The Federal Bank Limited

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p Code: 500469 The Manager Department of Corporate Services BSE Limited Phiroze Jeejeebhoy Towers, Floor 25, Dalal Street, Mumbai – 400 001 Sub: Corrigendum to our earlier intimation-Presentation f

6.8%

view Macro Trends Key Performance Indicator Economic growth • GDP forecast for FY25 between 6.3-6.8% YoY; RBI projects GDP growth at 6.7% for FY26 • Most forecast for FY25 were revised downwards ami

6.7%

dicator Economic growth • GDP forecast for FY25 between 6.3-6.8% YoY; RBI projects GDP growth at 6.7% for FY26 • Most forecast for FY25 were revised downwards amid economic • uncertainties from 6.7

7.2%

for FY26 • Most forecast for FY25 were revised downwards amid economic • uncertainties from 6.7-7.2% to 6.3-6.8% Operational efficiency & Capital Adequacy • CIR improved across the board, decreasing

140 bps

6.3-6.8% Operational efficiency & Capital Adequacy • CIR improved across the board, decreasing by 140 bps to 48.3% for the industry All banks* have CRAR >13% signaling resilience in their risk management

48.3%

erational efficiency & Capital Adequacy • CIR improved across the board, decreasing by 140 bps to 48.3% for the industry All banks* have CRAR >13% signaling resilience in their risk management capabilit

13%

R improved across the board, decreasing by 140 bps to 48.3% for the industry All banks* have CRAR >13% signaling resilience in their risk management capabilities Economic landscape exhibits mixed tren

12%

s exports saw strong growth rise while service imports rise sharply • • Private banks reported 12% YoY growth in PAT, driven by controlled growth in operating expenses. SFB PAT declined by 13% YoY

14%

t costs Business Credit • Declining credit growth: 12% YoY in 9M FY25 • • YoY Growth - Retail: 14%, Agri: 12%, MSME: 15%, Corporate: 9% CD ratio at 82%, indicating potential stress in funding availa

15%

dit • Declining credit growth: 12% YoY in 9M FY25 • • YoY Growth - Retail: 14%, Agri: 12%, MSME: 15%, Corporate: 9% CD ratio at 82%, indicating potential stress in funding availability going forward

9%

credit growth: 12% YoY in 9M FY25 • • YoY Growth - Retail: 14%, Agri: 12%, MSME: 15%, Corporate: 9% CD ratio at 82%, indicating potential stress in funding availability going forward 4 Deposits •

82%

12% YoY in 9M FY25 • • YoY Growth - Retail: 14%, Agri: 12%, MSME: 15%, Corporate: 9% CD ratio at 82%, indicating potential stress in funding availability going forward 4 Deposits • • • Grew 11% Y

“▪ Which part of corporate segment can we profitably target?”

“Execution Project Portfolio Overview 150 Projects Identified 50 Key Projects: High-impact initiatives aligned with strategic priorities.”

“Ownership & Accountability Project Owners Assigned: Clear ownership established for each project to ensure focused execution.”

“Next Steps Milestone Mapping: Defining timelines and deliverables for each project.”

“Performance Tracking: Implementing real-time monitoring to ensure alignment with efficiency goals 1 2 3 4 5 6 7 ROA led ROE Improvement ROA led ROE Improvement ROA (9m FY25) 2.20% 1.20% 1.40% Federal Next 3 Best 3 ROE (9m FY25) 16.00% 13.10% 10.80% ++ Cost -- Credit Cost ++ Fee Income ++ Yield on Advances 9m FY25 ++ Cost of Deposits FY28 Optimizing Capital Allocation ➢ Enhancing RWA efficiency and maintaining an optimal capital structure.”

“Leveraging the power of digital to enhance visibility, target the right audience, and drive real- time engagement with efficiency.”

“MNC & Correspondent Banking Strengthen global collaborations through Correspondent Banking and MNCs Mid Market Focus Target mid market corporate clients and thrust on deeper geographies for higher wallet share & income.”

“Customised Digital Products Offer bespoke digital solutions to various government departments and schemes Enhance Government Partnerships Target empanelment's in Central Pension Scheme, PPF, Small Savings, State Stamp Duties etc.”

Charting the Future

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Scaling up Medium-Yield Assets

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Offer investment products

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Campaigns

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Charting the Future

Strengthening Our Foundation & Expanding Horizons Profitable Growth ▪ How do we enhance profitability while sustaining growth momentum? ▪ How do we instill P&L culture in our business heads? ▪ How do we move from affordability-driven to value-driven banking? Kerala & Beyond – Nationwide Growth ▪ How do we expand nationally while leveraging Kerala’s strengths? Identity ▪ How do we shape perceptions to position ourselves as the bank of choice? ▪ How do we retain our 50+ age base while attracting younger generations? ▪ How do we strengthen our position as the go-to SME bank? ▪ Which part of corporate segment can we profitably target? 16 Branch Model - Efficiency & Growth ▪ How can we refine and modernize our branch banking model? ▪ How do we ensure service excellence drives sustainable sales? ▪ How do we make the branch model liability centric? HR , Talent , Culture – Future-Ready Workforce ▪ How do we balance stability with adaptability? ▪ Are we fostering a high-performance, sales-drive

Charting the Future

Strengthening Our Foundation & Expanding Horizons The SME Bank of Choice Establish a best-in-class SME banking ecosystem with a differentiated value proposition Aspiring for the Top 5 Private Bank bracket Execute a growth strategy to cement our position among the industry leaders Build a Modern, Truly National Franchise Strengthen brand presence and scale operations to become a top-tier national bank Universal Bank Vision Expand capabilities beyond vanilla banking to fulfil customer needs. Focused corporate banking to drive profitability through high- growth mid- market businesses Powering Mid- Market Corporates 17 Winning in Mass Affluent Banking Expand offerings in wealth management, capital markets, and premium savings solutions for both NR & domestic clients Unlocking NR Growth Beyond Kerala & GCC and enhance it by wealth offerings Retain & build best in class NR proposition Breakthrough – Chapter 4.0 Scaling Up, Smartly Expanding footprint, optimizing capital, and leveraging tech

Scaling up Medium-Yield Assets

Focusing on medium secured retail assets to improve NIMS Mid-Market Corporate Lending for Better Profitability Targeting mid-market borrowers to improve spreads and asset quality 01 02 03 Leveraging Priority Sector Lending (PSL) Strategy Aligning PSL portfolio with profitability and compliance objectives Deepening High-Yield Assets Expanding unsecured, high-yield credit to optimize portfolio returns as market conditions improve Optimized Risk-Based Pricing Strategy Applying RAROC and tenor-based pricing methodologies to enhance lending margins. 04 05 21 Interest Income / Avg EA1 (9m FY25) 9.21% 8.74% 8.54% Federal Next 3 Best 3 Reshaping the Advance Mix 5% 3% 2% 3% 31% FY25 (E) 64% 34% FY28 (P) 58% Low Yielding Advances (<9%) High Yielding Advances (12%-20%) Medium Yielding Advances (9%-12%) Very High Yielding Advances (>20%) 1 Note: Financial metrics refer to Average of Best in Class metrics in each category among the cohort of Top 6 Pvt Sector Banks by Balance Sheet Size (in the same

Offer investment products

Wealth Management, 3 in 1 account, Bespoke solutions to NR Scale-up Used Vehicle Finance – CV/CE , Car Loans Expand offerings for Micro-LAP Products Tractor Finance EMI-Based Unsecured Biz Loans Affordable Housing Loans Real Estate Finance Sustainable Finance Correspondent Banking Syndication & Investment Banking Capital Market Services Business 23 Theme 3 - Fee Enhancement Key Opportunities 01 Trade and Forex Income 02 Wealth Management & Bancassurance 03 Credit Cards & Acquiring Businesses Other Income to Avg Assets (9m FY25) 1.7% 1.1% 1.4% 04 Cash Management Services Federal Next 3 Best 3 through 01 Product Co-origination 02 Cross Selling With Segmental offerings for: Mass Affluent & NR MSME Mid Market 24 1 Note: Financial metrics refer to Average of Best in Class metrics in each category among the cohort of Top 6 Pvt Sector Banks by Balance Sheet Size (in the same category) Acquiring talent and reskilling existing workforce key for success Theme 4 – Branch Strategy for Scalable Gro

Campaigns

Leveraging the power of digital to enhance visibility, target the right audience, and drive real- time engagement with efficiency. Marathons Running the extra mile—strengthening brand presence, engaging diverse audiences, and leaving a lasting impact across cities. ANALYST MEET Branch Banking Branch Banking – Snapshot Strategic Advantages Expansion Levers Enhancement Areas • Strong brand presence in home market • Customer-centric service culture ensuring high retention • Diverse product suite catering to retail banking needs • High employee engagement and growth-oriented culture • Geographic expansion into high-GSDP states and Tier-2 cities • Pin-code based strategies for metros • Unlocking potential within the existing client base • Enhancing fee income through Forex and Wealth Management • Boosting productivity via capacity building and process efficiencies • Expanding liability business share in ex-home markets • Introducing dedicated sales teams at branches to enhance business acqu