Idfc First Bank Ltd. · NSE:IDFCFIRSTB
Idfc First Bank — Q3 FY24 Earnings Presentation
111 slides from Idfc First Bank's earnings presentation, January 2024
Slide 1: Investor Presentation – Q3 FY24
Investor Presentation – Q3 FY24
Slide 2: Table of Contents
1 IDFC FIRST Bank Vision 2 2 Our Approach to building IDFC FIRST Bank 7 3 Guidance 2.0 12 4 Financial Highlights – Q3 FY24 16 5 Market Opportunity 19 6 Products and Services 23 TABLE 7 Deposits and Borrowings 30 OF 8 Loans and Advances 39 CONTENTS 9 Risk Management & Asset Quality 42 10 Profitabilit
Slide 3: Section 1: IDFC FIRST Bank Vision
Section 1: IDFC FIRST Bank Vision
Slide 4: 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.” 3
Slide 5: 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 in Annual Report FY19-20 4
Slide 6: 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 7: Culture @ IDFC FIRST Bank
Section 1: Vision Culture @ IDFC FIRST Bank (Annual Report 2022-23) (Annual Report 2022-23) We are building a solid foundation for the long run. I request you to be patient and stay with us in the journey of building this institution. If we hurry, we will make mistakes. (Annual Report 2022-23) (Annu
Slide 8: Section 2: Our approach to building IDFC FIRST Bank
Section 2: Our approach to building IDFC FIRST Bank
Slide 9: Background
Section 2: Approach to build IDFC FIRST Bank Background • 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/infrastructure loan assets, infrastructure bonds, instituti
Slide 10: Our approach to building IDFC FIRST Bank (1/3)
Section 2: 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, 92% of our liabilities were institutional. To address this, we prudently slowed down the loan growth to CAGR of only 5.1% for 3 years (2019-2022), an
Slide 11: Our approach to building IDFC FIRST Bank (2/3)
Section 2: Approach to build IDFC FIRST Bank Our approach to building IDFC FIRST Bank (2/3) In retail we have a track record of nearly 14 years (estimated at March 31, 2014) of maintaining our GNPA and Net NPA at around 2% and 1% respectively. During this period, we have experienced multiple stress-
Slide 12: Our approach to building IDFC FIRST Bank (3/3)
Section 2: 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 exception of CSR, are led by independent directors. Corporat
Slide 13: Section 3: Guidance 2.0
Section 3: Guidance 2.0
Slide 14: Guidance 2.0 (FY24 - FY29): Background
Section 3: Guidance 2.0 Guidance 2.0 (FY24 - FY29): Background 1. 5 Years: As of 31/12/2023, IDFC FIRST Bank has completed exactly 5 years post the merger of IDFC Bank and Capital First. 2. Guidance 1.0: At the time of the merger, the Bank had put out certain guidance (Guidance 1.0) for FY 25. 3. Li
Slide 15: Guidance 2.0: Key Achievements during last 5 Years
Section 3: Guidance 2.0 Guidance 2.0 (FY24 - FY29): Key Achievements during last 5 Years Between December 31, 2019 and December 31, 2023, the Bank has made strong progress in building the foundation, including investments in branches, ATMs, analytics, data, people, products and culture. We expect to
Slide 16: Guidance 2.0: Key Targets for FY29
Section 3: Guidance 2.0 Guidance 2.0 (FY24 - FY29): Key Targets for FY29 • The Bank has exceeded, met or most likely to meet most targets as provided under Guidance 1.0. • We have a strong proven business model that is incrementally very profitable. Basis this model, we could do necessary investment
Slide 17: Section 4: Financial Highlights – Q3 FY24
Section 4: Financial Highlights – Q3 FY24
Slide 18: Bank At a Glance, as of December 2023
Section 4: Financial Highlights – Q3 FY24 Bank At a Glance, as of December 2023 Loans & Advances1 Core Operating Income2 (9M-FY24) US$ 22,828 Mn (24.5% YoY) US$ 1,948 Mn (34.7% YoY) Customer Deposits Core Operating Profit2 (9M-FY24) US$ 21,263 Mn (42.8% YoY) US$ 530 Mn (34.7% YoY) Diversification Pr
Slide 19: Key Financial Highlights of 9M FY24
Section 4: Financial Highlights – Q3 FY24 Key Financial Highlights of 9M FY24 Area Key Parameters 9M FY23 9M FY24 Growth (%/bps) Assets Loans & Advances1 US$ 18,332 Mn US$ 22,828 Mn 24.5% Customer Deposits US$ 14,889 Mn US$ 21,263 Mn 42.8% Deposits CASA Ratio (%) 49.98% 46.83% -315 bps GNPA (%) – Ba
Slide 20: Section 5: Market Opportunity
Section 5: Market Opportunity
Slide 21: Market Opportunity (Deposits)
Section 5: Market Opportunity Market Opportunity (Deposits) • Total Deposit for all scheduled banks in India currently is US$ 2,385 Billion which is growing at 14.0% YOY as per the RBI data (15-Dec-2023) • IDFC FIRST Bank is 0.92% of the overall bank deposits and has significant room for growth goin
Slide 22: Market Opportunity (Retail, Rural & SME Loans)
Section 5: 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 23: Retail, Rural & SME Loans: Growth Opportunity for IDFC FIRST Bank
Section 5: 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 24: Section 6: Products and Services
Section 6: 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 25: The Bank has developed a wide Product Suite of a Universal Bank
Section 6: 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 26: A wide bouquet of products for consumers, MSMEs and Corporates
Section 6: Products and Services The Bank has built a wide bouquet of products for consumers, MSMEs and Corporates Retail Banking: For salaried & self-employed individuals, the SME Banking: The bank provides a wide Corporate Banking: Bank provides various products to fulfill different financial need
Slide 27: Wide Range of Current and Savings Account Offerings
Section 6: Products and Services The Bank has a wide range of Current and Savings Account Offerings • Targeted at SMEs and Entrepreneurs • Auto - Sweep funds into a FD above 2 lacs balance in the current account • No pre-mature breakage penalty for breakage of FDs • Nil average monthly balance requi
Slide 28: Our Digital Initiatives
Section 6: Products and Services Our Digital Initiatives Significant traction on electronic platforms RTGS & NEFT 95% Ranked 3rd UPI value: Growth of ~68% for payments through CMS Of the overall Bharat Bill Payment 9M FY24 over the last year solutions up by 19% YoY (vol.) transactions are System (BB
Slide 29: India's FIRST FASTAG with Triple Benefits – Toll, Fuel and Parking
Section 6: 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 16.6
Slide 30: Wealth Management AUM up 37% YoY to US$ 1,459 Million
Section 6: Products and Services Wealth Management AUM up 37% YoY to US$ 1,459 Million 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-
Slide 31: Section 7: Deposits and Borrowings
Section 7: 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 32: IDFC FIRST Bank – Drivers for Deposit Growth
Section 7: Deposits & Borrowings IDFC FIRST Bank – Drivers for Deposit Growth 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' • High focus on customer service • Customer fr
Slide 33: Deposits: Strong growth in Total Customer Deposits
b. Total Customer Deposits Section 7: Deposits & Borrowings Deposits: Strong growth in Total Customer Deposits • Total Customer Deposits (Retail Deposits + Wholesale Deposits) has grown well at a 5 Year CAGR (Dec-18 to Dec-23) of 36%. • Our core Retail deposits has risen strongly at a 5-Year CAGR of
Slide 34: CASA Deposits - demonstrated capability to grow CASA deposits
a. CASA Deposits Section 7: 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 29% YOY as of Decemb
Slide 35: CASA Ratio at 46.8%
a. CASA Deposits Section 7: Deposits & Borrowings CASA Ratio at 46.8% • CASA Ratio stable at 46.8% as of December 31, 2023. • Average Daily Balance CASA Deposits for the bank grew by 27% YoY during the first nine months of the year. 51.7% 48.4% 49.8% 46.5% 46.4% 46.8% 31.9% 11.5% 11.4% 8.7% 31 Mar 1
Slide 36: Highly Diversified liabilities base with 79% Retail Customer Deposits
c. Diversification of Deposits Section 7: Deposits & Borrowings Bank has a highly Diversified liabilities base with 79% 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 37: Deposits & Borrowings Details
d. Summary of Deposits & Borrowings Section 7: Deposits & Borrowings Deposits & Borrowings Details The Bank has grown its deposits by 43% YOY driven by the retail deposits which was utilized for growth of assets and repayment of the legacy borrowings. Particulars (in US$ Million) Dec-22 Sep-23 Dec-2
Slide 38: Run down of legacy high cost long term borrowings
e. Legacy High Cost Borrowings Section 7: Deposits & Borrowings Bank continues to successfully run down the legacy high cost long term borrowings Balance Run off Schedule In US$ Million RoI (%) As on Dec-22 As on Dec-23 Q4-FY24 FY25 FY26 Beyond FY26 Infrastructure Bonds 909 711 - 610 100 - 8.94% Lon
Slide 39: Credit-Deposit ratio
Credit-Deposit ratio • At the time merger the bank had high Credit to Deposit ratio (CD ratio) because it was largely funded with bonds & borrowings. • Bonds and borrowings are equally stable money as deposits, as they are repayable only on maturity dates. • The bank has been continuously raising mo
Slide 40: Section 8: Loans & Advances
Section 8: Loans & Advances Bank has a well diversified Credit Portfolio
Slide 41: Loan book diversified across more than 20 business lines
Section 8: Loans & Advances The Bank has diversified its loan book across more than 20 business lines Emerging Enterprises Financial Institutions 5% 8% Other Corporates 2% Loan Book: December 31, 2023 Large Corporate 1% Infrastructure Financing US$ 22,828 Mn Other SME Loans 5% 1.58% Gold Loans 0.41%
Slide 42: Infrastructure Project financing Book below 2% of funded assets
Section 8: Loans & Advances Bank has run down Infrastructure Project financing Book to below 2% of funded assets Infrastructure Financing Book (US$ Million) 36.7% 3,233 % of Loans & Advances 19.4% 2,585 13.8% 1,725 9.2% 1,302 5.3% 830 2.9% 1.6% 562 361 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-2
Slide 43: Section 9: Risk Management & Asset Quality
Section 9: 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 44: Fundamental underwriting principle of the Bank
Section 9: 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 45: Use of the new Indian digital ecosystem for better controls in lending
Section 9: 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 46: Break-down of asset quality by business components
a. Break-down of NPA Section 9: 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 18,785 1.45% 0.51% 86.36% Finance
Slide 47: Risk Management Funnel for Retail, Rural & SME Loans
b. Retail, Rural & SME Loans Section 9: 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 48: 10 Step Stringent Underwriting Process (1/2)
b. Retail, Rural & SME Loans Section 9: 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 49: 10 Step Stringent Underwriting Process (2/2)
b. Retail, Rural & SME Loans Section 9: 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 50: Tightened underwriting norms resulting in low cheque bounces
b. Retail, Rural & SME Loans Section 9: Risk Management & Asset Quality Bank has tightened underwriting norms across all products, which has resulted in low cheque bounces on presentation • First EMI (FEMI) represents Cheque 9.9% returns in the FIRST month after Booking. It is thus a direct indicato
Slide 51: High collection efficiency at 99.6%
b. Retail, Rural & SME Loans Section 9: Risk Management & Asset Quality Low cheque bounces is further supported by high collection efficiency at 99.6% Definition: Collection Efficiency % = (Pos of EMI Collected for the Month)/(Pos of EMI Due for the month)* 100 Note: Collections does not include any
Slide 52: High collection efficiency leads to low SMA
b. Retail, Rural & SME Loans Section 9: Risk Management & Asset Quality High collection efficiency leads to low SMA 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% 31-60 days, and SMA 2 is the overdue 0.82% 0.77% portfo
Slide 53: High Retail asset quality across cycles
b. Retail, Rural & SME Loans Section 9: 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 54: Product wise NPA
b. Retail, Rural & SME Loans Section 9: Risk Management & Asset Quality Product wise NPA All products have low NPA 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%, a resul
Slide 55: Stringent Underwriting Process in Wholesale Business
c. Wholesale Financing Section 9: 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 56: Reduced concentration risk in Wholesale lending
c. Wholesale Financing Section 9: 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 15% in Dec-23 from 19% in Mar-1
Slide 57: Provision Coverage Ratio increased to 84.68%
d. Provision Coverage Ratio Section 9: Risk Management & Asset Quality Provision Coverage Ratio increased to 84.68% for the Bank 84.68% 80.29% 70.29% 66.40% 63.57% 48.67% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-23 Note: Provision Coverage Ratio as shown above are including technical write-offs, becau
Slide 58: Net Stressed Assets reduced to 0.66% of total Assets
e. Net Stressed Assets Section 9: Risk Management & Asset Quality Net Stressed Assets reduced to only 0.66% of total Assets Net stressed Assets = Net NPA + Net SRs + Net Restructured Assets (OTR) • The Bank has reduced the net 1.15% stressed assets, both in absolute value and as % of the total asset
Slide 59: Section 10: Profitability & Capital
Section 10: 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 h. Liquidity Coverage Ratio 58
Slide 60: 33% YoY growth in Net Interest Income during 9M FY24
a. Net Interest Income Section 10: Profitability & Capital 33% YoY growth in Net Interest Income during 9M FY24 Net Interest Income (In US$ Million) 33% increase in NII in 9M FY24 on YoY basis against balance sheet growth of 22% YoY 1,522 1,444 4Y CAGR: 27% 1,169 1,089 889 732 30% 584 32% 21% 25% FY
Slide 61: 41% YoY growth in Fee & Other Income during 9M FY24
b. Fee & Other Income Section 10: Profitability & Capital 41% YoY growth in Fee & Other Income during 9M FY24 Fee and Other Income (In US$ Million) 41% increase in Fee and Other income in 9M FY24 on YoY basis 499 504 4Y CAGR: 37% 357 324 54% 187 195 66% 141 5% 33% FY19* FY20 FY21 FY22 FY23 9M FY23 9
Slide 62: Breakup of Fee & Other Income – 9M FY24
b. Fee & Other Income Section 10: Profitability & Capital Breakup of Fee & Other Income – 9M FY24 General Banking Fees & Others Loan Origination fees • The Bank has launched and 26% 33% scaled up many fee-based products in the last 5 years. • Many of these products are in the early stage of their li
Slide 63: Cost to Income ratio – Investment Requirements
c. Cost to Income Ratio Section 10: Profitability & Capital Cost to Income ratio – Investment Requirements • 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 retail Deposits and US$ 14,335 Million (91.9
Slide 64: Many new products launched and scaled up in the last 2 years
c. Cost to Income Ratio Section 10: 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 Constructi
Slide 65: Cost to Income ratio from 95% to 73% in 5 years
c. Cost to Income Ratio Section 10: Profitability & Capital Bank has reduced Cost to Income ratio from 95% to 73% 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 dow
Slide 66: 35% YoY growth in Core Operating Profit during 9M FY24
d. Core Pre-provisioning Operating Profit Section 10: Profitability & Capital 35% YoY growth in Core Operating Profit (excluding trading gains) during 9M FY24 • The core operating profit (excluding trading gains) of the Bank is growing higher than the overall balance sheet growth. This demonstrates
Slide 67: Improving Operating Profit as % of total assets
d. Core Pre-provisioning Operating Profit Section 10: Profitability & Capital Improving Operating Profit as % of total assets Core Pre-Provisioning Operating Profit (PPOP) as a % of Average Total Assets 2.29% 2.14% 2.11% 1.56% 1.22% 1.11% (Post-merger) (Pre-merger 0.76% standalone Bank) 0.32% H1 FY1
Slide 68: Turned profitable on sustained basis
e. Profitability and Return Ratios Section 10: Profitability & Capital 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 67 73 57 34 41 9 11 12 16 15 18 -26 -45 COVID -74 2nd wave -76 -82 Provi
Slide 69: Consistent improvement in ROA and ROE
e. Profitability and Return Ratios Section 10: Profitability & Capital Consistent improvement in ROA and ROE Return on Equity (%) Return on Assets (%) 10.79% 10.67% 9.95% 1.13% 1.16% 1.05% 2.64% 0.29% 0.73% 0.08% FY21 FY22 FY23 9M FY23 9M FY24 FY21 FY22 FY23 9M FY23 9M FY24 RoA(%) and RoE(%) are ann
Slide 70: Balance Sheet
f. Financial Statements Section 10: Profitability & Capital Balance Sheet Growth (%) In US$ Million Dec-22 Sep-23 Dec-23 (YoY) Shareholders' Funds 2,735 3,334 3,789 38.6% Deposits 16,029 20,631 21,994 37.2% - CASA Deposits 8,012 9,574 10,300 28.6% - Term Deposits 8,017 11,056 11,694 45.9% Borrowings
Slide 71: Quarterly Income Statement
f. Financial Statements Section 10: Profitability & Capital Quarterly Income Statement Growth (%) In US$ Million Q3 FY23 Q2 FY24 Q3 FY24 YoY Interest Income 712 886 949 33% Interest Expense 317 410 433 37% Net Interest Income 396 476 517 30% Fee & Other Income 135 166 177 32% Trading Gain 4 7 6 34%
Slide 72: Nine months Income Statement
f. Financial Statements Section 10: Profitability & Capital Nine months Income Statement Growth (%) In US$ Million 9M FY23 9M FY24 YoY Interest Income 1,964 2,663 36% Interest Expense 875 1,219 39% Net Interest Income 1,089 1,444 33% Fee & Other Income 357 504 41% Trading Gain 13 21 61% Operating In
Slide 73: Capital Adequacy Ratio is strong at 16.73%
g. Capital Adequacy Ratio Section 10: Profitability & Capital Capital Adequacy Ratio is strong at 16.73% as on December 31, 2023 In US$ Million Dec-22 Sep-23 Dec-23 Common Equity 2,667 3,226 3,674 Tier 2 Capital Funds 508 729 732 Total Capital Funds 3,176 3,955 4,406 Total Risk Weighted Assets 19,77
Slide 74: Average Quarterly Liquidity Coverage Ratio remained strong
h. Liquidity Coverage Ratio Section 10: Profitability & Capital Average Quarterly Liquidity Coverage Ratio (LCR) remained strong 153% 136% 123% 120% 120% 121% 111% Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-23 73 73
Slide 75: Section 11: Credit Rating
Section 11: Credit Rating
Slide 76: Long Term Credit Rating upgraded by CARE, CRISIL and ICRA
Section 11: 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)
Slide 77: Section 12: Board of Directors
Section 12: Board of Directors
Slide 78: Board of Directors: MD & CEO Profile
Section 12: 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”. He left a Board level position at ICICI group in 2010 and acquired stakes in of a small listed, loss making, r
Slide 79: Board of Directors
Section 12: 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 80: Board of Directors
Section 12: Board of Directors Board of Directors MR. PRAVIR VOHRA - INDEPENDENT DIRECTOR Mr. Pravir Vohra is a postgraduate in Economics from St. Stephen's College, University of Delhi & a Certified Associate of the Indian Institute of Bankers. He began his career in banking with SBI where he worke
Slide 81: Board of Directors
Section 12: 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 82: Section 13: Shareholding
Section 13: Shareholding
Slide 83: Shareholding Pattern as of December 31, 2023
Section 13: Shareholding Shareholding Pattern as of December 31, 2023 Scrip Name: IDFC FIRST Bank (BSE: 539437, NSE:IDFCFIRSTB) Other Body Trusts and Clearing Total # of shares as of Dec 31, 2023 7,066.8 Million Corporate (1.02%) Members (0.26%) President of India Others (0.03%) Rs. 4.03 (3.70%) Bas
Slide 84: Growth in book value per share
Section 13: Shareholding Growth in book value per share During the last 11 quarters, the BVPS Book Value Per Share reduced during the first few increased by 42% with the increasing 0.54 years after merger due to credit losses arising from profitability from the core business model legacy corporate a
Slide 85: Section 14: Progress on ESG
Section 14: Progress on ESG
Slide 86: Our ESG Priorities Align with Our Corporate Vision
Section 14: 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 87: Environmental and Green initiatives
Section 14: Progress on ESG ESG at IDFC FIRST Bank – Environmental and Green 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 ISO 14001 • Over
Slide 88: Social and Governance initiatives
Section 14: Progress on ESG ESG at IDFC FIRST Bank – Social and Governance initiatives Social Governance Employee engagement Community impact Customer-first Diverse leadership Strong governance Information security ❑ Employee learning and engagement ❑ Strong and experienced Board • Over 16 lakh lear
Slide 89: ESG Commitments, Ratings and Governance
Section 14: Progress on ESG ESG Commitments, Ratings and Governance ESG Commitments ESG Governance • Annual disclosures published through the Bank’s first Integrated Report, Structure aligned with Int’l IR framework, GRI and SASB • Official Participant of United Nations Global Compact (UNGC) Board L
Slide 90: Recognitions for ESG Efforts
Section 14: Progress on ESG Recognitions for ESG Efforts The European Institute of Directors India CFI.co - Capital Finance International UBS Forums Transformance Forums Most ESG Responsible Banking Golden Peacock Award in ESG Outstanding Commitment to ESG ESG Rising Star & Sustainability Best Bank
Slide 91: Section 15: Awards and Recognition
Section 15: Awards and Recognition
Slide 92: Awards and Recognition
Section 15 : Awards & Recognitions Awards and Recognition Best Corporate Governance 2023 - World Finance Best Digital Bank 2023 - Financial Express India's Best Banks Awards 2023 Innovative Payment Solution of the Year for FIRSTAP 2023 - Gadgets Now Excellence in BFSI 2023 - National Awards for Exce
Slide 93: 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. 92
Slide 94: 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 95: Thank You
Thank You IDFC FIRST Bank
Slide 96: Annexure 1: Performance against stated goals
Annexure 1 Performance of the Bank against the stated goals 95
Slide 97: Performing well on the guidance given at the time of the 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 Dec-23 Status (At Merger) CET – 1 Ratio 16.14% >12.5 % 13.95% On Track Capital Capital Adequacy (%) 16.51% >13.0 % 16.73% On Track 30% (FY24), CASA as a % of Deposits (%) 8
Slide 98: Performing well on the guidance given at the time of the 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 Dec-23 Status (At Merger) Top 10 borrowers as % of Total Loans & Advances (%) 12.8% < 5% 2.10% Achieved GNPA (%) 1.97% 2.0% - 2.5% 2.04% On Track Asset Quality NNPA (%) 0.9
Slide 99: Annexure 2
Annexure 2 Breakup of the loans & advances with YoY growth 98
Slide 100: 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) Dec-22 Sep-23 Dec-23 YoY (%) Retail Finance 10,376 12,603 13,421 29.3% - Home Loan 2,143 2,561 2,545 18.8% - Loan Against Property 2,371 2,606 2,631 11.0% - Vehicle Loans 1,674 2
Slide 101: Annexure 3
Annexure 3 Background of IDFC FIRST Bank – Merger of IDFC Bank and Capital FIRST
Slide 102: 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 103: 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. 102
Slide 104: 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 103
Slide 105: 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 106: 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 107: Capital First: the 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 108: 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 109: 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 110: Annexure 5: Proforma Financials before merger
Annexure 5 Proforma Financials before merger (H1-FY19) 109
Slide 111: Pre merger Proforma Financials of IDFC Bank and Capital First – P&L
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