Jana Small Finance Bank Ltd · NSE:JSFB
Jana Small Finance Bank — H1 FY2025 Earnings Presentation
33 slides from Jana Small Finance Bank's earnings presentation
Slide 1: Jana Small Finance Bank Investor Presentation H1 FY'2025
Jana Small Finance Bank Investor Presentation H1 FY’2025
Slide 2: Executing on secured strategy and Anchor banking despite MFI challenge
Executing on secured strategy and Anchor banking despite MFI challenge • Deposits growth of 31% y-o-y and 10% from Mar-24, TD and CASA growth 9% and 12% respectively from Mar-24 • Advances growth of 17% y-o-y and 7% from Mar-24. Secured grows to 65% from 60% (Mar-24) • Secured and Unsecured growth o
Slide 3: Highlights H1 FY 25 – PAT at 267 crores with NNPA of 0.95% & PCR 67.2%
Highlights H1 FY 25 – PAT at 267 crores with NNPA of 0.95% & PCR 67.2% Asset Capital Operational Assets Liabilities Ratios P&L Metrics Quality Structure Metrics Rs. 26,411 Crs / 17.3% Rs. 24,808 Crs / 31.0% 2.86% [2.31%] 3,861 Crs [2,569 Crs] 776 [771] 1.6% [1.6%] Rs. 267 Crs Advances1 / Growth Depo
Slide 4: Secured at 65% with NIM @7.7% given MFI degrowth
Secured at 65% with NIM @7.7% given MFI degrowth Asset Capital Operational Assets Liabilities Ratios P&L Metrics Quality Structure Metrics Rs. 26,411 Crs / 2.5% Rs. 24,808 Crs / 4.6% 2.86% [2.51%] 3,861 Crs [3,757 Crs] 776 [780] 1.2% [2.1%] Rs. 97 Crs Advances1 / Growth Deposits / Growth Gross NPA*
Slide 5: National franchise with strong brand recognition
National franchise with strong brand recognition Distribution of bank branches Presence in Unbanked Rural Centre's MFI through BCs 776 Business Correspondent (BC) Operated Outlets Bank Branches Unbanked Rural Centres % of Total Outlets Banking Outlets Advances sourced by BCs / Total Advances1 (%) 36
Slide 6: Affordable Housing and Micro LAP cross 10,000 crores, Unsecured q-o-q growth negative 5%
Affordable Housing and Micro LAP cross 10,000 crores, Unsecured q-o-q growth negative 5% Average Average Advances1 Advances1 Advances1 Category of Advance1 GNPA3 NNPA3 AUM Tenure Ticket Size Growth Growth Growth LTV4 (As at September 30, 2024) (%) (%) (Months) (Rs. Mn) 2 y-o-y (%) H1 FY 25 (%) q-o-q
Slide 7: Secured loan growth at healthy pace with geographic diversification maintained
Secured loan growth at healthy pace with geographic diversification maintained Secured grows by 15.7% from Mar-24 Focus on making secured the core Low geographical concentration Maharashtra Tamil Nadu Karnataka YTD Secured Advances1 (Rs. Crs) Gujarat Madhya Pradesh Rajasthan Particulars Mar-24 Sep-2
Slide 8: Unsecured Loans – Cautious approach
Unsecured Loans – Cautious approach MFI : Customer Leverage, BC Performance and Employee Attrition. Jana Relevant MFI : Breakdown of batch discipline:- Individual Loans by us since 2017. Not Jana Relevant KYC issues:- 100% e-KYC since 2019. Not Jana Relevant Actions taken:- Customer Leverage:
Slide 9: Unsecured Loans – Cautious approach
Unsecured Loans – Cautious approach Employee Attrition: • Elevated employee engagement:- Family connect and Festival Celebrations. • ACR(Account to Collector Ratio):- Improved from 357 in Mar’24 to 298 in Sept’24. • Improved Compensation Program, given increased degree of difficulty. • Career Path
Slide 10: MFI – BC book showing challenge and degrowth in overall unsecured book
MFI – BC book showing challenge and degrowth in overall unsecured book Product Wise Digital y-o-y q-o-q Sep-24 ATS2 GNPA3 NNPA3 PCR Advances1 Payment Growth Growth Individual Loan 5,011 38.1% 47,378 1.7% (4.2%) 4.2% 0.5% 88.1% - Agri 1,126 24.4% 47,801 17.3% (2.5%) 3.8% 0.3% 93.2% - Non Agri* 3,886
Slide 11: MFI business will see bigger growth in existing customers
MFI business will see bigger growth in existing customers Product (Amt in Crs) L1 L2 L3 L4+ Agri 2,783 589 50 17 GL 769 56 17 12 IL 304 1,644 1,433 1,675 Overall 3,856 2,289 1,500 1,703 RFS Overall - % Portfolio Existing Customers Agri Loans - % Portfolio Existing Customers GL and IL - % Portfolio E
Slide 12: Bring Your Bank Home
Bring Your Bank Home Home Loan leading to Anchor Bank with Multiple Product Offerings and Special Benefits Two Wheeler loans • Pre-approved Two Wheeler loans Pre-approved Business Loan • 100% funding to the vehicle value • Additional Pre-approved line upto Rs. 5 lakhs available • Lower Processing fe
Slide 13: Becoming Anchor bank to our customers
Becoming Anchor bank to our customers #Average CASA Penetration TD/RD Penetration Health Insurance Penetration Relationships 99% 19% 91% 3.7 66% 2.8 32% 4% PRE-HOME360 POST-HOME360 PRE-HOME360 POST-HOME360 PRE-HOME360 POST-HOME360 PRE-HOME360 POST-HOME360 Customers Customers Customers Customers Cust
Slide 14: Fast growing deposits at 31% and CASA growing at 28% in a highly competitive environment
Fast growing deposits at 31% and CASA growing at 28% in a highly competitive environment No concentration risk in liabilities Particulars Sep-24 y-o-y (%) YTD (%) q-o-q (%) Karnataka Maharashtra Punjab West Bengal CASA 4,977 28.3% 11.9% 2.7% Tamil Nadu Delhi Uttar Pradesh Others TD 19,831 31.7% 9.4%
Slide 15: Deposits – Underserved on Service and Price
Deposits – Underserved on Service and Price Optimize Distribution network –Mobilize Low-cost, stable retail deposits. Build momentum on CASA acquisitions No of Branches Avg CASA Book per Branch Avg Deposit Book per Branch (in Crs) 17.7 (in Crs) 200 103 161 132 22 2.0 2.4 11 12 0.2 2 < 1 year 1 - 3 y
Slide 16: Digital – A way of life!
Digital – A way of life! Jana Digitization 90% + Digital Uptake 99 % 98 % 92 % 90 % Digital Highlights Digital Channels SA Accounts Banking Txns Loans are Digitally Sales force use opened Digitally are Digital processed TAB/Mobile Key Highlights Merchant QR 18,192 QR Codes Installed across merchants
Slide 17: Key Financials
Cor y Jana Small coo Finance Bank A SCHEDULED COMMERCIAL BANK Key Financials
Slide 18: Cost Income Ratio at 58.3% for H1 FY25
Cost Income Ratio at 58.3% for H1 FY25 RoA impacted due to additional provision Stable NIMs RoE (%) RoA (%) NIM (%) Yield on Advances (%) 19.5% 18.1% 17.5% 17.6% 18.8% 17.2% 14.5% 10.2% 8.0% 7.7% 7.9% 7.8% 2.1% 1.2% 1.6% 1.6% Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Operationa
Slide 19: GNPA and NNPA increase is MFI led
GNPA and NNPA increase is MFI led Asset quality ratios y-o-y H1 FY 25 PAT growth of 25% GNPA % NNPA % PCR % Profit After Tax (Rs. Crs) 64.9% 62.7% 67.2% 267 213 2.86% 171 2.31% 2.51% 97 0.82% 0.95% 0.95% Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Q2 FY24 Q1 FY25 Q2 FY25 Focused lending operations with secured
Slide 20: Net NPA has 82% secured loans and strong PCR for all businesses
Net NPA has 82% secured loans and strong PCR for all businesses GNPA and NNPA returning to Pre-COVID levels Restructured Portfolio @ 0.3% of AUM INR crs Sep-24 Particulars Secured Unsecured BC Total Group Loans 4 Agricultural and allied Loans 0 Gross NPA 290 276 188 755 Individual and Micro Business
Slide 21: Credit Cost Ratio at 1.86% and expected to improve
Credit Cost Ratio at 1.86% and expected to improve Net Credit Cost Net Credit Cost % of AUM 3.36% 512 485 416 2.33% 1.96% 1.86% 2.10% 263 247 Mar-22 Mar-23 Mar-24 H1 FY 24 H1 FY 25 Particulars Mar-22 Mar-23 Mar-24 H1 FY 24 H1 FY 25 Credit Cost 569 744 679 343 406 Less: Accelerated Provisioning - 71
Slide 22: Balance Sheet
Balance Sheet Rs. Crs September 30, June 30, September 30, Borrowings: 2023 2024 2024 CAPITAL AND LIABILITIES Borrowings includes Capital 344 105 105 • Refinance – Rs. 3,182 crores Reserves & surplus 2,225 3,653 3,756 • Tier-2 capital - Rs. 350 crores Deposits 18,937 23,710 24,808 • Others incl call
Slide 23: Profit & Loss Statement
Profit & Loss Statement Rs. Crs Q2 FY 25 Q1 FY 25 Q2 FY 24 H1 FY 25 H1 FY 24 Other Income: Interest Income 1,166 1,167 979 2,333 1,864 Other Income includes: • Commission, exchange and brokerage – Interest Expense 572 557 453 1,129 876 Rs. 251 crores [Rs. 224 crores] Net Interest Income 594 610 526
Slide 24: Guidance
Guidance We continue to serve aspirational India, underserved both on deposits and loans We continue to increase our secured business proportion each year. We are creating a sustainable, predictable and long term franchise. Digital with high standards of governance and customer service are key compo
Slide 25: Experienced and professional management and Board
Experienced and professional management and Board Experienced board with diverse business experience in well-known financial services institutions and banks Name & Designation Past Experience Name & Designation Past Experience • Insurance Regulatory and Subhash Chandra Khuntia Development Authority
Slide 26: Experienced and professional management and Board
Experienced and professional management and Board International best practices in risk management, compliance and governance introduced by management with an average experience of 27 years in financial services Name & Designation Past Experience Name & Designation Past Experience Name & Designation
Slide 27: Our Journey - Bank History, Key Milestones & Achievements
Our Journey - Bank History, Key Milestones & Achievements 4th largest Small Focusing on a Focus on Finance Bank in Serving Focused on Strong customer centric diversifying Access to low- Strong emphasis India in terms of underbanked MSME and technology base approach to advances by cost diversified on
Slide 28: Our Strength
Our Strength Digitalised bank with Pan-India presence with strong brand recognition Integrated Risk and Governance Framework Professional and Experienced Management and Board Customer-centric organization with > 16 years’ experience in serving aspirational India Diversified asset book with majority
Slide 29: Our Strategies
Our Strategies Anchor Bank Increasing secured loans book Improve CASA and Retail Deposits Increase product range for existing segments Continued Focus on digitized operations Deepen customer relationships Focus on Risk and Compliance Optimizing Balance Sheet 29
Slide 30: Thank You
Jana Small Finance Bank A SCHEDULED COMMERCIAL BANK Thank You
Slide 31: DTA of Rs. 740 crores till FY 2027 can be utilized
DTA of Rs. 740 crores till FY 2027 can be utilized Excluding DTA and Particulars As reported Excluding DTA Applying Tax PBT 249 249 249 DTA 19 - - Provision for Tax - - 62 PAT 267 249 187 ROA 1.6% 1.5% 1.1% ROE 14.5% 13.5% 10.1% • Balance DTA of Rs. 740 crores not yet recognized. The amount is avail
Slide 32: Abbreviations
Abbreviations Abbreviation Expansion Abbreviation Expansion CASA Current Account and Savings Account AUM Assets Under Management CRAR Capital-to-Risk Weighted Asset Ratio NBFC Non-Banking Financial Company GNPA Gross Non-Performing Assets MFI Micro Finance institution NNPA Net Non-Performing Assets
Slide 33: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Jana Small Finance Bank (the “Bank”) and no part of it shall form the basis of or be relied upon in connection with an
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