Fedbank Financial Services Limited — PPTs, 29-04-2025: Investor Presentation

**Financial Highlights:**

Fedbank Financial Services reported an AUM growth of 29.7% YoY, reaching ₹15,812 Cr. Disbursements increased by 28.6% YoY to ₹5,578 Cr. Net Interest Income rose 34.6% YoY to ₹283.4 Cr, with a yield increase to 16.8%. Operating Profit grew by 20.9% YoY, while Profit After Tax increased by 5.9% to ₹71.7 Cr. The asset quality metrics reflect a Gross Stage III NPA of 2.0%.

**Strategic Initiatives & Growth Drivers:**

The company is concentrating on MSME lending and plans to expand its product range and branch network across 18 states and union territories. Efforts are being made to enhance service offerings, particularly in collateralized lending through Gold and Mortgage loans.

**Business Developments:**

Fedfina has established partnerships to enhance digital loan origination and improve customer service. Technology investments include a robust cloud-based lending platform designed to streamline operations.

**Market Position & Competitive Advantage:**

Fedfina holds a strong position with AA+/Stable credit ratings, benefiting from majority ownership by Federal Bank, which enhances its capital access. The focus on MSME lending serves as a key differentiator.

**Investor Implications:**

The robust AUM growth and strong financial performance signal positive growth potential. Investors should watch for execution risks associated with the expansion of digital capabilities and broader product offerings.