 and has grown significantly since then, issuing more than Avg. Loan Book 13
Slide 69: Balance Sheet
Section 7: Profitability & Capital Balance Sheet Growth (%) In US$ Mn. Dec-23 Sep-24 Dec-24 (YoY) Shareholders' Funds 3,657 4,290 4,395 20.2% Deposits 21,227 26,001 27,544 29.8% - CASA Deposits 9,941 12,708 13,149 32.3% - Term Deposits 11,286 13,292 14,395 27.6% Borrowings 5,245 5,389 5,394 2.8% Oth
Slide 70: Nine months Income Statement
Section 7: Profitability & Capital Nine months Income Statement Growth (%) In US$ Mn. 9M FY24 9M FY25 YoY Interest Income 2,570 3,150 22.6% Interest Expense 1,177 1,477 25.5% Net Interest Income 1,393 1,673 20.1% Fee & Other Income 487 578 18.9% Trading Gain 20 17 -13.1% Operating Income 1,900 2,269
Slide 71: Profitability Trend of Bank excluding MFI business (Analysis)
Section 7: Profitability & Capital Profitability Trend of Bank excluding MFI business (Analysis) Core Operating Profit of the Bank increased 32% excluding the impact of the MFI business. Thus, the core franchise continues to be very strong. Bank Level Profitability (Excluding – Microfinance Business
Slide 72: Quarterly Income Statement
Section 7: Profitability & Capital Quarterly Income Statement Growth (%) In US$ Mn. Q3 FY24 Q2 FY25 Q3 FY25 YoY Interest Income 916 1,042 1,086 18.6% Interest Expense 418 485 516 23.6% Net Interest Income 498 557 570 14.4% Fee & Other Income 171 189 204 19.6% Trading Gain 6 12 3 -51.7% Operating Inc
Slide 73: Capital Adequacy Ratio
Section 7: Profitability & Capital Capital Adequacy Ratio In US$ Mn. Dec-23 Sep-24 Dec-24 Common Equity^ 3,546 4,119 4,222 Tier 2 Capital Funds 706 750 751 Total Capital Funds 4,252 4,869 4,973 Total Risk Weighted Assets 25,420 29,768 30,867 CET-1 Ratio (%) 13.95% 13.84% 13.68% Total CRAR (%) 16.73%
Slide 74: Shareholding Pattern
Section 7: Profitability & Capital Shareholding Pattern Scrip Name: IDFC FIRST Bank (BSE: 539437, NSE:IDFCFIRSTB) Shareholding (December,31 2024) Trusts and Clearing Members (0.10%) Other Body Corporate (2.68%) Others Total No. of shares after merger 7,320 Mn. (0.06%) President of India (9.11%) Rs.
Slide 75: BVPS has grew from US$ 0.36 to US$ 0.60 since March 2021
Section 7: Profitability & Capital BVPS has grew from US$ 0.36 to US$ 0.60 since March 2021 In US$ During the last 15 quarters, the BVPS Book Value Per Share reduced during increased by 65% with the increasing the first few years after merger due to profitability from the core business credit losses
Slide 76: Section 8: Credit Rating
Section 8: Credit Rating
Slide 77: Bank's Long Term Credit Rating
Section 8: Credit Rating Bank’s Long Term Credit Rating Rating Agency Fixed Deposit CRISIL AAA o The Bank has received AAA rating Long Term Credit Rating by CRISIL for its Fixed Deposit Program ICRA AA+ (stable) o Bank’s Long Term Credit rating India Ratings AA+ (stable) got upgraded from AA (Stable
Slide 78: Section 9: Board of Directors
Section 9: Board of Directors
Slide 79: Board of Directors: MD & CEO Profile
Section 9: Board of Directors Board of Directors: MD & CEO Profile Vaidyanathan aspires to create “a world-class Indian Bank, guided by ethics, powered by technology, and to be a force social good”. He became the Managing Director and CEO of IDFC FIRST Bank in December 2018 following the merger of C
Slide 80: Board of Directors
Section 9: Board of Directors Board of Directors • Advisor to global organizations across Europe, the US • Has over 32 years of experience in corporate • Was President and Group CTO at ICICI Bank from and Asia. world, with 24 years being in banking & financial 2005 to 2012. • Worked as Regional Busi
Slide 81: Section 10: Progress on ESG
Section 10: Progress on ESG
Slide 82: Our ESG journey
Section 10: Progress on ESG Our ESG journey H1 FY23 H1 FY24 H2 FY24 9M FY25 • ESG adopted into a Board • The Bank wins the coveted Golden • Published the second Integrated Committee • First Integrated Report of the Peacock Award for ESG 2023 Report Bank published, aligned to IR (National) • BRSR Cor
Slide 83: Key ESG highlights
Section 10: Progress on ESG Key ESG highlights ENVIRONMENT SOCIAL GOVERNANCE SUSTAINABLE FINANCE ▪ 21% overall infrastructure ▪ 1,07,519 community ▪ 80% Independent Directors ▪ ~2.3 lakh EV two wheelers green certified members positively impacted on Board financed (live portfolio) till Q3 FY 25 ▪ Co
Slide 84: Recognitions for ESG Efforts
Section 10: Progress on ESG Recognitions for ESG Efforts ABF Retail Banking Awards Dun & Bradstreet India The European Institute of Directors India Capital Finance International Financial Inclusion Initiative of Leading Listed ESG Entity Most ESG Responsible Banking Golden Peacock Award in ESG Outst
Slide 85: Section 11: Awards and Recognition
Section 11: Awards and Recognition
Slide 86: Awards and Recognition
Section 11: Awards & Recognitions Awards and Recognition FE Best Banks Award for Best Savings Product 2024 – Financial Express FE Best Banks Award for Banker Of The Year - 2024 - Financial Express Global Transaction Banking Innovation Award for Outstanding Innovation in Corporate Payments - 2024– Th
Slide 87: IDFC FIRST Bank has established its strong presence improving its TOMA score
Section 11: Awards & Recognitions IDFC FIRST Bank has established its strong presence improving its TOMA score Top Of Mind Awareness (TOMA) ^ 30 25 13 4 2 Mar-21 Mar-22 Mar-23 Mar-24 Dec-24 • Over the years, the Bank has launched many campaigns and improved its brand recognition • TOMA score represe
Slide 88: IDFC FIRST Bank
IDFC FIRST Bank We are building a world class bank with: - Highest levels of corporate governance - Stable balance sheet growth of ~20%, - Robust asset quality of GNPA less than 2% and net NPA of < 1% - High teens ROE - Contemporary technology and - High levels of Customer Centricity. 87
Slide 89: 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 90: Thank You
Thank You IDFC FIRST Bank
Slide 91: Annexure 1
Annexure 1 • Performance of the Bank against the stated goals • Guidance 2.0 90
Slide 92: The Bank is performing well on the guidance given for FY25
The Bank is performing well on the guidance given for FY 25 at the time of the merger Dec-18 Particulars Guidance for FY24-FY25 9M-FY25 Status (At Merger) CET – 1 Ratio 16.14% >12.5 % 13.68%1 On Track Capital Capital Adequacy (%) 16.51% >13.0 % 16.11%1 On Track 30% (FY24), CASA as a % of Deposits (%
Slide 93: The Bank is performing well on the guidance given for FY25
The Bank is performing well on the guidance given for FY 25 at the time of the merger Dec-18 Particulars Guidance for FY24-FY25 9M-FY25 Status (At Merger) Top 10 borrowers as % of Total Loans & Advances (%) 12.8% < 5% 1.87% Achieved GNPA (%) 1.97% 2.0% - 2.5% 1.94% Achieved Asset Quality NNPA (%) 0.
Slide 94: Target 2.0 (FY24 - FY29)
Target 2.0 (FY24 - FY29) [Provided in January 2024] Particulars 31-Dec-2018 31-Dec-2023 5 Year CAGR (%) 31-Mar-2029 • The Bank has exceeded or met or most Deposits First 5 years since after merger likely to meet most targets as provided Branches (#) 206 897 34% 1700-1800 under Guidance 1.0. Customer
Slide 95: Annexure 2
Annexure 2 Since the business model of Capital First is an important part of the business being built in the merged bank, the brief history and the progress of Capital First is being provided for ready reference to investors. 94
Slide 96: Successful Trajectory of Growth and Profits at Capital First
Successful Trajectory of Growth and Profits at Capital First Financial Performance: The Asset Under Management has consistently grown at 5-Year CAGR of 29% 3,793 3,139 Wholesale AUM (US$ Mn) Retail AUM (US$ Mn 2,305 1,865 1,392 1,125 873 719 320 109 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 H1-FY
Slide 97: Successful Trajectory of Growth and Profits at Capital First
Successful Trajectory of Growth and Profits at Capital First Financial Performance: Yearly Trend of Profit After Tax In FY 08 and 09, the Company had made losses. Even after the new leadership took over, for two years the company continued to post losses as the building blocks for new age retail len
Slide 98: Successful Trajectory of Growth and Profits at Capital First
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 and profitabil
Slide 99: Capital First: the Return on Equity continuously improved over the quarters
Capital First: the Return on Equity continuously improved over the quarters… 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 growt
Slide 100: Successful Trajectory of Growth and Profits at Capital First
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 and profitabil
Slide 101: Successful Trajectory of Growth and Profits at Capital First
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 and profitabil