Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Investor Presentation (February 2025)
112 slides from Federal Bank Ltd. (india)'s investor presentation, Feb 21, 2025
Slide 1: Corrigendum to intimation - Presentation for Analyst Meet
Secretarial Department SEC/LODR/397/2024-25 February 21,2025 The Manager The Manager Listing Department Department of Corporate Services The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra-Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Mumbai – 400 051. Floor 25, D
Slide 2: Analyst Meet 21st Feb 2025
ANALYST MEET 21st FEB 2025
Slide 3: 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 condensed,. All information contained has been prepared solely by the Bank
Slide 4: Through The Financial Lens – Macros
ANALYST MEET Through The Financial Lens – Macros
Slide 5: Macroeconomic Overview
Macroeconomic Overview Macro Trends Key Performance Indicator Economic growth Operational efficiency & Capital Adequacy • GDP forecast for FY25 between 6.3-6.8% YoY; RBI projects GDP • CIR improved across the board, decreasing by 140 bps to growth at 6.7% for FY26 48.3% for the industry • Most forec
Slide 6: Macroeconomic Overview
Macroeconomic Overview India’s growth outlook: 6.3-6.8% in FY25 amid economic uncertainties; Trend in real GDP growth (Y-o-Y) (%) FY25 GDP growth forecast (%) 12.8 CMIE 6.0 9.7 8.2 8.2 8.1 8.6 7.8 MOSPI (FAE) 7.0 6.7 6.4 5.5 6.2 5.4 3.9 4.3 IMF 6.5 ADB 6.5 FY20 FY21 FY22 FY23 FY24 Q1 Q2 Q3 Q4 Q1 Q2
Slide 7: Macroeconomic Overview
Macroeconomic Overview RBI cuts repo rate by 25 bps in Feb-25 after holding it stable for approx. 2 years Lending & Deposit Rates (%) Share of O/s Floating Rate Rupee loans of SCBs across Interest Rate Benchmarks (%) 9.30 9.20 9.40 9.30 9.40 9.30 9.40 9.30 0bps 2.0 1.7 Mar-23 to Dec-24 8.90 8.60 36.
Slide 8: BFSI Indicators exhibited mixed trends
BFSI Indicators exhibited mixed trends UPI volume has grown by ~40% in last year Mutual Funds AUM grew by 30% y-o-y Volume (Bn) Value (INR Tn) Mutual Fund AUM (INR Tn) 23.2 66.9 20.1 20.6 19.8 18.2 51.4 15.0 16.7 12.0 13.4 13.9 Dec-23 Feb-24 May-24 Jul-24 Oct-24 Dec-24 Dec-23 Feb-24 Apr-24 Jun-24 Au
Slide 9: 9MFY25 results: Banking Industry Snapshot
9MFY25 results : Banking Industry Snapshot Total Deposits Total Net Advances Retail Advances1 MSME Advances2 Business 218.5L Cr 178.3 Cr 62.3L Cr 29.7L Cr 11% YoY 12% YoY 15% YoY 15% YoY Total Income Net Interest Income Non-Interest Income PAT Profitability 18.2L Cr 6.3L Cr 2.4L Cr 2.8L Cr 15% YoY 9
Slide 10: Industry Landscape, Regulatory Priorities and Policy Landscape
Industry Landscape , Regulatory Priorities and Policy Landscape Encouraging Expanding the Rupee’s Credit Flows to Strengthening of Participation in Role in Cross-Border MSMEs Assurance Functions Financial Innovation Transactions Banks are being Enhancing use of the rupee Ensuring adequate and Increa
Slide 11: About Us – How We Fared
ANALYST MEET About Us – How We Fared
Slide 12: Then and Now
Then and Now Then Now (FY20) (FY24) 2.13 1.24 CAGR 14.48% Reflects robust business expansion and improved Gross Advances (₹ Lakh Cr) market positioning. 2.53 1.52 CAGR 13.58% Total Deposits (₹ Lakh Cr) Showcases customer trust and enhanced liquidity management. 3.05% 3.20% Healthy NIM expansion driv
Slide 13: Profitability – Building Up Momentum
Profitability – Building Up Momentum Net Profit Operating Profit 3721 5175 CAGR – 12.73% 4794 CAGR – 24.62% 3011 3787 3758 3205 1890 1543 1590 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Fee and Other Income NII 3216 8293 CAGR – 13.60% CAGR – 15.57% 7232 2330 5962 2089 5534 1931 1945 4649 FY20
Slide 14: Analyst Meet 21st Feb 2025
ANALYST MEET 21st FEB 2025
Slide 15: From The MD's Desk
ANALYST MEET From The MD’s Desk
Slide 16: Unfolding the Story
Unfolding the Story Resurgence Era Chapter 3: 2010-2024 (14 Yrs) • Asset Quality Improves • Increased penetration outside home • Verticalization/New Businesses Representation of Business Growth Segments Representation of Network Growth • People Focus • Brand Overhaul Not to the Scale • Capital Marke
Slide 17: Charting the Future: Strengthening Our Foundation & Expanding Horizons
Charting the Future: Strengthening Our Foundation & Expanding Horizons Profitable Growth Kerala & Beyond – Branch Model - Nationwide Growth Efficiency & Growth ▪ How do we enhance profitability while sustaining growth momentum? ▪ How do we expand nationally while ▪ How can we refine and modernize ou
Slide 18: Charting the Future: Strengthening Our Foundation & Expanding Horizons
Charting the Future: Strengthening Our Foundation & Expanding Horizons The SME Bank of Winning in Mass Choice Aspiring for the Top 5 Affluent Banking Private Bank bracket Establish a best-in-class Execute a growth strategy to Expand offerings in wealth SME banking ecosystem cement our position among
Slide 19: Breakthrough – Chapter 4.0
Breakthrough – Chapter 4.0 Profitable Growth Prioritizing sustainable, high-quality earnings Winning the Right Customers aligned with long-term profitability. Scaling Up, Smartly Focusing on Mass Affluent, MSME, and Expanding footprint, optimizing capital, and next-gen customers to deepen leveraging
Slide 20: Project Breakthrough – Chapter 4.0
Project Breakthrough – Chapter 4.0 NIM Improvement Digital At The Fore, 01 Human At The Core 07 Expanding Product Renewed Digital 02 Portfolio Distribution Strategy 08 03 Fee Enhancement People & Culture 09 Branch Strategy for 04 Scalable Growth 4.0 STRATEGY Cost Optimization 10 KEY THEMES Branch St
Slide 21: Theme – NIM Improvement: Liabilities/Deposits
Theme 1 – NIM Improvement (9m FY25) Interest Expense/ Avg EA1 Liabilities/Deposits 5.60% 5.20% 4.58% Reorient Branch Strategy towards CASA & Deposit 01 Refocusing branches on deposit growth to strengthen balance sheet resilience Strengthening CA Portfolio 02 Expanding CA mobilization through strateg
Slide 22: Theme – NIM Improvement: Advances/Assets
Theme 1 – NIM Improvement (9m FY25) Interest Income / Avg EA1 9.21% Advances/ Assets 8.74% Scaling up Medium-Yield Assets: 01 Focusing on medium secured retail assets to improve NIMS 8.54% Mid-Market Corporate Lending for Better Profitability 02 Targeting mid-market borrowers to improve spreads and
Slide 23: Theme – NIM Improvement
Theme 1 – NIM Improvement (9m FY25) (9m FY25) Interest Expense/ Avg EA1 Interest Income / Avg EA1 9.21% 5.60% 5.20% 4.58% 8.74% 8.54% NIM 4.38% 3.52% Federal Next 3 Best 3 3.13% Federal Next 3 Best 3 Strengthen Granular Liability Enhancing NIM through Optimized Franchise for NIM expansion Asset Mix
Slide 24: Theme – Expanding Product Portfolio
Theme 2 – Expanding Product Portfolio Offer investment products: Wealth Management, 3 in 1 account, Bespoke solutions to NR Scale-up Used Vehicle Finance – Expand offerings for Micro-LAP Products CV/CE , Car Loans Tractor Finance EMI-Based Unsecured Biz Loans Affordable Housing Loans Real Estate Fin
Slide 25: Theme – Fee Enhancement
Theme 3 - Fee Enhancement Other Income to Avg Assets (9m FY25) Key Opportunities 1.7% 1.4% 01 Trade and Forex Income 1.1% 02 Wealth Management & Bancassurance 03 Credit Cards & Acquiring Businesses 04 Cash Management Services Federal Next 3 Best 3 through Mass Affluent & NR Product With Segmental 01
Slide 26: Theme – Branch Strategy for Scalable Growth
Theme 4 – Branch Strategy for Scalable Growth Network Expansion Strategy Branch Expansion No of Branches (Dec ‘24) Selective State level expansion 7197 Focus on top 10 high GSDP states Focus on tier-2 cities 2126 1550 Pin code level strategies in Metros Phased expansion (FY 26 – FY28) Federal Next 3
Slide 27: Theme – Branch Transformation
Theme 5 - Branch Transformation “FREE The Branch” Strategic Framework for Operational Efficiency Initiative Eliminate Modernized Branch Formats Remove inefficiencies to optimize resources Centralizing admin tasks to eliminate and execution. redundancies and sharpen customer focus. Automate Leverage
Slide 28: Theme – Brand Transformation
Theme 6 – Brand Transformation Brand Ambassador & Positioning to ATL Campaign Small Biz. & Mass Affluent Redesign the Segments Brand & Branches Brand Salience Reinforce Outside Home Loyalty in Market Home Market Redefine Put in place a Legacy full NPS Perceptions Contemporize System for new gen clie
Slide 29: Theme – Digital At The Fore, Human At The Core
Theme 7 - Digital At The Fore, Human At The Core Employee Enablement User Experience Enhanced Branch Interface Enhancement Regulatory/ Compliance bot Mobile Revamp and HRMS Solution Omni-Channel Experience (Cloud) Unified Account Opening AI-Assisted Gen AI Chatbots Decision Support Major Virtual Age
Slide 30: Theme – Digital At The Fore, Human At The Core
Theme 7 - Digital At The Fore, Human At The Core User Experience Enhancement Mobile Revamp and Unified, intuitive digital interfaces ensuring seamless banking across Omni-Channel Experience mobile, web, and branch channels. AI-driven automation enhancing self-service capabilities, reducing Gen AI Ch
Slide 31: Theme – Digital At The Fore, Human At The Core
Theme 7 - Digital At The Fore, Human At The Core Employee Enablement Real-time data access, customer Automated reporting, credit Enhanced Branch AI-Assisted Decision insights, and faster service support, customer support and Interface Support execution. policy adherence. AI-driven automation for sea
Slide 32: Theme – Renewed Digital Distribution Strategy
Theme 8 – Renewed Digital Distribution Strategy • Focus on faster growth of organic credit Partner sourced Organic cards through our own digital channels while continuing to source through Fintech partners 30% 45% Credit Cards • Rationalize commercials with co-branded 70% FY24 55% FY28 (P) partners
Slide 33: Theme – People & Culture
Theme 9 – People & Culture Vertical Heads as CEOs Collective focus on P/L Foster alertness, agility, Making the BM role attractive and astuteness at all levels Empowering Enhance Sales Culture Leadership Generalists V/s Specialists Setting up an Alternate Identify Talent Gaps to Low-Cost Channel imp
Slide 34: Theme – Cost Optimization
Theme 10 – Cost Optimization Opex to Avg Assets (9m FY25) Optimizing Cost 2.15% 2.14% 1.54% 01 Enhanced Productivity Enhanced productivity will lead to further cost optimization 02 Introduce a low-cost sales channel Enhancing Productivity Through Alternative Workforce Models Federal Next 3 Best 3 03
Slide 35: Theme – Strengthening Assurance Functions
Theme 11 – Strengthening Assurance Functions Compliance Risk Management Audit ✓ Optimize SAS Continuous Compliance ✓ Institute a better RAROC based pricing ✓ Maximize Process Automation: Audit Monitoring mode and robust transfer pricing Allotment, Audit Sampling, Task ✓ AI Driven Validation of Polic
Slide 36: Theme – Evolution Towards a Universal Bank
Theme 12 - Evolution Towards a Universal Bank Most Admired Bank Diversifying Financial Services for Creating a Holistic Franchise Affordable Housing Asset Management Securities & Capital Market Services Microfinance Wealth Management Investment Banking
Slide 37: Breakthrough – Execution
Breakthrough – Execution Project Portfolio Overview ▪ Tracking KPIs with real-time 1 150 Projects Identified KPI-Driven dashboards and structured oversight Performance ▪ A high-governance model ensures 50 Key Projects: High-impact initiatives 2 aligned with strategic priorities. Management seamless
Slide 38: ROA led ROE Improvement
ROA led ROE Improvement ROA (9m FY25) 2.20% ++ Cost -- Credit ++ Fee Cost 1.40% 1.20% ++ Yield on Income Advances FY28 9m ++ Cost of FY25 Deposits Federal Next 3 Best 3 ROE (9m FY25) Optimizing Capital Allocation 16.00% ➢ Enhancing RWA efficiency and maintaining an optimal capital structure. 13.10%
Slide 39: Product Portfolio Dynamics - RoE v/s Size FY25(E)
Product Portfolio Dynamics - RoE v/s Size FY25(E) Low Portfolio Size: High RoE High Portfolio Size: High RoE RoE Liabilities Gold Micro Loans Business Banking Commercial Banking LAP Corporate & Core Agri CV/CE Institutional Auto Banking Housing Loan Credit Card Personal Loan Low Portfolio Size: Low
Slide 40: Product Portfolio Dynamics - RoE v/s Size FY25(E)
Product Portfolio Dynamics - RoE v/s Size FY25(E) Low Portfolio Size: High RoE High Portfolio Size: High RoE RoE Liabilities Gold Micro Loans Business Banking Commercial Banking LAP Corporate & Core Agri CV/CE Institutional Auto Banking Housing Loan Credit Card Personal Loan Low Portfolio Size: Low
Slide 41: Product Portfolio Dynamics – RoE V/s Size FY28(P)
Product Portfolio Dynamics – RoE V/s Size FY28(P) Low Portfolio Size: High RoE High Portfolio Size: High RoE RoE Micro Loans Liabilities Business Gold Banking Commercial Banking Credit Card Core Agri Personal Loan Auto LAP CV/CE Corporate & Housing Loan Institutional Banking Low Portfolio Size: Low
Slide 42: Product Portfolio Dynamics – RoE V/s Size FY28(P)
Product Portfolio Dynamics – RoE V/s Size FY28(P) Low Portfolio Size: High RoE High Portfolio Size: High RoE RoE Micro Loans Liabilities Business Gold Banking Commercial Banking Credit Card Personal Core Agri Loan Auto LAP CV/CE Corporate & Housing Loan Institutional Banking Low Portfolio Size: Low
Slide 43: Analyst Meet 21st Feb 2025
ANALYST MEET 21st FEB 2025
Slide 44: Retail
ANALYST MEET RETAIL » q |
Slide 45: Retail Banking Has Made Steady Progress Since Our Last Meeting
Retail Banking Has Made Steady Progress Since Our Last Meeting… Then Now (Q3 FY23) (Q3 FY25) CAGR 9.33% Consistent growth driven by strong customer acquisition and RETAIL DEPOSITS 1,81,714* 2,17,214* deeper engagement with existing customers CAGR 12.29% Accelerated expansion reflecting increased ret
Slide 46: Breakthroughs in Creating Rishta
Breakthroughs in Creating Rishta 64 No of customers (No in Cr) NPS for UPI 1.64 1.82 1.89 NPS for Bank 77 80 26 lakh 1.39 Delighting 2023 1.11 customers 2024- Till Dec ‘24 New customers at every NPS for IMPS 79 82 added between touch-point Mar’23 and Dec’24 Q4 FY21 Q4 FY22 Q4 FY23 Q4 FY24 Q3 FY25 20
Slide 47: Our Digital Evolution – An Infinite Journey
Our Digital Evolution – An Infinite Journey# 92% transactions 14 Lakhs Serviced Digitally Active FedMobile (Retail + Corporate) Users (Monthly) 790 APIs 57 Lakhs Unique QR Digital Assistant - Feddy Merchants 84% Approx. 25 Lakh* Of Corporate HUMAN AT queries answered by HUMAN AT Txns serviced THE CO
Slide 48: Reel of Rishtas: Capturing New Bonds While Cherishing the Old
Reel of Rishtas: Capturing New Bonds While Cherishing the Old Customer Music Concerts Influencer Micro Meets & Carnivals: Collab Marketing Digital Marathons Conversations that build Bringing people together Building authentic Personalized strategies Campaigns: trust—bridging through melodies and con
Slide 49: Branch Banking
oe W'S ANALYST PS Meet Branch Banking FEDERAL BANK YOUR PERFECT BANKING PARTNER
Slide 50: Branch Banking – Snapshot
Branch Banking – Snapshot • Strong brand presence in home market • Customer-centric service culture ensuring high retention Strategic • Diverse product suite catering to retail banking needs Advantages • High employee engagement and growth-oriented culture • Geographic expansion into high-GSDP state
Slide 51: Branch Banking – Initiatives
Branch Banking – Initiatives Free the Branch Transform Operations Centralize and Regionalize Sales & Service architecture Regional Collections and Recovery capabilities Capacity expansion for sales with focus on New to Regional Service Centers for non-customer facing Bank (in house/ Business Corresp
Slide 52: Deposits
ANALYST q @ MEET Deposits »
Slide 53: Deposits – Snapshot
Deposits– Snapshot • Strong relationship-driven approach fostering customer loyalty • Low employee attrition, ensuring service continuity • Market prominence in NR (home market) and cross-border Strategic remittances Advantages • Robust onboarding and servicing framework through digital channels • G
Slide 54: Deposits – Initiatives
Deposits – Initiatives Strengthen NR proposition Expand CA offerings Target non GCC, non-Kerala diaspora; enhance Develop products and bespoke solutions for Wealth Management offerings segments (IPO, ASBA, PACB...) Increase share of digital on-boarding Improve and expand RM coverage Enhanced digital
Slide 55: Wealth & Insurance Distribution
ANALYST MEET Wealth & Insurance Distribution
Slide 56: Wealth & Insurance Distribution – Snapshot
Wealth & Insurance Distribution – Snapshot • Robust partner ecosystem and streamlined processes for Strategic insurance distribution Advantages • Extensive coverage with a skilled sales force certified in insurance advisory • Large untapped customer base Expansion • Enhancing digital penetration in
Slide 57: Wealth & Insurance Distribution – Initiatives
Wealth & Insurance Distribution – Snapshot Enhance Product co-origination Optimize RM coverage and capabilities and cross-sell Strengthen RMs with advanced tools & Drive best in class product co-origination customer expand high-value client coverage journeys; use Analytics for pre-approved insurance
Slide 58: Credit Card
ANALYST » 4 a Credit Card FEDERAL BANK
Slide 59: Credit Card – Snapshot
Credit Card – Snapshot Strategic • Superior digital onboarding experience Advantages • Differentiated product suite tailored to diverse customer segments Business Size ₹3,600 Cr Expansion • Enhanced opportunities for co-origination and cross-sell Customer Count Levers • Enhanced digital origination
Slide 60: Credit Card – Initiatives
Credit Card – Initiatives Expand Distribution & Market Reach Leverage AI & Analytics for Smarter Decision Making Feet on Street, Partnerships, Co-Origination Deeper penetration to existing base, optimized limit management and collections Increase share of digital on-boarding Enhance Product Suite &
Slide 61: Personal Loans
os We ANALYST PS Meet Personal Loans FEDERAL BANK YOUR PERFECT BANKING PARTNER
Slide 62: Personal Loans – Snapshot
Personal Loans – Snapshot Strategic • Fully digital customer onboarding process Advantages • Strong liability customer base providing opportunities for pre- approved offers Business Size • Well-established branch network and RM channel to drive growth ₹3,773 Cr Expansion • Opportunity to leverage Cr
Slide 63: Personal Loans – Initiatives
Personal Loans – Initiatives Broaden partnerships Launch Credit on UPI Leverage digital capability to enhance Drive new product adoption using contribution from partners NPCI’s capabilities Leverage Branch relationship / Develop co-origination journeys RM network Best in class co-origination journey
Slide 64: Auto Loans
ANALYST » 4 a Auto Loans FEDERAL BANK
Slide 65: Auto Loans – Snapshot
Auto Loans – Snapshot • Industry-leading delinquency levels, ensuring strong asset quality Strategic • Sustained 25%+ YoY portfolio growth, demonstrating robust demand Advantages • Dedicated sourcing team and DSA network for effective distribution • Straight Through Processing for seamless new car l
Slide 66: Auto Loans – Initiatives
Auto Loans – Initiatives Scale-up used car financing Expand distribution Drive higher margins through growth Leverage multi-channel sourcing through branches, in used car auto loans digital, and alternate networks Expand Loan Against Car product Enhance digitization & STP adoption Leverage opportuni
Slide 67: Loan Against Property
ANALYST MEET Loan Against Property
Slide 68: Loan Against Property – Snapshot
Loan Against Property – Snapshot Strategic • Secured lending offering an optimal risk-reward balance Advantages • Dedicated sourcing team and established DSA channel for efficient acquisition • Growth potential in markets beyond the existing footprint Business Size • Opportunity to upsell to existin
Slide 69: Loan Against Property – Initiatives
Loan Against Property – Initiatives Digitized customer journeys Scaling up Retail Loan Service Centers Improve TAT through use of Regionalize operational activities to free branches automation and digitization Enhance Sales Structure in Develop alternate/surrogate credit ex-home markets assessment f
Slide 70: Housing Loans
oo Wet ANALYST PS Meet Housing Loans FEDERAL BANK YOUR PERFECT BANKING PARTNER
Slide 71: Housing Loans – Snapshot
Housing Loans – Snapshot Strategic • Low credit cost and capital consumption, ensuring profitability Advantages • Dedicated and structured sourcing team for efficient acquisition • High-retention product with strong potential customer profitability Business Size ₹29,544 Cr • Urbanization trends driv
Slide 72: Housing Loans – Initiatives
Housing Loans – Initiatives Explore affordable housing Expand Retail Loan Service Centers Expand PSL portfolio and drive higher yield Free branches of operational activities; reduce cost of servicing Implement end-to-end digitization Strengthen direct sourcing through builder channel Improve TAT thr
Slide 73: Business Banking
ANALYST MEET Business Banking
Slide 74: Business Banking – Snapshot
Business Banking – Snapshot • Granular portfolio with an average ticket size of ₹1 Cr, highly Strategic collateralized and PSL-oriented Advantages • Optimal working capital mix ensuring portfolio stability • Prudent underwriting with low credit costs. Business Size • Opportunities in higher-yielding
Slide 75: Business Banking – Initiatives
Business Banking – Initiatives Better-Yield Lending for Forex & Trade Finance Optimization Profitable Growth for Revenue Growth Introduce efficient smaller ticket loans and Target New to Bank acquisition of Business Instalment loans customers with forex potential Digital Lending for Scale & Speed Di
Slide 76: Analyst Meet 21st Feb 2025
ANALYST MEET 21st FEB 2025
Slide 77: Wholesale Banking
ANALYST MEET Wholesale Banking
Slide 78: Business Progress Since Our Last Meeting
Business Progress Since Our Last Meeting… Then Now (Q3 FY23) (Q3 FY25) CAGR 11% Corporate & Institutional Banking 66,888 82,421 Steady growth driven by strong client relationships CAGR 26% Expanding SME and mid-market lending portfolio with Commercial Banking 16,635 26,283 sustained momentum CAGR 49
Slide 79: Corporate & Institutional Banking
ANALYST MEET Corporate & Institutional Banking
Slide 80: Corporate & Institutional Banking – Snapshot
Corporate & Institutional Banking – Snapshot • Comprehensive product suite catering to diverse corporate needs • Expanding market presence, reinforcing industry positioning Strategic • Strong asset quality, ensuring portfolio resilience Advantages • Presence in GIFT City, unlocking international bus
Slide 81: Corporate & Institutional Banking – Initiatives
Corporate & Institutional Banking – Initiatives Accelerate Digital Banking Mid Market Focus Automate & Onboard Trade, Transaction, Treasury Target mid market corporate clients and thrust on & SCM products on Digital Platforms deeper geographies for higher wallet share & income. Expand Capital Market
Slide 82: Commercial Banking
ANALYST MEET Commercial Banking
Slide 83: Commercial Banking – Snapshot
Commercial Banking – Snapshot • Granular asset book supporting portfolio stability • Sole Banking relationships with ~67% of clients Strategic • Extensive geographic penetration - enabling wider market reach Advantages • Consistently improving asset quality & strengthening risk metrics Business Size
Slide 84: Commercial Banking – Initiatives
Commercial Banking – Initiatives Deeper Geography Penetration Accelerate Digital Transformation Thrust on onboarding clients in Tier 2 and Tier 3 Enable API-integrated, seamless digital trade & locations which give higher reciprocity and revenue. transaction banking solutions. Enhance Credit Deliver
Slide 85: Treasury
ANALYST MEET Treasury » q |
Slide 86: Treasury – Snapshot
Treasury – Snapshot • Strong presence with Exchange Houses, CSGL and Arbitrage products, • Market leader in Exchange traded volumes, reinforcing competitive positioning Strategic • Advanced analytics-driven approach, enhancing decision-making & Advantages risk management • Handle significant FX volu
Slide 87: Treasury – Initiatives
Treasury – Initiatives Expanding GIFT Capabilities Diversified Resource Mobilization Leveraging the International Banking Unit (IBU) Enhancing funding through refinancing, with a comprehensive product offering and a infrastructure bonds and multilateral agencies wider customer base. Strengthening Re
Slide 88: Government & Institutional Business
ANALYST MEET Government & Institutional Business
Slide 89: Government & Institutional Business – Snapshot
Government & Institutional Business – Snapshot • Strong technological capabilities to support digital integrations and rollouts Strategic • Synergy with branches and expanding network for deeper Advantages penetration • Established reputation, brand and trust • Rising government expenditure driving
Slide 90: Government & Institutional Business – Initiatives
Government & Institutional Business – Initiatives Expand State Government Agency Business Customised Digital Products Scale-up agency empanelment across 10 key states. Offer bespoke digital solutions to various government departments and schemes Focus on Local Authorities Enhance Government Partners
Slide 91: Gold Business
os We ANALYST PS Meet Gold Business FEDERAL BANK YOUR PERFECT BANKING PARTNER
Slide 92: Gold Business – Snapshot
Gold Business – Snapshot • Largest gold loan portfolio amongst private sector banks Strategic • High ROE Business with high fee income & profitability. Advantages • Extensive branch expertise driving strong execution capabilities • Low RWA, ensuring optimal capital utilization • Branch network expan
Slide 93: Gold Business – Initiatives
Gold Business – Initiatives Innovation Cell Fee Focus Driving product innovation and enhancements Introducing foreclosure charges, documentation & auction charges to cover costs & enhance fee Gold Loan 3.0 Implementation Streamline Operations Integrated digital suite for loan origination, Seamless a
Slide 94: Inclusive Finance
ANALYST MEET Inclusive Finance
Slide 95: Inclusive Finance – Snapshot
Inclusive Finance – Snapshot • 20+ BC Partners, 900+ BC branches across 20 states & 2 UTs, ensuring deep market penetration Strategic • 1.35M+ customer base with strong growth potential (~98% Women and ~66% Rural) Advantages • High-yielding portfolio with high risk adjusted return • Prudent risk & c
Slide 96: Inclusive Finance – Initiatives
Inclusive Finance – Initiatives Digital Transformation Customer Journey & Growth Enhancing efficiency and reducing costs through digitized collections, real-time fraud detection via digital risk Expanding customer base & developing a comprehensive monitoring, and analytics-driven dashboards for smar
Slide 97: Agri Business
os WS ANALYST PS Meet Agri Business FEDERAL BANK YOUR PERFECT BANKING PARTNER
Slide 98: Agri Business – Snapshot
Agri Business – Snapshot • 80% PSL portfolio Strategic • Expanding customer base- 1 lac+ unique customers • Robust digital platform facilitating small-ticket Agri loans Advantages • Wide distribution through branch network & partnerships • Scaling digital platforms & product innovation for broader m
Slide 99: Agri Business – Initiatives
Agri Business – Initiatives Accelerate Digital Transformation Unified Lending Interface & Automation Digitize loan documents and processes Leverage on the Agri Stack and Unified Lending Interface and implement digital lending. to expedite credit delivery and expand customer base Product Customizatio
Slide 100: CV/CE
ANALYST MEET Cv /CE » q |
Slide 101: CV/CE – Snapshot
CV/CE – Snapshot • Strong brand & leveraging existing customer base Strategic • Robust distribution Through RMs, Branches and DSAs • PSL opportunities - ~80% qualifies as PSL Advantages • PAN India presence • Focus on used CV/ CE Expansion • Distribution – Deeper Geography penetration – T2 & T3 Busi
Slide 102: CV/CE – Initiatives
CV/CE – Initiatives Expand Distribution & Market Drive Yield Optimization & Profitability Penetration Expand to Tier 2 & 3 markets, strengthen dealer Use data-driven pricing; focus on high-yield sub-segments. & BC partnerships. Sweat the branch network Optimize Credit Delivery & Risk Management Stre
Slide 103: ANALYST MEET
ANALYST MEET 4 a » 2 By
Slide 104: Enabling Operational Excellence
Focus on automation and Process engineering since Dec’18 er Tra Governance & Risk Mitigation 1600+ ent de C Fi Governance t s ac na Centralization & Standardization Cont nc es Mi Effe Cost en e Ris tion Employees tig ctiv k a Operational Excellence io n O p e ra ll e n iza t e x c e al B tio c ral D
Slide 105: FedServ: Enabling Operational Excellence
FedServ: Enabling Operational Excellence Customer Account & IT & Security Engagement KYC Services ▪ Contact center Payments & ▪ Account opening, Back-Office & ▪ ATM and branch Trade Finance operations, inbound Digital Banking customer ID LCRD Operations remote & outbound support, creation, document
Slide 106: Streamlining Internal Processes - Key Projects
Streamlining Internal Processes - Key Projects Customer Support Consolidation Gold Loan Support ▪ Fed-Serv to fully take over customer support ▪ Dedicated inbound team to enhance service and operations, ensuring streamlined processes and engagement for Gold Loan customers. cost optimization “FREE TH
Slide 107: Tech Insourcing and Capability Enhancement
Tech Insourcing and Capability Enhancement Cost Savings Greater Control Enhanced & Flexibility Institutional Security ▪ Eliminates Innovation & Knowledge & recurring vendor Customization ▪ Faster ▪ Reduces risk of adaptation with Expertise costs and external exposing dependencies. ▪ Tailored deep sy
Slide 108: Depth Of Relationship – Leveraging Technology For The Human Touch
Depth Of Relationship – Leveraging Technology For The Human Touch Launch Cross-Channel campaigns with Deliver enhanced customer experiences personalized content Content CX Service Management Marketing Services DMP & Infinity Digital Customer Contact Centre Sales Portal Management Sales Partner Manag
Slide 109: Tech Focus & Future Roadmap
Digital At The Fore, Human At The Core Tech Focus & Future Roadmap Adoption of Low-Code/ Investment in Technology Cloud & API- AI & Data-Driven No-Code Platforms Infrastructure First Strategy Decision Making Accelerating digital Increasing tech Enhancing scalability, Leveraging AI, ML, and innovatio
Slide 110: Ensuring Customer Delight - Key Projects
Ensuring Customer Delight - Key Projects Mobile app Revamp Corporate Super App All new feature-rich retail mobile app Super App catering to all corporate AI packed features and personalized offerings Increase in customers Revenue NTB Acquisition Reduction of servicing cost X X 109
Slide 111: Envisioned Outcomes
Envisioned Outcomes.. … leading to ROE 2.20% expansion 16.00% With levers in place ROA ROE for ROA expansion.. 13.10% 10.80% 1.40% 1.20% Federal Next 3 Best 3 Federal Next 3 Best 3 P / BV multiples (consol basis)1 The envisioned 2.63 outcome… 1.3 1.37 Federal Next 3 Best 3 1101 :Source: Company fili
Slide 112: Thank You
ANALYST » 4 a THANK YOU FEDERAL BANK
The Federal Bank — Investor Presentation (February 2025) on 6ix