Slides
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Investor Presentation – Q4 FY25
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IDFC FIRST Bank 1
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Key Highlights of FY25 • Strong growth of 25.2% YoY in Customer Deposits to reach Rs. 2,42,543 crores • 26.4% YoY growth in Retail Deposits to reach Rs. 1,91,268 crore • Strong growth of 24.8% YoY in CASA deposits Deposits • Total Loan Book grew 20.4% YoY to Rs. 2,41,926 crore. • Retail, Rural and MSME Loan Book grew 18.6% YoY to reach Rs. 1,97,568 crore. • Bank continues to de-grow its Microfinance portfolio, which as % of overall loan book reduced from 6.6% in March-2024 to 4.0% in Mar-2025 • Loan growth driven by steady growth in Mortgage Loans, Vehicle Loans, Gold Loans, MSME Loans and Corporate loans Loans & Advances • Overall, excluding MFI business, the rest of the loan book of the Bank, including corporate, retail, MSME and rural are stable • GNPA and NNPA of the Bank stood at 1.87% and 0.53% in Mar-25 as compared to 1.94% and 0.52% in Dec-24 • Excluding Microfinance Book, GNPA and NNPA stood at 1.63% and 0.47% in Mar-25 as compared to 1.81% and 0.49% in Dec-24 • Gross and Net NPA of Retail, Rural and MSME Book (ex. microfinance) improved QOQ from 1.46% and 0.56% to 1.40% and 0.56%, respectively • The gross slippage improved from Rs. 2,192 crores in Q3 FY25 to Rs. 2,175 crore in Q4 FY25 • The gross slippages for microfinance business increased from Rs. 437 crore in Q3-FY25 to Rs. 572 crore in Q4-FY25; slippages excluding micro- finance business was lower by ~Rs. 150 crore on a QoQ basis • Provision Coverage ratio was healthy at 72.3% as of March 31, 2025 • All the key product segments including mortgages, vehicle loans, personal loans, credit cards have stable SMA 1+2 portfolio Asset Quality 2
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Key Highlights of FY25 • Net Interest Income (NII) grew 17.3% YOY from Rs. 16,451 crore in FY24 to Rs. 19,292 crore in FY25 • Net Interest Margin (NIM) of the Bank was at 5.95% for Q4 FY25 as compared to 6.04% in Q3 FY24. NIM declined largely due to decline in the micro-finance business • Fee and Other Income grew by 15.2% from Rs. 5,795 crore in FY24 to Rs. 6,676 crore in FY25 • Core Operating income grew 16.7% from Rs. 22,245 crore in FY24 to Rs. 25,968 crore in FY25 • Operating Expense grew by 16.5% from Rs. 16,216 crore in FY24 to Rs. 18,899 crore in FY25 • Core Operating Profit grew by 17.2% from Rs. 6,030 crore in FY24 to Rs. 7,069 crore for FY25 • Core Operating Profit, excluding Microfinance business grew 31% YOY for FY 25 • Net Profit de-grew by 48.4% from Rs. 2,957 crore in FY24 to Rs. 1,525 Crore in FY25, largely impacted by microfinance business Profitability • The Capital adequacy ratio (post dividend) was strong at 15.48% with CET-I ratio of 13.17% • The board has approved the fresh equity capital raise of ~ Rs. 7,500 crore through issuance of Compulsorily Convertible Preference Shares (CCPS) to Currant Sea Investments B.V., an affiliate company of Warburg Pincus LLC and Platinum Invictus B 2025 RSC Limited, a wholly owned subsidiary of private equity division of Abu Dhabi Investment Authority (ADIA) ; Post conversion into equity, the CRAR and TIER-I would be 18.2% and 15.9% if calculated on March 31, 2025 numbers • The Board approved a dividend of Rs. 0.25 per share, subject to shareholders’ approval. Capital • Provisions for FY25 stood at Rs. 5,515 crore (2.46% of loan book) primarily driven because of the higher provisioning in the microfinance book • Excluding microfinance and one legacy infrastructure toll account, the credit cost for FY25 was at 1.76%, for Q4-FY25 it has improved to 1.73% from 1.82% in Q3-FY25 • The Bank continues to carry contingency provision buffers of Rs. 315 crore on a prudent basis Provisions • The Bank has Long Term Credit Rating of AA+ (Stable) from the CARE & CRISIL ratings • Fixed Deposit Program has highest rating of “AAA” by CRISIL Ratings Rating 3
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T ABLE OF CONTENTS Awards & Recognition 10 Digital Capabilities 5 Building a Universal Bank 1 Deposits and Borrowings 2 Profitability & Capital 6 Credit Rating 7 Board of Directors 8 4 Robust Risk Framework Diversified Loan Portfolio 3 Progress on ESG 9 Microfinance Business 11 5 13 25 32 47 52 59 75 77 80 85
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• 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, an infrastructure Financing Domestic Financial Institution. The loan assets and borrowings of IDFC limited were transferred to IDFC Bank at inception of IDFC Bank in 2015. • Erstwhile Capital First was a successful consumer and MSME financing entity since 2012 with strong track record of growth, profits and asset quality. • On merger, the Bank was renamed IDFC FIRST Bank. IDFC FIRST Bank was created by merger of IDFC Bank and Capital First in December 2018 5 Section 1: Building a Universal Bank
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IDFC FIRST Bank was created by merger of IDFC Bank and Capital First in December 2018 6 BALANCE SHEETPROFITABILITY Erst. CAPITAL FIRST (30-Sep-2018) Erst. IDFC Bank (30-Sep-2018) IDFC FIRST Bank, (on merger) (31-Dec-2018) IDFC FIRST Bank (now) (31-Mar-2025) Parameters NIM % Core PPOP to Average Asset Cost to Income Branches 8.2% 5.0% 47.5% 0 1.6% 0.10% 92.4% 203 3.1% 0.78% 82.2% 206 6.1% ^ 2.21% 71.8% 1,002 Profitability numbers for Sep-18 are for H1 FY19, Dec-18 are of Q3 FY19; Mar-25 are of FY25.; ^NIM is Gross of IBPC & Sell-down *AUM of Capital First as on 30 September 2018 stood at Rs. 32,623 crore. Funded book was Rs. 26,994 cr. As an NBFC Capital First did not have any deposits. Change Since Merger Loan Book 26,994* 75,332 1,04,660 2,41,926 2.3X Customer Deposit 0 36,369 38,455 2,42,543 6.3X Retail Deposit 0 9,008 10,400 1,91,268 18.4X CASA Deposit 0 6,253 5,274 1,18,237 22.4X 300 bps 143 bps -1,036 bps 4.9X Section 1: Building a Universal Bank CASA Ratio 0 13.0% 8.7% 46.9% 5.4X Net Worth 2,928 14,776 18,376 38,078 2.1X
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Section 1: Building a Universal Bank 02. Defined the Vision of the Bank 01. Concluded Smooth Integration of IDFC Bank and Capital First 03. Instilled Customer First Philosophy in the Bank 04. Built a strong Leadership Team 05. Created Robust Risk Management framework 06. Built Culture of Governance and independence of Control Functions 09. Launched New Products & Services and scaled them up 07. Built as Universal Bank with complete products and services 08. Built a Strong Brand Image 10. Implemented Contemporary Technology, Digital innovation & analytics 11. Upgraded Long Term Credit Rating by top credit rating agencies 12. Strengthened ESG practices, improved ESG rating We are happy to share that IDFC FIRST Bank has made significant progress on all counts during the last 6 years including Deposits, Loan, Capital, Assets and Leadership Team Building. Some of the key building blocks are summarized below - Post merger, the Bank undertook key initiatives to address the challenges and create necessary building blocks for future growth over the last 6 years.. 7
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Bank has launched and scaled up many new products FY18 FY19 Consumer Durable Home Loan Loan Against Property Used Car Loan Personal Loan Two-Wheeler Corporate Banking Business Banking Micro Finance Transaction Banking Fixed DepositLiability Products Loan Products Agri / Farmer Loans Current Accounts Variants Tractor Loans Education Loan Gold Loan Forex Solution Digital Loans Wealth Management Cash Management Service Fast Tag Prime Home Loans New Car Loan Credit Card FY20 FY21 FY22 FY23 & FY24 Some of the Key New Products Launched Post-Merger Fee-based Products From FY19 onwards, the Bank launched a number of products in the areas of loans, deposits, fee-based products and payment solutions to become a full service Universal Bank with diversified streams of income. • Most of businesses are in early stage of their lifecycle. The Bank has made investments in people, technology, marketing, distribution etc. in the initial phase. • In the longer run, these will provide stable profit streams as they scale up. • The Bank also scaled up all the existing products including the ones added after the after merger Section 1: Building a Universal Bank Savings Account Current Account CV Loans 8
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Retail Lending SME Lending Deposits & Accounts NRI Banking Wealth Management & Distribution Trade Finance Solutions Transaction Banking & CMS Treasury & Forex Solutions Fastag Supply Chain Financing Credit Cards • U N I V E R S A L • B A N K Corporate Lending FASTag Tag Issuer, Toll Acquirer solution, 3-in- 1 solution including Toll, Parking & Fuel Treasury & Forex Solutions Correspondent banking, FX Solutions, Cross-border SWIFT, Government Bonds & Strips, Liberalized Remittance Scheme, External Commercial Borrowing, Treasury solutions incl. forwards, options, swaps etc. TradeFinance Letter of Credit & discounting, Bank Guarantee, Buyer’s Credit / SBLC, Packing Credit in Foreign Currency & INR, Remittances (inward & outward), Preshipment & post shipment finance Transaction Banking & CMS NEFT/RTGS/IMPS Payments, Transfers (ACH, Direct debit), UPI & QR, Cheques, Demand drafts, Cash Delivery, Payroll Processing, BBPS Payments, Cash/ cheque collection, Cash Deposit machine CASA and Fixed Deposits Current Accounts, Savings Accounts, Fixed Deposits, Nostro/ Vostro Accounts, Overdrafts, Corporate Salary Accounts, Accounts for ONDC, Escrow Accounts, NRI Banking NRE Accounts, NRO Accounts, Seafarer Accounts, FCNR Deposits, NRE / NRO Deposits Credit Cards Wealth Credit Card, Private Credit Card, Millenia Credit Card, WoW Credit Card against Deposits, Corporate Card, Vistara Travel card, HP Fuel Card Wealth Management & Distribution Wealth Management, Distribution of Life Insurance, General Insurance, Credit Shield, Health Insurance, Mutual Funds, AIFs SME Lending Solutions Loan Against Property, Business Banking, Working Capital Loans, Commercial Vehicle Loans, Micro Enterprise Loans, Trade Advance, Startup Banking Supply Chain Financing Dealer finance, Vendor finance, TREDS, Factoring, Invoice discounting The Bank now has built a full Suite of Universal Banking Products.. Corporate Lending Working Capital demand Loans, Cash Credit, Term Loans, Corporate Bonds / NCDs, Foreign Currency Loans Retail Lending Solutions Home Loans, vehicle Loans, Consumer Loans, Education Loans, Personal Loans, Used Car Loans, Gold Loans, Rural Finance, Tractor Finance 9 Section 1: Building a Universal Bank
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Bank has built a strong franchise of 36 M customers Section 1: Building a Universal Bank - 3.5M Mar-19 Mar-25 Credit Cards in Force 3,641 98,310 Mar-19 Mar-25 NRI Customers 5,500 2,30,000 Mar-19 Mar-25 Wealth Management Customers 9.3Mn 35.5Mn Mar-19 Mar-25 Total Unique Customers 1. Credit Cards business commenced in 2021 10
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Expanding customer franchise in SME & Corporate Banking Section 1: Building a Universal Bank 1,153 3,545 Mar-19 Mar-25 CMS Relationships 1,732 9,448 Mar-19 Mar-25 Business Banking Customers 0.1Mn 16.2Mn Mar-19 Mar-25 FASTag Customers - 25,389 Mar-19 Mar-25 Start-up Banking Customers 11
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Bank has set-up 1,002 branches across India 12 • IDFC FIRST Bank Branches and ATMs are spacious, digitally equipped, and customer friendly staff. • The Bank intends to grow the branch network by 10% each year in near term. • Bank grew its branch network 5X from 206 branches as on the date of merger to 1,002 branches as on March 31, 2025. Section 1: Building a Universal Bank
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Section 2: Deposits and Borrowings
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38,455 40,504 57,719 82,725 93,214 1,36,812 1,93,753 2,42,543 Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Customer Deposits Strong growth in Customer Deposits, YoY growth of 25% Mar-25 vs Mar-24 Rs. 48,791 Cr Mar-25 vs Dec-24 Rs. 15,228 Cr 25.2% 6.7% Section 2: Deposits & Borrowings In Rs. Crore 14
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10,400 13,214 33,924 63,894 68,035 1,03,870 1,51,343 1,91,268 Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Retail Deposits Strong growth in Retail Deposits, YoY growth of 26% Section 2: Deposits & Borrowings In Rs. Crore Mar-25 vs Mar-24 Rs. 39,925 Cr Mar-25 vs Dec-24 Rs. 10,516 Cr 26.4% 5.8% 15
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5274 7,893 20,661 45,896 51,170 71,983 94,768 1,18,237 Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 CASA Deposits Strong growth in CASA Deposits, YoY growth of 25% Section 2: Deposits & Borrowings In Rs. Crore Mar-25 vs Mar-24 Rs. 23,469 Cr Mar-25 vs Dec-24 Rs. 5,159 Cr 24.8% 4.6% 16
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CASA Ratio Stable at ~47% Section 2: Deposits & Borrowings CASA Ratio as of 31st December 2024 was 47.7% 8.7% 11.4% 31.9% 51.7% 48.4% 49.8% 47.2% 46.9% Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 17
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• It is a strategic priority of the Bank to diversify the deposits by raising retail deposits. • Retail Deposit customers get used to transactions, id, passwords, RMs, branch services, auto debits, SI debit, EMI debits, MF investing and hence is more stable than bulk deposits. • Retail deposits have increased from 27% of deposits at merger to 79% currently which has significantly stabilized the deposits side. • Certificate of Deposits (short term money) has come down from Rs. 22,312 crore as of Dec-18 to Rs. 9,522 crore as of March-25. Bank has a highly diversified liabilities base with 79% Retail Customer Deposits 18 Section 2: Deposits & Borrowings Dec-18 Rs. 38,455 crore 27% 73% Rs. 28,055 crore (Wholesale Deposits) Rs. 10,400 crore (Retail Deposits) Mar-25 Rs. 2,42,543 crore 79% 21% Rs. 1,91,268 crore (Retail Deposits) Rs. 51,275 crore (Wholesale Deposits) Customer Deposits
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Deposits & Borrowings Details Particulars (in Rs Cr) Mar-24 Dec-24 Mar-25 YoY Growth Legacy Long Term & Infrastructure Bonds 10,132 6,068 4,215 -58.4% Refinance & Other Borrowings 19,213 26,326 23,450 22.1% Tier II Bonds 4,500 4,500 4,500 0.0% Total Borrowings (A) 33,845 36,894 32,166 -5.0% CASA Deposits 94,768 1,13,078 1,18,237 24.8% Term Deposits 98,985 1,14,237 1,24,306 25.6% Total Customer Deposits (B) 1,93,753 2,27,316 2,42,543 25.2% Certificate of Deposits (C) 6,823 9,562 9,522 39.5% Money Market Borrowings (D) 17,091 9,496 6,809 -60.2% Borrowings & Deposits (A) + (B) + (C) + (D) 2,51,512 2,83,268 2,91,040 15.7% CASA Ratio (%) 47.2% 47.7% 46.9% -34 bps Average CASA Ratio % (On Daily Average Balance for the Quarter) 45.9% 46.9% 46.5% 60 bps 19 Section 2: Deposits & Borrowings
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7.80% 6.48% H2-FY19 FY25 Bank has reduced Cost of Funds by 132 bps since merger 20 Section 2: Deposits & Borrowings • The Cost of Funds of the Bank reduced from 7.80% at merger to 6.48%, a reduction of 132 bps which demonstrates the Bank’s ability to raise low-cost deposit at scale. • Cost of Funds for Q4-FY25 was 6.51% against 6.49% in Q3-FY25. • Cost of Deposits of the Bank was at 6.38% for Q4 FY25 (6.38% in Q3 FY25) Cost of Funds
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48% 11% 19% 3% 21% 13% 6% 31%5% 42% Dec-18 Mar-25 CASA Retail Term Deposits Wholesale term Deposits Certificate of Deposits Borrowings The Bank has raised Retail Deposits and CASA to wind down Borrowings and Certificate of Deposits 21 • Borrowing and Certificate of Deposits together as % of total deposits & Borrowings has reduced from 67% during merger to 15% currently • At the same time, the contribution of granular retail term deposits and CASA has gone up from merely 11% during merger to 73% currently. Section 2: Deposits & Borrowings *Borrowings excludes Money market borrowings Rs. 1,19,567 crore Rs. 2,84,231 crore Composition of Total Deposits & Borrowings*
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Reliance on borrowings has declined meaningfully, completing the liability side transformation Section 2: Deposits & Borrowings 48% 44% 44% 31% 27% 22% 14% 11% Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Borrowings (Excluding Money Market) as a % of total Deposits & Borrowings 22
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57,652 44,544 34,505 29,996 25,180 17,673 11,809 4,801 Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Bank continues to run down the Legacy high-cost long-term borrowings 23 • Because we have a DFI background, the legacy borrowings are costing the bank 8.76%. The Bank plans to replace this with low- cost deposits. Section 2: Deposits & Borrowings Maturity of Legacy Borrowings FY26 Rs. 4,495 Crore Beyond FY26 Rs. 306 Crore
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Credit Deposit Ratio has reduced from 137% to below 94% Section 2: Deposits & Borrowings 169.0% 156.6% 159.0% 132.1% 122.2% 111.0% 100.2% 96.0% 137.0% 124.9% 134.8% 117.0% 114.5% 107.0% 98.4% 93.9% Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 CD Ratio (Gross Advances & Credit Substitutes) CD Ratio (Gross Advances) Incremental CD ratio (Gross Advances) on yearly basis (i.e. since March 2024) stood at 76.1% 24
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Section 3: Diversified Loan Portfolio
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Diversified Loan Book The Bank has transformed the loan book from a primarily wholesale credit book to a well diversified portfolio including retail, rural, MSME and corporate Banking Section 3: Diversified Loan Portfolio Loan Book: Rs. 1,04,660 crore, December 31, 2018 Loan Book: Rs. 2,41,926 crore, March 31, 2025 Wholesale Book 65% Wholesale Book 18% Retail Mortgage Backed Loans 13% Vehicle Loans 5% Rural Finance 4% MSME Financing 4% Other Retail and Consumer Loans 9% Corporate Loans 43% Infrastructure Loan 22% Retail Mortgage Backed Loans 29% Vehicle Loans 11% Rural Finance 8% MSME Financing 9% Other Retail and Consumer Loans 25% Corporate Loans 17% Infrastructure Loan 1% • The Bank has reduced infrastructure loan as a % of total loan assets from 22% at merger to below 1% currently. • The Bank has improved the mortgage-backed loans % of the total loan assets from 13% at merger to 29% currently. • Other retail and consumer loans as % of the total loan assets from 9% at merger to 25% currently. 26
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Home Loan 11% Loan Against Property 12% Business Banking 4% KCC 2% Salaried Personal Loan 5% Digital Personal Loan 6% Credit Card 3% Two Wheeler Loan 7% Car Loan 3.41% CV/CE Financing 3% Consumer Durable Loans 3% Gold Loan 1% Education Loan 1% Digital Consumer Durable loan 0.3% Rural Finance 8% Micro Credit & MSME Loans 6% Small Business and Professional Loan 4% Other Retail 1% Other Commercial Loans 0.3% Large Corporates 1% Emerging Corporates 6% Financial Institutions 9% Other Corporates incl SE/SR 1% Infrastructure Financing 1% The Bank has diversified its loan book across more than 25 business lines 27 Section 3: Diversified Loan Portfolio 29% of total loan book Backed by Mortgage Loan Book: March 31, 2025 Rs. 2,41,926 crore 14% of total loan book is Unsecured Retail Credit GNPA = 1.89% NNPA = 0.56% NPA Includes Personal loans, Digital loans, education loans & credit cards
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Loan Growth driven by HL, LAP , Vehicle and MSME & Corporate Loans 28 • Rural Finance, CV/CE Financing, Business Banking, Gold Loans, Home Loans (< Rs. 30 Lacs) largely contribute to the PSL requirements of the Bank and hence are focus areas. ^ Corporate Loans include PTC, Equity investments & Security receipts amounting to Rs. 1,952 crore as on 31st March, 2025. 1. The figures above are net of Inter-Bank Participant Certificate (IBPC) transactions & includes credit substitutes 2. Lending to commercial banking businesses and MSMEs through working capital loans, business banking, commercial vehicle, trade advances, term loans, security receipts, loan converted to equity etc. have been combined with corporate banking as these are all pertaining to financing businesses. 3. Home Loans, vehicle finance, education loans, gold loans, credit cards, etc have been combined under Retail banking as this represents financing to individuals. Loan against property has been retained as part of retail banking as is the convention in the banking system reporting. 4. Consumer loans include Salaried Personal Loans, Small Business & Professional Loans and Consumer Durable Loans 5. Others include digital personal loans, digital consumer durables loans, retail portfolio buyout etc. Section 3: Diversified Loan Portfolio Gross Loans & Advances (In Rs. Crore) Mar-24 Dec-24 Mar-25 YoY (%) QoQ (%) Retail Finance 1,19,131 1,34,949 1,41,406 18.7% 4.8% - Home Loan 22,325 26,295 27,191 21.8% 3.4% - Loan Against Property 24,247 25,782 28,377 17.0% 10.1% - Vehicle Loans 20,827 25,209 26,303 26.3% 4.3% - Consumer Loans 26,499 29,345 29,674 12.0% 1.1% - Education Loans 2,160 2,994 3,129 44.9% 4.5% - Credit Card 5,546 6,918 7,517 35.5% 8.7% - Gold Loan* 1,029 1,896 2,183 112.1% 15.2% - Others 16,498 16,511 17,032 3.2% 3.2% Rural Finance* 23,882 25,234 24,757 3.7% -1.9% - Micro-Finance Loans 13,344 10,997 9,571 -28.3% -13.0% Business Finance (MSME & Corporate) 55,122 68,345 73,776 33.8% 7.9% - of which CV/CE Financing* 6,286 7,266 7,525 19.7% 3.6% - of which Business Banking* 7,405 9,049 9,757 31.8% 7.8% - of which Corporate Loans ^ 31,531 39,389 42,010 33.2% 6.7% Infrastructure 2,830 2,546 2,348 -17.1% -7.8% Total Gross Loans & Advances 2,00,965 2,31,074 2,41,926 20.4% 4.7%
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The Bank has grown Retail, Rural and MSME finance book strongly for 15 years across cycles while maintaining high asset quality 29 Section 3: Diversified Loan Portfolio 94 771 3,460 5,560 7,883 10,113 13,876 20,634 32,281 36,927 42,209 57,328 75,404 92,477 1,26,135 1,66,604 1,97,568 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 IDFC FIRST Bank Erstwhile IDFC Bank Erstwhile CFL 0.25% 0.06% Gross NPA Net NPA 0.08% 0.00% 0.53% 0.38% 0.99% 0.67% 2.02% 1.41% 2.14% 1.51% 1.91% 1.19% 1.66% 1.06% 1.46% 0.89% 2.18% 1.24% 1.77% 0.67% 4.01% 1.90% 2.63% 1.15% 1.65% 0.55% 1.38% 0.44% 1.70% 0.62% Gross NPA and Net NPA maintained at ~2% and <1% Ex MFI Mar-25 1.40% 0.56%
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The Bank has reduced its infrastructure financing portfolio from 19% in Mar-19 to below 1% of the total funded assets in Mar-25 30 21,459 14,315 10,808 6,891 4,664 2,830 2,348 19.4% 13.8% 9.2% 5.3% 2.9% 1.4% 0.97% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Infra Book (₹ crore) Infra % Section 3: Diversified Loan Portfolio
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41% 35% 27% 24% 20% 19% 20% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 As a key risk measure, the Bank has reduced concentration risk in Wholesale lending Also, the exposure to top 20 single borrowers reduced from 16% in Mar-19 to 4% in Mar-25 Further, the exposure to top 5 industries also reduced from 41% Mar-19 to 20% in Mar-25 which has further strengthened the balance sheet. 31 Section 3: Diversified Loan Portfolio 16% 13% 12% 9% 7% 6% 4% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25
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32 4. Robust Risk Management Framework 2. EMI / Cheque Bounce (early bucket) return Trend 3. Collection Efficiency Trend 4. SMA – 1+2 Trend 5. Product wise SMA -1+2 trend in Retail, Rural, MSME 11. Trend of Provision Coverage Ratio 9. Vintage Analysis 10. Industry Comparison 30+ Performance for key products 8. NPA Movement 1. Cash-flow based lending – fundamental basis of Bank’s lending 7. Asset Quality Summary Separating MFI asset quality and rest of Book
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Cash Flow Assessment (Bank statements, GST filings, Bureau Data etc.) Debit Instruction to Bank High Asset Quality The fundamental underwriting principle of the Bank explained • The Bank lends on the basis of cash flow assessment – A. Bank assesses the cash flow of the borrower through bank statement, GST, bureau EMI etc. B. Bank takes debit instruction mandate for EMI. • Combination of A+B put together practically works as an escrow. • This is a key reason for the bank portfolio continues to do well through the credit cycles. • Microfinance portfolio does not have debit instructions and the repayments are done through cash collections Section 4: Robust Risk Management Framework 1. Cash-flow based lending – fundamental basis of Bank’s lending 33
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10 Step Stringent Underwriting Process Note: The underwriting process mentioned above, changes depending on product to product. 34 Section 4: Robust Risk Management Framework 1. Cash-flow based lending – fundamental basis of Bank’s lending The Bank evaluates certain quick no-go criteria such as deduplication against existing records, bank validation and minimum credit parameter rules. Fraud Check Certain file screening techniques, banking transaction checks, industry fraud databases, fraud scorecards and real- time video-based checks are used to identify fraudulent applications Field Verification The Bank conducts field level verifications, including residence checks, office address checks, reference verification, lifestyle checks and business activity checks. Industry Check CRILC checks and checks by external entities are conducted to study financials, access to group companies whether legal cases have been filed against the company, disqualification of directors, etc. Ratio Analysis Detailed financial analysis is performed covering, Ratio analysis, debt to net-worth, turnover, working capital cycle, leverage, etc. Personal Discussion Cash Flow Analysis Title Deed Verification Credit Bureau Check Credit Scorecard Personal discussion includes establishment of business credentials, clarifications on financials, queries on banking habits and bureau report, & understanding the requirement & end use of funds. The bank statement of account is analyzed for business credits, transaction velocity, average balances at different periods of the month, EMI debits, account churning, interest servicing, etc. Evaluation of title deeds of the property and collateral, legality validity, enforceability etc., The application is then put through scorecards that includes criteria such as leverage, volatility of avg. balances, cheque bounces, profitability and liquidity ratios and study of working capital, etc. Checking the customer’s credit behavior history, no. of credit inquiries, age in bureau, limit utilization, recency of inquiries, level of unsecured debt, etc. No Go Criteria
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First EMI returns for insufficient funds has reduced by 35% which indicates quality of underwriting has improved over the years 35 7.1% 4.6% Dec-19 Mar-25 ▪ First EMI (FEMI) represents Cheque returns in the FIRST month after Booking. It is thus a direct indicator of the Quality of Booking. ▪ First EMI Bounce Rate for insufficient funds has improved from 4.7% as of Dec-24 by 10 bps sequentially to 4.6% as of Mar-25. ▪ First EMI Bounce Rate, including insufficient funds and technical bounce, has improved from 5.5% as of Dec-24 by 30 bps to 5.2% as of Mar-25. ▪ Percentage are on a 12-months trailing basis, as a sustainable performance indicator. (EMI returns pertain to Month 1 EMI presentation for Month 0 Booking); the above figures are for Urban Retail Portfolio 5.1% 5.1% 5.0% 4.9% 4.7% 4.6% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 First EMI Returns for insufficient funds 2. EMI / Cheque Bounce (early bucket) return Trend Section 4: Robust Risk Management Framework
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99.3% 99.4% 99.4% 99.4% 99.4% 99.5% 99.5% 99.6% 99.5% 99.5% 99.5% 99.5% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 The Bank collection efficiency stable at 99.5% (Excluding micro-finance) Collection Efficiency % = (Pos of EMI Collected for the Month)/(Pos of EMI Due for the month) % Collections % represented here do not include any arrear collections, or prepayment collections, and hence represents the true picture of collections efficiency. • Numbers pertain to collection efficiency in current bucket in Retail portfolio (excluding rural financing) which is the majority of the Book. • Except the microfinance portfolio, the collection efficiency is stable for the other rural products Note: The above figures are quarterly average of monthly collection efficiency. Stable 3. Collection Efficiency Trend Section 4: Robust Risk Management Framework 36
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SMA-1 & SMA-2 portfolio as % of Retail, Rural & MSME Loan Book (Excluding Microfinance business) is stable Stable SMA 1 = 31-60 dpd SMA 2 = 61-90 dpd >90 dpd Pre -NPA NPA SMA-1 & SMA-2 portfolio as % of Retail, Rural & MSME Loan Book, ex MFI (gross of IBPC) • SMA-1 & 2 for microfinance business increased from 4.56% in Dec-24 to 5.10% as on Mar-25 • SMA-1 & 2 for overall Retail, Rural & MSME portfolio (including microfinance business) increased from 1.03% in Dec-24 to 1.07% as on Mar-25 Above numbers are Gross of IBPC 4. SMA 1+2 Trend Section 4: Robust Risk Management Framework 0.87% 0.86% 0.76% 0.80% 0.78% 0.91% 0.85% 0.82% 0.87% Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 37
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Product wise SMA Analysis – All product stable except Microfinance 38 Product-wise SMA-1 & SMA-2 portfolio SMA excluding MFI business is at 0.87% as on March 31, 2025 5. Product wise SMA 1+2 Trend Section 4: Robust Risk Management Framework Above numbers are Gross of IBPC | Consumer loans include consumer durables, personal loans, digital loans and education loans 0.39% 1.05% 1.19% 1.18% 1.88% 1.71% 0.39% 0.95% 1.15% 0.98% 1.69% 2.54% 0.38% 0.95% 1.15% 0.99% 1.32% 4.56% 0.45% 0.94% 1.07% 1.07% 1.53% 5.10% Mortgages Vehicles MSME Consumer Loans Credit Cards Microfinance business Jun-24 Sep-24 Dec-24 Mar-25
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39 39 Retail, rural and MSME product segments continue to have low NPA ratios 6. Break-down of NPA Section 4: Robust Risk Management Framework • Bank’s GNPA was at 1.87% and NNPA at 0.53% • Provision coverage at bank level stood at 72.3% • Gross and Net NPA of Microfinance book stood at 7.71% and 1.86% respectively 11% 13% 12% 8% 3% 11% 14% 17% 1% % of Funded Assets 10% Retail, Rural & MSME - GNPA: 1.70% | NNPA: 0.62% 0.70% 1.15% 1.29% 1.53% 1.68% 1.77% 2.00% 3.67% 1.39% 24.76% 0.39% 0.47% 0.68% 0.41% 0.54% 0.87% 0.63% 0.90% 0.06% 0.00% Home Loan SME Finance Loan Against Property Digital, Gold Loan and Others Credit Card Vehicles Consumer Loans Rural Finance Corporate (Non-Infra.) Infrastructure Financing GNPA% NNPA% Not to Scale
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Asset Quality of the Bank excluding Microfinance business is stable 1.81% 1.63% Dec-24 Mar-25 Gross NPA % • Credit cost of the Bank ex MFI and excluding one legacy infrastructure toll road account was 1.76% for FY25 • For the quarter it has improved from 1.82% in Q3- FY25 to 1.73% in Q4-FY25 7. Asset Quality Summary – Ex-MFI and MFI Section 4: Robust Risk Management Framework 0.49% 0.47% Dec-24 Mar-25 Net NPA % 0.71% 0.72% Dec-24 Mar-25 SMA 1+2 (Bank Level) 0.82% 0.87% Dec-24 Mar-25 SMA 1+2 (Retail, Rural, MSME) 40
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SMA-0 of microfinance book has declined by 45% QoQ After increase in SMA-0 from Mar-24 to Dec-24, SMA-0 pool has declined by 45% QoQ, which indicates improving portfolio health of microfinance business 7. Asset Quality Summary – Ex-MFI and MFI Section 4: Robust Risk Management Framework 133 181 267 275 152 169 226 318 501 488 302 407 586 777 640 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 SMA-0 SMA-1&2 In Rs. Crore 41
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Slippages of portfolio excluding microfinance has reduced sequentially 8. NPA Movement Section 4: Robust Risk Management Framework Description (Rs. Crore) Q3 FY25 Q4 FY25 Opening NPAs 4,195 4,399 ADD: Gross additions (Fresh Slippages) 2,192 2,175 - Other than MFI 1,755 1,603 - MFI 437 572 LESS: Recoveries, Upgrades and others (651) (655) Net Addition 1,541 1,520 LESS: Write-offs (1,337) (1,486) Closing NPA 4,399 4,434 • Overall Slippage has reduced in Q4 FY25 by Rs. 17 crore as compared to Q3 FY25 • Excluding microfinance, the slippages of the portfolio has reduced by Rs. 152 crore 42
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Vintage Analysis – showing quality of portfolio improvement over the year (excluding microfinance business). 9. Vintage Analysis Section 4: Robust Risk Management Framework 0.00% 0.48% 1.01% 1.50% 1.94% 2.39% 2.83% 3.18% 3.42% 3.62% 3.87% 4.21% 4.31% 4.72% 4.60% 4.78% 4.67% 4.88% 0.00% 0.06% 0.16% 0.29% 0.57% 0.83% 1.07% 1.30% 1.49% 1.66% 1.80% 1.95% 2.07% 2.21% 2.32% 2.43% 2.52% 2.62% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 1 MOB 2 MOB 3 MOB 4 MOB 5 MOB 6 MOB 7 MOB 8 MOB 9 MOB 10 MOB 11 MOB 12 MOB 13 MOB 14 MOB 15 MOB 16 MOB 17 MOB 18 MOB • The Vintage analysis on this graph indicates the expected NPA over the next 3-5 years. The delinquency for the new bookings of Post-COVID for like-to-like vintage is lesser than that booking of Pre-COVID. The past Pre- Covid bookings (Graph A) led to NPA of around 2% and Net NPA of around 1 %. Under the new bookings (Graph B), the NPA is expected to remain range bound around 1.5% and 0.5% based on the above vintage analysis. Vintage Analysis compares the delinquency of a portfolio with another, exactly after the same number of Months on Books (MOB). As per this analysis, For the same vintage, for eg, say, 6 Months on Book, 30 DPD for Pre-COVID portfolio was 2.39%, 30 DPD for Post-COVID portfolio was 0.83% Reduction of delinquency in new portfolio by 65% on like-to-like vintage basis because of continuous improvement in underwriting Pre-Covid (FY19) Bookings credit performance (Graph A), 30 DPD Post-Covid (FY23, FY24 & FY25) Bookings Credit performance (Graph B), 30 DPD 43
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44 Coincidental (30+%) delinquency better than industry as per CIBIL records 10. Industry Comparison 30+ Performance for key products Section 4: Robust Risk Management Framework 1.90% 1.60% 1.50% 1.46% 1.43% 1.48% 5.40% 4.30% 4.70% 4.60% 4.40% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Loan Against Property IDFC FIRST Bank 30+% Industry 30+%* 1.10% 1.10% 1.20% 1.18% 1.18% 1.21% 3.60% 3.60% 3.80% 3.70% 3.50% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Car Loan IDFC FIRST Bank 30+% Industry 30+%* 0.74% 0.62% 0.60% 0.66% 0.70% 0.68% 4.00% 3.50% 3.50% 3.50% 3.40% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Home Loan IDFC FIRST Bank 30+% Industry 30+%* 2.20% 2.10% 2.46% 2.50% 2.58% 2.61% 5.10% 5.40% 5.40% 6.00% 5.50% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Two Wheeler Loan IDFC FIRST Bank 30+% Industry 30+% *Industry delinquency number is excluding ARC. Live portfolio is defined as 000-719 for HL and LAP products. 000-179 for all other products. Bank delinquency number is Excluding write off and Gross of IBPC, Nos arrived based on account wise DPD status.. *Source Transunion CIBIL Bureau. #IDFC FIRST Bank 30+ includes total outstanding for Non-NPAs & principal outstanding for NPAs. Industry Includes all banks and NBFCs
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45 Coincidental (30+%) delinquency better than industry as per CIBIL records 10. Industry Comparison 30+ Performance for key products Section 4: Robust Risk Management Framework *Industry delinquency number is excluding ARC. Live portfolio is defined as 000-719 for HL and LAP products. 000-179 for all other products. Bank delinquency number is Excluding write off and Gross of IBPC, Nos arrived based on account wise DPD status.. *Source Transunion CIBIL Bureau. #IDFC FIRST Bank 30+ includes total outstanding for Non-NPAs & principal outstanding for NPAs. Industry Includes all banks and NBFCs ^ Bank’s 30+% including interest receivables on NPA book is at 3.6% 2.20% 1.81% 1.98% 2.10% 1.99% 2.17% 6.20% 5.70% 6.40% 6.30% 6.10% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Business Loan IDFC FIRST Bank 30+% Industry 30+%* 2.25% 2.51% 3.02% 3.00% 2.79% 2.89% 3.20% 3.30% 3.20% 3.40% 3.40% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 PL (including Xsell) IDFC FIRST Bank 30+% Industry 30+%* 2.20% 2.30% 2.30% 2.43% 2.56% 2.86% 3.00% 3.20% 3.00% 2.80% 3.20% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Consumer Durable IDFC FIRST Bank 30+% Industry 30+%* 3.50% 3.30% 3.60% 3.44% 3.00% 2.96% 4.30% 4.30% 4.70% 4.70% 4.90% 4.09% 3.93% 4.33% 4.18% 3.69% 3.54% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Credit Card IDFC FIRST Bank 30+% Industry 30+%* 30+ % ^
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Provision Coverage Ratio increased to 72.3% for the Bank 46 56.2% 59.5% 66.4% 68.8% 72.3% Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Provision coverage improved by 347 bps from 68.8% in March 2024 to 72.3% in March 2025 Provision Coverage (Excluding technical write-offs) 11. Trend of Provision Coverage Ratio Section 4: Robust Risk Management Framework
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Section 5: Microfinance Business a. Purpose & Objective b. Trend of Disbursement & Outstanding Book c. Microfinance Trend in Collection Efficiency d. Insured by CGFMU Cover
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Micro-finance Loans – Meets Agri and PSL Requirements 48 • Small ticket size loans offered to only women borrowers primarily in rural areas for their livelihood generation • Usually, 10-20 members come together to form a group, who are provided collateral free loans with mutual guarantee among the members. • Most of the portfolio is eligible for PSL under multiple categories of Agri, Small and Marginal Farmers, Weaker Sections. • Loans are of ticket size of Rs. 30,000 to Rs. 1 lakh with tenure of 2-3 years. a. Purpose & Objective Section 5: Microfinance Business
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13,344 13,239 12,520 10,997 9,571 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Micro-finance Outstanding book (Rs Crore) The Bank’s Micro-Finance book has reduced to 4% of total funded assets as the conservative stance of Micro-Finance disbursals continues 49 2,820 2,883 2,079 953 759 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Disbursements (Rs crore) The tightening of the underwriting norms has resulted in slowing down disbursal. • Bank put restriction on new to bank customer in selected geographies and have been reducing geographic concentration • The Bank implemented micro-finance scorecards for ETB and NTB segments in Q2FY25 to identify riskier customers b. Trend of Microfinance Disbursement & Book 4.0%6.6% 6.3% 5.6% 4.8%Microfinance Book as a % of Funded Assets Section 5: Microfinance Business
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99.5% 99.4% 99.6% 99.8% 99.7% 99.7% 99.2% 99.4% 99.0% 98.6% 96.9% 96.8% 98.4% 99.2% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Jan-25 Feb-25 Mar-25 Collection Efficiency reduced in Q3-FY25, bounced back to 99.2% in March-25 • Collection Efficiency % = (Pos of EMI Collected for the Month)/(Pos of EMI Due for the month)% • Note: Collections does not include any arrear collections, or prepayment collections in these calculations, and hence represents the true picture of collections efficiency. c. MFI Trend in Collection Efficiency Note: The above figures are quarterly average of monthly collection efficiency. STABLE Impacted due to festive holidays in Oct-24 & Jan-25 Section 5: Microfinance Business Gradually improved (Average 98.1%) Current bucket collection efficiency excluding Karnataka was 99.4% in Mar-25. 50
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Micro-finance business: CGFMU cover increased gradually since January 2024 51 0% 4% 11% 19% 25% 32% 37% 42% 46% 50% 58% 66% Dec'23 Jan'24 Feb'24 Mar'24 Apr'24 May'24 Jun'24 Jul'24 Aug'24 Sep'24 Dec'24 Mar'25 d. Insured by CGFMU cover • The disbursals in micro-finance segment continued to reduce in Q4-FY25. • The incremental new disbursals from January 2024 have been covered under CGFMU. • The Bank has so far covered 66% of the micro-finance book under CGFMU as of 31st March 2025. Section 5: Microfinance Business
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Section 6: Digital Capabilities
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Bank successfully rolled out an advanced Mobile Banking App with top rating of 4.9 on Google Play and 4.8 on App Store 53 Section 6: Digital Capabilities The Forrester Digital Experience Review: Indian Mobile Banking Apps, Q4 2024 → Only Indian bank to feature in Global Top-5 Mobile Banking Apps 4 . 9 4 . 8 1 9 . 9 M + USERS ON APP 6 . 7 M + MONTHLY ACTIVE 1 . 3 M + MONTHLY TRANSACTING 1 . 4 M + REVIEWS CREATE FD in 2 CLICKS FIRSTMONEY PL – ETB/NTB ACE FUNDS/ IPO SMART STATEMENT REVAMPED CREDIT CARD DASHBOARD PAY ABROAD RECHARGE & BILL PAY AA x EQUITY INTEGRATION 1 CLICK SAVINGS ACCOUNT TRAVEL & SHOP 8
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Private Wealth Management: AUM growing at 27% YoY and crossed Rs. 42,000 crore Section 6: Digital Capabilities 2,637 6,475 15,672 22,072 33,656 42,665 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Private Wealth Book (Deposits & Investments - Rs. Crore)^ • The Bank is successfully creating a strong private wealth franchise. • Private Banking Book comprising of Investments AUM & Deposits grew by 27% on a YoY basis to Rs. 42,665 crore. Our Offerings: • PMS & Alternate Investment Funds • Bonds & Structured Products • Pre-listed and Pre-IPO Equity Funds • Estate & Trust Planning Services • Loan against Securities & IPO • Offshore & Immigration Linked Investments ^Includes Deposits of Private Banking customers and Demat. Demat is Rs. 3,478 crores as of March 2025. 54
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Over 17 million live FASTags 55 IDFC FIRST is the largest issuer among 38 Issuer banks in NETC with respect to FASTAG monthly activation numbers and value processed. Largest Issuer bank Largest Acquirer Bank with 530+ Toll plaza and parking merchants, with 31% market share. Largest Acquirer Bank Source: NPCI website Issuance Value Issuance value has reached Rs. 27,005 crore in FY25, with 37% market share. Section 6: Digital Capabilities 16.5M 17.8M Mar-24 Mar-25 Number of FASTags (Live) 26,504 29,511 FY24 FY25 Acquirer Thruput (In Crore) 22,261 27,005 FY24 FY25 Issuer Thruput (In Crore) 11%
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Credit Cards in force crosses 3.5 million mark 56 0.1 Mn+ 0.7 Mn+ 1.5 Mn+ 2.5 Mn+ 3.5 Mn+ Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Credit Cards in force 428 2,013 3,510 5,546 7,517 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Credit Card Book (Rs. Crore) During FY25, the Bank has launched Metal Variants Ashva & Mayura Section 6: Digital Capabilities 36% 37% 420 8,507 18,572 29,392 41,787 FY21 FY22 FY23 FY24 FY25 Credit Card Spends (Rs. Crore) 42%
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Strong growth in Business from recently launched Mobile App 57 Section 6: Digital Capabilities 474 618 Q4-FY24 Q4-FY25 Mutual Funds (Investments) (Rs. Crore) 197 254 Q4-FY24 Q4-FY25 Foreign Payments (Rs. Crore) 4,546 6,866 Q4-FY24 Q4-FY25 Payment through UPI (Rs. Crore) 6,672 12,402 Q4-FY24 Q4-FY25 Fixed Deposits (Rs. crore)
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3.98 Cr 4.05 Cr 4.11 Cr 4.16 Cr 4.20 Cr 4.23 Cr 4.25 Cr 4.30 Cr 4.34 Cr 4.34 Cr 4.36 Cr 4.36 Cr 4.40 Cr 10.36 L 9.11 L 9.39 L 8.69 L 9.21 L 8.81 L 8.38 L 7.95 L 7.19 L 7.70 L 7.72 L 6.84 L 7.36 L Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Cust # (in'CR) Calls # (in'L) Strong improvement in Customer Service due to Digital Capabilities • Digitisation initiatives are improving efficiency and customer experience in customer service, disbursement, processing, collection, liabilities, and all divisions. • For instance, in the last one year, the number of customers increased by 11% while the monthly customer calls at contact center reduced by 29%. These are not unique customers. This is number of relationships with the bank. For eg, if a customer has a credit card and a savings account, it is treated as 2. Excludes BNPL. Section 6: Digital Capabilities >90% calls answered in ~1 sec with 96% Service Level 58
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59 Section 7: Profitability & Capital
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Strong rise in Profitability, Core PPOP grew 17% YoY in FY25 ^ Excluding trading gains * Reported Numbers are as per the reported results of respective Financial Years Section 7: Profitability & Capital 60 In Rs. Crore unless specified otherwise 3,504 6,076 7,380 9,706 12,635 16,451 19,292 FY19* FY20 FY21 FY22 FY23 FY24 FY25 Net Interest Income 17% 838 1,550 1,622 2,691 4,142 5,795 6,676 FY19* FY20 FY21 FY22 FY23 FY24 FY25 Fee and Other Income 15% 749 1,764 1,909 2,753 4,607 6,030 7,069 FY19* FY20 FY21 FY22 FY23 FY24 FY25 Core Pre-provisioning Operating Profit ^ 17% 0.51% 1.12% 1.22% 1.56% 2.14% 2.25% 2.21% FY19* FY20 FY21 FY22 FY23 FY24 FY25 Core PPOP as a % of Average Total Assets ^
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Breakup of Fee & Other Income – FY25 • The Bank has launched and scaled up many fee-based products in the last 6 years. • Many of these products are in the early stage of their lifecycle and have the potential to grow significantly going forward. • 92% of the fee income & other income is from retail banking operations which is granular and sustainable. • Fee to Average total assets stood at 2.09% for FY25. 61 Section 7: Profitability & Capital General banking Fees & Others 22% Wealth Management Third Party Distribution 16%Trade & Client Fx 9% Credir Card & Toll 20% Loan Origination Fees 33%
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78% 73% 73% 73% ~65% FY22 FY23 FY24 FY25 FY27 P Targeting to bring down the Cost to Income Ratio over next 2 years Assets C:I ratio Trend: 60% 53% 53% 56% ~50% FY22 FY23 FY24 FY25 FY27 P 227% 182% 197% 171% ~140% FY22 FY23 FY24 FY25 FY27 P 240% 165% 116% 100% ~75% FY22 FY23 FY24 FY25 FY27 P Retail Liabilities C:I ratio Trend: Credit Cards C:I ratio Trend: Overall Bank C:I ratio Trend: (excl. trading gain) Section 7: Profitability & Capital Notes. 1. Assets include Retail, Rural, MSME, Business Banking and Wholesale Banking. Since, Business Banking Business (working capital financing to small businesses) is a lending business, numbers of this division have been grouped with Assets. The above numbers are based on internal transfer pricing and allocations. • These afore-mentioned businesses contributes towards majority of the Bank’s C:I • Economies of scale will lead to reduction in the cost to income ratio of Assets. • Bank intends to grow branches only about 10% annually against estimated deposit growth of ~25%. • Credit Cards C:I has come down from 240% to 100% in 4 years and expected to reduce further to ~75% with scale by FY27. • At an overall Bank level , the C:I planned to improve to ~65% by FY27 because of scale. Disclaimer: Kindly note that the aspirations mentioned above have been presented in good faith based on our internal estimates and current business environment. The Bank may or may not be able to achieve the same based on multiple factors such as interest rate movements, regulatory changes, macro-economic changes, geo- political factors, change in business model and any other factors unknown to us at this stage 62
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Composition of Operating Expenditure (FY25) • Volume linked expenses include collection cost, RCU cost, credit administration cost, DICGC premium, credit card reward cost, UPI & RTGS charges etc. • Channel Sourcing expenses included commissions & charges paid to the channels • The Bank has incurred set up costs during the last 6 years and plans to reap benefits of the same in the coming years. 29.4% 21.1% 17.7% 16.1% 12.2% Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 YoY Opex Growth (%) • Bank beginning to see benefits of operating leverage. In FY25, Total Business grew by 23% but the Opex increased by only 16.5%. • Customer Deposits grew by 25.2% and Loans and advances grew 20.4%. Employee Related Expenses 30% Infra Related Expenses 6%Channel Sourcing Expenses 20% Volume linked Expenses 22% Others 12% IT Expenses 10% Section 7: Profitability & Capital 63
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Bank has turned profitable on sustained basis based on strong Operating Profits 64 -1,944 -2,864 452 145 2,437 2,957 1,525 FY19* FY20 FY21 FY22 FY23 FY24 FY25 ^ Net Profit (Rs. Crore) *Reported Profit After tax for FY19 Section 7: Profitability & Capital ^ PAT is lower by ~Rs. 400 crore, on account of additional provisions in FY25 on a toll account and micro- finance book • The Asset Businesses (Retail, Rural, MSME & Wholesale Banking) have been contributing to the profitability of the Bank. • The overall profitability, however, is dragged by the losses made in the retail liabilities (branch banking) business and credit card business, which are yet to break-even due to their respective high cost to income ratio as they needed significant investments at their nascent stage for building capabilities and differentiation • FY25 is primarily impacted by microfinance business • For FY25, Return on Assets stood at 0.48% and Return on Equity stood at 4.27%
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Assets (Retail Loans & Wholesale Banking) : Profitability The reduction in FY25 is primarily due to significant reduction in microfinance portfolio and change in portfolio mix Rs. Crore Operating Profit as a % of Average Loan Book (Retail + Wholesale) Section 7: Profitability & Capital Based on internal transfer pricing of the Bank 2.3% 3.1% 3.8% 4.7% 4.8% 4.2% FY20 FY21 FY22 FY23 FY24 FY25 1,04,565 1,02,598 1,11,554 1,39,906 1,76,804 2,14,070 Avg. Loan Book -2% 9% 25% 26% 21% YoY Growth% 65
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Retail Liabilities Business : Moving towards break even with scale and productivity • Retail Liabilities generates necessary granular and sticky retail deposits through its branch network • The Bank has built this segment almost from scratch since merger in December 2018 and invested in building necessary branch infrastructure, people, digital platforms and other capabilities. • With increasing scale, the Pre-provisioning Operating losses as % of average retail deposits have improved from (4.2%) in FY20 to (1.2%) in FY25 Based on internal transfer pricing of the Bank; Average Retail Liabilities includes deposits raised through retail banking group -4.2% -3.0% -2.1% -1.8% -1.7% -1.2% FY20 FY21 FY22 FY23 FY24 FY25 23,225 55,992 69,620 91,615 1,37,269 1,89,426 Avg Retail Liabilities 141% 24% 32% 50% 38% YoY Growth % Operating Profit as % of Average Retail Liabilities Section 7: Profitability & Capital Rs. Crore 66
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Credit Cards Business: Operational Break-even achieved within 4 years • Credit Card business was launched during the end of FY21 and has grown significantly since then, issuing more than 3.5 million cards as of March 31, 2025. • Credit Card business needs significant investment in the initial phase in terms of people, product structuring and innovation, digital capabilities, monitoring and collection framework, promotions, tie-ups and distribution. • Asset quality of the credit card book continues to be stable with Gross NPA of 1.68% and Net NPA of 0.54% • Credit Card business has achieved operational break-even in just 4 years indicating a highly successful scale-up Based on internal transfer pricing of the Bank Operating Profit as % of Average Loan Book Section 7: Profitability & Capital Rs. Crore -27.5% -12.3% -3.8% 0.05% FY22 FY23 FY24 FY25 1,180 2,576 4,123 6,073 Avg. Loan Book 118% 60% 47% YoY Growth% 67
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Balance Sheet 68 In Rs. Crore Mar-24 Dec-24 Mar-25 Growth (%) (YoY) Shareholders' Funds 32,161 37,801 38,078 18.4% Deposits 2,00,576 2,36,878 2,52,065 25.7% - CASA Deposits 94,768 1,13,078 1,18,237 24.8% - Term Deposits 1,05,808 1,23,799 1,33,828 26.5% Borrowings 50,936 46,390 38,975 -23.5% Other liabilities and provisions 12,442 14,782 14,701 18.2% Total Liabilities 2,96,115 3,35,851 3,43,819 16.1% Cash and Balances with Banks and RBI 12,480 15,848 15,097 21.0% Net Retail and Wholesale Loans & Advances* 1,97,763 2,27,240 2,38,070 20.4% Investments 71,540 76,897 75,758 5.9% Fixed Assets 2,619 2,699 2,663 1.6% Other Assets 11,713 13,167 12,231 4.4% Total Assets 2,96,115 3,35,851 3,43,819 16.1% *includes credit investments (Non-Convertible Debentures, PTC, SRs and Loan Converted into Equity) Section 7: Profitability & Capital
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Annual Income Statement In Rs. Crore FY24 FY25 Growth (%) YoY Interest Income 30,323 36,501 20.4% Interest Expense 13,872 17,210 24.1% Net Interest Income 16,451 19,292 17.3% Fee & Other Income 5,795 6,676 15.2% Trading Gain 207 346 67.0% Operating Income 22,453 26,314 17.2% Operating Expense 16,216 18,899 16.5% Pre-Provisioning Operating Profit (PPOP) 6,237 7,415 18.9% Operating Profit (Ex. Trading gain) 6,030 7,069 17.2% Provisions 2,382 5,515 131.6% Profit Before Tax 3,855 1,900 -50.7% Tax 899 375 -58.2% Profit After Tax 2,957 1,525 -48.4% 69 Section 7: Profitability & Capital
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Quarterly Income Statement In Rs. Crore Q4 FY24 Q3 FY25 Q4 FY25 Growth (%) YoY Interest Income 8,219 9,343 9,413 14.5% Interest Expense 3,750 4,441 4,506 20.1% Net Interest Income 4,469 4,902 4,907 9.8% Fee & Other Income 1,610 1,757 1,702 5.7% Trading Gain 32 23 194 505.6% Operating Income 6,111 6,682 6,803 11.3% Operating Expense 4,447 4,923 4,991 12.2% Pre-Provisioning Operating Profit (PPOP) 1,664 1,759 1,812 8.9% Operating Profit (Ex. Trading gain) 1,632 1,736 1,618 -1.0% Provisions 722 1,338 1,450 100.8% Profit Before Tax 942 421 361 -61.6% Tax 217 82 57 -73.7% Profit After Tax 724 339 304 -58.0% 70 Section 7: Profitability & Capital
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Core Operating profit excluding MFI business increased by 30.6% YoY in FY25 Section 7: Profitability & Capital Bank Level Profitability (Excluding – Microfinance Business) - Rs. Crore Q4 FY24 Q4 FY25 Growth YoY FY24 FY25 Growth YoY Net Interest Income 3,879 4,539 17.0% 14,175 17,370 22.5% Fee & Other Income (excluding trading gain) 1,575 1,672 6.2% 5,627 6,494 15.4% Core Operating Income 5,454 6,211 13.9% 19,802 23,864 20.5% Operating Expenses 4,256 4,774 12.2% 15,324 18,018 17.6% Core Pre-Provisioning Operating Profit (PPOP) 1,198 1,437 19.9% 4,477 5,846 30.6% Based on internal reporting 71
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In Rs. Crore Mar-24 Dec-24 Mar-25 Common Equity^ 30,940 36,308 36,428 Tier 2 Capital Funds 6,366 6,456 6,381 Total Capital Funds 37,307 42,764 42,808 Total Risk Weighted Assets 2,31,577 2,65,452 2,76,473 CET-1 Ratio (%) 13.36% 13.68% 13.17% Total CRAR (%) 16.11% 16.11% 15.48% Capital Adequacy Ratio 72 Section 7: Profitability & Capital • The board has approved the fresh equity capital raise of ~ Rs. 7,500 crore through issuance of Compulsorily Convertible Preference Shares (CCPS) to Currant Sea Investments B.V., an affiliate company of Warburg Pincus LLC and Platinum Invictus B 2025 RSC Limited, a wholly owned subsidiary of private equity division of Abu Dhabi Investment Authority (ADIA) subject to shareholders’ and regulatory approvals. These are Compulsorily Convertible into Equity Shares. • Above table is based on proposed dividend of Rs. 0.25 per share which is subject to shareholders’ approval • Post conversion into equity and proposed dividend, the CRAR would be 18.20% and Tier-I will be 15.89%, if calculated on March 31, 2025 numbers
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Shareholding Pattern Scrip Name: IDFC FIRST Bank (BSE: 539437, NSE:IDFCFIRSTB) Total No. of shares 732.20 Cr Book Value per Share (Mar 31, 2025) Rs. 52.00 Basic EPS (FY25) Rs. 2.08 Shareholding (March,31 2025) Section 7: Profitability & Capital FDI/FPI/FC (25.68%) MF/Insurance/Bank/FI /AIF (19.30%) Public (43.32%) President of India (9.10%) Other Body Corporate (2.49%) Trusts and Clearing Members (0.05%) Others (0.06%) 73
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38.43 37.98 31.90 31.37 33.78 38.86 45.49 52.00 Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 BVPS has grew from Rs. 31.4 to Rs. 52.0 since March 2021 74 Book Value Per Share (BVPS) reduced during the first few years after merger due to credit losses arising from legacy corporate and infrastructure loans During the last 16 quarters, the BVPS increased by 66% with the increasing profitability from the core business model Section 7: Profitability & Capital In Rs. Post-conversion into equity, BVPS would be Rs. 53.17
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Section 8: Credit Rating
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Bank’s Long Term Credit Rating Section 8: Credit Rating 76 CRISIL AA+ (stable) ICRA AA+ (stable) India Ratings AA+ (stable) Rating Agency Long Term Credit Rating CARE Ratings AA+ (stable) o AAA rating by CRISIL for its Fixed Deposit Program o Bank’s has Long Term Credit rating AA+ (Stable) from all major rating agencies CRISIL AAA Fixed Deposit
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Section 9: Board of Directors
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Board of Directors: MD & CEO Profile Section 9: Board of Directors 78 Vaidyanathan aspires to create “a world-class Indian Bank, guided by ethics, powered by technology, and to be a force social good”. He became the Managing Director and CEO of IDFC FIRST Bank in December 2018 following the merger of Capital First and IDFC Bank. Previously, he worked with Citibank (1990-2000) and ICICI Bank (2000-2010), where he built a large retail banking division, expanding branches to 1,411, growing CASA and retail deposits to ₹ 1 trillion, and growing retail lending, including mortgages, auto loans, MSME and Rural banking to ₹1.35 trillion ($15.7bn). He was appointed to the Board of Directors of ICICI Bank in 2006 at age 38. He later served as MD and CEO of ICICI Prudential Life. Chasing an entrepreneurial opportunity, he left ICICI in 2010 to acquire a stake in a small real-estate financing NBFC with a market cap of ₹780 crore ($140m), with an idea to convert it to a commercial Bank. He pledged his stock and home to raise funds, renamed the NBFC as Capital First, and transformed it by exiting real-estate financing and focusing on retail & MSME lending using tech-driven algorithms. He demonstrated the Proof-of-Concept to PE firms, raised ₹810 crore ($94m) in equity by 2012, recapitalized the company, and became Chairman and CEO." Capital First grew its retail loan book from ₹94 crore ($11m) in 2010 to ₹29,600 crore ($3.4b) by 2018, serving 7 million customers with high asset quality. The company turned around from losses of ₹30 crore ($3m) to profits of ₹358 crore ($42m) during this period. Its share price increased from ₹122 in 2010 to ₹845 in 2018, with market cap rising tenfold to ₹8,200 crore ($953m). In 2017, Vaidyanathan sold 1.5% of his personal stake in Capital First to repay a loan used to acquire his ownership. To secure a commercial banking license for Capital First, he merged it with IDFC Bank in 2018 and became the MD and CEO of the renamed IDFC FIRST Bank. Post-merger, the loan book expanded to ₹ 2,41,926 crore ($28.5b) with significant growth in retail, rural, and MSME finance. Customer deposits increased from ₹38,455 crore ($4.5b) to ₹2,42,543 crore ($28.5b) between 2018 and 2025, while the CASA ratio rose from 8.7% to 46.9%, and NIM at 6.1%. The bank turned profitable with a FY25 PAT of ₹1,525 crore ($179m). He has been recognized by numerous awards including “Banker of the Year 2023” by leading Indian publication Financial Express, Ernst and Young "Entrepreneur of the Year" 2022 for Financial Services, "Entrepreneur of the Year" 2020 by CNBC Awaaz, "Most Inspirational Leveraged Management Buyout, India 2018" by CFI Awards, London, "Most Innovative Company of the Year" 2017 by CNBC Asia, "Entrepreneur of the Year 2016 and 2017" from Asia Pacific Entrepreneurship Award, "Most Promising Business Leaders of Asia" by Economic Times in 2016, Business Today - India's Most Valuable Companies 2016 & 2015, Economic Times 500 India's Future Ready Companies 2016, Fortune India's Next 500 Companies 2016.
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Board of Directors Section 9: Board of Directors MR. SANJEEB CHAUDHURI Chairman & Independent Director • Advisor to global organizations across Europe, the US and Asia. • Worked as Regional Business Head for India and South Asia for Retail, Commercial and Private Banking and Global Head of Brand and Chief Marketing Officer at Standard Chartered Bank. • Ex-CEO for Retail and Commercial Banking for Citigroup, Europe, Middle East and Africa. MR. AASHISH KAMAT Independent Director • Has over 32 years of experience in corporate world, with 24 years being in banking & financial services. • Was Country Head for UBS India, 2012-2018 • Previously, he was the Regional COO/CFO for Asia Pacific at JP Morgan in Hong Kong • Worked with Bank of America as the Global CFO for IB, Consumer and Mortgage Products • Experience business & human resources professional with over four decades of experience in senior leadership roles in business and HR, both in India and overseas. • Worked with large multinational corporations, in diverse sectors like Banking, IT, Financial services, Manufacturing etc. • actively involved in coaching and mentoring senior leaders MS. MATANGI GOWRISHANKAR Independent Director • 35 years of experience in domains such as banking, manufacturing and technology. • MD of Commonwealth Bank of Australia (India) from 2019 to 2024. • Held various global positions for the ANZ Banking Services group. • active leader in representing industry forums like CII, NASSCOM, BCIC, Anita Borg Institute and India Inclusion Forum in India MRS. PANKAJAM SRIDEVI Independent Director • Has been in the leadership position since merger with Capital First in December 2018 • Has over 25 years of work experience across Capital First, Standard Chartered Bank, Religare Mcquarie and Dell. • helped to set up retail business in Capital First since inception. • Expertise in Business Development, Technology, Risk Analytics, Debt Management, Project Management, Customer Service, Marketing MR. PRADEEP NATARAJAN Executive Director • Worked as Executive Director in RBI • Worked in RBI for more than 30 years • His key areas of operations included Payment and Settlement Systems, External Investments, managing foreign exchange reserve etc. • He had a key role in the establishment of NPCI, IFTAS, etc. MR. UDAY BHANSALI Independent Director • Was President - Financial Advisory for Deloitte Touche Tohmatsu India LLP and a member of other entities in Deloitte from 2015 to 2024. • Was Executive Director in Kotak Mahindra Capital Company • Executive VP in General Electric Company. • Over 20 years of experience in Arthur Andersen & Co (now Accenture Plc) at multiple positions. MR. PRAVIR VOHRA Independent Director • Was President and Group CTO at ICICI Bank from 2005 to 2012. • In ICICI Bank, he headed a number of functions including the Retail Technology Group & Technology Management Group • 23 years of working experience with SBI in business as well as technology. • Ex-VP (Corporate Service Group) at Times Bank MR. SUDHIR KAPADIA Independent Director • Has over three decades of vast experience in advising Indian and Global Multi-National Companies on their tax strategies and efficiencies • Was the Tax & Regulatory services Leader and a Board member at EY, India and KPMG, India • former President and a permanent invitee of the Board of Bombay Chamber of Commerce and Industry, is a member of the CII National Committee on MNCsMR. S GANESH KUMAR Independent Director 79
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Section 10: Progress on ESG
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81 Section 10: Progress on ESG • ESG adopted into a Board Committee • ESG Management and Steering Committees set up • ESG formed as a business unit • Improved S&P ESG Score (DJSI) (from 19 to 44) • Official participant of the United Nations Global Compact (UNGC) • Official supporter of the Task Force on Climate-related Financial Disclosures (TCFD) FY 23 • First Integrated Report published, aligned to IR framework, GRI & SASB • First BRSR published, aligned to SEBI • Formal ESG targets announced • Commenced and completed baselining of financed emissions • Customer awareness campaigns towards energy efficiency • Identified glide path for Net Zero • Board-approved GHG Emissions Management Policy FY 24 • Obtained BRSR Core reasonable assurance, aligned to SEBI • Became constituent of FTSE4Good Emerging Index • Became among the first banks in India to become a PCAF signatory • Obtained external assurance on sustainable finance categories • Pan-India engagement with employees on ESG initiatives • Launched Green Fixed Deposits and Solar Finance FY 25 Our ESG journey
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82 Section 10: Progress on ESG In top positions across major ESG ratings 57 out of 100 (2024) 48 out of 100 (2023) 68 out of 100 (2024) 67 out of 100 (2023) 12 out of 16 (2024) 7 out of 16 (2023) 20.1* out of 100 (2024) 26.6* out of 100 (2023) *Lower is better C* on a scale of A to F (2024) *First year of participation A* on a scale of AAA to CCC (2024) *Retained from 2023 Emerging Index Inclusion* *2023 onwards
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83 Section 10: Progress on ESG Environment Social Governance Sustainable Finance ▪ 2.38 lakh+ EV two wheelers financed (live portfolio) ▪ 3.75 lakh+ WASH loans disbursed (live portfolio) ▪ 47% of our advances are towards environmental and socially responsible categories* ▪ Launched Green Deposits and Solar Finance ▪ 06 offices and 02 branches (~31% carpet area) green certified by IGBC or LEED ▪ 02 offices fully powered by green energy ▪ 04 offices having EV charging stations ▪ 08 offices having Sewage Treatment Plants (STPs) ▪ 23,848 hours volunteered by employees in FY 25 ▪ 1.39 lakh+ people impacted through CSR in FY 25 ▪ 25 lakh+ employee learning hours in FY 25 ▪ 6,650+ employees in FY 25 (cumulative) participated in various ESG initiatives ▪ Board and Management Committees on ESG ▪ 80% independent directors on Board ▪ 02 women directors on Board ▪ ISO 27001 Certified Information Security Management Key ESG highlights *Link to cat.
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Recognitions for ESG Efforts 84 Section 10: Progress on ESG Outstanding Private Bank in Green Finance (Jan 2025) AFAI Product Innovation Award (WASH) - Silver (Oct 2024) Times Now Climate Awards Financial Inclusion Initiative of the Year – India (Jun 2024) ABF Retail Banking Awards Most ESG Responsible Banking Service – India (Dec 2023) The European Golden Peacock Award in ESG - National (Sep 2023) Institute of Directors India Outstanding Commitment - ESG Performance India (Sep 2023) Capital Finance International ESG Rising Star & Sustainability Impact Award (May 2023) UBS Forums Best Bank Leading the Way in ESG (Apr 2023) Transformance Forums Best Sustainable Bank Strategy (Oct 2022) Navabharat BFSI Award Social Impact Bank of the Year (Sep 2022) The European
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Section 11: Awards and Recognition
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Awards and Recognition World's Best Banks 2025 - Forbes & Statista India's Leading Private Bank (Mid) 2025 - Dun & Bradstreet Best Private Sector Bank Award 2025- M1 TReDS Exchange Best MSME Friendly Bank (Private Sector) 2024 – CIMSME Best Mid-Sized Bank Award 2024- Mint Best Innovation in Retail Banking India 2024 - International Banker Best Mobile Banking App 2024 - CFI FE Best Banks Award for Best Savings Product 2024 – Financial Express FE Best Banks Award for Banker Of The Year - 2024 - Financial Express Best Corporate Governance 2023 - World Finance India's Leading Private Bank (Mid) – Dun & Bradstreet (BFSI & FinTech 2024) Innovation In Banking - Aegis Graham Bell (14th edition – 2024) Best Digital Bank 2023 - Financial Express India's Best Banks Awards 2023 Excellence in BFSI 2023 - National Awards for Excellence Dream company to work for HR 2023 - National Awards for Excellence Most Innovative Digital Transformation Bank 2022 - The European Most Promising Brand Awards 2022 - ET BFSI Best Innovative Payment Solution - Phi Commerce Best Consumer Digital Bank in India – 2021 - Global Finance Magazine Best BFSI Brands in Private Bank Category - ET BFSI Most Trusted Brands of India 2021 - CNBC TV18 Most Harmonious Merger Award - The European Most Trusted Companies Awards 2021 - IBC ET Most Inspiring CEO Award - by Economic Times Section 11: Awards & Recognitions 86
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IDFC FIRST Bank has established its strong presence improving its TOMA score 2 4 13 25 28 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Top Of Mind Awareness (TOMA) ^ ^ Source: Kantar syndicated brand track study • Over the years, the Bank has launched many campaigns and improved its brand recognition • TOMA score represents the brand recall from the customers’ perspective and it has improved from 2 in March-2021 to 28 as of March-2025. • The Bank aspires to improve the TOMA score further going forward Section 11: Awards & Recognitions 87
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IDFC FIRST Bank We are building a world class bank with: - Highest levels of corporate governance - Stable balance sheet growth of ~20%, - Robust asset quality of GNPA less than 2% and net NPA of < 1% - High teens ROE - Contemporary technology and - High levels of Customer Centricity. 88
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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 part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer or recommendation to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contractor commitment therefore. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. There is no obligation to update, modify or amend this communication or to otherwise notify the recipient if information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. Certain statements contained in this presentation that are not statements of historical fact constitute “forward-looking statements.” You can generally identify forward-looking statements by terminology such as “aim”, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “objective”, “goal”, “plan”, “potential”, “proforma”, “project”, “pursue”, “shall”, “should”, “will”, “would”, or other words or phrases of similar import. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or other projections. Important factors that could cause actual results, performance or achievements to differ materially include, among others: (a) material changes in the regulations governing our businesses; (b) the Company's inability to comply with the capital adequacy norms prescribed by the RBI; (c) decrease in the value of the Company's collateral or delays in enforcing the Company's collateral upon default by borrowers on their obligations to the Company; (d) the Company's inability to control the level of NPAs in the Company's portfolio effectively; (e) certain failures, including internal or external fraud, operational errors, systems malfunctions, or cyber security incidents; (f) volatility in interest rates and other market conditions; and(g) any adverse changes to the Indian economy. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. The Company may alter, modify, regroup figures wherever necessary or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. Disclaimer 89
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Thank You
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Annexure 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. 91
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Successful Trajectory of Growth and Profits at Capital First Financial Performance: The Asset Under Management has consistently grown at 5-Year CAGR of 29% 92 935 2,751 6,186 7,510 9,679 11,975 16,041 19,824 26,997 32,623 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Sep-18 Wholesale AUM Retail AUM
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-28.8 -32.1 -15.7 -46.2 3.8 35.1 53.2 114.3 166.2 238.9 327.4 206.1* FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 H1-FY19 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 lending were prepared. Once the company got scale, Capital First posted a CAGR growth in profits of 56% for last 5 years. Profit After Tax (Normalized) – Rs. crore * For Half Year H1-FY19▪ New Leadership takes over in 2010. ▪ New Retail Product Lines launched. ▪ Retail Team, Systems, Processes designed. ▪ Closed down subsidiaries, prepared company for PE equity backing ▪ Platform set for Business growth and Profitability. ▪ Company turned profitable in FY12 and since then consistently increased profit for the next 6 years with a CAGR of 45% Successful Trajectory of Growth and Profits at Capital First Financial Performance: Yearly Trend of Profit After Tax 93
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128% 115% 72% 74% 78% 80% 71% 59% 51% 51% 53% 48% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 H1-FY19 Cost to Income ratio (%) ~ 70 – 80% < 50% The Cost to Income ratio, which was high at ~130% in the early stages of the company, reduced to <50% once the business model stabilized over the years. 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 profitability. 94
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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 growth and profitability. 2.28% 2.96% 4.15% 11.09% 7.02% 8.89% 9.58% 10.29% 8.32% 10.08% 10.68% 11.20% 11.39% 12.87% 12.10% 12.49% 11.46% 13.06% 14.08% 14.82% 14.47% 14.46% Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19* Q2 FY19* All figures are annualised 4.93% 8.33% 10.14% 11.93% 13.31% FY15 FY16 FY17 FY18 14.51% H1-FY18 FY14 *Highlighted figures are based on Indian AS in comparison to quarterly figures for earlier periods based on Indian GAAP. Raised equity in Q4-FY14 at Rs. 152 per share Raised equity in Q4-FY15 at Rs. 390 per share Raised equity in Q3-FY17 at Rs. 712 per share 95
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1,174 902 782* 1,152 1,478 3,634 3,937 7,628 8,282# 6,096 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 31-Mar-16 31-Mar-17 12-Jan-18 31-Mar-18 Market Capitalization (Rs. crore) * Market Cap as on 31-March-2012, the year of Management Buyout # Market Cap on the day before the announcement of merger with IDFC Bank (Jan 13, 2018). During this phase, the Company - • built the Retail Platform, technologies for chosen segments, • divested / closed down non-core businesses like broking, property services, Forex services etc, • Merged NBFC subsidiary with the parent • brought down high NPA levels (GNPA 5.28% and NNPA 3.78%) 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 profitability. 96
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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 profitability. Stock Price increased 7x from Rs. 120.55 to Rs. 845.60 in 6 years 120.55 162.20 178.90 399.40 431.55 782.50 845.60 3/31/2012 3/31/2013 3/31/2014 3/31/2015 3/31/2016 3/31/2017 1/15/2018 97
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Investor Presentation – Q4 FY25
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IDFC FIRST Bank 1
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Key Highlights of FY25 • Strong growth of 25.2% YoY in Customer Deposits to reach US$ 28,534 Mn. • 26.4% YoY growth in Retail Deposits to reach US$ 22,502 Mn. • Strong growth of 24.8% YoY in CASA deposits Deposits • Total Loan Book grew 20.4% YoY to US$ 28,462 Mn. • Retail, Rural and MSME Loan Book grew 18.6% YoY to reach US$ 23,243 Mn. • Bank continues to de-grow its Microfinance portfolio, which as % of overall loan book reduced from 6.6% in March-2024 to 4.0% in Mar-2025 • Loan growth driven by steady growth in Mortgage Loans, Vehicle Loans, Gold Loans, MSME Loans and Corporate loans Loans & Advances • Overall, excluding MFI business, the rest of the loan book of the Bank, including corporate, retail, MSME and rural are stable • GNPA and NNPA of the Bank stood at 1.87% and 0.53% in Mar-25 as compared to 1.94% and 0.52% in Dec-24 • Excluding Microfinance Book, GNPA and NNPA stood at 1.63% and 0.47% in Mar-25 as compared to 1.81% and 0.49% in Dec-24 • Gross and Net NPA of Retail, Rural and MSME Book (ex. microfinance) improved QOQ from 1.46% and 0.56% to 1.40% and 0.56%, respectively • The gross slippage improved from US$ 258 Mn. in Q3 FY25 to US$ 256 Mn. in Q4 FY25 • The gross slippages for microfinance business increased from US$ 51 Mn. in Q3-FY25 to US$ 67 Mn. in Q4-FY25; slippages excluding micro- finance business was lower by ~ US$ 18 Mn. on a QoQ basis • Provision Coverage ratio was healthy at 72.3% as of March 31, 2025 • All the key product segments including mortgages, vehicle loans, personal loans, credit cards have stable SMA 1+2 portfolio Asset Quality 2For the purpose of this presentation, US$1 = Rs.85 is considered.
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Key Highlights of FY25 • Net Interest Income (NII) grew 17.3% YOY from US$ 1,935 Mn. in FY24 to US$ 2,270 Mn. in FY25 • Net Interest Margin (NIM) of the Bank was at 5.95% for Q4 FY25 as compared to 6.04% in Q3 FY24. NIM declined largely due to decline in the micro-finance business • Fee and Other Income grew by 15.2% from US$ 682 Mn. in FY24 to US$ 785 Mn. in FY25 • Core Operating income grew 16.7% from US$ 2,617 Mn. in FY24 to US$ 3,055 Mn. in FY25 • Operating Expense grew by 16.5% from US$ 1,908 Mn. in FY24 to US$ 2,223 Mn. in FY25 • Core Operating Profit grew by 17.2% from US$ 709 Mn. in FY24 to US$ 832 Mn. for FY25 • Core Operating Profit, excluding Microfinancebusiness grew 31% YOY for FY 25 • Net Profit de-grew by 48.4% from US$ 348 Mn. in FY24 to US$ 179 Mn. in FY25, largely impacted by microfinance business Profitability • The Capital adequacy ratio (post dividend) was strong at 15.48% with CET-I ratio of 13.17% • The board has approved the fresh equity capital raise of ~ US$ 882 Mn. through issuance of Compulsorily Convertible Preference Shares (CCPS) to Currant Sea Investments B.V., an affiliate company of Warburg Pincus LLC and Platinum Invictus B 2025 RSC Limited, a wholly owned subsidiary of private equity division of Abu Dhabi Investment Authority (ADIA) ; Post conversion into equity, the CRAR and TIER-I would be 18.2% and 15.9% if calculated on March 31, 2025 numbers • The Board approved a dividend of Rs. 0.25 per share, subject to shareholders’ approval. Capital • Provisions for FY25 stood at US$ 649 Mn. (2.46% of loan book) primarily driven because of the higher provisioning in the microfinance book • Excluding microfinance and one legacy infrastructure toll account, the credit cost for FY25 was at 1.76%, for Q4-FY25 it has improved to 1.73% from 1.82% in Q3-FY25 • The Bank continues to carry contingency provision buffers of US$ 37 Mn. on a prudent basis Provisions • The Bank has Long Term Credit Rating of AA+ (Stable) from the CARE & CRISIL ratings • Fixed Deposit Program has highest rating of “AAA” by CRISIL Ratings Rating 3
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T ABLE OF CONTENTS Awards & Recognition 10 Digital Capabilities 5 Building a Universal Bank 1 Deposits and Borrowings 2 Profitability & Capital 6 Credit Rating 7 Board of Directors 8 4 Robust Risk Framework Diversified Loan Portfolio 3 Progress on ESG 9 Microfinance Business 11 5 13 25 32 47 52 59 75 77 80 85
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• 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, an infrastructure Financing Domestic Financial Institution. The loan assets and borrowings of IDFC limited were transferred to IDFC Bank at inception of IDFC Bank in 2015. • Erstwhile Capital First was a successful consumer and MSME financing entity since 2012 with strong track record of growth, profits and asset quality. • On merger, the Bank was renamed IDFC FIRST Bank. IDFC FIRST Bank was created by merger of IDFC Bank and Capital First in December 2018 5 Section 1: Building a Universal Bank
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IDFC FIRST Bank was created by merger of IDFC Bank and Capital First in December 2018 6 BALANCE SHEETPROFITABILITY Erst. CAPITAL FIRST (30-Sep-2018) Erst. IDFC Bank (30-Sep-2018) IDFC FIRST Bank, (on merger) (31-Dec-2018) IDFC FIRST Bank (now) (31-Mar-2025) Parameters NIM % Core PPOP to Average Asset Cost to Income Branches 8.2% 5.0% 47.5% 0 1.6% 0.10% 92.4% 203 3.1% 0.78% 82.2% 206 6.1% ^ 2.21% 71.8% 1,002 Profitability numbers for Sep-18 are for H1 FY19, Dec-18 are of Q3 FY19; Mar-25 are of FY25.; ^NIM is Gross of IBPC & Sell-down *AUM of Capital First as on 30 September 2018 stood at US$ 3,838 Mn. Funded book was US$ 3,176 Mn. As an NBFC Capital First did not have any deposits. Change Since Merger Loan Book 3,170* 8,863 12,313 28,462 2.3X Customer Deposit 0 4,279 4,524 28,534 6.3X Retail Deposit 0 1,060 1,224 22,502 18.4X CASA Deposit 0 736 620 13,910 22.4X 300 bps 143 bps -1,036 bps 4.9X Section 1: Building a Universal Bank CASA Ratio 0 13.0% 8.7% 46.9% 5.4X Net Worth 344 1,738 2,162 4,480 2.1X In US$ Mn.
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Section 1: Building a Universal Bank 02. Defined the Vision of the Bank 01. Concluded Smooth Integration of IDFC Bank and Capital First 03. Instilled Customer First Philosophy in the Bank 04. Built a strong Leadership Team 05. Created Robust Risk Management framework 06. Built Culture of Governance and independence of Control Functions 09. Launched New Products & Services and scaled them up 07. Built as Universal Bank with complete products and services 08. Built a Strong Brand Image 10. Implemented Contemporary Technology, Digital innovation & analytics 11. Upgraded Long Term Credit Rating by top credit rating agencies 12. Strengthened ESG practices, improved ESG rating We are happy to share that IDFC FIRST Bank has made significant progress on all counts during the last 6 years including Deposits, Loan, Capital, Assets and Leadership Team Building. Some of the key building blocks are summarized below - Post merger, the Bank undertook key initiatives to address the challenges and create necessary building blocks for future growth over the last 6 years.. 7
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Bank has launched and scaled up many new products FY18 FY19 Consumer Durable Home Loan Loan Against Property Used Car Loan Personal Loan Two-Wheeler Corporate Banking Business Banking Micro Finance Transaction Banking Fixed DepositLiability Products Loan Products Agri / Farmer Loans Current Accounts Variants Tractor Loans Education Loan Gold Loan Forex Solution Digital Loans Wealth Management Cash Management Service Fast Tag Prime Home Loans New Car Loan Credit Card FY20 FY21 FY22 FY23 & FY24 Some of the Key New Products Launched Post-Merger Fee-based Products From FY19 onwards, the Bank launched a number of products in the areas of loans, deposits, fee-based products and payment solutions to become a full service Universal Bank with diversified streams of income. • Most of businesses are in early stage of their lifecycle. The Bank has made investments in people, technology, marketing, distribution etc. in the initial phase. • In the longer run, these will provide stable profit streams as they scale up. • The Bank also scaled up all the existing products including the ones added after the after merger Section 1: Building a Universal Bank Savings Account Current Account CV Loans 8
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Retail Lending SME Lending Deposits & Accounts NRI Banking Wealth Management & Distribution Trade Finance Solutions Transaction Banking & CMS Treasury & Forex Solutions Fastag Supply Chain Financing Credit Cards • U N I V E R S A L • B A N K Corporate Lending FASTag Tag Issuer, Toll Acquirer solution, 3-in- 1 solution including Toll, Parking & Fuel Treasury & Forex Solutions Correspondent banking, FX Solutions, Cross-border SWIFT, Government Bonds & Strips, Liberalized Remittance Scheme, External Commercial Borrowing, Treasury solutionsincl. forwards,options, swaps etc. Trade Finance Letter of Credit & discounting, Bank Guarantee, Buyer’s Credit / SBLC, Packing Credit in Foreign Currency & INR, Remittances (inward & outward), Preshipment & post shipment finance Transaction Banking & CMS NEFT/RTGS/IMPS Payments, Transfers (ACH, Direct debit), UPI & QR, Cheques, Demand drafts, Cash Delivery, Payroll Processing, BBPS Payments, Cash/ cheque collection, Cash Deposit machine CASA and Fixed Deposits Current Accounts, Savings Accounts, Fixed Deposits, Nostro/ Vostro Accounts, Overdrafts, Corporate Salary Accounts, Accounts for ONDC, Escrow Accounts, NRI Banking NRE Accounts, NRO Accounts, Seafarer Accounts, FCNR Deposits, NRE / NRO Deposits Credit Cards Wealth Credit Card, Private Credit Card, Millenia Credit Card, WoW Credit Card against Deposits, Corporate Card, Vistara Travel card, HP Fuel Card Wealth Management & Distribution Wealth Management, Distribution of Life Insurance, General Insurance, Credit Shield, Health Insurance, Mutual Funds, AIFs SME Lending Solutions Loan Against Property, Business Banking, Working Capital Loans, Commercial Vehicle Loans, Micro Enterprise Loans, Trade Advance, Startup Banking Supply Chain Financing Dealer finance, Vendor finance, TREDS, Factoring, Invoice discounting The Bank now has built a full Suite of Universal Banking Products.. Corporate Lending Working Capital demand Loans, Cash Credit, Term Loans, Corporate Bonds / NCDs, Foreign Currency Loans Retail Lending Solutions Home Loans, vehicle Loans, Consumer Loans, Education Loans, Personal Loans, Used Car Loans, Gold Loans, Rural Finance, Tractor Finance 9 Section 1: Building a Universal Bank
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Bank has built a strong franchise of 36 M customers Section 1: Building a Universal Bank - 3.5M Mar-19 Mar-25 Credit Cards in Force 3,641 98,310 Mar-19 Mar-25 NRI Customers 5,500 2,30,000 Mar-19 Mar-25 Wealth Management Customers 9.3Mn 35.5Mn Mar-19 Mar-25 Total Unique Customers 1. Credit Cards business commenced in 2021 10
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Expanding customer franchise in SME & Corporate Banking Section 1: Building a Universal Bank 1,153 3,545 Mar-19 Mar-25 CMS Relationships 1,732 9,448 Mar-19 Mar-25 Business Banking Customers 0.1Mn 16.2Mn Mar-19 Mar-25 FASTag Customers - 25,389 Mar-19 Mar-25 Start-up Banking Customers 11
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Bank has set-up 1,002 branches across India 12 • IDFC FIRST Bank Branches and ATMs are spacious, digitally equipped, and customer friendly staff. • The Bank intends to grow the branch network by 10% each year in near term. • Bank grew its branch network 5X from 206 branches as on the date of merger to 1,002 branches as on March 31, 2025. Section 1: Building a Universal Bank
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Section 2: Deposits and Borrowings
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4,524 4,765 6,790 9,732 10,966 16,095 22,794 28,535 Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Customer Deposits Strong growth in Customer Deposits, YoY growth of 25% Mar-25 vs Mar-24 US$ 5,740 Mn. Mar-25 vs Dec-24 US$ 1,792 Mn. 25.2% 6.7% Section 2: Deposits & Borrowings In US$ Mn. 14
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1,224 1,555 3,991 7,517 8,004 12,220 17,805 22,502 Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Retail Deposits Strong growth in Retail Deposits, YoY growth of 26% Section 2: Deposits & Borrowings Mar-25 vs Mar-24 US$ 4,697 Mn. Mar-25 vs Dec-24 US$ 1,237 Mn. 26.4% 5.8% 15 In US$ Mn.
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620 929 2,431 5,400 6,020 8,469 11,149 13,910 Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 CASA Deposits Strong growth in CASA Deposits, YoY growth of 25% Section 2: Deposits & Borrowings Mar-25 vs Mar-24 US$ 2,761 Mn. Mar-25 vs Dec-24 US$ 607 Mn. 24.8% 4.6% 16 In US$ Mn.
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CASA Ratio Stable at ~47% Section 2: Deposits & Borrowings CASA Ratio as of 31st December 2024 was 47.7% 8.7% 11.4% 31.9% 51.7% 48.4% 49.8% 47.2% 46.9% Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 17
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• It is a strategic priority of the Bank to diversify the deposits by raising retail deposits. • Retail Deposit customers get used to transactions, id, passwords, RMs, branch services, auto debits, SI debit, EMI debits, MF investing and hence is more stable than bulk deposits. • Retail deposits have increased from 27% of deposits at merger to 79% currently which has significantly stabilized the deposits side. • Certificate of Deposits (short term money) has come down from US$ 2,625 Mn. as of Dec-18 to US$ 1,120 Mn. as of March-25. Bank has a highly diversified liabilities base with 79% Retail Customer Deposits 18 Section 2: Deposits & Borrowings Dec-18 US$ 4,524 Mn. 27% 73% US$ 3,301 Mn. (Wholesale Deposits) US$ 1,224 Mn. (Retail Deposits) Mar-25 US$ 28,534 Mn. 79% 21% US$ 22,502 Mn. (Retail Deposits) US$ 6,032 mn. (Wholesale Deposits) Customer Deposits
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Deposits & Borrowings Details Particulars (in US$ Mn.) Mar-24 Dec-24 Mar-25 YoY Growth Legacy Long Term & Infrastructure Bonds 1,192 714 496 -58.4% Refinance & Other Borrowings 2,260 3,097 2,759 22.1% Tier II Bonds 529 529 529 0.0% Total Borrowings (A) 3,982 4,340 3,784 -5.0% CASA Deposits 11,149 13,303 13,910 24.8% Term Deposits 11,645 13,440 14,624 25.6% Total Customer Deposits (B) 22,794 26,743 28,534 25.2% Certificate of Deposits (C) 803 1,125 1,120 39.5% Money Market Borrowings (D) 2,011 1,117 801 -60.2% Borrowings & Deposits (A) + (B) + (C) + (D) 29,590 33,326 34,240 15.7% CASA Ratio (%) 47.2% 47.7% 46.9% -34 bps Average CASA Ratio % (On Daily Average Balance for the Quarter) 45.9% 46.9% 46.5% 60 bps 19 Section 2: Deposits & Borrowings
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7.80% 6.48% H2-FY19 FY25 Bank has reduced Cost of Funds by 132 bps since merger 20 Section 2: Deposits & Borrowings • The Cost of Funds of the Bank reduced from 7.80% at merger to 6.48%, a reduction of 132 bps which demonstrates the Bank’s ability to raise low-cost deposit at scale. • Cost of Funds for Q4-FY25 was 6.51% against 6.49% in Q3-FY25. • Cost of Deposits of the Bank was at 6.38% for Q4 FY25 (6.38% in Q3 FY25) Cost of Funds
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48% 11% 19% 3% 21% 13% 6% 31%5% 42% Dec-18 Mar-25 CASA Retail Term Deposits Wholesale term Deposits Certificate of Deposits Borrowings The Bank has raised Retail Deposits and CASA to wind down Borrowings and Certificate of Deposits 21 • Borrowing and Certificate of Deposits together as % of total deposits & Borrowings has reduced from 67% during merger to 15% currently • At the same time, the contribution of granular retail term deposits and CASA has gone up from merely 11% during merger to 73% currently. Section 2: Deposits & Borrowings *Borrowings excludes Money market borrowings US$ 14,067 Mn. US$ 33,439 Mn. Composition of Total Deposits & Borrowings*
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Reliance on borrowings has declined meaningfully, completing the liability side transformation Section 2: Deposits & Borrowings 48% 44% 44% 31% 27% 22% 14% 11% Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Borrowings (Excluding Money Market) as a % of total Deposits & Borrowings 22
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6,783 5,240 4,059 3,529 2,962 2,079 1,389 565 Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Bank continues to run down the Legacy high-cost long-term borrowings 23 • Because we have a DFI background, the legacy borrowings are costing the bank 8.76%. The Bank plans to replace this with low- cost deposits. Section 2: Deposits & Borrowings Maturity of Legacy Borrowings FY26 US$ 529 Mn. Beyond FY26 US$ 36 Mn. In US$ Mn.
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Credit Deposit Ratio has reduced from 137% to below 94% Section 2: Deposits & Borrowings 169.0% 156.6% 159.0% 132.1% 122.2% 111.0% 100.2% 96.0% 137.0% 124.9% 134.8% 117.0% 114.5% 107.0% 98.4% 93.9% Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 CD Ratio (Gross Advances & Credit Substitutes) CD Ratio (Gross Advances) Incremental CD ratio (Gross Advances) on yearly basis (i.e. since March 2024) stood at 76.1% 24
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Section 3: Diversified Loan Portfolio
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Retail Mortgage Backed Loans 13% Vehicle Loans 5% Rural Finance 4% MSME Financing 4% Other Retail and Consumer Loans 9% Corporate Loans 43% Infrastructure Loan 22% Diversified Loan Book The Bank has transformed the loan book from a primarily wholesale credit book to a well diversified portfolio including retail, rural, MSME and corporate Banking Section 3: Diversified Loan Portfolio Loan Book: US$ 12,313 Mn. December 31, 2018 Loan Book: US$ 28,462 Mn. March 31, 2025 Wholesale Book 65% Wholesale Book 18% Retail Mortgage Backed Loans 29% Vehicle Loans 11% Rural Finance 8% MSME Financing 9% Other Retail and Consumer Loans 25% Corporate Loans 17% Infrastructure Loan 1% • The Bank has reduced infrastructure loan as a % of total loan assets from 22% at merger to below 1% currently. • The Bank has improved the mortgage-backed loans % of the total loan assets from 13% at merger to 29% currently. • Other retail and consumer loans as % of the total loan assets from 9% at merger to 25% currently. 26
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Home Loan 11% Loan Against Property 12% Business Banking 4% KCC 2% Salaried Personal Loan 5% Digital Personal Loan 6% Credit Card 3% Two Wheeler Loan 7% Car Loan 3.41% CV/CE Financing 3% Consumer Durable Loans 3% Gold Loan 1% Education Loan 1% Digital Consumer Durable loan 0.3% Rural Finance 8% Micro Credit & MSME Loans 6% Small Business and Professional Loan 4% Other Retail 1% Other Commercial Loans 0.3% Large Corporates 1% Emerging Corporates 6% Financial Institutions 9% Other Corporates incl SE/SR 1% Infrastructure Financing 1% The Bank has diversified its loan book across more than 25 business lines 27 Section 3: Diversified Loan Portfolio 29% of total loan book Backed by Mortgage Loan Book: March 31, 2025 US$ 28,462 Mn. 14% of total loan book is Unsecured Retail Credit GNPA = 1.89% NNPA = 0.56% NPA Includes Personal loans, Digital loans, education loans & credit cards
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Loan Growth driven by HL, LAP , Vehicle and MSME & Corporate Loans 28 • Rural Finance, CV/CE Financing, Business Banking, Gold Loans, Home Loans (< US$ 35.3K) largely contribute to the PSL requirements of the Bank and hence are focus areas. ^ Corporate Loans include PTC, Equity investments & Security receipts amounting to US$ 230 Mn. as on 31st March, 2025. 1. The figures above are net of Inter-Bank Participant Certificate (IBPC) transactions & includes credit substitutes 2. Lending to commercial banking businesses and MSMEs through working capital loans, business banking, commercial vehicle, trade advances, term loans, security receipts, loan converted to equity etc. have been combined with corporate banking as these are all pertaining to financing businesses. 3. Home Loans, vehicle finance, education loans, gold loans, credit cards, etc have been combined under Retail banking as this represents financing to individuals. Loan against property has been retained as part of retail banking as is the convention in the banking system reporting. 4. Consumer loans include Salaried Personal Loans, Small Business & Professional Loans and Consumer Durable Loans 5. Others include digital personal loans, digital consumer durables loans, retail portfolio buyout etc. Section 3: Diversified Loan Portfolio Gross Loans & Advances (In US$ Mn.) Mar-24 Dec-24 Mar-25 YoY (%) QoQ (%) Retail Finance 14,015 15,876 16,636 18.7% 4.8% - Home Loan 2,626 3,094 3,199 21.8% 3.4% - Loan Against Property 2,853 3,033 3,338 17.0% 10.1% - Vehicle Loans 2,450 2,966 3,094 26.3% 4.3% - Consumer Loans 3,118 3,452 3,491 12.0% 1.1% - Education Loans 254 352 368 44.9% 4.5% - Credit Card 652 814 884 35.5% 8.7% - Gold Loan* 121 223 257 112.1% 15.2% - Others 1,941 1,942 2,004 3.2% 3.2% Rural Finance* 2,810 2,969 2,913 3.7% -1.9% - Micro-Finance Loans 1,570 1,294 1,126 -28.3% -13.0% Business Finance (MSME & Corporate) 6,485 8,041 8,680 33.8% 7.9% - of which CV/CE Financing* 740 855 885 19.7% 3.6% - of which Business Banking* 871 1,065 1,148 31.8% 7.8% - of which Corporate Loans ^ 3,710 4,634 4,942 33.2% 6.7% Infrastructure 333 300 276 -17.1% -7.8% Total Gross Loans & Advances 23,643 27,185 28,462 20.4% 4.7%
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The Bank has grown Retail, Rural and MSME finance book strongly for 15 years across cycles while maintaining high asset quality 29 Section 3: Diversified Loan Portfolio 11 91 407 654 927 1,190 1,632 2,428 3,798 4,344 4,966 6,744 8,871 10,880 14,839 19,600 23,243 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 IDFC FIRST Bank Erstwhile IDFC Bank Erstwhile CFL 0.25% 0.06% Gross NPA Net NPA 0.08% 0.00% 0.53% 0.38% 0.99% 0.67% 2.02% 1.41% 2.14% 1.51% 1.91% 1.19% 1.66% 1.06% 1.46% 0.89% 2.18% 1.24% 1.77% 0.67% 4.01% 1.90% 2.63% 1.15% 1.65% 0.55% 1.38% 0.44% 1.70% 0.62% Gross NPA and Net NPA maintained at ~2% and <1% Ex MFI Mar-25 1.40% 0.56%
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The Bank has reduced its infrastructure financing portfolio from 19% in Mar-19 to below 1% of the total funded assets in Mar-25 30 2,525 1,684 1,272 811 549 333 276 19.4% 13.8% 9.2% 5.3% 2.9% 1.4% 0.97% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Infra Book (₹ crore) Infra % Section 3: Diversified Loan Portfolio
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41% 35% 27% 24% 20% 19% 20% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 As a key risk measure, the Bank has reduced concentration risk in Wholesale lending Also, the exposure to top 20 single borrowers reduced from 16% in Mar-19 to 4% in Mar-25 Further, the exposure to top 5 industries also reduced from 41% Mar-19 to 20% in Mar-25 which has further strengthened the balance sheet. 31 Section 3: Diversified Loan Portfolio 16% 13% 12% 9% 7% 6% 4% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25
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32 4. Robust Risk Management Framework 2. EMI / Cheque Bounce (early bucket) return Trend 3. Collection Efficiency Trend 4. SMA – 1+2 Trend 5. Product wise SMA -1+2 trend in Retail, Rural, MSME 11. Trend of Provision Coverage Ratio 9. Vintage Analysis 10. Industry Comparison 30+ Performance for key products 8. NPA Movement 1. Cash-flow based lending – fundamental basis of Bank’s lending 7. Asset Quality Summary Separating MFI asset quality and rest of Book
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Cash Flow Assessment (Bank statements, GST filings, Bureau Data etc.) Debit Instruction to Bank High Asset Quality The fundamental underwriting principle of the Bank explained • The Bank lends on the basis of cash flow assessment – A. Bank assesses the cash flow of the borrower through bank statement, GST, bureau EMI etc. B. Bank takes debit instruction mandate for EMI. • Combination of A+B put together practically works as an escrow. • This is a key reason for the bank portfolio continues to do well through the credit cycles. • Microfinance portfolio does not have debit instructions and the repayments are done through cash collections Section 4: Robust Risk Management Framework 1. Cash-flow based lending – fundamental basis of Bank’s lending 33
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10 Step Stringent Underwriting Process Note: The underwriting process mentioned above, changes depending on product to product. 34 Section 4: Robust Risk Management Framework 1. Cash-flow based lending – fundamental basis of Bank’s lending The Bank evaluates certain quick no-go criteria such as deduplication against existing records, bank validation and minimum credit parameter rules. Fraud Check Certain file screening techniques, banking transaction checks, industry fraud databases, fraud scorecards and real- time video-based checks are used to identify fraudulent applications Field Verification The Bank conducts field level verifications, including residence checks, office address checks, reference verification, lifestyle checks and business activity checks. Industry Check CRILC checks and checks by external entities are conducted to study financials, access to group companies whether legal cases have been filed against the company, disqualification of directors, etc. Ratio Analysis Detailed financial analysis is performed covering, Ratio analysis, debt to net-worth, turnover, working capital cycle, leverage, etc. Personal Discussion Cash Flow Analysis Title Deed Verification Credit Bureau Check Credit Scorecard Personal discussion includes establishment of business credentials, clarifications on financials, queries on banking habits and bureau report, & understanding the requirement & end use of funds. The bank statement of account is analyzed for business credits, transaction velocity, average balances at different periods of the month, EMI debits, account churning, interest servicing, etc. Evaluation of title deeds of the property and collateral, legality validity, enforceability etc., The application is then put through scorecards that includes criteria such as leverage, volatility of avg. balances, cheque bounces, profitability and liquidity ratios and study of working capital, etc. Checking the customer’s credit behavior history, no. of credit inquiries, age in bureau, limit utilization, recency of inquiries, level of unsecured debt, etc. No Go Criteria
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First EMI returns for insufficient funds has reduced by 35% which indicates quality of underwriting has improved over the years 35 7.1% 4.6% Dec-19 Mar-25 ▪ First EMI (FEMI) represents Cheque returns in the FIRST month after Booking. It is thus a direct indicator of the Quality of Booking. ▪ First EMI Bounce Rate for insufficient funds has improved from 4.7% as of Dec-24 by 10 bps sequentially to 4.6% as of Mar-25. ▪ First EMI Bounce Rate, including insufficient funds and technical bounce, has improved from 5.5% as of Dec-24 by 30 bps to 5.2% as of Mar-25. ▪ Percentage are on a 12-months trailing basis, as a sustainable performance indicator. (EMI returns pertain to Month 1 EMI presentation for Month 0 Booking); the above figures are for Urban Retail Portfolio 5.1% 5.1% 5.0% 4.9% 4.7% 4.6% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 First EMI Returns for insufficient funds 2. EMI / Cheque Bounce (early bucket) return Trend Section 4: Robust Risk Management Framework
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99.3% 99.4% 99.4% 99.4% 99.4% 99.5% 99.5% 99.6% 99.5% 99.5% 99.5% 99.5% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 The Bank collection efficiency stable at 99.5% (Excluding micro-finance) Collection Efficiency % = (Pos of EMI Collected for the Month)/(Pos of EMI Due for the month) % Collections % represented here do not include any arrear collections, or prepayment collections, and hence represents the true picture of collections efficiency. • Numbers pertain to collection efficiency in current bucket in Retail portfolio (excluding rural financing) which is the majority of the Book. • Except the microfinance portfolio, the collection efficiency is stable for the other rural products Note: The above figures are quarterly average of monthly collection efficiency. Stable 3. Collection Efficiency Trend Section 4: Robust Risk Management Framework 36
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SMA-1 & SMA-2 portfolio as % of Retail, Rural & MSME Loan Book (Excluding Microfinance business) is stable Stable SMA 1 = 31-60 dpd SMA 2 = 61-90 dpd >90 dpd Pre -NPA NPA SMA-1 & SMA-2 portfolio as % of Retail, Rural & MSME Loan Book, ex MFI (gross of IBPC) • SMA-1 & 2 for microfinance business increased from 4.56% in Dec-24 to 5.10% as on Mar-25 • SMA-1 & 2 for overall Retail, Rural & MSME portfolio (including microfinance business) increased from 1.03% in Dec-24 to 1.07% as on Mar-25 Above numbers are Gross of IBPC 4. SMA 1+2 Trend Section 4: Robust Risk Management Framework 0.87% 0.86% 0.76% 0.80% 0.78% 0.91% 0.85% 0.82% 0.87% Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 37
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Product wise SMA Analysis – All product stable except Microfinance 38 Product-wise SMA-1 & SMA-2 portfolio SMA excluding MFI business is at 0.87% as on March 31, 2025 5. Product wise SMA 1+2 Trend Section 4: Robust Risk Management Framework Above numbers are Gross of IBPC | Consumer loans include consumer durables, personal loans, digital loans and education loans 0.39% 1.05% 1.19% 1.18% 1.88% 1.71% 0.39% 0.95% 1.15% 0.98% 1.69% 2.54% 0.38% 0.95% 1.15% 0.99% 1.32% 4.56% 0.45% 0.94% 1.07% 1.07% 1.53% 5.10% Mortgages Vehicles MSME Consumer Loans Credit Cards Microfinance business Jun-24 Sep-24 Dec-24 Mar-25
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39 39 Retail, rural and MSME product segments continue to have low NPA ratios 6. Break-down of NPA Section 4: Robust Risk Management Framework • Bank’s GNPA was at 1.87% and NNPA at 0.53% • Provision coverage at bank level stood at 72.3% • Gross and Net NPA of Microfinance book stood at 7.71% and 1.86% respectively 11% 13% 12% 8% 3% 11% 14% 17% 1% % of Funded Assets 10% Retail, Rural & MSME - GNPA: 1.70% | NNPA: 0.62% 0.70% 1.15% 1.29% 1.53% 1.68% 1.77% 2.00% 3.67% 1.39% 24.76% 0.39% 0.47% 0.68% 0.41% 0.54% 0.87% 0.63% 0.90% 0.06% 0.00% Home Loan SME Finance Loan Against Property Digital, Gold Loan and Others Credit Card Vehicles Consumer Loans Rural Finance Corporate (Non-Infra.) Infrastructure Financing GNPA% NNPA% Not to Scale
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Asset Quality of the Bank excluding Microfinance business is stable 1.81% 1.63% Dec-24 Mar-25 Gross NPA % • Credit cost of the Bank ex MFI and excluding one legacy infrastructure toll road account was 1.76% for FY25 • For the quarter it has improved from 1.82% in Q3- FY25 to 1.73% in Q4-FY25 7. Asset Quality Summary – Ex-MFI and MFI Section 4: Robust Risk Management Framework 0.49% 0.47% Dec-24 Mar-25 Net NPA % 0.71% 0.72% Dec-24 Mar-25 SMA 1+2 (Bank Level) 0.82% 0.87% Dec-24 Mar-25 SMA 1+2 (Retail, Rural, MSME) 40
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16 21 31 32 18 20 27 37 59 57 36 48 69 91 75 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 SMA-0 SMA-1&2 SMA-0 of microfinance book has declined by 45% QoQ After increase in SMA-0 from Mar-24 to Dec-24, SMA-0 pool has declined by 45% QoQ, which indicates improving portfolio health of microfinance business 7. Asset Quality Summary – Ex-MFI and MFI Section 4: Robust Risk Management Framework In US$ Mn. 41
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Slippages of portfolio excluding microfinance has reduced sequentially 8. NPA Movement Section 4: Robust Risk Management Framework Description (US$ Mn.) Q3 FY25 Q4 FY25 Opening NPAs 494 518 ADD: Gross additions (Fresh Slippages) 258 256 - Other than MFI 206 189 - MFI 51 67 LESS: Recoveries, Upgrades and others -77 -77 Net Addition 181 179 LESS: Write-offs -157 -175 Closing NPA 518 522 • Overall Slippage has reduced in Q4 FY25 by US$ 2 Mn. as compared to Q3 FY25 • Excluding microfinance, the slippages of the portfolio has reduced by US$ 18 Mn. 42
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Vintage Analysis – showing quality of portfolio improvement over the year (excluding microfinance business). 9. Vintage Analysis Section 4: Robust Risk Management Framework 0.00% 0.48% 1.01% 1.50% 1.94% 2.39% 2.83% 3.18% 3.42% 3.62% 3.87% 4.21% 4.31% 4.72% 4.60% 4.78% 4.67% 4.88% 0.00% 0.06% 0.16% 0.29% 0.57% 0.83% 1.07% 1.30% 1.49% 1.66% 1.80% 1.95% 2.07% 2.21% 2.32% 2.43% 2.52% 2.62% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 1 MOB 2 MOB 3 MOB 4 MOB 5 MOB 6 MOB 7 MOB 8 MOB 9 MOB 10 MOB 11 MOB 12 MOB 13 MOB 14 MOB 15 MOB 16 MOB 17 MOB 18 MOB • The Vintage analysis on this graph indicates the expected NPA over the next 3-5 years. The delinquency for the new bookings of Post-COVID for like-to-like vintage is lesser than that booking of Pre-COVID. The past Pre- Covid bookings (Graph A) led to NPA of around 2% and Net NPA of around 1 %. Under the new bookings (Graph B), the NPA is expected to remain range bound around 1.5% and 0.5% based on the above vintage analysis. Vintage Analysis compares the delinquency of a portfolio with another, exactly after the same number of Months on Books (MOB). As per this analysis, For the same vintage, for eg, say, 6 Months on Book, 30 DPD for Pre-COVID portfolio was 2.39%, 30 DPD for Post-COVID portfolio was 0.83% Reduction of delinquency in new portfolio by 65% on like-to-likevintagebasis becauseofcontinuousimprovementinunderwriting Pre-Covid (FY19) Bookings credit performance (Graph A), 30 DPD Post-Covid (FY23, FY24 & FY25) Bookings Credit performance (Graph B), 30 DPD 43
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44 Coincidental (30+%) delinquency better than industry as per CIBIL records 10. Industry Comparison 30+ Performance for key products Section 4: Robust Risk Management Framework 1.90% 1.60% 1.50% 1.46% 1.43% 1.48% 5.40% 4.30% 4.70% 4.60% 4.40% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Loan Against Property IDFC FIRST Bank 30+% Industry 30+%* 1.10% 1.10% 1.20% 1.18% 1.18% 1.21% 3.60% 3.60% 3.80% 3.70% 3.50% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Car Loan IDFC FIRST Bank 30+% Industry 30+%* 0.74% 0.62% 0.60% 0.66% 0.70% 0.68% 4.00% 3.50% 3.50% 3.50% 3.40% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Home Loan IDFC FIRST Bank 30+% Industry 30+%* 2.20% 2.10% 2.46% 2.50% 2.58% 2.61% 5.10% 5.40% 5.40% 6.00% 5.50% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Two Wheeler Loan IDFC FIRST Bank 30+% Industry 30+% *Industry delinquency number is excluding ARC. Live portfolio is defined as 000-719 for HL and LAP products. 000-179 for all other products. Bank delinquency number is Excluding write off and Gross of IBPC, Nos arrived based on account wise DPD status.. *Source Transunion CIBIL Bureau. #IDFC FIRST Bank 30+ includes total outstanding for Non-NPAs & principal outstanding for NPAs. Industry Includes all banks and NBFCs
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45 Coincidental (30+%) delinquency better than industry as per CIBIL records 10. Industry Comparison 30+ Performance for key products Section 4: Robust Risk Management Framework *Industry delinquency number is excluding ARC. Live portfolio is defined as 000-719 for HL and LAP products. 000-179 for all other products. Bank delinquency number is Excluding write off and Gross of IBPC, Nos arrived based on account wise DPD status.. *Source Transunion CIBIL Bureau. #IDFC FIRST Bank 30+ includes total outstanding for Non-NPAs & principal outstanding for NPAs. Industry Includes all banks and NBFCs ^ Bank’s 30+% including interest receivables on NPA book is at 3.6% 2.20% 1.81% 1.98% 2.10% 1.99% 2.17% 6.20% 5.70% 6.40% 6.30% 6.10% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Business Loan IDFC FIRST Bank 30+% Industry 30+%* 2.25% 2.51% 3.02% 3.00% 2.79% 2.89% 3.20% 3.30% 3.20% 3.40% 3.40% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 PL (including Xsell) IDFC FIRST Bank 30+% Industry 30+%* 2.20% 2.30% 2.30% 2.43% 2.56% 2.86% 3.00% 3.20% 3.00% 2.80% 3.20% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Consumer Durable IDFC FIRST Bank 30+% Industry 30+%* 3.50% 3.30% 3.60% 3.44% 3.00% 2.96% 4.30% 4.30% 4.70% 4.70% 4.90% 4.09% 3.93% 4.33% 4.18% 3.69% 3.54% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Credit Card IDFC FIRST Bank 30+% Industry 30+%* 30+ % ^
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Provision Coverage Ratio increased to 72.3% for the Bank 46 56.2% 59.5% 66.4% 68.8% 72.3% Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Provision coverage improved by 347 bps from 68.8% in March 2024 to 72.3% in March 2025 Provision Coverage (Excluding technical write-offs) 11. Trend of Provision Coverage Ratio Section 4: Robust Risk Management Framework
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Section 5: Microfinance Business a. Purpose & Objective b. Trend of Disbursement & Outstanding Book c. Microfinance Trend in Collection Efficiency d. Insured by CGFMU Cover
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Micro-finance Loans – Meets Agri and PSL Requirements 48 • Small ticket size loans offered to only women borrowers primarily in rural areas for their livelihood generation • Usually, 10-20 members come together to form a group, who are provided collateral free loans with mutual guarantee among the members. • Most of the portfolio is eligible for PSL under multiple categories of Agri, Small and Marginal Farmers, Weaker Sections. • Loans are of ticket size of US$ 350 to US$ 1,170 with tenure of 2-3 years. a. Purpose & Objective Section 5: Microfinance Business
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1,570 1,558 1,473 1,294 1,126 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Micro-finance Outstanding book (US$ Mn.) The Bank’s Micro-Finance book has reduced to 4% of total funded assets as the conservative stance of Micro-Finance disbursals continues 49 332 339 245 112 89 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Disbursements (US$ Mn.) The tightening of the underwriting norms has resulted in slowing down disbursal. • Bank put restriction on new to bank customer in selected geographies and have been reducing geographic concentration • The Bank implemented micro-finance scorecards for ETB and NTB segments in Q2FY25 to identify riskier customers b. Trend of Microfinance Disbursement & Book 4.0%6.6% 6.3% 5.6% 4.8%Microfinance Book as a % of Funded Assets Section 5: Microfinance Business
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99.5% 99.4% 99.6% 99.8% 99.7% 99.7% 99.2% 99.4% 99.0% 98.6% 96.9% 96.8% 98.4% 99.2% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Jan-25 Feb-25 Mar-25 Collection Efficiency reduced in Q3-FY25, bounced back to 99.2% in March-25 • Collection Efficiency % = (Pos of EMI Collected for the Month)/(Pos of EMI Due for the month)% • Note: Collections does not include any arrear collections, or prepayment collections in these calculations, and hence represents the true picture of collections efficiency. c. MFI Trend in Collection Efficiency Note: The above figures are quarterly average of monthly collection efficiency. STABLE Impacted due to festive holidays in Oct-24 & Jan-25 Section 5: Microfinance Business Gradually improved (Average 98.1%) Current bucket collection efficiency excluding Karnataka was 99.4% in Mar-25. 50
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Micro-finance business: CGFMU cover increased gradually since January 2024 51 0% 4% 11% 19% 25% 32% 37% 42% 46% 50% 58% 66% Dec'23 Jan'24 Feb'24 Mar'24 Apr'24 May'24 Jun'24 Jul'24 Aug'24 Sep'24 Dec'24 Mar'25 d. Insured by CGFMU cover • The disbursals in micro-finance segment continued to reduce in Q4-FY25. • The incremental new disbursals from January 2024 have been covered under CGFMU. • The Bank has so far covered 66% of the micro-finance book under CGFMU as of 31st March 2025. Section 5: Microfinance Business
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Section 6: Digital Capabilities
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Bank successfully rolled out an advanced Mobile Banking App with top rating of 4.9 on Google Play and 4.8 on App Store 53 Section 6: Digital Capabilities The Forrester Digital Experience Review: Indian Mobile Banking Apps, Q4 2024 → Only Indian bank to feature in Global Top-5 Mobile Banking Apps 4 . 9 4 . 8 1 9 . 9 M + USERS ON APP 6 . 7 M + MONTHLY ACTIVE 1 . 3 M + MONTHLY TRANSACTING 1 . 4 M + REVIEWS CREATE FD in 2 CLICKS FIRSTMONEY PL – ETB/NTB ACE FUNDS/ IPO SMART STATEMENT REVAMPED CREDIT CARD DASHBOARD PAY ABROAD RECHARGE & BILL PAY AA x EQUITY INTEGRATION 1 CLICK SAVINGS ACCOUNT TRAVEL & SHOP 8
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Private Wealth Management: AUM growing at 27% YoY and crossed US$ 5,000 Mn. Section 6: Digital Capabilities 310 762 1,844 2,597 3,960 5,019 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Private Wealth Book (Deposits & Investments – US$ Mn.)^ • The Bank is successfully creating a strong private wealth franchise. • Private Banking Book comprising of Investments AUM & Deposits grew by 27% on a YoY basis to US$ 5,019 Mn. Our Offerings: • PMS & Alternate Investment Funds • Bonds & Structured Products • Pre-listed and Pre-IPO Equity Funds • Estate & Trust Planning Services • Loan against Securities & IPO • Offshore & Immigration Linked Investments ^Includes Deposits of Private Banking customers and Demat. Demat is US$ 409 Mn. as of March 2025. 54
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Over 17 million live FASTags 55 IDFC FIRST is the largest issuer among 38 Issuer banks in NETC with respect to FASTAG monthly activation numbers and value processed. Largest Issuer bank Largest Acquirer Bank with 530+ Toll plaza and parking merchants, with 31% market share. Largest Acquirer Bank Source: NPCI website Issuance Value Issuance value has reached US$ 3,177 Mn. in FY25, with 37% market share. Section 6: Digital Capabilities 16.5M 17.8M Mar-24 Mar-25 Number of FASTags (Live) 3,118 3,472 FY24 FY25 Acquirer Thruput (In US$ Mn.) 2,619 3,177 FY24 FY25 Issuer Thruput (In US$ Mn.) 11%
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Credit Cards in force crosses 3.5 million mark 56 0.1 Mn+ 0.7 Mn+ 1.5 Mn+ 2.5 Mn+ 3.5 Mn+ Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Credit Cards in force 50 237 413 652 884 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Credit Card Book (US$ Mn.) During FY25, the Bank has launched Metal Variants Ashva & Mayura Section 6: Digital Capabilities 36% 37% 49 1,001 2,185 3,458 4,916 FY21 FY22 FY23 FY24 FY25 Credit Card Spends (US$ Mn.) 42%
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Strong growth in Business from recently launched Mobile App 57 Section 6: Digital Capabilities 56 73 Q4-FY24 Q4-FY25 Mutual Funds (Investments) (US$ Mn.) 23 30 Q4-FY24 Q4-FY25 Foreign Payments (US$ Mn.) 535 808 Q4-FY24 Q4-FY25 Payment through UPI (US$ Mn.) 785 1,459 Q4-FY24 Q4-FY25 Fixed Deposits (US$ Mn.)
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3.98 Cr 4.05 Cr 4.11 Cr 4.16 Cr 4.20 Cr 4.23 Cr 4.25 Cr 4.30 Cr 4.34 Cr 4.34 Cr 4.36 Cr 4.36 Cr 4.40 Cr 10.36 L 9.11 L 9.39 L 8.69 L 9.21 L 8.81 L 8.38 L 7.95 L 7.19 L 7.70 L 7.72 L 6.84 L 7.36 L Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Cust # (in'CR) Calls # (in'L) Strong improvement in Customer Service due to Digital Capabilities • Digitisation initiatives are improving efficiency and customer experience in customer service, disbursement, processing, collection, liabilities, and all divisions. • For instance, in the last one year, the number of customers increased by 11% while the monthly customer calls at contact center reduced by 29%. These are not unique customers. This is number of relationships with the bank. For eg, if a customer has a credit card and a savings account, it is treated as 2. Excludes BNPL. Section 6: Digital Capabilities >90% calls answered in ~1 sec with 96% Service Level 58
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59 Section 7: Profitability & Capital
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Strong rise in Profitability, Core PPOP grew 17% YoY in FY25 ^ Excluding trading gains * Reported Numbers are as per the reported results of respective Financial Years Section 7: Profitability & Capital 60 In US$ Mn. unless specified otherwise 412 715 868 1,142 1,487 1,935 2,270 FY19* FY20 FY21 FY22 FY23 FY24 FY25 Net Interest Income 17% 99 182 191 317 487 682 785 FY19* FY20 FY21 FY22 FY23 FY24 FY25 Fee and Other Income 15% 88 208 225 324 542 709 832 FY19* FY20 FY21 FY22 FY23 FY24 FY25 Core Pre-provisioning Operating Profit ^ 17% 0.51% 1.12% 1.22% 1.56% 2.14% 2.25% 2.21% FY19* FY20 FY21 FY22 FY23 FY24 FY25 Core PPOP as a % of Average Total Assets ^
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Breakup of Fee & Other Income – FY25 • The Bank has launched and scaled up many fee-based products in the last 6 years. • Many of these products are in the early stage of their lifecycle and have the potential to grow significantly going forward. • 92% of the fee income & other income is from retail banking operations which is granular and sustainable. • Fee to Average total assets stood at 2.09% for FY25. 61 Section 7: Profitability & Capital General banking Fees & Others 22% Wealth Management Third Party Distribution 16%Trade & Client Fx 9% Credir Card & Toll 20% Loan Origination Fees 33%
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78% 73% 73% 73% ~65% FY22 FY23 FY24 FY25 FY27 P Targeting to bring down the Cost to Income Ratio over next 2 years Assets C:I ratio Trend: 60% 53% 53% 56% ~50% FY22 FY23 FY24 FY25 FY27 P 227% 182% 197% 171% ~140% FY22 FY23 FY24 FY25 FY27 P 240% 165% 116% 100% ~75% FY22 FY23 FY24 FY25 FY27 P Retail Liabilities C:I ratio Trend: Credit Cards C:I ratio Trend: Overall Bank C:I ratio Trend: (excl. trading gain) Section 7: Profitability & Capital Notes. 1. Assets include Retail, Rural, MSME, Business Banking and Wholesale Banking. Since, Business Banking Business (working capital financing to small businesses) is a lending business, numbers of this division have been grouped with Assets. The above numbers are based on internal transfer pricing and allocations. • These afore-mentioned businesses contributes towards majority of the Bank’s C:I • Economies of scale will lead to reduction in the cost to income ratio of Assets. • Bank intends to grow branches only about 10% annually against estimated deposit growth of ~25%. • Credit Cards C:I has come down from 240% to 100% in 4 years and expected to reduce further to ~75% with scale by FY27. • At an overall Bank level , the C:I planned to improve to ~65% by FY27 because of scale. Disclaimer: Kindly note that the aspirations mentioned above have been presented in good faith based on our internal estimates and current business environment. The Bank may or may not be able to achieve the same based on multiple factors such as interest rate movements, regulatory changes, macro-economic changes, geo- political factors, change in business model and any other factors unknown to us at this stage 62
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Composition of Operating Expenditure (FY25) • Volume linked expenses include collection cost, RCU cost, credit administration cost, DICGC premium, credit card reward cost, UPI & RTGS charges etc. • Channel Sourcing expenses included commissions & charges paid to the channels • The Bank has incurred set up costs during the last 6 years and plans to reap benefits of the same in the coming years. 29.4% 21.1% 17.7% 16.1% 12.2% Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 YoY Opex Growth (%) • Bank beginning to see benefits of operating leverage. In FY25, Total Business grew by 23% but the Opex increased by only 16.5%. • Customer Deposits grew by 25.2% and Loans and advances grew 20.4%. Employee Related Expenses 30% Infra Related Expenses 6%Channel Sourcing Expenses 20% Volume linked Expenses 22% Others 12% IT Expenses 10% Section 7: Profitability & Capital 63
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Bank has turned profitable on sustained basis based on strong Operating Profits 64 -229 -337 53 17 287 348 179 FY19* FY20 FY21 FY22 FY23 FY24 FY25 ^ Net Profit (US$ Mn.) *Reported Profit After tax for FY19 Section 7: Profitability & Capital ^ PAT is lower by ~US$ 47 Mn., on account of additional provisions in FY25 on a toll account and micro- finance book • The Asset Businesses (Retail, Rural, MSME & Wholesale Banking) have been contributing to the profitability of the Bank. • The overall profitability, however, is dragged by the losses made in the retail liabilities (branch banking) business and credit card business, which are yet to break-even due to their respective high cost to income ratio as they needed significant investments at their nascent stage for building capabilities and differentiation • FY25 is primarily impacted by microfinance business • For FY25, Return on Assets stood at 0.48% and Return on Equity stood at 4.27%
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Assets (Retail Loans & Wholesale Banking) : Profitability The reduction in FY25 is primarily due to significant reduction in microfinance portfolio and change in portfolio mix US$ Mn. Operating Profit as a % of Average Loan Book (Retail + Wholesale) Section 7: Profitability & Capital Based on internal transfer pricing of the Bank 2.3% 3.1% 3.8% 4.7% 4.8% 4.2% FY20 FY21 FY22 FY23 FY24 FY25 12,302 12,070 13,124 16,460 20,800 25,185 Avg. Loan Book -2% 9% 25% 26% 21% YoY Growth% 65
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Retail Liabilities Business : Moving towards break even with scale and productivity • Retail Liabilities generates necessary granular and sticky retail deposits through its branch network • The Bank has built this segment almost from scratch since merger in December 2018 and invested in building necessary branch infrastructure, people, digital platforms and other capabilities. • With increasing scale, the Pre-provisioning Operating losses as % of average retail deposits have improved from (4.2%) in FY20 to (1.2%) in FY25 Based on internal transfer pricing of the Bank; Average Retail Liabilities includes deposits raised through retail banking group -4.2% -3.0% -2.1% -1.8% -1.7% -1.2% FY20 FY21 FY22 FY23 FY24 FY25 2,732 6,587 8,191 10,778 16,149 22,285 Avg Retail Liabilities 141% 24% 32% 50% 38% YoY Growth % Operating Profit as % of Average Retail Liabilities Section 7: Profitability & Capital US$ Mn. 66
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Credit Cards Business: Operational Break-even achieved within 4 years • Credit Card business was launched during the end of FY21 and has grown significantly since then, issuing more than 3.5 million cards as of March 31, 2025. • Credit Card business needs significant investment in the initial phase in terms of people, product structuring and innovation, digital capabilities, monitoring and collection framework, promotions, tie-ups and distribution. • Asset quality of the credit card book continues to be stable with Gross NPA of 1.68% and Net NPA of 0.54% • Credit Card business has achieved operational break-even in just 4 years indicating a highly successful scale-up Based on internal transfer pricing of the Bank Operating Profit as % of Average Loan Book Section 7: Profitability & Capital US$ Mn. -27.5% -12.3% -3.8% 0.05% FY22 FY23 FY24 FY25 139 303 485 714 Avg. Loan Book 118% 60% 47% YoY Growth% 67
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Balance Sheet 68 In US$ Mn. Mar-24 Dec-24 Mar-25 Growth (%) (YoY) Shareholders' Funds 3,784 4,447 4,480 18.4% Deposits 23,597 27,868 29,655 25.7% - CASA Deposits 11,149 13,303 13,910 24.8% - Term Deposits 12,448 14,565 15,744 26.5% Borrowings 5,992 5,458 4,585 -23.5% Other liabilities and provisions 1,464 1,739 1,730 18.2% Total Liabilities 34,837 39,512 40,449 16.1% Cash and Balances with Banks and RBI 1,468 1,864 1,776 21.0% Net Retail and Wholesale Loans & Advances* 23,266 26,734 28,008 20.4% Investments 8,416 9,047 8,913 5.9% Fixed Assets 308 318 313 1.6% Other Assets 1,378 1,549 1,439 4.4% Total Assets 34,837 39,512 40,449 16.1% *includes credit investments (Non-Convertible Debentures, PTC, SRs and Loan Converted into Equity) Section 7: Profitability & Capital
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Annual Income Statement In US$ Mn. FY24 FY25 Growth (%) YoY Interest Income 3,567 4,294 20.4% Interest Expense 1,632 2,025 24.1% Net Interest Income 1,935 2,270 17.3% Fee & Other Income 682 785 15.2% Trading Gain 24 41 67.0% Operating Income 2,642 3,096 17.2% Operating Expense 1,908 2,223 16.5% Pre-Provisioning Operating Profit (PPOP) 734 872 18.9% Operating Profit (Ex. Trading gain) 709 832 17.2% Provisions 280 649 131.6% Profit Before Tax 454 224 -50.7% Tax 106 44 -58.2% Profit After Tax 348 179 -48.4% 69 Section 7: Profitability & Capital
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Quarterly Income Statement In US$ Mn. Q4 FY24 Q3 FY25 Q4 FY25 Growth (%) YoY Interest Income 967 1,099 1,107 14.5% Interest Expense 441 522 530 20.1% Net Interest Income 526 577 577 9.8% Fee & Other Income 189 207 200 5.7% Trading Gain 4 3 23 505.6% Operating Income 719 786 800 11.3% Operating Expense 523 579 587 12.2% Pre-Provisioning Operating Profit (PPOP) 196 207 213 8.9% Operating Profit (Ex. Trading gain) 192 204 190 -1.0% Provisions 85 157 171 100.8% Profit Before Tax 111 50 42 -61.6% Tax 26 10 7 -73.7% Profit After Tax 85 40 36 -58.0% 70 Section 7: Profitability & Capital
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Core Operating profit excluding MFI business increased by 30.6% YoY in FY25 Section 7: Profitability & Capital Bank Level Profitability (Excluding – Microfinance Business) – US$ Mn. Q4 FY24 Q4 FY25 Growth YoY FY24 FY25 Growth YoY Net Interest Income 456 534 17.0% 1,668 2,044 22.5% Fee & Other Income (excluding trading gain) 185 197 6.2% 662 764 15.4% Core Operating Income 642 731 13.9% 2,330 2,808 20.5% Operating Expenses 501 562 12.2% 1,803 2,120 17.6% Core Pre-Provisioning Operating Profit (PPOP) 141 169 19.9% 527 688 30.6% Based on internal reporting 71
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In US$ Mn. Mar-24 Dec-24 Mar-25 Common Equity 3,640 4,272 4,286 Tier 2 Capital Funds 749 760 751 Total Capital Funds 4,389 5,031 5,036 Total Risk Weighted Assets 27,244 31,230 32,526 CET-1 Ratio (%) 13.36% 13.68% 13.17% Total CRAR (%) 16.11% 16.11% 15.48% Capital Adequacy Ratio 72 Section 7: Profitability & Capital • The board has approved the fresh equity capital raise of ~ US$ 882 Mn. through issuance of Compulsorily Convertible Preference Shares (CCPS) to Currant Sea Investments B.V., an affiliate company of Warburg Pincus LLC and Platinum Invictus B 2025 RSC Limited, a wholly owned subsidiary of private equity division of Abu Dhabi Investment Authority (ADIA) subject to shareholders’ and regulatory approvals. These are Compulsorily Convertible into Equity Shares. • Above table is based on proposed dividend of Rs. 0.25 per share which is subject to shareholders’ approval • Post conversion into equity and proposed dividend, the CRAR would be 18.20% and Tier-I will be 15.89%, if calculated on March 31, 2025 numbers
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Shareholding Pattern Scrip Name: IDFC FIRST Bank (BSE: 539437, NSE:IDFCFIRSTB) Total No. of shares 732.20 Cr Book Value per Share (Mar 31, 2025) Rs. 52.00 (US$ 0.61) Basic EPS (FY25) Rs. 2.08 Shareholding (March,31 2025) Section 7: Profitability & Capital FDI/FPI/FC (25.68%) MF/Insurance/Bank/FI /AIF (19.30%) Public (43.32%) President of India (9.10%) Other Body Corporate (2.49%) Trusts and Clearing Members (0.05%) Others (0.06%) 73
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0.45 0.45 0.38 0.37 0.40 0.46 0.54 0.61 Dec-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 BVPS has grew from US$ 0.37 to US$ 0.61 since March 2021 74 Book Value Per Share (BVPS) reduced during the first few years after merger due to credit losses arising from legacy corporate and infrastructure loans During the last 16 quarters, the BVPS increased by 66% with the increasing profitability from the core business model Section 7: Profitability & Capital In US$ Post-conversion into equity, BVPS would be US$ 0.63
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Section 8: Credit Rating
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Bank’s Long Term Credit Rating Section 8: Credit Rating 76 CRISIL AA+ (stable) ICRA AA+ (stable) India Ratings AA+ (stable) Rating Agency Long Term Credit Rating CARE Ratings AA+ (stable) o AAA rating by CRISIL for its Fixed Deposit Program o Bank’s has Long Term Credit rating AA+ (Stable) from all major rating agencies CRISIL AAA Fixed Deposit
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Section 9: Board of Directors
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Board of Directors: MD & CEO Profile Section 9: Board of Directors 78 Vaidyanathan aspires to create “a world-class Indian Bank, guided by ethics, powered by technology, and to be a force social good”. He becamethe ManagingDirectorandCEO of IDFCFIRSTBankin December2018followingthemergerof CapitalFirstandIDFCBank. Previously, he worked with Citibank (1990-2000) and ICICI Bank (2000-2010), where he built a large retail banking division, expanding branches to 1,411, growing CASA and retail deposits to ₹ 1 trillion, and growing retail lending, including mortgages, auto loans, MSME and Rural banking to ₹1.35 trillion ($15.7bn). He was appointed to the Board of Directors of ICICI Bank in 2006 at age 38. He later served as MD and CEO of ICICI Prudential Life. Chasing an entrepreneurial opportunity, he left ICICI in 2010 to acquire a stake in a small real-estate financing NBFC with a market cap of ₹780 crore ($140m), with an idea to convert it to a commercial Bank. He pledged his stock and home to raise funds, renamed the NBFC as Capital First, and transformed it by exiting real-estate financing and focusing on retail & MSME lending using tech-driven algorithms. He demonstrated the Proof-of-Concept to PE firms, raised ₹810 crore ($94m) in equity by 2012, recapitalized the company, and became Chairman and CEO." Capital First grew its retail loan book from ₹94 crore ($11m) in 2010 to ₹29,600 crore ($3.4b) by 2018, serving 7 million customers with high asset quality. The company turned around from losses of ₹30 crore ($3m) to profits of ₹358 crore ($42m) during this period. Its share price increased from ₹122 in 2010 to ₹845 in 2018, with market cap rising tenfold to ₹8,200 crore ($953m). In 2017, Vaidyanathan sold 1.5% of his personal stake in Capital First to repay a loan used to acquire his ownership. To secure a commercial banking license for Capital First, he merged it with IDFC Bank in 2018 and became the MD and CEO of the renamed IDFC FIRST Bank. Post-merger, the loan book expanded to ₹ 2,41,926 crore ($28.5b) with significant growth in retail, rural, and MSME finance. Customer deposits increased from ₹38,455 crore ($4.5b) to ₹2,42,543 crore ($28.5b) between 2018 and 2025, while the CASA ratio rose from 8.7% to 46.9%, and NIM at 6.1%. The bank turned profitable with a FY25 PAT of ₹1,525 crore ($179m). He has been recognized by numerous awards including “Banker of the Year 2023” by leading Indian publication Financial Express, Ernst and Young "Entrepreneur of the Year" 2022 for Financial Services, "Entrepreneur of the Year" 2020 by CNBC Awaaz, "Most Inspirational Leveraged Management Buyout, India 2018" by CFI Awards, London, "Most Innovative Company of the Year" 2017 by CNBC Asia, "Entrepreneur of the Year 2016 and 2017" from Asia Pacific Entrepreneurship Award, "Most Promising Business Leaders of Asia" by Economic Times in 2016, Business Today - India's Most Valuable Companies 2016 & 2015, Economic Times 500 India's Future Ready Companies 2016, Fortune India's Next 500 Companies 2016.
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Board of Directors Section 9: Board of Directors MR. SANJEEB CHAUDHURI Chairman & Independent Director • Advisor to global organizations across Europe, the US and Asia. • Worked as Regional Business Head for India and South Asia for Retail, Commercial and Private Banking and Global Head of Brand and Chief Marketing Officer at Standard Chartered Bank. • Ex-CEO for Retail and Commercial Banking for Citigroup, Europe, Middle East and Africa. MR. AASHISH KAMAT Independent Director • Has over 32 years of experience in corporate world, with 24 years being in banking & financial services. • Was Country Head for UBS India, 2012-2018 • Previously, he was the Regional COO/CFO for Asia Pacific at JP Morgan in Hong Kong • Worked with Bank of America as the Global CFO for IB, Consumer and Mortgage Products • Experience business & human resources professional with over four decades of experience in senior leadership roles in business and HR, both in India and overseas. • Worked with large multinational corporations, in diverse sectors like Banking, IT, Financial services, Manufacturing etc. • actively involved in coaching and mentoring senior leaders MS. MATANGI GOWRISHANKAR Independent Director • 35 years of experience in domains such as banking, manufacturing and technology. • MD of Commonwealth Bank of Australia (India) from 2019 to 2024. • Held various global positions for the ANZ Banking Services group. • active leader in representing industry forums like CII, NASSCOM, BCIC, Anita Borg Institute and India Inclusion Forum in IndiaMRS. PANKAJAM SRIDEVI Independent Director • Has been in the leadership position since merger with Capital First in December 2018 • Has over 25 years of work experience across Capital First, Standard Chartered Bank, Religare Mcquarie and Dell. • helped to set up retail business in Capital First since inception. • Expertise in Business Development, Technology, Risk Analytics, Debt Management, Project Management, Customer Service, Marketing MR. PRADEEP NATARAJAN Executive Director • Worked as Executive Director in RBI • Worked in RBI for more than 30 years • His key areas of operations included Payment and Settlement Systems, External Investments, managing foreign exchange reserve etc. • He had a key role in the establishment of NPCI, IFTAS, etc. MR. UDAY BHANSALI Independent Director • Was President - Financial Advisory for Deloitte Touche Tohmatsu India LLP and a member of other entities in Deloitte from 2015 to 2024. • Was Executive Director in Kotak Mahindra Capital Company • Executive VP in General Electric Company. • Over 20 years of experience in Arthur Andersen & Co (now Accenture Plc) at multiple positions. MR. PRAVIR VOHRA Independent Director • Was President and Group CTO at ICICI Bank from 2005 to 2012. • In ICICI Bank, he headed a number of functions including the Retail Technology Group & Technology Management Group • 23 years of working experience with SBI in business as well as technology. • Ex-VP (Corporate Service Group) at Times Bank MR. SUDHIR KAPADIA Independent Director • Has over three decades of vast experience in advising Indian and Global Multi-National Companies on their tax strategies and efficiencies • Was the Tax & Regulatory services Leader and a Board member at EY, India and KPMG, India • former President and a permanent invitee of the Board of Bombay Chamber of Commerce and Industry, is a member of the CII National Committee on MNCsMR. S GANESH KUMAR Independent Director 79
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Section 10: Progress on ESG
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81 Section 10: Progress on ESG • ESG adopted into a Board Committee • ESG Management and Steering Committees set up • ESG formed as a business unit • Improved S&P ESG Score (DJSI) (from 19 to 44) • Official participant of the United Nations Global Compact (UNGC) • Official supporter of the Task Force on Climate-related Financial Disclosures (TCFD) FY 23 • First Integrated Report published, aligned to IR framework, GRI & SASB • First BRSR published, aligned to SEBI • Formal ESG targets announced • Commenced and completed baselining of financed emissions • Customer awareness campaigns towards energy efficiency • Identified glide path for Net Zero • Board-approved GHG Emissions Management Policy FY 24 • Obtained BRSR Core reasonable assurance, aligned to SEBI • Became constituent of FTSE4Good Emerging Index • Became among the first banks in India to become a PCAF signatory • Obtained external assurance on sustainable finance categories • Pan-India engagement with employees on ESG initiatives • Launched Green Fixed Deposits and Solar Finance FY 25 Our ESG journey
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82 Section 10: Progress on ESG In top positions across major ESG ratings 57 out of 100 (2024) 48 out of 100 (2023) 68 out of 100 (2024) 67 out of 100 (2023) 12 out of 16 (2024) 7 out of 16 (2023) 20.1* out of 100 (2024) 26.6* out of 100 (2023) *Lower is better C* on a scale of A to F (2024) *First year of participation A* on a scale of AAA to CCC (2024) *Retained from 2023 Emerging Index Inclusion* *2023 onwards
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83 Section 10: Progress on ESG Environment Social Governance Sustainable Finance ▪ 2.38 lakh+ EV two wheelers financed (live portfolio) ▪ 3.75 lakh+ WASH loans disbursed (live portfolio) ▪ 47% of our advances are towards environmental and socially responsible categories* ▪ Launched Green Deposits and Solar Finance ▪ 06 offices and 02 branches (~31% carpet area) green certified by IGBC or LEED ▪ 02 offices fully powered by green energy ▪ 04 offices having EV charging stations ▪ 08 offices having Sewage Treatment Plants (STPs) ▪ 23,848 hours volunteered by employees in FY 25 ▪ 1.39 lakh+ people impacted through CSR in FY 25 ▪ 25 lakh+ employee learning hours in FY 25 ▪ 6,650+ employees in FY 25 (cumulative) participated in various ESG initiatives ▪ Board and Management Committees on ESG ▪ 80% independent directors on Board ▪ 02 women directors on Board ▪ ISO 27001 Certified Information Security Management Key ESG highlights *Link to cat.
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Recognitions for ESG Efforts 84 Section 10: Progress on ESG Outstanding Private Bank in Green Finance (Jan 2025) AFAI Product Innovation Award (WASH) - Silver (Oct 2024) Times Now Climate Awards Financial Inclusion Initiative of the Year – India (Jun 2024) ABF Retail Banking Awards Most ESG Responsible Banking Service – India (Dec 2023) The European Golden Peacock Award in ESG - National (Sep 2023) Institute of Directors India Outstanding Commitment - ESG Performance India (Sep 2023) Capital Finance International ESG Rising Star & Sustainability Impact Award (May 2023) UBS Forums Best Bank Leading the Way in ESG (Apr 2023) Transformance Forums Best Sustainable Bank Strategy (Oct 2022) Navabharat BFSI Award Social Impact Bank of the Year (Sep 2022) The European
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Section 11: Awards and Recognition
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Awards and Recognition World's Best Banks 2025 - Forbes & Statista India's Leading Private Bank (Mid) 2025 - Dun & Bradstreet Best Private Sector Bank Award 2025- M1 TReDS Exchange Best MSME Friendly Bank (Private Sector) 2024 – CIMSME Best Mid-Sized Bank Award 2024- Mint Best Innovation in Retail Banking India 2024 - International Banker Best Mobile Banking App 2024 - CFI FE Best Banks Award for Best Savings Product 2024 – Financial Express FE Best Banks Award for Banker Of The Year - 2024 - Financial Express Best Corporate Governance 2023 - World Finance India's Leading Private Bank (Mid) – Dun & Bradstreet (BFSI & FinTech 2024) Innovation In Banking - Aegis Graham Bell (14th edition – 2024) Best Digital Bank 2023 - Financial Express India's Best Banks Awards 2023 Excellence in BFSI 2023 - National Awards for Excellence Dream company to work for HR 2023 - National Awards for Excellence Most Innovative Digital Transformation Bank 2022 - The European Most Promising Brand Awards 2022 - ET BFSI Best Innovative Payment Solution - Phi Commerce Best Consumer Digital Bank in India – 2021 - Global Finance Magazine Best BFSI Brands in Private Bank Category - ET BFSI Most Trusted Brands of India 2021 - CNBC TV18 Most Harmonious Merger Award - The European Most Trusted Companies Awards 2021 - IBC ET Most Inspiring CEO Award - by Economic Times Section 11: Awards & Recognitions 86
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IDFC FIRST Bank has established its strong presence improving its TOMA score 2 4 13 25 28 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Top Of Mind Awareness (TOMA) ^ ^ Source: Kantar syndicated brand track study • Over the years, the Bank has launched many campaigns and improved its brand recognition • TOMA score represents the brand recall from the customers’ perspective and it has improved from 2 in March-2021 to 28 as of March-2025. • The Bank aspires to improve the TOMA score further going forward Section 11: Awards & Recognitions 87
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IDFC FIRST Bank We are building a world class bank with: - Highest levels of corporate governance - Stable balance sheet growth of ~20%, - Robust asset quality of GNPA less than 2% and net NPA of < 1% - High teens ROE - Contemporary technology and - High levels of Customer Centricity. 88
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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 part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer or recommendation to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contractor commitment therefore. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. There is no obligation to update, modify or amend this communication or to otherwise notify the recipient if information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. Certain statements contained in this presentation that are not statements of historical fact constitute “forward-looking statements.” You can generally identify forward-looking statements by terminology such as “aim”, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “objective”, “goal”, “plan”, “potential”, “proforma”, “project”, “pursue”, “shall”, “should”, “will”, “would”, or other words or phrases of similar import. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or other projections. Important factors that could cause actual results, performance or achievements to differ materially include, among others: (a) material changes in the regulations governing our businesses; (b) the Company's inability to comply with the capital adequacy norms prescribed by the RBI; (c) decrease in the value of the Company's collateral or delays in enforcing the Company's collateral upon default by borrowers on their obligations to the Company; (d) the Company's inability to control the level of NPAs in the Company's portfolio effectively; (e) certain failures, including internal or external fraud, operational errors, systems malfunctions, or cyber security incidents; (f) volatility in interest rates and other market conditions; and(g) any adverse changes to the Indian economy. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. The Company may alter, modify, regroup figures wherever necessary or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. Disclaimer 89
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Thank You
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Annexure 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. 91
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110 324 728 884 1,139 1,409 1,887 2,332 3,176 3,838 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 H1-FY19 Wholesale AUM (US$ Mn) Retail AUM (US$ Mn) Successful Trajectory of Growth and Profits at Capital First Financial Performance: The Asset Under Management has consistently grown at 5-Year CAGR of 29% 92
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-3.4 -3.8 -1.8 -5.4 0.4 4.1 6.3 13.4 19.6 28.1 38.5 24.2 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 H1-FY19 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 lending were prepared. Once the company got scale, Capital First posted a CAGR growth in profits of 56% for last 5 years. Profit After Tax (Normalized) – US$ Mn. * For Half Year H1-FY19▪ New Leadership takes over in 2010. ▪ New Retail Product Lines launched. ▪ Retail Team, Systems, Processes designed. ▪ Closed down subsidiaries, prepared company for PE equity backing ▪ Platform set for Business growth and Profitability. ▪ Company turned profitable in FY12 and since then consistently increased profit for the next 6 years with a CAGR of 45% Successful Trajectory of Growth and Profits at Capital First Financial Performance: Yearly Trend of Profit After Tax 93
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128% 115% 72% 74% 78% 80% 71% 59% 51% 51% 53% 48% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 H1-FY19 Cost to Income ratio (%) ~ 70 – 80% < 50% The Cost to Income ratio, which was high at ~130% in the early stages of the company, reduced to <50% once the business model stabilized over the years. 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 profitability. 94
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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 growth and profitability. 2.28% 2.96% 4.15% 11.09% 7.02% 8.89% 9.58% 10.29% 8.32% 10.08% 10.68% 11.20% 11.39% 12.87% 12.10% 12.49% 11.46% 13.06% 14.08% 14.82% 14.47% 14.46% Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19* Q2 FY19* All figures are annualised 4.93% 8.33% 10.14% 11.93% 13.31% FY15 FY16 FY17 FY18 14.51% H1-FY18 FY14 *Highlighted figures are based on Indian AS in comparison to quarterly figures for earlier periods based on Indian GAAP. Raised equity in Q4-FY14 at Rs. 152 per share Raised equity in Q4-FY15 at Rs. 390 per share Raised equity in Q3-FY17 at Rs. 712 per share 95
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138 106 92 136 174 428 463 897 974 717 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 31-Mar-16 31-Mar-17 12-Jan-18 31-Mar-18 Market Capitalization (US$ Mn.) * Market Cap as on 31-March-2012, the year of Management Buyout # Market Cap on the day before the announcement of merger with IDFC Bank (Jan 13, 2018). During this phase, the Company - • built the Retail Platform, technologies for chosen segments, • divested / closed down non-core businesses like broking, property services, Forex services etc, • Merged NBFC subsidiary with the parent • brought down high NPA levels (GNPA 5.28% and NNPA 3.78%) 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 profitability. 96
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1.4 1.9 2.1 4.7 5.1 9.2 9.9 31-03-2012 31-03-2013 31-03-2014 31-03-2015 31-03-2016 31-03-2017 15-01-2018 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 profitability. Stock Price increased 7x from US$ 1.4 to US$ 9.9 in 6 years 97