#1Investor Information FEDERAL BANK YOUR PERFECT BANKING PARTNER Q3 FY 2021#2Key Messages FEDERAL BANK YOUR PERFECT BANKING PARTNER Strong Operating Momentum Continue to Strengthen Balance Sheet Adequately Capitalized Robust Operating Performance • Operating Profit @ 963 Cr for the Quarter, grew 29% YOY Net Profit @ 404 Cr, impacted by significant step up in provisions to further strengthen the Balance sheet Net Interest Margin @ 3.22% an increase of 22 bps YoY Granular Liability Franchise •CASA grew by 23% YoY and CASA Ratio improved to 34.48% . . Retail Deposits at 92% of Total Deposits More than INR one trillion inward remittances processed in calendar year 2020 Asset Quality . . Strengthened PCR to 77.10% from 64.65% QoQ GNPA down to 2.71% and NNPA down to 0.60%, including the proforma slippages, GNPA & NNPA would have been 3.38% & 1.14% respectively New Initiatives/ Digital Update Crossed 1000 crores of monthly spends on Debit cards, in December 2020. This puts Federal Bank in top 5 private sector banks on debit spends Transactions using Digital Channels now account for 86% of the total transactions Credit Growth in Chosen Areas . Total Advances grew by 6% YoY • Retail Advances grew by 16% YoY •Gold loans grew by 16% QoQ & 67% YoY Business Banking grew by 13% YoY Income and Cost Streams • Highest ever Net Interest Income @1437 Cr, grew 24% YoY, against credit growth of 6% • Other Income @ 482 Cr, grew by 18% YoY & Core Fee income grew by 15% YoY • Cost to Income improved to 49.82%, down 258 bps YoY Steady Growth in Market Share • . Market Share in Advances at 1.18% Market Share in Deposits at 1.09% • Market Share in Personal Inward remittance business increased to 17.50% Balance Sheet and Capital • Balance Sheet grew by 14% YoY (Rs 1.97 L Cr) • Total business grew 9% YoY (Rs 2.87 L Cr) • CRAR at 14.31%#3Performance Highlights Y-o-Y Operating Profit Other Income RoA RoE 29% Retail Banking 18% Agri Banking FEDERAL BANK YOUR PERFECT BANKING PARTNER 16% 24% @ 0.84% @10.38% Business Banking (BuB) 13% Cost to Income Ratio @ 49.82% Commercial Banking (COB) 8% GNPA NNPA NII NIM @ 2.71% Total Advance @ 0.60% 6% 24% @ 3.22% CASA 23% NRE Deposit 17% Capital Adequacy (CRAR) @ 14.31% Total Deposit 12%#4Key Ratios RoA 1.04 0.88 0.84 0.69 0.65 12.50 8.41 RoE 10.92 10.38 8.09 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Cost to Income Ratio NNPA (%) 52.40 50.22 46.72 49.82 47.76 1.63 1.31 1.22 0.99 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 FEDERAL BANK YOUR PERFECT BANKING PARTNER Net Interest Margin (%) 3.13 3.22 3.00 3.04 3.07 IIIII Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 PCR (%) 77.10 64.65 66.12 53.39 58.54 45.30 Including Proforma slippage 0.60 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 PCR 4#5Key Revenue Net Interest Income 1437 1380 1296 1216 1155 408 711 FEDERAL BANK YOUR PERFECT BANKING PARTNER Other Income 488 509 482 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Fee Income Net Profit 311 341 171 288 357 441 301 401 308 404 in Cr Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 5#6Key Indicators FEDERAL BANK YOUR PERFECT BANKING PARTNER Q3 FY21 Q2 FY21 Q1 FY21 Q4 FY20 Q3 FY20 Book Value 78.39 76.38 74.85 72.86 71.33 (Per Share in *) Shareholder Value EPS (annualized) 8.04 6.12 8.07 6.06 8.78 CASA + Deposits <2 Cr 90% 90% 89% 87% 88% Granularity (% of Total Deposits) ROA 0.84 0.65 0.88 0.69 1.04 Profitability RoRWA 1.64 1.28 1.64 1.23 1.92 (Annualized) ROE 10.38 8.09 10.92 8.41 12.50 Cost/Income 49.82 46.72 47.76 50.22 52.40 Efficiency Net NPA% 0.60 0.99 1.22 1.31 1.63 6#7Asset Quality including Proforma Slippages Proforma Slippages Proforma Slippages of Q2 & Q3 Of which, large infra account in standstill for which resolution/ payment expected during the current quarter; provision for haircut already made during Q1 FY21 Balance as on 31st Dec 2020 Amt in Cr FEDERAL BANK YOUR PERFECT BANKING PARTNER Proforma Slippages Business Wise Amt in Cr Retail 314 1068 Agri 153 BB 180 205 COB 108 CIB 108 863* Total Proforma Slippages 863* *Includes proforma slippages of Q2 FY21 GNPA & NNPA 2.99% 1.63% 2.84% 0.99% Q3FY20 Q2FY21 GNPA NNPA 2.71% 3.38% 1.14% 0.60% Q3FY21 GNPA & NNPA Including Proforma Slippages#8FEDERAL BANK YOUR PERFECT BANKING PARTNER Covid Specific Restructuring Details Asset Quality - Covid Specific Restructuring Covid Specific Restructuring Business Wise Amt in Cr Restructuring done in Q2 FY21 28 Retail Restructuring done in Q3 FY21 663 BB Restructuring done after Q3 FY21 till 16th Jan 376 2021 COB Total so far 1067 Others Total Restructuring expected during FY21 1500-1600 Total Restructuring 95% Collection Efficiency 95% 95% Amt in Cr 859 93 88 27 1067 Q3FY20 Q2FY21 Q3FY21 8#9Asset Quality Trends Strengthened Provision Coverage ratio to 77.10%, an increase of 1245 bps QoQ Provision Coverage Ratio including the proforma slippages would have been 66.12% Maintaining specific standard asset provision of 537 Cr Covid related restructuring at 0.54% of total advance 4.30 4.29 4.37 3.40 3.33 3.44 3.01 2.74 2.92 2.86 2.84 FEDERAL BANK YOUR PERFECT BANKING PARTNER Amt in Rs.Cr. 2.28 3498 3537 3662 2.01 2.01 1.96 1.71 1.67 1.73 3357 1.59 532 431 417 3139 3139 2955 2958 484 675 606 584 876 623 615 1040 1102 950 995 ☐ 3191 3197 1.28 1.14 2970 2890 775 804 788 2680 27842855 1.08 1.00 747 545 411 394 479 2581 2624 351 332 2771 2690 315 286 2242 238 1157 2091 208 1870 2076 190 1061 1066 941 211 1552 1796 1817 1620 1626 1673 1844 757 1941 2583 2445 2254 1607 1477 1218 1382 1348 1493 1453 1282 1326 1343 1425 1129 793 581 577 644 604 619 612 463 397 406 441 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 ■Std Restructured Ac Net NPA Net SR Stressed Book to Tot Avg. Assets Movement of NPA Provisions in Q3 Gross NPA as on 30.09.2020 3552 Loan Loss 389 Add Fresh Slippage 22 Investment Loss 7 Add Increase in Balances in Existing NPAs 12 Restructured Accounts 0 Deduct Recoveries/Upgrades -108 Standard Accounts 25 Deduct Written Off -8 Other Purposes 0 Gross NPA as on 31.12.2020 3470 Total Provisions 421 9#10Fresh Slippages Break up Fresh Slippages FEDERAL BANK YOUR PERFECT BANKING PARTNER Restructured Q3 FY21 Q2 FY21 Q3 Q2 Q1 Q4 Q3 TYPE Of which FY21 FY21 FY21 FY20 FY20 Balance Balance Bonds Of which Bonds Retail 0 1 1 97 101 STANDARD 1129 42 441 42 Net NPA 196 80 197 80 Agri 6 1 1 36 50 TOTAL 1325 122 638 122 BuB 16 1 0 54 66 Security Receipts COB 0 0 8 68 55 Corporate 0 0 174 29 321 Face Value Total 22 3 184 284 593 Book Value Q3 FY21 594 507 Q2 FY21 598 512 NPA Composition Q3 FY21 Q2 FY21 Credit Cost Risk Adjusted NIM Business NPA NPA 1.38 2.35 2.74 0.82 0.83 1.24 2.37 2.46 Retail 646 664 0.55 2.00 Agri 534 555 BuB 633 635 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Gross NPA COB 636 667 Corporate 1022 1030 Slippage Rate Total 3470 3552 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Retail 1.51 1.26 0.01 0.02 0.14 Net NPA 757 1218 Wholesale 2.49 0.63 1.16 0.00 0.00 Bank 2.02 0.94 0.59 0.01 0.07 10#11Asset Quality: Rating Distribution (Corporate Advances) External Rating of Corporate Advances Q3 FY21 5% 7% 6% 5% 12% 10% Q2 FY21 79% FEDERAL BANK YOUR PERFECT BANKING PARTNER External Rating of Corporate Advances Rating Q3 FY-21 Q2 FY-21 A & above 76% 79% BBB 12% 10% < BBB 5% 5% Others 7% 6% Internal Rating of 'others' (Externally unrated Corporate advance from above table) Rating Q3 FY-21 Q2 FY-21 76% FBR1 15% 12% FBR2/FBR3 7% 1% ■A & Above BBB <BBB OTHERS FBR4 15% 25% Below FBR4 & unrated 63%* 61%* *includes IBPC.#12Asset Quality: Rating Distribution (Advances excluding Corporate advance) 17% Q3 FY21 30% 30% FEDERAL BANK YOUR PERFECT BANKING PARTNER Rating Q3 FY-21 Q2 FY-21 19% 18% 18% FBR1 19% 18% FBR2/FBR3 17% 17% Q2 FY21 17% 17% FBR4 17% 17% 17% 17% 1) FBR1 2) FBR2/FBR3 3) FBR4 4) FBR5/FBR65) OTHERS FBR5/FBR6 30% 30% Staff 2% 3% Gold, Advance against Deposit/Securities & others 15% 15% 12#13Comparison : Y-o-Y (3 M) FEDERAL BANK YOUR PERFECT BANKING PARTNER RETAIL WHOLESALE Retail Agri BuB# CoB# CIB Total Advances -7% Advances 16% 13% 8% Deposits Performance Ratios 24% 6% 3655142247 12646 -> 15661 10354 11652 11998 12932 49313 -> 45689 120861128180 CASA CASA Ratio NRE Deposits Retail Deposits 23% 302 bps 45484-55740 31.46 34.48 Net Interest Income Core Fee Income 24% 15% 17% 13% 5358762505 Operating Profit 131530 149278 Net Profit -8% 29% 1155-1437 311 -> 357 744 -> 963 441- Cost Income Ratio Gross NPA % Net NPA % -> 404 Profit Per Employee (in Lac) -258 bps -28 bps -103 bps -8% 52.4 -> 49.82 2.99 -> 2.71 * Credit segments are realigned at the beginning of every FY. 1.63 -> 0.60 13.9312.85 #SME split into BuB & CoB#14Comparison: Q-o-Q (3 M) FEDERAL BANK YOUR PERFECT BANKING PARTNER RETAIL WHOLESALE Retail Agri BuB# CoB# CIB Total Advances -3% 5% 4% Advances 7% Deposits Performance Ratios 5% 2% 39649-42247 14915 -> 15661 -> 11134 11652 12416 12932 47093 -> 45689 125209128180 CASA CASA Ratio NRE Deposits Retail Deposits 6% 80 bps 33.6834.48 52786 55740 Net Interest Income Core Fee Income 2% 2% 61560 62505 Operating Profit 145783149278 Net Profit -4% 4% 24% 1380 -> 1437 288 -> 357 1007 -> 963 Cost Income Ratio Gross NPA % Net NPA % 31% 308 -> 404 Profit Per Employee (in Lac) 310 bps -13 bps -39 bps 30% 46.72 49.82 * Credit segments are realigned at the beginning of every FY. 2.84 -> 2.71 0.99 -> 0.60 9.86 - 12.85 -> #SME split into BuB & CoB#15Digital Migration 86% DIGITAL MIGRATION 28% YOY GROWTH IN ACTIVE USERS ON MOBILE BANKING 81% YOY GROWTH IN MOBILE BANKING VOLUME 120% YOY GROWTH IN UPI TRANSACTIONS 90% ACCOUNTS OPENED DIGITALLY 300+ API'S AVAILABLE 50+ NUMBER OF FINTECH PARTNERS 170+ RPA PROCESSES RUNNING FEDERAL BANK YOUR PERFECT BANKING PARTNER DIGITAL AT THE FORE, HUMAN AT THE CORE#16Digital Migration 10 10 Feddy A one of its kind omnichannel smart bot available through Web, WhatsApp, Google Assistant, Alexa & FB Messenger. FEDERAL BANK YOUR PERFECT BANKING PARTNER Video KYC An end to end digital & paperless customer acquisition platform through Video Conferencing launched. Vmest VMeet A dedicated online support tool for customers to connect with their RM's using Video Conferencing facility. IRIS & Face Authentication A first of its kind IRIS & Face Authentication methods for creating a fully contactless & highly secure login experience in our CBS for employees. 247 LJ DIGITAL AT THE FORE, HUMAN AT THE CORE 16#17Digital Migration Bharat Pe Expanding the Merchant Network Aligning with vision of deepening digital payments, Bharat Pe now serves more than 65 lakh customers. Federal Bank now processes the highest number of transactions for Bharat Pe - and this was achieved in a record time of 8 months. Number of Merchants (In Lakhs) 30 25 20 15 10 5 0 Sep-20 Oct-20 Growth in Transaction Count (In Lakhs)] 300 250 200 No.1 Partner Bank 150 23L+ Merchants 100 50 10L+ Transaction/Day Nov-20 Dec-20 0 Sep-20 Oct-20 Nov-20 Dec-20 FEDERAL BANK YOUR PERFECT BANKING PARTNER = T DIGITAL AT THE FORE, HUMAN AT THE CORE 17#18Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER REMITTANCE SOLUTION (9 APIs) Through the Remittance Fund Transfer API, fund transfer from outside of India is made easy. 13. Blockchain for cross border remittances •*ripple Cross Border remittances LuLu GROUP INTERNATIONAL UPI (10 APIs) The Unified Payments Interface (UPI) is an instant, real-time payment system developed by National Payments Corporation of India લ cointab UPI PSP LOAN SECURITY (1 API) APIs to create security and to link to an account number for various security types Lentra Loan Origanation System rupeek No tension instant Gold Loans FEDERAL INSTANT LOAN (9 Instant Loan Google Pay airtel Payments Bank paisabazaar Digital Lending com PAYMENTS (10 APIs) The Fund Transfer APIs are strategically driven solutions, that enable an easy money transfer services between Bank accounts in India. It facilitates ease in the transfer process using technology solutions like NEFT, RTGS, IMPS etc. BSNL Cashfree DEPARTMENT TMENT OF TREASURIES Payment Systems Payment Aggregator Payment Systems aurionpro Smart Branch mByom CONSULT NC AND MANAGEMENT moyen ELIVIC_S Agricultural Aggregation ACCOUNT OPENING (8 APIs) Federal Bank's ΑΡΙ for banking correspondence, facilitates account opening on behalf of the Bank. Lentra rupeek Loan Origanation System No tension instant Gold Loans ΤΑΤΑ CONSULTANCY SERVICES DIGITAL CREDIT (9 APIs) These APIs are offered to extend loan facility to Customers, through FinTech applications. NEW STREET TECH Your fast track to the future NEW STREET TECH Your fast track to the future Microlending TAB Banking Microlending paisabazaar Flexmoney Lending Loans on Checkout E-KYC (4 APIs) Federal Bank offers eKYc services in two variants 1) SDK version of eKYC 2) Web version of eKYC NEW STREET TECH Your fast track to the future Microlending rupeek No tension instant Gold Loans INSTANT LOAN @ CheckOut (4 APIs) When a Customer checks out through a Merchant's Point of Sale (POS) terminal, this API helps the Bank to offer convenient EMI option for the payment to the cusotmer. Pine Labs EMI on POS Checkout Bill Desk All your payments. Single location. Payu EMI on PG Checkout GOLD LOAN (5 APIs) Federal Bank helps customers get gold loans in times of a financial need. As gold loans are the quickest mode of availing instant cash, the Bank provides loans with attractive interest rates and flexible repayment options. rupeek No tension instant Gold Loans DIGITAL AT THE FORE, HUMAN AT THE CORE 18#19Digital Migration Fund Transfer FedMobile One stop shop for all banking needs Universal application- Bank agnostic 16:16 ... * FEDERAL BANK D a 121 = BANKING Investments 12:27 S... INVESTMENTS Overview My Investments Passbook Bill Payment ** 12:27. ** 19:30 Ε == FEDBOOK D Bill Payment View All Accounts Choose Category FEDERAL BANK YOUR PERFECT BANKING PARTNER State-of-the-art app security ADD ON SERVICES 12:28 S... Loans * 1=1 LOANS Overview My Loans Loan Requests 1 Life Style Services 15:20 S 个 Flights DEL Delhi (T View All + BOM Mumbai 6 +7 No of loans (8) Depart 13 Mar Return Add Return + Tomorrow and save more! Send Money BHIM UPI Scan & Pay Mare Total Investments * 5,42,006 Savings Account View All Accounts Current Value XXXX XXXX 5046 Check Balance Make an Investment SB FREEDOM View All Available Balance View Details 金 +1,91,678.49 0086349 1+1 Outstanding Loans Mini Statement Sunday, 01 Mar 2020 See where you spent Bank Deposit > Fixed, Recurring & Tax Saving Deposits SBINT:01-12-2019 to 29-02-2020[130701001 Rental DTH +1,402 Payments Send Money *{d}} <> * *] Mutual Funds Insurance Telecom Donations * 43,16,313 Total Amount Digital Gold > Digital Gold Wednesday, 05 Feb 2020 View Full Statement Tax Subscriptions Mobile Postpaid Electricity New Loan Broadband Postpaid Loan Against Deposit > AAD, Easy Cash, Fed Rise Request Loans > Home, Educational, Vehicle, Personal Send to Mobile Number Mutual Funds Loan Repayment Water Fastag > CASH: +20,000 Landline Telephone ELSS, Equity, Debt, Balanced Send to Account Number 88 EMI Calculator Monday, 13 Jan 2020 - Help me decide Education Fees Book LPG Cylinder Cable TV > Send to Self Account Unable to decide where to invest? CHRG/MOB ALERTDEC19 •*1 Upcoming Bills Saturday, 14 Dec 2019 Send to UPIID Send to MMID Schedule Payment III Home O III Economy Class 1 Traveller ☐ Show only non-stop flights Find Cheapest Flights Saved Loan Requests SBINT:01-09-2019 to 30-11-2019[130701001 Kerala Water Author... Water-3312214068 Pay bill +839 Vehicle Loan Request 55.555 Last Frited on 09/03/2020 Vodafone Postpaid (... Friday, 13 Dec 2019 Pay bill Mobile Postpaid-800646... 结 福 FedBook Loans Transactions Home Investments Loans Transactions Home Investments FedBook t Transactions - O III O Bangalore Electricit... Electricity-7288386000 Pay bill III DIGITAL AT THE FORE, HUMAN AT THE CORE 19#20Digital Migration Branch vs Digital Transactions (In Lakhs) 79.69% 48.22 12.28 Dec-19 82.64% 50.7 81.90% 50.64 85.52% 59.81 10.65 11.19 10.12 Mar-20 Jun-20 Sep-20 Transactions through Branch(Lakhs) Transactions through Digital Channels (Lakhs) Digital Share FEDERAL BANK YOUR PERFECT BANKING PARTNER 86.07% 11.22 Dec-20 69.36 YoY Growth in Digital Users • Mobile Banking monthly is around 9149 crores, highest ever even amidst the COVID crisis & a 81.96% YOY growth. • There is a YoY growth of 28% in active digital users. Mobile Banking Volume (In Crores) 47% 46% 9149 7909 36% 35% 6537 28% • Digital Share stands at 86.07%. 5028 5726 • Count of digital active users continues to increase. Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 DIGITAL AT THE FORE, HUMAN AT THE CORE 20#21Digital Migration BYOM Digital Personal Loans Loan book progress Debit Card Spends (In Crores) FEDERAL BANK YOUR PERFECT BANKING PARTNER 1354 1255 1104 1416 1436 1091 832 663 658 82953 89849 94573 72462 62500 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 No. of Loans Balance in Crore Fed-e-Biz 8212 6174 4805 4492 3503 464863 424532 391170 397698 289891 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Transaction Count Amount (Crores) Mar-20 Jun-20 Sep-20 Dec-20 BY M • 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 PineLabs, Innoviti at multiple merchant locations through POS machines. ⚫EMI through online channels ex. Bill Desk (Amazon), Flex Money (Flipkart & Myntra ) & PayU (MMT). • Fed e-Biz is the omni channel transaction banking platform for Fede biz corporates. •134% YOY growth in the platform and transaction volume has crossed 8,200cr, even amidst the pandemic. DIGITAL AT THE FORE, HUMAN AT THE CORE 21#22Business Parameters FEDERAL BANK YOUR PERFECT BANKING PARTNER 22#23Liability: Trends Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 45779 46774 49915 53152 56037 85751 89967 91984 92630 93241 CASA Demand Dep Other Retail Deposit Remittance Market Share 15.70% 15.55% 15.32% 16.54% 17.50% 31.46% 30.50% FEDERAL BANK YOUR PERFECT BANKING PARTNER CASA Ratio 32.02% in Cr 33.68% 34.48% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 CA & SA 38019 39195 42059 44318 46582 7465 | 7255 | Q3 FY20 Q4 FY20 7557 Q1 FY21 8467 9158 Q2 FY21 Q3 FY21 ■CA SA Cost of Deposits 5.10 FY17 FY18 FY19 FY20 HY FY 21 COD 4.87 Q2 FY21 Q3 FY21 23#24Credit Portfolio Distribution 33% 9% 12% 10% TOTAL LOAN BOOK 36% ■ Retail ■ Agri ■ BuB ■CB Yield on Advances ■ CIB 8.90 8.73 YOA 54% FEDERAL BANK YOUR PERFECT BANKING PARTNER ■ Retail ■ Wholesale 46% 61311 62695 61372 59510 58621 IQ2 FY21 59551 61458 62065 65699 69560 IQ3 FY21 in Cr Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 24#25Retail Banking FEDERAL BANK YOUR PERFECT BANKING PARTNER Retail Loan Book (Excl Agri & BuB) Housing LAP Auto Personal Others 23% 10659 9106 7801 8013 7694 60% 1492 1710 1294 1551 1645 3346 3231 3115 3134 3195 6884 7125 7009 7206 7489 17% 17564 18229 18201 18497 19043 ■ Retail ■ Agri ■BuB 11652 11134 10529 10512 10354 15661 14915 13051 13645 12646 36551 87878 87908 39649 42247 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 RETAIL BANKING Use of Digital channels in Auto Loan acquisition given greater focus and this is seen improving the TAT thus helping better customer profiles and improved business. BuB introduced simplified renewal process of ODCC accounts which can be completed in less than 30 minutes. Gold Loans registered record YoY growth rate of 67% and QoQ growth rate of 15.76 %, which is one of the best in the industry and crossed Rs. 14,000 Cr milestone Disbursals through Fintech enabled Gold and Micro lending platforms crossed Rs.2000 Cr. in Cr 25#26Wholesale Banking COB ■ Corporate FEDERAL BANK YOUR PERFECT BANKING PARTNER in Cr 22% 78% 49313 50725 49542 47093 45689 11998 11970 11830 12416 12932 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 WHOLESALE BANKING ➤ Focus on New name acquisition continues to yield result with 39 NTB clients added during the quarter in CIB and 50 NTB in CoB. These include several marquee names across sectors and geographies. ➤ New mandates bagged in BTI space getting traction for IPO/Bond issuance. ➤ Partnered with a leading Fintech to provide working capital solutions in supply chain space and with a large FI to finance energy efficient projects. ➤ Average Ticket Size of Wholesale Loan Book(CIB+CB): 22 Cr Average Ticket Size of CIB & CB Loans is 55 Cr & 7 Cr Respectively 26#27Fee Income: Distribution Fee Income Distribution : Vertical Wise 711 (In Cr) FEDERAL BANK YOUR PERFECT BANKING PARTNER 9 488 509 482 408 0 369 0 7 165 141 96 319 84 82 123 86 223 249 50 221 119 Q3 FY 20 Q4 FY 20 Q1 FY 21 Q2 FY 21 255 Q3 FY 21 Retail Wholesale Treasury Others Total Fee Income Distribution: Item Wise (In Cr) 65 55 22 22 40 83 445 106 19 482 101 141 32 509 59 20 20 36 59 82 22 24 304 80 35 34 488 8 26 44 76 76 70 27 36 711 56 369 13 64 15 32 63 85 56 63 27 Cards TPD-Third Party Distribution 408 65 Banking Processing Fee General Service Profit on Forex Commisions & & charges on Net Profit on charges Exchanges Loans sale of Investments Recoveries in assets written off & Other receipts Total etc ■Q3 FY 20 Q4 FY 20 Q1 FY 21 Q2 FY 21 Q3 FY 21 27#28Fee Income/Other income Q3 FY21 Q2 FY21 Q1 FY21 Q4 FY20 Q3 FY20 Y-o-Y % FEDERAL BANK YOUR PERFECT BANKING PARTNER Loan Processing Fee 101 82 44 56 63 60% Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee 211 174 103 209 191 10% Income Net Profit on Forex 357 45 32 24 76 56 -20% Transactions 311 15% Fee Income 357 288 171 341 311 15% Profit on sale of securities 106 141 304 369 65 62% Recovery from assets written off, Other 19 80 13 1 32 -40% Q3 FY20 Q3 FY21 Receipts & misc. Total Other income 482 509 488 711 408 18% in Cr 28#29Distribution : 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 Q3 FY21 Q2 FY21 Q1 FY21 45 1 29 3 1 23 27 23 8 9 31 11 2 3 26 103 20 6 24 103 2 Branches 1272 1271 1263 150 ATM/ 596 1948 1941 1936 Recyclers 12 12% 12% 16% Q3 FY21 16% Q2 FY21 18% 18% 54% 54% ■Metro ■ Urban ■Semi Urban ■Rural 29 29#30Distribution Network I 7710 Corporate 5% 7309 Commercial Banking 5423 (COB) 5130 Business Banking 5483 (BuB) 4894 7854 Agri 6764 Retail 15515 14541 6% 12% Network II 31-Dec-20 131-Dec-19 7405 6832 6079 5413 7807 16% 5882 60792 NR Business 51787 CASA 38007 30484 7% FEDERAL BANK YOUR PERFECT BANKING PARTNER in Cr 35031 37640 -7% 33% 22780 18375 24% 5544 17% 5089 9% 25% Bank's Market Share 1.09 1.18 ■DEP ADV 16771 13791 22% 12% 8% Market Share(Y-o-Y) Maintained Market Share in Advances & Deposits 30#31CRAR - How strong is your Bank? FEDERAL BANK YOUR PERFECT BANKING PARTNER in Cr Dec-20 Sep-20 Risk Weighted Assets Credit Risk 93847 91404 Market Risk 3808 3980 Operational Risk 10095 10095 Total RWA 107751 105479 Tier-1 Capital Funds 14003 14066 Tier-II Capital Funds 1416 1381 Total Capital Funds 15419 15447 CRAR Tier-I Tier-II 14.31% 14.64% 13% 13.33% 1.31% 1.31% 31#32Annexures FEDERAL BANK YOUR PERFECT BANKING PARTNER 32#33Balance Sheet & Shareholding Pattern FEDERAL BANK YOUR PERFECT BANKING PARTNER Q3 FY21 Q2 FY21 LIABILITIES Capital 399 399 Share Holding Pattern Reserves & Surplus 15246 14836 Deposits 161670 156748 Borrowings 12474 11043 Other Liabilities & Provisions 7058 6001 34% 29% TOTAL 196847 189027 ASSETS 1% Cash & Balance with RBI 6410 6120 21% Balances with Banks, Money at Call 18965 13529 14% Investments 34389 36253 Advances 125505 122912 Fixed Assets 465 457 ■Mutual Funds ■Fls/Banks ■ Flls ■ Corporates ■ Others Other Assets 11113 9756 TOTAL 196847 189027 in Cr 33#34Financials FEDERAL BANK YOUR PERFECT BANKING PARTNER in Cr Q3 FY21 Q2 FY21 Q-o-Q Q3 FY20 Y-o-Y Interest Income 3460 3488 -1% 3330 4% Interest Expenses 2022 2108 -4% 2175 -7% Net Interest Income 1437 1380 4% 1155 24% Other Income 482 509 -5% 408 18% Operating Expense 956 883 8% 819 17% Total Income 3941 3997 -1% 3738 5% Total Expense 2978 2991 0% 2994 -1% Operating Profit 963 1007 -4% 744 29% Total Provisions 559 699 -20% 303 84% Net Profit 404 308 31% 441 -8% Net Interest Margin (%) 3.22 3.13 9 bps 3.00 22 bps Cost to Income Ratio (%) 49.82 46.72 310 bps 52.40 -258 bps 34#35Top 10 Sectors in Wholesale Advance Portfolio Top 10 Sector wise exposure as a % of Total Advance FOOD/AGRICULTURAL PRODUCTS 1.24% BASIC METALS 1.32% CHEMICALS 1.37% TEXTILES INCLUDING JUTE & COIR 1.43% CONTRACTORS 1.93% FOOD PRODUCTS 1.97% POWER GENERATION & TRANSMISSION REAL ESTATE BUSINESS HFC NBFC 2.61% 3.66% 31.12.2020 5.04% FEDERAL BANK YOUR PERFECT BANKING PARTNER 6.45% 35#36Investments / Subsidiaries & JVs Major Investments Entity Federal Operations & Services Limited (FedServ) Fedbank Financial Services Limited IDBI Federal Life Insurance Company of India Limited Equirus Capital Private Ltd Subsidiaries & 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. FEDERAL BANK YOUR PERFECT BANKING PARTNER % of stake 100.00% 74.00% 26.00% 19.90% •Total AUM 4300+ 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 36#37Fedbank Financial Services Ltd. (FedFina) Federal Bank stake in FedFina FEDERAL BANK YOUR PERFECT BANKING PARTNER in Cr Q3 FY21 Q2 FY21 Q-o-Q Q3 FY20 Y-OY 100% 82.59% 74% 74% Net Worth 810 716 13% 603 34% AUM 4,337 Total Revenue 175 163 7% 119 46% 3,780 342 NII 86 84 3% 55 55% 300 376 592 705 PPOP 39 38 3% 16 141% 2,004 665 1,239 PBT 20 4 362% 14 39% 1,429 431 1,208 444 352 PAT 15 8 98% 11 40% 100 786 1,675 545 1,015 340 434 GNPA (%) 0.82% 0.99% -17 bps 1.23% -41 bps FY18 FY19 FY20 Q3 FY21 NNPA (%) 0.64% 0.80% -16 bps 1.07% -42 bps ■Gold Loan Medium Ticket LAP Small Ticket LAP & HL Others Business Loan CAR (%) 23.7% 23.2% 50 bps 18.9% 480 bps • HIGHLIGHTS Increase in Collection Efficiency (CE%) post lockdown CE% for installment loans at 94% of the pre-COVID level • Certified Great Place To Work second time in a row 28 New Gold Loan branches launched in Q3 FY21 12 360 2029 *.4,337 Cr STATES BRANCHES EMPLOYEES LOAN BOOK AA- (Stable) CREDIT RATING (IND-RA) 23.7% CAPITAL ADEQUACY 37#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 IND AA CARE AA Pvt Ltd, CARE Fixed Deposits and Certificate of Deposits enjoy highest rating in that class. 38#39Disclaimer 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. 39#40Thank You FEDERAL BANK YOUR PERFECT BANKING PARTNER