#1Secretarial Department FEDERAL BANK YOUR PERFECT BANKING PARTNER SD/F24/142/2021-22 The Manager Listing Department The National Stock Exchange of India Limited Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051. Re: Scrip Symbol: FEDERALBNK/Scrip Code: 500469 Dear Sir, The Manager October 22, 2021 Department of Corporate Services BSE Limited Phiroze Jeejeebhoy Towers, Floor 25, Dalal Street, Mumbai - 400 001 Sub: Presentation to Investor/ Analyst on the Un-Audited Standalone and Consolidated Financial Results of the Bank for the Quarter & Half year ended September 30, 2021 As required under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are attaching herewith, an Investor / Analyst Presentation on the Un-Audited Standalone and Consolidated Financial Results of the Bank for the quarter and half year ended September 30, 2021 and press release. The same has been published on the Bank's website also. Kindly take the same on your record. Thanking you, Yours faithfully, For The Federal Bank Limited SAMIR PRAVINCHANDRA RAJDEV Samir P Rajdev Digitally signed by SAMIR PRAVINCHANDRA RAJDEV Date: 2021.10.22 13:51:24 +05'30' Company Secretary The Federal Bank Ltd. Registered Office: Federal Towers, PO Box No.103, Aluva, Ernakulam, Kerala, India 683 101E-mail: [email protected] | Phone: 0484-2622263fax:04842623119CIN:L65191KL1931PLC000368,www.federalbank.co.in#2Investor Information FEDERAL BANK YOUR PERFECT BANKING PARTNER Q2 FY 2022 1#3Disclaimer FEDERAL BANK YOUR PERFECT BANKING PARTNER This presentation is not a complete description of the Bank. This presentation may contain statements that constitute forward-looking statements. All forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward- looking statement. Important factors that could cause actual results to differ materially include, among others, future changes or developments in the Bank's business, its competitive environment and political, economic, legal and social conditions. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Bank disclaims any obligation to update these forward-looking statements to reflect future events or developments. All information contained in this presentation has been prepared solely by the Bank. No information contained herein has been independently verified by anyone else. No representation or warranty (express or implied) of any nature is made nor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither the Bank nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation or its contents or otherwise arising in connection therewith. This presentation may not be used, reproduced, copied, distributed, shared, or disseminated in any other manner. Note: There has been an accounting change w.r.t. 'recovery from written off assets' to comply with directions issued by RBI vide its Circular dated August 30, 2021. From the current quarter, such recoveries are netted off against provisions as against the practice of reporting the same under 'other income'. Also, Provision/ Depreciation for standard investments which was earlier accounted under provision and contingency (other than tax) is now netted against other income. In certain parts of the presentation, we have given adjusted numbers to reflect the adjustments made to prior period figures to enable comparison of quarterly numbers on a like to like basis.#4Key Messages FEDERAL BANK YOUR PERFECT BANKING PARTNER Gaining Momentum in Business Growth Granular Deposit Portfolio Strength Further Enhanced Strong Asset Quality Performance Digital Dominance Visible • • Strong traction in NIM @ 3.20% and pick up in NII @ 1479 Cr, Sequential growth of 4%, on the back of credit growth in select segments • Operating Profit at 865 Cr Net Profit @ 460 Cr, grew by 50% YoY Granular Liability Franchise • • Total Savings Deposits grew by 16% YoY ⚫ CASA grew by 18% YoY and CASA Ratio at all time high level of 36.16% • Retail Deposits at 94% of Total Deposits •Fintech partnerships progressing well and contributing to 50%+ of new accounts booked Asset Quality • Fresh slippages contained to 320 Cr; that, along with recoveries and upgrades of 421 Cr led to reduction of GNPA and NNPA to 3.24% and 1.12% respectively • Strong recovery helped bring down credit cost. New Initiatives/ Digital Update Launched Credit Cards with Rupay & Visa networks in fastest possible time. Also partnered with OneCard for launch of Credit Card • Empanelled by Gol and RBI for collection of Direct and Indirect Taxes Credit Growth in Chosen Areas . • Total Advances grew by 10% YoY • Retail Advances grew by 12% YoY • Agri Business grew by 20% YoY • Business Banking grew by 11% & Commercial Banking grew by 12% YoY Income and Cost Streams • Strong traction in Core Fee Income @ 373 Cr, increase of 29% YoY • Cost to Income @ 55.05%, impacted by higher expenses and pertaining to recovery from written off accounts, which impacted other income Steady Growth in Market Share • Market Share in Advances at 1.21% • Market Share in Deposits at 1.07% •Market Share in Personal Inward remittance business increased to 20.54% (Q1 FY22) Balance Sheet and Capital Balance Sheet grew by 9% YoY (Rs 2.06 L Cr) • Total business grew by 10% YoY (3.06 L Cr) • CRAR at 14.97% 3#5Key Ratios FEDERAL BANK YOUR PERFECT BANKING PARTNER RoA RoE Net Interest Margin (%) 12.20 10.73 10.38 9.03 3.22 3.23 3.15 3.20 3.13 1.02 0.92 8.09 0.84 0.76 0.65 IIIII Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Cost to Income Ratio 49.82 49.97 48.25 46.72 55.05 53.90 53.06 45.12 NNPA (%) 47.38 0.99 0.60 PCR (%) 77.10 65.00 65.43 64.65 65.14 1.23 1.19 1.12 Q2 FY21 Q3 FY21 Q4 FY21 ■Reported Q1 FY22 Adjusted Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 PCR#6Key Revenue Parameters Net Interest Income 1479 1437 1420 1380 1418 FEDERAL BANK YOUR PERFECT BANKING PARTNER Other Income 650 552 509 482 476 465 449 436 444 Q2 FY21 Q3 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q4 FY21 Q1 FY21 Q2 FY22 288 357 Fee Income 363 255 373 308 404 Net Profit 478 Q2 FY22 Reported Adjusted 367 460 in Cr Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 5#7Key Indicators FEDERAL BANK YOUR PERFECT BANKING PARTNER Q2 FY22 Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 Book Value 83.57 82.60 80.77 78.39 76.38 (Per Share in *) Shareholder Value EPS (annualized) 8.79 7.38 9.71 8.04 6.12 CASA + Deposits <2 Cr 92% 91% 88% 90% 90% Granularity (% of Total Deposits) ROA 0.92 0.76 1.02 0.84 0.65 Profitability RoRWA 1.79 1.49 1.91 1.64 1.28 (Annualized) ROE 10.73 9.03 12.20 10.38 8.09 Efficiency Cost/Income* 55.05 47.38 53.90 49.97 48.25 Net NPA% 1.12 1.23 1.19 0.60 0.99 *Adjusted#8Asset Quality Trends FEDERAL BANK YOUR PERFECT BANKING PARTNER Amt in Rs.Cr. 3.33 3.44 Covid Specific Restructuring as on Q2 FY22 at 2.49% of Gross Advance 3.01 2.92 2.86 2.74 2.84 2.62 2.28 2.24 2.01 2.01 1.96 1.71 1.67 1.73 1.76 1.59 5194 1.28 1.14 1.00 1.08 139 4328 161 1502 3139 2958 3139 2970 3191 31973357 2890 2855 2771 3347 1593 160 775 606 584 804 788 615 747 545 Provision Coverage Ratio maintained at 65.43% 2680 2784 411 394 479 2581 2624 351 332 2690 315 286 2242 2091 118702076 1569 238 1040 1102 1157 208 995 1061 1066 941 211 1552 1620 1796 1817 1626 1673 1844 190 757 3553 1941 1607 1477 1218 2574 1618 1348 1493 1453 1282 1326 1343 1425 1129 793 581 577 644 604 619 612 463 Recovery and Upgrades higher than fresh slippages at 421 Cr in Q2 Collection Efficiency improved to 96% Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 ■Std Restructured Ac Net NPA ■Net SR Stressed Book to Tot Avg. Assets Movement of NPA Provisions in Q2 Gross NPA as on 30.06.2021 4649 Loan Loss -65 Add Fresh Slippage 320 Investment Loss 16 Add Increase in Balances in Existing NPAs 19 Deduct Recoveries/ Upgrades/ Reduction in existing NPA Standard Accounts 287 -423 Other Purposes 7 Deduct Written Off -120 Total Provisions 245 Gross NPA as on 30.09.2021 4446#9Fresh Slippages Break up Fresh Slippages FEDERAL BANK YOUR PERFECT BANKING PARTNER Restructured Q2 FY22 Q1 FY22 Q2 Q1 Q4 Q3* Q2 TYPE FY22 FY22 FY21 FY21 Of which FY21 Balance Balance Bonds Of which Bonds Retail 85 127 301 314 1 STANDARD 3553 17 2574 17 Net NPA 382 117 341 115 Agri 98 157 89 159 1 TOTAL 3935 134 2915 132 BuB 49 169 73 196 1 Security Receipts COB 88 117 135 108 0 Q2 FY22 Q1 FY22 Corporate 0 70 0 312 0 Face Value 561 571 Total 320 640 598 1089 3 Book Value 478 490 * Includes Proforma slippages Credit Cost Risk Adjusted NIM 2.74 3.34 NPA Composition Q2 FY22 Q1 FY22 2.15 2.35 1.23 2.13 Business NPA NPA 1.10 0.34 -0.19 1.64 Retail 1203 1284 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Agri 838 839 404 BuB 890 950 Slippage Rate 2.82 2.64 2.49 Gross NPA 1.87 2.51 COB 798 785 0.92 1.21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Corporate 716 791 Retail 0.02 4.04 2.64 2.49 1.28 Total 4446 4649 Wholesale 0.00 2.82 0.92 1.21 0.58 Net NPA 1502 1593 Bank 0.01 2.51 1.87 1.91 0.96 8#10Covid Specific Restructuring Balance Outstanding of Covid Specific Restructuring Retail FEDERAL BANK YOUR PERFECT BANKING PARTNER Amt in Cr 2072 Agri 155 CV/CE BuB 69 530 CoB 455 CIB 142 Total Restructuring 3423 80% of the restructured book has >75% security coverage. 73% of this has > 100% security cover Balance Outstanding of Covid Specific Restructuring in Retail Amt in Cr Housing Loan 1068 Loan against Property 832 Auto Loan Personal Loan Education Loan Others Total Retail Restructuring 82 44 45 1 2072 9#11Asset Quality: Rating Distribution (Corporate Advances) External Rating of Corporate Advances Q2 FY22 3% 8% 12% 12% 8% 3% Q1 FY22 77% FEDERAL BANK YOUR PERFECT BANKING PARTNER External Rating of Corporate Advances Rating Q2 FY22 Q1 FY22 A & above 77% 77% BBB 12% 12% < BBB 3% 3% Others 8% 8% Internal Rating of 'others' (Externally unrated Corporate advance from above table) Rating Q2 FY22 Q1 FY22 77% FBR1 9% 9% FBR2/FBR3 4% 1% ■A & Above BBB <BBB OTHERS FBR4 19% 19% *Below FBR4 & unrated 68% 71% *includes IBPC. 10#12Asset Quality: Rating Distribution (Advances excluding Corporate advance) 17% Q2 FY22 29% 29% FEDERAL BANK YOUR PERFECT BANKING PARTNER Rating Q2 FY22 Q1 FY22 20% 17% 20% FBR1 20% 20% FBR2/FBR3 18% 18% Q1 FY22 18% 18% FBR4 16% 16% 16% 16% 1) FBR1 2) FBR2/FBR3 3) FBR4 4) FBR5/FBR65) OTHERS FBR5/FBR6 29% 29% Staff 2% 2% Gold, Advance against Deposit/Securities & others. 15% 15%#13Comparison: Y-0-Y (3 M) Advances Deposits Performance Ratios FEDERAL BANK YOUR PERFECT BANKING PARTNER RETAIL WHOLESALE Retail Agri BuB# (COB)# CIB Total Advances 12% 20% 10% 12% 4% 39605 44264 14880 -> 17890 1127512457 CASA 18% CASA Ratio 248 bps 33.68 36.16 -> 1233113851 47117-> 48851 NRE Deposits 6% 10% 125209137313 Retail Deposits 11% 52786 62191 6156065344 145783161160 Net Interest Income Core Fee Income Operating Profit* Net Profit -9% 7% 29% 50% 1380 -> 1479 288-373 947 -> 865 Cost Income Ratio* Gross NPA % Net NPA % 308 -> 460 Profit Per Employee (in Lac) 680 bps 13 bps -> 48.25 55.05 2.84 -> 3.24 0.99 1.12 40 bps 48% 9.86 * Adjusted. #SME split into BuB & COB 14.55 12#14Comparison: Q-o-Q (3 M) FEDERAL BANK YOUR PERFECT BANKING PARTNER RETAIL WHOLESALE Retail Agri BuB# (COB)# CIB Total Advances Advances 2% Deposits Performance Ratios 6% 8% 7% 2% 3% 43599-44264 16837 -> 17890 11576 12457 1296313851 47812 -> 48851 132787137313 CASA CASA Ratio NRE Deposits -1% Retail Deposits 5% 135 bps 34.8136.16 58959 62191 Net Interest Income Core Fee Income 4% 46% 3% 66019 65344 Operating Profit* 157054-161160 Net Profit -17% 25% 1418 -> 1479 255 -> 373 1037 -> 865 Cost Income Ratio* Gross NPA % Net NPA % 367 -> 460 Profit Per Employee (in 767 bps 47.38 55.05 -> -26 bps -11 bps Lac) 24% * Adjusted. 3.5 - 3.24 -> 1.23 - 1.12 11.72 14.55 #SME split into BuB & CoB 13#15Digital Migration Digital Transformation Digital Migration Future Readiness 87.5% 10.8K 149% SHARE OF DIGITAL TRANSACTION CR WORTH MONTHLY MOBILE BANKING TRANSACTIONS YOY GROWTH IN UPI TRANSACTIONS 200+ RPA PROCESSES RUNNING 81% ACCOUNTS OPENED DIGITALLY 300+ API'S AVAILABLE IN OPEN BANKING 50+ NUMBER OF FINTECH PARTNERS 5 NUMBER OF CHANNELS WHERE AI IS INTEGRATED FUTURE OF DIGITAL IS HUMAN FEDERAL BANK YOUR PERFECT BANKING PARTNER#16Digital Migration Branch vs Digital Transactions (In Lakhs) 100 80 86.07% 60 40 85.52% 69.36 59.81 20 10.12 11.22 0 Sep-20 Dec-20 Transactions through Branch(Lakhs) YoY Growth in Digital Users 85.36% 76.76 13.16 Mar-21 FEDERAL BANK YOUR PERFECT BANKING PARTNER 88.42% 87.50% 89.00% 88.50% 88.00% 87.50% 87.00% 86.50% 86.00% 79.98 85.50% 64.12 85.00% 8.39 11.42 84.50% 84.00% 83.50% Jun-21 Sep-21 Transactions through Digital Channels(Lakhs) -Digital Share Mobile Banking Volume (In Crores) Digital transactions have seen a 34% YOY growth. Volume YOY Growth 12000 100% 82% 86% Mobile Banking volume stands at 10,868 Crore, a 37% YOY growth. 90% 10000 75% 10868 80% 70% 8000 35% There is a YoY growth of 7% in active digital users. 60% 6000 50% 10646 32% 28% 9149 21% 10% 7% • Digital Share stands at 87.50% for the month of Sept-21. 4000 8650 37% 40% 7909 30% 20% 2000 10% Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 ⚫ Count of digital active users continues to increase. 0 0% Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 *Data is only for the corresponding month 15#17Fintech Landscape NEW Bill Desk All your payments. Single location EMI on PG Checkout rupeek Pine Labs EMI on POS Checkout Payu EMI on PG Checkout epifi. Jupiter GDGV DIGIVRIDDHI r3. Blockchain for cross border remittances EMI on Checkout Full stack for Neo Banks Cross border inward remittance No tension instant Gold Loans Lentra Loan Origanation System STREET TECH Yourfas track to the future Microlending Lending Loans on paisabazaar Flexmoney Checkout Lentra Loan Origanation System NEO BANKS ACCOUNT OPENING Gold Loan & Account Security REMITTANCE SOLUTION (8 APIs) (9 APIs) Creation DIGITAL CREDIT UPI (10 APIs) Debit Card EMI facilities (9 APIs) INSTANT LOAN @ CheckOut (4 APIs) 300+ API's 13 API Bundles 50+ Fintechs E-KYC (4 APIs) LOAN SECURITY Lending solutions for (1 API) & PAYMENTS (10 APIs) INSTANT LOAN (9 APIs) individual rupeek No tension instant Gold Loans NEW STREET TECH Your fast track to the future. Microlending *ripple Cross Border remittances FEDERAL BANK YOUR PERFECT BANKING PARTNER LuLu GROUP INTERNATIONAL Inter-bank payments using UPI Account opening for Gold loans & MFI loans cointab UPI PSP NEW STREET TECH Your fast track to the future Microlending rupeek No tension instant Gold Loans customers Fund Transfer, Bill payments & other services. Payment Cashfree Aggregator ΤΑΤΑ CONSULTANCY SERVICES TAB Banking aurionpro mByon Smart Branch mByom CONSULTING AND MANAGEMENT SERVICES Agricultural Aggregation 1807 DEPARTMENT T OF 2018 IES KERALA TREASURIES Payment Systems Instant loans for Existing to Bank customers BSNL Payment Systems Google Pay airtel Ba paisabazaar com Payments Bank 16#18Innovation and Growth through Partnerships FEDERAL BANK YOUR PERFECT BANKING PARTNER Account Aggregator Game Changer!! • We were among 5 major banks to go live on Account Aggregator Ecosystem. • AA is a new concept wherein the data is aggregated by Financial institutions, insurance companies, etc. can be used for consumption digitally entirely based on a valid customer consent. • With use cases from NTB acquisition to cross selling of multiple products, this is one place to vouch for in the coming days. FEDERAL BANK FINVU FI Sahamati e -D 17 AA#19Innovation and Growth through Partnerships FEDERAL BANK YOUR PERFECT BANKING PARTNER Comprehensive School Management Solution Careerbook Next Gen school management platform for educational institutions. Makes fee payment hassle free. Schools on the platform have direct access to Bharat Billpay (BBPS) enabling parents to to make payments through 150 plus UPI Apps and Mobile/Net Banking of all banks. Schools can subscribe to other features like Admissions, Attendance, Examination, Promotion etc. E-Fee 18#20Innovation and Growth through Partnerships Number of Merchants (In Lakhs) 50 BharatPe Merchant Network • An offline acquirer of merchants providing QR codes for UPI Payments, POS machines and facilitating small loans. Bank now processes the highest number of transactions for Bharat Pe. • We are No. 1 partner bank of Bharat Pe having 45L+ merchants on the platform & processing 14L+ transactions every day. 40 30 20 10 0 Mar-21 Apr-21 May-21 June-21 Sept-21 Growth in Transaction Count (In Lakhs)] 600 500 400 300 200 100 0 Mar-21 Apr-21 May-21 June-21 Sept-21 FEDERAL BANK YOUR PERFECT BANKING PARTNER MERCHANT ACQUISITION Ek Bharat Ek QR BHIM UPI Bharat Pe Merchant a PORT Bharat Pe PAY WITH ANY APP BharatPe 19#21Card Spends, Digital Lending and Corporate migration BYOM Digital Personal Loans Loan book progress Card Spends (In Crores) FEDERAL BANK YOUR PERFECT BANKING PARTNER 30 98000 96000 1510 1473 1520 1500 25 1000 24.5 20 94000 1480 15 92000 1436 1460 500 1091 1120 1146 1431 832 800 8.2 10 90000 1416 1440 96019 5 88000 94573 1420 86000 89849 90693 0 0 1400 87024 84000 1380 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 82000 1360 Debit Card Spends Credit Card Spends Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 No. of Loans (Cumulative) Fed-e-Biz Balance in Crore (Cumulative) BY OM BYOM enables digital instant personal loans through Federal Bank's Web Poral, Fed Mobile, Google Pay, Paisa Bazaar & Airtel Payments Bank. • EMI on check out through Pine Labs, Innoviti at multiple merchant locations through POS machines. ⚫EMI through online channels ex. Bill Desk (Amazon), Flex Money (Flipkart & Myntra) & PayU (MMT). 700000 14260 16000 14000 600000 10818 12000 500000 8212 9167 10000 400000 6174 8000 300000 617070 654993 6000 460881 200000 397698 424532 4000 100000 2000 0 0 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 I Transaction Count Amount (Crores) Fede biz •Fed e-Biz is the omni channel transaction banking platform for corporates. • 130% YOY growth in the platform and transaction volume has crossed 14K cr mark 20 20#22Business Parameters FEDERAL BANK YOUR PERFECT BANKING PARTNER 21#23FY18 Liability: Trends Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 53152 56037 58713 59336 62562 CASA Demand Dep 92630 93241 97265 97719 98598 Other Retail Deposit Remittance Market Share (in %) 16.54 15.55 15.70 *data up to Q1 FY22 FEDERAL BANK YOUR PERFECT BANKING PARTNER in Cr CASA Ratio 33.68% 34.48% 33.81% 34.81% 36.16% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 CA & SA 44318 46582 47686 49996 51381 8467 20.54 Q2 FY21 9158 Q3 FY21 10684 Q4 FY21 8963 Q1 FY22 10810 Q2 FY22 18.20 ■CA SA Cost of Deposits 4.45 FY19 FY20 FY21 FY22* COD 4.32 Q1 FY22 Q2 FY22 22 24#24Credit Portfolio Distribution 32% 9% 10% 13% TOTAL LOAN BOOK 36% ■ Retail ■ Agri ■ BuB ■COB ■CIB Yield on Advances 8.15 8.11 YOA 54% FEDERAL BANK YOUR PERFECT BANKING PARTNER ■ Retail Wholesale 46% 59448 58559 61939 60775 62702 IQ1 FY22 65760 69621 72938 72012 74611 Q2 FY22 in Cr Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 23#25Retail Banking FEDERAL BANK YOUR PERFECT BANKING PARTNER Retail Loan Book (Excl Agri & BuB) Housing LAP Auto Personal Others 23% 11582 10343 9892 10615 9062 61% 1736 1645 1710 1809 1766 3840 3603 3583 3346 3195 7852 7783 7973 7206 7489 16% 18497 19043 20020 20124 20824 Q2 FY21 Q3 FY21 Q4 FY21 RETAIL BANKING Q1 FY22 Q2 FY22 in Cr ■ Retail ■ Agri BuB 12030 12457 11576 11793 11275 16041 16837 17890 15626 14880 39605 42203 44866 43599 44264 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 ➤ Launched Debit-Card-EMI/BNPL option for Health insurance with Niva Bupa Tied-up with Cred Avenue for technology solution to manage Direct assignment/securitization portfolio ➤ Disbursals through Fintech enabled Gold and Micro lending platforms crossed Rs.3800 Cr. FedMi - BC microlending platform went live in Q2 and 3 BCS onboarded for sourcing MFI business 24#26Gold Loan Portfolio Trends Gold Loan Portfolio 15816 14692 12691 15764 15976 FEDERAL BANK YOUR PERFECT BANKING PARTNER No of outstanding Accounts (in Lakhs) 11.32 11.20 10.46 9.78 || 11.62 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 42.25 Tonnage 49.51 48.41 48.73 46.48 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 LTV of 77% Yield of 11.26% Grew by 26% YoY 25#27Wholesale Banking CoB ■ Corporate (CIB) FEDERAL BANK YOUR PERFECT BANKING PARTNER in Cr 22% 78% 48748 48851 47117 45713 47812 12331 12846 13190 12963 13851 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 WHOLESALE BANKING Onboarded 62 new clients in CIB and 79 new clients in CoB, across business groups, geographies and sectors during the quarter. ➤ Digital channel adoption and CASA enabling products (Trade and Transaction products) helped Avg CASA grow by 41% YoY in CIB and 21% YoY in CoB ➤ Average Ticket Size of Wholesale Loan Book (CIB+COB): 23 Cr ➤ Average Ticket Size of CIB & COB Loans is 56 Cr & 7 Cr Respectively 26 26#28Fee Income: Distribution Fee Income Distribution : Vertical Wise* (In Cr) FEDERAL BANK YOUR PERFECT BANKING PARTNER 552 436 477 449 162 71 162 62 252 216 02 Y 21 Q3 FY 21 སྐྱུག 444 27 88 281 74 97 72 62 272 276 182 Q4 FY 21 Q1 FY 22 Q2 FY 22 Retail Wholesale Treasury Others Fee Income Distribution: Item Wise* Total (In Cr) 75 27 46 96 96 71 79 444 50 54 12 53 41 53 297 552 41 97 31 79 71 45 40 436 73 65 222 101 40 83 119 476 45 59 20 36 82 161 59 32 449 Cards Para banking Banking Commisions & Processing Fee & charges on Loans General Service charges Profit on Forex Net Profit on sale of Total Investments and Exchanges other receipts *Adjusted Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY 22 Q2 FY 22 27 27#29Fee Income/Other income Q2 FY22 Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 FEDERAL BANK YOUR PERFECT BANKING PARTNER Loan Processing Fee 96 53 97 101 82 Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee Income 227 161 226 211 174 Net Profit on Forex 50 41 40 45 32 Transactions 29% 288 Fee Income 373 255 363 357 288 373 Profit on sale of securities/ Other Receipts 71 297 73 119 162 & misc.* Q2 FY21 Q2 FY22 Total Other income* * Adjusted. 444 552 436 476 449 in Cr 28#30Distribution: Deriving Efficiency from Footprint FEDERAL BANK YOUR PERFECT BANKING PARTNER Branches Sales/Relationship Channel (Bank owned) Customers Digital @ 8 Core BC led Distribution Direct Sales Agents/Connectors Q2 FY22 Q1 FY22 Q4 FY21 1 29 3 1 22 27 23 8 44 9 31 11 3 25 101 20 6 24 104 2 Branches 1272 1272 1272 154 ATM/ 596 1874 1953 1957 Recyclers 12 12% 16% Q2 FY22 12% 16% Q1 FY22 18% 18% 54% 54% ■Metro ■ Urban ■Semi Urban ■ Rural 29#31CRAR - How strong is your Bank? FEDERAL BANK YOUR PERFECT BANKING PARTNER in Cr Sep-21 Jun-21 Risk Weighted Assets Credit Risk 98648 94757 Market Risk 3605 3885 Operational Risk 11695 11695 Total RWA 113948 110337 Tier-1 Capital Funds 16057 15305 Tier-II Capital Funds 998 851 Total Capital Funds 17055 16156 CRAR Tier-I Tier-II 14.97% 14.64% 14.09% 13.87% 0.88% 0.77% 30 30#32Annexures FEDERAL BANK YOUR PERFECT BANKING PARTNER 31#33Balance Sheet & Shareholding Pattern FEDERAL BANK YOUR PERFECT BANKING PARTNER LIABILITIES Q2 FY22 Q1 FY22 Capital 420 399 Share Holding Pattern Reserves & Surplus 17307 16089 Deposits 171995 169393 Borrowings 10784 9350 31% Other Liabilities & Provisions 6368 4807 TOTAL 206874 200038 2% 32% ASSETS Cash & Balance with RBI 8486 8284 26% Balances with Banks, Money at Call 13505 11705 9% Investments 36977 37391 Advances 134405 129765 Fixed Assets 548 532 ■Mutual Funds ■Fls/Banks - Flls Corporates ■ Others Other Assets 12954 12361 TOTAL 206874 200038 32 32 in Cr#34Financials FEDERAL BANK YOUR PERFECT BANKING PARTNER in Cr Q2 FY22 Q1 FY22 Q-o-Q Q2 FY21 Y-o-Y Interest Income 3379 3356 0.7% 3488 -3% Interest Expenses 1900 1937 -1.9% 2108 -9.9% Net Interest Income 1479 1418 4.3% 1380 7.2% Other Income* 444 552 -19.6% 449 -1.1% Operating Expense 1059 933 13.5% 883 20% Total Income* 3824 3908 -2.1% 3937 -2.9% Total Expense 2959 2871 3% 2991 -1% Operating Profit* 865 1037 -16.5% 947 -8.7% Total Provisions* 405 670 -39.6% 639 -36.6% Net Profit 460 367 25.3% 308 49.6% Net Interest Margin (%) 3.20 3.15 5 bps 3.13 7 bps Cost to Income Ratio (%)* 55.05 47.38 767 bps 48.25 680 bps 33 * Adjusted.#35Top 10 Sectors in Wholesale Advance Portfolio Top 10 Sector wise exposure as a % of Total Advance TRANSPORT VEHICLES & PARTS 1.29% CHEMICALS 1.33% BANKS 1.34% TEXTILES INCLUDING JUTE & COIR 1.34% CONTRACTORS FOOD PRODUCTS REAL ESTATE BUSINESS POWER GENERATION & TRANSMISSION HFC NBFC 1.69% 2.22% 2.85% 3.56% 30.09.2021 5.01% FEDERAL BANK YOUR PERFECT BANKING PARTNER 7.32% 34#36Investments / Subsidiaries & JVs Major Investments Entity Federal Operations & Services Limited (FedServ) Fedbank Financial Services Limited Ageas Federal Life Insurance Company Limited Equirus Capital Private Ltd. Subsidiaries & JVs Ageas Federal Life Insurance Co. Ltd. •Bank's Joint Venture Life Insurance Company, in association with Ageas •Federal Bank holds 26% equity in the J.V. •Started selling life insurance products from March 2008 FedBank Financial Services Ltd. FEDERAL BANK YOUR PERFECT BANKING PARTNER % of stake 100.00% 74.00% 26.00% 19.89% •Total AUM 5100+ Cr. •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. Federal Operations & Services Limited (FedServ) •FedServ is a wholly owned subsidiary company of Federal Bank. •It provides operational & technology oriented services to Federal Bank •Located at Visakhapatanam & Kochi •Designed to deliver excellence in service, mitigation of risk and cost efficiencies 35 55#37FedBank Financial Services Ltd. (FEDFINA) Federal Bank Stake in Fedfina 82.6% 74% 74% 463 Branches 74% FEDERAL BANK YOUR PERFECT BANKING PARTNER 15 States & UTS 7 PUNJAB 6 HARYANA 1 CHANDIGARH 29 DELHI -5 UTTAR PRADESH 2 MADHYA PRADESH 5,197 AUM (Cr) 4,752 16 RAJASTHAN 3,780 2,046 1,846 1,015 73 GUJARAT 169 281 593 2,004 592 488 80 MAHARASHTRA- 300 434 815 1,030 431 665 3 GOA 352 1,208 1,323 1,359 786 80 KARNATAKA FY19 FY20 FY21 Q2 FY22 ■Medium Ticket LAP ■Small Ticket LAP & HL Business Loan Others ■Gold Loan -52 ANDHRA PRADESH 41 TELANGANA 1 PUDUCHERRY 67 TAMIL NADU . HIGHLIGHTS Net Interest Income increased by 15% to 114 Cr over Q1FY22. GNPA's declined by 92 bps QoQ to 2.30%. 15 463 STATES & UTS BRANCHES . 94 gold loan and small ticket LAP branches launched in Q2FY22. Certified "Great Place To Work" third time in a row ( Oct'21 - Oct'22). 2,658 *. 5,197 Cr AA- (Stable) EMPLOYEES LOAN BOOK CREDIT RATING (IND-RA) 25.2% CAPITAL ADEQUACY As of September 30, 2021 Note: The financial numbers above are prepared in accordance with Indian GAPP ('I-GAAP') for the purposes of the consolidated financial results of the Bank. Fedfina prepares their financial results in accordance with the notified Indian Accounting Standards ('Ind-AS') and it may be different than Indian GAAP numbers above. 36#38External Ratings Fixed Deposit (Short term) Certificate of Deposit CRISI RATINGS A1+ A1+ FEDERAL BANK YOUR PERFECT BANKING PARTNER Tier 2 (Capital) Bonds India Ratings & Research Pvt Ltd, CARE IND AA CARE AA Fixed Deposits and Certificate of Deposits enjoy highest rating in that class. 37#39Thank You FEDERAL BANK YOUR PERFECT BANKING PARTNER#40Marketing Department PRESS RELEASE FEDERAL BANK YOUR PERFECT BANKING PARTNER October 22, 2021 Federal Bank net profit grows by 50% to reach Rs. 460.26 Cr Federal Bank announced Unaudited Financial Results for the quarter ended 30th September 2021. Highlights of the results are as follows: • CASA grew by 18% YoY and CASA Ratio at all time high level of 36.16% Strong traction in NIM @ 3.20% and pick up in NII @ Rs. 1479 Cr Net Profit @Rs. 460 Cr, grew by 50% YoY Operating Profit at Rs. 865 Cr Total Advances grew by 10% YoY • Agri Business grew by 20% YoY • Retail Advances grew by 12% YoY • Total Savings Deposits grew by 16% YoY Retail Deposits at 94% of Total Deposits Strong traction in Core Fee Income @ Rs. 373 Cr, increase of 29% YoY Commenting on the results and financial performance, Mr. Shyam Srinivasan, Managing Director & CEO, Federal Bank said, "The Bank, amidst the volatile environment, has delivered a very encouraging performance braving a lot of odds. We witnessed strong traction in NIM and pick up in NII on the back of good credit growth in certain segments. Strong recovery and upgrades helped in virtually no credit cost for the quarter. CASA growth of 18% YoY led CASA ratio to reach an all-time high of 36%. This further strengthens the granularity of our deposit portfolio. Inward Remittances continues to be a strong forte for the Bank with a market share of 20.54%. The digital story of the Bank continues to prosper with Fintech partnerships progressing well and contributing to 50% + of new accounts booked." WORKING RESULTS AT A GLANCE (Rs. in Crore) Particulars Q2 Q2 % y-o-y growth 2021-22 2020-21 Net Profit 460.26 307.62 149.62% The Federal Bank Ltd. | Marketing Dept | 4th Floor, Federal Towers, Bank Junction, Aluva | Phone: 04842634011 Email: [email protected] | CIN: L65191KL1931PLC000368| Website: www.federalbank.co.in#41Net Interest Income 1479.42 1379.85 7.22% Net Total Income 1923.78 1829.21 15.17% Balance Sheet Total Business of the Bank reached Rs.306399.38 Cr registering a growth of 9.56% as on 30th September 2021. Total Advances grew from Rs. 125208.57 Cr to Rs. 137313.37 Cr. Total Deposits increased from Rs. 156747.39 Cr as on 30th September 2020 to Rs. 171994.75 Cr as on 30th September 2021. Resident Savings Bank Deposits of the Bank grew from Rs. 23084.29 Cr to Rs. 27716.43 Cr registering a growth of 20.07%. CASA Deposits clocked a growth of 17.82% YoY to reach Rs. 62190.88 Cr. On the Asset side, Agri advances grew from Rs. 14880.35 Cr to Rs. 17890.00 Cr registering a growth of 20.23%. Gold Loans registered a growth of 25.88% reaching Rs. 15976.00 Cr as on 30th September 2021. Retail Advances grew by 11.76% to reach Rs. 44264.37 Cr. Operating Profit & Net Profit The Bank registered an Operating Profit of Rs. 864.79 Cr and Net Profit of Rs. 460.26 Cr. for the quarter ended 30th September 2021. Net Interest Income & Margins The Bank earned Net Interest Income of Rs. 1479.42 Cr for the quarter ended 30th September 2021. Net Interest Margin stood at 3.20% as on 30th September 2021. Asset Quality Gross NPA of the Bank as at the end of Q2 FY22 stood at Rs. 4445.84 Cr, which as a percentage to Gross Advances stood at 3.24%. The Net NPA and Net NPA as a percentage to Net Advances as on 30th September 2021 stood at Rs.1502.44 Cr and 1.12% respectively. Provision Coverage Ratio (including technical write-offs) was 79.33%. NET WORTH & CAPITAL ADEQUACY Net worth of the Bank increased from Rs. 15235.25 Cr to Rs. 17561.53 Cr, as on 30th September 2021. Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 14.97% as at the end of the quarter. Footprint The Bank has 1272 branches and 1874 ATMs/ Recyclers as on 30th September 2021. Q2FY21 Vs Q2FY22 • Retail advances grew by 11.76% to reach Rs.44264.37 Cr Gold Loans registered a growth of 25.88% to reach Rs.15976.00 Cr Agri advances reached Rs.17890.00 Cr registering a growth of 20.23% • CASA grew by 17.82% from Rs.52785.84 Cr to Rs.62190.88 Cr The Federal Bank Ltd. | Marketing Dept | 4th Floor, Federal Towers, Bank Junction, Aluva | Phone: 04842634011 Email: [email protected] | CIN: L65191KL1931PLC000368| Website: www.federalbank.co.in#42. Total Deposits increased by 9.73% from Rs. 156747.39 Cr to Rs.171994.75 Cr Investments stood at Rs. 36976.73 Cr • Book Value per share increased from Rs. 76.38 to Rs. 83.57 MAJOR FINANCIAL INDICATORS (Standalone nos.) Business Figures Total Deposits SB & Demand Deposits Gross Advances Retail Advances Agri Advances Capital As on 30.9.2021 171994.75 As on 30.9.2020 (Rs. in Crore) Growth (%) 156747.39 19.73% 62561.81 53152.28 17.70% 137313.37 125208.57 19.67% 44264.37 39605.20 11.76% 17890.00 14880.35 20.23% 420.30 398.93 Equity Capital 17561.53 15235.25 15.27% Net Worth 14.97 14.64 Capital Adequacy (%) 14.09 13.33 Tier 1 (%) 0.88 1.31 Tier II (%) Anand Chugh Vice President Ph-9995707335, E-mail: [email protected] A presentation for investors is being placed separately on our Bank's website: www.federalbank.co.in For further information, please contact: Mr. Venkatraman Venkateswaran Group President & CFO Tel: 04842634002, e-mail: [email protected] The Federal Bank Ltd. | Marketing Dept | 4th Floor, Federal Towers, Bank Junction, Aluva | Phone: 04842634011 Email: [email protected] | CIN: L65191KL1931PLC000368 | Website: www.federalbank.co.in