IDFC FIRST Bank: Quarterly Income and Business Overview

Results Update: IDFC FIRST Bank: Strong Strides across all the Strategic Priorities 4. Asset Quality of the Bank remains resilient • Bank's Gross NPA marginally improved by 3 bps to 4.15% as of March 31, 2021 as compared to 4.18% as of December 31, 2020 (proforma). . Bank Net NPA improved by 18 bps to 1.86% as of March 31, 2021 from 2.04% as of December 31, 2020 (proforma). • Bank's Gross & Net NPA were 2.60% and 0.94% respectively as on March 31, 2020 which increased in FY21 due to COVID-19 impact. • Provision Coverage Ratio (PCR) improved by 388 bps to 56.23% as of March 31, 2021 from 52.35% as of December 31, 2020 (proforma). The PCR is at 64.95% including the additional COVID-19 provision of Rs. 375 crore made in Q4-FY21 and carried forward to FY22. Asset Quality on Retail Loan Book: • • Retail Asset Gross NPA increased by 13 bps to 4.01% as of March 31, 2021 from 3.88% as of December 31, 2020 (proforma). Retail Asset Net NPA improved by 45 bps to 1.90% as of March 31, 2021 from 2.35% as of December 31, 2020 (proforma). The GNPA and NNPA as on March 31, 2021 are higher by 175 bps and 77 bps respectively from the Pre-COVID average GNPA and NNPA of 2.27% and 1.13% respectively (details provided in Page no 41). This is considered to be quite normal considering the pandemic situation. The management believes, as the economic activities revive, a significant portion of overdues will be collected bring the GNPA and NNPA back to pre-COVID level. The Bank has implemented a list of initiatives, specifically in credit policy and collections to factor for COVID-19 impact on its retail loans and the results of the same have been very positive. The New to Credit customers represent only 10% of the disbursals (by value) in Q4-FY21 as compared to 18% in Q4-FY19. . • 83% of the customers sourced (by value) now in Q4-FY21 has Credit Bureau Score above 700 as compared to 61% in Q4-FY19. The overall collection efficiency for standard loans improved every month since July 2020 and in March 2021, it was near 100 % of the pre-covid (Feb-20) levels. . Going forward, the Bank would continue to actively monitor the portfolio quality and tighten credit standard further in the context of the second wave of COVID-19 pandemic. 7 IDFC FIRST Bank

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