Key Messages

Operating performance continues

to be strong (46% growth Y-o-Y)
Quarterly Net Income crosses
Rs.1000 Cr

Liability franchise remains a

core strength
CASA ratio @ 34.66 %

Growth Enablers in place

NIM maintains growth trajectory

Balance Sheet grows by 26% Y-o-Y

& 11% Q-o-Q (Rs.1.11 L Cr)

First Bank in Country to launch

UPI based POS machine

Total business grows by 27% Y-o-Y

& 7% Q-o-Q (Rs.1.62 L Cr)

Significant uptick in digital

adoption

Gaining share Pan India.

Asset Quality remains stable

Credit cost contained @ 0.64%

Consistent Credit growth over last

seven quarters (32% growth Y-o-Y)

Core Fee income grows by 33% YoY

Opened new representative office

at Dubai.

Performance Highlights (Y-o-Y)

Savings Account

32%

Net Interest Income

Current Account

38%

NIM

Retail Deposit

21%

Operating Profit

46%

Retail Advance (Excl Gold)

35%

Fresh Slippage

29%

SME Advance

16%

Capital Adequacy (CRAR)

12.28%

Wholesale Business

53%

Provision Coverage Ratio

31%

3.32%

71.01%
3

Core Performance Indicators

Cost to Income ratio (in %)

Consistent growth in NII (in Cr)

791

59

57

726
686

692

Q4 FY16

Q1 FY17

54

52

55

605

Q3 FY16

Q2 FY17

Q3 FY17

Q3 FY16

Q4 FY 16

Q1 FY17

Q2 FY17

Q3 FY17

Comparison : Y-o-Y

Deposits

Advances

Performance

Ratios

CASA

CASA Ratio

NRE Deposits

33%

257
bps

22%

2400531973

32.1034.66

2838134547

7479292236

Retail+Agri

SME

Wholesale

Total Advances

23%

16%

53%

32%

2283728084

1403316324

1666825531

Net Income (NII+OI)

Other Income

Operating Profit

34%

44%

7891055

183263

46%
325475

Total Deposits
23%

5353870439

Net Profit

26%
163206

Cost Income ratio

Gross NPA%

Net NPA%

Profit per Employee

375
bps

38
bps

8
bps

28%

58.72 54.97

3.152.77

1.661.58

5.587.13

Comparison : Q-o-Q (Sequential)

CASA

Deposits

Performance

Ratios

NRE Deposits

Total Deposits

362
bps

6%

7%

31.0434.66

3245934547

8629992236

Retail+Agri

SME

Wholesale

Total Advances

5%

1%

14%

8%

19%

2678731973

Advances

CASA Ratio

2675328084

1623516324

2245125531

6543970439

Net Income (NII+OI)

Other Income

Operating Profit

Net Profit

1%

Flat

2%

7%
9881055

262263

Cost Income ratio

Gross NPA%

305
bps

51.9254.97

1
bps

2.782.77

475475
Net NPA%
3
bps

1.611.58

201206

Profit Per Employee

2%

6.967.13

Key Indicators
Q3 FY17 Q2 FY17 Q1 FY17 Q4 FY16 Q3 FY16
Book Value

49.94

48.63

47.07

46.24

47.86

EPS

4.74

4.68

3.89

0.24

3.79

Customer Base

80.50

78.16

76.42

75.13

73.52

CASA + Deposits <1

Cr
(% of Total Deposits)

92%

89%

93%

92%

93%

ROA

0.78

0.88

0.76

0.05

0.77

ROE

9.62

9.78

8.37

0.51

8.0

Cost/Income

54.97

51.92

54.19

56.78

58.72

Net NPA%

1.58

1.61

1.68

1.64

1.66

(Per Share in )

Shareholder Value

Granularity

Profitability

Efficiency

(In Lakhs)

Steady improvement in Asset Quality ratios

Fresh Accretion

Q3
FY17

Q2
FY17

Q1
FY17

Q4
FY16

Q3
FY16

Retail

86

63

67

85

68

Agri

14

26

34

43

16

SME

119

135

134

154

111

Wholesale

55

42

45

254

192

Total

273

266

280

536

386

Q3 FY17
TYPE

Q3 FY17

Q2 FY17

NPA

NPA

Retail

368

312

Agri

158

156

SME

901

828

Wholesale

525

523

Total

1952

1820

1102

1040

Business

Gross
NPA

Net NPA

Q2 FY17

Balance

Of which
Bonds

Balance

Of which
Bonds

STANDARD

1453

101

1493

72

NPA

511

228

519

228

TOTAL

1964

329

2012

300

Security Receipts

No Sale to ARCs
No Conversion to Off-balance sheet

NPA Composition

(Rs. in Cr)

Restructured

Q3 FY17

Q2 FY17

613.94

626.02

Credit Cost

Risk Adj NIM

2.03

2.84

2.68
2.87

0.86
0.65
0.3

0.64

Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q3 FY16

2.88

1.99

Q4 FY16

Q1 FY17

Q2 FY17

Q3 FY17

Asset Quality
Risk Rating
Q3 FY 17

17%

AAA/AA

16%

A
13%

Q3 FY 17

BBB

51%

12%

Q2 FY 17

<BBB

52%

20%

FB 1

21%

18%

FB 2

21%

FB 3

Q2 FY 17

FB4 & Others

22%
21%

39%

18%

21%

38%

Wholesale Assets

Other Assets

Rating

Q3 FY-17

Q2 FY-17

Rating

Q3 FY-17

Q2 FY-17

AAA / AA

52%

51%

FB 1

21%

21%

18%

21%

FB 2

21%

22%

BBB

13%

12%

FB 3

38%

39%

< BBB

17%

16%

FB4 & Others

20%

18%
9

Digital Journey
Digital Enrichments

Increase in the % of Number of Active Digital Users

Rolled out Lotza merchant Application, an

excusive UPI App for merchants enabling them
to receive funds from any UPI App

New versions of FedMobile, Fedbook

and LOTZA released with improved on
boarding processes and additional
features

68%

Base

June

July

Aug

Sept

Dec

FedMobile Transaction Volume (per month in Cr)

789

Tie-up with ICAI Exchanged

agreements with ICAI, for fee payments
through Federal Bank payment gateway.

412
304

Missed call banking : Self number recharge, for

Rs.100 by default just by giving a missed call
was launched in December.

112

Dec-15

199

Mar-16

Jun-16

Sep-16

Dec-16

10

Business Parameters

11

Liability : Trends

32817

15%

55941

in Cr

97.80%

97.94%

97.68%

94.49%

96.23%

Q3 FY16

Q4 FY16

Q1 FY17

Q2 FY17

Q3 FY17

27406

27324

26053

24440

Q3 FY17
54142

Q2 FY17

51929

Q1 FY17

51491

Q4 FY16

48704

Q3 FY16

Retail Deposit ratio

CASA Ratio

32.10%

32.47%

32.83%

31.04%

Q3 FY16

Q4 FY16

Q1 FY17

Q2 FY17

34.66%

34%

CASA + Demand Dep

Q3 FY17

Other Retail Deposit

12

Customer Exposures
Retail (Incl Agri)

SME

in Cr

Wholesale*

28545

28084
26753

22837

23453

25179
22505

23834
16235
15000

16324

15325

14033

Q3 FY16 Q4 FY16 Q1 FY16 Q2 FY 17 Q3 FY 17

22860

Q3 FY16 Q4 FY16 Q1 FY16 Q2 FY 17 Q3 FY 17

16668

Q3 FY16 Q4 FY16 Q1 FY16 Q2 FY 17 Q3 FY 17

Highlights
The credit book is well diversified.
Retail ex-gold up by 35% Y-o-Y.
Wholesale* Book up by 71.25% Y-o-Y.
(*includes credit substitutes) 13

Credit Portfolio Distribution

in Cr

Total Loan Book

Retail (inc Agri)

SME Adv

Retail Loan Book (Excl Agri)

Wholesale Adv

Housing

Gold

Mortgage

Others

5848

40.2%

36.5%

23.3%

7026

3958

3791

2867

3152

3289

3503

3627

2510

2344

2256

2259

2089

7537

7876

8042

8351

8567

Q3 FY16

Q4 FY16

Q1 FY 17

Q2 FY 17

Q3 FY 17

3861

14

Fee Income/Other income

in Cr

Q3 FY 17 Q2 FY17 Q3 FY16 Y-o-Y %

Loan Processing Fee

29

27

20

43%

Exchange, Commission,
Brokerage& Other Fee
Income

97

99

80

21%
159

Net Profit on Forex

Transactions

33

27

19

74%

Fee Income

159

152

119

33%

Profit on sale of securities

86

86

23

274%

Recovery from assets

written off & Other
Receipts
Total Other income

Fee Income (Y-o-Y)

119

Q3 FY 16

18

23

41

-51%

263

262

183

45%

Q3 FY 17

15

Distribution : Deriving Efficiency from Foot Print

1

Q3 FY17 Q2 FY17 Q3 FY16

30
3
28

Branches

1252

1252

1252

ATMs

1655

1607

1548

1
12

22

23

47

11
3

12%

32

14%

16%
14%

25
103

Q3 FY16

17
17

6
101

600

54%
55%

2
137

18% 17%

Metro

Urban

Semi Urban

Rural

Q3 FY17

Distribution
Kerala : Continuing Dominance
Wholesale

4292
3228

8480
7640

SME
Retail ex-gold
(inc Agri)

Q3 FY17

33%

Current

7844
6392

27189
19780
15483
2097
1591

21239

13440

33184
22%

12719

3452
2972

3237
2286

32%

0.86%

52%

16%

6859
4644

28%

58%

23%

8393

11%

NR Business

Savings

Q3 FY16

11%

13277
11934

in Cr

Outside Kerala: Gaining share

48%

42%

0.91%

Gain in Market Share:

Banks Market Share

5.7% growth (Q-o-Q)

Q2 FY17

Q3 FY17

17

CRAR How strong is your Bank?

in Cr

Dec-16

Sep-16

Credit Risk

58564

55141

Market Risk

3258

3172

Operational Risk

5704

5704

67526

64017

Tier-1 Capital Funds

7851

7822

Tier-II Capital Funds

441

406

Total Capital Funds

8292

8229

CRAR

12.28%

12.85%

Tier-I

11.63%

12.22%

Tier-II

0.65%

0.63%

Risk Weighted Assets

Total RWA

18

Annexures

19

Balance Sheet & Shareholding Pattern

in Cr

Q3 FY17

Q3 FY16

LIABILITIES

Capital

344

344

Reserves & Surplus

8334

7880

Deposits

92236

74792

Borrowings

6232

1898

Other Liabilities & Provisions

4352

3596

111497

88509

TOTAL

Share Holding Pattern

25%

27%

5%

6%

ASSETS
Cash & Balance with RBI

4574

3584

Balances with Banks, Money at Call

2297

1668

Investments

28520

24647

Advances

69629

52753

Fixed Assets

511

503

Other Assets

5966

5353

111497

88509

TOTAL

37%

Mutual Funds

FIs/Banks

FIIs

Corporates

Others

20

Financials
in Cr
Q3 FY17

Q2 FY17

Q-o-Q

Q3 FY16

Y-o-Y

Interest Income

2281

2066

10%

1903

20%

Interest Expenses

1490

1340

11%

1298

15%

Net Interest Income

791

726

9%

606

31%

Other Income

263

262

1%

183

44%

Total Income

2545

2328

9%

2086

22%

Total Expenditure

2070

1853

12%

1761

18%

Operating Profit

475

475

0%

325

46%

Total Provisions

269

274

-2%

163

65%

Net Profit

206

201

2%

163

26%

Net Interest Margin (%)

3.32%

3.31%

1 bps

3.04%

28 bps

Cost to Income Ratio (%)

54.97%

51.92%

305 bps

58.72%

-375 bps

21

Incomes and Margins

Net Interest Income

Net Interest Margin (%)

791

692

Q4 FY16

Q1 FY17

3.28

3.31

3.32

Q4 FY16

Q1 FY17

Q2 FY17

Q3 FY17

3.04

726
686

3.31

in Cr

606

Q3 FY16

Q2 FY17

Q3 FY17

Cost of Deposits

Yield on Advances
10.64

Q3 FY16

10.50
6.4

6.26

Q2 FY17

Q2 FY17

Q3 FY17

YOA

Q3 FY17

COD

22

Sector wise Advance Portfolio

SME Portfolio
SOCIAL/COMMERCIAL /AGRI
INFRASTRUCTURE, 3.5%
EDUCATIONAL
SERVICES, 3.7%
TEXTILES
INCLUDING JUTE &
COIR, 4.6%

Wholesale Portfolio

VEHICLES,SPARES &
AUTOMOTIVE FUEL,
3.1%
OTHER RETAIL
LOANS, 2.8%

NBFC, 26%

TRANSPORT
INFRASTRUCTURE,
6%

REAL ESTATE
BUSINESS, 4.9%
FOOD PRODUCTS,
2%

ITEMS FOR
CONSUMPTION/
PERSONAL/
HOUSEHOLD USE,
5.7%
WHOLESALE TRADE,
CONTRACTORS,
7.6%
7.3%

FOOD/AGRICULTUR
AL PRODUCTS, 6%
BASIC METALS, 5%

FOOD PRODUCTS,
8.3%

COMMERCIAL REAL
ESTATE, 2%

POWER
GENERATION &
CHEMICALS, 3% TRANSMISSION, 4%

BANKS, 4%
REAL ESTATE
BUSINESS, 4%

23

Investments / Subsidiaries & JVs

Major Investments
Entity
Fedbank Financial Services Limited
IDBI Federal Life Insurance Company of India Limited

% Equity
100.00%
26.00%

Kannur International Airport

2.89%

Cochin International Airport

1.96%

Subsidiaries & JVs

IDBI Federal Life Insurance Co. Ltd.
Banks 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

FedBank Financial Services 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

UAE Representative Office

Representative Office at Abu Dhabi, established in 2008 & Dubai in 2016.
Gateway of the Bank to the whole of Middle East
Increased the reach of the Bank among Non-Resident Indians in the Gulf countries
24

External Ratings

Fixed Deposit
Certificate of Deposit

A1+

Tier 2 (Capital) Bonds

AA- (Ind)

Tier 2 (Capital) Bonds

AA

Fixed Deposits and Certificate of Deposits enjoy highest rating in that class.
The rating of Bonds indicate high safety and very low credit risk.
25

Disclaimer

This presentation is not a complete description of the Bank. This presentation may contain statements that
constitute forward-looking statements. All forward looking statements are subject to risks, uncertainties and
assumptions that could cause actual results to differ materially from those contemplated by the relevant
forward-looking statement. Important factors that could cause actual results to differ materially include,
among others, future changes or developments in the Banks business, its competitive environment and
political, economic, legal and social conditions. Given these risks, uncertainties and other factors, viewers of
this presentation are cautioned not to place undue reliance on these forward-looking statements. The Bank
disclaims any obligation to update these forward-looking statements to reflect future events or developments.
All information contained in this presentation has been prepared solely by the Bank. No information
contained herein has been independently verified by anyone else. No representation or warranty (express or
implied) of any nature is made nor is any responsibility or liability of any kind accepted with respect to the
truthfulness, completeness or accuracy of any information, projection, representation or warranty (expressed
or implied) or omissions in this presentation. Neither the Bank nor anyone else accepts any liability
whatsoever for any loss, howsoever, arising from any use or reliance on this presentation or its contents or
otherwise arising in connection therewith. This presentation may not be used, reproduced, copied, distributed,
shared, or disseminated in any other manner.

26

Thank You