Fedbank Financial Services Limited — PPTs, 24-01-2025: Investor Presentation

**Financial Highlights**

Fedbank Financial Services reported a significant 39.3% year-over-year (YoY) increase in Assets Under Management (AUM), reaching ₹14,922 Cr. This growth was driven by robust performance in gold loans, which surged by 52.9% YoY to ₹5,203 Cr, now comprising 34.9% of the AUM mix. Net Interest Income rose 31.0% YoY to ₹283.8 Cr, reflecting improved yields of 17.5%. Despite these gains, Profit After Tax fell sharply by 71.3% YoY to ₹18.8 Cr due to a one-time provisioning charge of ₹75 Cr.

**Strategic Initiatives and Growth Drivers**

The company aims to enhance its digital capabilities and expand its branch network, currently boasting 693 branches across 18 states and union territories. Continued investment in technology will support operational efficiency and customer service.

**Business Developments**

New initiatives include tightening credit policies and enhancing collections processes to address elevated delinquencies in the small mortgage segment. The onboarding of a new Chief Business Officer for this segment signifies a proactive approach to oversight and improvement.

**Market Position and Competitive Advantage**

Fedbank maintains a strong competitive position with a robust AA+/Stable credit rating and effective leverage of its parent company, Federal Bank, for resource access. This solid foundation enhances investor confidence amid a growing market for MSME lending.

**Investor Implications**

The company's strong AUM growth and strategic initiatives indicate a positive outlook for future performance, despite short-term challenges from elevated provisioning. Investors should consider the potential growth trajectory and operational improvements as signals of resilience in a competitive landscape.