Capital First Investor Presentation September 2018

b. Retail, Rural & SME Loans Section 7: Risk Management & Asset Quality Benefit Bank has utilized the new Indian digital Ecosystem for better controls in lending Stage of Loan Processing KYC Risk Scorecards Earlier New Ecosystem · Physical copies of Passport, Ration Card, etc. Identity is Biometric • Regression and Judgement based models AI / ML Now Low seasoning of Bureau Bureau • Lesser records (300m) · Low awareness of credit bureau • Static Photo test Fraud Control •Traditional eyeballing method for Frauds Cash Flow and Financial Analysis Repayment Mandate Collections No Fraud database, Scorecard Physical copies of financials, bank statements, salary slips, Income Tax Returns No alternative data sources Manual calculation of financial ratios basis photocopied document PDCS/SI/ NACH for repayment • Tele-calling, field collections Monitoring • Batch Mode, once a month Bureau is evolved Advanced real time fraud check mechanism Bank statements, GST records are electronic NACH is electronic UPI, BOT • Biometric KYC - eKYC, CKYC, Aadhaar OTP based KYC Advanced Scorecards based on Logistic Regression and Machine Learning algorithms High seasoning, better data quality • More records (600m) • High awareness and sensitivity among customers Live Facial recognition technology, latitude-longitude marker Automated identification of fraudulent transactions Availability of Fraud Database and Scorecards Digitized .pdf bank statement, salary slips, tax returns Digitized alternate data sources like GST, Telecom, etc. Automated calculation of financial ratios and cash flow analysis Electronic mandate through- NACH High Quality Identity check Better Risk management Reduced credit risk Better fraud management More accurate cash flow analysis Better collections • Collection through sending UPI link, calling using bots to Frictionless, lesser use customer Analytics is • Real time monitoring of portfolio by various cuts real time of tele-calling Better quality of portfolio 34 IDFC FIRST Bank

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