Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Q2 FY22 Earnings Presentation
52 slides from Ujjivan Small Finance Bank's earnings presentation, November 2021
Slide 1: Q2 FY22 Presentation
Q2 FY22 PRESENTATION NOVEMBER 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 • 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 (Three) mont
Slide 4: Contents
CONTENTS Performance Highlights Business Overview Financials Ujjivan – Building a Mass Market Bank 4
Slide 5: Performance Highlights
Performance Highlights 5
Slide 6: Q2-FY22 – Key Highlights
Q2-FY22 – KEY HIGHLIGHTS Disbursements Disbursements improved to ₹ 3,122 Cr, up 114% Y-o-Y; up 138% Q-o-Q Consistent improvement in collection efficiency - 95% in Sep’21; Collections Significant reduction in PAR across buckets Healthy customer acquisition: 1.8 lakh new customers in Q2 | Retail depos
Slide 7: Ujjivan – Wide Reach, Touching Millions
UJJIVAN – WIDE REACH, TOUCHING MILLIONS Pan-India Presence Customers 24 States/ UTs, 248 Districts 59.7 lakh customers/ 37.2 lakh borrowers* vs 24 States/ UTs, 244 districts in Sep’20 vs. 55.3 lakh in Sep’20/ vs. 41.3 lakh in Sep’20 Banking Outlets & ATMs Employees 575 branches1, 491 ATMs2 16,251 Em
Slide 8: Key Highlights
KEY HIGHLIGHTS Gross Advances Disbursements Total Deposits Retail Deposits CRAR ₹ 14,514 cr ₹ 3,122 cr ₹ 14,090 cr ₹ 7,270 cr (52%*) 22.2% 5% yoy 114% yoy 31% yoy 38% yoy Sep’20: ₹ 13,890 cr Q2-FY21: ₹ 1,458 cr Sep’20: ₹ 10,743 cr Sep’20: ₹ 5,254 cr/ Sep’20: 31.0% 49% GNPA NNPA NII NIM PPoP 11.8% 3.
Slide 9: Liabilities – Retail Branch Banking Driving Growth
LIABILITIES – RETAIL BRANCH BANKING DRIVING GROWTH Retail branch banking driving customer acquisition • Total deposits grew 31% Y-o-Y to ₹ 14,090 Cr Nos in ‘000 Retail branch banking Others • Retail deposits grew 38% Y-o-Y; contributing to 52% 315.8 of total deposits in Sep’21 vs 49% in Sep’20 • CAS
Slide 10: Assets Update (1/2)
ASSETS UPDATE (1/2) MicroBanking • Collections: • Improved cash flows aiding collection - 95% in Sep’21; 95% in Aug’21 vs. 77% in Jun’21 • Geographies across have shown significant improvement in collections while Maharashtra, Kerala and Assam continues to lag • Significant traction seen in reducing
Slide 11: Assets Update (2/2)
ASSETS UPDATE (2/2) MSE • Collection efficiency (MSE Secured) – 88% in Sep’21; 86% in Aug’21 vs. 82% in Jun’21; expediting legal process to aid collection • Highest ever quarterly disbursements at ₹ 329 Cr vs ₹ 106 Cr in Q1-FY22; ₹ 92 Cr in Q2-FY21 • New case log-ins is at pre-Covid levels and conti
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 Credit Life Retail ₹ Crore Credit Life Retail ₹ Crore 73.2 5.2 17.0 3.2 3.0 38.0 10.3 56.2 1.9 27.7 2.2 1.2 Q2-FY21 Q2-FY22 Q2-FY21 Q2-FY22 Product – Focused on deeper customer penetration offering su
Slide 13: Increasing Digital Footprints (1/2)
INCREASING DIGITAL FOOTPRINTS (1/2) *Increasing Digital Transactions (%) UPI Transactions ^Active 459 558 680 771 883 Total transactions (in Lakhs) Digital transactions (%) Customers (in ‘000) ₹ Crore 360 3,319 3.1x 92% 1,655 2,109 2,403 Y-o-Y 1,086 310 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 82% 26
Slide 14: 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) 12.4 13.6 15.1 12.1 14.9 13.3 4.7 lakhs lakhs lakhs lakhs lakhs
Slide 15: Digital Initiatives Aiding Process Improvement
DIGITAL INITIATIVES AIDING PROCESS IMPROVEMENT ● 20 processes across RPA processes deployed with business verticals rising transactions completely automated of Processes Transactions (lacs) Automated Customer which 2 are completely 420 Engagement (ACE) platform unattended (RTGS, NEFT 304 for improve
Slide 16: API Banking: Customer Acquisition & Fast Tracking Integration
API BANKING: CUSTOMER ACQUSITION & FAST TRACKING INTEGRATION Present a Contract, Subscribe • API Banking Strategy and fintech outreach program in Onboarding to APIs, Business & Risk Develop & Go Live place Case Assessment Test • Documentation of entire API stack displayed and SIMPLE PROCESS FOR IMPL
Slide 17: Fintech Touchpoints Aiding Collections
FINTECH TOUCHPOINTS AIDING COLLECTIONS MicroBanking Digital & Fintech Collections % • Digital collections helping in reducing the impact of restrictions on ground mobility • Expanded customer reach via strategic tie-ups with Fintech and Payment Bank 55.5% 50.4% • MicroBanking digital collections gre
Slide 18: Collections: Picked Up Post Dip in May'21
COLLECTIONS: PICKED UP POST DIP IN MAY’21 Collection % (including additional collections) Collection % (against same month dues) Digital vs cash collections 109% 107% 107% Cash Digital 104% 105% 103% 105% 101% 96% 96% 13% 11% 16% 18% 93% 29% 89% 94% 94% 83% 93% 95% 95% 94% 92% 92% 88% 89% 89% 76% 87
Slide 19: Collection Efficiency (1/2)
COLLECTION EFFICIENCY (1/2) ₹ 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 20: Collection Efficiency (2/2)
COLLECTION EFFICIENCY (2/2) ₹ 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 (Se
Slide 21: MicroBanking – Collections Improving
MICROBANKING – COLLECTIONS IMPROVING Region South West East Tamil Nadu Karnataka Kerala Maharashtra West Bengal Sep’21 MB Portfolio* 1,495 1,233 200 712 1,411 (₹ cr) ▪ Severely hit during May-Jun’21 due to COVID 2.0 and prolonged strict ▪ Economy has not ▪ Local trains not lockdowns in entire South
Slide 22: Restructuring Update
RESTRUCTURING UPDATE (₹ crores) Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 During As on 31st During As on 31st During the As on 30th During the As on 30th the Dec’20 the period Mar’21 period Jun’21 period Sep’21 period MicroBanking 852 852 - 741 39 710 905 1,365 Affordable Housing - - 14 14 21 24 2 36 MSE - -
Slide 23: Book Coverage at 10%, PCR at 75%, NNPA at 3%
BOOK COVERAGE AT 10%, PCR AT 75%, NNPA AT 3% Total Provision (₹ in crore) & GNPA & NNPA NNPA Q2FY22 (segment wise) Provision Coverage Ratio Provision PCR% GNPA NNPA 9.8% 11.8% 5.7% 7.1% 71%* 75% 75% 4.8%* 3.7% 3.1% 59%* 60% 1.2%* 3.3% 2.1%* 2.9% 2.7% 471 1,029 955 1,149^ 1,506^ 0.3%* Sep'20 Dec'20 M
Slide 24: Business Overview
Business Overview 24
Slide 25: Well Diversified Pan India Presence
WELL DIVERSIFIED PAN INDIA PRESENCE • 24 states and UTs (144 URCs) Gross Advances (Sep’21) • 575 Banking Outlets (BO) TN 16.0% • 248 districts KA 14.0% • 491 ATMs WB 13.1% 1 CH:1 MH 9.9% 16 4 GJ 8.5% 36 DL:8 BR 6.0% HR 4.7% 26 18 31 UP 4.7% 37 1 RJ 4.2% 8 DL 4.0% 44 14 83 11 OR 2.5% 4 PB 2.3% 19 JH
Slide 26: 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% 56.6 59.2 58.2 59.7 55.3 31% 16.3 19.1 19.6 22.5 14.0 36% Metro Urban Semi-urban Rural *Semi-Urban branches largely cater to rural customers 35.8 3
Slide 27: Gross Advances and Disbursement Trend
GROSS ADVANCES AND DISBURSEMENT TREND Gross Advances (₹ in crore) Total Disbursements (₹ in crore) 15,140 14,037 14,514 13,890 13,638 4,433 3,122 1,932 1,458 Sep.-20 Dec-20 Mar-21 Jun-21 Sep-21 Q2-FY21 Q2-FY22 H1-FY21 H1-FY22 Microfinance Loan Disbursement (No. of Loans) Portfolio Breakup Unsecured
Slide 28: 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 54% (12%) 0% Others* *Non-MB% 24% 32% 34% Micro Individual Loans 11% 12% 4% 13,890 14,03
Slide 29: 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^ 3,122 4,433 20% 1,458 1,311 1,932 18% 18% 17% 246 16% 16% 345 1
Slide 30: 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 14,692 15,814 15,767 10,743 13,673 14,090 386 205 560 329 517 3,166 237 2,773 1,769 4,134 4,292 10,7
Slide 31: Well-Diversified Deposit Mix
WELL-DIVERSIFIED DEPOSIT MIX Region-wise deposit mix Branch classification wise deposit mix Segment wise deposit mix 31
Slide 32: Healthy Capital Adequacy
HEALTHY CAPITAL ADEQUACY (₹ in Crore) Sep’20 Dec’20 Mar’21 Jun’21 Sep’21 Credit Risk Weighted Assets 10,543 10,342 11,420 10,393 10,483 Tier I Capital 3,168 2,681 2,863 2,546 2,174 Tier II Capital* 99 103 157 143 152 Total Capital 3,268 2,785 3,020 2,689 2,326 CRAR 30.99% 26.93% 26.44% 25.88% 22.19%
Slide 33: Financial Overview
Financial Overview 33
Slide 34: Financial Overview
FINANCIAL OVERVIEW NII (₹ in crore) & NIM Cost to Income Ratio & Operating Expenses/ Average Assets (%) Net Interest Income Net Interest Margin Operating Exp/ 6.3% 5.9% 7.5% 6.2% 6.7% Avg Assets 10.2% 10.3% 8.0% 8.1% 8.0% 84% 74% 65% 470 384 391 928 776 57% 56% Q2-FY21 Q1-FY22 Q2-FY22 H1-FY21 H1-FY2
Slide 35: Income Statement
INCOME STATEMENT Particulars (₹ in crore) Q2-FY22 Q2-FY21 YoY Growth Q1-FY22 QoQ Growth H1-FY22 H1-FY21 YoY Growth Interest Earned 645 754 (14)% 642 0% 1,287 1,500 (14)% Other Income 47 62 (25)% 73 (36)% 120 90 32% Total Income 692 816 (15)% 715 (3)% 1,407 1,590 (12)% Interest Expended 254 283 (11)%
Slide 36: Total Income - Breakup
TOTAL INCOME - BREAKUP Particulars (₹ in crore) Q2-FY22 Q1-FY22 Q2-FY21 H1-FY22 H1-FY21 Interest on loan 583 586 701 1,169 1,398 Int. on investments 62 56 53 118 102 Securitization Inc. 0 0 0 0 0 Total Interest Earned 645 642 754 1,287 1,500 Processing Fees 38 15 19 53 24 PSLC Income (25) 27 24 2 24
Slide 37: Balance Sheet
BALANCE SHEET Particulars (₹ in crore) Sep-21 Jun-21 Sep-20 CAPITAL AND LIABILITIES Capital 1,928 1,928 1,928 Employees Stock Options Outstanding 39 46 37 Reserves and Surplus 739 1,013 1,389 Deposits 14,090 13,673 10,743 Borrowings 1,677 2,141 3,949 Other Liabilities and Provisions 1,034 763 748 TO
Slide 38: Ujjivan – Building a Mass Market Bank
Ujjivan – Building a Mass Market Bank 38
Slide 39: 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 40: 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 • Term
Slide 41: 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 42: Other Income – Diversifying Revenue Streams
OTHER INCOME – DIVERSIFYING REVENUE STREAMS Third Party Products PSLC Income ₹ 8 crore in H1-FY22 ₹ 2 crore in H1-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, Hea
Slide 43: 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 44: Strong Independent Board
STRONG INDEPENDENT BOARD Name Education Experience Name Education Prior Experience Banavar Retired as Chairman and Managing Career banker for nearly four decades with SBI as Anantharamaiah Director of Andhra Bank after serving well as its associate banks. Handled varied Prabhakar various Banks for a
Slide 45: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Name & Designation Prior association Education Martin Pampilly Ujjivan Financial Services limited, ANZ Grindlays Bank, Officer on Special Duty ● B.Sc. Computer Science, University of Bangalore Bank Muscat and Centurion Bank of Punjab Head of Operations & Service Quality C
Slide 46: 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 47: Annexures
Annexures 47
Slide 48: Awards & Accolades
AWARDS & ACCOLADES… Great Place To BFSI Excellence The Outlook Work® Institute: Awards 2021 – IDEX Legal award Money Awards – Ranked 11th among 2021 - Litigation Best Omnichannel Small Finance ‘India’s Best Department of the Campaign Bank of the year Companies to Work Management Year (Editor’s Choic
Slide 49: Shareholding Pattern
SHAREHOLDING PATTERN Shareholding Pattern (based on holding) as on 30th September, 2021 0.75% 0.01% 0.82% 1.01% Promoter* 14.10% Resident Individuals/HUF Foreign Investors Alternative Investment Funds 83.32% Mutual Funds Others *Promoter is Ujjivan Financial Services Ltd which is a Core Investment C
Slide 50: 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 51: Relief Activities
RELIEF ACTIVITIES Beneficiary Relief Activities • ₹ 1.69 Cr spent in Q2-FY22 towards CSR totaling to spends of ₹ 2.46 Cr in H1-FY22 • Covid Relief activities - Distributed 290+ medical equipment - oxygen concentrators, BP machine, syringe pump, thermal scanners, oxygen cylinders, pulse oximeters etc
Slide 52: Thank You
THANK YOU For Investor Queries: Mr. Deepak Khetan +91 7045792752 deepak.khetan@ujjivan.com
Ujjivan Small Finance Bank — Q2 FY22 Earnings Presentation on 6ix