Investor Presentaiton

Section 6: Asset Strategy for IDFC FIRST Bank as guided at the time of merger in December 2018. • Growth of Assets: . • • The Bank plans to grow retail loan assets from Rs. 36,236 crores (December 31, 2018) to over Rs. 100,000 crores in the next 5 years The Bank plans to wind down loans to infrastructure to NIL within five years ( Rs. 22,710 as of 31 December 2018). The Bank plans to reduce the total Wholesale loan assets (including the Infrastructure Loans) from Rs. 56,809 crores (December 31, 2018) to Rs. 40,000 crores by March 2020 in order to rebalance and diversify the overall Loan Book. Thereafter, the Bank plans to maintain it at the similar levels for the next 5 years and would grow the business based on opportunities available at the marketplace. Diversification of Assets: We recognize that loan book of the bank needs to be well diversified across sectors and a large number of consumers. The Bank plans to increase the retail book composition from 34.62% to 70% within 5 years and set the target to take it to 80% thereon. ⚫ Gross Yield Expansion: As a result of the growth of the retail loan (at a relatively higher yield compared to the wholesale loans), the gross yield of the Bank's Loan Book was initially guided to increase from 9.4% (as per Q2-FY19, pre-merger) to more than 12% in the next 5 years, however we now upgrade our guidance and project the yield to be at 13.5% in the next 5 years. The bank will expand Housing loan portfolio as one of its important product lines. 48 IDFC FIRST Bank

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