Fedbank Financial Services Ltd. · NSE:FEDFINA
Fedbank Financial Services — Q4 FY2024 Earnings Presentation
43 slides from Fedbank Financial Services's earnings presentation, Apr 29, 2024
Slide 1: Investor meet presentation cover letter to exchanges
Secretarial Department April 29, 2024 Ref. FEDFINA/ CS/ 97/ 2024-25 To, To, National Stock Exchange of India Ltd., BSE Limited, Listing Department The Corporate Relationship Dept. Exchange Plaza, C-1, Block G, Rotunda Building, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Mumbai – 40
Slide 2: Fedbank Financial Services Investor Presentation FY24 / Q4 24
FEDBANK FINANCIAL SERVICES INVESTOR PRESENTATION EMPOWERING EMERGING INDIA WITH EASY ACCESS TO LOANS FY 24 / Q4 24
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (‘Presentation”), which have been prepared by Fedbank Financial Services Limited or Fedfina (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subs
Slide 4: IPO and Listing Ceremony
IPO and Listing Ceremony Listing Date: 30th November, 2023 Stock Exchanges: NSE & BSE Total IPO Size: ₹10.9 bn Primary Size: ₹6.0 bn Secondary Size: ₹4.9 bn Secondary Pre-IPO Size: ₹3.3 bn Only listed NBFC of a listed private bank 3
Slide 5: Who we are, Our Franchise, Financial Performance
Who we are Our Franchise Financial Performance Risk Management Treasury & Funding
Slide 6: FY24 Result Summary
FY24 Result Summary YoY ₹ 122 bn ₹ 136 bn ₹ 2,447 mn ₹22,608 mn 85% AUM Disbursements Profit After Tax Shareholder’s Fund Secured AUM 34% 26% 36 % 67 % 106 bps 621 18 ₹ 82 bn 23.5% 4,298 Branches States and UTs Borrowings1 CRAR Employees 46 2 15% 552 bps 20% 1.7% 1.3% 2.4% 13.5% 0.7% GNPA NNPA RoA R
Slide 7: Q4FY24 Result Summary
Q4FY24 Result Summary YoY QoQ ₹ 122 bn ₹ 43 bn ₹ 677 mn ₹ 22,608 mn 85% AUM Disbursements Profit After Tax Shareholder’s Fund Secured AUM 34% 14% 35% 30% 73 % 3% 67 % 4% 106 bps 56 bps 621 18 ₹ 82 bn 23.5% 4,298 Branches States and UTs Borrowings1 CRAR Employees 46 12 2 1 15% 3% 552 bps -233 bps 20%
Slide 8: Executive Summary
Executive Summary FY 24 / Q4 24 saw our AUM touching ₹1,21,919 mn, up 14% QoQ and 34% YoY. Our AUM growth was driven on the back of disbursals of ₹43,361 mn in Q4 FY24, up 30% QoQ. FY24 disbursals stood at ₹1,35,787 mn, up 26% YoY. Gold loans registered an AUM growth of 17% QoQ to ₹39,694 mn in
Slide 9: Who we are
Who we are Our Franchise Financial Performance Risk Management Treasury & Funding
Slide 10: About Fedfina
About Fedfina We are a majority subsidiary of the Federal Bank Limited, catering to the Product Suite emerging self-employed segment in India. Our parentage provides us with unfettered access to debt and equity. Our vision is to “Empower Emerging India with Easy Access to Loans”. Armed with the
Slide 11: Our Board of Directors
Our Board of Directors Independent Directors Executive Director Non-Executive and/or Nominee Directors Balakrishnan Krishnamurthy Anil Kothuri Shyam Srinivasan Chairman & MD & CEO Non-Executive Director Independent Director Ashutosh Khajuria Gauri Shah Non-Executive Independent Director Nominee Dire
Slide 12: Experienced Management Team
Experienced Management Team Anil Kothuri MD & CEO C.V. Ganesh Siddharth K Shardul Kadam Anila Rajneesh Chief Financial Chief Operating Chief Risk Chief Human Officer Officer Officer Resource Officer Vikas Srivastava K Sureshkumar Ramchandar R Jagadeesh Rao CBO – Mortgage CBO – Mortgage CBO – CBO - G
Slide 13: Our Growth Journey
Our Growth Journey Delivery: FY23 onwards.. • AUM: ₹122 bn (FY24) Scale-up : FY20 – FY22 • Branches: 621 (FY24) • Employees: 4,298 (FY24) • AUM: ₹62 bn (FY22) Initial Public • Branches: 516 (FY22) 122 Foundation : FY16 – FY19 Offering of ₹10.9 • Employees: 2,855 (FY22) Bn Credit Rating • AUM: ₹20 bn
Slide 14: Transformational Journey
Transformational Journey FY19 FY24 Operational Parameters No. of Branches 149 4.2x 621 No. of Employees 964 4.5x 4,298 Disbursement (₹ mn) 19,686 6.9x 1,35,787 Disbursement per Branch p.a. (₹ mn) 132 1.7x 219 Disbursement per Employee p.a. (₹ mn) 20 1.6x 32 Financial Parameters (₹ mn) Asset Under Ma
Slide 15: Our Historical Performance
Our Historical Performance Particulars (in ₹Mn) FY19 FY20 FY21 FY22 FY23 FY24 CAGR Operational Information Branches (#) 149 303 359 516 575 621 Disbursements 19,686 43,795 58,937 74,698 1,07,487 1,35,787 AUM 20,193 38,382 48,624 61,872 90,696 1,21,919 43% Employees (#) 964 1,890 2,125 2,855 3,570 4,
Slide 16: Our Vision & Values
Our Vision & Values Vision Empower Emerging India with Easy Access to Loans Values Execution Excellence People Focus Integrity Customer Centric Clear Objectives Empowerment Transparency Customer Goals Resource Optimization Development Opportunities Accountability Clear Communication
Slide 17: Opportunity and our Strengths
Opportunity and our Strengths Opportunity* Core Strengths MSME Credit Addressable Market Pedigree Phygital Risk People Management Model ₹25 Tn ₹92 Tn credit gap Access to low Branches Great Established cost coupled with Place to Work Risk Culture borrowing digital Credit Gap Formal Sector distributi
Slide 18: Our Product Suite
Our Product Suite Secured Against Collateral Mortgage Loans Gold Loan Business Loan AUM (₹Mn) 62,179 39,694 18,255 (% of total) (51.0%) (32.6%) (15.0%) Avg. Ticket Size 2.2 0.1 2.4 (₹ Mn) Disbursement 10,660 28,486 4,215 (INR Mn) & (Origination Yield) (14.2%) (14.8%) (16.9%) Average LTV 54.1% 71.0%
Slide 19: Our Mortgage Business
Our Mortgage Business Mortgage Loans Small Ticket LAP and HL Medium Ticket LAP AUM (₹Mn) 31,726 30,453 (% of total) (26.0%) (25.0%) Avg. Ticket Size 1.3 6.7 (₹ Mn) Disbursement 5,311 5,349 (INR Mn) & (Origination Yield) (16.1%) (12.3%) Average LTV 53.1% 55.0% Underwriting Assessed Income Income Base
Slide 20: Our Underwriting Approach
Our Underwriting Approach Category Small Ticket LAP Medium Ticket LAP Business Loan Gold Loan Customer Retail Trading of Snacks and Trading and Installation of Industrial Food and Tea Stall Tailoring Business Savories Electrical Products Expand his product offering and to Refurbish a few existing ou
Slide 21: Our Franchise
Who we are Our Franchise Financial Performance Risk Management Treasury & Funding
Slide 22: Growing Branch Footprint
Growing Branch Footprint Comprehensive Branch Network… 86 19.6% 621 18 2,000+ Branches States Local channel Branch AUM 45.9% 289 9 and UTs partners Mix Mix 2 1 244 15 37 34.4% 22 20 92 South West North South West North 15 1 2 More than 70 branches 111 Branch Expansion 20-70 branches 49 Less than 20
Slide 23: Growing Disbursements & AUM
Growing Disbursements & AUM ₹ Mn Disbursements YoY: 35% QoQ: 30% 43,361 1,35,787 1,07,487 32,038 33,440 42,016 29,656 29,329 14,875 74,698 33,122 10,285 6,683 11,201 58,937 9,256 43,795 19,548 7,602 28,486 93,771 22,973 19,686 17,323 74,365 21,753 20,073 22,239 51,335 55,150 8,766 26,472 10,920 FY19
Slide 24: Growing Installment Loans Disbursements
Growing Installment Loans Disbursements ₹ Mn Small Ticket LAP & HL Medium Ticket LAP Business Loans 14,750 13,591 13,675 11,022 10,908 11,192 7,654 5,968 6,706 5,181 3,701 3,484 3,278 2,835 2,103 2,463 2,873 5 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 19 FY 20 FY 21
Slide 25: AUF Mix by Products
AUF Mix by Products 6% 2% 2% 2% 16% 15% 13% 13% 21% 11% 0% 8% 22% 37% 35% 28% 41% 39% 39% 22% 24% 32% 23% 27% 24% 29% 22% 17% 16% 15% FY19 FY20 FY21 FY22 FY23 FY24 Small Ticket LAP & HL Medium Ticket LAP Gold Loan Business Loan Other 24
Slide 26: AUM Mix by Products
AUM Mix by Products 2% 2% 1% 6% 16% 15% 13% 15% 21% 11% 0% 8% 22% 37% 33% 28% 41% 39% 39% 25% 24% 32% 23% 27% 22% 24% 26% 17% 16% 15% FY19 FY20 FY21 FY22 FY23 FY24 Small Ticket LAP & HL Medium Ticket LAP Gold Loan Business Loan Other 25
Slide 27: Off-Book Strategy
Off-Book Strategy ₹ Mn AUM AUF Off Book % Product Q4'24 Q3'24 Q4'23 Q4'24 Q3'24 Q4'23 Q4'24 Q3'24 Q4'23 Mortgage 62,179 54,707 45,064 50,041 43,079 39,019 19.5% 21.3% 13.4% Gold Loan 39,694 34,036 29,860 34,473 32,271 29,860 13.2% 5.2% 0.0% Business Loan 18,255 16,638 14,543 12,859 11,389 10,922 29.
Slide 28: AUM Mix by Region
AUM Mix by Region Mortgage Loan Gold Loan 1% 5% 0% 3% 6% 9% 9% 14% 13% 17% 17% 19% 20% 34% 28% 27% 29% 28% 29% 32% 30% 38% 43% 100% 77% 65% 67% 66% 62% 63% 56% 52% 55% 45% 40% FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 South West North Mortgage Loans includes medium Ticket LAP, Smal
Slide 29: Financial Performance
Who we are Our Franchise Financial Performance Risk Management Treasury & Funding
Slide 30: Financials
Financials ₹ Mn Particulars Q4 FY24 Q3 FY24 Q4 FY23 Operational Information Branches (#) 621 609 575 Disbursements 43,361 33,441 32,038 AUM 1,21,919 1,07,139 90,696 Employees (#) 4,298 4,134 3,570 Financial Information Total Income 4,277 4,294 3,466 Interest Expenses 1,734 1,758 1,410 Net Interest I
Slide 31: Balance Sheet
Balance Sheet ₹ Mn Balance Sheet Q4 FY24 Q3 FY24 Q4 FY23 QoQ YoY FY 24 FY 23 Assets Cash & Cash Equivalents & Other bank 1,855 10,967 946 1,855 946 Balance Loans 98,225 87,449 79,997 98,225 79,997 Investments 7,513 4,794 6,806 7,513 6,806 Other Financial Assets & Receivables 1,768 1,155 841 1,768 84
Slide 32: P&L Statement
P&L Statement ₹ Mn Profit & Loss Statement Q4 FY24 Q3 FY24 Q4 FY23 QoQ YoY FY 24 FY 23 YoY Interest Income 3,854 3,759 3,023 14,580 10,754 Interest Expenses 1,734 1,758 1,410 6,797 4,722 Net Interest Income (Core) 2,120 2,002 1,613 6% 31% 7,783 6,032 29% Net Gain on Direct Assignment -16 165 152 337
Slide 33: RoA Tree
RoA Tree RoA Tree Q4 FY24 Q3 FY24 Q4 FY23 FY 24 FY23 Interest Income / Average total assets 14.2% 14.5% 13.7% 14.4% 13.8% Interest Expenses / Average total assets 6.4% 6.8% 6.4% 6.7% 6.0% Net Interest Income (Core) / Average total assets 7.8% 7.7% 7.3% 7.7% 7.7% Net Gain on DA / Average total Assets
Slide 34: Risk Management
Who we are Our Franchise Financial Performance Risk Management Treasury & Funding
Slide 35: Quality of the Book
Quality of the Book Over 80% AUM from customers with CIBIL >6501,2 0% 14% 11% 22% 6% 9% 7% 55% 72% 15% 89% >700 650-700 <650 0/-1 >700 650-700 <650 0/-1 >700 <700 0/-1 Medium Ticket LAP Small Ticket LAP & HL Business Loan Granular loan book with high quality collateral 85% 80.1% ₹ 2.1 mn AUM secured
Slide 36: Portfolio Quality Indicators (1/2)
Portfolio Quality Indicators (1/2) Gross Stage III % Net Stage III % 1.7% 2.2% 1.6% 2.0% 1.7% 1.3% Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 1+ DPD* % 30+ DPD* % 4.4% 4.3% 4.5% 7.4% 7.4% 7.2% Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 * 1+ DPD and 30+ DPD are for non Gold Loan portfolio 3
Slide 37: Portfolio Quality Indicators (2/2)
Portfolio Quality Indicators (2/2) ₹ Mn Q4FY24 Gross Stage III % Net Stage III % Particulars Gross Net AUF PCR (%) Q4FY24 Q3FY24 Q4FY23 Q4FY24 Q3FY24 Q4FY23 Stage III Stage III Mortgage 50,041 1,117 867 22.4% 2.2% 2.8% 2.2% 1.9% 2.2% 1.8% Gold Loan 34,473 276 253 8.2% 0.8% 0.8% 0.9% 0.8% 0.7% 0.7% B
Slide 38: Expected Credit Loss
Expected Credit Loss ₹ Mn Particulars Q4 FY24 Q3 FY24 Q4 FY23 FY24 FY23 Gross Stage 1 Assets 93,159 82,831 75,690 93,159 75,690 % of total loan assets 93.9% 94% 93.3% 93.9% 93.3% ECL provision 403 359 317 403 317 ECL provision % of assets 0.2% 0.4% 0.4% 0.2% 0.4% Gross Stage 2 Assets 4,360 3,728 3,7
Slide 39: Treasury & Funding
Who we are Our Franchise Financial Performance Risk Management Treasury & Funding
Slide 40: Sources of Funding
Sources of Funding Diversified Funding Profile ALM Position as on 31st March 2024 (Cumulative) ₹ Mn Surplus / 22% (Shortfall) 27,567 < 3 months 9,108 18,459 0% 7% 37,685 < 6 months 12,297 25,388 71% 63,556 < 1 year 25,986 37,571 90,997 < 3 years 18,014 Terms Loans NCDs 72,983 Commercial Papers Direc
Slide 41: Net Securitization Volume
Net Securitization Volume Off-book AUM ₹ 4,263 Mn ₹ 9,669 Mn ₹ 22,756 Mn* Incremental Sell Down ₹ 2,576 Mn ₹ 7,744 Mn ₹ 14,609 Mn 5,272 4,573 3,886 2,839 2,401 1,787 1,925 1,395 676 0 175 ₹ Mn Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 * includes
Slide 42: Shareholding Pattern
Shareholding Pattern Shareholding Pattern – 31st March 2024 Top Institutional Shareholders : 31st March 2024 Investor Details % Holding Others 19.4% Federal Bank Ltd 61.7 True North Fund VI LLP 8.8 FII 1.1% MFs 2.6% Nuvama Private Investment 2.8 Insurance Cos 6.6% The Federal Bank 61.7% SBI Life 2.5
Slide 43: Thank You
THANK YOU investor@fedfina.com www.fedfina.com
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