Investor Information - Federal Bank

Q3 FY 13

Investor Information

2

Q3 FY 13 Q2 FY 13 Q3 FY 12

ROA 1.37 1.43 1.41

ROE 13.56 14.33 14.56

Cost/Income 43.82 45.82 37.13

Net NPA% 0.92 0.68 0.74

Profitability Measure

Shareholder Value

Measure

Efficiency Measure

Risk Appetite Measure

Key Ratios

3

Strategic Focus

• Retail

• Agriculture

• SME

Assets

• Customer Deposits

• NRI

• Savings Bank

• Current Accounts

Liability

• NRI

• SME

• Agriculture

• Gold

Strategic

Segments

• Risk based NIM

• Fee Income

• Wholesale Banking

• SME

Revenue

Growth

• Centralization• Business Analytics

Efficiency

• Independence in Sourcing & underwriting

• Dedicated Collection Team

• Basel II & RAROC

Risk Management

• Look & Feel• Extensive branding

outside Kerala• Identified 5 Potential

States for SME & Agriculture

Branding & Network Expansion

• Skill Build• Employee

Engagement• Recruitment• Reward Management

HR

Growth with Quality

4

Shareholders Value

RETURN ON EQUITY (%)RETURN ON ASSETS (%)

EARNINGS PER SHARE BOOK VALUE PER SHARE

1.41

1.64

1.261.43 1.37

Q3 FY 12 Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13

14.56

16.74

13.1214.33

13.56


47.21

55.56

44.51

50.3 49.29


330.19333.61

344.73

357.31

369.63


5

Net ProfitRs in Cr

Consistency in Profitability

202

211

Q3 FY12 Q3 FY 13

539

616

9M FY12 9M FY 13

6

Robust Growth in Customer Deposit

Rs in Cr

11102

2295

7873

25472

46742

10930

2546

7169

28292

48937

11977

2514

6999

29069

50558

11758

2598 5408

29754

49518

12324

2879 5933

30472

51607

Savings Deposit Demand Deposit Purchased Funds Other Retail Deposit Total Deposit


28.2127.39

28.3528.71

29.20

CASA Other Dep

28%

17%

43%

12%29%

11%

42%

17%

CASA High Value Resident Retail TD NRI TD

7

Improving Deposit Mix

CASA

Q3 FY 13

Q3 FY 12

Deposit Mix

Q3 FY 12

Q3 FY 13

29%

29%

42%

27%

27%

46%

28%

28%

44%

30%

31%

39%

30%

30%

40%

Retail Adv SME & Agri Corporate Adv

8

Quality Growth in Credit

Q3 FY 12

Q3 FY 13

Rs in Cr9

87

0

10

62

3

10

91

6

11

37

5

12

20

1

98

63

10

47

2

10

91

8

11

50

3

12

05

3

14

57

1

17

71

7

17

33

9

14

57

0

16

40

5


Retail Adv SME & Agri Corporate Adv

Risk Grade Q2 FY13 Q3 FY13

AAA /AA 22.81% 24.04%

A 9.14% 7.60%

BBB 14.32% 16.82%

< BBB 15.66% 12.82%

Unrated 38.07% 38.72%

9

Corporate Loan – Portfolio

Risk Grade Q2 FY13 Q3 FY13

FB1 7.95% 20.66%

FB2 26.59% 23.34%

FB3 37.56% 32.38%

Others 27.91% 23.62%

Investible grade from 46.27% to 48.46%

Corporate Assets

48.46%

76.38%

0.750.70

1.56

0.68

0.480.41

0.52

0.37

0.52

Q3 FY 11

Q4 FY 11

Q1 FY 12

Q2 FY 12

Q3 FY 12

Q4 FY 12

Q1 FY 13

Q2 FY 13

Q3 FY 13

1.68

1.49

1.60

1.35

1.00

1.17

0.89

0.91

0.60

Q3 FY 11

Q4 FY 11

Q1 FY 12

Q2 FY 12

Q3 FY 12

Q4 FY 12

Q1 FY 13

Q2 FY 13

Q3 FY 13

10

Improving Asset Quality: Focus Segments

Fresh Slippage / Total Advance

SME RETAIL

11

Provision Coverage Ratio at 74.53

RESTRUCTURED ADVANCE

Sustained Reduction in Slippages

Fresh Accretion

Q3 FY

12

Q4 FY

12

Q1FY

13

Q2 FY

13

Q3 FY

13

Retail 46 43 56 42 64

SME 90 95 91 105 72

Corporate 190 132 133 0 215*

Q3 FY 13 Q2 FY 13

No. Amount No. Amount

Standard 42 212 24 231

Sub-standard 5 5 0 0

TOTAL 47 217 24 231

Rs in Cr

13631301

1409 1435

1564

0.7

4

0.5

3 0.6

2

0.6

8

0.9

2

0

0.5

1

1.5

2

2.5

0

200

400

600

800

1000

1200

1400

1600

1800


GROSS NPA NET NPA %

*- Excluding 71 Cr Slipped into NPA and sold to ARCs during the quarter

12

CREDIT PORTFOLIO

4% 4%

31%

40%

7%

14%

1%

Auto Education Gold Housing

Mortgage Others Personal

Retail Loan Book

AGRI, 38

CHEMICALS, 497

CONSTRUCTION, 4

06FOOD, 139

HOTEL, 148INFRA -

OTHERS, 252

INFRA -

POWER, 1857

INFRA-

ROAD/PORT, 1057

IRON &

STEEL, 1336

MACHINERY, 298

MANUF -

OTHERS, 804MINING, 1005

NBFC, 3264

OTHERS, 620

SERVICE, 901

TEXTILE, 399

TRADING, 2874

TRANSPORT, 832

Corporate PortfolioRs in Cr

STATEOpened up to

FY 12FY13

Opened up to

Q3 FY 13

Andhra Pradesh 29 29

Assam 10 2 12

Bihar 3 3

Chandigarh 3 3

Chattisgarh 3 3

Dadra & Nagar Haveli 0 1 1

Daman & Diu 0 1 1

Goa 6 6

Gujarat 28 3 31

Haryana 11 11

Jammu & Kashmir 1 1

Jharkhand 8 8

Karnataka 68 7 75

Kerala 525 28 553

Madhya Pradesh 3 3

Maharashtra 81 1 82

Meghalaya 2 2

Mizoram 1 1

Nagaland 1 1 2

New Delhi 22 22

Orissa 7 4 11

Puducherry 2 2

Punjab 15 4 19

Rajasthan 7 7

Tamil Nadu 82 17 99

Uttar Pradesh 12 2 14

Uttarakhand 1 1

West Bengal 19 2 21

Tripura 0 1 1

Total 950 74 1024

Expanding Footprint

13

No of ATMs

No of Branches

672

743

950 9771010

1024

732803

1005 10411100

1137

FY 10 FY 11 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13

14

Q3 FY 13 V/S Q3 FY 12

Net Profit at Rs 210.78Cr (up by 4.41%)

Other Income gone up to Rs 203.85Cr (up by 47.79%)

Total income increased to Rs 1725.62Cr(up by 7.53%)

Operating profit at Rs 393.94 Cr( -5.92%)

NIM at 3.47% (-12.11%)

EPS at Rs 49.29(47.21)

Net NPA at 0.92% (0.74%)

BV per Share at Rs 369.63(Rs 330.19)

ROE at 13.56% (14.56%)

ROA at 1.37% (1.41%)

Cost to Income at 43.82% (37.13%)

Capital Adequacy Ratio at 14.92% (15.91%)

Performance Highlights

15

Balance Sheet

Q3 FY 13 Q3 FY 12

LIABILITIES

Capital 171.05 171.05

Reserves & Surplus 6151.52 5476.81

Deposits 51607.31 46742.46

Borrowings 3562.37 3030.22

Other Liabilities & Provisions 2946.71 2550.51

TOTAL 64438.96 57971.1

ASSETS

Cash & Balance with RBI 2797.31 3256.4

Balances with Banks, Money at Call 625.02 918.11

Investments 19432.95 18644.6

Advances 39494.03 33206.07

Fixed Assets 381.28 307.67

Other Assets 1708.37 1638.2

TOTAL 64438.96 57971.1

Rs in Cr

16

Key Financials

Rs in Cr

Q3 FY13 Q2 FY13 Q-o-Q Q3 FY12 Y-o-Y

Interest Income 1521.77 1525.63 -0.25% 1466.83 3.75%

Interest Expenses 1024.42 1019.72 0.46% 938.8 9.12%

Net Interest Income 497.35 505.91 -1.69% 528.03 -5.81%

Other Income 203.85 139.41 46.22% 137.93 47.79%

Total Income 1725.62 1665.04 3.64% 1604.76 7.53%

Total Expenditure 1331.68 1315.4 1.24% 1186.04 12.28%

Operating Profit 393.94 349.64 12.67% 418.72 -5.92%

Net Profit 210.78 215.1 -2.01% 201.87 4.41%

Net Interest Margin (%) 3.47 3.58 -3.07% 3.94 -12.11%

Cost to Income Ratio (%) 43.82 45.82 -4.36% 37.13 18.03%

17

Treasury Portfolio

Q3 FY 13 Q2 FY 13 Q3 FY 12

HFT 1649.11 657.09 690.92

AFS 4579.07 4193.09 5992.18

HFT+AFS 6228.18 4850.18 6683.1

HTM 14541.43 15207.34 13614.97

Total Investments 20769.61 20057.52 20298.1

SLR 13985.87 14383.89 13806.23

Non-SLR 6783.74 5673.63 6491.84

Rs in Cr

18

Margins

Q3 FY 13 Q2 FY 13 Q3 FY 12

Yield on Advance 12.40 12.75 12.9

Cost of Deposit 7.64 7.61 7.57

Yield on Investments 8.94 7.94 7.79

Cost Income Ratio 43.82 45.82 37.13

Net Interest Margin 3.47 3.58 3.94

Risk Adjusted NIM 3.21 3.44 3.04

(%)

19

Provisions & Expenses

PROVISIONSRs in Cr

Q3 FY 13 Q2 FY 13 Q3 FY 12

Investment

Depreciation-18.6 -4.54 23.21

Loan Losses 36.96 20.05 92.02

Other

Purpose56.03 14.94 0.02

Tax 108.77 104.09 101.6

TOTAL 183.16 134.54 216.85

Q3 FY 13 Q2 FY 13 Q3 FY 12

Staff expense 163.49 159.44 138.45

Depreciation 20.4 17.91 13.66

Rent, Taxes 33.3 32.32 24.3

Printing 3.19 3.01 2.41

Advertisement 2.9 5.93 2.87

Postage etc 7.78 7.59 7.37

Repairs 12.48 11.89 10.44

Insurance 12.02 10.88 11.75

Others 51.7 46.71 35.99

TOTAL 307.26 295.68 247.24

OPERATING EXPENSES

20

Other Income

Rs in Cr

Q3 FY 13 Q2 FY 13 Q3 FY 12

Exchange, Commission &

Brokerage Income32.84 33.39 33.31

Other Fee Income 51.99 45.37 34.03

Net Profit on Forex Transactions 20.45 12.14 27.66

Profit on sale of securities 86.14 35.81 15.63

Recovery from assets written off 13.19 10.43 27.68

Other Receipts -0.76 2.27 -0.38

Total 203.85 139.41 137.93

54%

46%

Total Deposits

21

Business Distribution

38%

62%

Total Advances

Kerala Outside Kerala

Total Deposits

42936 47263

46742

48937

50558

49518

51607

33017

34644

34304 3

8812

39173

37448

40660

117 117

138161

124

139

204

75

95

115

135

155

175

195

215

235

0

10000

20000

30000

40000

50000

60000

Q1 FY 12 Q2 FY 12 Q3 FY 12 Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13

DEPOSITS ADVANCES Other Income

22

Awards, Accolades & Recognitions

Best Bank for IT for internal effectiveness among small Banks

Recognition for providing banking channel in all villages allotted to the Bank for implementing Financial Inclusion program

Govt. of

Kerala

Excellence in In-house Magazine

Bank`s Aadhaar (UID) Based Authentication for Payments

Visa Money Transfer using Visa Debit Cards

Innovative Cost Management Measures

Global CSR Award for Best Corporate Social Responsibility practice overall

Golden Peacock Award for Best Corporate Social Responsibility (CSR) Initiatives

23

External Ratings

Fixed Deposit

Certificate of Deposit

Bonds

Bonds

P1+

AA- (Ind)

AA

• The Fixed Deposits and Certificates of Deposits enjoy the highest rating in that class

• Bonds have been a rating, which are considered to offer high safety and carrying

very low credit risk

24

Subsidiaries & JVs

• Bank’s Joint Venture Life Insurance Company, in association with IDBI Bank and Ageas

• Federal Bank holds 26% equity in the J.V.

• Started selling life insurance products from March 2008

IDBI Federal Life Insurance Co. Ltd.

• Fully owned subsidiary of the Bank with NBFC license

• Marketing Retail Asset Products of the Bank

• Retail Hubs established at major centres all over India

• Separate mechanism established for speedy and dedicated processing of retail loans sourced through this channel

FedBank Financial Services Ltd.

• Representative Office at Abu Dhabi, established in 2008

• Gateway of the Bank to the whole of Middle East

• Increased the reach of the Bank among Non-Resident Indians in the Gulf countries

UAE Representative Office

25

Investments/ Share Holding

Entity % Equity

Fedbank Financial Services Limited 100.00%

IDBI Federal Life Insurance Company of

India Limited26.00%

Credit Analysis and Research Limited 5.00%

United Stock Exchange of India Limited 6.00%

Experian Credit and Information Company

of India Limited5.00%

Share Holding PatternMajor Investments

16%

6%

44%

10%

23%

Mutual Funds FIs/Banks FIIs

Corporates Others

26

Thank You

Investor Information - Federal Bank

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