Awards & Recognitions

Our approach to building IDFC FIRST Bank (2/3) Section 3: Approach to build IDFC FIRST Bank High Asset Quality In retail which is our main area of growth, we have a track record of 12 years of maintaining our Gross NPA at ~2% and net NPA of ~1%. Our portfolio has been subjected to multiple stress-tests, including economic slowdown (2010-2014), Demonetization (2016), GST implementation (2017), ILFS crisis (2018), Covid (2020- 21). Even post COVID, retail NPA has reverted to the long-term averages and improved further to Gross NPA of 1.65% and Net NPA of 0.55% as of March 31, 2023 Strong Profitability Despite significant setup investments in our bank, we've seen a steady rise in our ROE since the merger, increasing from near-zero to 10.95% in FY23. This is largely due to our strong incremental profitability. Our unit economics are very robust, with incremental ROE of over 20% in our primary growth areas of retail and commercial lending, even after adjusting for operating expenses, credit costs, and taxes. Additionally, our wholesale business is generating an impressive ROE of over 15%. Technology The bank is committed to investing in a modern and adaptable technology architecture that will support its future growth. This investment includes developing advanced capabilities for predictive analytics in key areas such as credit underwriting, portfolio management, collection strategy, and fraud risk mitigation. 10 IDFC FIRST Bank

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