IDFC FIRST Bank Risk Management & Asset Quality
Section 3: Guidance 2.0
Guidance 2.0 (FY24 - FY29): Key Targets for FY29
• The Bank has exceeded, met or most likely to meet most targets as provided under Guidance 1.0.
• We have a strong proven business model that is incrementally very profitable. Basis this model, we could do necessary investments and expenses, and yet
improve profitability during FY 19-24. We have far greater visibility while providing Guidance 2.0 as compared to visibility of at time of Guidance 1.0
• We are building a world class bank with highest levels of corporate governance, a consistent balance sheet growth of ~20%, with strong asset quality of
GNPA < 1.5% and net NPA of < 0.4%, with ROE of 17-18%, with contemporary technology, unique business model, and high levels of Customer Centricity.
Particulars
31-Dec-2018
31-Dec-2023
31-Mar-2029
Assumptions
Deposits
Branches (#)
206
Customer Deposits (Rs Cr)
38,455
- CASA Deposits (Rs Cr)
5,274
897
176,481
85,492
-Term Deposits (Rs Cr)
33,181
90,990
1700-1800
585,000
2,85,000
3,00,000
Will open based on requirements to meet Deposit goals
Assets
Loans & Advances* (Rs Cr)
104,660
1,89,475
Total Assets (Rs Cr)
156,916
270,738
5,00,000
7,00,000
Asset quality
GNPA %
1.97%
NNPA %
0.95%
2.04%
0.68%
1.5%
0.4%
Guidance 2.0 at 5Y CAGR of 24.8% vs current YoY growth rate of 42.8%
Guidance 2.0 at 5Y CAGR of 24.5% vs current YoY growth rate of 28.6%
Guidance 2.0 at 5Y CAGR of 25.2% vs current YoY growth rate of 59.4%
Guidance 2.0 at 5Y CAGR of 20.3% vs current YoY growth rate of 24.5%
Guidance 2.0 at 5Y CAGR of 19.8% vs current YoY growth rate of 22.3%
Currently, GNPA is 1.66% as of 31-Dec-23 excluding Infra loans
Currently, NNPA is 0.47% as of 31-Dec-23 excluding infra loans
Profitability
Profit (Rs Cr)
ROA %
ROE %
-1,538^
2,232**
1.2%
12,000 13,000
At about 1.9-2% of estimated ROA of FY29
10.7%
1.9-2.0%
17-18%
IDFC FIRST Business model naturally geared for 2% ROA
IDFC FIRST Business model naturally geared for 18% ROE
Note: Current growth rate is the YOY growth for the period ending on 31 December 2023.
As per strategic plan, the Bank will exit Legacy Infrastructure Financing portfolio, hence the reference taken for guiding NPA excludes Infra financing portfolio.
Λ
* includes credit substitutes; ^ No. is for Q3-19; **For 9M-FY24,
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IDFC FIRST
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