Idfc First Bank Ltd. · NSE:IDFCFIRSTB
Idfc First Bank — FY2024 Earnings Presentation
101 slides from Idfc First Bank's earnings presentation, April 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: 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 67%. 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: Market Opportunity
Section 2: Market Opportunity
Slide 11: Market Opportunity (Deposits)
Section 2: Market Opportunity Market Opportunity (Deposits) Total Deposits (March 2024) In Rs. Crore • The Bank has a small share in the overall bank deposits of the country and hence has a significant opportunity for growth. Banking Industry 2,12,67,757 • The Bank has built necessary capabilities t
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: 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: Digital Applications – Mobile Banking App
Section 3: Products and Services Digital Applications – Mobile Banking App : One stop Financial Solution 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 Banking Apps The Forrester Digit
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: Wealth Management AUM – Targeting Rs. 1 lakh crore
Section 3: Products and Services Wealth Management AUM – Targeting Rs. 1 lakh crore in the next 10 years • The Bank has created strong capabilities and wholistic customer propositions in Wealth Management and has grown the Wealth Management AUM from scratch to Rs. 15,762 crore in the last 5 years af
Slide 20: 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) Rs. 2,00,965 Cr (25.1% YoY) Rs. 22,245 Cr (32.6% YoY) Customer Deposits Core Operating Profit2 (FY24) Rs. 1,93,753 Cr (41.6% YoY) Rs. 6,030 Cr (30.9% YoY) Diversification Profit
Slide 22: 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. • The CASA deposit growth continues to be strong, growth of 32% YOY as of March
Slide 25: Healthy CASA Ratio at 47.2%
b. CASA Deposits Section 5: Deposits & Borrowings Healthy CASA Ratio at 47.2% • CASA Ratio stable at 47.2% as of March 31, 2024. • 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 a
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: Transformation of the liability portfolio
d. Summary of Deposits & Borrowings Section 5: Deposits & Borrowings The Bank carried out transformation of the liability portfolio by incrementally replacing the institutional borrowings and deposits by granular retail deposits Liability Mix (In Rs. crore) Incremental Growth Borrowings 2,51,512 (Rs
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 and for the growth of assets. Particulars (in Rs Cr) Mar-23 D
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 Rs. Cr RoI (%) As on Mar-23 As on Mar-24 H1-FY25 H2-FY25 FY26 Beyond FY26 Infrastructure Bonds 6,915 5,510 1,979 2,711 820 - 8
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: 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 Rs. 2,00,965 crore Other Corporates incl SE/SR 1% Financial Institutions 8% Home Loan 11% Emerging Corporates 6% 28.5% Backed by Large Corporate
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 (Rs. Crore) 36.7% % of Loans & Advances 26,832 19.4% 21,459 13.8% 14,315 9.2% 10,808 5.3% 6,891 2.9% 1.4% 4,664 2,830 Mar-18 Mar-19 Mar-20 Mar-21 M
Slide 34: 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 lending controls
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 improved quality of loans
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 product 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 (Rs. Crore) Gross NPA Net NPA Home Loan 22,325 0.75% 0.33% Retail, Rural & SME Loan Against Property 24,247 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: 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 Rs. Crore) 16,451 12,635 9,706 7,380 6,076 4,845 FY19* FY20 FY21 FY22 FY23 FY24 • Net Interest Margin (NIM) on AUM for FY24 was 6.36
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 Rs. Crore) 5,795 4,142 2,691 1,550 1,622 1,167 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%
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% • The Bank has launched and 32% 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 – Investment Requirements
c. Cost to Income Ratio Section 8: Profitability & Capital Cost to Income ratio – Investment Requirements • At merger, the Bank had a low CASA at 8.68%. Our total deposits & borrowings were Rs. 1,29,381 crores, of which only Rs. 10,400 crores (8.04%) were retail Deposits and Rs. 1,18,981 crores (91.
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 Wholesale Banking Rural Products Retail Fee Businesses 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 • 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
Slide 54: Cost to Income Ratio improving across segments
c. Cost to Income Ratio Section 8: Profitability & Capital Cost to Income Ratio has been improving for all business segments as they scale up 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% 1
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: 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 2.25% 2.14% 1.56% 1.22% (Post-merger) 1.12% (Pre-merger standalone Bank) 0.76% 0.32% H1 FY19 H2 FY
Slide 57: Sustained profitability and return ratios
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 (Rs. Crore) • The Bank posted 6 quarters of losses 2,957 consecutively in FY19 and FY20 due to 2,437 provision on lega
Slide 58: Balance Sheet
f. Financial Statements Section 8: Profitability & Capital Balance Sheet Growth (%) In Rs. Crore Mar-23 Dec-23 Mar-24 (YoY) Shareholders' Funds 25,721 31,451 32,161 25.0% Deposits 1,44,637 1,82,549 2,00,576 38.7% - CASA Deposits 71,983 85,492 94,768 31.7% - Term Deposits 72,655 97,057 1,05,808 45.6%
Slide 59: Annual Income Statement
f. Financial Statements Section 8: Profitability & Capital Annual Income Statement Growth (%) In Rs. Crore FY23 FY24 YoY Interest Income 22,728 30,323 33% Interest Expense 10,092 13,872 37% Net Interest Income 12,635 16,451 30% Fee & Other Income 4,142 5,795 40% Trading Gain 325 207 -36% Operating I
Slide 60: Quarterly Income Statement
f. Financial Statements Section 8: Profitability & Capital Quarterly Income Statement Growth (%) In Rs. Crore Q4 FY23 Q3 FY24 Q4 FY24 YoY Interest Income 6,424 7,879 8,219 28% Interest Expense 2,828 3,593 3,750 33% Net Interest Income 3,597 4,287 4,469 24% Fee & Other Income 1,181 1,469 1,610 36% Tr
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 Rs. Crore Mar-23 Dec-23 Mar-24 Common Equity 24,816 30,496 30,940 Tier 2 Capital Funds 4,585 6,075 6,367 Total Capital Funds 29,401 36,571 37,307 Total Risk Weighted Assets
Slide 62: 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: 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 ManagingDirector and CEO of IDFC FIRST Bank in December 2018 after the me
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: 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 706.99 Cr Public (25.88%) Promo
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 45.49 years after merger due to credit losses arising from profitability from the core business model legacy corporate
Slide 72: 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: 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%, - Robust asset quality of GNPA less than 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: Performing well on 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 Mar-24 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
Slide 86: Performing well on 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 Rs. Crore) Mar-23 Dec-23 Mar-24 YoY (%) QoQ (%) Retail Finance 91,027 1,11,397 1,19,131 30.9% 6.9% - Home Loan 19,552 21,126 22,325 14.2% 5.7% - Loan Against Property 20,199 21,834 24,247 20.
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 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 background
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: Trajectory of Growth and Profits at Capital First: AUM
Successful Trajectory of Growth and Profits at Capital First Financial Performance: The Asset Under Management has consistently grown at 5-Year CAGR of 29% 32,623 Asset Under Management (In Rs. Crore) 26,997 19,824 16,041 11,975 9,679 7,510 6,186 2,751 935 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY1
Slide 93: Trajectory of Growth and Profits at Capital First: PAT
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: Trajectory of Growth and Profits at Capital First: Cost to Income
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 improved over quarters
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: Trajectory of Growth and Profits at Capital First: Market Cap
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 in 6 years
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 First Proforma Total In Rs. Crore (H1 FY 19) (H1 FY 19) (H1 FY 19) Loans & Advances / AUM 75,332 32,623 1,07,955 Net-Worth 14,776 2,928 17,704 NII 912 1,143 2,055 Fees & Other Income
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 (Rs crore) 701^ 765 751 716 724 556 605 474 281 343 94 101 130 128 152 72 -218 COVID -370 2nd wave -617 -680 -630 Provisions on Infra