Idfc First Bank Ltd. · NSE:IDFCFIRSTB
Idfc First Bank — FY2024 Earnings Presentation
101 slides from Idfc First Bank's earnings presentation, June 2024
Slide 1: Investor Presentation – FY24
Investor Presentation – FY24
Slide 2: Table of Contents
1 Introduction to IDFC FIRST Bank 3 2 Market Opportunity 9 3 Products and Services 13 4 Financial Highlights 19 5 Deposits and Borrowings 21 TABLE 6 Loans and Advances 30 OF 7 Risk Management & Asset Quality 33 CONTENTS 8 Profitability & Capital 46 9 Credit Rating 61 10 Board of Directors 63 11 Shar
Slide 3: Building a world class 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 Over 25 business lines. presence & wid
Slide 4: Section 1: Introduction to IDFC FIRST Bank
Section 1: Introduction to IDFC FIRST Bank
Slide 5: IDFC FIRST Bank Vision
Section 1: Introduction to IDFC FIRST Bank 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.” 4
Slide 6: Culture @ IDFC FIRST Bank
Section 1: Introduction to IDFC FIRST Bank Culture @ IDFC FIRST Bank (Annual Report 2022-23) (Annual Report 2022-23) (Annual Report 2021-22) We are a universal bank with highly diversified sources of income. Apart from lending, we have launched several other new businesses such as cash management, T
Slide 7: History of creation of IDFC FIRST Bank
Section 2: Introduction to IDFC FIRST Bank History of creation of IDFC FIRST Bank • IDFC Limited, a reputed Domestic Financial Institution, was awarded a commercial banking license and set up IDFC Bank. As part of this process, IDFC Limited transferred its corporate and infrastructure loans, infrast
Slide 8: Achievements of 5 Years since merger
Section 1: Introduction to IDFC FIRST Bank Achievements of 5 Years since merger (December 31, 2018 to March 31, 2024) Bank grew Retail deposits by 5-year CAGR of 63%. Total Bank is growing its PSL book organically in a sustainable Developed PSL Growing Deposits Customer deposits grew by 5 years CAGR
Slide 9: Guidance 2.0 (FY24 - FY29)
Section 1: Introduction to IDFC FIRST Bank Guidance 2.0 (FY24 - FY29) 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 Guid
Slide 10: Section 2: Market Opportunity
Section 2: Market Opportunity
Slide 11: Market Opportunity (Deposits)
Section 2: Market Opportunity Market Opportunity (Deposits) Total Deposits (March 2024) US$ Million • The Bank has a small share in the overall bank deposits of the country and hence has a significant opportunity for growth. • We realise that opportunity alone is not enough for Banking Industry grow
Slide 12: Market Opportunity (Retail, Rural & SME Loans)
Section 2: Market Opportunity Market Opportunity (Retail, Rural & SME 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 persona
Slide 13: Retail, Rural & SME Loans: Growth Opportunity for IDFC FIRST Bank
Section 2: Market Opportunity Retail, Rural & SME 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, esepcially for the Personal and SM
Slide 14: Section 3: Products and Services
Section 3: 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 15: Wide Product Suite of a Universal Bank
Section 3: 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 16: Wide bouquet of products for consumers, MSMEs and Corporates
Section 3: Products and Services The Bank has built a wide bouquet of products for consumers, MSMEs and Corporates Rural Finance: SME Banking: The bank provides a wide range of Corporate Banking: Retail Banking: For salaried & self-employed solutions including working capital and business loans Comp
Slide 17: Best-in-class Mobile Banking App
Section 3: Products and Services Bank has built a unique best-in-class Mobile Banking App with latest design and embedded solutions 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 Global Top-20 Banki
Slide 18: Our Digital Initiatives
Section 3: Products and Services Our Digital Initiatives Significant traction on electronic platforms Digital Transactions POS Transactions 95% 95% of the overall transactions YoY growth of 44% in volume 44% are digital and 40% in value UPI Transactions (Value) FASTag 62% Growth of ~62% for FY24 Ove
Slide 19: Highly successful launch of Wealth Management Business
Section 3: Products and Services Highly successful launch of Wealth Management Business • The Bank has created strong capabilities and wholistic customer propositions in Wealth Management and has grown the Wealth Management AUM from scratch to US$ 1,899 Million in the last 5 years after merger • In
Slide 20: Section 4: Financial Highlights – FY24
Section 4: Financial Highlights – FY24 19
Slide 21: Bank At a Glance, as of March 2024
Section 4: Financial Highlights – FY24 Bank At a Glance, as of March 2024 Loans & Advances1 Core Operating Income2 (FY24) US$ 24,213 Mn (25.1% YoY) US$ 2,680 Mn (32.6% YoY) Customer Deposits Core Operating Profit2 (FY24) US$ 23,344 Mn (41.6% YoY) US$ 727 Mn (30.9% YoY) Diversification Profit After T
Slide 22: Section 5: Deposits and Borrowings
Section 5: Deposits and Borrowings a. Customer Deposits b. CASA Deposits c. Diversification of Deposits d. Summary of Deposits and Borrowings e. Legacy High-Cost Borrowings f. Credit to Deposit Ratio
Slide 23: Strong growth in Total Customer Deposits
a. Total Customer Deposits Section 5: Deposits & Borrowings Deposits: Strong growth in Total Customer Deposits The Bank has built strong capabilities to consistently grow its Deposit Franchisee. Some of the key factors are mentioned below: • IDFC first bank is seen as an ‘Institution' YoY – Mar-24 v
Slide 24: CASA Deposits growth
b. CASA Deposits Section 5: Deposits & Borrowings CASA Deposits - Bank has a demonstrated capability to grow CASA deposits • The bank has reduced interest rates on savings account to only 3% for balances upto Rs. 1 lac (US$ 1.2K). • Yet, the CASA deposit continues to grow strongly by 32% YOY as of M
Slide 25: Healthy CASA Ratio at 47.2%
b. CASA Deposits Section 5: Deposits & Borrowings Healthy CASA Ratio at 47.2% • Average Daily Balance CASA Deposits for the bank grew by 28% YoY during the year. • Excluding the one-time short-term flow from a government banking client, CASA ratio as on March 31, 2024, would be 46.5%. Excluding the
Slide 26: Diversified liabilities base with 78% Retail Customer Deposits
c. Diversification of Deposits Section 5: Deposits & Borrowings Bank has a highly Diversified liabilities base with 78% Retail Customer Deposits • It is a strategic priority of the Bank to diversify the liability in favour of retail deposits to stabilize and improve the sustainability of the balance
Slide 27: Bank raised sticky Retail Deposits and repaid bulk deposits
d. Summary of Deposits & Borrowings Section 5: Deposits & Borrowings Bank raised sticky Retail Deposits and repaid short term or bulk deposits successfully Liability Mix (In US$ Million) • Retail Deposits were only 8% of the total deposits & Borrowings Certificate of Deposits 30,303 borrowings as of
Slide 28: Deposits & Borrowings Details
d. Summary of Deposits & Borrowings Section 5: Deposits & Borrowings Deposits & Borrowings Details The Bank has grown its customer deposits by 42% YOY driven by the retail deposits which was utilized for repayment of the legacy borrowings, certificate of deposits, and for the loan growth. Particular
Slide 29: Run down of legacy high cost long term borrowings
e. Legacy High Cost Borrowings Section 5: Deposits & Borrowings Bank continues to successfully run down the legacy high cost long term borrowings Balance Run off Schedule In US$ Mn RoI (%) As on Mar-23 As on Mar-24 H1-FY25 H2-FY25 FY26 Beyond FY26 Infrastructure Bonds 833 664 238 327 99 - 8.94% Long
Slide 30: Incremental CD ratio for FY24 is 76.2%
f. Credit to Deposit Ratio Section 5: Deposits & Borrowings Incremental CD ratio for FY24 is 76.2% for FY24 • Credit-Deposit ratio has improved consistently from 137% to 98.4% since merger and is likely to improve further going forward as the Bank continues to grow deposits • At the time merger the
Slide 31: Section 6: Loans & Advances
Section 6: Loans & Advances Bank has a well diversified Credit Portfolio
Slide 32: Loan book diversified across more than 25 business lines
Section 6: Loans & Advances The Bank has diversified its loan book across more than 25 business lines Infrastructure Financing 1% Loan Book: March 31, 2024 US$ 24,213 Mn Other Corporates incl SE/SR 1% Financial Institutions 8% Home Loan 11% Emerging Corporates 6% 28.5% Backed by Large Corporates 1%
Slide 33: Infrastructure financing book de-grew by 39%
Section 6: Loans & Advances Infrastructure Project financing Book de-grew by 39% and is now below 1.5% of loans & advances Infrastructure Financing Book (US$ Million) 36.7% % of Loans & Advances 3,233 19.4% 2,585 13.8% 1,725 9.2% 1,302 5.3% 830 2.9% 1.4% 562 341 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Ma
Slide 34: Section 7: Risk Management & Asset Quality
Section 7: Risk Management & Asset Quality a. 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 as of 31 March 2024 b. Break-down of NPA acro
Slide 35: Fundamental underwriting principle of the Bank
Section 7: Risk Management & Asset Quality The fundamental underwriting principle of the Bank explained (This has helped the bank maintain high asset quality) • The Bank lends on the basis of cash flow assessment – Cash Flow Assessment A. Where the cash flow of the borrower is assessed (Bank stateme
Slide 36: New Indian digital ecosystem for better controls in lending
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 • Biometric KYC - eKYC, cKYC, Aa
Slide 37: Risk Management Funnel for Retail, Rural & SME Loans
a. 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* We follow it up with This slide explains t
Slide 38: 10 Step Stringent Underwriting Process
a. Retail, Rural & SME Loans Section 7: Risk Management & Asset Quality The Bank has a 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, No-Go no. of credit in
Slide 39: Tightened underwriting norms and bounce rates
a. Retail, Rural & SME Loans Section 7: Risk Management & Asset Quality Bank has tightened underwriting norms across all products, which resulted in improved quality of loans originated First EMI Cheque / Mandate Bounce Rates of Presentation • First EMI (FEMI) represents Cheque 10.0% returns in the
Slide 40: High collection efficiency at 99.6%
a. Retail, Rural & SME Loans Section 7: Risk Management & Asset Quality The Bank maintains high collection efficiency at 99.6%, steady for last 24 months Definition: Collection Efficiency % = (Pos of EMI Collected for the Month)/(Pos of EMI Due for the month)* 100 Note: Collections does not include
Slide 41: SMA (pre-NPA) portfolio remains low
a. Retail, Rural & SME Loans Section 7: Risk Management & Asset Quality SMA (pre-NPA) portfolio continues to remain low; hence we expect low NPA formation going forward SMA-1 & SMA-2 portfolio as % of total Retail, Rural & SME Loan Book • SMA 1 is the overdue portfolio in Bucket 0.87% 0.85% 0.85% 0.
Slide 42: High Retail asset quality across cycles
a. 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 across cycles • In this segment, asset quality maintained through Economic slowdown, demonetization, GST, ILFS Crisis. • In Retail, Rural & SME
Slide 43: Low NPA ratios across retail, rural and SME segments
b. Break-down of NPA Section 7: Risk Management & Asset Quality All retail, rural and SME product segments continue to have low NPA ratios Segment Gross Advances Breakup (US$ Million) Gross NPA Net NPA Home Loan 2,690 0.75% 0.33% Retail, Rural & SME Loan Against Property 2,921 1.59% 0.67% Gross NPA
Slide 44: Stringent underwriting in Wholesale Financing
c. Wholesale Financing Section 7: Risk Management & Asset Quality Bank follows stringent underwriting process including customer selection, due diligence with focus on cash flows, smell check, granular exposure and risk-based approvals which has reduced concentration risk in Wholesale lending The Ba
Slide 45: Provision Coverage Ratio increased to 86.6%
d. Provision Coverage Ratio Section 7: Risk Management & Asset Quality Provision Coverage Ratio increased to 86.6% for the Bank Provision Coverage (Including technical write-offs) 86.6% 80.3% 70.3% 66.4% 63.6% 48.7% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 • Provision Coverage Ratio (excluding tech
Slide 46: Net Stressed Assets reduced to 0.56%
e. Net Stressed Assets Section 7: Risk Management & Asset Quality Net Stressed Assets reduced to only 0.56% of total Assets Net stressed Assets = Net NPA + Net SRs + Net Restructured Assets (OTR) • The Bank has reduced the net stressed assets, both in absolute 0.84% value and as % of the total asset
Slide 47: Section 8: Profitability & Capital
Section 8: 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 46
Slide 48: 30% YoY growth in Net Interest Income
a. Net Interest Income Section 8: Profitability & Capital 30% YoY growth in Net Interest Income during FY24 against balance sheet growth of 23% Net Interest Income (In US$ Million) 1,982 1,522 1,169 889 732 584 FY19* FY20 FY21 FY22 FY23 FY24 • Net Interest Margin (NIM) on AUM for FY24 was 6.36% as c
Slide 49: 40% YoY growth in Fee & Other Income
b. Fee & Other Income Section 8: Profitability & Capital 40% YoY growth in Fee & Other Income during FY24 Fee and Other Income (In US$ Million) 698 499 324 187 195 141 FY19* FY20 FY21 FY22 FY23 FY24 • Fee and other income as a % of total average assets improved from 1.93% in FY23 to 2.16% in FY24 *
Slide 50: Breakup of Fee & Other Income – FY24
b. Fee & Other Income Section 8: Profitability & Capital Breakup of Fee & Other Income – FY24 General Banking Fees & Others Loan Origination fees 25% 32% • The Bank has launched and scaled up many fee-based products in the last 5 years. • Many of these products are in the early stage of their lifecy
Slide 51: Cost to Income ratio and investments in foundation
c. Cost to Income Ratio Section 8: Profitability & Capital Cost to Income ratio is impacted by the investments required to build a strong foundation • At merger, the Bank had a low CASA at 8.68%. Our total deposits & borrowings were US$ 15,588 million, of which only US$ 1,253 million (8.04%) were re
Slide 52: New products launched and scaled up in last 2 years
c. Cost to Income Ratio Section 8: Profitability & Capital Bank has launched and scaled up many new products in the last 2 years Commercial Credit & Retail Assets Rural Products Retail Fee Businesses Wholesale Banking Prime Home Loans Commercial Vehicle Loans Gold Loans Wealth Management Constructio
Slide 53: Cost to Income ratio reduced from 95.1% to 72.9%
c. Cost to Income Ratio Section 8: Profitability & Capital Bank has reduced Cost to Income ratio from 95.1% to 72.9% in 5 years, despite investments • During the last three years the bank had to make significant investments in building liabilities and credit card franchise • Despite this, the cost i
Slide 54: Cost to Income Ratio improving with scale
c. Cost to Income Ratio Section 8: Profitability & Capital Cost to Income Ratio has been improving with scale Retail, Rural & SME Wholesale Banking 63.4% 38.1% 31.6% 33.6% 55.0% 55.0% FY22 FY23 FY24 FY22 FY23 FY24 Liabilities Credit Cards 198.0% 186.1% 240.0% 173.7% 164.6% 116.0% FY22 FY23 FY24 FY22
Slide 55: 31% YoY growth in Core Operating Profit
d. Core Pre-provisioning Operating Profit Section 8: Profitability & Capital 31% YoY growth in Core Operating Profit (excluding trading gains) during FY24 • The core operating profit (excluding trading gains) of the Bank is growing higher than the overall balance sheet growth. This demonstrates the
Slide 56: Operating Profit as % of total assets
d. Core Pre-provisioning Operating Profit Section 8: Profitability & Capital Operating Profit as % of total assets has improved meaningfully Core Pre-Provisioning Operating Profit (PPOP) as a % of Average Total Assets 2.25% 2.14% 1.56% 1.22% (Post-merger) 1.12% (Pre-merger standalone Bank) 0.76% 0.3
Slide 57: Turned profitable on sustained basis
e. Profitability and Return Ratios Section 8: Profitability & Capital Bank has turned profitable on sustained basis based on strong Operating Profits and low credit costs Net Profit (US$ Million) 356 • The Bank posted 6 quarters of losses 294 consecutively in FY19 and FY20 due to provision on legacy
Slide 58: Balance Sheet
f. Financial Statements Section 8: Profitability & Capital Balance Sheet Growth (%) In US$ Million Mar-23 Dec-23 Mar-24 (YoY) Shareholders' Funds 3,099 3,789 3,875 25.0% Deposits 17,426 21,994 24,166 38.7% - CASA Deposits 8,673 10,300 11,418 31.7% - Term Deposits 8,754 11,694 12,748 45.6% Borrowings
Slide 59: Annual Income Statement
f. Financial Statements Section 8: Profitability & Capital Annual Income Statement Growth (%) In US$ Million FY23 FY24 YoY Interest Income 2,738 3,653 33% Interest Expense 1,216 1,671 37% Net Interest Income 1,522 1,982 30% Fee & Other Income 499 698 40% Trading Gain 39 25 -36% Operating Income 2,06
Slide 60: Quarterly Income Statement
f. Financial Statements Section 8: Profitability & Capital Quarterly Income Statement Growth (%) In US$ Million Q4 FY23 Q3 FY24 Q4 FY24 YoY Interest Income 774 949 990 28% Interest Expense 341 433 452 33% Net Interest Income 433 517 538 24% Fee & Other Income 142 177 194 36% Trading Gain 26 6 4 -85%
Slide 61: Capital Adequacy Ratio is strong at 16.11%
g. Capital Adequacy Ratio Section 8: Profitability & Capital Capital Adequacy Ratio is strong at 16.11% as on March 31, 2024 In US$ Million Mar-23 Dec-23 Mar-24 Common Equity 2,990 3,674 3,728 Tier 2 Capital Funds 552 732 767 Total Capital Funds 3,542 4,406 4,495 Total Risk Weighted Assets 21,056 26
Slide 62: Section 9: Credit Rating
Section 9: Credit Rating
Slide 63: Long Term Credit Rating upgraded by CARE, CRISIL and ICRA
Section 9: 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 64: Section 10: Board of Directors
Section 10: Board of Directors
Slide 65: 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, 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 m
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. 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 Pay
Slide 68: Board of Directors
Section 10: 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 69: Section 11: Shareholding
Section 11: Shareholding
Slide 70: Shareholding Pattern as of March 31, 2024
Section 11: Shareholding Shareholding Pattern as of March 31, 2024 Scrip Name: IDFC FIRST Bank (BSE: 539437, NSE:IDFCFIRSTB) Other Body Trusts and Clearing Corporate (0.85%) Members (0.12%) President of India Others (0.02%) (3.70%) Total # of shares as of Mar 31, 2024 7,069.9 Million Public (25.88%)
Slide 71: Growth in book value per share
Section 11: Shareholding Growth in book value per share During the last 12 quarters, the BVPS Book Value Per Share reduced during the first few increased by 45% with the increasing In US$ 0.55 years after merger due to credit losses arising from profitability from the core business model legacy corp
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 High standards of corporate governance ESG @ IDFC FIRST Bank Creating social impact Dedicated ESG gove
Slide 74: ESG Highlights – Q4 FY24
Section 12: Progress on ESG ESG Highlights – Q4 FY24 Employee learning hours (25% y-o-y growth) One tree 20 being Women lakh+ planted for 20% Directors 16 every new on Board lakh+ Home Loan FY23 FY24 14,000+ active users of ~55% Rural borrowers are women 60% mental wellness Independent services Dire
Slide 75: Environmental and Awareness Initiatives
Section 12: 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 1.96 lakh EV two wheelers financed
Slide 76: Social and Governance initiatives
Section 12: Progress on ESG Social and Governance initiatives Social Governance Diversity Strong and experienced Board • Accelerating employee diversity through iBelong initiative. • 11 Board Committees; majorly chaired and constituted by Independent Directors. Responsible lending • Highly competent
Slide 77: ESG Commitments, Ratings and Governance
Section 12: Progress on ESG ESG Commitments, Ratings and Governance ESG Commitments ESG Governance • FY 2023 annual disclosures published through the Bank’s first Integrated Structure Report, aligned with Int’l IR framework, GRI and SASB • Official Participant of United Nations Global Compact (UNGC)
Slide 78: Recognitions for ESG Efforts
Section 12: 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 79: Section 13: Awards and Recognition
Section 13: Awards and Recognition
Slide 80: Awards and Recognition
Section 13 : 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 81: IDFC FIRST Bank
IDFC FIRST Bank We are building a world class bank with: - Highest levels of corporate governance - Stable balance sheet growth of ~20-22%, - Robust asset quality of GNPA < 2% and net NPA of < 1% - High teens ROE - Contemporary technology and - High levels of Customer Centricity. 80
Slide 82: 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 83: Thank You
Thank You IDFC FIRST Bank
Slide 84: Annexure 1: Performance of the Bank against stated goals
Annexure 1 Performance of the Bank against the stated goals 83
Slide 85: Performance against guidance given at the time of 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 FY24 Status (At Merger) CET – 1 Ratio 16.14% >12.5 % 13.36% On Track Capital Capital Adequacy (%) 16.51% >13.0 % 16.11% On Track 30% (FY24), CASA as a % of Deposits (%) 8.7
Slide 86: Performance against guidance given at the time of 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 FY24 Status (At Merger) Top 10 borrowers as % of Total Loans & Advances (%) 12.8% < 5% 2.00% Achieved GNPA (%) 1.97% 2.0% - 2.5% 1.88% Achieved Asset Quality NNPA (%) 0.95%
Slide 87: Annexure 2: Breakup of loans & advances
Annexure 2 Breakup of the loans & advances with YoY growth 86
Slide 88: 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) Mar-23 Dec-23 Mar-24 QoQ (%) YoY (%) Retail Finance 10,967 13,421 14,353 6.9% 30.9% - Home Loan 2,356 2,545 2,690 5.7% 14.2% - Loan Against Property 2,434 2,631 2,921 11.0% 20.0%
Slide 89: Annexure 3: Background of IDFC FIRST Bank
Annexure 3 Background of IDFC FIRST Bank – Merger of IDFC Bank and Capital FIRST
Slide 90: 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 91: Annexure 4: Capital First business model
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. 90
Slide 92: 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) 3,930 3,253 2,388 1,933 1,443 1,166 905 745 331 113 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 H1-FY19 91
Slide 93: 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 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: 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 96: 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 97: 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 98: Annexure 5: Proforma Financials before merger
Annexure 5 Proforma Financials before merger (H1-FY19) 97
Slide 99: Pre merger Proforma Financials – P&L (H1 FY19)
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 9,076 3,930 13,007 Net-Worth 1,780 353 2,133 NII 110 138 248 Fees & Other Income 31 18 49
Slide 100: Annexure 6: Quarterly Trend of Profit after Tax
Annexure 6 Quarterly Trend of Profit after Tax 99
Slide 101: Quarterly trend of Profit after Tax
Quarterly trend of Profit after Tax : Bank has turned profitable on sustained basis based on strong Operating Profits and low credit costs Quarterly Net Profit / Loss (US$ Million) 84 ^ 92 91 86 87 67 73 57 34 41 11 12 16 15 18 9 -26 COVID -45 2nd wave -74 -82 -76 Provisions on Infra DTA A/Cs • This