Fedbank Financial Services Ltd. · NSE:FEDFINA
Fedbank Financial Services — Q3 FY25 Earnings Presentation
41 slides from Fedbank Financial Services's earnings presentation, Jan 24, 2025
Slide 1: Investor meet presentation filing letter to exchanges
Secretarial Department January 24, 2024 Ref. FEDFINA/ CS/ 216/ 2024-25 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 Fl
Slide 2: Fedbank Financial Services Investor Presentation Q3 FY25
FEDBANK FINANCIAL SERVICES INVESTOR PRESENTATION Q3 FY25 EMPOWERING EMERGING INDIA WITH EASY ACCESS TO LOANS
Slide 3: Safe Harbor
Safe Harbor 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 subsc
Slide 4: Table Of Content
Table Of Content Who we are Who we are Our Franchise Our Business Financial Performance Technology, Digital, ESG & CSR
Slide 5: Executive Summary: Q3 FY25
Executive Summary : Q3 FY25 Business AUM growth of 39.3% YoY to ₹ 14,922 Cr. Gold loans registered an AUM growth of 52.9% YoY to ₹ 5,203 Cr, taking the overall AUM mix to 34.9%. Growth in Mortgage AUM came in at 38.6% YoY to ₹ 7,581 Cr. Disbursal growth of 31.4% YoY to ₹ 4,395 Cr, led by hea
Slide 6: Small Mortgage: Update
Small Mortgage : Update Small Mortgage business facing short term challenges on account of the following, Elevated delinquencies in select pockets, Collection infrastructure lagging growth in certain out-reach locations, Delayed realization in deeper bucket NPAs Addressing holistically fro
Slide 7: Q3FY25 Result Summary
Q3FY25 Result Summary YoY QoQ ₹ 14,922 Cr ₹ 4,395 Cr ₹ 18.8 Cr ₹ 2,464 Cr 66.1 AUM Disbursements Profit After Tax 3 Shareholder’s Funds Book Value/Sh. 39.3% 5.0% 31.4% 15.3% -71.3 % -71.0% 13.9 % 2.6 % 12.8% 2.4% 87.1% ₹ 9,800 Cr 21.6% 693 4,761 Secured AUM Borrowings1 CRAR Branches Employees 266 bp
Slide 8: Who we are
Who we are Our Franchise Our Business Financial Performance Technology, Digital, ESG & CSR
Slide 9: About Fedfina
About Fedfina Product Suite Parentage : Majority-owned by Federal Bank, with strong access to debt & equity. Vision : “Empowering Emerging India with Easy Access to Loans.” Target Segment: Catering to MSMEs with tailored loan solutions. Geographical Presence: Wider footprint across 18 states
Slide 10: Our Board of Directors
Our Board of Directors Shyam Srinivasan K.V.S. Manian Harsh Dugar Non- Executive Chairman & Non-Executive Non-Executive Non-Executive Director Nominee Director Nominee Director Maninder Juneja Sunil Gulati Gauri Shah Non-Executive Independent Director Independent Director Nominee Director Mona Bhide
Slide 11: Management Team
Management Team Parvez Mulla MD & CEO C.V. Ganesh Siddharth K Awadhesh Jaiswal Anila Rajneesh Chief Financial Chief Operating Chief Risk Officer Chief Human Officer Officer (Interim) Resource Officer Shardul Kadam K Sureshkumar Ramchandar R Jagadeesh Rao CBO – Mortgage CBO – Mortgage CBO – Business
Slide 12: Shareholding Pattern
Shareholding Pattern Shareholding : 31st Dec 2024 Top Institutional Shareholders : 31st Dec 2024 Investor Details % Holding Others 17.1% Federal Bank Ltd 61.0 True North Fund VI LLP 8.7 FII 0.5% Nuvama Private Investment 2.8 MFs 2.5% Insurance SBI Life Insurance 2.4 Cos 4.3% Unifi Capital (Blend II
Slide 13: Our Growth Journey
Our Growth Journey FY23 onwards.. • AUM: ₹149 bn (Q3 FY25) • Branches: 693 (Q3 FY25) FY20 – FY22 • Employees: 4,761 (Q3 FY25) • AUM: ₹62 bn (FY22) 149 • Branches: 516 (FY22) Initial Public Offering of ₹10.9 FY16 – FY19 • Employees: 2,855 (FY22) Bn 122 • AUM: ₹20 bn (FY19) Credit Rating upgraded Long
Slide 14: 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 15: Market: Long runway for growth
Market Household credit to GDP ratio (%)1 Retail credit growth to continue 2 77.5 77 70.7 69 62.1 60 42.9 50 34.3 35.7 41 31 FY18 FY20 FY22 FY23E FY24P FY25P MSME Credit Addressable Market 3 Household Gold 3 INR 25 Tn Pledged with INR 92 Tn Financiers, 7% Unpledged, credit gap 93% Credit Gap Formal
Slide 16: Our Product Suite
Our Product Suite Secured Against Collateral Category Mortgage Loans Gold Loans Business Loans AUM 7,581 5,203 1,920 (₹Cr) (50.8%) (34.9%) (12.9%) (% of total) Avg. Ticket Size 32.6 1.5 23.7 (₹ Lakh) Disbursement (₹Cr) 733 3,441 220 & (Origination (13.2%) (15.1%) (17.3%) Yield) Average LTV 51.2% 71.
Slide 17: Our Product Suite: Loan against property
Our Product Suite Mortgage Loans Category Small Ticket LAP and HL Medium Ticket LAP AUM 3,602 3,979 (₹Cr) (24.1%) (26.7%) (% of total) Avg. Ticket Size 13.2 60.2 (₹ Lakh) Disbursement (₹Cr) 171 562 & (Origination (15.9%) (12.4%) Yield) Average LTV 50.6% 51.4% Underwriting Assessed Income Income Base
Slide 18: Our Customers
Our Customers Category Small Ticket LAP Medium Ticket LAP Business Loan Gold Loan Customer Retail Trading of Snacks and Trading and Installation of Food and Tea Stall Tailoring Business Savories Industrial Electrical Products Expand his product offering and Refurbish a few existing outlets Purchase
Slide 19: Our Footprints
Our Footprints Comprehensive Branch Network Branch & AUM Mix 120 22.1% 693 18 2,100+ Branches States Local channel 300 Branch AUM 43.7% and UTs partners 10 2 Mix Mix 3 25 41 273 34.2% 30 26 99 South West North South West North 22 Branch Expansion 1 2 128 Gold Loan MSME Hubs 50 665 693 More than 70 b
Slide 20: Our Franchise
Who we are Our Franchise Our Business Financial Performance Technology, Digital, ESG & CSR
Slide 21: Disbursements & AUM
Disbursements & AUM ₹ Cr Gold Loan Non- Gold Loan CAGR: 47.1% Disbursements 13,579 5,005 4,336 4,395 10,748 1,034 3,810 4,202 3,344 954 1,487 7,470 3,312 1,200 5,893 1,120 4,379 1,955 760 3,971 9,377 3,441 1,969 1,732 7,436 2,849 2,610 5,515 2,224 5,133 877 2,647 1,092 FY19 FY20 FY21 FY22 FY23 FY24
Slide 22: Disbursements
Disbursements ₹ Cr Small Ticket LAP & HL Medium Ticket LAP Business Loan CAGR: 39.1% CAGR: 31.3% CAGR*: 42.9% 1,475 1,359 1,367 1,102 1,091 1,119 765 597 671 518 370 348 328 283 246 287 210 - 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 FY 22 FY 23 FY 24
Slide 23: Geographical AUM Mix
Geographical AUM Mix Mortgage Loan Gold Loan 1% 5% 3% 6% 9% 9% 14% 13% 17% 17% 19% 18% 23% 20% 34% 28% 27% 29% 28% 29% 32% 30% 38% 26% 43% 44% 100% 77% 65% 67% 66% 63% 62% 56% 55% 52% 50% 45% 40% 37% FY19 FY20 FY21 FY22 FY23 FY24 Q3 FY25 FY19 FY20 FY21 FY22 FY23 FY24 Q3 FY25 South West North Reducin
Slide 24: Yields, CoB and Spreads
Yields, CoB and Spreads Spreads Yields Cost of Borrowings Spreads Yields Cost of Borrowings 17.4% 17.4% 17.3% 17.5% 15.8% 16.2% 16.0% 15.5% 15.6% 14.5% 9.3% 9.0% 9.0% 8.8% 8.7% 8.6% 8.4% 8.3% 7.4% 7.8% 8.2% 8.0% 8.7% 8.1% 8.3% 8.5% 7.2% 7.4% 7.4% 6.1% FY 20 FY 21 FY 22 FY 23 FY 24 Q3 FY24 Q4 FY24 Q1
Slide 25: Off-book
Off-book ₹ Cr AUM AUF Off Book % Product Q3 FY24 Q2 FY25 Q3 FY25 Q3 FY24 Q2 FY25 Q3 FY25 Q3 FY24 Q2 FY25 Q3 FY25 Mortgage 5,471 7,176 7,581 4,308 5,439 5,539 21.3% 24.2% 26.9% Gold Loan 3,404 4,934 5,203 3,227 4,361 4,328 5.2% 11.6% 16.8% Business Loan 1,664 1,932 1,920 1,139 1,290 1,366 31.5% 33.2%
Slide 26: Quality of the Book
Quality of the Book ~79% AUM from customers with CIBIL >7001 Medium Ticket LAP Small Ticket LAP & HL Business Loan 2% 0% 4% 9% 4% 12% 9% 17% 66% 82% 96% >700 650-700 <650 0/-1 >700 650-700 <650 0/-1 >700 <=700 0/-1 Granular loan book with high quality collateral 87.1% 82.5% ₹ 30.1 Lakh AUM secured c
Slide 27: Portfolio Quality Indicators (1/2)
Portfolio Quality Indicators (1/2) Gross Stage III Net Stage III PCR – Stage III 45.2% 2.2% 1.9% 1.9% 1.7% 1.5% 24.5% 21.9% 1.0% Q3 FY24 Q2 FY25 Q3 FY25 Q3 FY24 Q2 FY25 Q3 FY25 Q3 FY24 Q2 FY25 Q3 FY25 1+ DPD 30+ DPD ECL Provisions 7.4% 7.3% 7.5% 4.3% 4.4% 4.0% 2.2% 1.4% 1.3% Q3 FY24 Q2 FY25 Q3 FY25
Slide 28: Portfolio Quality Indicators (2/2)
Portfolio Quality Indicators (2/2) ₹ Cr Q3FY25 Gross Stage III % Net Stage III % Particulars Gross Stage Net AUF PCR (%) Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 III Stage III Mortgage 5,539 184.8 87.6 52.6% 2.8% 3.2% 3.3% 2.2% 2.5% 1.6% Gold Loan 4,328 20.5 17.1 16.9% 0.8% 0.6% 0.5% 0.7% 0.5% 0.4%
Slide 29: Expected Credit Loss
Expected Credit Loss ₹ Cr Particulars Q3 FY24 Q2 FY25 Q3 FY25 FY 24 Gross Stage 1 Assets 8,283 10,636 10,805 9,316 % of total loan assets 93.6% 94.4% 94.4% 93.9% ECL provision 35.9 56.0 72.7 40.3 ECL provision % of assets 0.2% 0.2% 0.3% 0.2% Gross Stage 2 Assets 373 420 431 436 % of total loan asset
Slide 30: Funding Profile
Funding PortfolioProfile Quality Indicators Funding Profile Daily Average Cost of ALM Position as on 31st Dec 2024 4% Borrowing* (Cumulative) ₹ Cr 6% 8.75% 8.78% 8.73% 8.61% 8.69% 2,720 1,060 < 3 months 16% 1,660 4,411 1,490 < 6 months 56% 2,921 18% 7,936 3,170 < 1 year 4,766 Term Loans Direct Assig
Slide 31: Financial Performance
Who we are Our Franchise Our Business Financial Performance Technology, Digital, ESG & CSR
Slide 32: Financials
Financials ₹ Cr Particulars Q3 FY24 Q2 FY25 Q3 FY25 QoQ YoY FY 24 Operational Information Branches (#) 609 665 693 4.2% 13.8% 621 Disbursements 3,344 3,810 4,395 15.3% 31.4% 13,579 AUM 10,714 14,218 14,922 5.0% 39.3% 12,192 Employees (#) 4,134 4,743 4,761 0.4% 15.2% 4,298 Financial Information Total
Slide 33: Balance Sheet
Balance Sheet ₹ Cr Balance Sheet Q3 FY24 Q2 FY25 Q3FY25 QoQ YoY FY 24 Assets Cash & Cash Equivalents & Other bank 1,097 422 421 186 Balance Loans 8,745 11,156 11,263 9,822 Investments 479 687 590 751 Other Financial Assets & Receivables 116 128 130 177 Non-Financial Assets 217 242 242 202 Total Asse
Slide 34: Profit & Loss Statement
Profit & Loss Statement ₹ Cr Profit & Loss Statement Q3 FY24 Q2 FY25 Q3 FY25 QoQ YoY FY 24 Interest Income 375.9 457.7 485.8 1,458.0 Interest Expenses 175.8 214.2 221.3 679.7 Net Interest Income (Core) 200.2 243.4 264.5 8.7% 32.2% 778.3 Net Gain on Direct Assignment 16.5 21.4 19.3 33.7 Net Interest
Slide 35: RoA Tree
RoA Tree RoA Tree Q3 FY24 Q2 FY25 Q3 FY25 FY 24 Interest Income / Average total assets 14.5% 14.9% 15.4% 14.4% Interest Expenses / Average total assets 6.8% 7.0% 7.0% 6.7% Net Interest Income (Core) / Average total assets 7.7% 7.9% 8.4% 7.7% Net Gain on DA / Average total Assets 0.6% 0.7% 0.6% 0.3%
Slide 36: Technology, Digital, ESG & CSR
Who we are Our Franchise Our Business Financial Performance Technology, Digital, ESG & CSR
Slide 37: Technology Landscape
Technology Landscape Origination Underwriting Loan Operations Customer Service • Seamless API integration between core system & 3rd party partners –multi • Ubiquitous presence in digital universe - • Fully Integrated API stack : OCR, KYC • Cloud based Loan Origination System bureau, E-nach , penny d
Slide 38: Digital Landscape
Digital Landscape Fedfina Loans Fedfina Lite Fedfina Collect 10 Lakh+ Downloads 72+% Digital Registration 62%+ Digital Payments Customer Acquisition & Employee Productivity Collection Management Servicing Well established digital presence 37
Slide 39: ESG
ESG ESG : Framework ESG : Purpose Create substantial and profound impact by actively promoting and nurturing a Key Performance Indicators sustainable culture within the workplace, fostering a sense of care and support ESG Policy for employees and undertake initiatives to develop sustainable communit
Slide 40: Making a Change
Making a Change Fedbank Financial Services Ltd. launched a transformative corporate social responsibility (CSR) initiative called Umeed. In collaboration with Sephrule foundation, the program has successfully supported over 700 women across six states by providing them with necessary financial assis
Slide 41: Thank You
THANK YOU investor@fedfina.com www.fedfina.com
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