Fedbank Financial Services Limited — PPTs, 28-07-2025: Investor Presentation

Here is the financial summary:

**1. Financial Highlights:**

Q1 FY26 saw AUM grow 19% YoY to ₹15,697 Cr, with disbursements up 18.6%. Gold Loan AUM surged 38.8% to ₹6,332 Cr. Net Interest Income rose 7.4% to ₹268.2 Cr, and Profit After Tax increased 6.8% to ₹75.0 Cr despite a slight operating profit dip. RoA 2.3%, RoE 11.6%, and asset quality (Gross Stage III 2.0%) remained stable.

**2. Strategic Initiatives & Growth Drivers:**

Fedfina targets MSMEs with collateralized Gold and Mortgage Loans, expanding to 668 branches across 18 states. Digitalization optimizes operations and customer service. ESG practices are integrated.

**3. Business Developments:**

Q1 FY26 included a strategic 100% direct assignment of ₹770 Cr in unsecured business loans, reducing their AUM mix to 2%. Business loan disbursals are discontinued.

**4. Market Position & Competitive Advantage:**

Backed by Federal Bank, Fedfina holds AA+/Stable credit ratings. Its "twin-engine" secured lending model (96.1% AUM), extensive branch network, and diverse funding sources provide strong competitive advantage.

**5. Investor Implications:**

Strong AUM/disbursement growth and a dominant secured lending profile suggest positive growth potential. Investors should observe the strategic pivot from unsecured loans and monitor the slight operating profit dip for its influence on future profitability.