Idfc First Bank Ltd. · NSE:IDFCFIRSTB
Idfc First Bank — Q2 FY24 Earnings Presentation
105 slides from Idfc First Bank's earnings presentation, October 2023
Slide 1: Investor Presentation – Q2 FY24
Investor Presentation – Q2 FY24
Slide 2: Table of Contents
1 IDFC FIRST Bank Vision 2 Financial Highlights – Q2 FY24 3 Our Approach to building IDFC FIRST Bank 4 Market Opportunity 5 Products and Services 6 Deposits and Borrowings TABLE 7 Loans and Advances OF 8 Risk Management & Asset Quality CONTENTS 9 Profitability & Capital 10 Credit Rating 11 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 2019-20) (Annual Report 2019-20) (Annual Report 2019-20) (Annual Report 2019-20) MD and CEO message to employees and shareholders 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: 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 7: Section 2: Financial Highlights – Q2 FY24
Section 2: Financial Highlights – Q2 FY24
Slide 8: Bank At a Glance, as of September 2023
Section 2: Financial Highlights – Q2 FY24 Bank At a Glance, as of September 2023 Loans & Advances1 Core Operating Income2 (H1-FY24) US$ 22,077 Mn (26% YoY) US$ 1,254 Mn (37% YoY) Customer Deposits Core Operating Profit2 (H1-FY24) US$ 19,847 Mn (44% YoY) US$ 347 Mn (41% YoY) Diversification Profit Af
Slide 9: Key Financial Highlights of Q2 FY24
Section 2: Financial Highlights – Q2 FY24 Key Financial Highlights of Q2 FY24 Area Key Parameters Q2 FY23 Q2 FY24 Growth (%/bps) Assets Loans & Advances1 US$ 17,513 Mn US$ 22,077 Mn 26% Customer Deposits US$ 13,735 Mn US$ 19,847 Mn 44% Deposits CASA Ratio (%) 51.28% 46.41% -487 bps GNPA (%) – Bank l
Slide 10: Section 3: Our approach to building IDFC FIRST Bank
Section 3: Our approach to building IDFC FIRST Bank
Slide 11: Background
Approach to build IDFC FIRST Bank Background • IDFC Limited, a reputed Domestic Financial Institution, was awarded a commercial banking license and thus set up IDFC Bank. As part of this process, IDFC Limited transferred its corporate/infrastructure loan assets, infrastructure bonds, institutional b
Slide 12: Our approach to building IDFC FIRST Bank (1/3)
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, both institutions were asset focused firms with no retail liabilities, hence 91% of our liabilities were institutional. To address this, we prudently slowed dow
Slide 13: Our approach to building IDFC FIRST Bank (2/3)
Approach to build IDFC FIRST Bank Our approach to building IDFC FIRST Bank (2/3) In retail we have a track record of 12 years of maintaining our Gross NPA and Net NPA at around 2% and 1% respectively. During this period we have experienced multiple stress-tests, including economic slowdown High Asse
Slide 14: Our approach to building IDFC FIRST Bank (3/3)
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. Corporate Gover
Slide 15: Section 4: Market Opportunity
Section 4: Market Opportunity
Slide 16: Market Opportunity (Deposits)
Section 4: Market Opportunity Market Opportunity (Deposits) • Total Deposit for all scheduled banks in India currently is US$ 2,415 Billion which is growing at 13.3% YOY as per the RBI data (06-Oct-2023) • IDFC FIRST Bank is 0.85% of the overall bank deposits and has significant room for growth goin
Slide 17: Market Opportunity (Retail, Rural & SME Loans)
Section 4: 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% which has significant room for growth going forward along with rural finance and small business credit. Retail cr
Slide 18: Retail, Rural & SME Loans: Growth Opportunity for IDFC FIRST Bank
Section 4: 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 provide by the Indian Banking Credit for the Personal and SME business se
Slide 19: Section 5: Products and Services
Section 5: 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 20: The Bank has developed a wide Product Suite of a Universal Bank
Section 5: 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 21: The Bank has a wide bouquet of products for consumers, MSMEs and Corporates
Section 5: Products and Services The Bank has 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 needs rang
Slide 22: The Bank has a wide range of Current and Savings Account Offerings
Section 5: Products and Services The Bank has a wide range of Current and Savings Account Offerings • Targeted for 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 requ
Slide 23: Our Digital Initiatives
Section 5: Products and Services Our Digital Initiatives Significant traction on electronic platforms RTGS & NEFT 95% Ranked 3rd UPI value: Growth of ~63% payments through CMS Of the overall Bharat Bill Payment over the last year solutions up by 11% YoY (vol.) transactions are System (BBPS): amongst
Slide 24: India's FIRST FASTAG with Triple Benefits – Toll, Fuel and Parking
Section 5: 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 15.0
Slide 25: Wealth Management AUM up 47% YoY to US$ 1,407 Million
Section 5: Products and Services Wealth Management AUM up 47% YoY to US$ 1,407 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 26: 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
Slide 27: IDFC FIRST Bank – Drivers for Deposit Growth
Section 6: 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 28: Deposits: Strong growth in Total Customer Deposits
b. Total Customer Deposits Section 6: Deposits & Borrowings Deposits: Strong growth in Total Customer Deposits • Total Customer Deposits (Retail Deposits + Wholesale Deposits) has grown strongly by 4 Year CAGR (Mar-19 to Mar-23) of 36%. in US$ Million YoY – Sep-23 vs Sep-22 ↑44% QoQ – Sep-23 vs Jun-
Slide 29: CASA Deposits - Bank has a demonstrated capability to grow CASA deposits
a. CASA Deposits Section 6: 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 26% YOY as of 30 Sep
Slide 30: CASA Ratio at 46.4%
a. CASA Deposits Section 6: Deposits & Borrowings CASA Ratio at 46.4% • CASA Ratio stable at 46.4% as of September 30, 2023. • Average Daily Balance CASA Deposits for the bank grew by 27% YoY during the first half of the year. 51.7% 48.4% 49.8% 46.5% 46.4% 31.9% 11.5% 11.4% 8.7% 31 Mar 18 31 Dec 18
Slide 31: Bank has a highly Diversified liabilities base with 77% Retail Customer Deposits
c. Diversification of Deposits Section 6: Deposits & Borrowings Bank has a highly Diversified liabilities base with 77% Retail Customer Deposits • The Bank has transformed the liability profile in 4 years from wholesale to retail, in order to diversify the deposit base. • The Retail wholesale Deposi
Slide 32: Deposits & Borrowings Details
d. Summary of Deposits & Borrowings Section 6: Deposits & Borrowings Deposits & Borrowings Details The Bank has grown its deposits by 44% YOY driven by the retail deposits which was utilized for growth of assets and repayment of the legacy borrowings. Borrowings (excluding money market borrowings) r
Slide 33: 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$ Million RoI (%) As on Sep-22 As on Sep-23 H2-FY24 FY25 FY26 Beyond FY26 Infrastructure Bonds 933 712 0 611 101 0 8.94% Long Term Legacy Bon
Slide 34: Section 7: Loans & Advances
Section 7: Loans & Advances Bank has a well diversified Credit Portfolio
Slide 35: The Bank has diversified its loan book across more than 20 business lines
Section 7: Loans & Advances The Bank has diversified its loan book across more than 20 business lines Emerging Enterprises Financial Institutions Other Corporates 2% 6% 8% Loan Book: September 30, 2023 Large Corporate 1% Infrastructure Financing US$ 22,077 Million 2% Other SME Loans 5% Gold Loans 0.
Slide 36: Bank has run down Infrastructure Project financing Book to below 2% of funded assets
Section 7: 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% 1.8% 562 404 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-2
Slide 37: Section 8: Risk Management & Asset Quality
Section 8: 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 38: The Bank has developed unique capabilities for Risk Management
Section 8: Risk Management & Asset Quality The Bank has developed unique capabilities for Risk Management • The Bank lends on the basis of cash flow assessment – Cash Flow Assessment A. Where the cash flow of the borrower is assessed (Bank statements, GST filings, Bureau Data B. This is coupled with
Slide 39: Bank has utilized the new Indian digital Ecosystem for better controls in lending
b. Retail, Rural & SME Loans Section 8: 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 • B
Slide 40: 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, Rural and SME 17,685 1.53% 0.52% 85.06% Finance Corporate 3,350 2.56% 0.11% 97.73% (N
Slide 41: Risk Management Funnel for Retail, Rural & SME Loans
b. Retail, Rural & SME Loans Section 8: 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* (6.60%) We follow it up with This slide ex
Slide 42: The Bank has a 10 Step Stringent Underwriting Process (1/2)
b. Retail, Rural & SME 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 43: The Bank has a 10 Step Stringent Underwriting Process (2/2)
b. Retail, Rural & SME 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 44: Bank has tightened underwriting norms which has resulted in low cheque bounces
b. Retail, Rural & SME Loans Section 8: Risk Management & Asset Quality Bank has tightened underwriting norms 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 indicator of the Quality of B
Slide 45: Low cheque bounces is further supported by high collection efficiency at 99.5%
b. Retail, Rural & SME Loans Section 8: Risk Management & Asset Quality Low cheque bounces is further supported by high collection efficiency at 99.5% Definition: Collection Efficiency % = (EMI Collected for the Month)/ (EMI Due for the month)* 100 Note: Total collections does not include any arrear
Slide 46: High collection efficiency leads to low SMA
b. Retail, Rural & SME Loans Section 8: 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 0.89% 0.85% 31-60 days, and SMA 2 is the overdue 0.77% portfolio in 61-90
Slide 47: Bank has maintained High Retail asset quality GNPA of ~2% and NNPA ~1%
b. Retail, Rural & SME Loans Section 8: 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 48: All Product of the Bank have low Gross and Net NPA
b. Retail, Rural & SME Loans Section 8: Risk Management & Asset Quality All Product of the Bank have low Gross and Net 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%,
Slide 49: 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 50: Bank has reduced concentration risk in Wholesale lending
c. Wholesale Financing Section 8: 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 16% in Sep-23 from 19% in Mar-1
Slide 51: Provision Coverage Ratio increased to 84.09% for the Bank
d. Provision Coverage Ratio Section 8: Risk Management & Asset Quality Provision Coverage Ratio increased to 84.09% for the Bank Retail, Rural & SME Finance Non-Infra Corporate Book 82.43% 85.06% 94.50% 99.84% 97.73% 65.08% 69.59% 72.32% 57.53% 58.51% 44.56% 45.95% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Slide 52: Net Stressed Assets reduced significantly to only 0.66% of total Assets
e. Net Stressed Assets Section 8: Risk Management & Asset Quality Net Stressed Assets reduced significantly to only 0.66% of total Assets Net stressed Assets = Net NPA + Net SRs + Net Restructured Assets (OTR) 1.28% • The Bank has reduced the net stressed assets, both in absolute value and as % of t
Slide 53: 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 52
Slide 54: 34% YoY growth in Net Interest Income during H1 FY24
a. Net Interest Income Section 9: Profitability & Capital 34% YoY growth in Net Interest Income during H1 FY24 Net Interest Income (In US$ Million) 1,522 34% increase in NII in H1 FY24 on YoY basis against balance sheet growth of 24% YoY 4Y CAGR: 27% 1,169 889 927 732 30% 693 584 32% 21% 25% FY19* F
Slide 55: 47% YoY growth in Fee & Other Income during H1 FY24
b. Fee & Other Income Section 9: Profitability & Capital 47% YoY growth in Fee & Other Income during H1 FY24 Fee and Other Income (In US$ Million) 499 47% increase in Fee and Other income in H1 FY24 on YoY basis 4Y CAGR: 37% 324 327 54% 222 187 195 66% 141 5% 33% FY19* FY20 FY21 FY22 FY23 H1 FY23 H1
Slide 56: Breakup of Fee & Other Income – H1 FY24
b. Fee & Other Income Section 9: Profitability & Capital Breakup of Fee & Other Income – H1 FY24 General Banking Fees & Others Loan Origination fees • The Bank has launched and 28% 32% scaled up many fee-based products in the last 4 years. • Many of these products are in the early stage of their lif
Slide 57: Cost to Income ratio – Investment Requirements
c. Cost to Income Ratio Section 9: 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 Mn, of which only US$ 1,253 Mn (8.04%) were retail Deposits and US$ 14,335 Mn (91.96%) were institu
Slide 58: Bank has launched and scaled up many new products in the last 2 years
c. Cost to Income Ratio Section 9: 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 Constructio
Slide 59: 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 • 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 down
Slide 60: 41% YoY growth in Core Operating Profit during H1 FY24
d. Core Pre-provisioning Operating Profit Section 9: Profitability & Capital 41% YoY growth in Core Operating Profit (excluding trading gains) during H1 FY24 The core operating profit (excluding trading gains) of the Bank is growing higher than the overall balance sheet growth. This demonstrates the
Slide 61: Improving Operating Profit as % of total assets
d. Core Pre-provisioning Operating Profit Section 9: 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% 2.02% 1.56% 1.22% 1.11% (Post-merger) (Pre-merger 0.76% standalone Bank) 0.32% H1 FY19
Slide 62: Bank has turned profitable on sustained basis
e. Net Profit Section 9: 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 67 73 57 34 41 11 12 16 15 18 9 -26 COVID -45 2nd wave -74 -82 -76 Provisions on Infra DTA A/Cs •
Slide 63: 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 (%) 11.36% 10.43% 1.20% 9.54% 1.13% 1.02% 2.73% 0.29% 0.75% 0.08% FY21 FY22 FY23 H1 FY23 H1 FY24 FY21 FY22 FY23 H1 FY23 H1 FY24 RoA(%) and RoE(%) are annualized for
Slide 64: Quarterly Income Statement
g. Financial Statements Section 9: Profitability & Capital Quarterly Income Statement Growth (%) In US$ Million Q2 FY23 Q1 FY24 Q2 FY24 YoY Interest Income 659 827 886 34% Interest Expense 297 376 410 38% Net Interest Income 362 451 476 32% Fee & Other Income 114 162 166 46% Trading Gain 14 9 7 -53%
Slide 65: Half Yearly Income Statement
g. Financial Statements Section 9: Profitability & Capital Half Yearly Income Statement Growth (%) In US$ Million H1 FY23 H1 FY24 YoY Interest Income 1,252 1,714 37% Interest Expense 559 787 41% Net Interest Income 693 927 34% Fee & Other Income 222 327 47% Trading Gain 9 15 75% Operating Income 924
Slide 66: Balance Sheet
g. Financial Statements Section 9: Profitability & Capital Balance Sheet Growth (%) In US$ Million Sep-22 Jun-23 Sep-23 (YoY) Shareholders' Funds 2,657 3,197 3,334 26% Deposits 14,873 18,606 20,631 39% - CASA Deposits 7,627 8,646 9,574 26% - Term Deposits 7,246 9,959 11,056 53% Borrowings 6,824 6,71
Slide 67: Capital Adequacy Ratio is strong at 16.54% as on September 30, 2023
h. Capital Adequacy Ratio Section 9: Profitability & Capital Capital Adequacy Ratio is strong at 16.54% as on September 30, 2023 In US$ Million Sep-22 Jun-23 Sep-23 Common Equity 2,588 3,088 3,226 Tier 2 Capital Funds 318 736 729 Total Capital Funds 2,906 3,824 3,955 Total Risk Weighted Assets 18,93
Slide 68: Section 10: Credit Rating
Section 10: Credit Rating
Slide 69: Bank's Long Term Credit Rating has been recently upgraded
Section 10: 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 70: Section 11: Board of Directors
Section 11: Board of Directors
Slide 71: Board of Directors: MD & CEO Profile
Section 11: 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, rea
Slide 72: Board of Directors: COO Profile
Section 11: Board of Directors Board of Directors: COO Profile MR. Madhivanan Balakrishnan - EXECUTIVE DIRECTOR Mr. Madhivanan Balakrishnan is the Chief Operating Officer (COO) of IDFC FIRST Bank. He is a customer focused and respected industry thought leader with a broad expertise across business d
Slide 73: Board of Directors
Section 11: 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 74: Board of Directors
Section 11: 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 75: Board of Directors
Section 11: Board of Directors Board of Directors Mr. Mahendra N. Shah – NON-EXECUTIVE NON INDEPENDENT DIRECTOR Mr. Mahendra N. Shah was the Group Company Secretary & Group Chief Compliance Officer of IDFC Bank Limited and had been the Group Head - Governance, Compliance & Secretarial and Senior Adv
Slide 76: Section 12: Shareholding
Section 12: Shareholding
Slide 77: Shareholding Pattern as of September 30, 2023
Section 12: Shareholding Shareholding Pattern as of September 30, 2023 Scrip Name: IDFC FIRST Bank (BSE: 539437, NSE:IDFCFIRSTB) Other Body Trusts and Clearing Corporate (0.89%) Members (0.51%) President of India Others (0.03%) (3.89%) Public (23.72%) Promoters (39.37%) Total # of shares as of Sep 3
Slide 78: Growth in book value per share
Section 12: Shareholding Growth in book value per share Book Value Per Share reduced during the first few years after During the last 9 quarters, the BVPS increased by 28% with the merger due to credit losses arising from legacy corporate and increasing profitability from the core business model inf
Slide 79: Section 13: Progress on ESG
Section 13: Progress on ESG
Slide 80: Our ESG Priorities Align with Our Corporate Vision
Section 13: 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 81: ESG at IDFC FIRST Bank – Environmental and Green initiatives
Section 13: 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 • IGBC & LEED certification for four of our large offices across Mumbai, Delhi and • 1.47 lak
Slide 82: ESG at IDFC FIRST Bank – Social and Governance initiatives
Section 13: 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 • ~9.9 lakh learnin
Slide 83: ESG Commitments, Ratings and Governance
Section 13: Progress on ESG ESG Commitments, Ratings and Governance ESG Commitments ESG Governance • FY 2023 annual disclosures published through the Bank’s first Integrated Structure Report, aligned with Int’l IR framework, GRI and SASB • Official Participant of United Nations Global Compact (UNGC)
Slide 84: Recognitions for ESG Efforts
Section 13: Progress on ESG Recognitions for ESG Efforts Institute of Directors India CFI.co - Capital Finance International UBS Forums Transformance Forums Economic Times BFSI Excellence Awards Golden Peacock Award in ESG Outstanding Commitment to ESG ESG Rising Star & Sustainability Best Bank Lead
Slide 85: Section 14: Awards and Recognition
Section 14: Awards and Recognition
Slide 86: Awards and Recognition
Section 14 : 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 - by Fun & Joy at Work Dre
Slide 87: 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. 86
Slide 88: 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 89: Thank You
Thank You IDFC FIRST Bank
Slide 90: Annexure 1
Annexure 1 Performance of the Bank against the stated goals 89
Slide 91: The Bank is 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 Sep-23 Particulars Guidance for FY24-FY25 Status (At Merger) Last quarter CET – 1 Ratio 16.14% >12.5 % 13.49%1 On Track Capital Capital Adequacy (%) 16.51% >13.0 % 16.54%1 On Track 30% (FY24), CASA as a % of
Slide 92: The Bank is 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 Sep-23 Particulars Guidance for FY24-FY25 Status (At Merger) Last quarter Top 10 borrowers as % of Total Loans & Advances (%) 12.8% < 5% 2.5% Achieved GNPA (%) 1.97% 2.0% - 2.5% 2.11% On Track Asset Quality
Slide 93: Annexure 2
Annexure 2 Breakup of the loans & advances with YoY growth 92
Slide 94: 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) Sep-22 Jun-23 Sep-23 YoY (%) QoQ (%) Retail Finance 9,802 11,726 12,603 29% 7% - Home Loan 2,039 2,426 2,561 26% 6% - Loan Against Property 2,258 2,422 2,606 15% 8% - Vehicle Loa
Slide 95: Annexure 3
Annexure 3 Background of IDFC FIRST Bank – Merger of IDFC Bank and Capital FIRST
Slide 96: 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 97: 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. 96
Slide 98: 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 97
Slide 99: 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 100: 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 101: 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 102: 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 103: 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 104: Annexure 5
Annexure 5 Proforma Financials before merger (H1-FY19) 103
Slide 105: 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 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