Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Q3 FY2025 Earnings Presentation
44 slides from Federal Bank Ltd. (india)'s earnings presentation, Jan 28, 2025
Slide 1: Investor Information Q3 FY 2025
Investor Information Q3 FY 2025
Slide 2: Disclaimer
Disclaimer IMPORTANT: This presentation has been prepared by The Federal Bank Limited (the “Bank”) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. All information contained has been prepared solely by t
Slide 3: Table of Content
TABLE OF CONTENT Pages 01 Key highlights 4-11 02 Business parameters 12-21 03 Distribution strategy and digital migration 22-29 04 Appendix 30-43
Slide 4: Key Highlights for Q3FY25
Quarter of Strategic Reorientation without Disruption All Time High Asset Quality at Decadal Best NET INTEREST OPERATING GROSS NPA NET NPA INCOME PROFIT 1.95% 0.49% ₹ 2,431 cr ₹ 1,569 cr ROA ROE EPS BVPS KEY 1.14 % 12.00 % 15.45 130.69 HIGHLIGHTS NIM Cost to Income Credit Cost Slippage Ratio FOR 3.1
Slide 5: Driving sustainable growth while safeguarding profitability
Driving sustainable growth while safeguarding profitability… DEPOSITS ADVANCES PROFITABILITY CASA + Dep <3Cr: (₹ in cr) Customer Assets1: (₹ in cr) Profitability: RoE* (%) RoA* (%) 14.80 2,16,207 2,17,214 13.65 1,97,975 YoY growth: 10% 2,34,782 2,38,199 12.00 QoQ growth: 0.5% 2,06,930 YoY growth: 15
Slide 6: Asset quality trends
Asset quality trends Asset Quality at decadal best reflecting balance sheet resilience GNPA (%) NNPA (%) PCR (%)1 2.29 0.64 2.13 2.11 2.09 0.60 0.60 74.21 1.95 0.57 0.49 71.82 71.08 71.08 70.79 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2
Slide 7: Asset quality trends (contd)
Asset quality trends (contd) Std Restructured Ac Net NPA Net SR ₹ in cr Asset quality continues to remain robust across 69 all segments 1,393 1,205 1,284 Provision Coverage Ratio 1,255 increased to 74.21% 1,131 3,536 2,830 2,027 2,200 1,560 Recovery & Upgradation Q4 FY22 Q4 FY23 Q4 FY24 Q3 FY24 Q3 F
Slide 8: Key ratios
Key ratios# Operating performance remains robust, with key ratios consistently stable RoA (%)* RoE (%)* Net interest margin (%)* 14.80 3.19 3.21 3.16 1.39 13.64 13.65 3.12 3.11 1.22 1.27 1.28 12.75 1.14 12.00 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4
Slide 9: Key P&L parameters
Key P&L parameters Highest ever Net Interest Income & Operating Profit ₹ in cr Net interest income Fee Income & Other income Highest ever 964 915 916 863 2,431 180 160 2,292 2,367 754 2,195 261 2,123 238 139 784 756 625 615 654 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25
Slide 10: Comparison: Y-o-Y
Comparison: Y-o-Y ₹ in cr Retail Wholesale Retail* BuB* CVCE* COB* 13% 13% 39% 25% Advances 60,427 -> 68,008 Gold*^ 16,715 -> 18,923 Agri & Allied*^ 3,057 -> 4,235 MFI* 20,744 -> 25,880 CIB* 31% 11% 50% 8% 23,917 -> 31,426 7,339 -> 8,138 2,757 -> 4,123 71,978 -> 77,465 CASA Average CASA CASA Ratio N
Slide 11: Comparison: Q-o-Q
Comparison: Q-o-Q ₹ in cr Retail Wholesale Retail* BuB* CVCE* COB* -1% 1% 8% 6% Advances 67,440 -> 68,008 Gold*^ 19,121 -> 18,923 Agri & Allied*^ 3,932 -> 4,235 MFI* 24,493 -> 25,880 CIB* -1% 6% 1% 1% 29,722 -> 31,426 8,027 -> 8,138 4,093 -> 4,123 77,954 -> 77,465 CASA Average CASA CASA Ratio NRE De
Slide 12: Liability trends
Liability trends Resilient and reliable liability franchise Deposits End Period (₹ in cr) CA, SA & CASA End Period (₹ in cr) and CASA ratio (%) CA SA (Incl Bespoke) xx CASA Ratio (%) 29.27 30.07 30.16 30.63 29.38 77,883 80,926 80,345 CASA + Deposits < 3Cr Other YoY growth: 11% 73,388 74,200 2,66,065
Slide 13: Credit portfolio distribution
Credit portfolio distribution Aligned with our strategic growth objectives Gross Advances (₹ in cr) Yield on advances (%) Corporate* Commercial* Retail Book* 2,33,749 9.39 2,12,623 2,02,475 1,77,377 YoY growth: 8% 77,465 9.37 1,47,639 73,596 71,978 25,880 65,731 21,457 YoY growth: 25% 52,094 20,744
Slide 14: Credit portfolio distribution
Credit portfolio distribution Loan book by interest rate type(%) (Retail & SME)* as % of loan book (₹ in cr) EBM Fixed MCLR Others 51% 250000 48.4% 48.3% 48.2% 200000 48.0% 30% 47.8% 150000 47.6% 9% 47.5% 10% 47.4% 100000 47.3% 0.4% 47.2% 1.0% 47.0% 50000 1.4% 46.8% 0 46.6% Q1 FY25 Q2 FY25 Q3 FY25 7
Slide 15: Retail Banking
Retail Banking Focus on prudent growth, aligned with evolving macro conditions Retail book mix (Dec-24) Retail advances mix (Excl Gold, BuB, Agri, CV/CE & MFI) (₹ in cr) 9,402 3% 3% 8,857 8,706 3,444 6% 2,992 3,774 3,845 2,778 Retail* 7,447 3,647 8,470 2,393 1,486 7,302 6,775 14% Gold*^ 6,751 5,448
Slide 16: Wholesale Banking
Wholesale Banking Driving growth in targeted segments to optimize yield performance Wholesale portfolio mix (Dec-24) Wholesale portfolio (₹ in cr) Q3 FY25, CoB*, 24% Q3 FY24, CoB*, 21% CoB* CIB* Q3 FY24, 1,08,704 Q3 FY25, CIB*, 79% 1,00,867 98,731 CIB*, 76% 86,723 CoB* CIB* 68,985 82,421 YoY growth:
Slide 17: High margin lending products
High margin lending products High Yielding Segment1 Credit Cards 4 3,444 24% Gross advances 25.8% YoY growth (INRcr) 24.6% Gross Advances share Dec-24 Personal Loans 4 3,774 Dec-23 +120 bps 3% Gross advances YoY growth (INRcr) Digital loan platform 75.4% 74.2% MSME (BuB + CoB) 44,803 481 Cr 20% Gros
Slide 18: Select high margin lending products
Select high margin lending products CV / CE Gold loans Micro Advances 31,426 Portfolio (₹ in cr) 4,235 YoY 29,722 4,123 YoY 3,932 YoY 4,093 23,917 3,057 39% 31% 2,757 50% QoQ QoQ QoQ 8% 6% 1% Q3 FY24 Q2 FY25 Q3 FY25 Q3 FY24 Q2 FY25 Q3 FY25 Q3 FY24 Q2 FY25 Q3 FY25 Disbursements: PSL: No of Accounts:
Slide 19: Rating distribution
Rating distribution Rating distribution (CIB) Rating distribution (advances excluding CIB) External rating of CIB advances Internal rating of advances excluding CIB Q3 FY25 16% 1% 14% 8% 8% 2% Q3 FY25 5% Q2 FY25 5% 17% 30% 17% 32% 76% 75% Q2 FY25 17% 18% A & Above BBB <BBB OTHERS 29% Internal Rating
Slide 20: Fee income / other income
Fee income / other income Diversified and granular fee income ₹ in Cr Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 QoQ YoY Loan processing fee 149 186 174 193 181 -6% 21% Cards 181 207 191 208 208 0.1% 15% Para banking 63 56 46 74 62 -16% -2% Banking commissions & exchanges 72 70 72 75 77 3% 7% General s
Slide 21: Capital position
Capital position Adequately capitalized with a self-sustaining capital structure ₹ in Cr Sep-24 Dec-24 Risk weighted assets Credit risk 182,505 1,82,520 Market risk 2,616 2,652 Operational risk 17,484 17,484 Total RWA 202,605 202,656 Tier-I capital funds 28,000 27,923 Tier-II capital funds 2,802 2,8
Slide 22: Distribution: Deriving efficiency from footprint
Distribution: Deriving efficiency from footprint Continuous investment in expanding Pan India footprint Dec-24 Dec-23 Dec-24 1 14% 46 17% Banking 1 new Outlets 14% 17% 1,438 1,550 Outlets# 38 opened till Dec ‘24 3 2 ATMs/ 1,962 2,054 32 Sep-24 19% 19% Recyclers* 27 2 LITE BRANCH 15 35 16 50% 11 3 HE
Slide 23: Innovation through partnerships
Innovation through partnerships Liability Instant Digital Partners Loans EMIs and Credit Merchant Cards Payments Gold Loan and Cross Border Priority remittance Lending partners Support Systems 23
Slide 24: Growth through partnerships
Growth through partnerships Partners Business Share in Q3FY’25 Key metrics1 Cards Issued: ENR: 1.1 1.2 1.1 1.1 Co-branded 1.0 1.0 1.0 1.0 1.0 1.0 credit cards 70% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Card programs under CUG3 TD Balance CASA Balance: 3% 1.2 1.3 1.3 1.
Slide 25: Digitization as a Multiplier
Digitization as a Multiplier 551 Edu. Institutions 340 HUMAN AT THE CORE Feddy is Live on onboarded to Fee RPA Process collection Solution “Careerbook” 92% running Approx 6.2 Lakh transactions queries answered Serviced by Feddy in this Digitally (Retail 21K ₹ cr + Corporate) 790 quarter Retail Mobil
Slide 26: Digitization as a Multiplier: Major Initiatives
Digitization as a Multiplier Major Initiatives Consistently at the forefront of tech innovation FedCorp Version 2.7 FedOne FedMobile: Hospicash • Fund transfer limit enhancements. • Real-time Account Dashboard We launched Star Group Hospicash Insurance • Fund Transfer between own accounts. • Bulk Pa
Slide 27: Digital migration
Digital migration Steadfast digital migration consistency maintained Branch vs. Digital Transactions (₹ in Lakh)* Corporate Digital Products - Active Users1 94.30% 50,000 44,658 46,013 8000 250 93.82% 94% 40,482 42,060 219 93.60% 38,065 45,000 6,771 7000 185 6,444 6,593 93% 6,059 40,000 200 6000 171
Slide 28: Strengthening our presence in Transaction Banking offerings
Strengthening our presence in Transaction Banking offerings Enhanced Adoption of Digital Channels across Corporate Clients Improving Adoption 1.5x growth in penetration of Improving Digital Volumes corporate clients 1.84x growth in API calls recorded on a YoY basis. Growing Digital Solutions Federal
Slide 29: Digital lending and card spends
Digital lending and card spends Digital Personal Card spends (₹ in Cr)1 Loans 1,40,000 3,788 3,800 1600 1,900 Credit Cards – Market share 1,32,843 1,462 1,429 1,380 1,390 1,30,000 1,24,237 3,600 1400 1,347 1,850 Cards O/s: Spends: 1,21,718 1,17,607 1,16,109 3,567 1.4% 1.2% 1,20,000 3,400 1200 1,800
Slide 30: Appendix
Appendix FEDERAL BANK YOUR PERFECT BANKING PARTNER
Slide 31: Balance sheet & shareholding pattern
Balance sheet & shareholding pattern ₹ in Cr Sep-24 Dec-24 Share holding pattern (Dec-24) LIABILITIES Capital 490 491 Reserves & surplus 30,966 31,843 Deposits 2,69,107 2,66,375 25% Borrowings 23,749 28,690 36% Other liabilities & provisions 11,231 12,505 TOTAL 3,35,543 3,39,905 ASSETS 2% Cash & bal
Slide 32: Financials
Financials ₹ in Cr Q3 FY24 Q2 FY25 Q3 FY25 Q-o-Q Y-o-Y Interest income 5,730 6,577 6,809 4% 19% Interest expenses 3,607 4,210 4,377 4% 21% Net interest income 2,123 2,367 2,431 3% 15% Other income 863 964 916 -5% 6% Operating expense 1,549 1,766 1,778 1% 15% Total income 6,593 7,541 7,725 2% 17% Tot
Slide 33: Key Indicators
Key Indicators Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Book Value 115.41 119.45 123.80 126.86 130.69 (Per Share in ₹) Shareholder value EPS 16.54 14.97 16.60 17.11 15.45 (annualized) CASA + Deposits < ₹3Cr Granularity (% of Total Deposits) 83% 82% 80% 80% 82% ROA % 1.39 1.22 1.27 1.28 1.14 Profitabi
Slide 34: Fresh slippages break up
Fresh slippages break up ₹ in cr Fresh slippages NPA Composition Retail Agri BuB CV/CE CoB CIB Q2 FY25 Q3 FY25 479 486 Business NPA NPA 41 Gross NPA 78 428 417 19 Retail 1,841 1,760 17 33 11 45 Agri 969 1,014 49 352 12 63 BuB 948 777 14 23 62 CV/CE 66 81 7 123 74 CoB 613 567 55 88 71 Corporate 447 3
Slide 35: Top Sectors in Advance Portfolio as per Basel 3 Disclosure
Top Sectors in Advance Portfolio as per Basel 3 Disclosure# Infrastructure (Pertaining to Industries 10.40% Sector Only) Industry 30.54% Chemicals and Chemical Products (Dyes, 3.10% Paints, etc.) Food Processing 2.68% Services 28.42% Textiles 2.57% Retail Loans 26.49% All Engineering 2.36% Basic Met
Slide 36: Top 20 concentration as a percentage of portfolio
Top 20 concentration as a percentage of portfolio Top 20 Borrowers & Depositors concentration as a % of total portfolio 10.94 10.71 10.77 10.89 10.65 10.32 10.11 10.03 8.43 7.51 7.43 6.87 7.03 6.66 5.83 5.19 4.81 4.51 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 % Top 20 Borrowers
Slide 37: Group companies
Group companies Fedbank Financial Services Subsidiary Federal Operations & Services (FedServ) Subsidiary 61.04% 100% A wholly owned subsidiary company of Federal Bank Marketing Retail Asset Products of the Bank Provides operational & technology-oriented services to Retail Hubs established at
Slide 38: Fedbank Financial Services Subsidiaries – Q3FY25 update
Fedbank Financial Services Subsidiaries – Q3FY25 update NPAs Gross NPA and Net NPA stands Disbursals at 1.9% & 1.0%, respectively. ₹4395 Cr disbursed in Q3FY25, reflecting KEY HIGHLIGHTS growth of 31.4% YoY. 61.04% stake held by Federal Bank Limited For Q3FY25, ROA and ROE reported at Contained
Slide 39: Corporate governance & ESG snapshot
Corporate governance & ESG snapshot Strong & Diverse 11 73% Total Board Independent Strong Board & Diverse Board Members Directors Women Women Focus on Gender 43% 18% Representation Representation diversity in workforce in the Board Diversity & Inclusion Social Responsibility Governance Structure De
Slide 40: Public Commitments
ESG performance snapshot Finance women Grow green portfolio In-house solar power Water conservation Bank Premises to be Gender diversity ratio Public Commitments entrepreneurs – size generation capacity capacity green certified (Women) BC Channel Greater than or Target metric ₹ 13,000 Cr 500KW 1 Lak
Slide 41: Award-winning franchise & other initiatives / highlights
Award-winning franchise & other initiatives / highlights Federal Bank wins the Celebrating Rishta through the festive season “SKOCH Silver Award” for Conversational Banking SKOCH summit 2024 “Savings weds Deposits” Collaboration Wedding with Campaign Vidya Balan at Delhi Federal Bank elevates Federa
Slide 42: Marketing initiatives & other highlights
Marketing initiatives & other highlights Federal Bank Raipur Soldierathon Federal Bank Marathon @ Pune Federal Bank Marathon @ Madurai for Army & Defence forces Fostering lasting Rishtas Sonu Nigam @ Kochi Sithara @ Kochi Falguni Pathak show @ Mumbai 42
Slide 43: External ratings
External ratings Fixed Deposit A1+ (Short term) Fixed Deposit AAA Certificate of Deposit A1+ India Ratings Tier 2 (Capital) Bonds & Research Pvt Ltd, IND AA+ CARE AA+ CARE Infrastructure Bonds IND AA+ CARE AA+ Fixed Deposits (short term) and Certificate of Deposits enjoy highest rating in that class
Slide 44: Thank You
Thank You 44