#1Investor Presentation Q3 FY 12 FEDERAL BANK LEDEKY BYUK FEDERAL BANK YOUR PERFECT BANKING PARTNER#2Performance Highlights Profitability Measure ROA Shareholder Value Measure ROE Efficiency Measure COST-INCOME Risk Appetite Measure NET NPA% Q3 FY 11 Q2 FY 12 Q3 FY 12 14.29 14.56 11.37 0.81 0.74 0.58 2 1.30 1.44 1.41 38.91 37.30 37.13 FEDERAL BANK YOUR PERFECT BANKING PARTNER#3Financial Highlights Q3 FY 11 V/S Q3 FY 12 ☐ Net Profit at Rs 201.87 Cr (up by 41.07%) ☐ Other Income gone up to Rs 137.93 Cr (up by 13.34%) ☐ Total income increased to Rs 1604.76 Cr (up by 40.33%) ☐ Operating profit improved to Rs 418.72 Cr (up by 17.39%) ☐ NIM at 3.94% (4.31%) ☐ EPS at Rs 47.21 (33.47) ☐ Net NPA at 0.74% (0.81%) ☐ BV per Share at Rs 330.19 (298.53) ☐ ROA at 1.41% (1.30) ☐ ROE at 14.56% (11.37) ☐ Cost to Income decreased to 37.13% (37.30) ☐ Capital Adequacy Ratio at 15.91% 3 FEDERAL BANK YOUR PERFECT BANKING PARTNER#4Business Growth Deposits 46742 26.63% DEPOSIT CASA 13186 21.97% GROWTH Retail Deposits 38678 27.25% NRE Deposits 7375 31.78% Rs in Cr Net Advance 33206 17.59% SME Advance 9863 6.23% CREDIT GROWTH Retail Advance 9870 10.37% Corporate Credit 14571 33.40% 4 FEDERAL BANK YOUR PERFECT BANKING PARTNER#5Key Financials Rs in Cr Q3 FY 11 Q2 FY 12 Q3 FY 12 Y-o-Y Interest Income 1021.88 1367.83 1466.83 43.54% Interest Expenses 574.63 893.42 938.80 63.37% Net Interest Income 447.25 474.41 528.03 18.06% Other Income 121.69 116.96 137.93 13.34% Total Income 1143.57 1484.79 1604.76 40.33% Total Expenditure 786.86 1123.52 1186.04 50.73% Operating Profit 356.71 361.27 418.72 17.39% Net Profit 143.10 191.16 201.87 41.07% Net Interest Margin (%) 4.31 3.77 3.94 -8.48% Cost to Income Ratio (%) 37.30 38.91 37.13 -0.48% 5 FEDERAL BANK YOUR PERFECT BANKING PARTNER#6Balance Sheet Rs in Cr Q3 FY 11 Q2 FY 12 Q3 FY 12 LIABILITIES Capital 171.03 171.05 171.05 Reserves & Surplus 4934.77 5274.93 5476.81 Deposits 36913.53 47263.46 46742.46 Borrowings 2166.13 2926.15 3030.22 Other Liabilities & Provisions 1984.03 2067.95 2550.51 TOTAL 46169.49 57703.54 57971.05 ASSETS Cash & Balance with RBI 2790.49 3378.33 3256.40 Bal. with banks & money at call 642.41 295.91 918.11 Investments 13146.84 18798.11 18644.60 Advances 28240.02 33606.69 33206.07 Fixed Assets 287.07 289.23 307.67 Other Assets 1062.66 1335.27 1638.20 TOTAL 46169.49 57703.54 57971.05 6 FEDERAL BANK YOUR PERFECT BANKING PARTNER#7Profit & Income Growth Q3 FY 11 Q3 FY 12 201.87 143.1 568.94 528.03 447.25 418.72 356.71 137.93 121.69 665.96 Net Profit Opearting Profit Other Income Net Interest Income Total Income* *Total Income = Other Income + Net Interest Income 7 Rs in Cr FEDERAL BANK YOUR PERFECT BANKING PARTNER#8Core Business Portfolio Advance ■Deposit 28,240 36,914 Q3 FY 11 Q2 FY 12 8 33,607 47,263 33,206 46,742 Q3 FY 12 FEDERAL BANK YOUR PERFECT BANKING PARTNER Rs in Cr#9Deposit Growth Q3 FY 11 8842.52 Q3 FY 12 11101.61 Rs in Cr Savings Deposits Demand Deposits High Value Deposits Other Term Deposits Total Deposits Constitution of Total Business 2096.24 2295.16 6247.76 7873.40 19727.01 25472.29 36913.53 46742.46 ■ CASA 54% 29% ■ HIGH VALUE ■ OTHER TERM DEPOSIT 17% FEDERAL BANK 9 YOUR PERFECT BANKING PARTNER#10Deposit Growth - Retail ■ Q3 FY 11 ■ Q3 FY 12 8843 11102 7375 5596 2295 2096 30395 38678 Savings Deposits Demand Deposits NRE Deposits Retail Deposit 10 Rs in Cr FEDERAL BANK YOUR PERFECT BANKING PARTNER#11Deposit Composition SB ■CD ■ Others RETAIL DEPOSIT 8842.52 2295.16 2096.24 19455.8 LOW COST DEPOSIT 1382.05 998.95 11101.61 25281.39 Rs in Cr ■NRE TD ■FCAB 1125.13 1552.24 ■CASA 13186.04 10810.81 Q3 FY 11 Q3 FY 12 Q3 FY 11 Q3 FY 12 11 FEDERAL BANK YOUR PERFECT BANKING PARTNER#12Credit Growth LARGE CORPORATE ADVANCE SME ADVANCE RETAIL ADVANCE GROSS ADVANCE Rs in Cr Q3 FY 11 Q3 FY 12 LARGE CORPORATE ADVANCE SME ADVANCE 10923.03 14571.05 RETAIL ADVANCE 9284.59 9862.76 8943.39 9870.43 31% 37% 29151.01 34304.24 Agri Advance 4172.76 3591.81 Q3 FY 11 Q3 FY 12 32% Q3 FY 11 Q3 FY 12 29% 42% 29% FEDERAL BANK 12 YOUR PERFECT BANKING PARTNER#13Retail Book Composition Q3 FY 12 3%- 2% 3% 5% 11% 4% 53% Rs in Cr 10% 19% Adv against Dep Education Loan Gold Loan Housing Loan Mortgage Loan Other Retail Loans Personal Loan Vehicle Loan 5% 1% 6% 10% 4%- 3% Q3 FY 11 62% 13 FEDERAL BANK YOUR PERFECT BANKING PARTNER#14Top Industrial Exposure Rs in Cr SECTOR Q3 FY 11 POWER 1949 NBFC 1899 HOUSING FINANCE (INDIRECT) 1249 PETROLEUM IRON AND STEEL FOOD CREDIT 803 799 770 ROAD & PORT AVIATION ENGG CONTRACTOR TELECOM 735 413 399 362 Exposure to Infrastructure at Rs 3622 Cr 14 FEDERAL BANK YOUR PERFECT BANKING PARTNER#15Treasury Portfolio Rs in Cr Q3 FY 11 Q2 FY 12 Q3 FY 12 HFT 555.62 1334.49 690.92 AFS HFT + AFS 2802.37 6292.57 5992.18 3357.99 7627.06 6683.10 HTM 9816.55 11745.75 13614.97 Total Investments 13174.54 19372.81 20298.07 of which SLR 9488.27 12586.68 13806.23 Non-SLR 3686.27 6786.13 6491.84 IFR 190 190 190 15 FEDERAL BANK YOUR PERFECT BANKING PARTNER#16Cost, Yield & NIM Q3 FY 11 Q2 FY 12 Q3 FY 12 11.06 6.03 7.44 7.57 12.91 12.74 7.57 7.79 7.28 4.31 3.94 3.77 Cost of deposit Yield on Advance Yield on Investment Net Interest Margin 16 Rs in Cr FEDERAL BANK YOUR PERFECT BANKING PARTNER#17Margins Q3 FY 11 (3 months) Q3 FY 12 (3 months) Yield on Advance Cost of Deposits Interest Spread 11.06 12.91 6.03 7.57 5.03 5.34 Yield on Investments 7.28 7.79 Net Interest Margin 4.31 3.94 Cost to Income Ratio 37.3 37.13 17 Rs in Cr FEDERAL BANK YOUR PERFECT BANKING PARTNER#18NIM & Cost of Funds 4.44 4.31 3.87 -NIM 3.77 3.94 Q2 FY 11 Q3 FY 11 Q4 FY 11 Q1 FY 12 Q2 FY 12 Q3 FY 12 7.59 7.57 7.09 6.38 6.03 Q2 FY 11 6.08 Q3 FY 11 Q4 FY 11 Q1 FY 12 Q2 FY 12 Q3 FY 12 Average Cost of Funds 18 FEDERAL BANK YOUR PERFECT BANKING PARTNER#19NPA Movement 1153 1148 1299 1250 1363 LLLLL 227 236 244 191 196 Q3 FY 11 Q4 FY 11 Q1 FY 12 Q2 FY 12 Q3 FY 12 0.81 0.6 0.74 0.58 Gross NPA Net NPA Rs in Cr Provision Coverage Ratio at 80.54% 0.74 Net NPA % Q3 FY 11 Q4 FY 11 Q1 FY 12 Q2 FY 12 Q3 FY 12 19 FEDERAL BANK YOUR PERFECT BANKING PARTNER#20Restructured Portfolio & Provisions No. Amount Standard 18 1.66 Sub-standard 3 0.02 TOTAL 21 1.68 RESTRUCTURED ADVANCE Rs in Cr PROVISIONS Q3 FY 11 Q2 FY 12 Q3 FY 12 Investment Losses 1.86 6.82 23.21 Loan Losses 127.58 56.98 92.02 Other purposes 12.94 8.39 0.02 Tax 71.23 97.92 101.60 TOTAL 213.61 170.11 216.85 20 FEDERAL BANK YOUR PERFECT BANKING PARTNER#21Other Income Rs in Cr Q3 FY 11 Q2 FY 12 Q3 FY 12 Exchange, Commission & 31.90 31.35 33.31 Brokerage Income Other Fee Income 35.29 36.06 34.03 Net Profit on Forex Transactions 5.22 18.83 27.66 Profit on sale of securities 8.21 14.06 15.63 Recovery from assets written off 39.30 13.64 27.68 Other Receipts 1.77 3.02 -0.38 Total 121.69 116.96 137.93 21 FEDERAL BANK YOUR PERFECT BANKING PARTNER#22Key Ratios 14.29 14.56 1.44 11.37 1.41 Q3 FY 11 1.30 Q2 FY 12 Q3 FY 12 RETURN ON ASSETS (%) 33.47 44.70 47.21 RETURN ON EQUITY (%) 330.19 318.39 EARNINGS PER SHARE 298.53 BOOK VALUE PER SHARE FEDERAL BANK 22 YOUR PERFECT BANKING PARTNER#23Productivity Ratios 0.09 0.08 0.07 7.96 9.45 9.16 Q3 FY 11 PROFIT PER EMPLOYEE Q2 FY 12 BUSINESS PER EMPLOYEE 0.25 0.24 Q3 FY 12 0.19 106.83 95.75 88.40 PROFIT PER BRANCH BUSINESS PER BRANCH Rs in Cr FEDERAL BANK 23 YOUR PERFECT BANKING PARTNER#24Distribution Network State No of Br Andhra Pradesh 26 Assam Bihar Chandigarh Chattisgarh Goa Gujarat Haryana 6 1 1 2 4 20 . • 835 branches spread across 27 states Presence across various geographies - 124 branches in metros, 173 in urban centres, 408 in semi-urban centres and 130 in rural areas 3 77 1 1 • . . Two currency chests Corporate Banking Branches at Mumbai and New Delhi One Overseas Representative Office at Abudhabi, UAE 8 Zonal Offices across the country 31 Regional Offices across the country 6 Extension Counters at various locations 891 ATMs across 129 metro centres, 231 urban centres, 441 semi-urban locations and 90 rural areas Retail and SME hubs established across major centers in India for faster processing of loans and advances FEDERAL BANK 24 YOUR PERFECT BANKING PARTNER Jammu & Kashmir Jharkhand 1 . 5 Karnataka 60 Kerala 491 Madhya Pradesh Maharashtra Meghalaya Mizoram Nagaland • New Delhi 19 Orissa 5 Puducherry 2 Punjab 6 Rajasthan 4 Tamilnadu 62 • Uttar Pradesh Uttarakhand West Bengal 10 1 17 Grand Total 835#25Business Distribution DEPOSITS 50% 50% Kerala Outside Kerala ADVANCES 61% 25 39% FEDERAL BANK YOUR PERFECT BANKING PARTNER#26Product Range RETAIL BANKING Deposits Savings Bank variants Current Account variants Fixed Deposits Recurring Deposits Loans Car 2 wheeler loans Home Loans Home Overdrafts Mortgage Loans Loans against securities Educational Loans Gold Loans Personal Loans Other services Gold Coin sales Debit Cards POS terminals On-line bill payments NRI Services Insurance Product sales Mutual Fund sales Depository Services On-line equity trading PIS for NRI'S CORPORATE BANKING TREASURY Working Capital Term Loans Collection of bills Currency Futures Structured products to HNIs Derivative products G-Sec retailing Retailing of debt instruments Buyer's credit Letter of credit Bank Guarantee Forex and Derivatives Cash Management Services Syndication OTC Contracts Outward remittances hub On-line SME forex trading Rate Research Data Cell Option Trading Offshore Banking unit FEDERAL BANK YOUR PERFECT BANKING PARTNER#27External Ratings • Fixed Deposit P1+ Crisi Certificate of Deposit P1+ RATINGS Bonds Fitch Ratings AA-(Ind) Bonds ARE AA The Fixed Deposits and Certificates of Deposits enjoy the highest rating in that class • Bonds have been a rating, which are considered to offer high safety and carrying very low credit risk FEDERAL BANK 27 YOUR PERFECT BANKING PARTNER#28Subsidiaries & JVs IDBI Federal Life Insurance Co. Ltd. • • • Bank's Joint Venture Life Insurance Company, in association with IDBI Bank and Ageas · Federal Bank holds 26 % equity in the J.V. • Started selling life insurance products from March 2008 FedBank Financial Services Ltd. • Fully owned subsidiary of the Bank with NBFC license Marketing Retail Asset Products of the Bank Retail Hubs established at major centres all over India Separate mechanism established for speedy and dedicated processing of retail loans sourced through this channel UAE Representative Office Representative Office at Abu Dhabi, Capital of U.A.E., established in 2008 • Gateway of the Bank to the whole of Middle East • Increased the reach of the Bank among Non-Resident Indians in the Gulf countries FEDERAL BANK 28 YOUR PERFECT BANKING PARTNER#29Major Investments Entity % Equity 100.00% Fedbank Financial Services Limited IDBI Federal Life Insurance Company of India Limited 26.00% Credit Analysis and Research Limited 5.00% United Stock Exchange of India Limited 6.00% Experian Credit and Information Company of India 5.00% Limited FEDERAL BANK 29 YOUR PERFECT BANKING PARTNER#30Share Holding Pattern 12% 19% 6% 1% 14% 7% Mutual Funds | Financial Inst. & Banks FIIS Corporate Bodies GDR 41% Foreign Corporate Bodies Individuals 30 FEDERAL BANK YOUR PERFECT BANKING PARTNER#31Thank You FEDERAL BANK 31 YOUR PERFECT BANKING PARTNER