Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Q2 FY23 Earnings Presentation
54 slides from Ujjivan Small Finance Bank's earnings presentation, Nov 7, 2022
Slide 1: Q2 FY23 Presentation
Q2 FY23 PRESENTATION UJJIVAN SMALL FINANCE BANK
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: Business on Fast Track
BUSINESS ON FAST TRACK Asset quality on 1 Sustained momentum in Business volumes 2 continuous improving trend 3 Highest-ever profitability Sustained growth in disbursement Reduced Portfolio at Risk Operating profits increasing… ₹ Crore ₹ Crore 663 NII 4,809 4,870 4,866 14.9% 544 600 4,326 454 PPoP 3
Slide 4: Key Highlights
KEY HIGHLIGHTS Disbursements Sustained Growth in Disbursement; ₹ 4,866 Cr up 56% Y-o-Y, up 12% Q-o-Q Collections Collection efficiency at ~100% in Sep’22; good traction on restructured/ NPA pool Liabilities Retail deposits up 71% Y-o-Y; CASA up 74% Y-o-Y |Total deposit at ₹ 20,396 Cr up 45% Y-o-Y As
Slide 5: Key Highlights (1/2)
KEY HIGHLIGHTS (1/2) Gross Advances Disbursements ₹ 20,938 cr ₹ 4,866 cr Up 44% yoy Up 56% yoy Sep’21: ₹14,514 cr Q2-FY22: ₹ 3,122 cr Total Deposits Retail Deposits ₹ 20,396 cr ₹ 12,416 cr Up 45% yoy Up 71% yoy Sep’21:₹ 14,090 cr Sep’21: ₹ 7,270 cr Employees Customer Base 16,620 69.4 lacs Up 2% yoy
Slide 6: Key Highlights (2/2)
KEY HIGHLIGHTS (2/2) CRAR PPOP PAT Sep’22: 26.7% ₹ 385 cr ₹ 294 cr Up 451 bps yoy Up 388% yoy Up yoy Sep’21: 22.2% Q2-FY22: ₹ 79 cr Q2-FY22: ₹ (274) cr GNPA NII NIM 4.4% ₹ 663 cr 9.8% Down 736 bps Up 69% yoy UP 173 bps yoy Sep’21: 11.8% Q2-FY22: ₹ 391 cr Q2-FY22: 8.1% NNPA RoA RoE 0.04% 4.6% 34.5% D
Slide 7: Liabilities: Driving Retail Deposit Base
Liabilities: Driving Retail Deposit Base 7
Slide 8: Strong Deposit Growth with Retail at Fore-front
STRONG DEPOSIT GROWTH WITH RETAIL AT FORE-FRONT Total liabilities profile (₹ in crore) Deposits break-up (₹ in crore) Refinance Deposits Others Total 22,130 Institutional TD Retail TD CASA Certificate of Deposits 20,392 1,038 888 20,396 15,767 18,449 397 344 5,496 517 14,090 5,155 20,396 205 18,449
Slide 9: Retail Deposit Franchise Focussed on Customer Acquisition
RETAIL DEPOSIT FRANCHISE FOCUSSED ON CUSTOMER ACUISITION Customer Acquisition Picking Up • Total deposits grew 45% Y-o-Y to ₹ 20,396 Cr Accounts Nos in ‘000 Retail branch banking Others • Retail deposits grew 71% Y-o-Y; contributing to 320.2 333.5 267.2 61% of total deposits in Sep’22 vs 52% in Sep’
Slide 10: Well-Diversified Deposit Mix
WELL-DIVERSIFIED DEPOSIT MIX 10
Slide 11: Assets: Well-diversified growth with new customer acquisition
Assets: Well-diversified growth with new customer acquisition 11
Slide 12: Gross Advances and Disbursement Trend
GROSS ADVANCES AND DISBURSEMENT TREND Disbursement sustaining Rs 4,000 cr+ (₹ in crore) Rapid growth in Gross Advances (₹ in crore) 4,809 4,870 4,866 19,409 20,938 4,326 16,463 18,162 3,122 14,514 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 New Customer acquisition ris
Slide 13: Diversifying Asset Book
DIVERSIFYING ASSET BOOK Gross Advances – Segment wise (₹ in crore) % Gross Growth Growth Product Advances Y-o-Y Q-o-Q MGL IL MSE AH FIG Others 25,000 25,000 Micro Group Loans 58% 52% 8% 20,938 19,409 566 Individual Loans 11% 44% 15% 20,000 939 20,000 521 872 3,079 2,905 MSE 9% 31% 5% 15,000 14,514 1
Slide 14: Disbursement & Average Ticket Size
DISBURSEMENT & AVERAGE TICKET SIZE Product wise Disbursement (₹ in crore) Yield (%) – Segment wise MGL IL MSE AH FIG Others^ MGL+IL Overall MSE AH 20.6% 20.9% 4,866 169 18.2% 18.0% 18.0% 4,326 210 124 320 16.2% 150 288 341 14.4% 13.9% 13.9% 254 705 3,122 527 13.0% 160 12.7% 12.8% 150 298 Q2-FY22 Q1-
Slide 15: Sustained improvement in asset quality
Sustained improvement in asset quality 15
Slide 16: Collections Sustaining Pre-Covid Levels
COLLECTIONS SUSTAINING PRE-COVID LEVELS Collection % (against month due) Collection Efficiency % (incl Additional collections) Cashless collections 116% 22% 115% 112% 112% 111% 111% 111% 111% 111% 20% 109% 107% 107% 107% 19% 18% 17% 16% 100% 99% 99% 99% 99% 100% 97% 97% 98% 98% 95% 95% 94% Sep-21 Oc
Slide 17: Collection Efficiency
COLLECTION EFFICIENCY ₹ Crore July’22 Aug’22 Sep’22 Collection Additional Collection Additional Collection Additional Verticals Due Collection Due Collection Due Collection % Collection % Collection % Collection MGL+IL 997.9 995.7 100% 74.1 1,016.4 1,014.1 100% 76.0 1,032.7 1,036.0 100% 109.5 MSE 26
Slide 18: Significant Reduction in Restructured Book
SIGNIFICANT REDUCTION IN RESTRUCTURED BOOK Restructured Book ₹ crores RF 1.0 RF 2.0 Total Micro Banking (GL + IL) 153 223 375 Affordable Housing 11 21 32 MSE 8 58 66 Loan Book 171 302 473 PAR 150 180 330 GNPA 146 152 298 Provisions 146 151 297 September Collection efficiency % - - 88% 63% provisio
Slide 19: Focused Towards Improving Asset Quality
FOCUSED TOWARDS IMPROVING ASSET QUALITY Portfolio at Risk (bucket wise) Significant reduction in stress book GNPA & NNPA 11.8% 18.9% SMA-0 GNPA+Restructured Book GNPA 25.2% 9.8% SMA-1 PAR+Restructured Book NNPA 18.4% 7.1% 3.8% SMA-2 5.9% 11.7% 4.4% 14.9% NPA 19.2% 9.2% 3.3% 14.5% 6.8% 1.7% 0.6% 0.1%
Slide 20: Successfully driving digital journey
Successfully driving digital journey 20
Slide 21: Digital End-to-End Through the Value Chain
DIGITAL END-TO-END THROUGH THE VALUE CHAIN • Smart Automated • Tie-ups & Partnerships : Messaging to guide client platform play to cross at all points of sell via Ujjivan onboarding journey Onboarding Cross Sell 1 2 3 4 Prospecting Servicing • Advanced Data • Seamless payments to people Modelling- L
Slide 22: Key Growth Strategies (1/3)
KEY GROWTH STRATEGIES (1/3) COMPREHENSIVE & STRONG DISTRIBUTION & RELEVANT PRODUCTS 01 04 COLLECTION NETWORK FOCUS ON DIGITAL CONTINUE FOCUS ON IMPROVING BANKING AND ANALYTICS 02 05 FINANCIAL & DIGITAL INCLUSION BUILD A STABLE & WIDEN REVENUE STREAMS; GRANULAR DEPOSIT BASE 03 06 FOCUS ON COST 22
Slide 23: Key Growth Strategies (2/3)
KEY GROWTH STRATEGIES (2/3) 01 COMPREHENSIVE 02 FOCUS ON DIGITAL 03 BUILD A STABLE & RELEVANT BANKING AND & GRANULAR PRODUCTS ANALYTICS DEPOSIT BASE ● Relationship Banking to increase ● User-friendly digital interface to ● Improve share of CASA, recurring and penetration / share of customer wallet e
Slide 24: Key Growth Strategies (3/3)
KEY GROWTH STRATEGIES (3/3) STRONG 05 CONTINUE FOCUS ON 04 06 WIDEN REVENUE DISTRIBUTION & IMPROVING STREAMS; FOCUS COLLECTION FINANCIAL & DIGITAL ON COST NETWORK INCLUSION ● Use right combination of physical and ● Focus on the un-served and ● Leverage banking infrastructure to digital channels and
Slide 25: Hello Ujjivan Mobile Banking Application
HELLO UJJIVAN (VOICE, VISUAL & VERNACULAR MOBILE BANKING APPLICATION) Hello Ujjivan went live on Google Playstore for Android users in Nov’22 How is it different from Regular Mobile Banking? 01 02 03 • Voice guidance for the users in 8 One of the best The users can This app will regional languages m
Slide 26: Increasing Digital Transactions (1/2)
INCREASING DIGITAL TRANSACTIONS (1/2) Increasing Digital Transactions* UPI Transactions 14 70 16 Nos in lakhs Nos in lakhs 60 13 14 Cash Transactions 11 10 12 Digital Transactions 50 9 10 Digital Ttransaction % 79% 40 80.00% 700 8 57 63 76% 30 614 50 6 20 42 600 73% 75.00% 33 4 72% 72% 545 10 2 484
Slide 27: Increasing Digital Transactions (2/2)
INCREASING DIGITAL TRANSACTIONS (2/2) Digital penetration among customers continues to show a healthy increase Ranking reflecting leadership* Registered Customer (ITD) (in Transacting Customers (in lakhs) lakhs) Cards 7.5 ATM 16.0 22.0 8.0 8.0 19.8 Infrastructure Transaction 17.9 6.5 @POS & E-com 14
Slide 28: Financial Overview
Financial Overview 28
Slide 29: Financial Overview
FINANCIAL OVERVIEW NII (₹ in crore) & NIM* Cost to Income Ratio & Operating Expenses/ Average Assets (%) 7.9% 12.0% 10.0% 9.6% 9.8% 100% 7.7% 8.0% 9.1% 700 10.0% 90% 7.5% 600 8.1% 80% 7.5% 500 8.0% 70% 7.1% 6.6% 60% 7.0% 400 6.0% 50% 600 663 82% 544 71% 300 40% 6.5% 454 62% 4.0% 200 391 30% 59% 52%
Slide 30: Financial Overview – H1FY23
FINANCIAL OVERVIEW – H1FY23 Pre-Provision Operating Profit (₹ in Cost to Income Ratio & Operating NII (₹ in crore) & NIM* Crore) Expenses/ Average Assets (%) PPoP Opex/ Av NIM 8.0% 9.7% 2.4% 5.4% 6.7% 6.7% 1,400.00 100% RoA Assets 800 90% 1,300.00 700 80% 1,200.00 600 70% 1,100.00 500 60% 1,000.00 4
Slide 31: Income Statement
INCOME STATEMENT Particulars (₹ in crore) Q2-FY23 Q2-FY22 YoY Growth Q1-FY23 QoQ Growth H1FY23 H1FY22 YoY Growth Interest Earned 993 645 54% 905 10% 1,899 1,287 48% Other Income 147 55 168% 125 18% 271 129 111% Total Income 1,140 700 63% 1,030 11% 2,170 1,415 53% Interest Expended 330 254 30% 306 8%
Slide 32: Total Income - Breakup
TOTAL INCOME - BREAKUP Particulars (₹ in crore) Q2-FY23 Q1-FY23 Q2-FY22 H1-FY23 H1-FY22 Interest on loan 895 818 583 1,714 1,169 Int. on investments 88 81 62 169 118 Securitization Income 10 6 0 15 - Total Interest Earned 993 905 645 1,899 1,287 Processing Fees 62 55 38 117 53 PSLC Income 15 9 (25)
Slide 33: Balance Sheet
BALANCE SHEET Particulars (₹ in crore) Sep-22 Jun-22 Sep-21 CAPITAL AND LIABILITIES Capital 2,155 1,928 1,928 Employees Stock Options Outstanding 46 44 39 Reserves and Surplus 1,569 1,035 739 Deposits 20,396 18,449 14,090 Borrowings 1,733 1,943 1,677 Other Liabilities and Provisions 886 836 1,033 TO
Slide 34: Healthy Capital Adequacy
HEALTHY CAPITAL ADEQUACY (₹ in Crore) Sep’21 Dec’21 Mar’22 Jun’22 Sept’22 Credit Risk Weighted Assets 10,483 11,963 12,879 12,956 13,726 Tier I Capital 2,174 2,114 2,279 2,423 3,208 Tier II Capital* 152 170 166 172 457 Total Capital 2,326 2,284 2,446 2,595 3,665 CRAR 22.19% 19.09% 18.99% 20.03% 26.7
Slide 35: Ujjivan – Building a Mass Market Bank
Ujjivan – Building a Mass Market Bank 35
Slide 36: Well Diversified Pan India Presence
WELL DIVERSIFIED PAN INDIA PRESENCE • 24 states and UTs (150 URCs) Gross Advances (Sep’22) • 590 Banking Outlets (BO) • 249 districts TN 15.5% • 502 ATMs# KA 14.1% 1 CH:2 WB 12.1% 16 MH 9.3% 4 GJ 8.2% 36 DL:9 BR 6.9% 26 18 UP 5.9% 37 37 1 HR 5.6% 8 RJ 4.1% 44 14 84 ND 3.7% 12 PB 2.7% 4 OR 2.5% 20 JH
Slide 37: Expanding Liability Customer Base
EXPANDING LIABILITY CUSTOMER BASE Customer Base Growth Customer Base – Basis of Branch Classification Asset Only Asset & Liability Liability Only 8% 69.4 64.8 66.0 62.0 37% 59.7 25% 30.1 26.9 27.4 22.5 24.5 30% Urban Semi-urban Metro Rural *Semi-Urban branches largely cater to rural customers 34.3 3
Slide 38: 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 39: Comprehensive Suite of Products & Services
COMPREHENSIVE SUITE OF PRODUCTS & SERVICES Micro and Small Enterprise Micro-Banking Affordable Housing Loans Financial Institutions Group Others Loans • Group Loans • Individual Loans • Secured Enterprise and Loan • Top up Loans - GL Business Loan • Term loan to NBFCs and • Agriculture & allied loan
Slide 40: 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 digital channels Digital + Branch led Payment solutions, Youth transactions Fee Based Products, CMS Life Events Based Banking Target Sol
Slide 41: Other Income – Diversifying Revenue Streams
OTHER INCOME – DIVERSIFYING REVENUE STREAMS Third Party Products PSLC Income ₹ 10 crore in Q2FY23 ₹ 15 crore in Q2FY23 ● 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 42: Serving Customers Through Multiple Channels
SERVING CUSTOMERS THROUGH MULTIPLE CHANNELS ● 502 ATMs including 57 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 & ● Empowering customers to block/unblock
Slide 43: Strong Independent Board (1/2)
STRONG INDEPENDENT BOARD (1/2) Name Education Experience International banker with 40+ years of banking experience having worked extensively in the Ittira Davis PGDM, Indian Institute of Management, Middle East and Europe. Was previously associated with Europe Arab Bank, Citibank in India and Managi
Slide 44: Strong Independent Board (2/2)
STRONG INDEPENDENT BOARD (2/2) Name Education Experience Rich work experience of 27 years in Banking industry with a focus on risk management. Rajesh Kumar Jogi Bachelor of Arts (Economics), Fellow Previously was associated with Natwest Group (erstwhile RBS Group) and was Chief Risk Officer, Indepen
Slide 45: Experienced Management Team (1/2)
EXPERIENCED MANAGEMENT TEAM (1/2) Name & Designation Prior association Education Ittira Davis • MBA, IIM Ahmedabad UFSL, Europe Arab Bank, Arab Bank, Citi Bank, Bank of America MD & Chief Executive Officer • B.Com, St. Joseph College of Commerce, Bangalore Carol Furtado • B.Sc, Bangalore University
Slide 46: Experienced Management Team (2/2)
EXPERIENCED MANAGEMENT TEAM (1/2) Name & Designation Prior association Education Vibhas Chandra UFSL • PGDBM (Rural Management), XIM, Bhubaneshwar Business Head of MicroBanking Sumit Thomas ING Vysya Bank (Now Kotak Mahindra Bank), HDFC Bank • Ex-PGDM, Symbiosis Institute of Management Studies Head
Slide 47: 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 48: Annexures
Annexures 48
Slide 49: Awards & Accolades
AWARDS & ACCOLADES Cyber Security Excellence Awards Cyber Security Excellence Awards 2022 2022 Best Cybersecurity Initiative- Banking Best Initiative for Threat Management- Bank Technology Excellence Awards 2022 CX Excellence Awards 2022: (Bengaluru Edition) Best Customer Engagement strategy Cyberse
Slide 50: Shareholding Pattern
SHAREHOLDING PATTERN Raised ₹ 475 Cr via fresh equity issuance; complying with Minimum Public Shareholding requirement Jun'22 Sep'22 0.8% 0.6% 0.9% 3.8% 2.6% 0.5% 14.4% 12.7% 5.1% 1.6% 73.7% 83.3% *Promoter is Ujjivan Financial Services Ltd which is a Core Investment Company and listed on NSE/ BSE 5
Slide 51: Ujjivan: Sustainable & Inclusive Growth Philosophy
UJJIVAN: SUSTAINABLE & INCLUSIVE GROWTH PHILOSOPHY Our CSR Approach We constantly strive to ensure strong corporate culture which emphasizes on integrating CSR values with business objectives. We work with communities in navigating the unprecedented challenges primarily focused on healthcare, disast
Slide 52: Highlights
HIGHLIGHTS Under skilling and livelihood generation programs total 350 candidates will be trained. As on Q2, a total of 193 candidates have completed the training and 50 women are presently undergoing training. As on Q2, a total of 99 candidates have been successfully placed through the training pro
Slide 53: Highlights
HIGHLIGHTS States and UTs Covered Total community Women undergoing Plastic Compactor People benefitted under members benefitted training installed health camp 12 6,21,000 50 1 500 Beneficiaries to be Total Trained Candidates Healthcare facilities Total Placed Candidates Schools Renovated trained ren
Slide 54: Thank You
THANK YOU For Investor Queries: Mr. Deepak Khetan +91 7045792752 deepak.khetan@ujjivan.com
Ujjivan Small Finance Bank — Q2 FY23 Earnings Presentation on 6ix