Awards & Recognitions

c. Cost to Income Ratio Section 9: Profitability & Capital Bank has reduced Cost to Income ratio from 95% to 72% in 4 years, expected to drop further going ahead.. • During the last three years the bank had to make significant investments in building liabilities and credit card franchise . . Despite this, the cost income issue has come down from 95% to 72% because of the strong incremental unit economics at the bank which is allowing the bank to make the investments as mentioned above. If the high cost legacy borrowings are replaced with current cost of funds, the cost to income for FY23 would be 69.68%. • Cost to income will further come down with scale Core Cost to Income (excluding Trading Gains) Ratio % 95.13% 85.22% 78.79% 77.79% 76.86% 72.54% Q2 FY19 H2 FY19 FY20 FY21 FY22 (Pre-Merger) FY23 52 IDFC FIRST Bank

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