Utkarsh Small Finance Bank Limited · NSE:UTKARSHBNK

Utkarsh Small Finance Bank — Q1 FY25 Earnings Presentation

49 slides from Utkarsh Small Finance Bank's earnings presentation, Aug 3, 2024

  1. Slide 1: Exchange intimation letter: Investor Presentation

    August 3, 2024 The BSE Limited National Stock Exchange of India Limited 543942, 958095, 959644, 968226, 975790 UTKARSHBNK Dear Sir/Madam, Sub: Investor Presentation Further to our letter dated July 30, 2024 intimating about Earnings Conference Call, please find attached Investor presentation which w

  2. Slide 2: Investor Presentation Q1 FY25

  3. Slide 3: Key Highlights Q1, FY25

    Key Highlights Q1, FY25 01 Gross loan portfolio growth 31% YoY, deposits growth 30% YoY 02 Consistent increase in share of secured loan portfolio – 35% as on June 30, 2024 03 Continued healthy traction in Retail Term Deposits Acquisition – Retail Term Deposits grew 48% YoY^ 04 Highest ever quarterly

  4. Slide 4: Key Highlights Q1'FY25

    Key Highlights Q1’FY25 ₹18,798 cr. vs. ₹18,163 cr. vs. ₹137 cr. vs. ₹3,119 cr. vs. 916 vs. [851] 2.8% vs. [3.1%] [₹14,394 cr.] [₹13,967 cr.] [₹107 cr.] [₹2,110 cr.] Banking Outlets Gross NPAs Gross Loan Deposits Profit After Tax Capital + Reserves Portfolio 30.6% 30.0% / 47.7% ₹311 cr. vs. 0.26% vs.

  5. Slide 5: Journey and Franchise; Portfolio Build Up; Deposits Build Up; Financial Performance

    Journey and Franchise Portfolio Build Up Deposits Build Up Financial Performance Technology, ESG & CSR 4

  6. Slide 6: Journey and Franchise

    Journey and Franchise Committed journey of ~14 years from Microfinance to Small Finance Bank to Listed Company Significant presence in rural & semi urban locations and under penetrated States of the Country Differentiated branch network to ensure relevant product offerings for customers & ensuring c

  7. Slide 7: Utkarsh Journey

    Utkarsh Journey In Jul-23 Bank launched IPO to raise equity capital of ₹500 crore; IPO oversubscribed >100 X; FY25 Higher ever annual PAT of ₹498 crore in FY24 Highest ever quarterly FY24 operating profit (Pre- provision) of >₹300 Launched digital on- crore in Q1 FY25; Bank’s Conversion of Capital +

  8. Slide 8: Business Overview

    Business Overview Focus on Financial inclusion, offer a range of financial products and services that address the specific requirements of customer segments Micro-Banking 61% Other Retail Loans 29% Joint Liability Business MSME Loans Housing Group Loans Loans (Retail Assets) Loans Asset 57% 4% produ

  9. Slide 9: Diversified distribution network

    Diversified distribution network Extensive physical network of Banking Outlets (Jun’24) Potential for Retail Assets within existing Branches (Jun’24) >50 Outlets Total MB MSME HL Wheels STATES Banking GB Outlets 1 <50 Outlets Outlets Locations Locations Locations Outlets No Outlets 3 Bihar 222 204 1

  10. Slide 10: Strategies

    Strategies Continue diversifying asset portfolio  Leverage wide base of existing customers in the unserved and underserved segments  Extend products offering from JLG loans to individual loans, affordable housing and other new products  Focus on offering working capital and term loans to MSMEs, s

  11. Slide 11: Portfolio Build-up

    Portfolio Build-up Loan portfolio grew 31% YoY Rural & semi urban franchise, deep rooted understanding of our core geographies, proven track record - key strength of our micro-banking lending Increasing share of secured lending with build-up of MSME, Housing & CV / CE loan book 10

  12. Slide 12: Loan Portfolio Build-up

    Loan Portfolio Build-up All Amounts in ₹ Crores CAGR% Loan Book (Mar-20) Product (FY20-Q1 FY25) Joint Liability Group Loans (JLG)* 15% Wholesale Housing Retail Lending Loans 18,798 Micro-Banking Business Loans (MBBL) 158% 18,299 Loans 5% 1% Others* (MSME) Other Retail Loans** 77% 2% 4% 1,872 JLG* 1,

  13. Slide 13: Micro-Banking Lending

    Micro-Banking Lending 12

  14. Slide 14: Micro-Banking Lending

    Micro-Banking Lending All Amounts in ₹ Crores Portfolio Outstanding 26% YoY Growth JLG MBBL 9,059 9,292 10,054 11,313 11,387 MBBL Customer Base >30 Lakh >87k penetration 678 715 level <3%, 6% 559 391 476 significant Portfolio ₹10,672 Crore ₹706 Crore potential to grow 10,634 10,672 Average Ticket Si

  15. Slide 15: Joint Liability Group (JLG) Lending

    Joint Liability Group (JLG) Lending All Amounts in ₹ Crores Portfolio 8,667 8,816 9,495 10,634 10,672 Geographical Split of JLG Portfolio Disbursements* 26% YoY Growth Maharashtra Madhya Other States 4% Pradesh 7% 3,472 Odisha 8% 4% Presence across 13 2,858 States / UTs 2,217 2,260 Jharkhand 8% 1,78

  16. Slide 16: Micro-Banking Business Loans

    Micro-Banking Business Loans All Amounts in ₹ Crores Portfolio 387 470 553 671 706 Geographical Split of Portfolio Disbursements JHARKHAND MADHYA 29% YoY Growth 3% PRADESH MAHARASHTRA 3% 3% 208 ODISHA 4% UTTARAKHAND 160 1% 148 UTTAR 138 PRADESH 107 36% BIHAR 50% Q1,FY24 Q2,FY24 Q3,FY24 Q4,FY24 Q1,FY

  17. Slide 17: Other Retail Lending

    Other Retail Lending MSME (Retail Assets) Housing Loans CE & CV Loans 16

  18. Slide 18: MSME (Retail Assets) Lending

    MSME (Retail Assets) Lending All Amounts in ₹ Crores Portfolio Outstanding 2,745 2,557 2,183 1,977 1,724 Secured Unsecured Micro LAP / Business Loans Business Loan Overdraft (LAP) Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Disbursements (9% YoY Growth) o Significant presence in our core geography 11.5% 11.6

  19. Slide 19: Housing Loans

    Housing Loans All Amounts in ₹ Crores Portfolio Outstanding 677 716 Retail Housing Loans Affordable Housing 627 590 557 o Significant presence in our core geography Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 o Currently offering HL product from 56 locations, Disbursements (13% YoY Growth) significant headro

  20. Slide 20: CE & CV Loans

    CE & CV Loans All Amounts in ₹ Crores Portfolio Outstanding 1,010 CV (New) CE (New) CV & CE (Used) 944 839 741 •88% of total •8% of total •4% of total 637 portfolio portfolio portfolio Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 o Lending primarily to small fleet operator segment Disbursements (12% YoY Growt

  21. Slide 21: Wholesale Lending

    Wholesale Lending All Amounts in ₹ Crores Portfolio Break up (Mar-20) Portfolio Break up (Jun-24) WSL Jun-24 Jun-23 Mar-24 Portfolio O/s ₹1,872 ₹1,617 ₹1,882 Business Started Business Business Share in Gross Loan Portfolio 10% 11% 10% Banking Group Banking in FY21 Banking Group 0% 31% Rating Wise WS

  22. Slide 22: Deposits Build-up

    Deposits Build-up Deposits grew by 30% YoY; Retail Term Deposits grew 48% YoY Expanded General Banking Franchise significantly over last 3 year Targeting top-100 deposits centres of the country Focus on building retail franchise 21

  23. Slide 23: Deposits Trend & Composition

    Deposits Trend & Composition All Amounts in ₹ Crores Deposits Trend Deposits Composition Deposits (30% YoY Growth) 19% 20% 20% 21% 19% CASA 97% 101% 99% 62% 66% 68% 66% 67% CASA + RTD 102% 100% 98% 94% 93% 20,000 96% 94% 92% 18,000 90% 88% 18,163 86% 84% 17,473 Institutional Term Deposits 82% 16,000

  24. Slide 24: Deposits Trend & Composition (Contd.)

    Deposits Trend & Composition (Contd.) All Amounts in ₹ Crores Geographically well diversified Deposits* mix Retail Term Deposits Tenure wise Break up 17.7% Mar-23 Jun-24 Uttar Pradesh Maharashtra 15.9% 3 Years and above 3 Years and above 7% 22% NCT of Delhi 11.6% Haryana 8.2% Punjab 6.5% Uttarakhand

  25. Slide 25: Asset Quality Movement

    Asset Quality Movement All Amounts in ₹ Crores Write off 82 92 49 91 104 Jun-24 Jun-23 Mar-24 Gross NPA % 2.8% 3.1% 2.5% PCR% 89.8% 94.6% 93.8% 98.9% 91.0% Net NPA % 0.3% 0.3% 0.0% 464 476 431 404 418 SMA 1 & 2 % 2.6% 1.8% 1.9% 1.9% 1.4% 44 22 29 43 4 Jun'23 Sep'23 Dec-23 Mar-24 Jun-24 Gross NPAs Ne

  26. Slide 26: Micro-Banking – Asset Quality

    Micro-Banking – Asset Quality Collection Efficiency (excl. Pre-Payments) 97% 97% 96% 98% 96% Jun-24 Mar-24 Dec-23 Sep-23 Jun-23 SMA 0 % 1.8% 0.5% 0.8% 0.9% 0.8% SMA 1 % 1.2% 0.5% 0.7% 0.7% 0.5% SMA 2 % 1.2% 1.1% 0.9% 0.8% 0.7% NPA % 3.1% 2.9% 3.8% 3.6% 4.0% Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 25

  27. Slide 27: Financial Performance

    Financial Performance Stable & consistent financial performance Focus on cost efficiency resulting healthy cost income ratio Healthy Operating Profitability Building floating provision to ensure resiliency 26

  28. Slide 28: Enduring Profitability Metrics

    Enduring Profitability Metrics Operating Profit & PAT – Quarterly Trend (₹ in crores) Annual Operating Profit & PAT Q1,FY25 PPoP (₹ in crores) up by 41% YoY YoY Growth 311 997 282 19% 238 256 838 221 Q1,FY25 PAT up by 28% YoY YoY Growth 160 137 498 23% 107 114 116 405 Q1' FY24 Q2' FY24 Q3' FY24 Q4'

  29. Slide 29: Enduring Profitability Metrics (Contd.)

    Enduring Profitability Metrics (Contd.) 2.7% 2.7% Credit cost 57.0% 56.5% 57.3% 2.3% 54.7% 54.1% 2.1% at 2.2% for 1.7% Q1, FY25, excluding floating provision 12.8% 13.9% 13.5% 10.3% 10.8% created of ₹20 crore Credit Cost Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25

  30. Slide 30: Cross-Cycle Return on Equity (RoE)

    Cross-Cycle Return on Equity (RoE) Additionally, built floating provision cushion during this period; ₹169 Average: 15.9% crore as on Jun-24 22.9% 20.5% 19.5% 18.1% 10.1% 4.2% FY20 FY21 FY22 FY23 FY24 Q1'FY25 29

  31. Slide 31: Break-up of other income

    Break-up of other income ₹ 92 crore ₹ 121 crore ₹ 105 crore 14% 24% 28% 10% 13% 47% 42% 38% 6% 28% 26% 24% Q1'FY24 Q4'FY24 Q1'FY25 Loan Processing Fee PSLC Income Recovery from written off accounts General Banking & Other Income 30

  32. Slide 32: FY25 Guidance

    FY25 Guidance • Gross loan portfolio growth ~30% for FY25 Loan Portfolio • Increase in share of secured loans, share of MB loans to decline by ~3-4% from 62% as on Mar-24 • Deposits growth to be higher than credit growth & reduction in CD ratio Deposits • Share of CASA + RTD to improve from level of

  33. Slide 33: CRAR & Tier 1

    CRAR & Tier 1 All Amounts in ₹ Crores Particulars Jun-24 Jun-23 Mar-24 Risk Weighted Assets 13,358 10,266 12,994 Total Capital 3,096 2,033 2,932 Tier-I Capital 2,724 1,839 2,722 Tier-II Capital 373 194 210 CRAR 23.18%^ 19.81% 22.57% Tier-I CRAR 20.39%^ 17.92% 20.95% Tier-II CRAR 2.79% 1.89% 1.62% ^P

  34. Slide 34: Profit & Loss: For the quarter ended June 30, 2024

    Profit & Loss: For the quarter ended June 30 , 2024 th All Amounts in ₹ Crores Particulars Q1’FY25 Q1’FY24 Y-o-Y Q4’FY24 Q-o-Q FY24 INCOME Limited Review Audited Audited Total Interest Earned 966 720 34% 896 8% 3,178 Less : Interest Expense 393 298 32% 356 10% 1,293 Net Interest Income 573 422 36% 5

  35. Slide 35: Balance Sheet: As on June 30th, 2024

    Balance Sheet: As on June 30th, 2024 All Amounts in ₹ Crores June 30th, June 30th, March 31st, Particulars Y-o-Y Q-o-Q 2024 2023 2024 CAPITAL & LIABILITIES Limited Review Audited Capital and Reserves 3,119 2,110 48% 2,973 5% Deposits 18,163 13,967 30% 17,473 4% Borrowings 2,113 2,245 (6)% 1,995 6% O

  36. Slide 36: Shareholding Pattern

    Shareholding Pattern Bank Shareholders as on June 30th, 2024 Top 10 Shareholders as on June 30th, 2024 Utkarsh CoreInvest Limited Mirae Asset (Mutual Funds) Olympus ACF Pte. Ltd. Foreign Individuals & Companies, Aditya Birla Sun Life Trustee Private Limited AIFs, 1.2% FPI, Others, NRIs, 5.9% Bodies

  37. Slide 37: Diversified & Experienced Board

    Diversified & Experienced Board Board Members of the Bank Parveen Kumar Gupta Ajay Kumar Kapur Part Time Non-Executive Chairman & Independent Director Independent Director • Certified Associate of the Indian Institute of Bankers • Previous associations with SBI as Managing Director & BoB • Previous

  38. Slide 38: Leadership Complementing Bank's Strengths

    Leadership Complementing Bank’s Strengths Senior Management Team Govind Singh - Managing Director & Chief Executive Officer • Over 25 years of experience in the banking and financial services sector and in particular the microfinance industry • Previously associated with Utkarsh CoreInvest (Bank’s P

  39. Slide 39: Tech, ESG & CSR

    Tech, ESG & CSR Technology Setup to support Physical Infrastructure and Digital Requirement Integrating ESG Sensitivities into our operations & decision- making Contributing to the well-being of the society 38

  40. Slide 40: Technology Setup to support Physical Infrastructure and Digital Requirement

    Technology Setup to support Physical Infrastructure and Digital Requirement P H Supporting extensive branch network of Y ISO 27001 Certification for IT operation 916 branches S I C Tab enabled feet-on-street for acquisition Micro ATM for Cash Withdrawal in Remote A and collections locations L D Exte

  41. Slide 41: 360-Degree Transformation → Bank Future Growth Ready

    360-DegreeTransformation → Bank Future Growth Ready Business and Diversified Better product Customers experience & Product offerings services Enhanced Shareh revenue Faster TAT olders Omnichannel Digital Journey streams Shareh olders experience Employees & Improved efficiency & Reporting Compliance

  42. Slide 42: Business Technology Transformation (360-Degree Transformation)

    Business Technology Transformation (360-Degree Transformation) 3 Yrs. Enterprise Level Transformation Technology Journey Future Digitisation Cost* touching Technology Growth Customers, Partners Cost* Ready and Employees ~8% of Total 9-10% of Total Operating Expenses Operating Expenses • Core Banking

  43. Slide 43: Environment, Social & Governance

    Environment, Social & Governance Environment Social Governance Practice is aligned Committed to give • Exclusion List • Service to • Diversified Board with the national due consideration to • Training and Bottom of • Board environmental & awareness pyramid independence E&S laws and social sensitivit

  44. Slide 44: Awards & Accolades

    Awards & Accolades Credit Modeling & Risk Team of the Year Award at the India Credit Risk Summit & Awards 2024 Most Preferred Workplace Best Technology Talent at 19th 2023-24 (BFSI Edition) by Annual Banking Technology Marksmen Daily Conference, Expo & Citations 43

  45. Slide 45: Awards & Accolades (Contd.)

    Awards & Accolades (Contd.) Best Customer Experience Strategy by India Customer Excellence (CX) Summit & Awards 2023 Employee Excellence 2023 Most Trusted BFSI Brands by by the Times Group – ET Team Marksmen Daily – EDGE 2023-24 44

  46. Slide 46: Utkarsh Welfare Foundation: CSR Initiatives

    Utkarsh Welfare Foundation: CSR Initiatives SKILL & ENTERPRISE VILLAGE DEVELOPMENT OTHER PHILANTHROPIC FINANCIAL AWARENESS HEALTH INITIATIVES DEVELOPMENT PROGRAM PROGRAM ACTIVITIES Initiatives Lives Impacted Lives Impacted Lives Impacted Blood Donation Camps, Lives Impacted 16,40,000+ 43,000+ 17,400

  47. Slide 47: Utkarsh Welfare Foundation: CSR Initiatives (Contd.)

    Utkarsh Welfare Foundation: CSR Initiatives (Contd.) Financial Awareness Polyclinic Camps E-Clinics Digital Smart Classes Village Development Women Entrepreneurship Blood Donation Camps Health Awareness Program Learning Enhancement Agri Input Support Weavers Support Program Support to Old Age Home P

  48. Slide 48: Disclaimer

    Disclaimer Utkarsh Small Finance Bank Limited (also referred to as ‘Bank’). By attending a meeting where this presentation is made, or by reading this presentation material, you agree to be bound by following limitations: The information in this presentation has been prepared for use in presentation

  49. Slide 49: THANK YOU.

    THANK YOU. ©) Utkarsh Small Finance Bank

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