#1IDFC FIRST Bank | आई डी एफ सी फर्स्ट बैंक BKC BRANCH Investor Presentation - Q4 FY22 IDFC FIRST Bank ווי#2Table of Contents Management Commentary Financial Performance Since Merger Year FY19 Key Highlights of FY22 Results IDFC FIRST Bank - History Vision and Mission of IDFC FIRST Bank Product Offerings Update on Deposits and Borrowings Update on Funded Assets Asset Quality Profitability Capital Adequacy Board of Directors Shareholding Pattern#3Management Commentary Management Commentary 1/4 We focused on building a strong platform for the first three years: On merger, we had a large loan book of Rs. 1,04,660 crore but very low retail deposits of only Rs. 10,400 crore. This had to be addressed. So we slowed down overall loan growth for the first 3 years (loan growth of CAGR 6% FY19 to FY22), and grew deposits strongly (Retail Deposits growth CAGR 72%) to strategically strengthen the Bank. This phase of consolidation is now complete. We have built a strong foundation which we believe will be a springboard for growth from here on. Loan book to grow from here on: We have made significant progress during the last three years (FY 19-22). We expect the loan book to grow at ~20-25% on a sustainable basis from here on for the foreseeable future. We have strong and proven competence in building retail lending business with high asset quality (GNPA ~2% and NNPA ~1%), strong margins, and high ROE (~15%, incremental ROE ~20) for over a decade. All Legacy Accounts provided for, or already disclosed in NPA: We have sufficiently provided for all legacy stressed corporate and infrastructure loans. The share of Infrastructure book has further reduced to 5.2% of the total Funded Assets from 9.2% as on March 31, 2021. The spectrum related telecom account BGs issued by the Bank have been released. High quality of incremental Wholesale Lending: We have sanctioned Rs. 17,500 crores of loans to new corporate clients since merger and there is nil NPA on this book. Demonstrated capability to raise Deposits: We have demonstrated our strong capability to raise deposits based on our strong brand, customer first products and excellent service. We grew retail deposits by Rs. 54,820 crore to reach Rs. 68,035 crore in just three years. This shows that we can comfortably raise deposits as required for expected growth of 20-25% of the loan book. 2 IDFC FIRST Bank#4Management Commentary Management Commentary 2/4 Strong CASA Base: We have built a strong CASA base of ~50% which is best in class in the industry. In absolute terms we have grown CASA by ~Rs. 42,000 crore in 3 years that demonstrates our capability on this front. Stable Asset Quality: For retail and commercial loans, which is majority of the book, our GNPA and NNPA has reduced to 2.63% and 1.15%. We are confident to continue the downward trajectory in retail NPA to reach our near 10-year long term GNPA and NNPA levels of 2% and 1% respectively. All input indicators of asset quality (such as cheque bounce, collection efficiency, recoveries, vintage analysis) point to the same. Strong Capital Position: The bank is strongly capitalised at 16.8% and has significant headroom for Tier 2 capital, and loan growth. Strong incremental Unit Economics: Our incremental unit economics of the bank are excellent. Our NIM is over 6%. Incremental ROE on Retail lending is between 18-20% after adjusting for credit costs and tax. This will show in the P & L in due course. Diversified fee income: We have developed multiple and diversified streams of income in the bank across Fastag, Cash management, wealth management, wholesale loans, retail loans, insurance distribution, mutual fund distribution and in all businesses we feel we are yet at the start of the journey. We continue to launch new business lines. Retail Fees constitutes 84% of the total fee income which points to granularity and sustainability of this line item. 3 IDFC FIRST Bank#5Management Commentary 3/4 Management Commentary Strong Growth in Operating Profits: While the loan book grew by only 13% YoY, the Core Operating Profit has risen by 44% from Rs. 1,909 crores in FY 21 to Rs. 2,753 crores in FY 22. This clearly demonstrates that our incremental business is highly profitable and we are beginning to see strong improvement in operating leverage. We expect this phenomenon to continue to play out over the next few years, which will result in increase in overall profitability and ROE. Net Profit for Q4 FY22: The bank posted net profit of Rs. 343 crores in Q4-FY22 driven by core operational income. Due to three specific factors (a) legacy high-cost liabilities, (b) retail branch/ ATM/ liabilites set up expenses, and (c) set up of credit cards, there is a net profit impact of ~ Rs. 500 crores/ quarter. This is reducing every quarter. We expect the drag caused by these three factors to be largely eliminated by FY 25 based on our internal analysis and trends. Adjusted for these, the return on equity of the bank is already at ~15%, and we expect our return on equity to stabilise at 17-18% based on calculations of incremental unit economics. Corporate Governance: Eminent, qualified and experienced Board of Directors. All committees are headed by independent directors except CSR which is headed by the MD and CEO. We say things as they are, with transparent communication, both internal and external, and detailed investor presentation. 4 IDFC FIRST Bank#6Management Commentary 4/4 Management Commentary Our Customer First Approach: We are built on the foundation of customer-first principles. We believe in being transparent and not in billing the customer fees or charges in small bits and pennies through fine-prints. For instance, unlike common market practice in India and elsewhere, we do not charge non-home branch charges, SMS update fees, IMPS fees, etc. We were the first universal bank to offer monthly interest credit for savings accounts. In credit cards, we were the first bank to introduce low, dynamic pricing, zero interest rate on cash withdrawal till billing date, lifetime Free credit cards, easy online redemption of rewards points, and so on. Similarly, in every product we launch, whether current accounts, fleet cards or wealth management, we are bringing something new and customer-first special to the market. Thus, there are a large number of "customer firsts" we have introduced to the industry. On the lending side, we are attractively priced like regular mainstream banks. Contemporary Technologies: The bank continues to invest in laying a strong, modular and contemporary technology architecture that will help the bank to simultaneously enable efficiency, resilience, and growth. Our newly launched mobile app based on these technologies is top rated and provides several unique services and experiences to our customers. The Bank continues to strengthen its superior capabilities of predictive analytics in the area of credit underwriting, portfolio management, collection strategy, fraud risk mitigation and other such areas. 5 IDFC FIRST Bank#7Financial Performance Since Merger Year FY19 Retail Deposits (In Rs. Cr) CAGR 73% 13,214 Mar-19 68,035 8.95% Mar-22 FY19* Avg CASA Ratio (%) 4,093 bps 49.88% Financial Performance Since Merger Year FY19 Net Interest Margin (%) 3.17% 279 bps FY22 FY19* Retail & Commercial Finance Capital Adequacy Ratio (%) (In Rs. Cr) CAGR 31% 42,209 Mar-19 95,377 Mar-22 15.47% 127 bps Mar-19 *Average CASA Ratio is for H2FY19, NIM% and PPOP (ex trading gains) of H2-FY19 are annualized for FY19. 16.74% 5.96% FY22 Operating Profit (Ex. Trading Gain) (In Rs. Cr) 1,104 CAGR 36% Mar-22 FY19* 2,753 FY22 6 IDFC FIRST Bank#8Key Highlights of FY22 Results Area Key Parameters Key Highlights of FY22 Results FY21 FY22 Growth (%/bps) Funded Assets Rs. 1,17,127 Cr Rs. 1,31,951 Cr 13% Assets Retail Funded Assets Rs. 65,300 Cr Rs. 83,740 Cr 28% Customer Deposits Rs. 82,725 Cr Rs. 93,214 Cr 13% Deposits Average CASA Ratio (%) 41.50% Asset Quality (GNPA, NNPA) (%) 4.15%, 1.86% Asset Quality Retail & Commercial (GNPA, NNPA) (%) 4.01%, 1.90% 2.63%, 1.15% 49.88% 3.70%, 1.53% 838 bps 45 bps, 33 bps 138 bps, 75 bps Capital Capital Adequacy Ratio (%) 13.77% 16.74% 297 bps Net Interest Margin (%) 5.03% 5.96% 93 bps Cost to Income* (%) - Q4 84.18% 76.18% 800 bps Core Operating Profit* - FY Rs. 1,909 Cr Rs. 2,753 Cr 44% Profitability Core Operating Profit* - Q4 Rs. 405 Cr Rs. 836 Cr 106% Profit After Tax - FY Rs. 452 Cr Rs. 145 Cr -68% Profit After Tax - Q4 Rs. 128 Cr Rs. 343 Cr 168% *Excluding trading gain 7 IDFC FIRST Bank#9Table of Contents Management Commentary Financial Performance Since Merger Year FY19 Key Highlights of FY22 Results IDFC FIRST Bank - History Vision and Mission of IDFC FIRST Bank Product Offerings Update on Deposits and Borrowings Update on Funded Assets Asset Quality Profitability Capital Adequacy Board of Directors Shareholding Pattern#10IDFC FIRST Bank was created through Merger of two institutions IDFC FIRST Bank History IDFC FIRST Bank was created by the merger of Erstwhile IDFC Bank and Erstwhile Capital First on December 18, 2018. Prior to this IDFC First Bank was a premier infrastructure Financing Domestic Financial Institution renowned for its contribution to infrastructure in India since 1997. Capital First was a highly successful consumer and MSME financing entity since 2012 with strong track record of growth, profits and asset quality. 13.9 shares of IDFC Bank were issued for every share of Capital First as part of the merger scheme. 9 IDFC FIRST Bank#11Background information of IDFC Bank . • • • Erstwhile IDFC BANK IDFC FIRST Bank History IDFC Limited was set up in 1997 with equity participation from the Government of India, to finance infrastructure focusing primarily on project finance and mobilization of capital for private sector infrastructure development. Whether it is financial intermediation for infrastructure projects and services, or innovative products to the infrastructure value chain, or asset maintenance of existing infrastructure projects, the company built a substantial franchise and became acknowledged as experts in infrastructure finance. Dr. Rajiv Lall joined the company in 2005 and successfully expanded the business to Asset Management, Institutional Broking and Infrastructure Debt Fund. In 2014, the Reserve Bank of India (RBI) granted an in-principle approval to IDFC Limited to set up a new bank in the private sector. Following this, the IDFC Limited divested its infrastructure finance assets and liabilities to a new entity - IDFC Bank- through demerger. Thus IDFC Bank was created by demerger of the infrastructure lending business of IDFC to IDFC Bank in 2015. The bank was launched through this demerger from IDFC Limited in November 2015. During the subsequent three years, the bank developed a strong and robust framework including strong IT capabilities for scaling up the banking operations. The Bank designed efficient treasury management system for its own proprietary trading, as well as for managing client operations. The bank started building Corporate banking businesses and diversified from infrastructure. Recognizing the change in the Indian landscape, emerging risk in infrastructure financing, and the low margins in corporate banking, the bank launched retail business for assets and liabilities and put together a strategy to retailize its loan book to diversify and to increase margins. Since retail required specialized skills, seasoning, and scale, the Bank was looking for inorganic opportunities for merger with a retail lending partner who already had scale, profitability and specialized skills. The bank was looking for a merger with a retail finance institution with adequate scale, profitability and specialized skills. 10 IDFC FIRST Bank#12IDFC FIRST Bank . • • • Background information of Capital First • • Erstwhile CAPITAL FIRST LIMITED • History Mr Vaidyanathan had built ICICI Bank's Retail Banking business between 2000-2009 and was later the MD and CEO of ICICI Prudential Life Insurance Company in 2009-10. During 2010-12, he acquired a significant stake in a small real-estate financing NBFC through leverage, wound down the then businesses of broking, wealth and Foreign Exchange, and instead used the NBFC vehicle to start financing consumers (Rs 12000-Rs. 30,000) and micro- entrepreneurs (Rs. 1-5 lacs) who were not financed by existing banks, by using alternative and advanced technology led models. Within a year he built a prototype loan book of Rs. 770 crore ($130m, March 2011), and presented the proof of concept to many global private equity players for a Leveraged Buyout (LBO). In 2012, he concluded India's largest Leveraged Management Buyout, got fresh equity of Rs. 100 crore into the company and founded Capital First as a new entity with new shareholders, new Board, new business lines, and fresh equity infusion. He then turned around the company from losses of Rs. 30 crore and Rs. 32 crore in FY 09 and FY 10 respectively, to PAT of Rs. 327 crore ($ 4.7b) by 2018, representing a 5 year CAGR increase of 56%. The loan assets grew at a 5 year CAGR of 35% to reach Rs. 29,625 crore (Sep 2018). The company financed seven million customers for Rs. 60,000 crore ($8.5b) through new age technology models. The market capitalization of the company increased ten-fold from Rs. 780 crore on in March 2012 to over Rs. 8,282 crore in January 2018 at the time of announcement of the merger. As per its stated strategy, Capital First was looking out for a banking license to convert to a bank when opportunity struck in the form of an offer from IDFC Bank to merge with Capital First, with Mr. Vaidyanathan to become the CEO of the merged bank. Erstwhile Capital First, as part of its stated strategy, was on the lookout for a commercial banking license. 11 IDFC FIRST Bank#13Erstwhile IDFC Bank was an eminent institution respected for its corporate governance and its contribution to Indian Infrastructure. IDFC FIRST Bank History 1997 IDFC incorporated in Chennai on the recommendation of the Expert Group on commercialization of Infrastructure Projects IDFC raises Rs. 893 crore for India's 2008 2003 first infrastructure dedicated growth equity fund2.8 IDFC raises Rs. 700 million in a second growth equity fund and Rs. 930 million in a new asset-class to recycle equity in completed infrastructure projects Acquired AMC business of Standard Chartered Bank. Setup an office in Singapore 2011 • • IDFC Mutual Fund ranked 10th in the country by AUM IDFC completes 15 years. Recognised as the best NBFC for Infrastructure Financing. Set up an office in New York, USA. . 2005 IDFC lists on both NSE & BSE. Raises Rs. 1372 crore of equity capital IDFC is recognised as a top 5 Lead Arranger for Project Finance Loans in Asha by Dealogic 2012 2009 IDFC becomes a signatory to UNPRI, CDP and the UNGC Global Compact 2006 IDFC raises over Rs. 2000 crore for its second infrastructure focused growth equity fund 2013 IDFC becomes the first signatory to the Equator Principles 2007 Does a QIP raising Rs. 2100 crore Acquired SSKL, a leading domestic investment bank and institutional equities firm 2010 • IDFC Investment Bank ranked 2nd in the equity league tables by Bloomberg. IDFC ranked among the top 50 companies in India's S&P ESG Index. Secured license from RBI 2014 ⚫ IDFC launches the National PPP Capacity Building programme to train over 10,000 government officials Launch of IDFC Bank 2015 About IDFC Bank In 2015, IDFC Bank was formed out of demerger from IDFC Ltd which was one of the biggest infrastructure finance company in India. The institution diversified into Asset Management, Institutional Broking and Investment Banking. It applied for and acquired a Commercial Banking License from RBI IDFC Bank created a strong banking framework creating all the necessary systems, risk management, infrastructure, IT architecture and processes for future growth. It created efficient cash management system and treasury and for managing trading. 12 IDFC FIRST Bank#14Erstwhile Capital First had a history of strong growth and profitability. Background Capital First was a successful NBFC, growing its loan book and net profits at a 5 year CAGR of 29% and 56% respectively, with stable asset quality of Gross NPA of <2% and Net NPA of <1% for nearly a decade. Strong growth in AUM Wholesale AUM Retail AUM Retail AUM increased from 10% to 90% 935 Total AUM 32,623 26,997 19,824 16,041 11,975 6,186 7,510 9,679 2,751 FY14 FY15 FY16 FY17 FY18 128% 115% -15.7 IDFC FIRST Bank History (Rs. Cr) 5 Yr PAT CAGR of 56% 3.8 5 Year CAGR of 56% 327 239 166 206 114 35 56 Cost to income came down to <50% with scaling up of business 78% 80% 72% 74% 71% 59% 51% 51% 53% 48% FY14 FY15 FY16 FY17 FY18 H1-FY19 Sep-18 Continuous Increase in Return on Equity (%) -2.1% -6.1% FY10 I FY11 ! 0.5% FY12 Consistent growth in RoE 3.6% 4.9% 8.3% 10.1% 11.9% 13.3% 14.5% FY13 FY14 FY15 FY16 FY17 FY18 H1-19 -46.2 FY15 FY16 FY17 FY18 H1-19 Stock Price increased 7x from Rs. 120 to Rs. 850 in 6 years 7 X increase in stock price in under 6 years 120.55 162.20 178.90 431.55 399.40 845.60 782.50 3/31/2012 3/31/2013 3/31/2014 3/31/2015 3/31/2016 3/31/2017 1/15/2018 13 IDFC FIRST Bank#15Asset quality remained high for close to a decade at Capital First. IDFC FIRST Bank History We present below the asset quality trends of our bank (including pre-merger history at Capital First) as demonstration of our skills and track record in managing stable and high asset quality, i.e. Gross NPA and Net NPA was maintained at ~2% and 1% respectively over a long time. The portfolio remained stable even after being stress tested through economic slowdown in 2010-2014, demonetization (2016), GST implementation (2017). After the merger, the bank has been able to move to even safer credit categories like prime home loans because of reduced cost of funds of a bank. Based on the above, we expect to maintain the business at Gross NPA of 2%, Net NPA of 1% and credit costs of ~2% in a stable manner. Largely Wholesale Loan 5.28% Book during this phase 3.78% CFL-GNPA CFL-NNPA During this phase, the Company transformed into a Retail Financing Player with introduction of many Retail Loans products and consequently the quality improved and remained high over the years. (Section of the Graph is representative) Demonetization Nov 8th 2016 GST Launched July 1st 2017 1.74% 1.21% 1.71% 1.13% 1.52% 1.59% 1.65% 1.72% 1.63% 1.59% 1.62% 1.57% 0.97% 1.00% 1.00% 1.04% 1.00% 0.97% 1.00% 1.00% 31-Mar-10 31-Mar-16 30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 30-Jun-18 Note: NPA recognition norm migrated to 90 dpd effective from 01 April, 2017. 14 IDFC FIRST Bank#16Pre merger - Proforma Financials of IDFC Bank and Capital First - P&L (H1 FY19) In Rs. Crore Funded Assets / AUM Net-Worth NII Fees & Other Income Treasury Income Total Income Opex PPOP Provisions PBT IDFC FIRST Bank History Erstwhile IDFC Bank (H1 FY 19) Erstwhile Capital First (H1 FY 19) 75,332 32,623 14,776 2,928 912 1,143 Proforma Total (H1 FY 19) 1,07,955 17,704 2,055 256 153 409 31 31 1199 1,297 2,496 1108 616 1,724 91 681 772 562 363 925 -471 317 (154) Key Ratios NIM % RoA at PBT level % ROE % (at normalized level) Cost to Income Ratio % 1.56% 8.20% 2.85% (0.75%) 2.26% (0.20%) (4.18%)* 14.51% (1.21%) 92.41% 47.52% 69.09% Note: IDFC Bank and Capital First Limited (CFL) were in IGAAP and IND-AS respectively in H1-FY19 15 IDFC FIRST Bank#17Table of Contents Management Commentary Financial Performance Since Merger Year FY19 Key Highlights of FY22 Results IDFC FIRST Bank - History Vision and Mission of IDFC FIRST Bank Product Offerings Update on Deposits and Borrowings Update on Funded Assets Asset Quality Profitability Capital Adequacy Board of Directors Shareholding Pattern#18Vision and Mission of IDFC FIRST Bank Our Vision: "To build a world class bank in India, guided by ethics, powered by technology and be a force for social good." Our Mission: "We want to touch the lives of millions of Indians in a positive way by providing them high-quality affordable banking" • ETHICAL DIGITAL BANKING SOCIAL * GOOD Vision & Mission of IDFC FIRST Bank We shared the above seal with our employees to capture our vision. In all products we launch, we are driven about one thing: to deliver high-quality affordable banking services. Employees' DNA are being coded to be sincere about working in the customer's interest at all times. Organisation Theme Line: #alwaysyoufirst When IDFC FIRST Bank was formed with the merger between erstwhile Capital First and erstwhile IDFC Bank, we deliberated a lot on what our founding theme should be and finalised on the theme 'Always You First" - where "You" refers to our customer. This theme cuts across the entire organisation and binds the bank to a single theme. 17 IDFC FIRST Bank#19Vision & Mission of IDFC FIRST Bank “ Key excerpts from MD & CEO's letter in Annual Report 2019-20 The financial year 2019-20 was a year of building the foundation for the Bank. This was a year of non-stop, high octane action at our Bank; we completed the merger, integrated two systems, technology, processes and people, re-defined reporting hierarchies, energised the teams, went all out for retail liabilities (up 157%), grew retail loans (up 40%), changed the composition of the balance sheet, reduced dependence on institutional deposits, reduced Top-20 borrower exposure percentages, reduced Top-20 depositor percentages, dealt with unexpected hits on some wholesale banking accounts, appointed a brand ambassador, dealt with COVID-19 and lockdowns, raised 2,000 crore of equity capital in the midst of the lockdown, and are submitting this annual report to you from behind screens. Our Bank enjoys an excellent brand image. Q4 FY20 was, without doubt, the most trying period of our lifetime. Global indices crashed 20-25%, and NYSE shut down at lower circuit breakers, twice in March 2020. Our own stock exchanges were crashing by the day due to COVID-19. There was total panic in the markets. At the same time, news about one private sector bank was quite negative and that bank was put on moratorium by the regulatory authorities. You will be happy to note even in a quarter of such chaos, the Retail Deposits of our Bank grew by 4,658 crore in Q4 FY20 alone, representing a sequential QoQ growth of 16%. Such is the confidence our Bank enjoys in the market. " CE Growth, you will agree, is not an issue in India. Mid-teens ROE can be built for sure, most good banks have achieved it. Our incremental margins are strong. Our business is highly scalable. We have a very high level of corporate governance. We focus on the customer. I believe it is inevitable that value will be created in this approach. GE Culture is not just about how things get done around here, it's a much longer list such as, about how people conduct themselves in office and in society, how committed they are to the mission, how to resolve conflicts, not using offensive or abusive words, imbibing the organisation's policy that the customer comes first and so on. " 18 " IDFC FIRST Bank#20Key Excerpts from MD & CEO's letter in Annual Report 2020-21 Vision & Mission of IDFC FIRST Bank usually renUS d profitability are carrying rgely legacy, are replaced r Bank, you ability of our ump straight ncremental ur Bank. I class bank irst values, We make products with transparent pricing and lees. Working on the theme of Customer First, we came up with many unique features as follows: We advise our product teams to design products in such a way that it is meant to be sold to our "near and dear" ones. ■ Monthly credits: We have started "monthly" credit of interest on savings accounts, against the industry practice of Quarterly credits. So, our customers earn "interest on interest" monthly on their savings accounts. To the best of our knowledge, no large 21-22 is loan book tandards, ady been ect to see . Q3 and keep our ban book. g a 2-1-2 of 1% and a steady borrowings of our DFI background, and these are the challenges of converting a DFI into a bank. When our Bank will replace this at say, 5.0%, we would save about * 1,000 crore per year on an annuity basis compared to today. This is a legacy issue on the liability side and will go away with time. When our bank will replace this at say, 5.0%, we would save about 1,000 crore per year on an annuity basis say that were Don't underestimate the power tayed motivated of the 50% CASA Bank with a OVID. They were ssist customers. powerful and tested lending are scheme for salary credit to machine attached to it. loan, extension ths, scholarship until graduation, hing allowance of ated this greatly. zation program. ew products. We ank. Our senior bnus cuts to lead I express our sincere thanks to our regulator the Reserve Bank of India who have constantly guided us on our approach and supported us throughout. Our Board members are eminent people with rich experience, have great intellect, highest levels of integrity and have constantly guided the Bank with strategic inputs and towards very high standards of corporate governance. I sincerely thank our customers for hanking with us I also loans profitably which has multiplied our market opportunities. Reducing our savings account interest rates had another positive side benefit; we can now participate in prime Home loans profitably which has multiplied our market opportunities. lucing Concentration risk: Deposits from our Top depositors have reduced from 40.0% of customer osits at merger to only 7.7% as of March 31, 2021. rink mitigation meaALLA You can b. C. d. from large corporate accoun finance company, a finan Mumbai based Toll Road based power account, a te few other such accounts cycle in infrastructure financ financial conglomerates gol exposure to the telecom ac the issues are behind us. Infrastructure financing because of dependence or and dependence on ecosyst limited control. We have b outstanding to infrastructure merger to 10,808 crore as On the Corporate Bank implemented good controls recent portfolio performanc Significant reduction in th list: We have brought down i. 2- 1-2 Formula: We will be targeting a 2-1-2 formula, i.e. Gross NPA of 2%, Net NPA of 1% and provisions of 2% on funded assets on a steady state basis. We will be targeting a 2-1-2 formula, i.e. Gross NPA of 2%, Net NPA of 1% and provisions of 2% on funded assets expect mortgage backed loans to form 40% of our loan book in due course. We expect mortgage backed loans to form 40% of our loan book in due course. Credit Costs: Our provisions for FY 21-22 is expected to be only 2.5% of the average loan book which is quite reasonable by industry standards, of which a substantial portion has already been Thus our incremer is estimated at 18 b. Strong increm Lending busines business ROE is But you are not ye because of the fol C. Higher cost of currently: As of crore of liabilities borrowings of our challenges of com Bank will replacet * 1,000 crore per 19 IDFC FIRST Bank#21Table of Contents Management Commentary Financial Performance Since Merger Year FY19 Key Highlights of FY22 Results IDFC FIRST Bank - History Vision and Mission of IDFC FIRST Bank Product Offerings Update on Deposits and Borrowings Update on Funded Assets Asset Quality Profitability Capital Adequacy Board of Directors Shareholding Pattern#22Product Offerings The Bank has wide bouquet of Consumer and MSME loans .. across varied customer segments including Consumers and MSMEs in different parts of India ETHICAL Prime Home Loans: Starting at 6.9% to select Prime Salaried Customer of top corporates, Self-employed customers for buying house property. Affordable Home Loans: Smaller ticket size home loans to salaried and self-employed customers for purchasing house property. Loan Against Property: Long term loans to MSMEs after proper evaluation of cash flows; against residential or commercial property New & Pre-owned Car Loan: To salaried and self-employed customers for purchasing a new car or a pre-owned car Business Loans: Unsecured Loans to the self- employed individual or entity against business cash-flows DIGITAL BANKING *SOCI Personal Loans: Unsecured Loans to salaried and self-employed customers for fulfilling their financial needs Consumer Durable Loans: financing to individuals for purchasing of LCD/LED panels, Laptops, Air-conditioners etc Two Wheeler Loans: To the salaried and self-employed customers for purchasing new two wheelers Micro Enterprise Loans: Loan solutions to small business owner JLG Loan for Women: Sakhi Shakti loan is especially designed as the livelihood advancement for women, primarily in rural areas Apart from these products, Bank also offers Working Capital Loans, Corporate Loans, Forex & trade for Business Banking and Corporate customers in India 21 IDFC FIRST Bank#23New Banking App - A one Stop shop for Banking Key Features of the new App launched by us. 150.000 mode PLAN We Product Offerings IDFC FIRST Bank • Fast Payments with Beneficiary name validation ALWAYS YOU FIRST • UPI with linkage to any Bank Account 941 M • Pay to Contacts • ML based categorisation of transactions - • Income and Expense Analyser for Cash flow analysis • Instant Online Loans (pre-approved) opt www.w Poker Cens • Instant Online Credit Cards (pre-approved) P B +Urinal Search red leases In eseme Ander It's intuitive. It's intelligent. It's innovative. Experience a revolution in digital banking. and Fintech on a superior banking platform. • Ready to use virtual credit card • In app Video calling • Consolidated Investments Dashboard covering MF, Gold Bonds, Deposits, Alternate Investment Funds etc. FIRST IDFC FIRST Bank Machine leaming based transaction categorisation Income and Expense Analys Pre-approved loan atters | Personalised Offers Universal Search Invest In Mutual FundsBDepot And over 900+ banking/finance-related features, you don't want to miss! Open your power-packed Savings Account and earn up to 60% more on savings than your existing bank offering 2.75%. 1Cr 10X From Cree's Care 6Lakh POSLE 35Lakh Airport Perl dr wy Da Sean the OR code for 2174/lakh 5% p.a. • ASBA facility 2 click MF investments ETHICAL DIGITAL BANKING SOCIAL • 1 Click OD against FD • Current Account and Personal Savings Accounts access within same App with single login instant account opening 1800 419 4332 • Input and Approver management for MSME transactions 22 IDFC FIRST Bank#24Current Account Offerings Freedom Current Account Merchant Multiplier Account Startup Banking Account. Product Offerings Dynamic professional Freedom Current Account MERCHANT MULTIPLIER ACCOUNT FIRSTWINGS Startup Banking Program ETHICAL BANKING SOCIAL DYNAMIC dP! PROFESSIONAL CURRENT ACCOUNT - Free Payment and collection. Free Bulk Upload, virtual accounts, maker checker facility. CMS Solutions, free setup for UPI,QR and payment gateway. Specially designed product for retailer/merchants. Best in class digital platform Complimentary doorstep banking. Specially designed product for startups. Complimentary doorstep banking. Free NEFT,RTGS. Specially designed product for professionals - CA, Doctors etc. Flexible benefits basis multiplier of AMB maintained. No Setup Charges for UPI, QR And Payment gateway. 23 IDFC FIRST Bank#25Savings Account Offerings XXXX XXXX XXXX XXXX THRU 07/27 CARDHOLDERNA ME IDFC FIRST Bank WONIQUAL OFC FIRST SLABEC VISA X XXXX Savings Account Rs. 25,000 AMB VISA VISA Signature debit card with free & unlimited ATM cash withdrawals DFC FIRST IDFC FIRST Bank CLASSIC XXXX XXXX XX 07/27 CARDHOLDERNAMA XXXX XXXX XXXX XXXX 01/25 CARDHOLDER NAME VISA Savings Regular Rs. 10,000 AMB Savings account with VISA Classic debit card F FIRST power SAVINGS ACCOUNT Product Offerings Senior Citizen SA Lifetime free health benefits, with doorstep banking & preferential rates on deposits FIRST Power SA Segmented offering for women with special offers on Dining, Lifestyle, Healthcare & Fashion Vishesh Savings Account Savings account with a RuPay Platinum debit card Minor Savings Account NIL Average Monthly Balance requirement with linked guardian account IDFC FIRST Bank INDIVIDUAL XXXX XXXX XXXX XXXX VALID THEN 07/27 CARDHOLDERNAME VISA SIGNATURE ETHICAL BANKING SOCIAL Honour FIRST Defence Account Defence Salary Accounts for Army, Navy, Airforce, Paramilitary & Veterans Salary account with Signature Debit card Unlimited Free ATM withdrawals, Daily POS limits of Rs 6 lakhs 24 IDFC FIRST Bank#26Wealth Management - Customer Segment led Approach Brands Segmenting basis customer profile Wealth Management Solutions Campaigns, Rewards and Offers Automated Customer Lifecycle Management Digital Onboarding Product Offerings Delivery Model FIRST Private HNI & UHNI Mutual Funds, Bonds, LAS, Pre- IPO Investing, Estate - Inheritance & Succession Planning, Immigration linked Investing, Private Equity & Real Estate AIFs, Broking Services, Offshore Investment Solutions Full Scale Private Banking FIRST Wealth Affluent FIRST Select Mass Affluent Mass Classification: Confidential - Regulator Shareable Mutual Funds, Gold Bonds, Loan Against Securities, Broking Services RM Assisted Digital Goal based investing Insurance Goal based investing Insurance DIY Digital 25 IDFC FIRST Bank ETHICAL BANKING SOCIAL#27Wealth Management - Differentiated Banking & Wealth Experience Product Offerings IDFC FIRST Bank ALWAYS YOU FIRST IDFC FIRST Bank ALWAYS YOU FIRST FIRST Select FIRST Select is an enhanced banking program to make everyday banking as special as you are Relationship Banker for your banking and financial needs Superior investment solutions FIRST Wealth FIRST Wealth program brings you the best-in-league banking experience with unrivaled benefits and privileges Relationship Manager for your banking and financial needs Tailored investment solutions FIRST Private A bespoke personal banking program which brings to you an unparalleled banking experience Private Banker for your financial needs OC 40 Exclusive banking privileges with preferential rates on loans, lockers and forex FIRST Select Debit Card* with exclusive benefits LAUNCHING SOON * You can continue using your existing debit card till we send you your new FIRST Select Debit Card Superior Banking for a Select Few Exclusive banking privileges with preferential rates on loans, lockers and forex FIRST Wealth Debit Card* LAUNCHING SOON with exclusive benefits * You can continue using your existing debit card till we send you your new FIRST Wealth Debit Card An Extraordinary Banking Experience for Extraordinary Customers Classification: Confidential - Regulator Shareable Bespoke investment solutions Exclusive banking privileges with preferential rates on loans, lockers and forex FIRST Private Debit Card* LAUNCHING SOON with premium benefits * You can continue using your existing debit card till we send you your new FIRST Private Debit Card IDFC FIRST Bank ALWAYS YOU FIRST Bespoke Banking for the Exclusive ETHICAL DIGITAL BANKING SOCIAL 26 IDFC FIRST Bank#28Easy to use Wealth Management Application Product Offerings 1 9:41 Cards Deposits Investments 2 On-line Mutual Fund Investing Consolidated Investment Dashboard Curent 12,74,800 3 MF Holdings & Transaction Management 12.9% 7 4 Investor Risk Profiling Asset allocation Product distribution Award winning Digital Investing Platform A PRIVATE BANKING AWARDS 2021 ASIAMONEY Best Bank for HNW, India Your investments 22,60,000 To ganes we +60,000 ↑ 23% 21% Devenge Deld Binds 14% 42% Depos Differentiators - Asia Pacific Banking Apps Mutual funds Investment valu 14,54,43,295.25 Cument velve 7,02,88,322.14 View detala TL D START PAY LOME UT 5 6 7 6 Quant based Research Recommendations Investment Ideas for Mutual Funds Sovereign Gold Bonds IDFC FIRST Demat Account Opening Goal Based Investing wenet 22.74.600 8 00 DO Classification: Confidential - Regulator Shareable ETHICAL 10 Term Insurance Quote Comparison 11 Edit SIP Features - Pause, Change Amount & Date 27 IDFC FIRST Bank DIGITAL BANKING SOCIAL GOOD#29Launch of our Credit Card Business was based on Unique Industry First Features Customer Segments Core Value Proposition FIRST Classic Millennials Mass Household Emerging Affluent Affluent 5 FIRST Classic Product Offerings ETHICAL DIGITAL BANKING SOCIAL GOOD FIRST Millennia Millennia VISA 10 TERS 2ANK VAMILY Millennia VISA 19TE FIRST SANK FAMILY Life Time Free Credit Card Dynamic lowest interest rate starting from 9% p.a. Interest free cash withdrawals 10X rewards for higher spends Never expiring points Movie, Travel & Lounge privileges IDFC FIRST Bank Family VISA Platinum Exceptional value and classic features Uber cool looks & slick features FIRST Select FIRST Select FIRST Wealth FIRST Wealth ol *Spending over limit is usually inadvertent by customers. Hence as a customer friendly measure, the Bank will intimate the customers if their spends are going above limit to avoid any charges incurred by them. $Customer rates depending on algorithm, factoring in credentials, relationship with the bank and many other parameters IDFC FIRST BANK FAMILY VISA Signature Life's little luxuries IDFC FIRST BANK FAMILY VISA Infinite All premium features for international traveler 28 IDFC FIRST Bank#30Since Launch in Jan 2021, the Bank has issued 7+ Lac Credit Cards till March 31, 2022 A Credit Card, like no other Customer friendly card launched by the Bank, keeping in line with the ethos of always customer first. FIRST Classic FIRST Wealth FIRST Select 55 IDFC FIRST FIRST Millennia IDFC FIRST 5555555 VISA IDFC FIRST Bank Family Signature VISA Platinum FIRST Millennia VISA Platinum Product Offerings ETHICAL DIGITAL BANKING SOCIAL GOOD ✓ Since launch the Bank has issued over 0.7 million cards and that too without any intermediaries. The Credit card is loaded with customer-first features that has made it a huge hit in the market. ✓ Activation rate of 73%. 29 IDFC FIRST Bank#31Product Offerings India's FIRST FASTAG with Triple Benefits - Toll, Fuel and Parking! 30% Market Share (Average Daily Toll Value Paid) Largest Acquirer Bank in NETC 41% Market Share (Average Daily Toll Value Acquired) FIRST forward NETCH FREEg TAG EK, FAYDE IDFC FIRST Bank FIRST forward® ALWAYS YOU FIRST NETC) FREIG ANEK. FIRSTforward is India's first FASTag with toll, fuel and parking payment benefits. IDFC FIRST Bank ALWAYS YOU FIRST NOW SAVE FUEL AND TIME. Make cashless and contactless fuel payments st all HPCL and select IOCL cutlete with FIRSTforward FASTag. FIRST forward NETC) PRET IDFC FIRST Bank ALWAYS YOU FIRST NOW THERE'S ONE LESS WORRY WHILE PARKING. With cashless and contactless parking payments at select parking lots through FIRSTforward FASTag. FUEL 08.01 ETHICAL DIGITAL BANKING SOCIAL GOOD IDFC FIRST Bank Classification: Confidential - Regulator Shareable#32Product Offerings Cash Management Solutions CMS Solutions are best-in-class, technology-led, client centric customized offerings with seamless experience. Responsive to business requirements Client Centric Approach Provide Customised solutions Differentiated Offering Bringing financial & operational efficiency Sector specific solutions with product innovation at core. Extensive reach to provide unified experience across locations Enabling customers to move from physical to digital cost-effective automated solutions Simple, convenient, one channel Banking experience. Technology Led Comprehensive API banking to provide real time banking Integrated and flexible IT architecture to improve customer's experience Classification: Confidential - Regulator Shareable ETHICAL DIGITAL BANKING SOCIAL GOOD 31 IDFC FIRST Bank#33Best-in-Class Cash Management Solutions Innovative online banking platform Product Offerings Completely paperless transactions No physical documentation for any kind of payment Single-Window Experience for all transactions Unified platform for Cash, Trade, Treasury and Channel Finance Unified balance position View balances of all your bank accounts (even outside IDFC FIRST BANK) in one screen One file any payment Initiate payments across modes through single file BXP Business experience Platform Intelligent report builder - Build your Own Pick and choose the required fields required by you ETHICAL DIGITAL BANKING SOCIAL FX rates on a click First-of-its-kind User Level Functionality for blocking FX rates Online Trade regulatory reporting Online regularization of I/EDPMS and download of related data Classification: Confidential - Regulator Shareable 32 IDFC FIRST Bank GOOD#34Best-in-Class Cash Management Solutions A complete product suite Receivables Solutions Cheque/Cash m-Cheque Kiosk Walk-in (Partner Tieup) PG/POS UPI имо конече може B BHARAT BILL PAY Virtual Account NACH / eNACH UPI BBPS Collect Fastag Escrow & Liquidity Solutions Range of CMS Products 園 Escrow Structures Nodal Solutions Penny Drop API Alerts Solution eef Flexi Deposit Solutions Auto Recon Solutions 嗚 Cheque/ DD Cash Delivery Product Offerings Payment Solutions m Lo Remote Cheque Tax Payments Printing BHARAT BILL PAY ETHICAL BBPS Pay Bulk Electronic Payments Connectivity Solutions BXP (Internet Banking) Host to Host ΑΡΙ Branch Classification: Confidential - Regulator Shareable 33 WhatsApp Connect DIGITAL BANKING SOCIAL GOOD IDFC FIRST Bank#35Table of Contents Management Commentary Financial Performance Since Merger Year FY19 Key Highlights of FY22 Results IDFC FIRST Bank - History Vision and Mission of IDFC FIRST Bank Product Offerings Update on Deposits and Borrowings Update on Funded Assets Asset Quality Profitability Capital Adequacy Board of Directors Shareholding Pattern#36Update on Deposits and Borrowings As a result, the CASA Ratio (%) of the Bank has grown from 8.68% (Dec-18) at merger to 48.44% (Mar-22) 1 The Bank now has a strong and well diversified deposits base Demonstrated Capability to raise deposits CASA Deposits has grown by Rs. 45,897 crore since merger with YoY growth of 11% based on strong service levels, attractive pricing, strong brand and excellent customer first products. 2 A Since Merger : Rs. 45,897 Cr 3 Year CAGR : 86% 7,893 5,544 20,661 in Rs. crore 51.75% A Since Merger : 3,976 bps 51,170 48.44% 45,896 11.54% 11.40% 31.87% 31 Mar 18 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 18 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 The Average CASA Ratio of the Bank was 49.88% for FY22 as compared to 41.50% for FY21. 35 IDFC FIRST Bank#37Update on 3 The Bank now has a strong and well diversified deposits base Demonstrated Capability to raise deposits Core Deposits (Retail CASA & Retail Term Deposits) also shows strong improvement over the years based on strong service levels, attractive pricing, and strong brand and excellent customer first products. 4 Deposits and Borrowings Customer Deposits has grown strongly since merger. It has grown by 13% during the last year to reach Rs. 93,214 crore A Since Merger 3 year CAGR : Rs. 57,635 Cr : 73% 5,693 13,214 33,924 A Since Merger 3 year CAGR : Rs. 54,759 Cr : 32% 93,214 68,035 82,725 63,894 28,370 40,504 57,719 31 Mar 18 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Mar 18 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 36 IDFC FIRST Bank#38Strong growth in retail deposits has reduced the dependence on wholesale deposits and has provided greater stability to the liability side Update on Deposits and Borrowings In Rs. Crore Legacy Long Term Bonds Mar-21 Dec-21 Mar-22 YOY% 7,892 7,311 6,663 -16% Legacy Infra Bonds Refinance Tier II Bonds Other borrowings Total Borrowings (A) CASA Term Deposits Total Customer Deposits (B) 9,508 9,357 9,111 -4% 15,438 16,561 16,407 6% 1,500 7,618 5,749 5,701 -25% 40,456 38,978 39,382 -3% 45,896 47,859 51,170 11% 36,829 37,959 42,044 14% 82,725 85,818 93,214 13% Certificate of Deposits (C) 5,964 6,947 12,420 108% Money Market Borrowings (D) 5,330 11,814 13,580 155% Borrowings + Deposits (A)+(B)+(C)+(D) 134,475 143,557 158,597 18% CASA Ratio (%) 51.75% 51.59% 48.44% Average CASA Ratio (Yearly) 41.50% 50.54%* 49.88% * For the quarter ending Dec-21 37 IDFC FIRST Bank#39Status of Legacy High Cost Long Term Borrowing as on March 31, 2022 Bank continues to bring down the legacy high cost borrowings Update on Deposits and Borrowings Maturity In Rs. Cr Balance As on Mar-22 FY23 FY24 Rol (%) Wtd. Res. Tenor (Yrs) FY25 Beyond FY 25 Infra Bonds 9,111 1,454 1,189 5,545 922 8.87% 2.12 Long Term Legacy Bonds 6,663 0 1,660 1,306 3,697 9.04% 2.70 Other Bonds 3,539 1,934 765 150 690 8.76% 1.50 Refinance 5,867 3,053 1,884 930 0 8.05% 0.97 Total 25,181 6,442 5,499 7,931 5,309 8.71% 1.92 As we replace these high cost borrowings with our incremental cost of ~5%, it will add about ~Rs. 1,000 crore to the net interest income of the bank on an annualized basis in due course. 38 IDFC FIRST Bank#40Table of Contents Management Commentary Financial Performance Since Merger Year FY19 Key Highlights of FY22 Results IDFC FIRST Bank - History Vision and Mission of IDFC FIRST Bank Product Offerings Update on Deposits and Borrowings Update on Funded Assets Asset Quality Profitability Capital Adequacy Board of Directors Shareholding Pattern#41The Bank's Book is well diversified in large number of businesses Breakup as % of Retail and Commercial Finance Book Update on Funded Assets Others, 8% Credit Card, Consumer Loans, 18% Rural Finance, 14% HL, 15% Commercial Finance, 12% Wheels, 12% LAP, 19% ~38% of the Retail and Commercial Finance Book is secured by property as on March 31, 2022. 40 IDFC FIRST Bank#42Strong & consistent growth in Retail and Commercial Book over the last decade. Update on Funded Assets The bank has a rich history of growing the loan book in retail and commercial finance with low NPA levels of Gross and Net NPA of ~2% and 1% respectively including the experience of both institutions put together. We have developed deep expertise in this business. Retail & Commercial Book (Rs crore) 95,377 11,637 75,404 10,104 59,507 8,582 42,209 83,740 6,407 (Pre-merger) 65,300 50,925 35,802 7,693 1,185 6,508 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Retail Commercial 41 IDFC FIRST Bank#43The Bank has reduced concentration risk on the asset side since merger; Top 10 borrowers' concentration reduced significantly Update on Funded Assets 1 The non-infra corporate funded assets increased by 5% in the last year Infrastructure financing (Rs crore) has reduced by 36% in the last year 2 in Rs. crore in Rs. crore 32,155 27,039 23,207 22,499 23,676 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 3 The Bank reduced Infrastructure financing portfolio as % of total funded assets from 37% (Mar-18) to 5.2% (Mar-22) 4 36.7% 19.4% 13.9% 9.2% 5.2% 26,832 21,459 14,840 10,808 6,891 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 The Bank also proactively reduced the concentration risk by improving top 10 borrowers' concentration from 18.8% (Mar-18) to 3.7% (Mar-22) 18.8% 9.8% 7.2% 5.9% 3.7% Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 42 IDFC FIRST Bank#44Update on Funded Assets Funded Assets Breakup Funded Assets (In Rs. Crore)¹ Mar-21 Dec-21 Mar-22 Growth YoY% Retail Book - Home Loan - Loan Against Property -Wheels 65,300 75,547 83,740 28% 9,276 11,979 14,106 52% 16,491 17,351 18,142 10% 9,771 10,041 11,037 13% - Consumer Loans 13,949 15,829 17,429 25% - Rural Finance² 11,523 11,957 12,955 12% - Digital, Gold Loan and Others 3,862 6,729 8,059 109% - Credit Card 428 1,662 2,013 370% Commercial Finance³ 10,104 10,505 11,637 15% Wholesale Funded Assets - Corporate - Infrastructure - Others4 Total Funded Assets 41,723 36,167 36,574 -12% 22,499 21,647 23,676 5% 10,808 8,051 6,891 -36% 8,416 6,470 6,007 -29% 117,127 122,219 131,951 13% Note: 1. The figures above are gross of Inter-Bank Participant Certificate (IBPC) transactions. 2 Rural Finance includes funding to Self Help Groups, Kisan Credit Cards and Small Enterprise loans. 3. Commercial Finance includes Business Loans, Commercial Vehicle loans and Trade Advances. 4. Others include Security Receipts, Loan converted into Equity, PTC and RIDF. 43 IDFC FIRST Bank#45Table of Contents Management Commentary Financial Performance Since Merger Year FY19 Key Highlights of FY22 Results IDFC FIRST Bank - History Vision and Mission of IDFC FIRST Bank Product Offerings Update on Deposits and Borrowings Update on Funded Assets Asset Quality Profitability Capital Adequacy Board of Directors Shareholding Pattern#46Retail and Commercial Segment asset quality continues to improve sequentially. -GNPA NNPA 2.26% 1.06% Retail and Commercial Finance 4.01% 3.86% 3.45% 2.92% 2.63% I 1.90% 1.82% 1.66% 1.28% 1.15% Dec-19 Mar-21 Jun-21 (Pre-Covid) (Post Covid 1.0) (Covid 2.0) Sep-21 (Covid 2.0) Dec-21 (Covid 3.0) Mar-22 PCR%* 55.35% 57.53% *Includes technical write-offs 61.05% 61.37% 68.21% 69.59% Asset Quality The GNPA and NNPA of Retail and Commercial Finance has improved by 29 bps and 13 bps respectively during the quarter. The lead indicators, including improvement in cheque bounces on first presentation, collection efficiency, and recovery rates point to lower NPA and lower credit losses going forward. Based on the portfolio analysis of the key indicators, the Bank expects to reduce Gross NPA and Net NPA to pre- COVID levels. 45 IDFC FIRST Bank#47Asset Quality of Corporate book (Non-Infra) is stable GNPA NNPA 3.98% Corporate 3.08% 1.58% 1.92% 2.91% 2.85% 2.75% 2.52% 1.25% 0.84% 0.39% 0.31% Dec-19 (Pre-Covid) Mar-21 (Post Covid 1.0) Jun-21 (Covid 2.0) Sep-21 (Covid 2.0) Dec-21 Mar-22 (Covid 3.0) PCR%* 49.61% 72.32% 80.67% 87.43% 92.26% 94.50% *Includes technical write-offs Asset Quality The Book in the corporate segment has seen improvement in asset quality on a consistent basis since the spike due to COVID-19. We follow prudent underwriting, reduction of concentration risk, proper industry and customer selection processes. The PCR including technical write- offs on this segment is 94% as on March 31, 2022. 46 IDFC FIRST Bank#48NPA in Infrastructure book is high, but constituted only 5.2% of the Total Funded Assets as on March 31, 2022. Asset Quality GNPA NNPA Infrastructure 15.65% ☐% 15.83% 20.07% I I 21.64% I 11.58% 11.76% I 5.76% 9.84% 9.89% 4.69% 1.23% 1.35% Dec-19 (Pre-Covid) Mar-21 (Post Covid 1.0) Jun-21 (Covid 2.0) Sep-21 (Covid 2.0) Dec-21 (Covid 3.0) Mar-22 PCR%* 74.64% 77.66% 41.13% 41.67% 47.87% 51.73% *Includes technical write-offs book continues to Infrastructure decline as planned. The infrastructure book has shrunk from Rs. 22,710 crores at merger to just Rs. 6,891 crore. The GNPA has gone up primarily due to decline in the Infra book during the quarter. Excluding the Mumbai-based toll account, the GNPA and NNPA of the Infrastructure Finance would be 9.70% and 1.62% respectively with Provision coverage Ratio of 84.6%. 47 IDFC FIRST Bank#49Overall Asset quality (retail + commercial + wholesale) of the bank continues to improve every quarter Asset Quality -GNPA NNPA At Bank Level 4.61% 4.15% 2.83% 1.23% 4.27% 3.96% 3.70% 2.32% 2.09% 1.86% 1.74% 1.53% Dec-19 Mar-21 (Pre-Covid) (Post Covid 1.0) Jun-21 (Covid 2.0) Sep-21 (Covid 2.0) Dec-21 (Covid 3.0) Mar-22 PCR%* 58.14% 63.57% *Includes technical write-offs 61.06% 63.00% 67.16% 70.29% • The Asset Quality of the Bank has improved as compared to last quarter driven by the improvements in retail, commercial and corporate segments. • PCR of the Bank excluding technical write-offs improved by 331 bps to 59.54% as on March 31, 2022 as compared to 56.23% as on March 31, 2021. • PCR including technical write-offs and excluding one large legacy road infrastructure account (toll) which moved to NPA in Q1-FY22 was at 77% as on March 31, 2022 • Without the one legacy infrastructure (toll) NPA account as mentioned earlier, the GNPA and NNPA would have been 3.04% and 1.02% 48 IDFC FIRST Bank#50In retail loans, key input Indicators are showing improvement, which points to lower delinquency and credit losses in future. Asset Quality The bank has Improved quality of Sourcing as a result, New to Credit customers as % incremental bookings have reduced from 17% to 9%, indicating improved quality. 17% 16% 13% 12% 10% 10% 9% Similarly, the Customers having Bureau score > 700 has sharply improved from 61% to 85%. 83% 84% 85% 80% 68% 61% 60% Jan'19 to Jul'19 to Jan'20 to Jul'20 to Jan'21 to Jul'21 to Jan'22 to Jun'19 Dec'19 Jun'20 Dec'20 Jun'21 Dec'21 Mar'22 Jan'19 to Jul'19 to Jan'20 to Jul'20 to Jan'21 to Jul'21 to Jan'22 to Jun'19 Dec'19 Jun'20 Dec'20 Jun'21 Dec'21 Mar'22 49 IDFC FIRST Bank#512.53 Improved indicators of Credit Quality in retail loans Asset Quality The Bank tracks its Asset Quality on a) Cheque Bounces on Portfolio b) Cheque bounces on new book c) collection on Cheque Bounces d) Recovery on NPA accounts e) Vintage Analysis of the Book Key quality Indicators showing improvement which points to lower delinquency and credit losses in future. We are improving on all these points. The Bank is confident of meeting the guidance of 2:1:2, i.e. 2% GNPA, 1% NNPA and 2% of Credit Loss, in due course. Early Bucket cheque Bounce Rates (on Principal Outstanding) is back to Pre-Covid (Mar-20) Levels (x) for urban retail. Early Bucket Collection Efficiency (urban retail) has surpassed pre COVID levels (Feb 2020). 1.16 1.18 1.12 1.00 1.01 0.96 Mar-20 Sep-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Feb-20 Moratoorium Sep-20 Dec-20 98.9% 89.2% Mar-21 Jun-21 99.0% 98.6% 99.4% 99.5% 99.6% 97.5% Sep-21 Dec-21 50 IDFC FIRST Bank Mar-22#52Table of Contents Management Commentary Financial Performance Since Merger Year FY19 Key Highlights of FY22 Results IDFC FIRST Bank - History Vision and Mission of IDFC FIRST Bank Product Offerings Update on Deposits and Borrowings Update on Funded Assets Asset Quality Profitability Capital Adequacy Board of Directors Shareholding Pattern#53Strong rise in Net Interest Income Yearly NII (Rs. Cr) Exit Quarter NII (Rs. Cr) 3Yr CAGR of 25% 3Yr CAGR of 31% 32% 32% YoY Growth 9,706 36% YoY Growth 21% 25% 7,380 -2% 6,076 4,845 FY19* FY20 FY21 FY22 * H2-FY19 actual annualized 1,223 1,193 Profitability 36% 2,669 15% 42% レ 1,960 1,700 Q3-FY19** Q4-FY19 Q4-FY20 Q4-FY21 Q4-FY22 ** Merger Quarter 52 IDFC FIRST Bank#54Sustained growth in Fee & Other Income Yearly Fee & Other Income (Rs. Cr) 3Yr CAGR of 32% 66% YoY Growth 1% 33% 1,167 1,550 FY19* FY20 * H2-FY19 actual annualized 1,622 Profitability Exit Quarter Fee & Other Income (Rs. Cr) 3Yr CAGR of 40% 40% 66% 841 2,691 40% YoY Growth 39% FY21 FY22 39% 14% 432 310 272 600 Q3-FY19** Q4-FY19 Q4-FY20 Q4-FY21 Q4-FY22 ** Merger Quarter 53 IDFC FIRST Bank#55Sustained increase in Core Operating Profit (Profit excluding Trading Gain) Yearly Operating Profit (excluding Trading Gain) 3Yr CAGR of 36% 44% YoY Growth (Rs. Cr) 1,105 FY19* 8% 60% 1,909 1,764 44% 2,753 FY20 FY21 FY22 * H2-FY19 actual annualized Profitability Exit Quarter Operating Profit (excluding Trading Gain) (Rs. Cr) 3Yr CAGR of 45% 106% YoY Growth 276 275 Q3-FY19** ** Merger Quarter -13% 70% 468 405 106% ཌརའ་༩ 836 Q4-FY19 Q4-FY20 Q4-FY21 Q4-FY22 54 IDFC FIRST Bank#56Quarterly Income Statement Profitability Growth (%) In Rs. Crore Q4 FY21 Q3 FY22 Q4 FY22 YOY Interest Income Interest Expense Net Interest Income Fee & Other Income 3,993 4,429 4,554 14% 2,033 1,849 1,884 -7% 1,960 2,580 2,669 36% 600 744 841 40% Trading Gain¹ 218 25 (9) -104% Operating Income 2,779 3,349 3,500 26% Operating Income (Excl Trading Gain) 2,561 3,324 3,510 37% Operating Expense 2,156 2,579 2,674 24% Operating Profit (PPOP) 623 770 827 33% Operating Profit (Ex. Trading gain) 405 745 836 106% Provisions¹ 580 392 369 -36% Profit Before Tax 43 378 457 960% Tax (85) 97 114 -235% Profit After Tax 128 281 343 168% 1. As per the RBI guidelines dated 30th Aug, 2021, provisions/write-back for mark-to market depreciation on investments in AFS and HFT has been classified under "Other Income", prior period numbers are reclassed accordingly 55 IDFC FIRST Bank#57Yearly Income Statement Profitability In Rs. Crore Growth (%) FY21 FY22 YOY Interest Income Interest Expense Net Interest Income Fee & Other Income 15,968 17,173 8% 8,588 7,467 -13% 7,380 9,706 32% 1,622 2,691 66% Trading Gain¹ 1,1622 531 -54% Operating Income 10,164 12,928 27% Operating Income (Excl Trading Gain) 9,002 12,397 38% Operating Expense 7,093 9,644 36% Operating Profit (PPOP) 3,071 3,284 7% Operating Profit (Ex. Trading gain) 1,909 2,753 44% Provisions¹ 2,5952 3,109 20% Profit Before Tax 476 175 -63% Tax 24 30 26% Profit After Tax 452 145 -68% 1. 2. As per the RBI guidelines dated 30th Aug, 2021, provisions/write-back for mark-to market depreciation on investments in AFS and HFT has been classified under "Other Income", prior period numbers are reclassed accordingly During FY21, there was a provision release of Rs. 573 crore on account of sale of investments in two large financial institutions, resulting into an equivalent amount of loss, the provisions and the Trading Gain for FY21 mentioned above are gross of these transactions. 56 IDFC FIRST Bank#58Balance Sheet Profitability Growth (%) In Rs. Crore Shareholders' Funds Deposits - CASA Deposits Mar-21 Dec-21 Mar-22 (YoY) 17,808 20,649 21,003 18% 88,688 92,765 105,634 19% 45,896 47,859 51,170 11% -Term Deposits 42,792 44,906 54,464 27% Borrowings 45,786 50,792 52,963 16% Other liabilities and provisions 10,861 10,027 10,581 -3% Total Liabilities 163,144 174,232 190,182 17% Cash and Balances with Banks and RBI 5,828 17,567 15,758 170% Net Funded Assets 111,758 116,422 124,075 11% - Net Retail Funded Assets 73,812 83,837 91,093 23% - Net Wholesale Funded Assets* 37,946 32,585 32,983 -13% Investments 36,719 31,550 41,544 13% Fixed Assets 1,266 1,333 1,361 7% Other Assets 7,572 7,360 7,443 -2% Total Assets 163,144 174,232 190,182 17% *includes credit investments (Non-Convertible Debentures, RIDF, PTC, SRS and Loan Converted into Equity) 57 IDFC FIRST Bank#59Table of Contents Management Commentary Financial Performance Since Merger Year FY19 Key Highlights of FY22 Results IDFC FIRST Bank - History Vision and Mission of IDFC FIRST Bank Product Offerings Update on Deposits and Borrowings Update on Funded Assets Asset Quality Profitability Capital Adequacy Board of Directors Shareholding Pattern#60Capital Adequacy Capital Adequacy Ratio is strong at 16.74% as on March 31, 2022 In Rs. Crore Common Equity Tier 2 Capital Funds Total Capital Funds Total RWA CET 1 Ratio (%) Mar-21 Dec-21 Mar-22 16,974 19,921 20,199 647 740 2,525 17,622 20,661 22,724 1,27,943 1,34,296 1,35,728 13.27% 14.83% 14.88% 13.77% 15.38% 16.74% Total CRAR (%) • The Bank is sufficiently capitalized and well above the regulatory requirement for Capital Adequacy Ratio of 11.5% • During Q4 FY22, the Bank mobilised maiden Tier II Bonds of Rs. 1,500 crore. 59 IDFC FIRST Bank#61Table of Contents Management Commentary Financial Performance Since Merger Year FY19 Key Highlights of FY22 Results IDFC FIRST Bank - History Vision and Mission of IDFC FIRST Bank Product Offerings Update on Deposits and Borrowings Update on Funded Assets Asset Quality Profitability Capital Adequacy Board of Directors Shareholding Pattern#62Board of Directors: MD & CEO Profile Board of Directors Vaidyanathan aspires to create "a world-class bank Indian Bank which offers high-quality affordable and ethical banking for India". He left a Board level position at ICICI group in 2010 and bought shares of a small listed, loss making, real-estate financing NBFC with market cap of Rs. 780 crores. He did so by borrowing Rs. 78 crore, which he raised by pledging the purchased stock and his home as collateral for the leveraged buyout. He changed the business model to financing micro and small entrepreneurs by use of technology with ticket sizes of $100-$100K, and raised fresh PE backed equity by demonstrating the proof of concept to investors. He renamed the company Capital First and became its Chairman and CEO. He then turned the company around from losses of Rs. 30 crores ($5m, 2010) to profit of Rs. 358 crore ($ 50m, 2018). The share price of Capital First rose from Rs. 122 (2010) to Rs. 850 (2018) and the market cap increased >10 times from Rs. 780 crores ($120 m, 2010) to Rs. 8200 crores ($1.2 b, 2018). Per stock exchange filings, he bought the NBFC shares at Rs. 162 through leverage, and sold part of his holdings at Rs. 688 in 2017 to close the loan availed to purchase the shares. Capital First's retail loan grew from Rs. 94 crores ($14m, 2010) to Rs. 29,600 crores ($4 b, 2018) with 7 million customers. Having built Capital First to scale, he looked out for a commercial banking license to convert it to a Bank. In 2018, opportunity struck in the form of an offer for merger from IDFC Bank. Post the merger, and took over as the MD and CEO of the merged bank, renamed IDFC First Bank. Since then he has increased retail and commercial finance book to Rs. 95,377 crores, increased NIM from 2.9% at merger to 6.3%, increased CASA from 8.7% to 48.4%, and turned the bank into profitability. The vision of IDFC First Bank is "To build a world class bank in India, guided by ethics, powered by technology and be a force for social good." Earlier, Vaidyanathan worked with Citibank from 1990-2000. He joined ICICI Group in 2000 and set up its retail banking business since inception, took the branch network to 1411, built a large CASA book, and built retail lending including mortgages, auto loans, and credit cards of Rs. 1.35 trillion ($30 bn) by 2009. He joined the Board of ICICI Bank in 2006 at age 38 and became MD and CEO of ICICI Prudential Life Insurance Company at 41. He has received many domestic and international awards notably CNBC Awaaz "Entrepreneur of the Year" 2020, "Most Inspirational Leveraged Management Buyout, India 2018" by CFI Awards, London, CNBC Asia's "Most Innovative Company of the Year" 2017, "Entrepreneur of the Year" at Asia Pacific Entrepreneurship Award 2016 & 2017, "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, Dun & Bradstreet India's Top 500 Companies & Corporates 2016 & 2015, "Outstanding contribution to Financial Inclusion, India, 2017" from Capital Finance, London, "Most Promising Business Leaders of Asia" 2016 by Economic Times. He is an alumnus of Birla Institute of Technology and Harvard Business School (Advanced Management Program). He has run 23 half-marathons and 8 full marathons. 61#63Board of Directors Board of Directors MR. SANJEEB CHAUDHURI - PART-TIME NON-EXECUTIVE CHAIRPERSON (INDEPENDENT DIRECTOR) Mr. Sanjeeb Chaudhuri is a Board member and Advisor to global organizations across Europe, the US and Asia. He has most recently been Regional Business Head for India and South Asia for Retail, Commercial and Private Banking and also Global Head of Brand and Chief Marketing Officer at Standard Chartered Bank. Prior to this, he was CEO for Retail and Commercial Banking for Citigroup, Europe, Middle East and Africa. He is an MBA in Marketing and has completed an Advanced Management Program. MR. AASHISH KAMAT - INDEPENDENT DIRECTOR Mr. Aashish Kamat has over 32 years of experience in the corporate world, with 24 years being in banking & financial services & 6 years in public accounting. He was the Country Head for UBS India, from 2012 until his retirement in January 2018. Prior to that he was the Regional COO/CFO for Asia Pacific at JP Morgan based out of Hong Kong. Before moving to Hong Kong, he was in New York, where is was the Global Controller for the Investment Bank (IB) at JP Morgan in New York; & at Bank of America as the Global CFO for the IB, and, Consumer and Mortgage Products. Mr. Kamat started his career with Coopers & Lybrand, a public accounting firm, in 1988 before he joined JP Morgan in 1994. DR. (MRS.) BRINDA JAGIRDAR - INDEPENDENT DIRECTOR Dr. (Mrs.) Brinda Jagirdar, is an independent consulting economist with specialization in areas relating to the Indian economy and financial intermediation. She is on the Governing Council of Treasury Elite, a knowledge sharing platform for finance and treasury professionals. She retired as General Manager and Chief Economist, SBI, based at its Corporate Office in Mumbai. She has a brilliant academic record, with a Ph.D. in Economics from the Department of Economics, University of Mumbai, M.S. in Economics from the University of California at Davis, USA, M.A. in Economics from Gokhale Institute of Politics and Economics, Pune and B.A. in Economics from Fergusson College, Pune. She has attended an Executive Programme at the Kennedy School of Government, Harvard University, USA and a leadership programme at IIM Lucknow. Classification: Internal - Vendor Shareable 62 IDFC FIRST Bank#64Board of Directors Board of Directors MR. HEMANG RAJA - INDEPENDENT DIRECTOR Mr. Hemang Raja, is an MBA from Abeline Christian University, Texas, with a major in finance. He has also done an Advance Management Program (AMP) from Oxford University, UK. He has vast experience in the areas of Private Equity, Fund Management and Capital Markets in companies like Credit Suisse and Asia Growth Capital Advisers in India as MD and Head - India. He has served on the executive committee of the board of the National Stock Exchange of India Limited; also served as a member of the Corporate Governance Committee of the BSE Limited. MR. PRAVIR VOHRA - INDEPENDENT DIRECTOR Mr. Pravir Vohra is a postgraduate in Economics from St. Stephen's College, University of Delhi & a Certified Associate of the Indian Institute of Bankers. He began his career in banking with SBI where he worked for over 23 years. He held various senior level positions in business as well as technology within the bank, both in India & abroad. The late 1990s saw Mr. Vohra as Vice President in charge of the Corporate Services group at Times Bank Ltd. In January 2000, he moved to the ICICI Bank group where he headed a number of functions like the Retail Technology Group & Technology Management Group. From 2005 till 2012 he was the President and Group CTO at ICICI Bank. MR. S GANESH KUMAR - INDEPENDENT DIRECTOR Mr. S Ganesh Kumar was the Executive Director of the Reserve Bank of India. He was with the Reserve Bank of India for more than three decades. His most recent responsibilities included the entire gamut of Payment and Settlement Systems, creation and development of strategic plans for the Bank and to take care of the external investments and manage the foreign exchange reserves with the central bank. Mr. Kumar is a post graduate in Management having experience in varied fields such as marketing, market research, banking, finance, law, and Information Technology. Classification: Internal - Vendor Shareable 63 IDFC FIRST Bank#65Board of Directors Board of Directors MR. AJAY SONDHI - NON-EXECUTIVE NON INDEPENDENT DIRECTOR Mr. Ajay Sondhi, is a 2017 Fellow, Harvard Advanced Leadership Initiative, MBA - Finance from JBIMS, Mumbai University, and B.A. in Economics (Honors) from St. Stephens College, Delhi University. He is a seasoned Financial Services and Board professional with extensive Indian and global experience. Most recently he was Founder & CEO of Sentinel Advisors Pte Ltd, Singapore, a boutique business and strategy advisory firm. He was previously MD and Regional Manager for PWM at Goldman Sachs, Singapore. He has had a long career in banking, and has held several senior leadership roles in the industry in India and overseas. DR. JAIMINI BHAGWATI - NON-EXECUTIVE NON INDEPENDENT DIRECTOR Dr. Jaimini Bhagwati is a former IFS officer, economist and foreign policy expert. He received his PhD in Finance from Tufts University, USA. He did his Master's in Physics from St Stephen's College, Delhi and a Master's in Finance from the Massachusetts Institute of Technology, USA. He was the High Commissioner to the UK and Ambassador to the European Union, Belgium and Luxembourg. Dr. Bhagwati has served in senior positions in the Government of India, including in foreign affairs, finance and atomic energy. In his earlier role at the World Bank, he was a specialist in international bond and derivatives markets and was the RBI chair professor at ICRIER. He is currently a Distinguished Fellow at a Delhi based think-tank called the Centre for Social and Economic Progress (CSEP). MR. VISHAL MAHADEVIA - NON-EXECUTIVE NON INDEPENDENT DIRECTOR Mr. Vishal Mahadevia joined Warburg Pincus in 2006 & is a member of the firm's executive management group. Previously, he was a Principal at Greenbriar Equity Group, a fund focused on private equity investments in the transportation sector. Prior to that, Mr. Mahadevia worked at Three Cities Research, a New York-based PE fund, & as a consultant with McKinsey & Company. He received a B.S. in economics with a concentration in finance & B.S. in electrical engineering from the University of Pennsylvania. Classification: Internal - Vendor Shareable 64 IDFC FIRST Bank#66Table of Contents Management Commentary Financial Performance Since Merger Year FY19 Key Highlights of FY22 Results IDFC FIRST Bank - History Vision and Mission of IDFC FIRST Bank Product Offerings Update on Deposits and Borrowings Update on Funded Assets Asset Quality Profitability Capital Adequacy Board of Directors Shareholding Pattern#67Shareholding Pattern Shareholding Pattern & Key Shareholders as of March 31, 2022 Scrip Name IDFC FIRST Bank (BSE: 539437, NSE:IDFCFIRSTB) Key Shareholders (through their respective various funds and affiliate companies wherever applicable) President of India, 4.2% Public (Incl. NRIs), 26.7% MF/Insurance/Ba nk/AIF/FI, 9.6% Other Body Corporate, 1.0% Trusts and Clearing Members, 0.9% Promoters, 36.5% % Holding IDFC Financial Holding Company Limited 36.49 Warburg Pincus through its affiliated entities 9.07 President of India 4.20 Odyssey 44 3.68 ICICI Prudential Life Insurance 3.30 Vanguard 1.76 Bajaj Allianz Life Insurance 1.20 Baillie Gifford Kotak MF Ishares Aditya Birla MF Nippon MF 0.95 0.87 0.73 0.60 0.52 FII/FPI/Foreign Corporate, 21.1% Total # of shares as of March 31, 2022: 621.77 Cr Book Value per Share as of March 31, 2022: Rs. 33.78 Market Cap. as on March 31, 2022: Rs. 24,684 Crore On a fully diluted basis, including shares and options, Mr. Vaidyanathan holds 2.25% of the equity of the Bank including shares held in his social welfare trust. 66 IDFC FIRST Bank#68IDFC FIRST Bank With our Customer Centric Approach, the Bank is ✓ Set for Growth. ✓ Set for Scale. ✓ Set for Profitability. ETHICAL DIGITAL F BANKING SOCIAL * GOOD 67 IDFC FIRST Bank#69Disclaimer 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. IDFC FIRST Bank#70GANT ווי THANK YOU IDFC FIRST Bank#71Annexure 1 Progress of Key Parameters against the Target Set after merger in December 2018 70 IDFC FIRST Bank#72CAPITAL We are happy to say that the Bank is performing well on the guidances given at the time of the merger. Net-worth CET 1 Ratio - Capital Adequacy (%) CASA Deposits CASA as a % of Deposits (%) Particulars A Average CASA Ratio (%) B I Branches (#) L I CASA + Term Deposits<5 crore (% of Customer Deposits) T | Certificate of Deposits E S Quarterly Avg. LCR (%) Executive Summary for FY22 Dec-18 Guidance for FY24-FY25 (At Merger) Mar-22 Latest quarter Rs. 18,376 Cr Rs. 21,003 Cr 16.14% 16.51% Rs. 5,274 Cr >12.5% >13.0 % -- 8.68% 30% (FY24), 50% thereafter 8.39% 206 800-900 39% 85% 17% <10% of liabilities 123% Some new guidance has been included for greater clarity. No guidance given at the time of the merger has been amended No guidance provided earlier for these parameters >110% 14.88% 16.74% Rs. 51,170 Cr 48.44% 49.28% 641 84% 8% 136% 71 IDFC FIRST Bank#73We are happy to say that the Bank is performing well on the guidance given at the time of the merger. Executive Summary for FY22 Particulars Dec-18 (At merger) Guidance for FY24-FY25 Retail and Commercial Book Rs. 36,927 Cr Rs. 100,000 Cr Mar-22 Latest quarter Rs. 95,377 Cr (26%) Retail and Commercial Book as a % of Total Funded Assets 35% 70% 72% Wholesale Funded Assets¹ Rs. 56,770 Cr < Rs. 40,000 Cr Rs. 30,567 Cr (-8%) ASSETS A - of which Infrastructure loans Rs. 22,710 Cr EARNINGS Top 10 borrowers as % of Total Funded Assets (%) GNPA (%) NNPA (%) Provision Coverage Ratio³ (%) Net Interest Margin (%) Cost to Income Ratio² (%) Return on Asset (%) Return on Equity (%) 12.8% Nil in 5 years < 5% Rs. 6,891 Cr (-36%) 3.7% 1.97% 2-2.5% 3.70% 0.95% 1.1.2% 1.53% 53% ~70% 70% 3.10% 5-5.5% 6.27% 81.56% 55% 76.18% -3.70% 1.4-1.6% 0.77% -36.81% 13-15% 6.67% 1. Excluding Security Receipts, Loan converted into Equity, RIDF and PTC. 2. Excluding Trading Gains 3. Including technical write-offs. Earnings for Dec-18 and Mar-22 are for the quarter. () brackets represent YoY growth. Retail and Commercial Book and Wholesale Funded assets are Gross of Inter Bank Participation Certificate. 72 IDFC FIRST Bank#74Annexure 2 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. 73 IDFC FIRST Bank#75Successful Trajectory of Growth and Profits at Capital First History of Capital First Limited Business Model of Capital First The Company was first listed on Stock Exchanges in January 2008. Between 2010 to 2012, Mr Vaidyanathan acquired a stake in the company and executed a Management Buyout (MBO) of the Company with equity backing of Rs. 810 crore from Warburg Pincus, and created a new brand and entity called Capital First. As part of the MBO, the company raised fresh equity, reconstituted a new Board and got new shareholders, including open offer to public. A brief history of the company is as follows: 2008-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 The Company was largely in the business of Wholesale Financing, PE, Asset Management, Foreign Exchange and Retail Equity Broking. The total AUM of the Company was Rs. 935 crore of which Retail AUM was 10%, Rs. 94 crore. Mr. V Vaidyanathan joined the Company and prepared the ground for executing a Management Buyout by taking significant corporate actions including divesting Forex JV to JV partner, merging a subsidiary NBFC with itself, by winding down other non core businesses and launching retail businesses in the Company. The Company launched technology driven financial businesses for the consumer and SME segments. The Retail loan book crossed Rs. 700 crore by March 2011. The Company presented this as proof of concept to many global private equity players for Buyout. The company continued to present the concept to prospective PE players throughout the year. The Company undertook additional corporate actions and further wound down non-core business subsidiaries and launched more retail financing businesses. The concept, model and volume of retail financing businesses gained traction and reached to Rs. 3,660 crore, 44% of the overall AUM. Mr. Vaidyanathan secured equity backing of Rs. 810 crore from Warburg Pincus for an MBO and thus Capital First was founded. As part of the transaction an open offer was launched, the Company raised Rs. 100 crore of fresh equity capital, a new Board was reconstituted and a new brand and entity "Capital First" was created. The Company further raised Rs. 178 crore as fresh equity at Rs. 153/ share. It acquired HFC license from NHB and launched housing finance business under its wholly owned subsidiary. Company's Assets under Management reached Rs. ~12,000 crore and the number of customers financed since inception crossed 10 lacs. The Company raised Rs. 300 crore through QIP at Rs. 390 per share from marquee foreign and domestic investors. The Company received recognition as "Business Today - India's most Valuable Companies 2015" and "Dun & Bradstreet - India's top 500 Companies, 2015". The Company scrip was included in S&P BSE 500 Index. Company's Assets under Management reached Rs. 20,000 crore and the number of customers financed since inception crossed 4.0 million. The Company raised fresh equity capital of Rs. 340 crore from GIC, Singapore through preferential allotment @ Rs. 712 per share. The Company received recognition as "CNBC Asia Innovative Company of the Year, IBLA, 2017", "Economic Times - 500 India's Future Ready Companies 2016" and "Fortune India's Next 500 Companies, 2016". The Company's Asset Under Management touch ~Rs. 27,000 crore and number of customers financed crossed 6.0 million. The Company received "Best BFSI Brand Award 2018" at The Economic Times Best BFSI Brand Awards 2018 and "Financial Services Company of the Year 2018" at VC Circle Awards 2018. In January 2018, the Company announced the merger with IDFC Bank subject to regulatory approvals. 74 IDFC FIRST Bank#76Successful 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. From 31-March-2010 to 31-Mar-2018, the company has transformed across all key parameters including: Business Model of Capital First • The total Capital has grown from Rs. 691 crore to Rs. 3,993 crore 8-Yr CAGR % % Growth - FY18 • The Assets under Management increased from Rs. 935 crore to Rs. 26,997 crore Total Capital 25% 17% • The Retail Assets Under Management increased from Rs. 94 crore to Rs. 25,243 crore . The long term credit rating has upgraded Total AUM 52% 36% • The number of lenders increased Retail AUM 101% 38% • The Gross NPA reduced • The Net NPA reduced • Cumulative customers financed reached • The Net Profit/(Loss) increased from A+ to AAA from 5 to 297 from 5.28% to 1.62% from 3.78% to 1.00% over 7 million from loss of Rs. 32.2 crore in FY 09 to Profit of Rs. 327.4 crore (FY18) The 5 year CAGR for key parameters are as follows: Total Asset Under Management has grown at a CAGR of O Total Income has grown at a CAGR of Profit After Tax has grown at a CAGR of Earning Per Share has grown at a CAGR of 29% from Rs. 7,510 crore (FY13) to Rs. 26,997 crore (FY18) 47% from Rs. 357.5 crore (FY13) to Rs. 2429.6 crore (FY18) 56% from Rs. 35.1 crore (FY13) to Rs. 327.4 crore (FY18) 46% from Rs. 4.94 (FY13) to Rs. 33.04 (FY18) 75 IDFC FIRST Bank#77Successful 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. Business Model of Capital First 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. 128% 115% ~ 70-80% Cost to Income ratio (%) 78% 80% 72% 74% 71% < 50% 59% 53% 51% 51% 48% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 H1-FY19 76 IDFC FIRST Bank#78Capital 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. Business Model of Capital First All figures are annualised Raised Rs. 178 crore (Pref) in Q4-FY14 Raised Rs. 300 crore (QIP) in Q4-FY15 8.33% 4.93% FY15 FY14 11.09% 4.15% 2.96% 2.28% Q1 FY14 7.02% 10.29% 9.58% 8.89% 8.32% 10.14% FY16 11.20% 10.68% 10.08% *Highlighted figures are based on Indian AS in comparison to quarterly figures for earlier periods based on Indian GAAP. 11.39% Raised Rs. 350 crore (Pref) in Q3-FY17 13.31% FY18 11.93% FY17 12 87% 12.49% 12.10% 11.46% 14.51% H1-FY18 14.82% 14.47% 14.46% 14.08% 13.06% 77 Q2 FY19* IDFC FIRST Bank#79Successful 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. Business Model of Capital First 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%) 1,174 31-Mar-10 Market Capitalization (Rs. crore) 1,478 1,152 902 782* 31-Mar-11 31-Mar-12 31-Mar-13 1000% growth 3,937 3,634 8,282# 7,628 Post-Merger Announcement 6,096 31-Mar-14 31-Mar-15 31-Mar-16 31-Mar-17 12-Jan-18 31-Mar-18 * 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). 78 IDFC FIRST Bank