Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Q4 FY23 Earnings Presentation
56 slides from Ujjivan Small Finance Bank's earnings presentation, May 11, 2023
Slide 1: Exchange intimation letter
USFB/CS/SE/2023-24/15 Date: May 11, 2023 To, National Stock Exchange of India Limited BSE Limited Listing Department, Listing Compliance, Exchange Plaza, C -1, Block G, Bandra Kurla P.J. Tower, Complex, Bandra (E), Dalal Street, Fort, Mumbai-400 051 Mumbai-400 001 Symbol: UJJIVANSFB Scrip Code: 5429
Slide 2: Press Release: Milestone year; Setting new benchmarks
Press Release Milestone year; Setting new benchmarks Best ever performance across all parameters with PAT at ₹310 crore/₹1,100 crore for Q4/ FY23 Disbursed ₹6,001 crore /₹20,037 crore for Q4/ FY23; Gross loan book up 33% Y-o-Y/ 10% Q-o-Q Collections/ asset quality at industry best; PAR at 3.8%; GNPA
Slide 3: CEO statement and about Ujjivan Small Finance Bank
Mr. Ittira Davis, MD & CEO, Ujjivan Small Finance Bank said, “FY23 started on a high note and ended on even higher note as Q4FY23 marked several milestones in the Bank’s history, set benchmarks and achieved success on multiple fronts. We delivered an all-round performance and met all our guidances.
Slide 4: Q4 FY23 Investor Presentation
Q4 FY23 INVESTOR PRESENTATION
Slide 5: Disclaimer
DISCLAIMER • This presentation has been prepared by Ujjivan Small Finance Bank Limited (the “Bank”) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. All information contained has been prepared solely by
Slide 6: Milestone Year; Setting New Benchmarks
MILESTONE YEAR; SETTING NEW BENCHMARKS 75+ Lakhs Industry-first “VVV# 1,100 Crores Total based” mobile banking app targeting semi- Customers 20K+ Crores literate/ less tech-savvy Net Profit customers to drive 77 Lakhs digital penetration ₹ 1,100 Crores Yearly up 19% YoY Vs Disbursement (₹ 415) Crore
Slide 7: Key Highlights – Q4 FY23/FY23 (1/2)
KEY HIGHLIGHTS – Q4 FY23/FY23 (1/2) Gross Loan Book Total Deposits Retail TD* ₹ 24,085 cr ₹ 25,538 cr ₹ 10,118 cr Up 33% yoy Up 40% yoy Up 69% yoy Mar’22: ₹18,162 cr Mar’22: ₹18,292 cr Mar’22: ₹5,993 cr GNPA/NNPA CRAR Employees 2.6%/0.04% 25.8% 17,870 Down 444/54 bps Up 682 bps Up 6% yoy Mar’22: 7.1
Slide 8: Key Highlights – Q4 FY23/FY23 (2/2)
KEY HIGHLIGHTS – Q4 FY23/ FY23 (2/2) Q4FY23 Vs Q4FY22 FY23 Vs FY22 NII ₹ 738 cr Up 36% Vs ₹ 544 cr ₹ 2,698 cr Up 52% Vs ₹ 1,774 cr NIM 9.1% Down 85 bps Vs 10.0% 9.5% Up 64 bps Vs 8.8% PPoP ₹ 411 cr Up 70% Vs ₹ 242 cr ₹ 1,485 cr Up 133% Vs ₹ 637 cr PAT ₹ 310 cr Up 145% Vs ₹ 127 cr ₹ 1,100 cr Up Vs ₹
Slide 9: Liabilities: Driving Retail Deposit Base
Liabilities: Driving Retail Deposit Base 6
Slide 10: Strong Deposit Growth with Retail at Fore-front
STRONG DEPOSIT GROWTH WITH RETAIL AT FORE-FRONT Deposits break-up (₹ in crore) CASA break-up (₹ in crore) Bulk TD Retail TD CASA Certificate of Deposits SA CA 25,538 23,203 217 6,744 20,396 147 6,744 6,070 18,292 18,449 585 397 6,070 15,563 756 344 4,993 482 13,673 14,090 5,496 374 4,993 5,155 386 2
Slide 11: Well-Diversified Deposit Mix
WELL-DIVERSIFIED DEPOSIT MIX Deposits from individual continues to grow with our focus on building granular deposit base 8
Slide 12: Assets: Well-diversified growth with new customer acquisition
Assets: Well-diversified growth with new customer acquisition 9
Slide 13: Gross Loan Book and Disbursement Trend
GROSS LOAN BOOK AND DISBURSEMENT TREND Strong disbursements (₹ in crore) Consistent growth in Gross Loan Book (₹ in crore) Secured (%) 30% 29% 29% 28% 27% 6,001 24,085 21,895 20,938 19,409 4,870 4,868 4,841 18,162 4,327 Q4-FY22 Q1-FY23 Q2-FY23 Q3-FY23 Q4-FY23 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Healt
Slide 14: Growing Across Segments
GROWING ACROSS SEGMENTS Gross Loan Book – Segment wise (₹ in crore) % Gross Growth Growth Product Loan Book Y-o-Y Q-o-Q MGL IL MSME Housing FIG Others 24,085 Micro Group Loans 59% 36% 11% 598 21,895 1,128 543 1,010 3,401 Individual Loans 13% 67% 19% 18,162 3,144 535 1,593 855 MSME 7% (7%) (9%) 1,744
Slide 15: Disbursement, Yield and Average Ticket Size
DISBURSEMENT, YIELD AND AVERAGE TICKET SIZE Product wise Disbursement (₹ in crore) Yield (%) – Segment wise MGL+IL Overall MSME Housing MGL IL MSME Housing FIG Others^ 21.6% 21.0% 6,001 20,037 20.0% 235 828 18.4% 18.9% 17.8% 318 918 1,391 439 14.1% 14.0% 13.5% 4,870 4,838 843 81 159 120 294 13.1% 12
Slide 16: Focus on Volume Growth in Micro Group Loans
FOCUS ON VOLUME GROWTH IN MICRO GROUP LOANS Loan Interval (Months) New regulatory norms implemented during 20 H2FY23; no major change in rejection rates 14 10 Increase in market share driven by customer 8 Credit Exposure/ Borrower (₹) acquisition – 9.1 lakh* customers acquired during FY23 43,879 Ban
Slide 17: Sustained improvement in asset quality
Sustained improvement in asset quality 14
Slide 18: Collections Sustaining; NDA Collections at ~100%
COLLECTIONS SUSTAINING; NDA COLLECTIONS AT ~100% Collection % (against month due) Collection Efficiency % (incl Additional collections) Cashless MB collections 116% 117% 29% 115% 115% 112% 112% 26% 111% 111% 111% 111% 111% 110% 111% 22% 20% 19% 100% 99% 99% 99% 99% 100% 99% 100% 100% 99% 100% 100% 9
Slide 19: Collection Efficiency
COLLECTION EFFICIENCY ₹ Crore Jan’23 Feb’23 Mar’23 Additional Additional Additional Verticals Due Collection % Due Collection % Due Collection % Collection Collection Collection MGL+IL 1,123 1,123 100% 97 1,171 1,171 100% 92 1,208 1,215 101% 121 MSME 26 23 88% 25 26 23 89% 25 26 23 90% 29 Housing 43
Slide 20: Sustained Collections Driving Better Asset Quality
SUSTAINED COLLECTIONS DRIVING BETTER ASSET QUALITY NPA & SMA have shrunk significantly Total Provision* (₹ in cr) & PCR 7.1% Std+NPA Provision Floating PCR% GNPA 5.9% NNPA ₹30 Cr moved Additional, ₹60 Cr Additional, ₹10 Cr Additional, ₹30 Cr 4.4% SMA to Tier II grouped under grouped under grouped un
Slide 21: Sustained Collections Driving Better Asset Quality
SUSTAINED COLLECTIONS DRIVING BETTER ASSET QUALITY SMA Pool & Restructured Book have shrunk significantly highlighting strong asset quality SMA-0 SMA-1 SMA-2 NPA Significant reduction in stress book Restructured Book 32.1% ₹ crores RF 1.0 RF 2.0 Total 30.8% GNPA+RF Book 25.2% Micro Banking (GL+IL) 8
Slide 22: Financial Overview
Financial Overview 19
Slide 23: Financial Overview
FINANCIAL OVERVIEW NII (₹ in crore) & NIM* Cost to Income Ratio & Operating Expenses/ Average Assets (%) 10.0% 10 .6% 80 0 9.6% 9.8% 10 0% 7.7% 9.0% 9.4% 10 .1% 9.1% 90 % 7.1% 6.6% 8.0% 6.2% 6.4% 9.6% 80 % 7.0% 70 0 9.1% 70 % 6.0% 8.6% 60 % 60 0 5.0% 8.1% 50 % 738 4.0% 697 7.6% 40 % 663 50 0 600 64%
Slide 24: Financial Overview – FY23
FINANCIAL OVERVIEW –FY23 Pre-Provision Operating Profit (₹ in Cost to Income Ratio & Operating NII (₹ in crore) & NIM* Crore) & PPoP RoA Expenses/ Average Assets (%) PPoP Opex/ Av NIM 3,00 0 8.8% 9.5% 2.9% 5.2% 6.8% 6.3% RoA Assets 80 % 70 % 2,50 0 60 % 2,00 0 50 % 2,698 1,485 1,50 0 70% 40 % 55% 1,
Slide 25: Income Statement
INCOME STATEMENT Particulars (₹ in crore) Q4-FY23 Q4-FY22 YoY Growth Q3-FY23 QoQ Growth FY23 FY22 YoY Growth Interest Earned 1,185 818 45% 1,082 10% 4,165 2,813 48% Other Income 179 127 41% 139 29% 589 360 64% Total Income 1,364 946 44% 1,221 12% 4,754 3,173 50% Interest Expended 447 274 63% 385 16%
Slide 26: Total Income - Breakup
TOTAL INCOME - BREAKUP Particulars (₹ in crore) Q4-FY23 Q4-FY22 Q3-FY23 FY23 FY22 Interest on loan 1,037 759 957 3,708 2,576 Int. on investments 142 59 118 429 237 Securitization Income 6 0 7 28 0 Total Interest Earned 1,185 818 1,082 4,165 2,813 Processing Fees 78 62 64 259 175 PSLC Income 4 0 0 28
Slide 27: Balance Sheet
BALANCE SHEET As at As at As at Particulars (₹ in crore) Mar 31, 2023 Dec 31, 2022 Mar 31, 2022 CAPITAL AND LIABILITIES Net worth 4,209 4,064 2,803 Capital 2,155 2,155 1,928 Employees Stock Options Outstanding 51 47 42 Reserves and Surplus 2,003 1,862 832 Deposits 25,538 23,203 18,292 Borrowings 2,6
Slide 28: Healthy Capital Adequacy
HEALTHY CAPITAL ADEQUACY (₹ in Crore) Mar’22 Jun’22 Sep’22 Dec’22 Mar’23 Credit Risk Weighted Assets 12,879 12,956 13,726 15,369 16,361 Tier I Capital 2,279 2,423 3,208 3,511 3,712 Tier II Capital* 166 172 457 488 511 Total Capital 2,446 2,595 3,665 3,999 4,223 CRAR 18.99% 20.03% 26.70% 26.02% 25.81
Slide 29: Ujjivan – Platform for growth
Ujjivan – Platform for growth 26
Slide 30: Digital End-to-End Through the Value Chain
DIGITAL END-TO-END THROUGH THE VALUE CHAIN Cross-Sell • Tie-ups & Partnerships : platform play to cross sell via Ujjivan Servicing • Seamless payments to people and merchants through UPI & Onboarding IMPS • Smart Automated • Ease of collection enabled Messaging to guide client through BBPS platform.
Slide 31: Hello Ujjivan: Industry-first, Driving Digital Penetration
HELLO UJJIVAN: INDUSTRY-FIRST, DRIVING DIGITAL PENETRATION Hello Ujjivan went live on Google Playstore for Android users in Nov’22 13th Edition Aegis Graham Bell Awards 2022 Howforis Innovation in Consumer it different Tech from Regular Mobile Banking? 01 02 03 • Voice guidance for the users in 8 On
Slide 32: Multiple Channels to Serve Customers
MULTIPLE CHANNELS TO SERVE CUSTOMERS • 25 states and UTs • 629 Banking • Phone Banking • Video Banking • 2 Asset Centers Outlets (BO) (200+ services in 9 Indian Languages) • Voice Bot • 271 districts • 517 ATMs/ACRs Alternate Physical Channels Infra • QR code/ Ujjivan Pay • POS • Internet Banking •
Slide 33: Serving Customers Through Multiple Channels
SERVING CUSTOMERS THROUGH MULTIPLE CHANNELS ● Web-based, can be accessed from any system ● 517 biometric enabled ATMs including 60 ACRs* ● Access Management - Single sign in for all accounts, Easy access to multiple relationships ● Customer alerts for each incorrect PIN entry & Green with one app PI
Slide 34: Business Strategies and Frameworks
BUSINESS STRATEGIES AND FRAMEWORKS Digital Inclusion • Multi-channel • Efficiency/ approach Productivity • Wider customer • Analytics reach • Cross-sell/ Up- New Products, • Better sell ~₹ 400 Cr* capex on experience focus on secured Tech platforms • Housing • Gold • Analytics-based • LOS for secure
Slide 35: FY24: To Further Build on the Strong Platform
FY24: TO FURTHER BUILD ON THE STRONG PLATFORM Asset Deposits Ratios Gross Loan Book Growth- >25% Deposit Growth: >30% NIM: >9.0% Credit Cost: <100bps CASA growth: >35% RoE: >22%
Slide 36: Ujjivan – Building a Mass Market Bank
Ujjivan – Building a Mass Market Bank 33
Slide 37: Well Diversified Pan India Presence; Added 31 New Branches
WELL DIVERSIFIED PAN INDIA PRESENCE; ADDED 31 NEW BRANCHES DURING THE QUARTER • 25 states and UTs (161 URCs) Mar’23 Gross Loan Book • 629 Banking Outlets (BO) • 271 districts TN 15.5% • 517 ATMs# KA 13.4% 1 CH:2 WB 12.2% 16 MH 8.9% 4 GJ 7.9% 37 DL:10 BR 7.3% 30 18 UP 6.5% 41 42 1 HR 5.5% 8 RJ 4.1% 4
Slide 38: Expanding Liability Customer Base
EXPANDING LIABILITY CUSTOMER BASE Customer Base Growth Customer Base – Basis of Branch Classification Asset Only Asset & Liability Liability Only 8% 76.9 73.0 69.4 37% 25% 64.8 66.0 34.4 32.2 30.1 26.9 27.4 30% Urban Semi-urban Metro Rural *Semi-Urban branches largely cater to rural customers • Liab
Slide 39: Well Placed to Gain from Evolving Country Demographics
WELL PLACED TO GAIN FROM EVOLVING COUNTRY DEMOGRAPHICS Bank’s Enterprise Bank’s Individual SFBs suited to reap benefits of the expanding middle-class expansion* Products Products 219 Mn 293 Mn 386 Mn High High High Primary focus 1Mn (1%) 8Mn (3%) 29Mn (7%) areas for large private sector Financial ba
Slide 40: Comprehensive Suite of Products & Services
COMPREHENSIVE SUITE OF PRODUCTS & SERVICES Micro, Small & Medium Micro-Banking Enterprise Loans Housing Loans Financial Institutions Group Others • Group Loans Loan • Individual Loans • Top up Loans • Construction and Purchase • Term loan to NBFCs, HFCs • Two-wheeler loans • Secured Enterprise and •
Slide 41: Building Stable and Granular Liability Base
BUILDING STABLE AND GRANULAR LIABILITY BASE • Aspiring middle class • TASC • Senior Citizens • MSME & Enterprises Customer • Women • Need-base products & services • NRs • Focus on value-add CA, SA, segment + • HNI fee-based products Tailor-made products • Multi-channel approach • Expanding branch-re
Slide 42: Strong Independent Board (1/2)
STRONG INDEPENDENT BOARD (1/2) Name Education Experience International banker with 40+ years of banking experience having worked extensively in the Ittira Davis PGDM, Indian Institute of Management, Middle East and Europe. Was previously associated with Europe Arab Bank, Citibank in India and Managi
Slide 43: Strong Independent Board (2/2)
STRONG INDEPENDENT BOARD (2/2) Name Education Experience Rich work experience of 27 years in Banking industry with a focus on risk management. Bachelor of Arts (Economics), Fellow Rajesh Kumar Jogi Previously was associated with Natwest Group (erstwhile RBS Group) and was Chief Risk Officer, member
Slide 44: Key Growth Strategies
KEY GROWTH STRATEGIES COMPREHENSIVE & RELEVANT PRODUCTS STRONG DISTRIBUTION & COLLECTION NETWORK 01 04 ● Entire gamut of asset and liability products to attract new ● Use right combination of physical and digital channels and customers and deepen existing customer relationships partnerships to expan
Slide 45: Annexures
Annexures 42
Slide 46: Awards & Accolades
AWARDS & ACCOLADES 18th IBA Technology Conference, Expo & India Fraud Risk Management Summit & IBSi Global FinTech Innovation Awards Awards Awards 2023 2022 Payment and small finance bank category:- Best Transaction Fraud Monitoring and Best Risk Management Implementation Best IT Risk Management Dec
Slide 47: Investing in Brand Building
INVESTING IN BRAND BUILDING 44
Slide 48: Shareholding Pattern – Mar'23
SHAREHOLDING PATTERN – MAR’23 Raised ₹ 475 Cr via fresh equity issuance in Sep’22; complying with Minimum Public Shareholding requirement Promoter* MF Insurance Companies Resident Individuals/HUF Foreign investors Alternative Investment Fund Others 2.7% 1.9% 1.1% 14.7% 4.3% 1.6% 73.7% *Promoter is U
Slide 49: Social Services - Programs
SOCIAL SERVICES - PROGRAMS 01 02 03 Financial Literacy CSR ESG • Diksha + • Community • Chillar Bank Development Environmental, Social & • FLP - URC • Livelihood Governance . • FLP – MSE • Disaster Relief • FLP Beyond Ujjivan
Slide 50: Financial Literacy – Diksha+ & Chillar Bank (FY22-23)
FINANCIAL LITERACY – DIKSHA + & CHILLAR BANK (FY-22-23) Enrolment Certification A 1,19,222 Diksha+ customers. D 90% of the customers were certified 40,525 Chillar Bank Cust+ child 98% of the customers were certified Leads Conversions 39% Diksha+ Leads 24% Diksha+ Conversion B E 12% Chiller Bank Conv
Slide 51: FLP for MSE & URC - FLP Beyond Ujjivan
FLP FOR – MSE & URC - FLP BEYOND UJJIVAN FLP Beyond Ujjivan FLP for MSE 87 Entrepreneurs from TNS 56 MSE Customers attended Foundation, Anaha Clinic, the pilot launch at Mantri Society & Marwari Coimbatore & Aligarh Hospitals FLP for URC 13,348 customers across 134 rural branches were covered under
Slide 52: Corporate Social Responsibility & ESG
CORPORATE SOCIAL RESPONSIBILITY & ESG Healthcare & Community 01 Development Livelihood Program ESG • E&Y has been onboarded as strategy partner • BRSR will be published along with Annual Report • Materiality Assessment is in progress Disaster Relief • ESG Frame & strategy People benefitted under Dis
Slide 53: Retail Deposit Franchise Focussed on Customer Acquisition
RETAIL DEPOSIT FRANCHISE FOCUSSED ON CUSTOMER ACQUISITION Customer acquisition • Total deposits grew 40% Y-o-Y to ₹ 25,538 Cr Accounts Nos in ‘000 Retail branch banking Others • Retail TD grew 69% Y-o-Y 320.2 333.5 335.5 303.0 267.2 • CASA deposits grew 35% Y-o-Y; 26.4% of total 245.5 265.1 272.4 19
Slide 54: Increasing Digital Transactions (1/2)
INCREASING DIGITAL TRANSACTIONS (1/2) Increasing Digital Transactions* UPI Transactions 17 80 20 Nos in lakhs Nos in lakhs 70 16 18 Cash Transactions 14 16 13 60 Digital Transactions 82% 11 14 81% 90 0 50 Digital Transaction % 12 79% 786 73 76 40 10 80 .00 % 80 0 30 57 63 8 76% 50 6 688 20 4 70 0 10
Slide 55: Increasing Digital Transactions (2/2)
INCREASING DIGITAL TRANSACTIONS (2/2) Digital penetration among customers continues to show a healthy increase Ranking reflecting leadership* Registered Customer (ITD) (in Transacting Customers (in lakhs) 20 .0 lakhs) 23.9 25 .0 10 .0 10 .0 Cards Cards 9.2 21.8 Transaction @ Transaction 8.3 18 .0 9.
Slide 56: Thank You
THANK YOU For Investor Queries: Mr. Deepak Khetan +91 7045792752 deepak.khetan@ujjivan.com
Ujjivan Small Finance Bank — Q4 FY23 Earnings Presentation on 6ix