Highlights of Q3 FY22 Results

Key Excerpts from MD & CEO's letter in Annual Report 2020-21 Section 3: Vision, Mission & Culture of the Bank usually renUS d profitability are carrying rgely legacy, are replaced r Bank, you ability of our ump straight ncremental ur Bank. I class bank irst values, We make products with transparent pricing and lees. Working on the theme of Customer First, we came up with many unique features as follows: We advise our product teams to design products in such a way that it is meant to be sold to our "near and dear" ones. ■ Monthly credits: We have started "monthly" credit of interest on savings accounts, against the industry practice of Quarterly credits. So, our customers earn "interest on interest" monthly on their savings accounts. To the best of our knowledge, no large 21-22 is loan book tandards, ady been ect to see . Q3 and keep our ban book. g a 2-1-2 of 1% and a steady borrowings of our DFI background, and these are the challenges of converting a DFI into a bank. When our Bank will replace this at say, 5.0%, we would save about * 1,000 crore per year on an annuity basis compared to today. This is a legacy issue on the liability side and will go away with time. When our bank will replace this at say, 5.0%, we would save about 1,000 crore per year on an annuity basis say that were Don't underestimate the power tayed motivated of the 50% CASA Bank with a OVID. They were ssist customers. powerful and tested lending are scheme for salary credit to machine attached to it. loan, extension ths, scholarship until graduation, hing allowance of ated this greatly. zation program. ew products. We ank. Our senior bnus cuts to lead I express our sincere thanks to our regulator the Reserve Bank of India who have constantly guided us on our approach and supported us throughout. Our Board members are eminent people with rich experience, have great intellect, highest levels of integrity and have constantly guided the Bank with strategic inputs and towards very high standards of corporate governance. I sincerely thank our customers for hanking with us I also loans profitably which has multiplied our market opportunities. Reducing our savings account interest rates had another positive side benefit; we can now participate in prime Home loans profitably which has multiplied our market opportunities. lucing Concentration risk: Deposits from our Top depositors have reduced from 40.0% of customer osits at merger to only 7.7% as of March 31, 2021. rink mitigation meaALLA You can b. C. d. from large corporate accoun finance company, a finan Mumbai based Toll Road based power account, a te few other such accounts cycle in infrastructure financ financial conglomerates gol exposure to the telecom ac the issues are behind us. Infrastructure financing because of dependence or and dependence on ecosyst limited control. We have b outstanding to infrastructure merger to 10,808 crore as On the Corporate Bank implemented good controls recent portfolio performanc Significant reduction in th list: We have brought down i. 2- 1-2 Formula: We will be targeting a 2-1-2 formula, i.e. Gross NPA of 2%, Net NPA of 1% and provisions of 2% on funded assets on a steady state basis. We will be targeting a 2-1-2 formula, i.e. Gross NPA of 2%, Net NPA of 1% and provisions of 2% on funded assets expect mortgage backed loans to form 40% of our loan book in due course. We expect mortgage backed loans to form 40% of our loan book in due course. Credit Costs: Our provisions for FY 21-22 is expected to be only 2.5% of the average loan book which is quite reasonable by industry standards, of which a substantial portion has already been Thus our incremer is estimated at 18 b. Strong increm Lending busines business ROE is But you are not ye because of the fol C. Higher cost of currently: As of crore of liabilities borrowings of our challenges of com Bank will replacet * 1,000 crore per 23 IDFC FIRST Bank

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