IDFC FIRST Bank: Quarterly Income and Business Overview

• Section 4: Continuous improvement in Retail Loan Underwriting over the years The first step in disbursing retail loans is credit policy and underwriting. Even prior to arrival of Covid-19, the bank has been continuously improving its credit underwriting based on experience by tightening its underwriting policy filters. This has resulted in increased percentage of customers who have credit track record on the credit bureau. In Q4 FY19, 83% of loan bookings done by the bank (by value) had a credit bureau record, and 17% were new to credit customers. As a result of continuous improvement in underwriting, in Q4 FY21, only 10% customers disbursed are new to credit customers. Retail Loan Disbursal: Customers (by Value) with Credit Bureau Record as % of total Retail Disbursals Retail Loan Disbursals: Customers (by Value) with Credit Bureau Score of more than 700 as % of total Retail Disbursals 91% 90% 85% 89% 89% 80% 83% 81% 78% 87% 87% 85% 85% 75% 85% 84% 83% 83% 82% 70% 68% 65% 81% 65% 62% 79% 60% 60% 60% 77% 60% 77% 75% 55% Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Section 4: Assets Quality 42 IDFC FIRST Bank

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