IDFC FIRST Bank: Quarterly Income and Business Overview

Section 4: Strong improvement in Net Interest Margin % • • • The NIM of the bank has accelerated to 5.09% post merger (Q4-FY21) despite accounting for reversal of Interest on Interest of Rs. 55 crore. Interest income from the loans originated through Business correspondents being booked net of the origination and servicing expense incurred by business correspondents. Effective from Q4 FY21 such income is now booked as gross interest income and the origination expenses pertaining to this book is included in the operating expense line of the Bank. For the fair comparison purposes, the previous period interest income and opex figures, and as a result, the NIM% have been reinstated. As per our earlier guidance, we aspire to take it to 5-5.5% in the next 5 years. We are on track for reaching there. 4.86% 4.91% 5.04% 5.09% 4.61% -> 4.16% Post - Merger 3.10% 3.69% 3.24% 3.23% (Pre-Merger) 1.84% Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Section 4: Key Business & Financial Parameters 48 43 IDFC FIRST Bank

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