Reinforcing Senior team with select

Specialist Recruits

No or low exposure to House of Debt

Regular Stable CASA Growth

Increasing granularity in retail
deposits
Leadership position in remittance

Market share dominance in Network

I and increased presence in
Network II

Legacy issues in the Corporate Credit

portfolio have become residual

No Slippages in Corporate Credit

originated over the last 12 Quarters

FY16 Financial Results impacted

materially by Specific Event driven
provisioning.

Liability Profile continues to

make strong progress

Operating Performance in Q4 better

than all other quarters in FY16

Key Messages

Likely impact of Middle East

slowdown being monitored closely
and active de-risking on the credit
front.

Doubling Digital transaction

every quarter led by ahead of
class offerings.

Credit book (Ex-gold) reflects run

rate above 30%(Ann.) over last two
quarters

Growth drivers in place.

17% (Y-o-Y)

SME Adv

1516
ATMs

Branches

60 K Customers

1252

Avg Monthly Customer

Acquisition

21% (Y-o-Y)

18% (Y-o-Y)

Retail Adv (Excl Gold)

Wholesale Adv

206 Bps (Y-o-Y)

12% (Y-o-Y)

Current Account

Retail Deposit Ratio

21% (Y-o-Y)

Savings Account

Performance Highlights

Employees

11735

Provision Coverage Ratio

Capital Adequacy (CRAR)

Net NPA%

Gross NPA%

Operating Profit

NIM

Net Interest Income

Customers

Over 7
million

72.05%

13.93%

1.64%

2.84%

21% (Q-o-Q)

3.31%

13% (Q-o-Q)

Ratios

Performance

Advances

Deposits

1403315172

Other Income

24%
183227
Net NPA%

60626636

Net Income
(NII+OI)
16%
789913
Gross NPA%
31
bps

1426514987

Total Income

8%
20862253

Cost Income ratio

194
bps

3.152.84

6%

9%

5%

58.7256.78

SME

Agri

Retail*

1.661.64

2
bps

2838130732

38774283

20128 21422

8%

NRE Deposits

10%

Current Deposits

6%

Total Savings

Comparison : Q-o-Q (Sequential)

0.770.05

72
bps

ROA

325395

21%

Operating Profit

1666819652

18%

Corporate

5035253119

5%

Term Deposits

(* Retail Exc Gold)

8.000.50

750
bps

ROE

16310

-96%

Net Profit

5353858791

10%

Gross Advances

7479279172

6%

Total Deposits

Ratios

Performance

Advances

Deposits

Net NPA%
91
bps

0.731.64

Gross NPA%

80
bps
2.042.84

668
bps

50.0556.73

Cost Income ratio

878786

32593291

82988531

53%

13%
10%

1%

3%

Net Profit

Operating Profit

Other Income

Net Income
(NII+OI)

(* Retail Exc Gold)

13.776.01

776
bps

75
bps

1.320.57

ROE

1006477
ROA

16281424

5195158791

Total Income

1658819652

13%

Gross Advances

1291815172

18%

Corporate

7082579172

63126636

17%

SME

4904253119

12%

Total Deposits

1273214997

Agri

Retail*

2423130732

8%

Term Deposits

5%

38234283

17727 21422

27%

NRE Deposits

18%

12%

Current Deposits

21%

Total Savings

Comparison : Y-o-Y (FY)

Credit cost @ 2.03%

Credit cost excluding specific events
(192 Cr) is @ 0.60%

Provision Coverage Ratio (Including

Technically Written Off) at 72.05% (71.65%
in Q3 FY 16)

35

53

Others







60

30

-21

80

555

704

265

192

317

Provided for Food

Credit

Discoms / Uday
schemes

Accelerated
Provisions

Exceptional impact
for Q4 is Rs 235 Cr

2254
466
5.08
4.21

1592
163
2.99
2.71

% of Restructured Advance
% of Standard Restructured
advances

Q3 FY16

Standard
NPA

Restructured Advance

Q4 FY16

Restructured Advances Composition

Specific event led

25



73

Provisions Impact (in Rs Cr)

Standard assets

Restructured
Accounts

Investment
Investme
losses

Loan losses

Total

Provisions

Credit Cost & Provisions

in Cr
6

43
154
254
536

Agri
SME
Corporate
Total

Q3 FY 16

2.30%
4.17%
3.03%
2.75%

152.75
633.04
594.53
1667.77

Agri
SME
Corporate
Total

1.66%

287.44

Q4 FY16
Gross NPA
Gross NPA %

Retail

NPA Composition
Business

571

375

115

20

61

1684.11

686.68

614.07

130.89

252.47

3.06%

4.16%

4.34%

2.16%

1.51%

Q3 FY16
Gross NPA
Gross NPA %

No Conversion to Off-balance sheet

No 5:25 Structuring
No SDR

85

Q4 FY 16

Fresh Accretion

Retail

NPA & Loan Slippages

(Rs. in Cr)

7%

8%

31%

28%

25%

Q4 FY-16

40%

25%

7%

28%

Rating

AAA / AA

BBB

< BBB & Others

31%

Q3 FY 16

Corporate Assets

Q4 FY 16

Asset Quality

72%

30%
40%

31%

8%

31%

30%

Q3 FY-16

69%

< BBB and

Unrated

BBB

AAA / AA

41%

FB4 & Others

FB 3

FB 2

FB 1

Rating

Other Assets

FB4 & Others

FB 3

FB 2

FB 1

Risk Rating

15%

41%

22%

22%

Q4 FY-16

40%

22%

22%

22%

85%

Q3 FY 16

16%

15%

16%

40%

22%

22%

Q3 FY-16

22%

Q4 FY 16

84%

Beyond Provisions : Growth is Focus

Q1 FY16

Q2 FY16

Q4 FY16

Q4 FY15

30.43%

The low cost CASA augmentation stood robust with a

growth of 19% Y-o-Y taking the CASA ratio to 32.47%
improving by 204 bps
21% Y-o-Y SA traction and 12% Y-o-Y CA growth
Retail deposits composition stands higher at 97.94%
improving by 264 bps Y-o-Y
NR franchise -sturdy 27 % Y-o-Y growth in NRE Deposits

Q2 FY16

Active Cash Management Services

Payroll Penetration Structure set up

Q3 FY16

32.10%

Effective Digital Strategy in place

Maturity of New Branches

Drivers:

Q1 FY16

31.26%

31.87%

CASA Ratio

Retail Deposits ratio maintained above 97%

Q3 FY16

97.94%

Retail liability profile continues to fuel consistent growth in

deposits

Highlights:

Q4 FY15

95.30%

96.47%

97.46%

97.80%

Retail Deposits Ratio

Liability : Growth Drivers

Q4 FY16

32.47%

10

in Cr

24016

21783

Q2 FY16

47895

46550
Other Retail Deposits

48704

Q4 FY16

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Total Remittances
Federal bank%

3176

FY13

(289 bn)

FY12

27.39%

FY13

26.94%

CASA Ratio

FY12

(238 bn)

3680

4210

FY14

30.81%

FY14

508
Bps

(389 bn)

4270

FY15

30.43%

FY15

(438 bn)

4600

Over the period from FY12-16, Share of Total NRI Remittances made
through Federal bank increased by 506 Bps , from 7.49% to 12.55% .

7.49%

Q3 FY16

51491

NRI Remittance trend

7.87%

Q1 FY16

CASA+Demand Dep

23044

9.25%

Q4 FY15

24440

10.25%

Liability : Trends

26053

FY16

32.47%

FY16

12.55%

45716

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

11

(577 bn)

12.00%

14.00%

16.00%

in Cr

2000

4000

6000

8000

10000

st
1

Fundss Tr
Transfer
ransferr th
through
hroug Missed
d Ca
Call
all Banking
Ba

Innovative Offerings

Online Credit
Offerings: Car loan,
Personal Loan

Onboard UPI
Platform

31-Mar-15 30-Jun-15 30-Sep-15 31-Dec-15 31-Mar-16

Migrating
ating to the D
Digital
Channels

Leading the digital journey

ney
with
Product Innovations

Human at the core

Digital at the
e fore

Digital 360

12

On 13th Feb 2016 at the K P Hormis

Commemorative Lecture, Kochi

Dr. Raghuram Rajan

Now if we were to talk about the future of banking, I

just walked through the future of banking . when I
saw some of the activities that Federal Bank is
engaged in

22194

22528

22837

23967

13011

Retail (excl. Gold) up by 18 % Y-o-Y, and Retail

Advances up by 7% Y-o-Y

Corporate Book up by 21% Y-o-Y .

13876

SME Adv

14033

15172

15130

15250

16668

19652

Wholesale & SME Portfolio:

Relationship Management structure in place
Out Pacing the Market in Wholesale loan Portfolio Growth
Retail Credit portfolio:
Focus on Secured Retail Credit
Specialized Hubs set up for Retail Credit
Group Personal Loans to Salaried Class Risk Balancing
Exclusive Sales Team Set up
Delivery through Alternate Channels
Analytics based Offerings.
Pre-approved loans
Repayment Track Based loans

14

in Cr

Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16

16588

Wholesale Adv

Drivers

Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16

12918

The credit book is diversified with Wholesale exposure

of 19652cr , SME - 15172 cr and Retail & Agri -23967
cr

Highlights

Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16

22447

Retail (Incl Agri)

Credit : Growth Drivers

41%

Total Loan Book

Retail (Incl Agri)

SME Adv

33%

26%

Wholesale Adv

Q1 FY16

Q4 FY15

Q2 FY16

7335

Q3 FY16

7537

Mortgage

94.88% of Retail Loan book is secured

7057

2510
2783
3110
3403

6852

2867

3861

2685

3589

2457

3412

Gold

2389

3491

Housing

Retail Loan Book (Excl Agri)

Credit Portfolio Uniformly Distributed

Q4 FY16

7876

2344

3152

3958

Others

15

in Cr

46

22

600

101

103

28

30

23

17

137

17

11

25

8
32

12

FY16
FY

Metro

FY 15

Rural

54%

14%

Urban

13% 14%

14%

1516

1252

FY16

Semi-Urban

55%

18%

18%

ATMs

Branches

Distribution : Deriving Efficiency from Foot Print

1485

1247

FY15

2628

Current

2189

Savings

4242

5042

Savings

16380

Focus Segments in Deposits

Current

1533 1634

13485

13% Market Share

Focus Segments in Deposits

13267

Retail (Incl Agri)

12161

NR Deposits

2666

3197

Q4 FY16

Q4 FY15

Retail (Incl Agri)

10294 10700

Network II : Gaining share

NR Deposits

23283

29419

Q4 FY16

Q4 FY15

Network I : Continuing Dominance

Distribution : Network I & Network II

8123

3848

Wholesale Adv

3233

6839

SME Adv

5787

Wholesale Adv

13365

15932

Focus Segments in Advance

SME Adv

7117

Focus Segments in Advance

17

in Cr

128

113

Profit on sale of securities

Recovery from assets written off &

Other Receipts

546

130

Net Profit on Forex Transactions

Fee Income

330

86

FY 16

Exchange, Commission,
Brokerage& Other Fee Income

Loan Processing Fee

Fee Income

125

256

497

116

302

80

FY 15

-10%

-50%

10%

12%

9%

8%

Y-o-Y %

Fee Income (Q-o-Q)

Q4 FY15

133

FY15

497

Fee Income (Y-o-Y)

Q4 FY16

162

FY16

546

18

in Cr

58.72
58
72

Optimisation of
Revenue from
Channel
Interchange

Renegotiation in high
rent premises
Renegotiation of
AMC & other
recurring expenses.

Re-negotiation

Q4 FY 16 56.78

Centralised
Travel & Stay
arrangements

Introduction of SOFT
PIN for Debit Card
Activation
Customer
engagement through
multiple channels &
Mobile Applications

Automation/
Digitization/
Migration

Cost Income Ratio

Enhanced Cash
Management

Centralized Printing
and stationery
framework for
avoiding wastage and
cost saving.

Q3 FY 16

Energy Audit

Other Measures

Elimination of
security personnel in
offsite ATMs and
replacing the same
with Remote
Monitoring
Surveillance.

Elimination

Simplification
&
Rationalization

Strategic Cost Management Measures

8125

Total Capital Funds

0.57%

334

Tier-II Capital Funds

Tier-II

7792

Tier-1 Capital Funds

13.36%

58330

Total RWA

Tier-I

5302

Operational Risk

13.93%

3703

Market Risk

CRAR

49325

Mar-16

Credit Risk

Risk Weighted Assets

CRAR How strong is your Bank?

0.65%

14.81%

15.46%

7865

331

7534

50889

4321

2996

43572

Mar-15

20

in Cr

Annexures

21

91421

5174

Other Assets

TOTAL

520

58090

Advances

Fixed Assets

22217

1645

Balances with Banks, Money at Call

Investments

3775

Cash & Balance with RBI

ASSETS

91421

1981

Other Liabilities & Provisions

TOTAL

2177

79172

7748

344

Borrowings

Deposits

Reserves & Surplus

Capital

LIABILITIES

FY 16

7567

171

82850

1910

466.6

51285

24409

1400

3380

82850

1979

2308

70825

FY 15

2.77

47.32

FY16

FIs/Banks

8%

36%

FIIs

27%

26%

3%

5.87

22

in Cr

Others

45.17

FY15

Corporates

Share Holding Pattern

Mutual Funds

EPS

(Per Share in )

Book Value

Shareholder Value

Balance Sheet & Shareholding Pattern

2027
1341
686
227
2253
1859
395

384
10
3.31
56.78

Interest Expenses

Net Interest Income

Other Income

Total Income

Total Expenditure

Operating Profit

Total Provisions

Net Profit

Net Interest Margin (%)

Cost to Income Ratio (%)

Q4 FY16

Interest Income

Financials

58.72

3.04

163

163

325

1761

2086

183

605

1298

1903

Q3 FY16

-194 Bps

27 Bps

-93%

135%

21%

4%

7%

24%

13%

2%

5%

Q-o-Q

49.51

3.31

281

189

469

1745

2214

306

623

1285

1908

Q4 FY15

726 Bps

0 Bps

-96%

103%

-16%

5%

1%

-26%

10%

3%

5%

Y-o-Y

56.73

3.14

476

948

1424

7107

8531

786

2504

5240

7745

FY16

50.05

3.27

1006

622

1628

6670

8298

878

2380

5039

7419

FY15

668 Bps

-12 Bps

-53%

52%

-13%

6%

3%

-10%

5%

4%

4%

Y-o-Y

23

in Cr

Q2 FY-16

608

Q1 FY-16

0.90

Q2 FY-16

1.01

Q3 FY16

0.30

Q3 FY16

605

Q4 FY16

2.03*

Q4 FY16

686

* Including specific events led provisioning

Q4 FY-15

0.23

Q1 FY-16

605

Credit Cost

Q4 FY-15

623

Net Interest Income

Incomes and Margins

Q2 FY-16

3.11

2.52

2.46

2.84

Q3 FY16

3.04

Q3 FY16

Risk Adj NIM

Q1 FY-16

3.12

Q4 FY-15 Q1 FY-16 Q2 FY-16

3.16

Q4 FY-15

3.31
3.31

Q4 FY16

1.99

Q4 FY16

Net Interestt Margin (%)

6.8

Cost of Deposits

6.90

Q3 FY16

Cost of Deposits

Yield on Advances

10.85

Q3 FY16
10.90

Yield on Advances

Q4 FY16

24

Q4 FY16

in Cr

4%

Hotels And
Restaurants
3% Basic Metals

Real Estate Others

2%

Hospitals
2%
Textiles
5%

Retail Trade
15%

Education
6%

SME Portfolio

Food And
Beverages
9%
Construction
Others
8%

Wholesale Trade
10%

Sector wise Advance Portfolio

Chemical
3%

Road Bridges
Railway
5%

Food And
Beverages
4%

Retail Trade
3%

Basic Metals
5%

Power
6%

NBFC
14%

Banks
6%

Wholesale Portfolio

25

Wholesale Trade
11%

Real Estate -HFC

13%

in Cr

Entity

5.80%

26.00%

100.00%

% Equity

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

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.

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

IDBI Federal Life Insurance Co. Ltd.

Subsidiaries & JVs

Kannur International Airport

IDBI Federal Life Insurance Company of India Limited

Fedbank Financial Services Limited

Major Investments

Investments / Subsidiaries & JVs

26

AA

AA- (Ind)

A1+

The rating of Bonds indicate high safety and very low credit risk.

Fixed Deposits and Certificate of Deposits enjoy highest rating in that class.

Tier 2 (Capital) Bonds

Tier 2 (Capital) Bonds

Certificate of Deposit

Fixed Deposit

External Ratings

27

Inauguration of Portable Currency Exchange

Counter at Cochin Port Trust

IDRBT Banking Technology Excellence Award

2014-15

Federal Bank gets MasterCard Innovation Awards

2016 under Two categories

ET Best Corporate Brand 2016 Award

Federal in Limelight

28

Figures for the previous period / year have been regrouped wherever necessary to conform to the current
periods / years presentation. Total in some columns / rows may not agree due to rounding off.

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.

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.

Disclaimer

29

Thank You