Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Q1 FY22 Earnings Presentation
56 slides from Ujjivan Small Finance Bank's earnings presentation, August 2021
Slide 1: Q1 FY22 Presentation
Q1 FY22 PRESENTATION AUGUST 2021
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: Regulatory Update
REGULATORY UPDATE Update from RBI • RBI vide its letter dated July 09, 2021 has informed the “Association of Small Finance Banks of India” that it has decided to permit small finance banks and respective holding companies to apply for the amalgamation of holding company with small finance bank 3 (Th
Slide 4: Contents
CONTENTS Performance Highlights Business Overview Financials Ujjivan – Building a Mass Market Bank 4
Slide 5: Q1-FY22 – Key Highlights
Q1-FY22 – KEY HIGHLIGHTS Disbursements impacted due to COVID 2.0 – ₹ 1,311 Cr, up 177% Y-o-Y; down 69% Q-o-Q Collections improved to 93% in Jul’21 post dip in May’21/ Jun’21 (72%/78%); good traction in early delinquency buckets Healthy customer acquisition: 1.1 lakh new customers in Q1 | Retail depo
Slide 6: Performance Highlights
Performance Highlights 6
Slide 7: Key Highlights as on Jun'21
KEY HIGHLIGHTS AS ON JUN’21 24 States/ UTs, 248 575 branches1, 491 ATMs2 Expanding Customer base 16,102 Employees Districts vs 244 districts in Jun’20 vs 575 branches; 475 ATMs in Jun’20 58.2 lakh customers vs 17,370 in Jun’20 vs. 54.7 lakh in Jun’20 40.1 lakh borrowers vs. 43.5 lakh in Jun’20 CRAR
Slide 8: Q1FY22 – Key Highlights
Q1FY22 – KEY HIGHLIGHTS Pre-provision Operating Net Interest Income Net Interest Margin GNPA Profit (PPoP) ₹ Crore ₹ Crore 215 458 384 8.0% 163 9.8% Vs. Vs. Q1-FY21 Q1-FY22 10.2% Q1-FY21 Q1-FY22 1.0% Q1-FY21 Jun’20 PAT ROA ROE NNPA ₹ Crore 55 Q1-FY21 (233) (4.7%) (30.1%) 2.7% Vs. Vs. Vs. 1.2% 6.8% 0
Slide 9: Liabilities – Retail Branch Banking Driving Growth
LIABILITIES – RETAIL BRANCH BANKING DRIVING GROWTH Retail branch banking driving customer acquisition • Total deposits grew 24% Y-o-Y to ₹ 13,673 Cr Nos in ‘000 Retail branch banking Others • Retail deposits grew 32% Y-o-Y; contributing to 48% 315.8 of total deposits in Jun’21 vs 45% in Jun’20 • CAS
Slide 10: Assets Update (1/2) – MicroBanking
ASSETS UPDATE (1/2) • Collections: COVID 2.0 affect collections – Jul’21 witnessed significant improvement • 93% in Jul’21; 77% in Jun’21 vs. 94% in Mar’21 • South, Maharashtra and West Bengal witnessed higher impact on collections due to severe restrictions; significant improvement in Jul’21 with e
Slide 11: Assets Update (2/2) – Personal Finance
ASSETS UPDATE (2/2) • Collection efficiency (MSE Secured) – 87% in Jul’21; 82% in Jun’21 vs. 90% in Mar’21; expediting legal process to aid collection • Disbursements at ₹ 106 Cr vs ₹ 276 Cr in Q4-FY21; ₹ 12 Cr in Q1-FY21 • Business volume picked up in Jun’21 with disbursement at ₹ 43 Cr, after a di
Slide 12: Third Party Products: Focus on Retail Products
THIRD PARTY PRODUCTS: FOCUS ON RETAIL PRODUCTS Strong pick-up in retail premium …driving fee income ₹ Crore Credit Life Retail ₹ Crore Credit Life Retail 29.4 3.0 9.2 1.5 14.2 1.6 6.9 0.9 20.2 1.5 7.3 0.7 Q1-FY21 Q1-FY22 Q1-FY21 Q1-FY22 Insurance Product • Addition of 6 new PAR* products in Jun’21 w
Slide 13: New Products
NEW PRODUCTS Gold loan: IT integration in-progress; retail branch banking to cross-sell; scaling up to 25 branches in Q2 (from currently 5 branches); Banking Micro plan to expand to 100+ branches in FY22 ECLGS loans: Begun disbursement in Jul’21; ticket sizes are very small Credit Guarantee Trust fo
Slide 14: Increasing Digital Footprints (1/2)
INCREASING DIGITAL FOOTPRINTS (1/2) *Increasing Digital Transactions (%) UPI Transactions ^Active 377 459 558 680 771 Total transactions (in Lakhs) Digital transactions (%) Customers 310 (in lakhs) ₹ Crore 2,403 4.6x 2,109 92% 524 1,086 1,655 Y-o-Y 260 Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 82% Bil
Slide 15: Increasing Digital Footprints (2/2)
INCREASING DIGITAL FOOTPRINTS (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) 4.1 12.1 3.9 1.5x Y-o-Y 3.6 10.8 3.4 3.3 9.4 8.3 8.3 2.6 2.6 7.7
Slide 16: Digital Initiatives Aiding Process Improvement (1/2)
DIGITAL INITIATIVES AIDING PROCESS IMPROVEMENT (1/2) RPA processes deployed with rising transactions ● 16 processes across business verticals completely Processes Transactions (Lacs) automated of which 2 are completely unattended (RTGS, 304 NEFT Recon) 269 ● RPA handles 1 Cr transactions / month; be
Slide 17: Digital Initiatives Aiding Process Improvement (2/2)
DIGITAL INITIATIVES AIDING PROCESS IMPROVEMENT (2/2) ● Automated Customer Engagement (ACE) platform implemented for improved customer engagement and enriching Customer Life Time Value (CLTV) and is now integrated with Website, Mobile Banking, Internet Banking, Whatsapp, SMS & E-mail engines ● 50+ ev
Slide 18: API Banking: Customer Acquisition & Fast Tracking Integration
API BANKING: CUSTOMER ACQUSITION & FAST TRACKING INTEGRATION Contract, Subscribe Present a Onboarding to APIs, Business Go Live & Risk Develop & Case Assessment Test • API Banking Strategy and fintech outreach program in place SIMPLE PROCESS FOR IMPLEMENTING API BANKING PARTNERSHIPS THROUGH A SINGLE
Slide 19: Fintech Touchpoints Aiding Collections
FINTECH TOUCHPOINTS AIDING COLLECTIONS MicroBanking Digital & Fintech Collections % 50.4% • Better prepared to manage collections in Covid 2.0 due to digital & fintech collections network set up in Q1-FY21 40.5% 40.6% • Expansion of collection points through fintech (PayNearby, SETU) and payments ba
Slide 20: Collections: Picking Up Post Dip in May'21
COLLECTIONS: PICKING UP POST DIP IN MAY’21 Collection % (including additional collections) Collection % (against same month dues) Digital vs cash collections 104% 105% 103% 109% 101% 93% 93% 96% 96% Cash Digital 89% 83% 76% 76% 16% 13% 11% 16% 92% 68% 89% 94% 92% 92% 94% 89% 93% 29% 59% 84% 88% 78%
Slide 21: Collection Efficiency (1/2)
COLLECTION EFFICIENCY (1/2) ₹ Crore Feb’21 Mar’21 Apr’21 Collection Additional Collection Additional Collection Additional Verticals Due Collection Due Collection Due Collection % Collection % Collection % Collection MicroBanking 894.7 822.4 92% 85.9 940.6 885.0 94% 105.0 934.0 825.5 88% 53.0 MSE (S
Slide 22: Collection Efficiency (2/2)
COLLECTION EFFICIENCY (2/2) ₹ Crore May’21 Jun’21 Jul’21 Collection Additional Collection Additional Collection Additional Verticals Due Collection Due Collection Due Collection % Collection % Collection % Collection MicroBanking 955.9 679.4 71% 11.8 936.8 717.7 77% 33.2 841.6 782.0 93% 53.6 MSE (Se
Slide 23: MicroBanking – Major States with Low Collections
MICROBANKING – MAJOR STATES WITH LOW COLLECTIONS Region South West East Tamil Nadu Karnataka Kerala Maharashtra West Bengal Jun’21 MB Portfolio 1,537 1,271 214 711 1,393 (₹ cr) Highest COVID Severe COVID 2.0 and prolonged strict lockdowns in entire South India Local trains yet infected state R
Slide 24: Assam: Update on MicroBanking Portfolio
ASSAM: UPDATE ON MICROBANKING PORTFOLIO • Resolution announced by newly elected State Government • All clients with loans from <=3 lenders and Loan O/S below ₹ 1.25L eligible for relief under the scheme i. Regular clients with no dues will get max lower of loan outstanding or ₹ 25K as a prompt payme
Slide 25: Restructured Portfolio - MicroBanking
RESTRUCTURED PORTFOLIO - MICROBANKING Resolution 1.0 Collection efficiency was ~75% post restructuring; collections impacted Book restructured under Resolution 1.0: Collection trend as COVID 2.0 begun in April’21 82.5% Dropped to 33%/ 37% in May’21/ Jun’21; improved to 50% in Jul’21 74.6% 77.5%
Slide 26: Restructured Portfolio – Other Retail Assets
RESTRUCTURED PORTFOLIO – OTHER RETAIL ASSETS Resolution 1.0 • MSE: 79 accounts with portfolio of Rs. 13.4 Cr • Affordable Housing: 121 accounts with portfolio of Rs. 13.8 Cr • Restructuring was immediately followed by COVID 2.0. Thus, analysis of repayment will not show correct picture • Provision o
Slide 27: Book Coverage at 8.2%, PCR at 75%, NNPA at 2.7%
BOOK COVERAGE AT 8.2%, PCR AT 75%, NNPA AT 2.7% Total Provision (₹ in crore) & GNPA & NNPA NNPA Q1FY22 (segment wise) Provision Coverage Ratio Provision PCR% GNPA NNPA 9.8% 6.3% 82% 7.1% 71%* 4.8%* 2.9% 59%* 60% 75% 2.3% 1.0% 1.2%* 2.7% 2.1%* 2.9% 370 471 1,029 955 1,149^ 0.2% 0.3%* Jun'20 Sep'20 De
Slide 28: Business Overview
Business Overview 28
Slide 29: Well Diversified Pan India Presence
WELL DIVERSIFIED PAN INDIA PRESENCE • 24 states and UTs (144 URCs) Gross Advances (Jun’21) • 575 Banking Outlets (BO) TN 16.5% • 248 districts KA 14.4% • 491 ATMs WB 13.2% 1 CH:1 MH 9.7% 16 4 GJ 8.4% 36 DL:8 BR 5.9% HR 4.6% 26 18 31 UP 4.4% 37 1 RJ 4.1% 8 DL 3.7% 44 14 83 11 OR 2.6% 4 PB 2.2% 19 AS
Slide 30: Expanding Liability Customer Base
EXPANDING LIABILITY CUSTOMER BASE Customer Base Growth Customer Base – Basis of Branch Classification Asset Only Asset & Liability Liability Only 8% 24% 55.3 56.6 59.2 58.2 54.7 37% 11.8 16.3 19.1 19.6 14.0 31%* Metropolitan Semi-Urban Urban Rural *Semi-Urban branches largely cater to rural customer
Slide 31: Gross Advances and Disbursement Trend
GROSS ADVANCES AND DISBURSEMENT TREND Gross Advances (₹ in crore) Total Disbursements (₹ in crore) 15,140 14,366 13,890 14,037 13,638 1,311 474 Jun.-20 Sep-20 Dec-20 Mar-21 Jun-21 Q1-FY21 Q1-FY22 Microfinance Loan Disbursement (No. of Loans) Portfolio Breakup Unsecured Secured 5% 5% 10% 15% 21% 22%
Slide 32: 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 Group Loans 56% (17%) (12%) Others* *Non-MB% 22% 28% 32% Micro Individual Loans 11% 5% (8%) 14,366 1
Slide 33: 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^ 21% 18% 19% 17% 474 4,274 1,311 16% 16% 16% 14% 13% 12% 116 12% 13%
Slide 34: 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 15,536 16,383 15,814 13,673 13,136 11,057 407 386 458 138 329 257 2,699 2,773 1,568 11,057 3,997 4,1
Slide 35: Well-Diversified Deposit Mix
WELL-DIVERSIFIED DEPOSIT MIX Region-wise deposit mix Branch classification wise deposit mix Segment wise deposit mix 35
Slide 36: Healthy Capital Adequacy
HEALTHY CAPITAL ADEQUACY (₹ in Crore) Jun’20 Sep’20 Dec’20 Mar’21 Jun’21 Credit Risk Weighted Assets 11,032 10,543 10,342 11,420 10,393 Tier I Capital 3,072 3,168 2,681 2,863 2,546 Tier II Capital* 93 99 103 157 143 Total Capital 3,164 3,268 2,785 3,020 2,689 CRAR 28.7% 30.99% 26.93% 26.44% 25.88% T
Slide 37: Financial Overview
Financial Overview 37
Slide 38: Financial Overview
FINANCIAL OVERVIEW NII (₹ in crore) & NIM Cost to Income Ratio & Operating Expenses/ Average Assets (%) Net Interest Income Net Interest Margin Operating Exp/ 5.8% 5.9% 6.6% Avg Assets 10.2% 67.3% 7.9% 8.0% 64.6% 55.9% 458 368 384 Q1-FY21 Q4-FY21 Q1-FY22 Q1-FY21 Q4-FY21 Q1-FY22 Pre-Provision Operati
Slide 39: Income Statement
INCOME STATEMENT Particulars (₹ in crore) Q1-FY22 Q1-FY21 YoY Growth Q4-FY21 QoQ Growth Interest Earned 642 746 (14%) 618 4% Other Income 75 29 160% 117 (36%) Total Income 717 775 (8%) 735 (3%) Interest Expended 257 288 (11%) 250 3% Operating Expenses 296 272 9% 327 (9%) Provisions and Contingencies
Slide 40: Total Income - Breakup
TOTAL INCOME - BREAKUP Particulars (₹ in crore) Q1-FY22 Q4-FY21 Q1-FY21 Interest on loan 586 564 698 Int. on investments 56 53 49 Securitization Inc. - - - Total Interest Earned 642 618 746 Processing Fees 15 54 5 PSLC Income 27 29 0 Treasury Income 13 0 11 Bad Debts Recovery 1 3 1 Insurance Income
Slide 41: Balance Sheet
BALANCE SHEET Particulars (₹ in crore) Jun-21 Mar-21 Jun-20 CAPITAL AND LIABILITIES Capital 1,928 1,928 1,928 Employees Stock Options Outstanding 46 44 30 Reserves and Surplus 1,013 1,247 1,293 Deposits 13,673 13,136 11,057 Borrowings 2,141 3,247 4,479 Other Liabilities and Provisions 763 778 621 TO
Slide 42: Ujjivan – Building a Mass Market Bank
Ujjivan – Building a Mass Market Bank 42
Slide 43: 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 44: 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 Business Loan Loan • Group Loans • Construction and • Loan to salaried • Business EDGE Loan and • Indi
Slide 45: 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 46: Other Income – Diversifying Revenue Streams
OTHER INCOME – DIVERSIFYING REVENUE STREAMS Third Party Products PSLC Income ₹ 3 crore in Q1-FY22 ₹ 27 crore in Q1-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 47: 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 48: Strong Independent Board
STRONG INDEPENDENT BOARD Name Education Experience Name Education Prior Experience Bachelor’s degree in Career banker for nearly four decades with SBI as technology (electrical well as its associate banks. Handled varied engineering) from Prior associations with banks incl. Rajni Mishra M.Com (Gold
Slide 49: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Name & Designation Prior association Education ● B. Tech, Kurukshetra University Nitin Chugh HDFC Bank, Standard Chartered Bank, HCL Hewlett Packard, ● Professional Diploma in Marketing Management, All India Management MD & Chief Executive Officer Modi Xerox Association A
Slide 50: Key Growth Strategies
KEY GROWTH STRATEGIES COMPREHENSIVE & RELEVANT PRODUCTS EXPAND & OPTIMIZE DISTRIBUTION 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 pa
Slide 51: Annexure
Annexure 51
Slide 52: Awards & Accolades
AWARDS & ACCOLADES… Great Place To Work® IDEX Legal award 2021 - The Outlook Money Institute: Ranked 11th Litigation Department of Awards – Small Finance among ‘India’s Best the Year Bank of the year Companies to Work For (Editor’s Choice) 2021’ IBA – 16th Annual Banking Technology Business Today -
Slide 53: Shareholding Pattern
SHAREHOLDING PATTERN Shareholding Pattern (based on holding) as on 30th June, 2021 0.01% 1.71% 0.95% Promoter* 4.60% 9.41% Resident Individuals/HUF Foreign Investors Alternative Investment Funds 83.32% Mutual Funds Others *Promoter is Ujjivan Financial Services Ltd which is a Core Investment Company
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 32,618 public 636 Anganwadi and 134 Healthcare 12 districts 7 states/UT including customers Asha workers Workers • Covid relief activity: - Distributed 340 bed sets, 40 oxygen cylinders, 124 oximeters, 2650 masks, 100 PPE kits, 13 oxygen concentrators and many more - To
Slide 56: Thank You
THANK YOU For Investor Queries: Mr. Deepak Khetan +91 7045792752 deepak.khetan@ujjivan.com
Ujjivan Small Finance Bank — Q1 FY22 Earnings Presentation on 6ix