Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Investor Presentation (February 2023)
101 slides from Federal Bank Ltd. (india)'s investor presentation, Feb 28, 2023
Slide 1: Secretarial Department cover letter to exchanges
Secretarial Department SD/ F24/324/2022-23 February 28,2023 The Manager The Manager Listing Department Department of Corporate Services The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra-Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Mumbai – 400 051. Floor 25, Da
Slide 2: Analyst Meet, 28 February 2023, Mumbai
ANALYST, 28™4 FEBRUARY 2023 MUMBAI | Bam - YOUR PERFECT BANKING PARTNER
Slide 3: Through the Financial Lens
ANALYST, MEET Through the Financial Lens | Bam YOUR PERFECT BANKING PARTNER
Slide 4: Then and Now
Then and Now Progress from… Then Now (Dec-19 / Q3 FY20) (Dec-22 / Q3 FY23) 1.71 1.21 Advances ( INR Lakh Cr ) All time high Market Share: 1.26% 1.45 L 2.01 Deposits ( INR Lakh Cr ) Crossed Milestone of ₹ 2 Lakh Crore 3.00% 3.49% NIM Highest in 35 quarters | Supported by Higher Margin Lending 69.19%
Slide 5: Consistent Performance through Cycles
Consistent Performance through Cycles FY 2021 FY 2022 FY 2023 (as of Dec’22) FY 2024 & Beyond ENVIRONMENT • 1st wave of COVID • 2nd wave of COVID; faltering • Geopolitical tensions center stage • Deglobalization; trade ECONOMIC • GDP contraction of 6.6% YoY leading Economy • Elevated inflation slowd
Slide 6: Profitability – Building Up Momentum
Profitability – Building Up Momentum Fee Income Net Profit 600 543* 1000 804 441 704 412 540 800 601 400 357 453 311 600 522 363 255 373 441 342 401 404 367 541 171 288 400 200 478 460 CAGR 200 301 308 CAGR 20.41 % 22.16 % 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 7: Business – Remix Composition for Orbit Shift
Business – Remix Composition for Orbit Shift Total Deposits Composition CASA 2,01,408 67,540 68,967 1,72,644 1,81,701 64,343 55,740 58,959 1,52,290 88% 49,616 67,121 68,873 1,34,954 92% 45,484 88% 58,370 62,191 87% 52,786 88% 46,450 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3
Slide 8: Deriving Efficiency from Footprint and Digital Partnerships
Deriving Efficiency from Footprint and Digital Partnerships Enhanced Distribution Channels with Digital as Multiplier keeping Customer at the Core Then Now Cost to Income ratio Branches 1255 1338 59.89% 52.68% BC led distribution Branches 48.88% 48.84% ATMs/ Recyclers 1965 1907 Customers @ RMs Core
Slide 9: RoA Expansion
RoA Expansion Key levers for RoA Expansion Consistent growth in Increase fee income and cross- Maintain Pristine Asset Quality advances and deposits selling by leveraging data with Prudent Risk Framework Enhance yields with focus on Improve efficiency with Lite high margin lending segments Branch He
Slide 10: Analytics as Backbone of Decisions
Analytics as Backbone of Decisions Empowering well-informed decisions across levels and functions, fuelling the MAB drive Customer Relationship Asset Delinquency Process Fraud Risk Engagement Management Underwriting Management Optimisation • Acquisition • Micro-Segmentation • Algorithmic • Pre/Early
Slide 11: Vision Mission
A 900 Member Team Vision Mission “ To provide superior customer service at an “ To become the trusted and preferred Our Presence Our Focus Areas optimal cost with risk duly mitigated ” operational partner for the bank ” Governance & Risk Mitigation Centralization & Standardization Operational Excell
Slide 12: Levers For Growth
Levers For Growth CX CRM Instant KCC Customer Customs, GST Payments Delight Income Tax Payments Personalised Offers through Analytics Branch Expansion Credit Card BC Partners Personal Loan Fintech Partnerships Multiplying High Margin MSME Funding RM Network Reach Business CV / CE Alternate Channels
Slide 13: Retail Banking
a ANALYST, Retail Banking | Bam YOUR PERFECT BANKING PARTNER
Slide 14: Retail Banking has made Considerable Progress since December 2019
Retail Banking has made Considerable Progress since December, 2019 Then Now (Dec-19 / Q3 FY20) (Dec-22 / Q3 FY23) RETAIL DEPOSITS 1,31,530 1,81,714 CAGR 11.38 % COST OF DEPOSIT 5.84 4.57 CASA RATIO 30.81% 34.24% RETAIL ASSETS 36,551 53,936 CAGR 13.85 % MARKET SHARE OF DEPOSITS 1.09 % 1.12 % MARKET S
Slide 15: Rishta Aap Se Hai
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Slide 16: Our 4-D Mantra
Our 4-D Mantra Depth Data Of Relationship Digitization Distribution 14
Slide 17: Data & Analytics - Lifeblood of Retail Banking
Data & Analytics - Lifeblood of Retail Banking Since our last meeting in February 2020 96% Growth in Credit Card & Personal Loans 60% Increase in Debit Card Spends 10 x Improvement in Response Rates to Insurance Campaigns 33% Enhancement in Collection Capabilities 15 Data as of Dec 2022
Slide 18: Digitization – At The Fore Of All That We Do
Digitization – At The Fore Of All That We Do ORIGINATION SERVICING 5+ 1K+ 1K+ 96% 95% Savings Accounts Transactions per opened every minute Second of SB Accounts of transactions Opened Digitally Serviced Digitally 14K+ 100% 1K+ 100+ 1.5 Lakh queries 100% 90% answered by Feddy Mobile Banking Digital
Slide 19: Distribution - A Multi Pronged Approach
Distribution - A Multi Pronged Approach Way Forward -2025 100 Branches/year 2.5x RMs more DSAs Now Co Lending FinTech's BCs Branches DSAs RMs Fintech Partnerships 1338 & many more…. BRANCHES 1907 ATM/ RECYCLERS As on 27th Feb 2023 17
Slide 20: Depth Of Relationship – Leveraging Technology For The Human Touch
Depth Of Relationship – Leveraging Technology For The Human Touch FedHive Responsys CX Sales Marketing Maximyser Launch Cross-Channel Sales Planning DMP & Infinity campaigns with personalized content. Sales Partner CX Service Management Manage Leads Effectively & Incentive Content Compensation Manag
Slide 21: Retail Assets & Cards
ANALYST, Retail Assets & Cards | Bam 19 YOUR PERFECT BANKING PARTNER
Slide 22: Pivoting Towards Higher Margin Products
Pivoting Towards Higher Margin Products 3% Leverage on the successes of Secured Assets to grow Credit Cards & PL FY-19 97% Leverage analytics – in house & in Deepen Enhance Adopt association with penetration in 7% distribution a digital first Credit Mortgage & through approach in Information Auto Lo
Slide 23: Home Loans – Gaining market share in chosen geographies
Home Loans – Gaining market share in chosen geographies Expand sales capacity Market Share through FedServ Leverage analytics to • 0.92% share in overall Home offer preapproved top India loan market Enhance customer up loans, delivered • 5.50% share among Pvt banks digitally; relentless experience t
Slide 24: Car Loans – Become The Bank Of Choice For Our Chosen Segments
Car Loans – Become The Bank Of Choice For Our Chosen Segments Market Share Key Strategies 0.97% Enhance reach through digital on- boarding Focus on pre- owned vehicle and 0.90% 2-wheeler loan Deliver best in class Turnaround Time through 0.84% Straight Through Processing Enter new FY-20 FY-21 FY-22
Slide 25: Personal Loans – Building on the current momentum
Personal Loans – Building on the current momentum YOY Portfolio (Figure in Rs Cr) Digital on- 1,957 boarding for 1,809 1,751 existing & new to 1,492 Bank customers 773 Account Analytics Aggregator/data driving pre- from CICs to approved expand digital offers FY19 FY20 FY21 FY22 FY23 (Dec) offers Dou
Slide 26: Personal Loans – A Digital First Approach For New To Bank Customers
Personal Loans – A Digital First Approach For New To Bank Customers Instant cash Personal Readily available Tech Instant on-boarding till Details and Address Details stack - easy integrated disbursal for a new E-KYC Check journeys with partners customer Customer Applies through website Location Inst
Slide 27: Credit Card – A strong offering to customers
Credit Card – A strong offering to customers New Chapter Added in May 2021 Story since then 0.60% 0.61% 0.72% For Affluent Card In Force O/S Balance Card Spends customers (CIF) Jan 2023 data For Value Seeking Families For Lifestyle Oriented Early Adopters 5+ 1250 100% Bank’s First Co-brand Credit Ca
Slide 28: Credit Cards – Be Among The Top 7 Credit Card Players by 2024
Credit Cards – Be Among The Top 7 Credit Card Players by 2024 BRE Apply via Mobile Basic E-KYC Check ✓ Bureau Check website Number Customer Info ✓ Location Analytics - verified via Validation Intelligence Check model based OTP decisioning ✓ Fraud Check FedMobile Instant Virtual Credit Card upon issu
Slide 29: Digital Initiatives
27 ANALYST, Digital Initiatives | Bam YOUR PERFECT BANKING PARTNER
Slide 30: Enhancing and Enriching Digital Banking Through Continuous Innovation
Enhancing and Enriching Digital Banking Through Continuous Innovation Easy access to credit A true conversational for farmers through banking experience Digital Kisan Credit through Feddy Cards First bank to enable Digital First Credit Cross Border Bill Card in 3 clicks Payments Mobile as POS multi-
Slide 31: Delivering Best In Class Customer Experience
Delivering Best In Class Customer Experience CareerBook - Comprehensive Digital Solution for Educational Institutions (5 Lakh students onboarded) Digital Banking Unit & FedeStudio for humanized digital banking First Bank to offer multiple channels for Online Tax Payments Digital access to Outward a
Slide 32: Strong Progress On All Key Metrics
Strong Progress On All Key Metrics Digital onboarding - Savings Total Digital Share ( in % ) FY19 FY23 (Till December) 11% 4% 89% 96% FY19 FY20 FY21 FY22 FY23 TILL Branch Digital DEC Branch Digital Digital lending by numbers Mobile Banking- Active Users in Lakhs FY19 FY23 (Till December) 56% 44% 37%
Slide 33: Digital At The Fore, Human At The Core
Digital At The Fore, Human At The Core Insights & alerts Cutting edge features IOT Voice Biometrics Live agent Conversation Capture and Pay Banking Zero UI Proactive Banking True assistant Advisory Services Comprehensive Revamped Personal Enhanced MSME Payment beyond Chat banking Location based Hype
Slide 34: Relentless Focus On The Basics Of Digitization
Relentless Focus On The Basics Of Digitization GETTING ABCDE RIGHT EVERY TIME Availability A B C D E Availability Business Customer Digital Anyone Employee Employee Experience Innovation Experience Business Anywhere Experience Enhancing and Anytime Winning the Pivot towards enriching Ease the life o
Slide 35: Fintech Partnerships
ANALYST, Fintech Partnerships | Bam 33 YOUR PERFECT BANKING PARTNER
Slide 36: A Brief Look At Our Fintech Landscape
A Brief Look At Our Fintech Landscape 35 34
Slide 37: Our Ethos – Collaboration With Fintechs
Our Ethos – Collaboration With Fintechs Capabilities Enablers FinTechs served through a dedicated Business Unit Comprehensive, open & transparent Partner on-boarding strategy Best in class Technology Stack (400+ APIs) Specialized skills and capabilities for risk management (regulatory compliance, op
Slide 38: Expansion Of Distribution Enabled Through Fintechs
Expansion Of Distribution Enabled Through Fintechs Customer Geographical Customer Geographical distribution- Organic Share of FinTech Distribution- Organic + Fintech (YTD December, 2022) PL disbursements Credit Cards Issued 36% 25% 64% 75% SB Incremental Growth TD Incremental Growth 19% 10% Organic
Slide 39: Material contribution to Credit Card & Personal Loan growth
Material contribution to Credit Card & Personal Loan growth Credit Cards Issued 167.4x 01 Driving higher ROA through high yield 120.2x products 80.4x 39.4x Generating opportunities 02 7.7x for cross-sell x Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 03 Primarily targeting New to Bank, Existing to Pers
Slide 40: Attracting a different set of customers through unique propositions
Attracting a different set of customers through unique propositions Number of Accounts 19.5x 16.7x Target digitally native customers; 13.7x primarily salaried millennials 9.2x 3.7x x Enhance revenue through cross sell o Forex o Credit Cards Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 o Personal Loans
Slide 41: Retail Deposits
39 ANALYST, Retail Deposits | Bam YOUR PERFECT BANKING PARTNER
Slide 42: Retail Deposits have made significant progress in the last 3 years
Retail Deposits have made significant progress in the last 3 years on key metrics RETAIL DEPOSITS CASA CASA RATIO 1,81,714 68,967 34.24% 1,31,530 CAGR 45,484 CAGR 31.46% 11.37 % 14.88 % Retail deposits - % to total Cost of Deposits Market share of deposits 88 % 4.57 % 1.12 % 88% 5.84 % 1.09 % Rs in
Slide 43: Granular Retail Deposits Remains Our Strength
Deposits Granular Retail Deposits Remains Our Strength % of Retail Deposits Expansion of 2,01,408 distribution - Branch, 1,72,644 1,81,701 Partnerships, BC 1,52,290 88% 1,34,954 92% 88% 87% 88% Bespoke products for chosen segments - Strong & consistent FY19 FY20 FY21 FY22 9M FY23 Celesta, Imperio, S
Slide 44: Debit Card
Debit Card Best in class debit card propositions leading to sticky balances Debit spends YoY growth rate 5th Largest Private 5% 3.00% Sector Bank on 4.9% Debit Cards Share of total -5% Spends(Dec-22) spend -15% -12.75% -15.00% -25% -17.00% Customer active on debit cards maintain an Federal Bank Top
Slide 45: NR Deposits
NR Deposits Advantaged position in NR Deposits will continue Federal Bank Vs Industry Growth Trend 18% Enhance distribution through innovative partnerships 6.92% (eg Tie up with Mashreq Bank) 15% 12% Market Share 10% 9% 6% Leverage digital capabilities to deliver a delightful 6% customer experience
Slide 46: HNI & Priority Banking
HNI & Priority Banking Well positioned to deliver a strong HNI proposition Premium premium Segment* segment* Share share in Retail in retail Savings savings** + Portfolio portfolio Premium Non - Premium Customer Lifecycle Management – Welcome Offers, Periodic Offers, Newsletters, Webinars 41% 38% 50
Slide 47: Fee Income
45 ANALYST, Fee Income | Bam YOUR PERFECT BANKING PARTNER
Slide 48: Bancassurance, Para Banking & Wealth Management Services
Bancassurance, Para Banking & Wealth Management Services Leveraging key pillars for steady growth in fee Income Fee Income (INR Cr) Pillars of Fee Income Business 34 42 1 Strong Partnerships 25 31 35 17 22 36 2 Opportunity in the Customer Base 24 27 20 21 12 8 12 3 Digital Capabilities FY20 FY21 FY2
Slide 49: Bancassurance - Leveraging the potential through focused interventions
Bancassurance - Leveraging the potential through focused interventions Product proposition • Co-creating best in class products ; always ahead of market offerings • Bespoke solutions for Bank’s customer segments Bancassurance fee income distribution • Cross functional product offerings ( INR Cr) Tec
Slide 50: Wealth Management
Wealth Management Relentlessly focus on building sizable revenue through a combination of Digital, Phygital & Physical models GROWTH OF WMS CLIENT BASE 77,675 Product 131% Tailor made solutions for niche segments - Fractionizing investment to larger 33,569 audience. E.g. Life Settlement, Venture Cap
Slide 51: Distribution
49 ANALYST, Distribution | Bam YOUR PERFECT BANKING PARTNER
Slide 52: A Multi Pronged Approach To Distribution
A Multi Pronged Approach To Distribution Branch Expansion BC Model Expansion Lite branch across Collaborate with reputed multiple chosen 1001 ~3004 partners for penetrating markets deeper Rurban geographies RM Capacity Build FINTECH Relationship Managers ~6502 ~75 5 Scale up FinTechs with for specia
Slide 53: Co-existence of Branches and Business Correspondents
Co-existence of Branches and Business Correspondents Selective Expansion through BCs- Benefits Our Network Semi FY Metro Urban Rural Total Higher reach Urban and visibility Mar-20 203 224 680 156 1263 Mar-21 206 226 684 156 1272 Mar-22 207 232 686 157 1282 Scalable Fixed Garner low- cost Deposits De
Slide 54: Magnify reach to customers through alternate channels
Magnify reach to customers through alternate channels Sales force Co- expansion Telesales lending through FedServ • Multi product distribution capabilities • Leverage partner distribution • Enhance reach to new geographies (eg Credit Cards, Personal Loans, capabilities across product lines insurance
Slide 55: RM Capacity Building & BaaP (Bus as a Platform)
RM Capacity Building & BaaP (Bus as a Platform) Vertical Mar-19 Dec-22 Madurai Bus Branch & Retail 103 108 Launched Lucknow Assets Agri 44 112 BUB -- 46 Expanding to more locations in the coming years Total 147 266 Take the branch to the customer Vertical Mar-20 Dec-22 Boost branch presence in areas
Slide 56: Federal Bank
> [ FEDERAL BANK YOUR PERFECT BANKING PARTNER
Slide 57: Micro – Agri - Rural – Gold (MARG)
Micro – Agri - Rural – Gold (MARG) 55
Slide 58: MARG Overview
Overview 8.6 Lakh 16 Lakh Mar’ 19 Dec’22 Customer Base 3x Growth 45 Lakh Mar’26 Doubling Portfolio Outlook - FY 2026 MFI 2x Size 24.20% 26873 CAGR 23820 21932 to be the new 15239 13030 driver for ROA growth FY 19 FY 20 FY 21 FY 22 Dec'22 Calibrated Risk Digital Models “90% of the portfolio is PSL wi
Slide 59: Digital Foray
Digital Foray Digital 4.0 L 1.6 L 1.3 L 0.07 L 0.007 L Human at the Accounts Accounts Accounts Accounts Accounts at the Fore 10,000 Cr 620 Cr 530 Cr 220 Cr 7 Cr Core Disbursed Disbursed Disbursed Disbursed Disbursed Dec’22 Mar’26 150cr 250cr 3cr 600cr 1250cr 50cr Digital 90% 10% 3% 25% 20% Lending 1
Slide 60: Unlocking the MFI Potential
Unlocking the MFI Potential 3 Lakh Nurturing Leveraging Women Customers Rishtas Analytics beyond branches for new market 12 Lakh opportunities Lives Impacted 77% CAGR MFI Portfolio 1055 14 2 190 26 8 35 FY 19 Dec'22 2 26 2019 2022 “FEDmi” – Extending credit 11 States 35 32 2 State where credit is du
Slide 61: MFI : Presence to Prominence
MFI : Presence to Prominence Opportunities Aspirations Pan India Tailor made Presence New tools & Product Geographies, systems to Customization Impacting Markets and cater multiple 10 million lives Partners products Geographical 11.61% Footprints MFI Market CAGR ₹450,000 Distributed Risk & Capital E
Slide 62: Gold : Doubling The Portfolio
Gold : Doubling The Portfolio Branches Online Channels Distributors 25% growth in BYOM for Gold 2.2x Portfolio network Loans Fintech Contact Centre New customers Lead 30.05% 19,520 & geographies Generation Cr CAGR To be the Co-lending Sales Team 8,874 Enhances the Lead Largest Cr reach Conversion Pr
Slide 63: Agriculture : Digital – The Way Forward
Agriculture : Digital – The Way Forward Digital & Wider Customer Agile Platform for Reduced TATs Seamless Outreach different product sets 2 Lakh Redefining S&M farmer Business Build by in 5 years with an leveraging BC credit delivery with AUM of 2000 Cr. Increased Small and Marginal model. Technolog
Slide 64: Business Banking
62 ANALYST, Business Banking | Bam YOUR PERFECT BANKING PARTNER
Slide 65: Leveraging the extensive opportunity through diverse initiatives
Leveraging the extensive opportunity through diverse initiatives ₹ 14238 Cr 80% 29K + ₹ 75L Business PSL Lending Customers Avg Ticket size The Transition The Opportunity Lorem ipsum dolor sit amet, Dec 2022 consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna MSME
Slide 66: The Key Focus Areas
The 5 Key Focus Areas Grow where India Grows, at 2X • Deeper penetration into new geographies • Ubiquitous partnerships and distribution • Exclusive tie-ups with sector leaders Niche products and Impeccable delivery • Technology driven underwriting • Bespoke products for niche segments • Provide wow
Slide 67: Grow where India Grows, at 2X
Grow where India Grows, at 2X Federal vs Industry – 4Y CAGR 12.88% 7.69% Future Focus Nagpur Food products, fabricated metal products, textiles. Federal Industry CAGR from Mar-19 to Mar -23 (Dec’22 annualized) for SME loan < 10Cr Indore (Source : CIBIL) Repairing and servicing, Grow at 2X Industry 2
Slide 68: Everything Everywhere All at Once
Everything Everywhere All at Once Instant Relationship Transact Instant Super Building Digitally Top Ups App • Paperless on-boarding and • Fed-e-Biz, Vayana for SCF, • Pre-approved loans offered • Customer portal with a range of document execution Corporate Fed mobile and fulfilled digitally service
Slide 69: MORE per customer
The Revenue Multipliers PSL as s source of Income MORE per customer Higher Self Funding Ratio, focusing on liability business Products Revenue Relationship Focus on Forex and Trade Finance Business Pre Approved CX usage, Higher revenue Loans, Adhocs Referrals,76% Short Term Unsecured Loans through R
Slide 70: Wholesale Banking
ANALYST, Wholesale Banking | Bam 68 YOUR PERFECT BANKING PARTNER
Slide 71: Wholesale Banking – Landscape
Wholesale Banking – Landscape Corporate & Dec-19 Dec-22 Trade Institutional (Product & Sales) 20% 21% Banking (CIB) Business Mix 79% 80% Transaction Commercial Banking (COB) Relationship (Digital Business CIB COB CIB COB Solution) led Franchise Business Mix Government Treasury 64 63 Business (Produc
Slide 72: Wholesale Banking – Raising Benchmarks
Wholesale Banking – Raising Benchmarks Total Asset (Rs/Cr) Growth 83,011 70,263 Self Funding 60,480 62,941 63,990 24%* 26.2% 26.0% 24.5% 10% 4% 19.6% 2% 16.5% Mar-19 Mar-20 Mar-21 Mar-22 Dec-22 Mar-19 Mar-20 Mar-21 Mar-22 Dec-22 Wholesale – Fee to Avg Asset GNPA Movement 54 bps* 50 bps 2.8% 47 bps 4
Slide 73: Wholesale Banking - Feeders
Wholesale Banking - Feeders • Supply Chain – Dealer/ Vendor/Factoring/ TREDS • Salary Empanelment – Deepening & Widening • Trade, Treasury & Transaction Banking Products Cross Sell • Wealth management & Priority Banking • Statutory Payments – CBDT, Customs & GST • Debt & Equity Capital Market - Equi
Slide 74: Growth Drivers
Growth Drivers Focused Initiatives Target Initiatives Supply Chain Finance Digital Lending Capital Market Sectoral Focus Fintech & Start up Co-Lending/ Partnerships Correspondent Banking Future Initiatives MNC Vertical 72
Slide 75: Supply Chain Finance - Huge Opportunity & Way Forward
Supply Chain Finance - Huge Opportunity & Way Forward Gaining Market size Profitable Business • Yield uptick - 1.02% SCF is poised for strong growth in Indian Market in next 3-5 years (~28%) • PSL Book – 50% + Fed • Entry strategy in large corporates SCF Book SCF Book % of CIB Book eSCF • Retail con
Slide 76: Digital Solutions – Embracing DFHC mantra
Digital Solutions – Embracing DFHC mantra ! Payables Management Receivables Management • Digital transactions has improved from 72% in • Best-in-class digital collection solutions for all FY19 to 88% currently. industry sectors • Managing payouts of ~ Rs. 20,000 Crores just • eNACH collection of ~Rs
Slide 77: Government Business
ANALYST, Government Business | Bam 75 YOUR PERFECT BANKING PARTNER
Slide 78: Perfect Tax Partner
Perfect Tax Partner August 04, 2022 76
Slide 79: Pivoted to India
Pivoted to India Focus Areas Live Projects 1st Bank to offer UPI, Debit & Income Tax Collection CC facility for Tax Payment Central Institution State Government & TASC Government Accounts 1st Bank to complete testing GST & Customs Collection for new Customs portal CASA Growth 60% * Amongst 4 Pvt Sec
Slide 80: E-Governance Facilitator
E-Governance Facilitator Corporation Tax Customs & Excise 9.2+ Lac Cr 5.7 Lac Cr Govt Flows Income Tax GST Bharatkosh 9+ Lac Cr 14.96+ Lac Cr 1.8 Lac Cr Govt Schemes Centrally Sponsored Central Sector Schemes (SNA) Schemes (CNA) 4.7+ Lac Cr 14.6+ Lac Cr Source: PRS Legislative Research; Union Budget
Slide 81: Building Sector Expertise Capabilities
Building Sector Expertise Capabilities Democratization Major Central Govt Schemes BE - (2023-24) Salary Schemes - Government Scheme Name Rs. In Crores Employees & Defence Personnel MGNREGP 60,000 Small Savings Schemes – NSC, PPF, PM Awas Yojna 79,590 KVP, SCSS, Sukanya Samriddhi Yojana Jal Jeevan Mi
Slide 82: Commercial Vehicles / Construction Equipment
Commercial Vehicles / Construction Equipment 80
Slide 83: Capturing Opportunities
Capturing Opportunities Finance Opportunity - Rs. 75k Crs Industry AUM Growth – BUSES 14% FY23 (E) MHCV 122% SLCV CE 31% 27% 8% CV Sales – *Unit Sales FY23 (E) YoY Growth 9.40L Unit FY23 (E) 183% AUM Growth Favorable Ecosystem GOVT SPENDING - Infra focused 60% Roads, Construction, Mining etc 54% 40%
Slide 84: Key Highlights
Key Highlights Asset Book (Rs./Crs) Total Disbursement (Rs./Crs) 1841 929 1275 671 912 60%* 463 407 85%* 591 40% 189 45% 289 54% 14% 104% 115% Mar-19 Mar-20 Mar-21 Mar-22 Dec-22 Mar-19 Mar-20 Mar-21 Mar-22 Dec-22 *Annualised Granular Book Tie up – All PSL NTB : ETB ATS< Rs.25 Major OEMs 80% + 60:40
Slide 85: Our Approach
Our Approach Experienced Team 40 RMs in 29 locations. Doubling Manpower in FY24 Leveraging Branch Network 1 684 Branches activated. Pan India Presence 1 85% activation in 2 Yrs North & East rolled out in FY23 3 4 Expanding Product Offerings Leveraging Supply Chain Finance UCV/ UCE/ BT/ TA Retail con
Slide 86: Treasury
84 ANALYST, Treasury | Bam YOUR PERFECT BANKING PARTNER
Slide 87: Defining Our Playground
Defining Our Playground Risk Gain on Fx transactions/Total Income Return Balance 6.00% High Volume 4.00% Learning 2.00% 0.00% FY19 FY20 FY21 FY22 Q3FY23 Technology Private Bank Federal Bank Forex Business seeing systematic growth.. Profit from sale of Investments/ Total Income 10.00% 120% 8.00% 110%
Slide 88: Playing To Our Strengths
Playing To Our Strengths Increased Merchant Volume 190% Wider Client base 450% 140% Enhanced Customer 250% engagement.. 90% 50% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 BUB CB CIB Hedging Flows Forex Trading Higher… 600% .. And higher Domestic Trading 180% ..and Trading Volume 400% 100% too continues
Slide 89: Journey FY20-FY23
Journey FY20-FY23 Launched 16% volume Overall Revenue increased from 7.5% to 19% Fed-e-Connect through Platform Derivatives to Client Doubled FX Revenue grown by 100% Products New Hedging Volume up 140% Activities Revenue up 80% …and will see many more .. Will continue to be Prominent ALGO Trading A
Slide 90: Analyst Meet
88 ANALYST, | Bam YOUR PERFECT BANKING PARTNER
Slide 91: ESG Snapshot
ESG Snapshot Investor Recognition Risk Integration 1st Green Equity Investment in Asia by Board approved Risk Appetite statement for World Bank Group- IFC Climate Risk & Policy on ESMS for lending ESG Ranking Public Commitments Ranked in top quartile for S & G aspects- Coal phaseout policy by 2030,
Slide 92: ESG Performance
ESG Performance Core Business Responsible, Progressive & Own Operations ✓ Integrating ESMS into all lending activities Sustainable ✓ Strategies guided by ESG Policy ✓ Go Digital to save millions of paper ✓ Coal phase-out policy: Target <1.75% by Dec25; 0% by Dec30, Present -1.06% ✓ Solar power capac
Slide 93: Client Business Sustainability
Client Business Sustainability Sectoral Policies Risk Management Client Engagement ❑ No fresh exposure to Climate Risk Appetite statement • o IAAS- Innovation as a • Thermal power plants (new/ expansion) Integrating ESMS across credit cycle • service • Coal mines (new/ expansion) Pre-sanction E&S Du
Slide 94: Operating Responsibly
Operating Responsibly Environment Employees Society Awarded consecutively for the Third Year Speak for India Ek se Shresta Solar Power Generated Empowering Youth Give wings to 159000 KWh State of Art Training underprivileged Youth facility of the Bank Federal Bank Hormis Memorial Energy Consumption
Slide 95: Corporate Governance
Corporate Governance 11 72% 18% 4.49 Strong & Diverse Board Total Board Members Independent Directors Women on Board Average years on Board ➢ Strong Policies ➢ Public Commitments ➢ Code of Ethics and Commitments ➢ Transparent Disclosures ➢ ESG monitoring by Board level RMC ➢ ESG KPI for all senior e
Slide 96: Analytics
94 ANALYST, Analytics | Bam YOUR PERFECT BANKING PARTNER
Slide 97: Analytics As Backbone Of Decisions
Analytics As Backbone Of Decisions Empowering well-informed decisions across levels and functions, fuelling the MAB drive Customer Relationship Asset Delinquency Process Fraud Risk Engagement Management Underwriting Management Optimisation Micro-Segmentation Anomaly Detection Acquisition Optimisatio
Slide 98: Data & Analytics Ecosystem
Data & Analytics Ecosystem Data Stack Analytics Stack MarTech Stack Customer Profile Digital Channels Bank Customer Data Transactions Business Data ▪ Worthiness Acumen Science ▪ Propensity Interactions ▪ Intent SMS/Email/Social CRM / Derived Behaviors Personas Branches External Customer Data Credit
Slide 99: C's CoE
Accelerated Journey Data From Analysis To Advanced ML/AI Augmented Analytics Analytics Mantra C’s RIGHT Capabilities CoE Fraud Risk Management Competencies Calibrations Credit Risk Enhanced Collaborations Management Horizons ADB for MAB Product & Operational Model Pricing Excellence Governance * ADB
Slide 100: Risk
Granular Customer Focus Information Streams Micro-Segmentation Discreet Customer View Profiles Homogenous within Heterogenous outside Customer Relationship Risk Transaction Alternate Digital Spend Life Stage Interaction NBA / NBO Universe ▪ Recommendations ▪ Offers Index & Micro Scores ▪ Propensity
Slide 101: Thank You
ANALYST, Thank You ile FEDERAL BANK [im Yo!
The Federal Bank — Investor Presentation (February 2023) on 6ix