Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Q3 FY22 Earnings Presentation
56 slides from Ujjivan Small Finance Bank's earnings presentation, February 2022
Slide 1: Q3 FY22 Presentation
Q3 FY22 PRESENTATION FEBRUARY 2022
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
Slide 3: Contents
CONTENTS Performance Highlights Business Overview Financials Ujjivan – Building a Mass Market Bank 3
Slide 4: Performance Highlights
Performance Highlights 4
Slide 5: 100-Day Plan on Right Track
100-DAY PLAN ON RIGHT TRACK Significant 1 Re-building business volumes 2 improvement in asset quality 3 Leadership team strengthened • MD & CEO: Mr. Ittira Davis Highest ever disbursement Reduced Portfolio at Risk • Chief Information Officer: Mr. Ashwin Khorana ₹ Crore 4,809 30.8% • Chief Digital Of
Slide 6: Q3 FY22 Key Highlights
Q3 FY22 KEY HIGHLIGHTS Disbursements Highest ever quarterly disbursements at ₹ 4,809 Cr, up 120% Y-o-Y; up 54% Q-o-Q Collection efficiency at 97% in Dec’21 reaching pre-covid levels Collections Collection efficiency excluding GNPA is 99% Strengthening retail franchise : Retail deposits up 50% Y-o-Y;
Slide 7: Ujjivan – Touching Lives
UJJIVAN – TOUCHING LIVES On 7th Sep’21, launched an initiative to focus on vaccination drives for customers and their families; promoted mass vaccination through the branches under “SANJEEVANI KAVACH’ Total Beneficiaries Branches conducting Vaccinated vaccination camps 60,147 464 Weekly vaccination
Slide 8: Key Highlights
KEY HIGHLIGHTS Gross Advances Disbursements Total Deposits Retail Deposits CRAR Customer Base^ ₹ 16,463 cr ₹ 4,809 cr ₹ 8,324 cr (53%*) 19.1% 62.1 lakh ₹ 15,563 cr Up 50% yoy customers Up 21% yoy Up 120% yoy Up 34% yoy Dec’20: ₹ 13,638 cr Q3-FY21: ₹ 2,184 cr Dec’20: ₹ 5,563 cr/ Dec’20: 26.9% 37.6 la
Slide 9: Strengthening Retail Liability Franchise
STRENGTHENING RETAIL LIABILITY FRANCHISE Retail branch banking driving customer acquisition • Total deposits grew 34% Y-o-Y to ₹ 15,563 Cr • Retail deposits grew 50% Y-o-Y; contributing to 53% Nos in ‘000 Retail branch banking Others of total deposits in Dec’21 vs 48% in Dec’20 315.8 • CASA deposits
Slide 10: Assets Update (1/2)
ASSETS UPDATE (1/2) MicroBanking • Collections: • Healthy collections powered by on-ground efforts, technology and effective data analytics – 98% in Dec’21 vs. 95% in Sep’21 • Enhanced focus on collections from delinquent account to reduce PAR flow • Collections improving across geographies while As
Slide 11: Assets Update (2/2)
ASSETS UPDATE (2/2) MSE • Collection efficiency – 86% in Dec’21 vs. 86% in Sep’21; recoveries supported by legal is being expedited and will be key focus area for the next quarter as well • Disbursements at ₹ 340 Cr vs ₹ 329 Cr in Q2-FY22; ₹ 136 Cr in Q3-FY21 • Fintech disbursements at ₹ 121 Cr in Q
Slide 12: Successfully driving digital journey
Successfully driving digital journey 12
Slide 13: Leader in Adopting Technology (Pre-Bank)
LEADER IN ADOPTING TECHNOLOGY (PRE-BANK) First in the Industry - Door-step Loan Processing through Phygital Journey (Hand Held Devices to staff) Initial phase of Automated Credit Sourcing Collections digitisation Decisioning Document GLOW & ILOS Trucell BRE and IC4 Management (Group Loan & (Collecti
Slide 14: Digital Roadmap Set Since Inception of Bank
DIGITAL ROADMAP SET SINCE INCEPTION OF BANK Inception of Ujjivan Harnessing digital potential since inception SFB 2017 2018 2019 Operations begun with E-KYC and Aadhaar Building Strong Digital Fintech Tie-ups for all digital channels live Authentication Services Banking Foundation Loan EMI payment •
Slide 15: Post-Bank Digitization Era (2019)
POST-BANK DIGITIZATION ERA (2019) Ideas conceptualized to drive the digital journey ahead 2018 2019 2020 Launch of Digital Products & Services Conceptualization of New initiatives • Innovation Centre – Formation of • VVV (voice, video & vernacular) innovation center with focus on RPA Mobile Applicat
Slide 16: Post-Bank Digitization Era (2020-21)
POST-BANK DIGITIZATION ERA (2020-21) Planned ideas put into action 2019 2017 2020 2021 2022 Conceptualization of Launch of Digital Creating newinitiatives Products & ServicesNew Partnerships Fintech Tie-ups for Loan EMI payment • ARIA, chatbot introduced on Ujjivan • Introduction of Video-KYC SFB we
Slide 17: Continuing the Digital Journey Ahead
CONTINUING THE DIGITAL JOURNEY AHEAD Voice Video Vernacular (VVV) Other Initiatives Mobile Application • Smart Statement – A consolidated overview of An Industry first mobile banking 1 5 all the product holdings of a customer • Integration of Finacle and BR.NET to application enabled with Voice & re
Slide 18: Increasing Digital Transactions (1/2)
INCREASING DIGITAL TRANSACTIONS (1/2) Increasing Digital Transactions* UPI Transactions Nos in lakhs ^Active 558 680 771 883 1007 Cash Transactions Digital Transactions Customers (in ‘000) ₹ Crore 4,235 3,319 1,655 2,109 2,403 422 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 337 Bill Payments No. of 104
Slide 19: Increasing Digital Transactions (2/2)
INCREASING DIGITAL TRANSACTIONS (2/2) Digital penetration among customers continues to show a healthy increase POS Transactions No. of Transaction (in box) Value in ₹ Crore Registered Customers (in lakhs) Transacting Customers (in lakhs) 13.6 15.1 12.1 14.9 15.7 lakhs lakhs lakhs lakhs lakhs 14.5 5.
Slide 20: Collections and asset quality parameters
Collections and asset quality parameters 20
Slide 21: Healthy Collections Leading to Improved Asset Quality
HEALTHY COLLECTIONS LEADING TO IMPROVED ASSET QUALITY Collection % (including additional collections) Collection % (against same month dues) Digital vs cash collections 112% 112% 109% 107% 107% 107% Cash Digital 104% 105% 103% 105% 101% 96% 13% 11% 16% 18% 17% 83% 95% 95% 95% 97% 97% 94% 92% 92% 94%
Slide 22: MicroBanking Collections: Secular Improvement
MICROBANKING COLLECTIONS: SECULAR IMPROVEMENT Region South West East Tamil Nadu Karnataka Kerala Maharashtra West Bengal Dec’21 MB Portfolio 1,724 1,419 229 766 1,570 (₹ cr) ▪ Improved income levels led by reduced restrictions, Total off roll Total on roll 2,677 growth in economic activities, festiv
Slide 23: Collection Efficiency (1/2)
COLLECTION EFFICIENCY (1/2) ₹ Crore Aug’21 Sep’21 Oct’21 Collection Additional Collection Additional Collection Additional Verticals Due Collection Due Collection Due Collection % Collection % Collection % Collection MicroBanking 824.6 784.5 95% 60.5 829.4 792.0 95% 68.6 838.3 789.5 94% 69.1 MSE 25.
Slide 24: Collection Efficiency (2/2)
COLLECTION EFFICIENCY (2/2) ₹ Crore Nov’21 Dec’21 Jan’22 Collection Additional Collection Additional Collection Additional Verticals Due Collection Due Collection Due Collection % Collection % Collection % Collection MicroBanking 846.2 803.2 95% 79.7 854.3 836.4 98% 94.0 869.9 844.5 97% 94.9 MSE 25.
Slide 25: Restructured Book: Strong Collections, Adequate Provision Coverage
RESTRUCTURED BOOK: STRONG COLLECTIONS, ADEQUATE PROVISION COVERAGE ₹ crores RF 1.0 RF 2.0 Total MicroBanking 443 680 1,123 Affordable Housing 14 24 38 MSE 12 67 79 Loan Book 468 771 1,239 PAR 414 251 665 GNPA 392 72 464 Provisions 385 165 550 Dec’21 Collection efficiency % - - 80% 25
Slide 26: Focused Towards Improving Asset Quality
FOCUSED TOWARDS IMPROVING ASSET QUALITY Total Provision (₹ in crore) & GNPA & NNPA NNPA Q3FY22 (segment wise) Provision Coverage Ratio Provision PCR% GNPA NNPA 9.8% 11.8% 9.8% 5.4% 84%^ 7.1% 75% 75% 4.8%* 3.4% 59%* 60% 3.3% 0.8% 2.1%* 2.9% 2.7% 1.7% 1,029 955 1,149^ 1,506^ 1,549^ Dec'20 Mar'21 Jun'2
Slide 27: Business Overview
Business Overview 27
Slide 28: Well Diversified Pan India Presence
WELL DIVERSIFIED PAN INDIA PRESENCE • 24 states and UTs (144 URCs) Gross Advances (Dec’21) • 575 Banking Outlets (BO) TN 15.8% • 248 districts KA 14.3% • 491 ATMs WB 12.8% 1 CH:1 MH 9.5% 16 4 GJ 8.3% 36 DL:8 BR 6.2% UP 5.0% 26 18 31 HR 4.9% 37 1 DL 4.4% 8 RJ 4.2% 44 14 83 11 OR 2.5% 4 PB 2.2% 19 JH
Slide 29: Expanding Liability Customer Base
EXPANDING LIABILITY CUSTOMER BASE Customer Base Growth Customer Base – Basis of Branch Classification Asset Only Asset & Liability Liability Only 8% 25% 59.2 58.2 59.7 62.1 56.6 31% 19.1 24.5 16.3 19.6 22.5 36% Metro Urban Semi-urban Rural *Semi-Urban branches largely cater to rural customers 35.7 3
Slide 30: Gross Advances and Disbursement Trend
GROSS ADVANCES AND DISBURSEMENT TREND Gross Advances (₹ in crore) Total Disbursements (₹ in crore) 16,463 9,244 15,140 14,514 13,638 14,037 4,809 4,124 2,184 Dec.-20 Mar-21 Jun-21 Sep-21 Dec-21 Q3-FY21 Q3-FY22 9M-FY21 9M-FY22 Microfinance Loan Disbursement (No. of Loans) Portfolio Breakup Unsecured
Slide 31: Diversifying Asset Book
DIVERSIFYING ASSET BOOK Gross Advances – Segment wise (₹ in crore) % Gross Growth Growth Product Advances Y-o-Y Q-o-Q Group Loans Micro Individual Loans Agri & Allied Loans MSE Affordable Housing FIG Others* Group Loans 54.6% 7.6% 14.8% *Non-MB% 27% 34% 33% Micro Individual Loans 11.0% 25.0% 11.6% 1
Slide 32: 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 Others^ 2,184 3,122 4,809 4,124 9,244 20% 19% 19% 18% 426 16% 595 15% 17% 1
Slide 33: Liability: Healthy Traction in Retail Franchise
LIABILITY: HEALTHY TRACTION IN RETAIL FRANCHISE Total liabilities profile (₹ in crore) Deposits break-up (₹ in crore) Refinance Deposits Others Institutional TD Retail TD CASA Certificate of Deposits 14,983 15,767 17,499 11,617 14,090 15,563 374 250 517 205 806 4,117 160 3,166 2,055 11,617 4,292 4,4
Slide 34: Well-Diversified Deposit Mix
WELL-DIVERSIFIED DEPOSIT MIX Region-wise deposit mix Branch classification wise deposit mix Segment wise deposit mix 34
Slide 35: Financial Overview
Financial Overview 35
Slide 36: Financial Overview
FINANCIAL OVERVIEW NII (₹ in crore) & NIM Cost to Income Ratio & Operating Expenses/ Average Assets (%) Net Interest Income Net Interest Margin Operating Exp/ 6.9% 7.5% 7.9% 6.4% 6.8% Avg Assets 10.1% 9.7% 9.1% 8.1% 8.4% 84% 74% 74% 432 391 454 1,360 1,230 62% 58% Q3-FY21 Q2-FY22 Q3-FY22 9M-FY21 9M-
Slide 37: Income Statement
INCOME STATEMENT Particulars (₹ in crore) Q3-FY22 Q3-FY21 YoY Growth Q2-FY22 QoQ Growth 9M-FY22 9M-FY21 YoY Growth Interest Earned 708 688 3% 645 10% 1,995 2,188 (9%) Other Income 91 98 (7%) 47 94% 211 188 12% Total Income 799 786 2% 692 15% 2,205 2,377 (7%) Interest Expended 254 256 (1%) 254 0% 765
Slide 38: Total Income - Breakup
TOTAL INCOME - BREAKUP Particulars (₹ in crore) Q3-FY22 Q2-FY22 Q3-FY21 9M-FY22 9M-FY21 Interest on loan 648 583 638 1,817 2,036 Int. on investments 60 62 51 178 152 Securitization Inc. 0 0 0 0 0 Total Interest Earned 708 645 688 1,995 2,188 Processing Fees 60 38 28 113 52 PSLC Income 0 (25) 5 2 29
Slide 39: Balance Sheet
BALANCE SHEET Particulars (₹ in crore) Dec-21 Sep-21 Dec-20 CAPITAL AND LIABILITIES Capital 1,928 1,928 1,928 Employees Stock Options Outstanding 40 39 41 Reserves and Surplus 706 739 1,110 Deposits 15,563 14,090 11,617 Borrowings 1,936 1,677 3,366 Other Liabilities and Provisions 1,026 1,034 1,354
Slide 40: Healthy Capital Adequacy
HEALTHY CAPITAL ADEQUACY (₹ in Crore) Dec’20 Mar’21 Jun’21 Sep’21 Dec’21 Credit Risk Weighted Assets 10,342 11,420 10,393 10,483 11,963 Tier I Capital 2,681 2,863 2,546 2,174 2,114 Tier II Capital* 103 157 143 152 170 Total Capital 2,785 3,020 2,689 2,326 2,284 CRAR 26.93% 26.44% 25.88% 22.19% 19.09
Slide 41: Ujjivan – Building a Mass Market Bank
Ujjivan – Building a Mass Market Bank 41
Slide 42: 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 banks Upper
Slide 43: Comprehensive Suite of Products & Services
COMPREHENSIVE SUITE OF PRODUCTS & SERVICES Micro and Small Enterprise Financial Institutions Micro-Banking Affordable Housing Loans Vehicle Loans Personal Loans Loans Group • Secured Enterprise and • Loan to salaried • Group Loans Loan Business Loan • Construction and customers • Individual Loans •
Slide 44: Building Stable and Granular Liability Base
BUILDING STABLE AND GRANULAR LIABILITY BASE Dominate branch Advanced business Traders, Retailers and MSE catchment net banking Encourage user adoption for Salaried / Corporate Salary digital channels Digital + Branch led Payment solutions, Youth transactions Fee Based Products, CMS Life Events Based
Slide 45: Other Income – Diversifying Revenue Streams
OTHER INCOME – DIVERSIFYING REVENUE STREAMS Third Party Products PSLC Income ₹ 16 crore in 9M-FY22 ₹ 2 crore in 9M-FY22 ● Focussed approach to maximise PSLC income by way to automated tagging and better Current line of products – to be ramped-up timing over medium-term ● Insurance: Life, General, He
Slide 46: Serving Customers Through Multiple Channels
SERVING CUSTOMERS THROUGH MULTIPLE CHANNELS ● 491 ATMs including 53 ACR* machines ● Web-based, can be accessed from any system ● Customer alerts for each incorrect PIN entry & Green PIN facility 24/7 for OIN change ● High volume bulk upload facility Personal & ● Customizable client centric approval
Slide 47: Strong Independent Board
STRONG INDEPENDENT BOARD Name Education Experience Name Education Prior Experience Career banker for nearly four decades with SBI as International banker with over 40 years of well as its associate banks. Handled varied banking experience having worked Rajni Mishra M.Com (Gold Medallist) assignments
Slide 48: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Name & Designation Prior association Education Ittira Davis Ujjivan Financial Services Limited, Europe Arab Bank, ● MBA, IIM Ahmedabad MD & Chief Executive Officer Arab Bank, Citi Bank, Bank of America ● B.Com, St. Joseph College of Commerce, Bangalore Carol Furtado Ujjiv
Slide 49: Key Growth Strategies
KEY GROWTH STRATEGIES COMPREHENSIVE & RELEVANT PRODUCTS STRONG DISTRIBUTION & COLLECTION NETWORK ● Entire gamut of asset and liability products to attract new ● Use right combination of physical and digital channels and 01 customers and deepen existing customer relationships ● Expand range of third
Slide 50: Annexures
Annexures 50
Slide 51: Organization Structure
ORGANIZATION STRUCTURE Board of Directors Audit /Risk Committee of the Board MD and CEO Ittira Davis Chief Chief Chief Credit Chief Chief Company Chief Business Chief Financial Head of Vigilance Compliance Head Treasury Head HR Operating Risk Officer Secretary Officer Officer Officer Internal Audit
Slide 52: Awards & Accolades
AWARDS & ACCOLADES • DSCI Excellence Awards 2021: Winner - Best Security Practices in NBFCs & Small Financial Institutions • Great Place To Work® Institute: Ranked 11th among ‘India’s Best Companies to Work For 2021 Certified by GPTW for 12th consecutive year • BFSI Excellence Awards 2021 – Best Omn
Slide 53: Shareholding Pattern
SHAREHOLDING PATTERN Shareholding Pattern (based on holding) as on 31st December, 2021 0.62% 0.01% 0.82% 0.54% Promoter* 14.69% Resident Individuals/HUF Foreign Investors Alternative Investment Funds 83.32% Mutual Funds Others *Promoter is Ujjivan Financial Services Ltd which is a Core Investment Co
Slide 54: Ujjivan: Inclusive Growth Philosophy
UJJIVAN: INCLUSIVE GROWTH PHILOSOPHY CSR Approach Community Development The Bank constantly strives to ensure strong Work with CSR partner organisations for corporate culture which emphasizes on integrating promoting quality of life for marginalized CSR values with business objectives. Communities c
Slide 55: Relief Activities
RELIEF ACTIVITIES Beneficiary Relief Activities • ₹ 44.3 lakhs spent in Q3-FY22 towards CSR totaling to spends of ₹ 2.92 Cr in FY22 • Covid Relief activities 22 states/UT; 4,39,395 public - Distributed 10 ICU beds to the Nadiad General Hospital, Gujarat 70+districts including customers - Released 15
Slide 56: Thank You
THANK YOU For Investor Queries: Mr. Deepak Khetan +91 7045792752 deepak.khetan@ujjivan.com
Ujjivan Small Finance Bank — Q3 FY22 Earnings Presentation on 6ix