Idfc First Bank Ltd. · NSE:IDFCFIRSTB
Idfc First Bank — Q1 FY25 Earnings Presentation
100 slides from Idfc First Bank's earnings presentation, July 2024
Slide 1: Investor Presentation – Q1 FY25
Investor Presentation – Q1 FY25
Slide 2: Our Vision
IDFC FIRST Bank Our Vision TO BUILD A WORLD CLASS BANK IN INDIA, GUIDED BY 2 ETHICS, 9 @ POWERED BY == TECHNOLOGY, ¢ AND BE A FORCE FoR “3° SOCIAL GOOD
Slide 3: Table of Contents
1 Building a Universal Bank 3 2 Deposits and Borrowings 7 3 Diversified Loan Portfolio 18 4 Robust Risk Framework 22 5 Profitability & Capital 37 TABLE 6 Digital Capabilities 51 OF 7 Credit Rating 57 CONTENTS 8 Board of Directors 59 9 Shareholding Pattern 64 10 Progress on ESG 67 11 Awards & Recogni
Slide 4: Section 1: Building a Universal Bank
Section 1: Building a Universal Bank
Slide 5: Building a world class Universal Bank
Section 1: Building a Universal Bank Building a world class Universal Bank Strengths of the Bank Universal Bank Customer Friendly Positive Culture Granular Deposits Diversified Loan Book Universal bank with pan- India Customer First Products - Zero High level of Corporate Strong deposits franchise O
Slide 6: Key Achievements at a glance IDFC FIRST Bank 1.0
Section 1: Building a Universal Bank Key Achievements at a glance IDFC FIRST Bank 1.0 (Dec-18 to Mar-24) We are happy to share that IDFC FIRST Bank has made significant progress on all counts during the last 5 years including Deposits, Loan, Capital, Assets and Leadership Team Building. This slide s
Slide 7: Full Suite of Universal Banking Products
Section 1: Building a Universal Bank The Bank 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, Foreign Cu
Slide 8: Section 2: Deposits and Borrowings
Section 2: Deposits and Borrowings a. Growing Branch Presence b. Customer Deposits C. Retail Deposits d. CASA Deposits e. Diversification of Deposits f. Summary of Deposits and Borrowings g. Legacy High-Cost Borrowings h. Credit to Deposit Ratio
Slide 9: Growing branch presence across India
a. Growing Branch Presence Section 2: Deposits & Borrowings Growing branch presence across India Branch network Branch Distribution: Region Wise 955 Central East 944 9% West 19% 24% 809 South 641 26% North 596 22% 464 206 242 Branch Distribution: Population Group Wise Urban 30% Metropolitan Dec-18 M
Slide 10: 38% YoY growth in Total Customer Deposits
b. Customer Deposits Section 2: Deposits & Borrowings 38% YoY (June 23 to June 24) growth in Total Customer Deposits against system deposit growth of ~12% in Rs. crore Built Strong Deposit Franchise based on YoY – Jun-24 vs Jun-23 ↑38% • High customer service levels QoQ – Jun-24 vs Mar-24 ↑ 6% • Str
Slide 11: 44% YoY Growth in Retail Deposits
c. Retail Deposits Section 2: Deposits & Borrowings 44% YoY (June 23 to June 24) Growth in Retail Deposits in Rs. crore YoY – Jun-24 vs Jun-23 ↑44% 1,64,001 1,51,343 QoQ – Jun-24 vs Mar-24 ↑ 8% 1,03,870 68,035 63,894 33,924 (At Merger) (Pre-Merger) 10,400 13,214 5,693 Mar-18 Dec-18 Mar-19 Mar-20 Mar
Slide 12: 36% YoY growth in CASA deposits
d. CASA Deposits Section 2: Deposits & Borrowings 36% YoY (June 23 to June 24) growth in CASA deposits The Bank has been reducing interest rates on savings account since last 3 years. Recently reduced to only 3% for balances up to Rs. 5 lac. Our experience is that savings account is highly dependent
Slide 13: Healthy CASA Ratio at 46.6%
d. CASA Deposits Section 2: Deposits & Borrowings Healthy CASA Ratio at 46.6% • Bank maintained CASA at > 45% for the last 3 years 46.6% • Recent trend in CASA: ➢ As of March 31, 2022: 48.4% ➢ As of March 31, 2023: 49.8% ➢ As of March 31, 2024: 47.2% • Excluding temporary inflow from one government
Slide 14: Diversified liabilities base with 80% Retail Deposits
e. Diversification of 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, pas
Slide 15: Repaid Rs. 64,786 crore of Legacy Borrowings and CDs
e. Diversification of Deposits Section 2: Deposits & Borrowings Since Merger, Bank has repaid Rs. 64,786 crore of Legacy Borrowings and Certificate of Deposits Bank COF reduced by 132 bps from 7.79% at merger to 6.47% since merger. Deposits growth continues to be stable. Retail Deposits Certificate
Slide 16: Deposits & Borrowings Details
f. Summary of Deposits & Borrowings Section 2: Deposits & Borrowings Deposits & Borrowings Details The Bank has grown its customer deposits by 38% YOY driven by the retail deposits which was utilized for repayment of the legacy borrowings and for the growth of assets. Particulars (in Rs Cr) Jun-23 M
Slide 17: Running down legacy high cost long term borrowings
g. Legacy High-Cost Borrowings Section 2: Deposits & Borrowings Bank continues to successfully run down the legacy high cost long term borrowings • Because we have a DFI background, the legacy borrowings are costing the bank 8.93%. The Bank plans to replace this with low- cost deposits. • Once the h
Slide 18: Incremental CD ratio at 72.1%
h. Credit to Deposit Ratio Section 2: Deposits & Borrowings Incremental CD ratio at 72.1% (June 2023 to June 2024) • Bank has maintained low incremental CD ratio for five years now, thus the overall CD ratio has come down to below 98.1% • Credit-Deposit ratio (CD ratio) has improved consistently fro
Slide 19: Section 3: Diversified Loan Portfolio
Section 3: Diversified Loan Portfolio
Slide 20: Loan book diversified across more than 25 business lines
Section 3: Diversified Loan Portfolio The Bank has diversified its loan book across more than 25 business lines Infrastructure Financing 1% Loan Book: June 30, 2024 Other Corporates incl SE/SR 1% Home Loan 12% Rs. 2,09,361 crore Financial Institutions 8% Emerging Corporates 6% 29% of total loan book
Slide 21: Infrastructure financing book reduced from 19.4% to 1.3%
Section 3: Diversified Loan Portfolio Infrastructure Project financing Book reduced from 19.4% to 1.3% of loans & advances Infrastructure Financing Book (Rs. Crore) 36.7% % of Loans & Advances 26,832 19.4% 21,459 13.8% 14,315 9.2% 10,808 5.3% 6,891 2.9% 1.4% 1.3% 4,664 2,830 2,766 Mar-18 Mar-19 Mar-
Slide 22: Capability to originate PSL organically
Section 3: Diversified Loan Portfolio The Bank has built capability to originate PSL through organic origination A key progress of the Bank over the last five years is to be able to build capability to originate priority sector loans. Bank has not only filled up the shortfall of PSL but has generate
Slide 23: Robust Risk Management Framework
4. Robust Risk Management Framework a. Cash-flow based lending – fundamental basis of Bank’s lending b. Trend in Bounce Rates c. Trend in Collection Efficiency d. Vintage Analysis e. Businesses with higher risk behaviour- action taken f. SMA and NPA Ratios in Retail, Rural, SME Book g. Wholesale Cre
Slide 24: Cash-flow based lending
a. Cash-flow based lending – fundamental basis of Bank’s lending Section 4: Robust Risk Management Framework The fundamental underwriting principle of the Bank explained • The Bank lends on the basis of cash flow assessment – Cash Flow Assessment (Bank statements, GST filings, Bureau Data etc.) A. B
Slide 25: Risk Management Funnel for Retail, Rural & MSME Loans
a. Cash-flow based lending – fundamental basis of Bank’s lending Section 4: Robust Risk Management Framework Risk Management Funnel for Retail, Rural & MSME Loans Credit Policy Bank has robust credit policy and underwriting standards driven by data analytics Quality of On- With stringent credit norm
Slide 26: 10 Step Stringent Underwriting Process
a. Cash-flow based lending – fundamental basis of Bank’s lending Section 4: Robust Risk Management Framework 10 Step Stringent Underwriting Process The Bank evaluates certain quick no-go criteria Credit Checking the customer’s credit behavior history, such as deduplication against existing records,
Slide 27: First EMI Bounce rate reduced meaningfully
b. Trend in Repayment Bounce Rates Section 4: Robust Risk Management Framework First EMI Bounce rate on retail, rural and MSME (for insufficient funds) reduced meaningfully First EMI returns for insufficient funds has reduced by 30% which indicates quality of underwriting has improved over time (EMI
Slide 28: Collection efficiency at 99.5%
c. Trend in Collection Efficiency Section 4: Robust Risk Management Framework The Bank maintains high collection efficiency at 99.5%, steady behaviour Collection Efficiency % = (Pos of EMI Collected for the Month)/(Pos of EMI Due for the month) % Collections does not include any arrear collections,
Slide 29: JLG Collection %
c. Trend in Collection Efficiency Section 4: Robust Risk Management Framework JLG Collection % Early bucket Collection Efficiency in JLG has reduced from 99.7% in Jun-23 to 99.2% in Jun-24, down by 50 bps Collection Efficiency % = (Pos of EMI Collected for the Month)/(Pos of EMI Due for the month)%
Slide 30: Vintage Analysis – Retail, Rural & SME Book
d. Vintage Analysis Section 4: Robust Risk Management Framework Vintage Analysis – Retail, Rural & SME Book, 30 DPD, (excluding JLG). Vintage Analysis compares the delinquency of a portfolio with another, exactly after the same number of Months on Books (MOB). As per this analysis, 6.0% For the same
Slide 31: JLG outstanding portfolio is only 6.1% of loan book
e. Businesses with higher risk behaviour- action taken Section 4: Robust Risk Management Framework JLG Portfolio: JLG outstanding portfolio is only 6.1% of the overall loan book JLG Book 6% of the overall Loan Book • The delinquency of Microfinance portfolio increased largely because of massive floo
Slide 32: JLG Portfolio: Interventions to improve quality
e. Businesses with higher risk behaviour- action taken Section 4: Robust Risk Management Framework JLG Portfolio: Interventions undertaken to improve portfolio quality Steps taken to improve microfinance JLG Portfolio Outstanding (Rs crore) portfolio quality The Bank has moderated growth of JLG loan
Slide 33: SMA-1 & SMA-2 portfolio as % of Retail, Rural & MSME Book
f. SMA and NPA Ratios in Retail, Rural, SME Book Section 4: Robust Risk Management Framework SMA-1 & SMA-2 portfolio as % of total Retail, Rural & MSME Loan Book Increased largely due to higher SMA in JLG portfolio which increased from 1.26% at March 2024 to 1.70% at June 2024 1.01% 0.87% 0.85% 0.85
Slide 34: High Retail asset quality across cycles
f. SMA and NPA Ratios in Retail, Rural, SME Book Section 4: Robust Risk Management Framework Bank has maintained High Retail asset quality GNPA of ~2% and NNPA ~1% for 14 years across cycles • In this segment, asset quality maintained through Economic slowdown, demonetization, GST, ILFS Crisis. • Ev
Slide 35: Retail, rural and MSME segments have low NPA ratios
f. Break-down of NPA Section 4: Robust Risk Management Framework Retail, rural and MSME product segments continue to have low NPA ratios Segment Gross Advances Breakup (Rs. Crore) Gross NPA Net NPA Home Loan 24,658 0.67% 0.31% Retail, Rural & MSME Loan Against Property 24,729 1.57% 0.67% Gross NPA N
Slide 36: Reduced concentration risk in Wholesale lending
g. Wholesale Financing Section 4: Robust Risk Management Framework Bank has reduced concentration risk in Wholesale lending The Bank has reduced its corporate (non-infra) book from 29% in Mar- Similarly, the Bank has reduced its infrastructure financing portfolio 19 to 15% in June-24 from 19% in Mar
Slide 37: Provision Coverage Ratio increased to 87.5%
h. Provision Coverage Ratio Section 4: Robust Risk Management Framework Provision Coverage Ratio increased to 87.5% • Provision Coverage Ratio (excluding technical write-offs) improved to 69.4% as on June 30, 2024 from 68.8% as on March 31, 2024 • Provision Coverage Ratio as mentioned above after ex
Slide 38: Section 5: Profitability & Capital
Section 5: Profitability & Capital a. Net Interest Income b. Fee and Other Income c. Cost to Income d. Trend of Core Operating Profit e. Trend of Profitability and Return Ratios f. Financial Statements g. Capital Adequacy 37
Slide 39: Strong rise in NII at 5-Year CAGR of 28%
a. Net Interest Income Section 5: Profitability & Capital Strong rise in NII at 5-Year CAGR of 28% Net Interest Income (In Rs. Crore) 16,451 12,635 9,706 25% 7,380 6,076 4,845 4,695 3,745 FY19* FY20 FY21 FY22 FY23 FY24 Q1 FY24 Q1 FY25 • Net Interest Margin (NIM) on AUM for Q1-FY25 was 6.22% as compa
Slide 40: 19% YoY growth in Fee & Other Income
b. Fee & Other Income Section 5: Profitability & Capital 19% YoY growth in Fee & Other Income during Q1-FY25 Fee and Other Income (In Rs. Crore) 5,795 4,142 19% 2,691 1,550 1,622 1,595 1,341 1,167 FY19* FY20 FY21 FY22 FY23 FY24 Q1 FY24 Q1 FY25 • Fee and other income as a % of total average assets wa
Slide 41: Breakup of Fee & Other Income – Q1-FY25
b. Fee & Other Income Section 5: Profitability & Capital Breakup of Fee & Other Income – Q1-FY25 General Banking Fees & Others Loan Origination • The Bank has launched and 25% fees scaled up many fee-based 32% products in the last 5 years. • Many of these products are in the early stage of their lif
Slide 42: Cost to Income ratio – Investment Requirements
c. Cost to Income Ratio Section 5: Profitability & Capital Cost to Income ratio – Investment Requirements • At merger, the Bank had a low CASA at 8.68%. Our total deposits & borrowings (excluding money market) were Rs. 1,18,420 crores, of which only Rs. 10,400 crores (8.78%) were retail Deposits and
Slide 43: Launched and scaled up many new products
c. Cost to Income Ratio Section 5: Profitability & Capital Bank has launched and scaled up many new products in the last 2-3 years • The Bank has launched many business as mentioned below in the last five years • Some of businesses are in build out stage, and currently not profitable • While these b
Slide 44: Reduced Cost to Income ratio from 95.1% to 70.5%
c. Cost to Income Ratio Section 5: Profitability & Capital Bank has reduced Cost to Income ratio from 95.1% to 70.5% Core Cost to Income (excluding Trading Gains) Ratio % • During the last five years, Bank had to invest in branches, ATMs, people, technology, cyber security, about 15 products to buil
Slide 45: Cost to Income Ratio to drop over next 3 years
c. Cost to Income Ratio Section 5: Profitability & Capital Cost to Income Ratio to drop meaningfully over next 3 years: segment wise estimates Assets C:I ratio Trend: Retail Liabilities C:I ratio Trend: The cost to income in Assets will come down because of economies of scale. Bank requires to grow
Slide 46: Core Operating Profit (excluding trading gains)
d. Core Pre-provisioning Operating Profit Section 5: Profitability & Capital Core Operating Profit (excluding trading gains) • The core operating profit (excluding trading gains) of the Bank is growing faster at 40% than the overall balance sheet growth of 13%. • Demonstrates the power of incrementa
Slide 47: Core PPOP to Asset improved from 0.76% to 2.47%
d. Core Pre-provisioning Operating Profit Section 5: Profitability & Capital Core PPOP to Asset has improved from 0.76% to 2.47% in 5 years Core Pre-Provisioning Operating Profit (PPOP) as a % of Average Total Assets 2.47% 2.35% 2.25% 2.14% 1.56% (Post-merger) 1.22% 1.12% (Pre-merger standalone Bank
Slide 48: Profitable on sustained basis
e. Profitability and Return Ratios Section 5: Profitability & Capital Bank has turned profitable on sustained basis based on strong Operating Profits and low credit costs Net Profit (Rs. Crore) 2,957 2,437 • The Bank posted 6 quarters of losses consecutively in FY19 and FY20 due to 681 452 low opera
Slide 49: Balance Sheet
f. Financial Statements Section 5: Profitability & Capital Balance Sheet Growth (%) In Rs. Crore Jun-23 Mar-24 Jun-24 (YoY) Shareholders' Funds 26,531 32,161 33,443 26.1% Deposits 1,54,427 2,00,576 2,09,666 35.8% - CASA Deposits 71,765 94,768 97,692 36.1% - Term Deposits 82,662 1,05,808 1,11,974 35.
Slide 50: Quarterly Income Statement
f. Financial Statements Section 5: Profitability & Capital Quarterly Income Statement Growth (%) In Rs. Crore Q1 FY24 Q4 FY24 Q1 FY25 YoY Interest Income 6,868 8,219 8,789 28% Interest Expense 3,123 3,750 4,094 31% Net Interest Income 3,745 4,469 4,695 25% Fee & Other Income 1,341 1,610 1,595 19% Tr
Slide 51: Strong Capital Adequacy Ratio
g. Capital Adequacy Ratio Section 5: Profitability & Capital Strong Capital Adequacy Ratio In Rs. Crore Jun-23 Mar-24 Jun-24 Common Equity 25,630 30,940 32,041^ Tier 2 Capital Funds 6,105 6,367 6,085 Total Capital Funds 31,736 37,307 38,126 Total Risk Weighted Assets 1,87,133 2,31,576 2,40,159 CET-1
Slide 52: Section 6: Digital Capabilities
Section 6: Digital Capabilities
Slide 53: Advanced Mobile Banking App rated 4.9
Section 6: Digital Capabilities Bank successfully rolled out an advanced Mobile Banking App with top rating of 4.9 on Google Play and 4.8 on App Store CREATE FD in 2 CLICKS FIRSTMONEY PL – ETB/NTB #1 BANK APP INVEST in MF / IPO IN INDIA SMART STATEMENT Only Indian bank to feature in RUPAY CC on UPI
Slide 54: Strong growth in business volumes from App
Section 6: Digital Capabilities Strong growth in business volumes from recently launched App Mutual Fund Investments in Mutual Fund (including SIPs) in Q1 FY 25 Increased 425% on YOY Investments basis Personal Loans Personal Loan from mobile app in Q1 FY 25 increased by 175% on YOY basis Pay Abroad
Slide 55: Significant traction on electronic platforms
Section 6: Digital Capabilities Digital Initiatives: Significant traction on electronic platforms Digital Transactions POS Transactions (Q1-FY25) 96% 96% of the overall transactions YoY growth of 80% in volume 80% are digital and 55% in value UPI Transactions (Value) FASTag 41% Growth of ~41% for Q1
Slide 56: Digital initiatives driving efficiency
Section 6: Digital Capabilities Digital initiatives driving efficiency across the Board • Digitisation initiatives are improving efficiency and customer experience in customer service, disbursement, processing, collection, liabilities, and all divisions. • For instance, in the last one year, the num
Slide 57: Wealth Management driving volume growth
Section 6: Digital Capabilities Wealth Management: Driving volume growth empowered by digital capabilities • The Bank has successfully launched Wealth Management • Wealth Management AUM from scratch to Rs. 18,610 crore in the last 5 years after merger • In Q1-FY25, the Wealth Management AUM grew by
Slide 58: Section 7: Credit Rating
Section 7: Credit Rating
Slide 59: Long Term Credit Rating upgraded by CARE, CRISIL and ICRA
Section 7: Credit Rating Bank’s Long Term Credit Rating has been recently upgraded by CARE, CRISIL and ICRA Rating Agency Long Term Credit Rating Month of Rating Review CARE Ratings AA (stable) to AA+ (stable) October’ 23 CRISIL AA (stable) to AA+ (stable) June ‘23 ICRA AA (stable) to AA+ (stable) M
Slide 60: Section 8: Board of Directors
Section 8: Board of Directors
Slide 61: Board of Directors: MD & CEO Profile
Section 8: Board of Directors Board of Directors: MD & CEO Profile Vaidyanathan aspires to create “a world-class Bank, which offers high-quality affordable and ethical banking, for India”. Mr. V. Vaidyanathan took over as the Managing Director and CEO of IDFC FIRST Bank in December 2018 after the me
Slide 62: Board of Directors
Section 8: Board of Directors Board of Directors MR. SANJEEB CHAUDHURI – PART-TIME NON-EXECUTIVE CHAIRPERSON (INDEPENDENT DIRECTOR) Mr. Sanjeeb Chaudhuri is a Board member and Advisor to global organizations across Europe, the US and Asia. He has most recently been Regional Business Head for India a
Slide 63: Board of Directors
Section 8: Board of Directors Board of Directors MR. S GANESH KUMAR - INDEPENDENT DIRECTOR Mr. S Ganesh Kumar was the Executive Director of the Reserve Bank of India. He was with the Reserve Bank of India for more than three decades. His most recent responsibilities included the entire gamut of Paym
Slide 64: Board of Directors
Section 8: Board of Directors Board of Directors DR. JAIMINI BHAGWATI - NON-EXECUTIVE NON INDEPENDENT DIRECTOR Dr. Jaimini Bhagwati is a former IFS officer, economist and foreign policy expert. He received his PhD in Finance from Tufts University, USA. He did his Master's in Physics from St Stephen'
Slide 65: Section 9: Shareholding
Section 9: Shareholding
Slide 66: Shareholding Pattern as of June 30, 2024
Section 9: Shareholding Shareholding Pattern as of June 30, 2024 Scrip Name: IDFC FIRST Bank (BSE: 539437, NSE:IDFCFIRSTB) Other Body Trusts and Clearing Corporate (0.97%) Members (0.01%) President of India Others (0.05%) (3.69%) Total # of shares as of June 30, 2024 708.11 Cr Public (27.35%) Promot
Slide 67: Growth in book value per share
Section 9: Shareholding Growth in book value per share During the last 13 quarters, the BVPS Book Value Per Share reduced during the first few increased by 51% with the increasing years after merger due to credit losses arising from profitability from the core business model legacy corporate and inf
Slide 68: Section 10: Progress on ESG
Section 10: Progress on ESG
Slide 69: Our ESG Priorities Align with Our Corporate Vision
Section 10: Progress on ESG Our ESG Priorities Align with Our Corporate Vision Our Vision: To Build A World-Class Bank in India Guided by Ethics powered by Technology and be a force for Social Good High standards of corporate governance ESG @ IDFC FIRST Bank Creating social impact Dedicated ESG gove
Slide 70: ESG Highlights – Q1 FY25
Section 10: Progress on ESG ESG Highlights – Q1 FY25 21% office and branch One tree being planted for every new Home Loan 02 Women Directors* on Board area is green certified *Both Independent Directors ~55% ESG course made mandatory rural borrowers are women 55% Independent for all employees Direct
Slide 71: Environmental and Awareness Initiatives
Section 10: Progress on ESG Environmental and Awareness Initiatives Green infrastructure EV charging infra for employees Customer awareness EV financing Green buildings EV financing • Five Large offices, including the Head Office successfully certified under • Over 2.10 lakh EV two wheelers financed
Slide 72: Social and Governance initiatives
Section 10: Progress on ESG Social and Governance initiatives Diversity Strong and experienced Board • Accelerating employee diversity through iBelong initiative. • 11 Board Committees; majorly chaired and constituted by Learning & Development Independent Directors. • Over 4.87 lakh learning hours f
Slide 73: ESG Commitments, Ratings and Governance
Section 10: Progress on ESG ESG Commitments, Ratings and Governance ESG Commitments ESG Governance • Annual disclosures published through the Bank’s Integrated Report, aligned Structure with Int’l IR framework, GRI and SASB • Official Participant of United Nations Global Compact (UNGC) Board Level C
Slide 74: Recognitions for ESG Efforts
Section 10: Progress on ESG Recognitions for ESG Efforts Dun & Bradstreet India The European Institute of Directors India Capital Finance International UBS Forums Leading Listed ESG Entity Most ESG Responsible Banking Golden Peacock Award in ESG Outstanding Commitment to ESG Rising Star & Sustainabi
Slide 75: Section 11: Awards and Recognition
Section 11: Awards and Recognition
Slide 76: Awards and Recognition
Section 11: Awards & Recognitions Awards and Recognition Best Corporate Governance 2023 - World Finance India's Leading Private Bank (Mid) – Dun & Bradstreet (BFSI & FinTech 2024) Innovation In Banking - Aegis Graham Bell (14th edition – 2024) Best Digital Bank 2023 - Financial Express India's Best
Slide 77: 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. 76
Slide 78: 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 79: Thank You
Thank You IDFC FIRST Bank
Slide 80: Annexure 1
Annexure 1 • Performance of the Bank against the stated goals • Guidance 2.0 79
Slide 81: Performance against guidance given at merger
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 Q1-FY25 Status (At Merger) CET – 1 Ratio 16.14% >12.5 % 13.34%1 On Track Capital Capital Adequacy (%) 16.51% >13.0 % 15.88%1 On Track 30% (FY24), CASA as a % of Deposits (%
Slide 82: Performance against guidance given at merger
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 Q1-FY25 Status (At Merger) Top 10 borrowers as % of Total Loans & Advances (%) 12.8% < 5% 1.97% Achieved GNPA (%) 1.97% 2.0% - 2.5% 1.90% Achieved Asset Quality NNPA (%) 0.
Slide 83: Guidance 2.0 (FY24 - FY29)
Guidance 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. Custom
Slide 84: Annexure 2
Annexure 2 Breakup of the loans & advances with YoY growth 83
Slide 85: Analysis of Loans & Advances by nature of business
Analysis of Loans & Advances by nature of business (Personal vs Business finance) Gross Loans & Advances (In Rs. Crore) Jun-23 Mar-24 Jun-24 YoY (%) QoQ (%) Retail Finance 97,327 1,19,131 1,25,590 29.0% 5.4% - Home Loan 20,139 22,325 24,658 22.4% 10.4% - Loan Against Property 20,103 24,247 24,729 23
Slide 86: Annexure 3
Annexure 3 Market Opportunity
Slide 87: Market Opportunity (Deposits)
Market Opportunity (Deposits) Total Deposits (June 2024) In Rs. Crore • The Bank has a small share in the overall bank deposits of the country and hence has a significant opportunity for growth. Banking Industry 2,12,85,327 • The Bank has built necessary capabilities to take advantage of this opport
Slide 88: Market Opportunity (Retail, Rural & MSME Loans)
Market Opportunity (Retail, Rural & MSME Loans) Personal credit in India has grown by 15-20% in the last 5 years. Personal Credit to GDP in India is only 19% of GDP which has significant room for growth going forward. (Personal credit refers to credit availed for personal use like home loans, vehicl
Slide 89: Retail, Rural & MSME Loans: Growth Opportunity
Retail, Rural & MSME Loans: Growth Opportunity for IDFC FIRST Bank IDFC FIRST Bank has built the requisite capabilities with continuous innovation going forward for capturing this large opportunity provided by the Indian Banking Credit, especially for the Personal and MSME business segments Simulate
Slide 90: Annexure 4
Annexure 4 Background of IDFC FIRST Bank – Merger of IDFC Bank and Capital FIRST
Slide 91: IDFC FIRST Bank created by merger of IDFC Bank and Capital First
IDFC FIRST Bank was created by merger of IDFC Bank and Capital First • 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 demerger from IDFC Ltd, a premier, successful infrastr
Slide 92: Annexure 5
Annexure 5 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. 91
Slide 93: Capital First: Growth Trajectory
Successful Trajectory of Growth and Profits at Capital First Financial Performance: The Asset Under Management has consistently grown at 5-Year CAGR of 29% 32,623 Asset Under Management (In Rs. Crore) 26,997 19,824 16,041 11,975 9,679 7,510 6,186 2,751 935 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY1
Slide 94: Capital First: Profit After Tax Trend
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 95: Capital First: Cost to Income ratio
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 96: Capital First: Return on Equity improved
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 97: Capital First: Market Capitalization
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 98: Capital First: Stock Price increased 7x
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: Annexure 6
Annexure 6 Proforma Financials before merger (H1-FY19) 98
Slide 100: Pre merger Proforma Financials of IDFC Bank and Capital First
Pre merger - Proforma Financials of IDFC Bank and Capital First – P&L (H1 FY19) Erstwhile IDFC Bank Erstwhile Capital First Proforma Total In Rs. Crore (H1 FY 19) (H1 FY 19) (H1 FY 19) Loans & Advances / 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