Suryoday Small Finance Bank Limited · NSE:SURYODAY
Suryoday Small Finance Bank — Q3 FY2025 Earnings Presentation
41 slides from Suryoday Small Finance Bank's earnings presentation, Jan 23, 2025
Slide 1: Exchange filing cover letter for investor presentation
January 23, 2025 Ref.: SSFB/CS/104/2024-25 To, National Stock Exchange of India Limited BSE Limited Listing Department The Corporate Relations Department Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Fort, Bandra (East), Mumbai —400 051 Mumbai — 400 001
Slide 2: Investor Presentation Q3 & 9M FY25
Investor Presentation Q3 & 9M FY25 January 2025
Slide 3: Table of Content
TABLE OF CONTENT 01 Business Update 02 Company Overview 03 Asset Portfolio 04 Liability Portfolio 05 Financials & Key Ratios 06 Way Forward 07 CSR Initiatives Investor Presentation 2
Slide 4: Safe Harbour
SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Suryoday Small Finance Bank (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 5: Business Update Q3 & 9M FY25
01 Business Update Q3 & 9M FY25 4
Slide 6: Performance Highlights – 9M FY25
PERFORMANCE HIGHLIGHTS – 9M FY25 Figures in ( ) represents 9MFY24 Gross Advances Disbursements Asset Mix Collection Efficiency (one EMI adjusted) ₹ 9,563 Cr ₹ 4,888 Cr IF : RA – 53.3% : 46.7% (+25.8% YoY) (+6.7% YoY) (58.2% : 41.8%) 90.6% (95.6%) Deposits Retail# : Bulk Deposit CASA Ratio Cost of Fu
Slide 7: Key Metrics – Q3 & 9M FY25
KEY METRICS – Q3 & 9M FY25 Gross Advances (INR Cr) Disbursements (INR Cr) Deposits (INR Cr) 2.2% Q-o-Q 25.8% Y-o-Y 12.8% Q-o-Q 6.7% Y-o-Y 9.7% Q-o-Q 49.7% Y-o-Y 9,360 9,563 9,563 7,600 7,600 4,131 4,466 4,466 4,580 4,888 3,174 3,174 8,851 9,708 9,708 6,484 6,484 4,425 5,229 5,097 4,425 5,097 1,792 1
Slide 8: Key Metrics – Q3 & 9M FY25
KEY METRICS – Q3 & 9M FY25 All numbers in ₹ crores, unless otherwise indicated Effective Yield (%) Cost of Funds (%) NIM (%) 137 bps Q-o-Q 94 bps Y-o-Y 17 bps Q-o-Q 37 bps Y-o-Y 125 bps Q-o-Q 36 bps Y-o-Y 20.2% 19.6% 18.3% 20.2% 19.3% 7.5% 7.6% 7.8% 7.3% 7.7% 9.8% 9.7% 9.7% 9.4% 8.4% Q3FY24 Q2FY25 Q
Slide 9: Company overview
02 Company overview 8
Slide 10: Suryoday SFB – Value Proposition
SURYODAY SFB – VALUE PROPOSITION Seasoned management, backed by robust corporate governance Serving the aspiring middle class section of the society Vertical business heads spearheading the SSFB’s growth Currently serving ~3.3 Mn customers proposition. Visible transition in the portfolio mix Targeti
Slide 11: Key Milestones
KEY MILESTONES Suryoday 2.0 As on Dec 2024 AUM crosses INR 9,500 Cr Deposit crosses INR 9700 Cr Vikas Loan portfolio crosses INR 2,700 Cr Customer base - 3.3 Mn 2024 & Branch Network - 708 Beyond IPO & Year of Reset COVID Tailwinds Stabilized operations to pre-pandemic levels AUM crosses INR 5,000 C
Slide 12: Empowering Solutions
EMPOWERING SOLUTIONS Asset Portfolio Liabilities Portfolio TD, RD & Long-Term CASA Inclusive Finance Retail Assets Deposits (53%) (47%) JLG Vikas Loans Vehicle Bulk Deposits Digital FD Mortgage Others (45%) (55%) Financing Expanding Beyond Micro Lending Housing Loans CV FIG Customer profile - Good c
Slide 13: Strong Foothold: Covering 2/3rd of India
STRONG FOOTHOLD: COVERING 2/3RD OF INDIA Branch Distribution Particulars Q3FY25 Q3FY24 Asset focused outlets 387 383 CG:1 Liability focused outlets* 126 99 HR 3 Rural Centers 195 190 DL:6 Total 708 672 48 39 Note: *Includes Composite Branches Geographical Mix of the Branches 41 35 Outlets Asset Focu
Slide 14: Asset Portfolio
03 Asset Portfolio 13
Slide 15: Inclusive Finance: Beyond Micro-Lending
INCLUSIVE FINANCE: BEYOND MICRO-LENDING JLG / NTB VL are the customer acquisition engine Eventually transitioning to comprehensive banking Vikas Loan Share solutions to the household 55% of IF AUM Guardrail 2.0 implemented Graduating customers given Vikas Loans & other bank products Average Ticket S
Slide 16: Inclusive Finance: Shifting Group to Individual
INCLUSIVE FINANCE: SHIFTING GROUP TO INDIVIDUAL Product Description AUM (INR Cr) Parameter JLG Vikas Loans 5,071 5,097 Customer Segment Urban/ Semi Urban Urban/ Semi Urban 3,743 3,386 2,679 2,794 Products Group Loans Individual Loans 2,944 213 1,232 29 Geography Tier 1&2 Tier 1&2 3,173 2,915 2,511 2
Slide 17: Mortgages: Focused Approach
MORTGAGES: FOCUSED APPROACH SSFB offers comprehensive mortgage AUM offerings - Housing & MSME Loans catering to Semi-prime and urban affordable customer segment Present Locations ~ ₹2,000Cr Business Strategy: Focus on retail & Disbursements secured MSME lending. Deepening portfolio in existing SSFB
Slide 18: Mortgages: Sustainable Growth
MORTGAGES: SUSTAINABLE GROWTH Product Description AUM (Rs. Cr) Micro Mortgages Housing Loans (Kushal Parameter LAP (Pragati Loans) Loans) 1,999 Customer Semi Prime / Urban Semi Prime / Urban Affordable / Semi Urban 1,588 347 Segment Affordable Affordable 235 925 Home Loans – Resale / Home loans– Res
Slide 19: Vehicle Financing: Monetizing on Large Opportunity
VEHICLE FINANCING: MONETIZING ON LARGE OPPORTUNITY SSFB is diversifying business through various products under Vehicle 1 Financing Portfolio – CV, TW, Used CV & Car loans Expanding in the rural space, catering the Tier 3 & Tier 4 locations AUM 2 and focusing on going more granular retail base with
Slide 20: Vehicle: Accelerated Growth Over Last 3 Years
VEHICLE: ACCELERATED GROWTH OVER LAST 3 YEARS Portfolio description AUM* (INR Cr) Parameter Commercial Vehicles Two Wheelers Customer Segment Urban / Semi Urban Urban / Semi Urban Products Used and New CVs New Two Wheelers 1,190 Geography Tier 2 & 3 Tier 1, 2 & 3 830 Distribution Hub & Spoke Dealer
Slide 21: FIG & Others
FIG & OTHERS AUM (INR Cr) Portfolio description Parameter FIG Others 1,277 1,161 252 928 313 Customer Segment NBFCs/ Corporates Retail/ MSME 655 240 Individual Lending/ Bill 457 275 1,025 Products Corporate Lending 848 Discounting 243 688 380 214 Distribution Corporates Digital FY21 FY22 FY23 FY24 9
Slide 22: Asset Business Update – Q3 & 9M FY25
ASSET BUSINESS UPDATE – Q3 & 9M FY25 Micro Particulars (INR Cr) JLG VL HL LAP Vehicles FIG Partnership Others Total Mortgage Gross Advances – (₹ Cr) 2303.2 2793.9 727.0 925.4 346.5 1190.4 1024.6 84.8 167.4 9,563.2 Disbursement – Q3 FY25 (₹ Cr) 309.2 397.8 56.6 127.6 50.0 243.5 228.2 6.7 47.3 1,466.9
Slide 23: CGFMU Cover Impact
CGFMU COVER IMPACT P/L credit cost walkthrough Rationale for CGFMU – Mitigating event risk As part of prudent risk management strategy, the bank, post COVID, opted for Product Q3 FY25 9M FY25 CGFMU cover in FY23 at a time when the microfinance credit costs were < 3%. This coverage was opted to mitig
Slide 24: Portfolio Performance
PORTFOLIO PERFORMANCE SSFB – PAR 30+ IF – PAR 30+ Retail Assets – PAR 30+ 5.5% 8.6% 2.0% 1.5% 2.9% 2.0% 4.0% 2.9% 5.1% 5.4% 3.6% 4.1% 3.7% 3.4% 4.6% 3.5% 1.9% 1.2% Dec-23 Sep-24 Dec-24 Dec-23 Sep-24 Dec-24 Dec-23 Sep-24 Dec-24 90+ PAR Figures may not add up due to rounding off Investor Presentation
Slide 25: Asset Quality: GNPA Movement & Provision
ASSET QUALITY: GNPA MOVEMENT & PROVISION All numbers in ₹ crores, unless otherwise indicated GNPA Q2 FY25 to Q3 FY25 Movement GNPA 9M FY25 Movement -14.3 -147.2 -21.2 454.9 270.2 528.9 528.9 273.0 242.4 Q2FY25 New RollBack/ Q3FY25 Opening New W-Off. RollBack/ Closing Recoveries Recoveries Provisions
Slide 26: Liability Portfolio
04 Liability Portfolio 25
Slide 27: Deposit Landscape
DEPOSIT LANDSCAPE Key Product Acquisition Customer Highlights Offerings Channels Profiling Deposits Traditional Deposit Smart Banking Outlets Aspiring Middle Class Products – CASA, TD Goal based saving products, Exclusive • Targeted business focus within radius of ₹ 9,708 Cr ~2kms offers, Easy-to-us
Slide 28: Deposit Update
DEPOSIT UPDATE Deposits Retail Deposit (Incl CASA) Average Ticket Size INR Cr 6,484 8,850 9,708 4% 82.5% 81.2% 80.2% % of Retail Deposit 1,828 30% <50 k 1,751 29% 1,581 1,893 50 K to 5 Lakhs Retail TD 1,133 1,199 5 Lakhs to 50 Lakhs CASA 5,987 5,518 50 Lakh & above 4,152 Bulk 37% Dec-23 Sep-24 Dec-2
Slide 29: Funding Mix & Liquidity
FUNDING MIX & LIQUIDITY Balance Sheet Mix Capital Adequacy Ratio % (CRAR) 27.8% 26.9% * 2.1% 24.9% 1.6% 14% 1.4% 2% 14% 25.7% 25.3% 23.5% 70% Dec-23 Sep-24 Dec-24 Deposits Shareholders Fund Other Liab Borrowings Tier 1 Tier 2 Total 28 Figures may not add up due to rounding off *Adjusted for CGFMU co
Slide 30: Prudent Risk Management Practices
PRUDENT RISK MANAGEMENT PRACTICES Two-level credit feeders – analytics and on-field Extensive use of analytics to create curated customer base 1 intelligence - resulting in sharper credit underwriting On-field credit underwriting complements the pre- 2 approved base Digital BREs resulting in STP for
Slide 31: Financial & Key Ratios Q3 & 9M FY25
05 Financial & Key Ratios Q3 & 9M FY25 30
Slide 32: Financials – Balance Sheet
FINANCIALS – BALANCE SHEET Particulars (INR Cr) Dec-24 Dec-23 Y-o-Y Sep-24 Q-o-Q Capital and Liabilities Capital 106.3 106.2 0.1% 106.2 0.0% Reserves and Surplus 1,854.0 1,636.5 13.3% 1,818.8 1.9% Deposits 9,707.6 6,484.1 49.7% 8,850.8 9.7% Borrowings 1,956.0 2,563.0 -23.7% 2,178.5 -10.2% Other Liab
Slide 33: Financials – P&L Account
FINANCIALS – P&L ACCOUNT Particulars (INR Cr) Q3 FY25 Q3 FY24 Y-o-Y Q2 FY25 Q-o-Q 9M FY25 9M FY24 Y-o-Y Interest Earned 487.8 410.7 18.8% 507.2 -3.8% 1483.2 1144.0 29.6% Interest Expended 219.6 165.0 33.1% 207.2 6.0% 621.7 452.6 37.4% Net Interest Income 268.3 245.7 9.2% 300.0 -10.6% 861.5 691.5 24.
Slide 34: Financials – Key Metrics
FINANCIALS – KEY METRICS Particulars (INR Cr) Unit Q3 FY25 Q3 FY24 Y-o-Y Q2 FY25 Q-o-Q 9M FY25 9M FY24 Y-o-Y Gross Advances ₹ Cr 9,563 7,600 25.8% 9,360 2.2% 9,563 7,600 25.8% Disbursement ₹ Cr 1,467 1,792 -18.1% 1,682 -12.8% 4,888 4,580 6.7% Deposits ₹ Cr 9,708 6484 49.7% 8,851 9.7% 9,708 6,484 49.
Slide 35: Way Forward
06 Way Forward 34
Slide 36: FY25 Guidance
FY25 GUIDANCE Management Commentary • Microfinance sector is witnessing turbulence over the last two quarters. The Advances Growth Deposit Growth CASA Ratio trends appear to have stabilized towards the end of the quarter, the impact of which 22% - 25% 40% - 45% 20% is expected to be visible towards
Slide 37: Way Forward
WAY FORWARD Focused Expansion and Market Penetration Leveraging the IF Distribution Network to provide holistic banking services with Embracing Digital Transformation focus on distribution of social schemes Deliver digital product offerings in sync with the Drive small-ticket LAP disbursements Bank’
Slide 38: CSR Initiatives
07 CSR Initiatives 37
Slide 39: Beyond Banking
BEYOND BANKING The CSR activities for the Bank are mostly undertaken by ‘Suryoday Foundation’. Currently 6 programs are under Responsibility towards environment implementation. A total of 29,674 beneficiaries have been covered in 9M FY25 across these programs Health Interventions Quality Education w
Slide 40: Glossary
GLOSSARY Terminology Definition Terminology Definition AUM Assets Under Management NNPA Net Non Performing Assets CASA Current Account Savings Account NPA Non Performing Assets CBS Core Banking System NTB New-To-Bank CGFMU Credit Guarantee Fund for Micro Units PAR Portfolio at Risk CTI Cost-To-Incom
Slide 41: Suryoday Small Finance Bank Ltd contact
Suryoday Small Finance Bank Ltd CIN: L65923MH2008PLC261472 For further information, please contact Suryoday Small Finance Bank Ltd Adfactors PR – Investor Relations Mr. Himadri Das Snighter Albuquerque / Aashvi Shah himadri.das@suryodaybank.com Snighter.a@adfactorspr.com / Website: https://www.suryo
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