Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Q1 FY21 Earnings Presentation
48 slides from Ujjivan Small Finance Bank's earnings presentation, July 2020
Slide 1: Q1 FY21 Presentation
Awarded ‘Best Microfinance Bank’ by AsiaMoney Q1 FY21 Presentation July 2020 Ranked 3rd in India’s Best Companies To Work For 2020
Slide 2: 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 th
Slide 3: Contents
Contents Performance Highlights Business Overview Financials Ujjivan – Building a Mass Market Bank 3
Slide 4: Q1FY21 – Key Highlights
Q1FY21 – Key Highlights Collection Efficiency for the months of June’20 / July’20* stands at 54% / 59%** NII at ₹ 458 Cr up by 30% Y-o-Y with NIM at 10.2% Pre-Provision Operating Profit at ₹ 215 Cr up by 33% Y-o-Y; Net Profit at ₹ 55 Cr Deposit base building: Total deposit at ₹ 11,057 Cr up 39% Y-o-
Slide 5: Performance Highlights
UJJIVAN Performance Highlights UJJIVAN SMALL FINANCE BANK 5 Build a Better Life
Slide 6: Key Highlights as on June’20
Key Highlights as on June’20 24 States/ UTs, 244 Districts 575 branches1, 475 ATMs2 Expanding Customer base 17,370 Employees vs 221 districts in Jun’19 vs 524 branches3; 387 ATMs in Jun’19 vs 15,626 in Jun’19 54.7 lakh customers vs. 48.2 lakh in Jun’19 42.9 lakh borrowers vs. 42.1 lakh in Jun’19 CRA
Slide 7: Q1FY21 - Key Highlights
Q1FY21 - Key Highlights Pre-provision Operating Profit Net Interest Income Net Interest Margin GNPA (PPoP)* ₹ Crore ₹ Crore 352 458 10.2% 215 1.0% Vs. 161 Vs. 10.5% 0.8% Q1-FY20 Q1-FY21 Q1-FY20 Q1-FY20 Q1-FY21 Jun’19 PAT ROA ROE NNPA ₹ Crore 94 55 1.2% 6.8% 0.2% Vs. Vs. Vs. Q1-FY20 Q1-FY21 2.7% 20.2
Slide 8: Concerted efforts towards business normalcy (1/2)
Concerted efforts towards business normalcy (1/2) Safety of employees • WFH continued at most places, employees provided with additional technology support, field operations with all necessary precautions; regular sanitization of premises and relevant advisory issued at regular interval by QRT* • CO
Slide 9: Concerted efforts towards business normalcy (2/2)
Concerted efforts towards business normalcy (2/2) Business - Liabilities • Deposits grew 39% Y-o-Y to ₹ 11,057 Cr • Digital SA/ TD showing healthy traction – acquired over 17,000 customers in Q1FY21 • Maintaining surplus liquidity as on end of Q1-FY21 - ₹ 1,860 Cr contributing to 10% of Balance Shee
Slide 10: Moratorium & Collection efficiency
Moratorium & Collection efficiency Moratorium • Moratorium 1 came in towards end March 20 with National lockdown; extended to almost all customers on opt-out basis • During April-May lockdown got continuously extended affecting field operations • Moratorium 2 coincided with Unlock 1.0 leading to pic
Slide 11: Moratorium Update
Moratorium Update Moratorium 1 Moratorium 2 ₹ crore Mar’20 May’20 Jun’20 Loan Book % Loan Book Loan Book % Loan Book Loan Book % Loan Book Total Verticals Loan Book under under Loan Book under under Loan Book under under Provisions Moratorium Moratorium Moratorium Moratorium Moratorium Moratorium Mi
Slide 12: 16% collection efficiency in May despite moratorium
16% collection efficiency in May despite moratorium ₹ Crore Mar’20 Apr’20 May’20 Collection Additional Collection Additional Collection Additional Verticals Due Collection Due Collection Due Collection % Collection % Collection % Collection MicroBanking 970.0 897.2 93% - 990.0 22.4 2% - 988.1 141.3
Slide 13: Collection Efficiency picking up well under Moratorium 2
Collection Efficiency picking up well under Moratorium 2 ₹ Crore Jun’20 Jul’20 (till 30th July) Additional Additional Verticals Due Collection Collection % Due Collection Collection % Collection Collection MicroBanking 1,048.9 551.4 53% 55.0 1,009.4 589.0 58% 51.0 MSE 25.2 11.5 46% 3.6 26.0 12.3 47%
Slide 14: Digital collection channels showing healthy trend
Digital collection channels showing healthy trend Channel-wise break-up of collections • Rolled-out Moratorium 2.0 on an “Opt-in” basis • Continued touch with regular and non-paying customers Q4-FY20 Q1-FY21* • Focus plan for moratorium availed customers 1% • Flexible & multiple modes of collections
Slide 15: Collection by region: MicroBanking & Rural
Collection by region Significantly better collection from rural areas Month (MB & RB) April 20 May 20 June 20 July 20 (up to 30th July) MicroBanking & Rural Metro 2% 13% 48% 54% Banking Urban 2% 15% 55% 61% Semi-Urban 1% 14% 53% 57% Rural 5% 15% 57% 64% Total 2% 14% 53% 58% Area April 20 May 20 June
Slide 16: Ground situation like local lock-downs/ natural calamities add to collection complexities
Ground situation like local lock-downs/ natural calamities add to collection complexities Tamil Nadu Maharashtra West Bengal Assam Gujarat Delhi Total MB Portfolio (₹ cr) 1,855 885 1,678 405 707 193 Collection Efficiency % - 49%/69% 50%/56% 27%/27% 41%/52% 39%/37% 62%/72% Jun/Jul* Customers affected
Slide 17: Very Strong Fundamentals
Very Strong Fundamentals Balance Sheet – Well-capitalized and high liquidity Focus on portfolio quality • Capital Adequacy Ratio at 29% with Tier-I being 28% • NNPA at 0.2%; PAR at 1.8% • LCR at 453% for Jun’20 • COVID-19 provision for the quarter is ₹ 129 Cr – • Surplus liquidity is ₹ 1,860 Cr cont
Slide 18: Portfolio Quality – GNPA, NNPA and PAR
Portfolio Quality – GNPA, NNPA and PAR GNPA and NNPA Portfolio At Risk (PAR>0 %) NNPA GNPA 0.9% 0.9% 1.0% 1.0% 0.8% 1.8% 2.1% 2.0% 1.6% 1.8% 0.3% 0.4% 0.2% 0.3% 0.2% Jun'19 Sep'19 Dec'19 Mar'20 Jun'20 Jun'19 Sep'19 Dec'19 Mar'20 Jun'20 PAR, Provision (₹ in Crore) & Provision Coverage Ratio NNPA (%)
Slide 19: Business Overview
UJJIVAN Business Overview UJJIVAN SMALL FINANCE BANK 19 Build a Better Life
Slide 20: Increasing digital footprints (1/2)
Increasing digital footprints (1/2) *Digital Transactions (%) UPI Transactions ^Active 100,802 148,737 219,546 312,165 377,162 Customers 56 ₹ Crore 607 524 429 271 314 Q1-FY20 Q2-FY20 Q3-FY20 Q4-FY20 Q1-FY21 Bill Payments No. of 35 50,001 66,535 84,280 57,026 124,287 33 Transactions 32 ₹ Crore 27 2.
Slide 21: Increasing digital footprints (2/2)
Increasing digital footprints (2/2) *Digital Transactions more than doubled to 56% in Q1-FY21 from 27% in Q1-FY20 Internet Banking Mobile Banking SMS/Missed Call Nos in ‘000 Nos in’000 Hits in ‘000 No. of Active Customers No. of Active Customers SMS Missed Call 59.4 473.9 531.8 375 48.4 313 312 312
Slide 22: Banking Outlets
Well Diversified Pan India Presence (Jun-20) Gross Advances (Jun-20) • 24 states and UTs (144 URCs) TN 16.1% • 575 Banking Outlets (BO) KA 14.9% • 244 districts WB 14.0% • 475 ATMs MH 9.3% 1 CH:1 GJ 7.8% 16 BR 6.2% 4 36 DL:8 HR 4.7% RJ 4.0% 26 18 UP 3.7% 31 37 1 AS 2.9% 8 PB 2.7% 44 14 83 11 OR 2.6%
Slide 23: Expanding liability customer base
Expanding liability customer base *Customer Base Growth Customer Base – Basis of Branch Classification Asset Only Asset & Liability Liability Only 54.4 54.7 50.6 52.5 48.2 7.3 8.8 10.9 11.8 7% 6.1 24% 24.7 29.2 37% 33.3 36.2 36.2 32%* 17.4 14.1 10.3 7.3 6.7 Metropolitan Semi-Urban Urban Rural Jun.-1
Slide 24: Gross Advances and Disbursement Trend
Gross Advances and Disbursement Trend Gross Advances (₹ in Crore) Total Disbursements (₹ in Crore) Off-balance 455 84 NIL NIL NIL sheet Portfolio Gross 13,617 14,153 14,366 2,959 Advances 12,864 11,783 Portfolio 474 Jun'-19 Sep-19 Dec-19 Mar-20 Jun-20 Q1-FY20 Q1-FY21 Microfinance Loan Disbursement (
Slide 25: Gross Advances Snapshot
Gross Advances Snapshot Gross Advances– Segment wise (₹ in Crore) Product % Gross Advances Growth Y-o-Y Growth Q-o-Q Group Loans Micro Individual Loans Agri & Allied Loans Group Loans 66.0% 9.8% 1.9% MSE Affordable Housing FIG Others Micro Individual Loans 10.3% 54.7% 2.4% 142 167 Agri & Allied loan
Slide 26: Disbursement & Average Ticket Size
Disbursement & Average Ticket Size Product wise Disbursement (₹ in Crore) Yield (%) – Segment wise Group Loans Micro Individual Loans Agri & Allied Loans MicroBanking MSE Affordable Housing Overall MSE Affordable Housing FIG 22% Others 21% 21% 20% 20% 19% 67 18% 16% 83 14% 16% 27 187 14% 14% 148 114
Slide 27: Liability profile: Retail franchise picking up
Liability profile: Retail franchise picking up Total liabilities profile (₹ in Crore) Deposits break-up (₹ in Crore) Refinance Deposits Others Certificate of Deposits Institutional TD Retail TD CASA 10,780 11,057 12,292 14,734 15,536 1,459 1,568 7,956 707 810 458 827 3,694 3,432 7,956 11,057 2616 10
Slide 28: Well-diversified Deposit Mix
Well-diversified Deposit Mix Region-wise deposit mix Branch classification wise deposit mix Segment wise deposit mix 5% Individuals 1% 15% 15% 4% East Metropolitan 7% Banks 30% West 42% Urban 45% Corporate 20% North Semi Urban Govt. 42% 39% South Rural 35% TASC^ Total Deposits (excluding CDs) as on
Slide 29: Adequately Capitalized
Adequately Capitalized (₹ in Crore) Jun’19 Sep’19 *Dec’19 Mar’20 Jun’20 Credit Risk Weighted Assets 9,434 10,026 10,442 10,775 11,032 Tier I Capital 1,733 1,821 2,873 3,018 3,072 Tier II Capital 59 68 84 87 93 Total Capital 1,793 1,889 2,958 3,105 3,164 CRAR 19.0% 18.8% 28.3% 28.8% 28.7% Tier I CRAR
Slide 30: Financial Overview
UJJIVAN Financial Overview UJJIVAN SMALL FINANCE BANK 30 Build a Better Life
Slide 31: Financial Overview
Financial Overview NII (₹ in Crore) & NIM Cost to Income Ratio1 & Operating Expenses/ Average Assets (%) Net Interest Income Net Interest Margin Operating Expenses/ 8.3% 7.8% 5.8% Average Assets 10.5% 11.2% 10.2% 64.4% 64.6% 466 458 55.9% 352 Q1-FY20 Q4-FY20 Q1-FY21 Q1-FY20 Q4-FY20 Q1-FY21 Pre-Provi
Slide 32: Income Statement
Income Statement Particulars (₹ in Crore) Q1-FY21 Q1-FY20 YoY Growth Q4-FY20 QoQ Growth Interest Earned 746 605 23% 737 1% Other Income 29 100 (71%) 72 (60%) Total Income 775 705 10% 810 (4%) Interest Expended 288 253 14% 271 6% Operating Expenses 272 291 (7%) 348 (22%) Provisions and Contingencies
Slide 33: Total Income - Breakup
Total Income - Breakup Particulars (₹ in Crore) Q1-FY21 Q4-FY20 Q1-FY20 Interest on loan 698 698 567 Int. on investments 49 39 36 Securitization Inc. - - 3 Total Interest Earned 746 738 605 Processing Fees 5 42 37 PSLC Income - (2) 42 Trading Income 11 0 3 Bad Debts Recovery 1 8 8 Insurance Income 2
Slide 34: Balance Sheet
Balance Sheet Particulars (₹ in Crore) Jun-20 Mar-20 Jun-19 CAPITAL AND LIABILITIES Capital 1,928 1,928 1,640 Employees Stock Options Outstanding 30 21 - Reserves and Surplus 1,293 1,238 274 Deposits 11,057 10,780 7,957 Borrowings 4,479 3,953 3,946 Other Liabilities and Provisions 621 491 478 TOTAL
Slide 35: Ujjivan – Building a Mass Market Bank
Ujjivan – Building a Mass Market Bank 35
Slide 36: Well placed to gain from evolving country demographics
Well placed to gain from evolving country demographics USFB Enterprise USFB 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 banks Upper Mid
Slide 37: Comprehensive suite of Banking Products & Services
Comprehensive suite of Banking Products & Services Micro and Small Affordable Housing Financial Institutions Micro-Banking Vehicle Loans Personal Loans Enterprise Loans Loans Group • Group Loans • Secured Enterprise Loan • Individual Loans and Business Loans • Two wheeler loan • Loan to salaried • T
Slide 38: Focus on growing stable and granular Liability base
Focus on growing stable and granular Liability base Dominate branch Advanced business catchment net banking Traders, Retailers and MSE Encourage user adoption for Salaried / Corporate Salary digital channels Digital + Branch led Payment solutions, transactions Fee Based Products, Youth CMS Life Even
Slide 39: Other Income – diversifying revenue streams
Other Income – diversifying revenue streams Third Party Products PSLC Income ₹ 2 crore in Q1-FY21 NIL* ● Focussed approach to maximise PSLC income by way to Current line of products – to be ramped-up over automated tagging and better timing medium-term ● Majority of portfolio is PSL compliant vs. re
Slide 40: Serving customers through multiple delivery channels
Serving customers through multiple delivery channels ● 475 ATMs including 52 Automated Cash Recycler ● Web-based, can be accessed from any system machines Personal & ● High volume bulk upload facility ● 321 ATM’s Re-enabled with biometrics; rest to be Business Internet ● Customizable client centric
Slide 41: Strong Independent Board
Strong Independent Board Name Education Experience Name Education Prior Experience Biswamohan MA from JNU, M.Sc in B.Sc from Bangalore University Mahapatra management from Arthur D. Previously served as an Vandana Viswanathan and MA in personnel Co-founder and partner at Cocoon Part-time Chairman Li
Slide 42: Experienced Management Team
Experienced Management Team Name & Designation Prior association Education Sanjay Kao Citibank, ABN AMRO Bank, Dunia Finance and ● B.Tech, BHU Head - Human Resources Lipton India Ltd ● PGDM, IIM Calcutta Carol Furtado ANZ Grindlays Bank, Bank Muscat and ● B.Sc, Bangalore University Head – Operations
Slide 43: Key Growth Strategies
Key Growth Strategies COMPREHENSIVE & RELEVANT PRODUCTS EXPAND & OPTIMIZE DISTRIBUTION NETWORK 04 ● Entire gamut of asset and liability products to attract new customers ● Use right combination of physical and digital channels and partnerships 01 and deepen existing customer relationships ● Expand r
Slide 44: Annexure
uyyivan Annexure UJJIVAN SMALL FINANCE BANK Build a Better Life
Slide 45: Shareholding Pattern
Shareholding Pattern Shareholding Pattern (Based on Holding) as on 30th June, 2020 Promoter* 0.23% 1.39% 3.31% 5.47% Resident Individuals/HUF 6.27% Foreign Investors Alternative Investment Funds 83.32% Mutual Funds Others *Promoter is Ujjivan Financial Services Ltd which is a Core Investment Company
Slide 46: Ujjivan: Inclusive Growth Philosophy
Ujjivan: Inclusive Growth Philosophy Financial literacy Community Development • Partnered with Parinaam Foundation for financial • Partnered with Parinaam Foundation under literacy programs like “Diksha”, “Chillar Bank”, “Chhote Kadam” promoting quality of life for “Paison ki ABCD” marginalized comm
Slide 47: Focused relief work
Focused relief work • Amphan Relief - Restoration support to regions affected due to Amphan flood is provided to 3600 families in West Bengal • Covid19 relief work 20,000+ Municipality - Supported Public and Frontline Warriors battling Covid- and Panchayat workers 19 crisis, we supported Doctors, Ho
Slide 48: Thank You!
uyyivan Thank You! UJJIVAN SMALL FINANCE BANK Build a Better Life
Ujjivan Small Finance Bank — Q1 FY21 Earnings Presentation on 6ix