Utkarsh Small Finance Bank Limited · NSE:UTKARSHBNK
Utkarsh Small Finance Bank — Q3 FY25 Earnings Presentation
47 slides from Utkarsh Small Finance Bank's earnings presentation, Feb 14, 2025
Slide 1: Investor Presentation Q3 FY25
Slide 2: Key Highlights 9M, FY25
Key Highlights 9M, FY25 01 Gross loan portfolio growth 16% YoY, deposits growth 33% YoY Consistent increase in share of secured loan portfolio – 41% as on December 31, 2024; optimizing disbursement 02 yields across secured asset classes – yield for MSME & HL improved by 50-130 bps over same quarter
Slide 3: Key Highlights Q3 & 9M'FY25
Key Highlights Q3 & 9M’FY25 9M FY25 Q3 FY25 ₹19,057 cr. vs. ₹21 cr. vs. Loss ₹168 cr. vs. ₹20,172 cr. vs. ₹2,965 cr. vs. 6.2% vs. [3.0%] 1,028 vs. [880] [₹16,407 cr.] [₹338 cr.] PAT [₹116 cr.] [₹15,111 cr.] [₹2,808 cr.] Gross NPAs Banking Outlets Gross Loan Profit After Tax Profit After Tax Deposits
Slide 4: Journey and Franchise, Portfolio Build Up, Deposits Build Up
Journey and Franchise Portfolio Build Up Deposits Build Up Financial Performance Technology, ESG & CSR 4
Slide 5: Journey and Franchise
Journey and Franchise Committed journey of ~15 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
Slide 6: 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 Bank’s deposits crossed milestone of ₹20,000 crore; FY24 >1,000 Banking Outlets Launched digital on- Conversion of boarding microfinance bra
Slide 7: 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 53% Other Retail Loans 36% Joint Liability Business MSME Loans Housing Group Loans Loans (Retail Assets) Loans Asset 49% 4% produ
Slide 8: Diversified distribution network
Diversified distribution network Extensive physical network of Banking Outlets (Dec’24) Potential for Retail Assets within existing Branches (Dec’24) >50 Outlets Total MB GB MSME HL Wheels 1 <50 Outlets STATES Banking Outlets Outlets** Locations Locations Locations No Outlets Outlets 4 10 Bihar 250
Slide 9: Strategies
Strategies Continue diversifying asset portfolio Consistently increase share of secured loans in portfolio mix 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 product
Slide 10: Portfolio Build-up
Portfolio Build-up Loan portfolio grew 16% 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
Slide 11: Loan Portfolio Build-up
Loan Portfolio Build-up All Amounts in ₹ Crores Product CAGR% Loan Book (Mar-20) (FY20-9M FY25) Wholesale Housing Joint Liability Group Loans (JLG)* 10% Retail Lending Loans Micro-Banking Business Loans (MBBL) 140% Loans 5% 1% Others* Other Retail Loans** 74% (MSME) 2% 4% 19,057 JLG* 18,299 MBBL MBB
Slide 12: Micro-Banking Lending
Micro-Banking Lending 12
Slide 13: Micro-Banking Lending
Micro-Banking Lending All Amounts in ₹ Crores Portfolio Outstanding 10,054 11,313 11,387 10,889 10,066 JLG MBBL MBBL 678 715 764 Customer Base >28 Lakh >1 lakh penetration 559 812 8% level ~4%, significant Portfolio ₹9,255 Crore ₹801 Crore potential to 10,634 10,672 grow 9,495 10,125 9,255 Average T
Slide 14: Joint Liability Group (JLG) Lending
Joint Liability Group (JLG) Lending All Amounts in ₹ Crores Portfolio 9,495 10,634 10,672 10,125 9,255 Geographical Split of JLG Portfolio Disbursements Madhya Maharashtra 3,472 Pradesh Other States 5% Jharkhand 3% 6% 2,858 8% Presence across 13 States / UTs 2,260 Odisha 8% 1,540 1,296 Uttar Bihar P
Slide 15: Micro-Banking Business Loans
Micro-Banking Business Loans All Amounts in ₹ Crores Portfolio 553 671 706 754 801 Geographical Split of Portfolio Disbursements MADHYA JHARKHAND PRADESH MAHARASHTRA 9% YoY Growth 4% 3% 2% 208 ODISHA 5% UTTARAKHAND 175 1% 160 163 138 UTTAR PRADESH 35% BIHAR 50% Q3,FY24 Q4,FY24 Q1,FY25 Q2,FY25 Q3,FY2
Slide 16: Other Retail Lending
Other Retail Lending MSME (Retail Assets) Housing Loans CE & CV Loans 16
Slide 17: MSME (Retail Assets) Lending
MSME (Retail Assets) Lending All Amounts in ₹ Crores Portfolio Outstanding 3,453 3,128 2,745 2,557 2,183 Secured Unsecured Micro LAP / Business Loans Business Loan Overdraft (LAP) Dec'23 Mar'24 Jun'24 Sep'24 Dec'24 Disbursements (56% YoY Growth) o Significant presence in our core geography o Offerin
Slide 18: Housing Loans
Housing Loans All Amounts in ₹ Crores Portfolio Outstanding 855 785 Retail Housing Loans Affordable Housing 716 677 627 o Significant presence in our core geography o Currently offering HL product from 61 locations, Dec'23 Mar'24 Jun'24 Sep'24 Dec'24 significant headroom to expand within existing Di
Slide 19: CE & CV Loans
CE & CV Loans All Amounts in ₹ Crores Portfolio Outstanding 1,075 1,134 CV (New) CE (New) CV & CE (Used) 1,010 944 839 •85% of total •10% of total •5% of total portfolio portfolio portfolio o Lending primarily to small fleet operator segment Dec'23 Mar'24 Jun'24 Sep'24 Dec'24 o Currently offering CE
Slide 20: Geographical Split of Other Retail Lending
Geographical Split of Other Retail Lending All Amounts in ₹ Crores Portfolio 4,593 5,104 5,539 6,162 6,849 Geographical Split of Other Retail Lending Portfolio Disbursements Presence across 23 States / UTs 1,070 1,071 1,062 WEST JHARKHAND PUNJAB BENGAL 3% 3% 3% Other States 12% TELANGANA 722 5% MAHA
Slide 21: Wholesale Lending
Wholesale Lending All Amounts in ₹ Crores Portfolio Break up (Mar-20) Portfolio Break up (Dec-24) WSL Dec-24 Dec-23 Sep-24 Portfolio O/s ₹2,142 ₹1,760 ₹2,050 Business Started Business Share in Gross Loan Portfolio 11% 11% 11% Banking Group Banking in FY21 Business 0% Banking Group Rating Wise WSL FI
Slide 22: Deposits Build-up
Deposits Build-up Deposits grew by 33% YoY; Retail Term Deposits grew 41% YoY Expanded General Banking Franchise significantly Targeting top-100 deposits centres of the country Focus on building retail franchise 22
Slide 23: Deposits Trend & Composition
Deposits Trend & Composition All Amounts in ₹ Crores Deposits Trend CD ratio (excl. Deposits Composition refinance) at Deposits (33% YoY Growth) 86%** 20% 21% 19% 20% 20% CASA 99% 68% 66% 67% 68% 70% CASA + RTD 22,000 94% 93% 93% 92% 100% 20,000 90% 18,000 19,496 20,172 30% Institutional Term Deposi
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 16.4% Mar-23 Dec-24 Uttar Pradesh Maharashtra 16.1% 3 Years and above 3 Years and above 7% 29% NCT of Delhi 11.5% Haryana 8.8% Uttarakhand 5.7% Punjab
Slide 25: Asset Quality Movement
Asset Quality Movement All Amounts in ₹ Crores PCR% 93.8% 98.9% 91.0% 77.7% 61.1% Dec-23 Sep-24 Dec-24 Gross NPA % 3.0% 3.9% 6.2% 1,177 Net NPA % 0.2% 0.9% 2.5% 719 SMA 1 & 2 % 5.6% 464 476 458 418 4.4% 160 2.6% 29 43 1.9% 1.9% 4 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Gross NPAs Net NPAs Dec'23 Mar'24 J
Slide 26: Micro-Banking – Asset Quality
Micro-Banking – Asset Quality Collection Efficiency (excl. Pre-Payments) 96% 98% 96% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 92% 88% SMA 0 % 0.8% 0.5% 1.8% 4.3% 3.2% SMA 1 % 0.7% 0.5% 1.2% 2.6% 3.1% SMA 2 % 0.9% 1.1% 1.2% 2.4% 3.8% NPA % 3.8% 2.9% 3.1% 5.3% 9.7% Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 o
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 27
Slide 28: Profitability Metrics
Profitability Metrics Operating Profit & PAT – Quarterly Trend (₹ in crores) YTD Operating Profit & PAT (₹ in crores) 311 YoY Growth 256 282 276 773 715 8% 185 160 137 116 51 338 21 Q3' FY24 Q4' FY24 Q1' FY25 Q2' FY25 Q3' FY25 9M'FY24 9M'FY25 (168) Operating Profit (PPoP) PAT Operating Profit (PPoP)
Slide 29: Profitability Metrics (Contd.)
Profitability Metrics (Contd.) 2.4% 5.3% 56.0% / 12.3% 59.8% / 10.8% 9M FY24 9M FY25 9M FY24 9M FY25 8.8% 68.4% 57.3% 58.2% 54.7% 54.1% 4.3% 2.7% 2.7% 13.5% 1.7% 10.3% 10.8% 10.4% 11.3% Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Credit Cost Cost to Income Ratio Non-Interest income/Interest income Q3'FY
Slide 30: Cross-Cycle Return on Equity (RoE)
Cross-Cycle Return on Equity (RoE) Additionally, built floating provision cushion during this period; ₹190 Average: 13.0% crore as on Dec-24 22.9% 20.5% 19.5% 10.1% 4.2% 0.9% FY20 FY21 FY22 FY23 FY24 9M'FY25 30
Slide 31: Break-up of other income
Break-up of other income ₹ 83 crore ₹ 103 crore ₹105 crore 24% 24% 23% 19% 17% 24% 18% 32% 24% 40% 27% 29% Q3'FY24 Q2'FY25 Q3'FY25 Loan Processing Fee PSLC Income Recovery from written off accounts General Banking & Other Income 31
Slide 32: CRAR & Tier 1
CRAR & Tier 1 All Amounts in ₹ Crores Particulars Dec-24 Dec-23 Sep-24 Risk Weighted Assets 15,200 11,720 14,565 Total Capital 3,207 2,717 3,267 Tier-I Capital 2,727 2,519 2,892 Tier-II Capital 480 198 375 CRAR 21.10% 23.18% 22.43% Tier-I CRAR 17.94% 21.49% 19.85% Tier-II CRAR 3.16% 1.69% 2.58% 32
Slide 33: Profit & Loss: Quarter & Nine Months Ended December 31, 2024
Profit & Loss: For the quarter & nine months ended December 31 , 2024 All Amounts in ₹ Crores st Particulars 9M’FY25 9M’FY24 Y-o-Y Q3’FY25 Q3’FY24 Y-o-Y Q2’FY25 Q-o-Q INCOME Limited Review Limited Review Audited Total Interest Earned 2,885 2,283 26% 932 806 16% 987 (6)% Less : Interest Expense 1,274
Slide 34: Balance Sheet: As on December 31st, 2024
Balance Sheet: As on December 31st, 2024 All Amounts in ₹ Crores December 31st, December 31st, September 30th, Particulars Y-o-Y Q-o-Q 2024 2023 2024 CAPITAL & LIABILITIES Limited Review Audited Capital and Reserves 2,965 2,808 6% 3,125 (5)% Deposits 20,172 15,111 33% 19,496 3% Borrowings 1,767 1,76
Slide 35: Shareholding Pattern
Shareholding Pattern Bank Shareholders as on December 31st, 2024 Top 10 Shareholders as on December 31st, 2024 Utkarsh CoreInvest Limited Mirae Asset (Mutual Funds) Olympus ACF Pte. Ltd. Foreign Aavishkaar Bharat Fund Individuals & Companies, responsAbility Participations Mauritius Others, NRIs, 5.1
Slide 36: Diversified & Experienced Board
Diversified & Experienced Board Board Members of the Bank Parveen Kumar Gupta Part Time Non-Executive Chairman & Independent Director • Certified Associate of the Indian Institute of Bankers • Previous associations with SBI as Managing Director & BoB as senior advisor • Other key associations - Non-
Slide 37: Leadership Complementing Bank's Strengths
Leadership Complementing Bank’s Strengths Senior Management Team Govind Singh - Managing Director & Chief Executive Officer Pramod Kumar Dubey – Executive Director • Over 25 years of experience in the banking and financial services sector • Previously worked with ICICI Bank as the Head of and in par
Slide 38: 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
Slide 39: 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 1,028 branches S I C Tab enabled feet-on-street for acquisition Micro ATM for Cash Withdrawal in Remote A and collections locations L D Ex
Slide 40: 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
Slide 41: 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
Slide 42: 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 42
Slide 43: 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 43
Slide 44: 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 20,30,000+ 44,000+ 22,000
Slide 45: Utkarsh Welfare Foundation: CSR Initiatives (Contd.)
Utkarsh Welfare Foundation: CSR Initiatives (Contd.) Financial Awareness Health Camps E-Clinics 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 Program 45
Slide 46: 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
Slide 47: Thank You
THANK YOU. ©) Utkarsh Small Finance Bank
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