Idfc First Bank Ltd. · NSE:IDFCFIRSTB
Idfc First Bank — Q1 FY24 Earnings Presentation
97 slides from Idfc First Bank's earnings presentation, August 2023
Slide 1: Investor Presentation – Q1 FY24
Investor Presentation – Q1 FY24
Slide 2: Table of Contents
1 IDFC FIRST Bank Vision 2 Financial Highlights of Q1 FY24 3 Our Approach to building IDFC FIRST Bank 4 Products and Services 5 Deposits and Borrowings TABLE 6 Loans and Advances OF 7 Risk Management & Asset Quality CONTENTS 8 Profitability & Capital 9 Credit Rating 10 Board of Directors 11 Sharehol
Slide 3: IDFC FIRST Bank Vision
Section 1: Vision IDFC FIRST Bank Vision “To build a world class bank in India, guided by ethics, powered by technology and to be a force for social good.” 2
Slide 4: Culture @ IDFC FIRST Bank
Section 1: Vision Culture @ IDFC FIRST Bank (Annual Report 2018-19) (Annual Report 2019-20) (Annual Report 2019-20) (Annual Report 2019-20) (Annual Report 2019-20) MD and CEO message to employees and shareholders 3
Slide 5: Culture @ IDFC FIRST Bank
Section 1: Vision Culture @ IDFC FIRST Bank We are a universal bank with highly We know that we are on to a wonderful diversified sources of income. Apart model, and I am confident that if we from lending, we have launched stay the course and play with a straight several other new businesses such ba
Slide 6: Section 2: Financial Highlights of Q1 FY24
Section 2: Financial Highlights of Q1 FY24
Slide 7: Bank At a Glance – Q1 FY24
Section 2: Financial Highlights – Q1 FY24 Bank At a Glance – Q1 FY24 Loans and Advances Deposits Profitability Key Ratios Core Operating Return on Loans & Advances1 Customer Deposits Income Assets US$ 20,924 Mn US$ 18,107 Mn US$ 620 Mn 1.26% (25% YoY) (44% YoY) (39% YoY) (Q1 FY23 - 0.97%) Asset Qual
Slide 8: Key Financial Highlights of Q1 FY24 (YoY movement)
Section 2: Financial Highlights – Q1 FY24 Key Financial Highlights of Q1 FY24 (YoY movement) Area Key Parameters Q1 FY23 Q1 FY24 Growth (%/bps) Assets Loans & Advances US$ 16,788 Mn US$ 20,924 Mn 25% Customer Deposits US$ 12,545 Mn US$ 18,107 Mn 44% Deposits CASA Ratio (%) 50.04% 46.47% -357 bps GNP
Slide 9: Key Financial Highlights of Q1 FY24 (QoQ movement)
Section 2: Financial Highlights – Q1 FY24 Key Financial Highlights of Q1 FY24 (QoQ movement) Area Key Parameters Q4 FY23 Q1 FY24 Growth (%/bps) Assets Loans & Advances US$ 19,585 Mn US$ 20,924 Mn 7% Customer Deposits US$ 16,684 Mn US$ 18,107 Mn 9% Deposits CASA Ratio (%) 49.77% 46.47% -330 bps GNPA
Slide 10: Section 3: Our approach to building IDFC FIRST Bank
Section 3: Our approach to building IDFC FIRST Bank
Slide 11: Background
Approach to build IDFC FIRST Bank Background • IDFC Limited was a reputed Domestic Financial Institution which was awarded a commercial banking license, and set up IDFC Bank. As part of this process, IDFC Limited transferred its loan assets (largely corporate and infrastructure loans) and liabilitie
Slide 12: Our approach to building IDFC FIRST Bank (1/3)
Approach to build IDFC FIRST Bank Our approach to building IDFC FIRST Bank (1/3) In December 2018, when our Bank merged with Capital First, both institutions were asset focused firms with no retail liabilities, hence 91% of our liabilities were institutional. To address this, we prudently slowed dow
Slide 13: Our approach to building IDFC FIRST Bank (2/3)
Approach to build IDFC FIRST Bank Our approach to building IDFC FIRST Bank (2/3) In retail we have a track record of 12 years of maintaining our Gross NPA and Net NPA at around 2% and 1% respectively. During this period we have experienced multiple stress-tests, including economic slowdown High Asse
Slide 14: Our approach to building IDFC FIRST Bank (3/3)
Approach to build IDFC FIRST Bank Our approach to building IDFC FIRST Bank (3/3) Our Bank has a distinguished Board of Directors comprising eminent, highly qualified, and extensively experienced individuals. All committees, with the exception of CSR, are led by independent directors. Corporate Gover
Slide 15: Section 4: Products and Services
Section 4: Products and Services Wide range of Fund and Non-Fund Based Products: The Bank launched many new products and services in building a strong, sustainable, diversified deposit and asset franchise power by digital innovations
Slide 16: The Bank has developed a wide Product Suite of a Universal Bank
Section 4: Products and Services The Bank has developed a wide Product Suite of a Universal Bank 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 Curr
Slide 17: Wide bouquet of products for consumers, MSMEs and Corporates
Section 4: Products and Services The Bank has a wide bouquet of products for consumers, MSMEs and Corporates Personal Banking: For salaried & self-employed individuals, SME Banking: The bank provides a wide Corporate Banking: the Bank provides various products to fulfill different financial needs ra
Slide 18: Wide range of Current and Savings Account Offerings
Section 4: Products and Services The Bank has a wide range of Current and Savings Account Offerings • Targeted for SMEs and Entrepreneurs • Auto - Sweep funds into a FD above Rs. 2 lacs balance in the current account • No pre-mature breakage penalty for breakage of FDs • Nil average monthly balance
Slide 19: Our Digital Initiatives
Section 4: Products and Services Our Digital Initiatives Significant traction on electronic platforms RTGS & NEFT 95% Ranked 3rd UPI Transactions: Growth of payments through CMS Of the overall Bharat Bill Payment ~104% over the last year and solutions up by 27% YoY (vol.) transactions are System (BB
Slide 20: India’s FIRST FASTAG with Triple Benefits
Section 4: Products and Services India’s FIRST FASTAG with Triple Benefits – Toll, Fuel and Parking Largest IDFC FIRST is the largest issuer among 38 Issuer banks in NETC with respect to FASTAG monthly activation Issuer bank numbers and value processed. IDFC FIRST Bank issuance business crossed 14.2
Slide 21: Wealth Management AUM up 58% YoY
Section 4: Products and Services Wealth Management AUM up 58% YoY to US$ 1,302 Mn 1 Assisted Transactions: Digitally assisted transaction execution for Mutual Funds 2 Investment Dashboard: Assets managed by RM, including Product & Asset-Class split 3 Held-away Portfolio - to track client’s non-IDFC
Slide 22: Section 5: Deposits and Borrowings
Section 5: Deposits and Borrowings a. CASA Deposits b. Customer Deposits c. Total Customer Deposits d. Summary of Deposits and Borrowings e. Legacy High-Cost Borrowings
Slide 23: Strong growth in Total Customer Deposits
b. Total Customer Deposits Section 5: Deposits & Borrowings Deposits: Strong growth in Total Customer Deposits • Total Customer Deposits (Retail Deposits + Wholesale Deposits) has grown strongly by 4 Year CAGR (Mar-19 to Mar-23) of 36%. • The Bank has 824 branches as of June 30, 2023. in US$ Million
Slide 24: CASA Deposits growth capability
a. CASA Deposits Section 5: Deposits & Borrowings CASA Deposits - Bank has a demonstrated capability to grow CASA deposits • In May 2021, we reduced deposit rates for balances upto Rs. 10 lacs by 300 bps from 7% to 4%. Despite this, our CASA deposit growth continues to be strong, growth of 27% YOY a
Slide 25: CASA Ratio at 46.5%
a. CASA Deposits Section 5: Deposits & Borrowings CASA Ratio at 46.5% • CASA Ratio stood at 46.5% as of June 30, 2023, as compared to 49.8% as of March 31, 2023, as incrementally during Q1 FY 24, the Bank raised more fixed deposits than CASA deposits. • Average Daily Balance CASA deposits for the ba
Slide 26: 77% of customer deposits are now Retail
c. Diversification of Deposits Section 5: Deposits & Borrowings Bank has Diversified its liabilities base: 77% of customer deposits are now Retail • The Bank has transformed the liability profile in 4 years from wholesale to retail, in order to diversify the deposit base. • The Retail wholesale Depo
Slide 27: Summary of Deposits & Borrowings
d. Summary of Deposits & Borrowings Section 5: Deposits & Borrowings Summary of Deposits & Borrowings Particulars (in US$ Million) Jun-22 Mar-23 Jun-23 YoY growth Legacy Long Term Bonds 808 782 750 -7% Legacy Infrastructure Bonds 970 843 842 -13% Refinance 2,150 2,560 2,428 13% Other Borrowings 648
Slide 28: Run down of legacy high cost borrowings
e. Legacy High Cost Borrowings Section 5: Deposits & Borrowings Bank continues to successfully run down the legacy high cost long term borrowings Balance In US$ Million RoI (%) As on Jun-22 As on Jun-23 FY24 FY25 FY26 Beyond FY26 Infrastructure Bonds 970 842 112 627 103 0 8.91% Long Term Legacy Bond
Slide 29: Section 6: Loans & Advances
Section 6: Loans & Advances Bank has a well diversified Credit Portfolio
Slide 30: Loan book diversified across more than 20 business lines
Section 6: Loans & Advances The Bank has diversified its loan book across more than 20 business lines Emerging Enterprises Financial Institutions Other Corporates Loan Book: June 30, 2023 7% 8% 3% US$ 20,924 Mn Infrastructure Financing Large Corporate 2% 1% Other SME Loans 5% Mortagages Rural Financ
Slide 31: Legacy Infrastructure Project financing Book brought down
Section 6: Loans & Advances Bank has brought down the legacy Infrastructure Project financing Book In the last 5 years, the Infrastructure financing book as % of overall Loans & Advances has come down from 36.7% to 2.2% as of June 30, 2023 Infrastructure Financing Book (US$ Million) 36.7% 3,272 % of
Slide 32: Section 7: Risk Management & Asset Quality
Section 7: Risk Management & Asset Quality a. Break-down of NPA across Business Segments b. Retail, Rural & SME i) Risk Management Funnel Finance ii) Underwriting Processes iii) Trend of Bounce rates iv) Trend of collection efficiency v) SMA (1+2) vi) Trend of NPA Ratios vii) Product wise NPA Ratios
Slide 33: Break-down of asset quality by business components
Section 7: Risk Management & Asset Quality Break- down of asset quality by business components. Retail has least Gross NPA and Net NPA for over a decade Segment Gross Advances Breakup (In US$ Million) Gross NPA Net NPA PCR% Retail, Rural and SME 16,593 1.53% 0.52% 83.93% Finance Corporate 3,183 2.65
Slide 34: Risk Management Funnel for Retail, Rural & SME Loans
b. Retail, Rural & SME Loans Section 7: Risk Management & Asset Quality Risk Management Funnel for Retail, Rural & SME Loans We have stringent underwriting policy and processes Hence Only 40-60% of applications are approved Hence We have Low Cheque Bounces* (6.50%) We follow it up with This slide ex
Slide 35: Use of the Indian digital ecosystem for lending controls
b. Retail, Rural & SME Loans Section 7: Risk Management & Asset Quality Bank has utilized the new Indian digital Ecosystem for better controls in lending Stage of Loan New Earlier Now Benefit Processing Ecosystem • Physical - copies of Passport, Ration Card, Identity is High Quality Identity KYC • B
Slide 36: 10 Step Stringent Underwriting Process (1/2)
b. Retail, Rural & SME Loans Section 7: Risk Management & Asset Quality The Bank has a 10 Step Stringent Underwriting Process (1/2) The Bank evaluates certain quick no-go criteria such as deduplication against existing records, bank validation and minimum 1 No-Go Criteria credit parameter rules. The
Slide 37: 10 Step Stringent Underwriting Process (2/2)
b. Retail, Rural & SME Loans Section 7: Risk Management & Asset Quality The Bank has a 10 Step Stringent Underwriting Process (2/2) The Bank checks for further credit history and industry level exposure by doing CRILC checks and checks by external entities, 7 Industry Check where required, to study
Slide 38: Cheque returns on first presentation down 34%
b. Retail, Rural & SME Loans Section 7: Risk Management & Asset Quality Cheque returns on first presentation down 34% indicating better quality of loan booked Pre- Covid Period Post Covid Period • First EMI (FEMI) Cheque presentation is a direct indicator of the Quality of Booking. 9.9% • Our FEMI c
Slide 39: Collection Efficiency above 99%
b. Retail, Rural & SME Loans Section 7: Risk Management & Asset Quality Collection Efficiency maintained at more than 99% level consistently over the last 24 months • The Current Bucket Collection % continues to be high at 99.5% • Thus only 0.5% of the portfolio moves to 0-30 bucket. • This in turn
Slide 40: Low SMA at 0.85%
b. Retail, Rural & SME Loans Section 7: Risk Management & Asset Quality Bank has low SMA - (SMA1 + SMA 2) at 0.85% 1.25% • SMA 1 is the overdue portfolio in Bucket 31-60 days, and SMA 2 is the overdue portfolio in 61-90 days. 0.85% • SMA 1 (31-60 days overdue) and SMA 2 (61-90 days overdue), put tog
Slide 41: High Retail asset quality for a decade
b. Retail, Rural & SME Loans Section 7: Risk Management & Asset Quality Bank has maintained High Retail asset quality GNPA of ~2% and NNPA ~1% for a decade. • In this segment, asset quality maintained through Economic slowdown, demonetization, GST, ILFS Crisis. • In Retail, Rural & SME Finance portf
Slide 42: Key Product wise NPA detail
b. Retail, Rural & SME Loans Section 7: Risk Management & Asset Quality Key Product wise NPA detail as of June 30, 2023 Here we share the Gross and Net NPA of individual products in Retail, Rural & SME Loan book. Most of the products have GNPA ratio at less than 2% and NNPA ratio at less than 1% as
Slide 43: Stringent Underwriting Process in Wholesale Business
c. Wholesale Financing Section 7: Risk Management & Asset Quality Stringent Underwriting Process in Wholesale Business • All New-To-Bank potential borrowers (incl. promoter/ directors) are checked including CIBIL, Suit filed, CFR, CRILC, etc. 1 Customer Selection • Further, bank has also defined min
Slide 44: Reduced concentration risk in Wholesale lending
c. Wholesale Financing Section 7: Risk Management & Asset Quality 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 16% in Jun-23 from 19% in Mar-1
Slide 45: Provision Coverage Ratio increased to 83.12%
d. Provision Coverage Ratio Section 7: Risk Management & Asset Quality Provision Coverage Ratio increased to 83.12% for the Bank Retail, Rural & SME Finance Non-Infra Corporate Book 82.43% 83.93% 94.50% 99.84% 99.42% 65.08% 69.59% 72.32% 57.53% 58.51% 44.56% 45.95% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Slide 46: Net Stressed Assets reduced to 0.7% of total Assets
e. Net Stressed Assets Section 7: Risk Management & Asset Quality Net Stressed Assets reduced significantly to only 0.7% of total Assets Net stressed Assets = Net NPA + Net SRs + Net Restructured Assets (OTR) 1.65% • The Bank has reduced the net stressed assets, both in absolute value and as % of th
Slide 47: Section 8: Profitability & Capital
Section 8: Profitability & Capital a. Net Interest Income b. Fee and Other Income c. Composition of Fee and Other Income d. Trend of Core Operating Profit e. Trend of Profitability and Return Ratios f. Financial Statements g. Capital Adequacy 46
Slide 48: 36% YoY growth in Net Interest Income
a. Net Interest Income Section 8: Profitability & Capital 36% YoY growth in Net Interest Income during Q1 FY24 Net Interest Income (In US$ Million) 1,541 4Y CAGR: 27% 1,184 30% 900 741 36% 32% 591 21% 457 336 25% FY19* FY20 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Net Interest Margin for Q1-FY24 was 6.33% as
Slide 49: 49% YoY growth in Fee & Other Income
b. Fee & Other Income Section 8: Profitability & Capital 49% YoY growth in Fee & Other Income during Q1 FY24 Fee and Other Income (In US$ Million) 505 4Y CAGR: 37% 328 54% 49% 66% 189 198 5% 163 142 110 33% FY19* FY20 FY21 FY22 FY23 Q1 FY23 Q1 FY24 * H2-FY19 actual annualized 48
Slide 50: 48% YoY growth in Retail Fee
b. Fee & Other Income Section 8: Profitability & Capital 48% YoY growth in Retail Fee during Q1 FY24 Retail Fee (In US$ Million) 461 4Y CAGR: 63% 293 58% 48% 164 79% 145 148 13% 100 65 122% FY19 FY20 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Retail Fees as % 64% 77% 83% 89% 91% 91% 91% to total fee 49
Slide 51: Breakup of Fee & Other Income – Q1-FY24
b. Fee & Other Income Section 8: Profitability & Capital Breakup of Fee & Other Income – Q1-FY24 Loan Origination fees General Banking Fees • The Bank has launched and & Others 30% scaled up many fee-based 30% products in the last 4 years. • Many of these products are in the early stage of their lif
Slide 52: Cost to Income ratio reduced from 95% to 72%
c. Cost to Income Ratio Section 8: Profitability & Capital Bank has reduced Cost to Income ratio from 95% to 72% in 4 years • During the last three years the bank had to make significant investments in building liabilities and credit card franchise • Despite this, the cost income ratio has come down
Slide 53: 45% YoY growth in Core Operating Profit
d. Core Pre-provisioning Operating Profit Section 8: Profitability & Capital 45% YoY growth in Core Operating Profit (excluding trading gains) during Q1 FY24 The core operating profit (excluding trading gains) increased by 45% against the overall loan book growth of 25%. This demonstrates the power
Slide 54: Improving Operating Profit as % of total assets
d. Core Pre-provisioning Operating Profit Section 8: Profitability & Capital Improving Operating Profit as % of total assets Core Pre-Provisioning Operating Profit (PPOP) as a % of Average Total Assets 2.34% 2.14% 2.02% 1.56% 1.22% 1.11% (Post-merger) (Pre-merger 0.76% standalone Bank) 0.32% H1 FY19
Slide 55: Consistent growth in core operating profits every quarter
d. Core Pre-provisioning Operating Profit Section 8: Profitability & Capital Consistent growth in core operating profits every quarter Quarterly Core Pre-Provisioning Operating Profit (excluding the trading gains) in US$ Million 67% 562 337 174 164 149 120 128 102 91 66 68 73 70 52 57 57 59 49 34 34
Slide 56: Bank has turned profitable on sustained basis
e. Net Profit Section 8: Profitability & Capital Bank has turned profitable on sustained basis based on strong Operating Profits and low credit costs Quarterly Net Profit / Loss (US$ Million) 85 ^ 93 68 74 58 34 42 11 12 16 16 19 9 -27 COVID -45 2nd wave -75 -83 -77 Provisions on Infra DTA A/Cs • Th
Slide 57: Consistent improvement in ROA and ROE
f. Profitability Ratios Section 8: Profitability & Capital Consistent improvement in ROA and ROE Return on Equity (%) Return on Assets (%) 12.30% 1.23% 1.26% 11.78% 10.72% 1.07% 1.11% 10.13% 0.97% 8.96% 0.76% 6.67% Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 ^ Q1 FY24 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4
Slide 58: Quarterly Income Statement
g. Financial Statements Section 8: Profitability & Capital Quarterly Income Statement Growth (%) In US$ Million Q1 FY23 Q4 FY23 Q1 FY24 YoY Interest Income 600 783 838 40% Interest Expense 265 345 381 44% Net Interest Income 335 439 457 36% Fee & Other Income 110 144 164 49% Trading Gain -5 26 9 - O
Slide 59: Balance Sheet
g. Financial Statements Section 8: Profitability & Capital Balance Sheet Growth (%) In US$ Million Jun-22 Mar-23 Jun-23 (YoY) Shareholders' Funds 2,620 3,137 3,235 23% Deposits 13,823 17,639 18,833 36% - CASA Deposits 6,917 8,778 8,752 27% - Term Deposits 6,906 8,860 10,081 46% Borrowings 6,791 6,97
Slide 60: Capital Adequacy Ratio is strong at 16.96%
h. Capital Adequacy Ratio Section 8: Profitability & Capital Capital Adequacy Ratio is strong at 16.96% as on June 30, 2023 In US$ Million Jun-22 Mar-23 Jun-23 Common Equity 2,539 3,026 3,126 Tier 2 Capital Funds 319 559 745 Total Capital Funds 2,858 3,585 3,870 Total Risk Weighted Assets 18,122 21,
Slide 61: Section 9: Credit Rating
Section 9: Credit Rating
Slide 62: Long Term Credit Rating upgraded by CRISIL and ICRA
Section 9: Credit Rating Bank’s Long Term Credit Rating has been recently upgraded by CRISIL and ICRA Rating Agency Long Term Credit Rating Month of Rating Review CRISIL AA (stable) to AA+ (stable) June ‘23 ICRA AA (stable) to AA+ (stable) May ‘23 India Ratings AA+ (negative) to AA+ (stable) Dec’ 22
Slide 63: Section 10: Board of Directors
Section 10: Board of Directors
Slide 64: Board of Directors: MD & CEO Profile
Section 10: Board of Directors Board of Directors: MD & CEO Profile Vaidyanathan aspires to create “a world-class bank Indian Bank which offers high-quality affordable and ethical banking for India”. He left a Board level position at ICICI group in 2010 and acquired stakes in of a small listed, loss
Slide 65: Board of Directors: COO Profile
Section 10: Board of Directors Board of Directors: COO Profile MR. Madhivanan Balakrishnan - EXECUTIVE DIRECTOR Mr. Madhivanan Balakrishnan is the Chief Operating Officer (COO) of IDFC FIRST Bank. He is a customer focused and respected industry thought leader with a broad expertise across business d
Slide 66: Board of Directors
Section 10: 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
Slide 67: Board of Directors
Section 10: Board of Directors Board of Directors MR. HEMANG RAJA - INDEPENDENT DIRECTOR Mr. Hemang Raja, is an MBA from Abilene Christian University, Texas, with a major in finance. He has also completed an Advanced Management Programme (AMP) from Oxford University, UK. He has vast experience in th
Slide 68: Board of Directors
Section 10: Board of Directors Board of Directors MR. AJAY SONDHI - NON-EXECUTIVE NON INDEPENDENT DIRECTOR Mr. Ajay Sondhi, is a 2017 Fellow, Harvard Advanced Leadership Initiative, MBA - Finance from JBIMS, Mumbai University, and B.A. in Economics (Honors) from St. Stephens College, Delhi Universit
Slide 69: Section 11: Shareholding
Section 11: Shareholding
Slide 70: Shareholding Pattern as of June 30, 2023
Section 11: Shareholding Shareholding Pattern as of June 30, 2023 Scrip Name: IDFC FIRST Bank (BSE: 539437, NSE:IDFCFIRSTB) Total # of shares as of Jun 30, 2023 6,628.2 Million Other Body Trusts and Corporate Clearing Rs. 4.63 (US$ 0.06) Basic EPS (Q1-FY24 annualized) (1.05%) Members (0.37%) Preside
Slide 71: Improved Price to Book ratio
Section 11: Shareholding Improved Price to Book ratio Book Value per Share (US$) Price to Book ratio (x) During the last 9 quarters, the BVPS reduced due to credit losses BVPS increased by 28% with the arising from legacy corporate and increasing profitability from the infrastructure loans core busi
Slide 72: Section 12: Progress on ESG
Section 12: Progress on ESG
Slide 73: Our ESG Priorities Align with our Corporate Vision
Section 12: 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 FIRST Priorities (immediate and continuing) • Highest standards of corporate governance, ethics • Prod
Slide 74: ESG at IDFC FIRST Bank
Section 12: Progress on ESG ESG at IDFC FIRST Bank Environmental Social Governance Infrastructure and facilities Employee learning and engagement Strong and experienced Board • DC EV charging infrastructure in two large offices in Mumbai, • ~4.7 lakh learning hours in Q1 FY24 • Independence: 60% Ind
Slide 75: ESG Governance, Commitments and Ratings
Section 12: Progress on ESG ESG Governance, Commitments and Ratings ESG Governance ESG Commitments Structure • Official Participant of United Nations Global Compact (UNGC) • One of the initial official supporters of Task Force on Climate-Related Board Level Committee Financial Disclosures (TCFD) in
Slide 76: ESG Awards
Section 12: Progress on ESG ESG Awards ESG Rising Star Award & Best Bank Leading the Best ESG Initiative to Best CSR Sustainability Navabharat BFSI Award Sustainability Impact way in ESG Apr 2023 Improve Access to Award – Economic Times Best Sustainable Bank Strategy Award May 2023, UBS Sanitation A
Slide 77: Section 13: Awards and Recognition
Section 13: Awards and Recognition
Slide 78: Awards and Recognition
Section 13 : Awards & Recognitions Awards and Recognition Best Corporate Governance 2023 - World Finance Innovative Payment Solution of the Year for FIRSTAP 2023 - Gadgets Now Excellence in BFSI 2023 - by Fun & Joy at Work Dream company to work for HR 2023 - by Fun & Joy at Work Best Corporate Gover
Slide 79: IDFC FIRST Bank
IDFC FIRST Bank We are building a world class bank with: - Highest levels of corporate governance - Stable balance sheet growth of ~20-25%, - Robust asset quality of GNPA less than 2% and net NPA of < 1% - High teens ROE - Contemporary technology and - High levels of Customer Centricity. 78
Slide 80: 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 81: Thank You
Thank You IDFC FIRST Bank
Slide 82: Annexure 1
Annexure 1 Performance of the Bank against the stated goals 81
Slide 83: Bank performing well on guidance given at the time of the merger
We are happy to say that the Bank is performing well on the guidance given at the time of the merger. Dec-18 Jun-23 Particulars Guidance for FY24-FY25 Status (At Merger) Last quarter CET – 1 Ratio 16.14% >12.5 % 13.70% On Track Capital Capital Adequacy (%) 16.51% >13.0 % 16.96% On Track 30% (FY24),
Slide 84: Bank performing well on guidance given at the time of the merger
We are happy to say that the Bank is performing well on the guidance given at the time of the merger. Dec-18 Jun-23 Particulars Guidance for FY24-FY25 Status (At Merger) Last quarter Top 10 borrowers as % of Total Loans & Advances (%) 12.8% < 5% 2.7% Achieved GNPA (%) 1.97% 2.0% - 2.5% 2.17% On Trac
Slide 85: Annexure 2
Annexure 2 Breakup of the loans & advances with YoY growth 84
Slide 86: Analysis of Loans & Advances by nature of business
Analysis of Loans & Advances by nature of business (Personal vs Business finance) Gross Loans & Advances (In US$ Million) Jun-22 Mar-23 Jun-23 YoY (%) QoQ (%) Consumer Finance (Personal Finance) 9,318 11,101 11,869 27% 7% - Home Loan 1,872 2,384 2,456 31% 3% - Loan Against Property 2,272 2,463 2,452
Slide 87: Annexure 3
Annexure 3 Background of IDFC FIRST Bank – Merger of IDFC Bank and Capital FIRST
Slide 88: IDFC FIRST Bank was 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 89: Annexure 4
Annexure 4 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. 88
Slide 90: 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% Asset Under Management (In US$ Mn) 3,978 3,292 2,418 1,956 1,460 1,180 916 754 335 114 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 H1-FY19 89
Slide 91: 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 92: 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 93: Capital First: Return on Equity continuously 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 94: 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 95: 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 96: Annexure 5
Annexure 5 Proforma Financials before merger (H1-FY19) 95
Slide 97: 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 Proforma Total In US$ Million (H1 FY 19) First (H1 FY 19) (H1 FY 19) Loans & Advances / AUM 9,187 3,978 13,165 Net-Worth 1,802 357 2,159 NII 111 139 251 Fees & Other Income 31 19 50