Idfc First Bank Ltd. · NSE:IDFCFIRSTB
Idfc First Bank — FY2023 Earnings Presentation
96 slides from Idfc First Bank's earnings presentation, May 2023
Slide 1: Investor Presentation – FY23
Investor Presentation – FY23
Slide 2: Table of Contents
1 IDFC FIRST Bank Vision 2 Financial Highlights of FY23 3 Our Approach to building IDFC FIRST Bank 4 Background of IDFC FIRST Bank 5 Products and Digital Innovation Deposits and Borrowings TABLE 6 OF 7 Loans and Advances CONTENTS 8 Risk Management & Asset Quality 9 Financial Performance 10 Board of
Slide 3: 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.” 2
Slide 4: Culture @ IDFC FIRST Bank
Section 1: Vision Culture @ IDFC FIRST Bank (Annual Report 2018-19) (Annual Report 2018-19) (Annual Report 2019-20) (Annual Report 2019-20) (Annual Report 2019-20) (Annual Report 2019-20) (Annual Report 2020-21) 3
Slide 5: 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 6: Section 2: Financial Highlights of FY23
Section 2: Financial Highlights of FY23 55
Slide 7: Bank At a Glance – FY23
Section 2: Financial Highlights – FY23 Bank At a Glance – FY23 Loans and Advances (Bank) Loans and Advances (Retail) Deposits Profitability Key Ratios Loans & Core Operating Return on Diversification Customer Deposits Advances Income Assets Retail & Commercial Finance US$ 19,827 Mn US$ 16,890 Mn US$
Slide 8: Key Financial Highlights of FY23
Section 2: Financial Highlights – FY23 Key Financial Highlights of FY23 Area Key Parameters FY22 FY23 Growth (%/bps) Assets Loans & Advances US$ 15,932 Mn US$ 19,827 Mn 24% Customer Deposits US$ 11,508 Mn US$ 16,890 Mn 47% Deposits CASA Ratio (%) 48.44% 49.77% 133 bps GNPA (%) – Bank level 3.70% 2.5
Slide 9: Section 3: Our approach to building IDFC FIRST Bank
Section 3: Our approach to building IDFC FIRST Bank 88
Slide 10: Our approach to building IDFC FIRST Bank (1/3)
Section 3: Approach to build IDFC FIRST Bank Our approach to building IDFC FIRST Bank (1/3) We were previously an infrastructure DFI. At the time of our merger with Capital First in December 2018, 91% of our liabilities were institutional and 73% of our deposits were corporate. To address this, we f
Slide 11: Our approach to building IDFC FIRST Bank (2/3)
Section 3: Approach to build IDFC FIRST Bank Our approach to building IDFC FIRST Bank (2/3) In retail which is our main area of growth, we have a track record of 12 years of maintaining our Gross NPA at ~2% and net NPA of ~1%. Our portfolio has been subjected to multiple stress-tests, including econ
Slide 12: Our approach to building IDFC FIRST Bank (3/3)
Section 3: 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 the exception of CSR, are led by independent directors, ensu
Slide 13: Section 4: Background of IDFC FIRST Bank
Section 4: Background of IDFC FIRST Bank 12 12
Slide 14: IDFC FIRST Bank was created by merger of IDFC Bank and Capital First
Section 4: Background IDFC FIRST Bank 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 ID
Slide 15: Background and history of erstwhile IDFC Bank
Section 4: Background IDFC FIRST Bank Background and history of erstwhile IDFC Bank About IDFC Bank IDFC Limited was a leading and reputed infrastructure financing Domestic Finance Institution. The institution diversified into Asset Management, Institutional Broking and Investment Banking. It applie
Slide 16: Background and history of Capital First
Section 4: Background IDFC FIRST Bank Background and history of Capital First Background Strong growth in AUM 5 Yr PAT CAGR of 56% In US$ Mn Wholesale AUM Retail AUM Total AUM 4,028 40 3,333 29 Capital First was a successful NBFC, 25 2,447 21 growing its loan book and net profits at 1,980 14 1,478 7
Slide 17: Section 5: Products and Digital Innovations
Section 5: Products and Digital Innovations - Wide range of Fund and Non-Fund Based Products 16 16
Slide 18: The Bank has a wide bouquet of products for consumers, MSMEs and Corporates
Section 5: Products & Digital Innovation The Bank has a wide bouquet of products for consumers, MSMEs and Corporates Personal Banking: For salaried & self-employed individuals, Business Banking: The bank provides a Corporate Banking: the Bank provides various products to fulfill different financial
Slide 19: The Bank has a wide range of Current and Savings Account Offerings
Section 5: Products & Digital Innovation The Bank has a wide range of Current and Savings Account Offerings CURRENT ACCOUNTS: SAVINGS ACCOUNTS: The Bank has multiple current account offerings doorstep The Bank offers savings accounts with attractive interest rates and multiple features including hea
Slide 20: Our Digital Initiatives
Section 5: Products & Digital Innovations Our Digital Initiatives Significant traction on electronic platforms RTGS & NEFT 96% Ranked 4th UPI Transactions: Growth of payments through CMS Of the overall Bharat Bill Payment ~139% over the last year and solutions up by 30% YoY (vol.) transactions are S
Slide 21: India's FIRST FASTAG with Triple Benefits – Toll, Fuel and Parking
Section 5: Products & Digital Innovation India’s FIRST FASTAG with Triple Benefits – Toll, Fuel and Parking IDFC FIRST Bank Credit Card customers can now link their card 12 Million with IDFC FIRST FASTAG and enjoy seamless auto recharge FASTag Issued IDFC FIRST Bank issuance business crossed 12 Mill
Slide 22: Building a strong Wealth Management Business
Section 5: Products & Digital Innovation Building a strong Wealth Management Business AUM of Wealth Management Business has grown 48% YoY to 1 Assisted Transactions: Digitally assisted transaction execution for Mutual Funds reach US$ 1,144 Mn as on March 31, 2023. 2 Investment Dashboard: Assets mana
Slide 23: Building Corporate Banking Solutions powered by Digital Innovations
Section 5: Products & Digital Innovation Building Corporate Banking Solutions powered by Digital Innovations Cash Management Services (CMS) Receivables Solution, Escrow & Liquidity Solutions, and Payment Solutions Lending Solutions Whatsapp Banking BXP – Digital Enterprise Platform Presents eNACH re
Slide 24: Section 6: Deposits and Borrowings
Section 6: Deposits and Borrowings a. CASA Deposits b. Customer Deposits c. Total Customer Deposits d. Summary of Deposits and Borrowings e. Legacy High-Cost Borrowings 23 23
Slide 25: CASA Deposits growing at 4 year CAGR of 74%
a. CASA Deposits Section 6: Deposits & Borrowings CASA Deposits growing at 4 year CAGR of 74% • The Bank provides high levels of customer service and becoming a brand with a reputation as a clean and ethical institution, which has helped us grow our deposit base. • The deposits of 31st March 2023 in
Slide 26: CASA Ratio stable at ~50%
a. CASA Deposits Section 6: Deposits & Borrowings CASA Ratio stable at ~ 50% • We reduced deposit rates in 2021 from 7% earlier to 4% up to US$ 1,25,000. Yet, our deposit growth continues to be strong based on strong service levels and image as a clean ethical institution. • Without the US$ 263 Mn c
Slide 27: Total Customer Deposits grew at 4-year CAGR of 36%
b. Total Customer Deposits Section 6: Deposits & Borrowings Total Customer Deposits grew at 4-year CAGR of 36% • Total Customer Deposits (Retail Deposits + Wholesale Deposits) has grown strongly by 4 Year CAGR (Mar-19 to Mar-23) of 36%. • Without the US$ 263 Mn current account mobilized in March 202
Slide 28: Diversification of liabilities: 76% of customer deposits are Retail
c. Diversification of Deposits Section 6: Deposits & Borrowings Diversification of liabilities: 76% of customer deposits are Retail • The Bank has transformed the liability profile in 4 years from wholesale to retail • The Retail wholesale Deposits mix has changed from 27 : 73 in Dec-18 to 76: 24 in
Slide 29: Summary of Deposits & Borrowings
d. Summary of Deposits & Borrowings Section 6: Deposits & Borrowings Summary of Deposits & Borrowings Particulars (in US$ Mn) Mar-22 Dec-22 Mar-23 YoY growth Legacy Long Term Bonds 823 804 791 -4% Legacy Infrastructure Bonds 1,125 931 854 -24% Refinance 2,026 2,497 2,591 28% Other Borrowings 704 255
Slide 30: Bank continues to successfully run down the legacy high cost long term borrowings
e. Legacy High Cost Borrowings Section 6: Deposits & Borrowings Bank continues to successfully run down the legacy high cost long term borrowings Balance In US$ Mn RoI (%) As on Mar-22 As on Mar-23 FY24 FY25 FY26 Beyond FY26 Infrastructure Bonds 1,125 854 113 636 105 0 8.91% Long Term Legacy Bonds 8
Slide 31: Section 7: Loans & Advances
Section 7: Loans & Advances Bank has a well diversified Credit Portfolio 30 30
Slide 32: The Bank lending book is highly diversified
Section 7: Loans & Advances The Bank lending book is highly diversified Other Other Emerging Corporates Corporates Enterprises 4% PSL 7% PSL buyouts 7% Financial buyouts Home Loan Financial Home Loan Institutions 2% 3% 12% Institutions Large 8% Emerging 11% 8% Corporates Enterprises Loan Against 1%
Slide 33: Bank has successfully wound down the Infrastructure financing Book
Section 7: Loans & Advances Bank has successfully wound down the Infrastructure financing Book In the last 5 years, the Infrastructure financing book as % of overall Loans & Advances has come down from 36.7% to 2.9% as of March 31, 2023 Infrastructure Financing Book (In US$ Mn) 36.7% % of Loans & Ad
Slide 34: The Bank has built capabilities to originate PSL assets
Section 7: Loans & Advances The Bank has built capabilities to originate PSL assets Hence, RIDF subscriptions has reduced substantially. Further, this has also resulted in the reduction in the cost of purchasing PSL certificates. RIDF Bonds Outstanding (In US$ Mn) 427 338 311 262 200 156 Mar-18 Mar-
Slide 35: Section 8: Risk Management & Asset Quality
Section 8: Risk Management & Asset Quality a. Break-down of NPA across Business Segments b. Retail & Commercial 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 36: Break-down of asset quality by business components
Section 8: 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 Gross NPA Net NPA PCR% Retail and 15,572 1.65% 0.55% 82.43% Commercial Finance Corporate 2,995 2.87% 0.01% 99.84% (N
Slide 37: Risk Management Funnel for Retail & Commercial Loans
b. Retail & Commercial Loans Section 8: Risk Management & Asset Quality Risk Management Funnel for Retail & Commercial Loans We have stringent underwriting policy and processes Hence Only 40-60% of applications are approved Hence We have Low Cheque Bounces* (6.6%) We follow it up with This slide exp
Slide 38: The Bank has a 10 Step Stringent Underwriting Process (1/2)
b. Retail & Commercial Loans Section 8: 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 39: The Bank has a 10 Step Stringent Underwriting Process (2/2)
b. Retail & Commercial Loans Section 8: 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 40: 34% reduction in the Cheque Bounce during last 4 years
b. Retail & Commercial Loans Section 8: Risk Management & Asset Quality 34% reduction in the Cheque Bounce during last 4 years Pre- Covid Period Post Covid Period • First EMI (FEMI) Cheque presentation is a direct indicator of the Quality of 9.9% Booking. • Our FEMI cheque Bounce is 34% lesser than
Slide 41: Collection Efficiency maintained consistently around 99.5% in all months of FY23
b. Retail & Commercial Loans Section 8: Risk Management & Asset Quality Collection Efficiency maintained consistently around 99.5% in all months of FY23 • The Collection % continues to be high at 99.5%. • Thus only 0.5% of the portfolio moves to 0-30 bucket. • This in turn feeds into low Gross and N
Slide 42: Retail & Commercial loans: (SMA1 + SMA2) as % of total Book reduced by 50% in FY23
b. Retail & Commercial Loans Section 8: Risk Management & Asset Quality Retail & Commercial loans: (SMA1 + SMA2) as % of total Book reduced by 50% in FY23 2.2% • SMA 1 is the overdue portfolio in Bucket 31-60 days, and SMA 2 is the overdue portfolio in 61-90 days. • SMA 1 (31-60 days overdue) and SM
Slide 43: Bank has maintained High Retail asset quality GNPA of ~2% and NNPA ~1% for a decade
b. Retail & Commercial Loans Section 8: Risk Management & Asset Quality Bank has maintained High Retail asset quality GNPA of ~2% and NNPA ~1% for a decade. In Retail & Commercial Finance, We have undergone repeated stress tests over the last 10 years, but our strong and disciplined underwriting cap
Slide 44: Key Product wise NPA detail as of March 31, 2023
b. Retail & Commercial Loans Section 8: Risk Management & Asset Quality Key Product wise NPA detail as of March 31, 2023 Here we share the Gross and Net NPA of individual products in Retail & Commercial Finance. Most of the products have GNPA ratio at less than 2% and NNPA ratio at less than 1% as a
Slide 45: Stringent Underwriting Process in Wholesale Business
c. Wholesale Financing Section 8: 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 46: Risk Management in Wholesale Banking
c. Wholesale Financing Section 8: Risk Management & Asset Quality Risk Management in Wholesale Banking The Bank has reduced its corporate (non-infra) book from 29% in Mar- Similarly, the Bank has reduced its infrastructure financing portfolio 19 to 16% in Mar-23 from 19% in Mar-19 to 3% in Mar-23 29
Slide 47: Provision Coverage Ratio increased to 80.29% for the Bank
d. Provision Coverage Ratio Section 8: Risk Management & Asset Quality Provision Coverage Ratio increased to 80.29% for the Bank Retail & Commercial Finance Non-Infra Corporate Book 82.43% 99.84% 94.50% 69.59% 65.08% 57.53% 72.32% 44.56% 58.51% 45.95% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20
Slide 48: Net Stressed Assets reduced significantly to only 0.8% of total Assets
e. Net Stressed Assets Section 8: Risk Management & Asset Quality Net Stressed Assets reduced significantly to only 0.8% of total Assets Net stressed Assets = Net NPA + Net SRs + Net Restructured Assets (OTR) 2.0% • The Bank has reduced the net stressed assets, both in absolute value and as % of the
Slide 49: Section 9: Profitability & Capital
Section 9: Profitability & Capital a. Net Interest Income b. Fee and Other Income c. Composition of Fee and Other Income d. Trend of Core Operating Profit e. Trend of Profitability and Return Ratios f. Financial Statements g. Capital Adequacy 48 48
Slide 50: 30% YoY growth in Net Interest Income during FY23
a. Net Interest Income Section 9: Profitability & Capital 30% YoY growth in Net Interest Income during FY23 Net Interest Income (In US$ Mn) 1,560 4Y CAGR: 27% 1,198 911 750 598 FY19* FY20 FY21 FY22 FY23 NIM for Q4 FY 23 is 6.41% compared to 6.13% for Q3 FY 23. NIM for FY 23 was 6.05% Gross of IBPC a
Slide 51: 54% YoY growth in Fee & Other Income during FY23
b. Fee & Other Income Section 9: Profitability & Capital 54% YoY growth in Fee & Other Income during FY23 Fee and Other Income (In US$ Mn) 511 4Y CAGR: 37% 332 191 200 144 FY19* FY20 FY21 FY22 FY23 * H2-FY19 actual annualized 50
Slide 52: Breakup of Fee & Other Income – FY23
b. Fee & Other Income Section 9: Profitability & Capital Breakup of Fee & Other Income – FY23 Others 5% Loan Origination General Banking fees Fees 33% • During FY23, the Fee and Other Income of 25% the Bank increased by 54% YoY. • The Bank has launched and scaled up many fee-based products in the la
Slide 53: Bank has reduced Cost to Income ratio from 95% to 72% in 4 years
c. Cost to Income Ratio Section 9: Profitability & Capital Bank has reduced Cost to Income ratio from 95% to 72% in 4 years, expected to drop further going ahead.. • During the last three years the bank had to make significant investments in building liabilities and credit card franchise • Despite t
Slide 54: Breakup of Cost to Income Ratio by segment
c. Cost to Income Ratio Section 9: Profitability & Capital Breakup of Cost to Income Ratio by segment • The cost to income ratio has come down for every business line. • The retail & commercial finance and wholesale banking already have low cost to income ratio • The only two businesses that are dra
Slide 55: 67% YoY growth in Core Operating Profit during FY23
d. Core Pre-provisioning Operating Profit Section 9: Profitability & Capital 67% YoY growth in Core Operating Profit during FY23… .. Against overall book growth of 24% which showcases the core earning potential of the Bank Core Pre-Provisioning Operating Profit (In US$ Mn) 569 4Y CAGR: 43% 340 218 2
Slide 56: Strong growth in Operating Profit %
d. Core Pre-provisioning Operating Profit Section 9: Profitability & Capital Strong growth in Operating Profit % Core Pre-Provisioning Operating Profit (PPOP) as a % of Average Total Assets 2.14% 1.56% 1.22% 1.11% 0.76% 0.32% H1 FY19 H2 FY19 FY20 FY21 FY22 FY23 (Annualized) (Annualized) (Pre-merger
Slide 57: The core operating profits growth continues to outpace overall balance sheet growth
d. Core Pre-provisioning Operating Profit Section 9: Profitability & Capital The core operating profits growth continues to outpace overall balance sheet growth Balance Sheet Growth PPOP Growth • The core PPOP (NII + Fees excluding 67% Trading Gains – Opex) of the Bank grew by 67% as compared to bal
Slide 58: Strong growth in Core Operating Profits
d. Core Pre-provisioning Operating Profit Section 9: Profitability & Capital Strong growth in Core Operating Profits.. The consistent QoQ growth of the crore operating profit showcases the strength of the core operating model, despite the investments in building capabilities including new products,
Slide 59: Driving the Net Profit growth despite the impact of stressed legacy assets and Covid
e. Net Profit Section 9: Profitability & Capital .. Driving the Net Profit growth despite the impact of stressed legacy assets and Covid Quarterly Net Profit / Loss (US$ Mn) 99 69 75 59 35 42 12 13 16 16 19 9 -27 COVID The Bank has sustainably turned around and -46 2nd wave improved its profitabilit
Slide 60: The Bank has strong unit economics
e. Net Profit Section 9: Profitability & Capital The Bank has strong unit economics • Since the merger in December 2018, the Bank had to account for much higher than normalized provisions due to legacy wholesale stressed assets as well as the impact of COVID-19. This has clouded the core incremental
Slide 61: Consistent improvement in ROA and ROE
f. Profitability Ratios Section 9: Profitability & Capital Consistent improvement in ROA and ROE Return on Equity (%) Return on Assets (%) 13.45% 1.41% 10.72% 1.07% 1.11% 10.13% 0.97% 8.96% 0.76% 6.67% 0.64% 5.44% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY2
Slide 62: Annual - Income Statement
g. Financial Statements Section 9: Profitability & Capital Annual - Income Statement Growth (%) In US$ Mn FY22 FY23 YoY Interest Income 2,120 2,806 32% Interest Expense 922 1,246 35% Net Interest Income 1,198 1,560 30% Fee & Other Income 332 511 54% Trading Gain 66 40 -39% Operating Income 1,596 2,1
Slide 63: Quarterly Income Statement
g. Financial Statements Section 9: Profitability & Capital Quarterly Income Statement Growth (%) In US$ Mn Q4 FY22 Q3 FY23 Q4 FY23 YoY Interest Income 562 730 793 41% Interest Expense 233 324 349 50% Net Interest Income 330 406 444 35% Fee & Other Income 104 138 146 40% Trading Gain -1 4 27 - Operat
Slide 64: Balance Sheet
g. Financial Statements Section 9: Profitability & Capital Balance Sheet Growth (%) In US$ Mn Mar-22 Dec-22 Mar-23 (YoY) Shareholders' Funds 2,593 2,802 3,175 22% Deposits 13,041 16,424 17,856 37% - CASA Deposits 6,317 8,210 8,887 41% - Term Deposits 6,724 8,215 8,970 33% Borrowings 6,539 6,717 7,06
Slide 65: Capital Adequacy Ratio is strong at 16.82% as on March 31, 2023
h. Capital Adequacy Ratio Section 9: Profitability & Capital Capital Adequacy Ratio is strong at 16.82% as on March 31, 2023 In US$ Mn Mar-22 Dec-22 Mar-23 Common Equity 2,494 2,733 3,064 Tier 2 Capital Funds 312 521 566 Total Capital Funds 2,805 3,254 3,630 Total Risk Weighted Assets 16,757 20,259
Slide 66: Section 10: Board of Directors
Section 10: Board of Directors 65 65
Slide 67: 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 Indian 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
Slide 68: 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 69: Board of Directors
Section 10: Board of Directors Board of Directors MR. HEMANG RAJA - INDEPENDENT DIRECTOR Mr. Hemang Raja, is an MBA from Abilene Christian University, Texas, with a major in finance. He has also completed an Advanced Management Programme (AMP) from Oxford University, UK. He has vast experience in th
Slide 70: Board of Directors
Section 10: Board of Directors Board of Directors MR. AJAY SONDHI - NON-EXECUTIVE NON INDEPENDENT DIRECTOR Mr. Ajay Sondhi, is a 2017 Fellow, Harvard Advanced Leadership Initiative, MBA - Finance from JBIMS, Mumbai University, and B.A. in Economics (Honors) from St. Stephens College, Delhi Universit
Slide 71: Section 11: Shareholding
Section 11: Shareholding 70 70
Slide 72: Shareholding Pattern as of March 31, 2023
Section 11: Shareholding Shareholding Pattern as of March 31, 2023 Scrip Name : IDFC FIRST Bank (BSE: 539437, NSE:IDFCFIRSTB) Other Body Trusts and Book Value per Share (US$) Corporate Clearing (1.22%) Members (0.23%) 0.49 0.68 President of India Others (0.03%) (3.95%) 0.47 0.47 0.48 0.42 0.39 0.39
Slide 73: Section 12: FIRST Compass (ESG)
Section 12: FIRST Compass (ESG) 72 72
Slide 74: Our FIRST Compass ESG Priorities Align with our Corporate Vision
Section 12 : FIRST Compass (ESG) Our FIRST Compass 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 FIRST Priorities (immediate and continuing) • Highest standards of corporate govern
Slide 75: FIRST Compass at IDFC FIRST Bank
Section 12 : FIRST Compass (ESG) FIRST Compass at IDFC FIRST Bank FY23 Highlights Environmental Social Governance ✓ Infrastructure: IGBC certification & LEED Certified Gold Standard for ✓Employee engagement and learning: Focus on Employee L&D: About 17.5 ✓ Strong and experienced Board : multiple lar
Slide 76: ESG Governance, Commitments and Ratings
Section 12 : FIRST Compass (ESG) ESG Governance, Commitments and Ratings ESG Governance Structure ESG Commitments Board Level Committee • Letter of commitment submitted and confirmed as a participant for • Board Committee: Stakeholder, ESG and Customer United Nations Global Compact (UNGC) Relationsh
Slide 77: ESG Awards
Section 12 : FIRST Compass (ESG) ESG Awards Best CSR Sustainability Award – Economic Times Navabharat BFSI Award Social Impact Bank of the Year Best Bank Leading the Way in ESG BFSI Excellence Awards Best Sustainable Bank Strategy Sep 2022 3rd Annual ESG Summit & Awards, Feb 2023 Oct 2022 2023 Inclu
Slide 78: Section 13: Awards and Recognition
Section 13: Awards and Recognition 77 77
Slide 79: Awards and Recognition
Section 13 : Awards & Recognitions Awards and Recognition Best Payments & Collections Solution Award 2021 - Asset Asian Awards Best Innovative Payment Solution - Phi Commerce Best Consumer Digital Bank in India – 2021 - Global Finance Magazine Best Wealth management provider for Digital CX - Digital
Slide 80: IDFC FIRST Bank
IDFC FIRST Bank We are building a world class bank with: - Highest levels of corporate governance - Stable balance sheet growth of ~20-25%, - Robust asset quality of GNPA less than 2% and net NPA of < 1% - High teens ROE - Contemporary technology and - High levels of Customer Centricity. 79
Slide 81: 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 82: Thank You
Thank You IDFC FIRST Bank
Slide 83: Annexure 1
Annexure 1 Performance of the Bank against the stated goals 82
Slide 84: Performance against guidance given at the time of the merger
We are happy to say that the Bank is performing well on the guidance given at the time of the merger. Dec-18 Particulars Guidance for FY24-FY25 Mar-23 Status (At Merger) CET – 1 Ratio 16.14% >12.5 % 14.20% On Track Capital Capital Adequacy (%) 16.51% >13.0 % 16.82% On Track 30% (FY24), CASA as a % o
Slide 85: Performance against guidance given at the time of the merger
We are happy to say that the Bank is performing well on the guidance given at the time of the merger. Dec-18 Particulars Guidance for FY24-FY25 Mar-23 Status (At Merger) Top 10 borrowers as % of Total Loans & Advances (%) 12.8% < 5% 2.7% Achieved GNPA (%) 1.97% 2.0% - 2.5% 2.51% On Track Asset Quali
Slide 86: Annexure 2
Annexure 2 Breakup of the funded asset with YoY growth 85
Slide 87: Breakup of Loans & Advances
Breakup of Loans & Advances Gross Loans & Advances Growth Growth Mar-22 Dec-22 Mar-23 (In US$ Mn) YoY (%) QoQ (%) Growth driven by Prime Home Home Loan 1,741 2,195 2,414 39% 10% Loans launched in 2021 Loan Against Property 2,240 2,429 2,494 11% 3% Wheels 1,192 1,715 1,830 53% 7% Consumer Loans 2,143
Slide 88: Annexure 3
Annexure 3 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. 87
Slide 89: 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) 4,028 3,333 2,447 1,980 1,478 1,195 927 764 340 115 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 H1-FY19 88
Slide 90: 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 91: 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 92: Capital First: the Return on Equity continuously improved over the 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 93: 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 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: Annexure 4
Annexure 4 Proforma Financials before merger (H1-FY19) 94
Slide 96: Pre merger - Proforma Financials of IDFC Bank and Capital First – 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 US$ Mn (H1 FY 19) (H1 FY 19) (H1 FY 19) Loans & Advances / AUM 9,300 4,028 13,328 Net-Worth 1,824 361 2,186 NII 113 141 254 Fees & Other Income 32 19 50 Treas