Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Investor Day (June 2024)
84 slides from Ujjivan Small Finance Bank's investor day presentation, Jun 21, 2024
Slide 1: Investor & Analyst Meet
INVESTOR & BUILDING A MASS ANALYST MEET MARKET BANK 21 JUNE, 2024
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 or entity. All information contained has been prepared
Slide 3: Agenda
AGENDA Continuing Outlook on Credit to uphold our commitments & Collection Liabilities: Stable, Digital Initiatives Sustainable, Scalable Asset Business Guidance Update INVESTOR & ANALYST MEET, 21ST JUNE, 2024
Slide 4: Building a Stronger Franchise
BUILDING A STRONGER FRANCHISE ₹1,281 Cr net profit: Strong & consistent profitability Yield: 19.3% NIM: 9.1% ~₹30,000 Cr Gross Loan Book; increasing book diversification RoA: 3.5% RoE: 26.1% Steady Rise in disbursements ₹23,300+ Cr in FY24 ₹31,000+ Cr deposits; ₹13,700+ Cr retail Net worth: TDs; ₹8,
Slide 5: Continuing to Uphold Our Commitments
Successful completion of reverse merger Strong asset quality with healthy provision coverage Broadened sources of Expanding geographical CONTINUING funding & focusing on presence – entry in new TO lower cost and stable state AP, 123 branches UPHOLD OUR deposit; Retail TD + opened in FY24 COMMITMENTS
Slide 6: Delivering – Consistently & Profitably
DELIVERING – CONSISTENTLY & PROFITABLY Steadily rising Business volumes… FY24 disbursements at ₹23,389 Cr Gross loan book grew over 2x in last 30 months 6,681 29,780 ₹ Cr ₹ Cr 6,001 27,743 5,749 5,675 26,574 5,284 25,326 4,841 24,085 21,895 20,938 Q3-FY23 Q4-FY23 Q1-FY24 Q2-FY24 Q3-FY24 Q4-FY24 Sept
Slide 7: Diversified Pan India Presence
DIVERSIFIED PAN INDIA PRESENCE Branch Network Banking Outlets 2 CH:2 • 26 states and UTs (191 URCs) States with branch network 18 6 • 752 Banking Outlets (BO) 39 DL:14 • 328 districts • 596 ATMs/ACRs 39 60 17 52 1 Other Physical Connects 14 21 8 • 5,100+ touch points 59 97 4 • Touchpoints added in F
Slide 8: FY'24 Year of Growth
FY’24 YEAR OF GROWTH Diversifying Improve our revenue Secured asset granularity in streams, by contribution our retail deposit introducing fee continues to rise base based Introduced and products Liabilities - Steadily rising strengthen digital enhanced focus business processes into newer volumes. e
Slide 9: Vehicle Finance – Market Ready
VEHICLE FINANCE – MARKET READY PROCESS SOURCING ASSET QUALITY • NDA collection eff b/w 98-99% Simplified Instant Dealership Referral documentation • Asset Quality at decisioning Driven Business process Model Model par with market MARKET POSITIONING Disbursement Adoption of through Digital Mandate •
Slide 10: Gold Loan - Ready to Scale Up
GOLD LOAN - READY TO SCALE UP PROCESS CUSTOMER GROWTH PLAN SEGMENTATION Market Penetration: Lead creation to disbursement process Broadly divided based on occupation and geographical FY 23-24 FY 24-25 • Implemented LOS location: 5 states (63 branches) 15 states (259 branches) • Auto trigger mechanis
Slide 11: Focus Areas for FY 2024–25
FOCUS AREAS FOR FY 2024 – 25 Improving asset book with balanced mix of Secured Vs Unsecured Enhance high yielding products contribution such micro-mortgages, Two wheeler finance Sustaining growth through productivity and efficiency gains by cultivating a culture of continuous improvements Strengthen
Slide 12: Liabilities
LIABILITIES STABLE, SUSTAINABLE, SCALABLE INVESTOR & ANALYST MEET, 21ST JUNE, 2024
Slide 13: Liability Mantra
LIABILITY MANTRA Focal Essence Focus Ahead ▪ Introduced Relationship Manager (RM) channel to well ▪ Strong, stable and sustainable retail book manage and provide customized & preferential services to our existing customers ▪ Focus on increasing CASA ▪ Reduction in Savings rates ▪ Emphasis on increas
Slide 14: Retail Focused Deposit Growth
RETAIL FOCUSED DEPOSIT GROWTH 2.2x growth in deposits over 30 months; CASA grew 163% Growing customer base Healthy Deposit Book Nos. in lacs ₹ in Cr. 18,292 25,538 31,462 64.8 76.9 86.0 121 8,335 217 37.4 34.4 6,744 26.9 756 13,538 4,993 10,118 38.9 45.0 5,993 35.2 8,458 9,468 6,550 2.7 3.6 3.6 FY22
Slide 15: Growing Customer Focused Segments
GROWING CUSTOMER FOCUSED SEGMENTS Senior Citizen Women NR Youth Minor • Need: Higher rates on • Need: Higher Interest • Need: Complete Digital deposits, low-cost banking rates, Exclusive offers, • Need: Remittance • Need: Disciplined efficiency, FCNR account, On-boarding & Seamless investment option
Slide 16: Building Stable and Granular Liability Base
BUILDING STABLE AND GRANULAR LIABILITY BASE Customer segment + Channels Tailor-made products Customer segment +Tailor-made products • Multi-channel approach • Aspiring middle class • Expanding branch-reach, relationship • Senior Citizens banking • NRIs & HNI • Using Phone Banking , video banking • E
Slide 17: Multiple Channels to Serve Customers
MULTIPLE CHANNELS TO SERVE CUSTOMERS Physical Infra Alternate Channels Payments & Tie-ups • Phone Banking (350+ • QR code/ Ujjivan Pay • 26 states and UTs services in 9 Indian • POS/Bank • 4 Asset Centers Languages) Guarantee/CMS • 328 districts • Video Banking • UPI/ Escrow • 752 Banking Outlets (B
Slide 18: Building Brand & Business
BUILDING BRAND & BUSINESS • Combined reach of over 90 crore across all channels and 137% growth Brand in website visits • Digital awareness campaign on World Savings Day Campaign • Micro Marketing activities in & around Branches • Onam Flower Carpet – World Book of Record Innovative • Ganeshotsav Ac
Slide 19: Way Forward
WAY FORWARD Business & Customer Growth Cost of Funds People & Profitability WAY FORWARD Retail vs. Bulk Product Per (Granular Customer Deposits) CASA Focused Approach INVESTOR & ANALYST MEET, 21ST JUNE, 2024
Slide 20: MSME
MSME LEAP TOWARDS A SUSTAINABLE, SCALABLE & PROFITABLE BUSINESS BANKING FRANCHISE INVESTOR & ANALYST MEET, 21ST JUNE, 2024
Slide 21: FY25: Our Scale-Up Strategy at Play
FY25 : OUR SCALE-UP STRATEGY AT PLAY Learnings leading to Strategic Revamp in FY23 • Presence in multiple segments impacted heavily during covid • Lack of Penetration in target markets increasing scale up time • Manual Legacy processes limiting our competitive advantage in a fast evolving space High
Slide 22: Dedicated Lines of Business Offering Full Stack Financial Services to MSMEs
DEDICATED LINES OF BUSINESS OFFERING FULL STACK FINANCIAL SERVICES TO MSMEs Loan Against Working Supply Chain Property (LAP) Capital (WC) Finance (SCF) Goal: to scale book growth and Goal: to be a one-stop for MSMEs Goal: to meet urgent funding build funnel of prospective WC financing needs, while b
Slide 23: Key Drivers in Our Execution
KEY DRIVERS IN OUR EXECUTION RELATIONSHIP- SPEED AT PROFITABILITY LED BUSINESS SCALE FOCUS BANKING • Underwriting Automation • Become the sole • Mix of Short and Long – through consent based data business banker Term Products with floating fetch, AI based Analysis • Catering to all MSME rates • Digi
Slide 24: LAP Vertical – Driving Sustainability
LAP VERTICAL – DRIVING SUSTAINABILITY Loans Against Property Business will build for us a robust portfolio of MSME customers in an organic manner, growing at a CAGR of 50%. These customers will be graduated towards working capital and business banking relationships through liabilities and fee genera
Slide 25: WC Vertical – Building Scalability
WC VERTICAL – BUILDING SCALABILITY The Working Capital vertical will help in onboarding Small and Medium Business and retain them through superior service and digital enablers. This will help in up-sell and cross-sell of additional products and value added services of the bank with the aim to become
Slide 26: SCF Vertical – Boosting Profitability
SCF VERTICAL – BOOSTING PROFITABILITY Supply Chain Finance has utmost strategic importance to MSME vertical, expected to comprise 10% of MSME book. With a mix of anchor-led sourcing through digital and captive capabilities, and lean unit economics by design, this vertical has a pivotal role to play
Slide 27: Technology That Helps Us Leap Towards Success
TECHNOLOGY THAT HELPS US LEAP TOWARDS SUCCESS Investments Done As on date, the following Systems have been developed, are live and running: Tapping into the internal and external API ecosystem to create Ramping up our • mPower – Mobile Origination App for Term hardware and cloud API unique user jour
Slide 28: Liability Cross-Sell and Up-Sell
LIABILITY CROSS-SELL AND UP-SELL For Business Customers – Fee Income Opportunity from Payments, Third Party Products and Ancillary Offerings For Working Capital Customer Relationships, CA to be made mandatory and Ujjivan to be the sole-banker up to ₹ 5 Cr borrower exposure – this is in line with RBI
Slide 29: Monitoring and EWS
MONITORING AND EWS • Identification of Early Warning Signals as per Bank’s induced ideology & RBI guidelines Customer & Business Monitoring RBI Prescribed • Detailed 90+ triggers from following sources Triggers • Core system • External Data bases • Internal MIS Financial EWS Monitoring • System driv
Slide 30: Affordable Housing
AFFORDABLE HOUSING GROWING STRONG INVESTOR & ANALYST MEET, 21ST JUNE, 2024
Slide 31: Among Fastest Growing Affordable Housing Players
AMONG FASTEST GROWING AFFORDABLE HOUSING PLAYERS Doubled avg. monthly disbursement within 2years Pan-India Presence ₹190 Cr (up from ₹90 Cr in FY22) 22 States, 200+ Clusters, 500+ Branches 7,000 48,949 50,000 CAGR – 5Yr YoY growth Gross loan book: 43% Gross loan book: 45% Disbursement: 31% Disbursem
Slide 32: Scale Up Plan FY'25 - IT / Digital Initiatives
SCALE UP PLAN FY’25 - IT / DIGITAL INITIATIVES Customer Journey Lead Management Loan Origination Loan Management Customer Service System System System • Complete Digital Loan Processing (LOS + mobile solution) • SMART Statement • Live for Affordable Housing loan & Micro Mortgages • WhatsApp Banking
Slide 33: Pivotal Initiatives to Foster Growth
PIVOTAL INITIATIVES TO FOSTER GROWTH Customised marketing activity in End to end digitisation T2 & T3 cities Anchoring existing/market data Profitability tracking at Unit level for actionable Insights – Data Analytics State level collateral policy Customer retention policy Deeper penetration into ex
Slide 34: Micro Mortgages – Scale Up
MICRO MORTGAGES – SCALE UP Upsell to existing Micro finance(GL & IL) High Yield business customers – Data analytics End use driven product suite Robust underwriting methodology Local market relevant policies 99%+ On Time Repayment Rate Focused sourcing - open market Fostering customer relationship –
Slide 35: Way Ahead: Gaining Leadership FY 2024–25
WAY AHEAD: GAINING LEADERSHIP FY 2024 – 25: • Be among the best in Affordable Housing • Strong Asset Quality: GNPA around 1% • Profitability: ROI focus, operational efficiency • Customer first approach, 72 Hours TAT • One-stop Ujjivan digital platform for servicing Targeting to grow the book by 40%
Slide 36: Micro Lending
MICRO LENDING SERVING VAST AND GROWING SEGMENT INVESTOR & ANALYST MEET, 21ST JUNE, 2024
Slide 37: Micro Lending
MICRO LENDING Total Portfolio(GL+IL) ₹ in Cr 5 MILLION+ 26250. Micro Finance Customers 20,806 21000. 19,774 19,151 18,313 17,362 Borrower Base 15% Y-o-Y 15750. 15,452 14,492 Secured Book 1% of 13,340 in Micro Finance total book 12,322 10500. Branch Network 19% Y-o-Y 5250. Group Individual Deposit Lo
Slide 38: Strength Lies in Diversification
STRENGTH LIES IN DIVERSIFICATION Presence Diversified Across State •In all operating states Ujjivan’s loan book concentration is below 15% •Geographical Diversification mitigates Political, HP 0.16% Punjab 3.1% UK Climatic & Societal Risks 0.59% Delhi HR 5.8% 1.75% Well Diversified in Product Offeri
Slide 39: Ujjivan Asset Quality, Collections: Among Industry Best
UJJIVAN ASSET QUALITY, COLLECTIONS: AMONG INDUSTRY BEST 90+, 18 MOB PAR 18 MOB PAR* State as per Ujjivan Ujjivan Industry* Book Size (>270Cr) Mar'24 Mar'24 1.03% Ujjivan 1.76% Tamil Nadu 1.12% 1.22% Karnataka 0.41% 0.47% 1.64% Industry West Bengal 0.60% 1.11% 2.80% 18 MOB 90+ PAR 18 MOB 30+ PAR Biha
Slide 40: Secured Product Offerings
SECURED PRODUCT OFFERINGS Individual Secured Live Stock Loan Two Wheeler Loan Referral Total Customers: Total Customers: Family of Micro 1137+ Purpose Target Cattle Purchasing 10K+ Banking Customers Number of Branches: Number of Branches: 186 465 Number of States: 8 Number of States: 22 Group Loan &
Slide 41: Customer Service Through Alternate Channels
CUSTOMER SERVICE THROUGH ALTERNATE CHANNELS Digital Repayments 29% FY 24 Customer Induced Digital Repayments. Grown 12% Y-o-Y One of the Best Among SFBs Multiple Modes to Choose Hello SI NACH BBPS Ujjivan INVESTOR & ANALYST MEET, 21ST JUNE, 2024
Slide 42: Customer Service Through Alternate Channels
CUSTOMER SERVICE THROUGH ALTERNATE CHANNELS Building a super App for aspiring Loan Acknowledgement ETB Group Loan Customers middle class, with additional - GL Customers can provide loan disbursement consent via the app 30% are using this feature features HOSPICASH Individual loan journey Benefits of
Slide 43: Growth Engines at Place for a Steady Ride
GROWTH ENGINES AT PLACE FOR A STEADY RIDE Strong leader Leader of today of tomorrow • Pioneers in IL business; already a large • Opportunity to cross-sell and upsell our large business with strong team market slowly customer base of more than 60+ lakh moving towards Individual Loans customers • Comp
Slide 44: Credit & Collection
CREDIT & COLLECTION MAINTAINING HEALTHY ASSET QUALITY INVESTOR & ANALYST MEET, 21ST JUNE, 2024
Slide 45: FY'24 Asset Quality: Continues to Be Healthy
FY’24 ASSET QUALITY: CONTINUES TO BE HEALTHY Credit cost SMA Portfolio GNPA & PAR ₹390 Cr NPA ₹141 Cr of write- below 1% 1.4% Consistence Collection off Recovery 9.6% 7.9% 7.1% 6.1% 5.9% 4.9% 4.4% 3.8% 3.8% 3.7% 3.6% 3.5% 3.4% 2.6% 2.5% 2.4% 2.2% 2.1% 2.1% 2.0% 1.7% 1.5% 1.6% 1.5% 1.5% 1.4% 1.2% PAR
Slide 46: Floating Provision Coverage
FLOATING PROVISION COVERAGE Standard+NPA Floating PCR Grouped (₹ in cr) under Total Only ₹120 other Provision cr used Moved to provisions# on under NPA Tier II Balance 800 100% 747 provision capital# Sheet 98% 715 701 100 98% 690 700 671 Standard 98% Asset 30 120 96% 120 96% Provision 600 120 120 12
Slide 47: Micro Banking Collection: A Comparison
MICRO BANKING COLLECTION: A COMPARISON Collection Efficiency trend % 99.9% 99.8% 99.8% 99.7% 99.8% 99.7% 99.7% 99.7% 99.6% 99.7% 99.6% 99.7% 99.8% 100.5% 99.7% 99.8% 99.5% 99.8% 99.3% 99.3% 99.3% 98.7% 98.9% 98.5% 98.6% 98.8% Mar'23 Apr'23 May'23 Jun'23 Jul'23 Aug'23 Sept'23 Oct'23 Nov'23 Dec'23 Jan
Slide 48: Micro Banking: Highlight & Key Initiatives
MICRO BANKING: HIGHLIGHT & KEY INITIATIVES FY-24 Highlights Key initiatives FY25 Prudent growth Realigning Credit Policies • Well Diversified & balanced growth in • Granular plan based on branch wise portfolio. asset quality • Cautious growth in select states. Strong Field Monitoring Focused Recover
Slide 49: Housing Portfolio
HOUSING PORTFOLIO Portfolio Mix as of Mar’24 Well balanced Book 61% of Book 60% of Book 56% of Book 73% of Book Post-Covid Home Formal Oct’21- Salaried Loan Mar’24 ₹3,571 Cr Customer Segment Asset Quality as of Mar’24 Ujjivan SFB: New Book Asset Ujjivan SFB: Overall Asset Quality Quality 34% NTC 66%
Slide 50: Housing 0-24 MOB Performance
HOUSING 0-24 MOB PERFORMANCE NDA pool resolutions steady & Improving 30+ PAR NPA 0.90% 0.90% 99.7% 99.4% 99.5% 99.6% 99.7% 0.80% 0.80% 0.70% 0.70% 0.50% 0.50% 0.40% 0.40% 0.40% 0.40% Mar'23 Jun'23 Sep'23 Dec'23 Mar'24 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Ujjivan SFB Vs Industry* For 30+ PAR (24
Slide 51: Housing Credit - Key Highlights & Way Forward
HOUSING CREDIT- KEY HIGHLIGHTS & WAY FORWARD FY-24 Highlights Key initiatives FY25 Growth Recoveries Focus to Continue • Robust growth in Borrower base post-covid • Continued focus on NPA & write off pool from 20,000 to 53,000 + live accounts recovery • Well diversified book with average ticket • Co
Slide 52: Focus on Micro Mortgages (Emerging Product)
FOCUS ON MICRO MORTGAGES (EMERGING PRODUCT) VIKAS LOAN (Micro Mortgages) Book Growth Capacity Building ₹ in Cr ➡40% of the Micro Mortgages credit officers have been 201 moved internally from Individual Loan credit background 4,000+ 128 Live Borrowers Ticket Size Comparison 25 4.9 Lakh Ujjivan SFB Ma
Slide 53: MSME Portfolio
MSME PORTFOLIO Old Book(Prior to Apr-22) New Book(Apr-22 Onwards) 0 1608 1479 Amount In ₹ Cr Amount In ₹ Cr 875 5 1228 687 1077 700 988 603 894 517 520 548 0 793 525 484 727 379 350 5 175 159 0 0 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Mar'24 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23
Slide 54: MSME: Highlights & Key Initiatives
MSME: HIGHLIGHTS & KEY INITIATIVES FY-24 Highlights Key initiatives FY25 Upgrade LOS Widening Product Suite • End to End digital workflow. • Working capital product to be scaled up. • Login through mobility. • LAP for formal segment ready for scale up. Digitized Credit Assessment Fintech Collaborati
Slide 55: FIG Portfolio: Key Highlights & Initiatives
FIG PORTFOLIO: KEY HIGHLIGHTS & INITIATIVES ‣Diversified to 9 sectors in last 3 FY with no ‣ FY 24 disbursed ₹1,538 Cr (67% growth) single sector contributing more than 30% ‣ Introduction of Bank Guarantee Product ‣Rigorous monitoring of financial covenants & portfolio on quarterly basis. ‣Recommenc
Slide 56: Vehicle Finance: Strategy View
VEHICLE FINANCE: STRATEGY VIEW • Disbursement growth by 130% • NDA collections for last 4 quarters in FY 24 steady between 98% And 99% • Introduce e3W loans and Fintech • Reduced Credit TAT to 16 mins tie-ups in FY 25 • LOS and Score card based • NPA resolutions have picked up approvals for quick an
Slide 57: Ujjivan 'ProCollect': Empowering Collections
UJJIVAN ‘PROCOLLECT’: EMPOWERING COLLECTIONS Phase I - System Receipt Trail Geo Payment Live in Aug’23 Allocation Management History Tagging Link Phase II - Way Forward Robotic Actions • Automate dunning letters for smooth Performance and Payout Module communication • KRA Based Performance evaluatio
Slide 58: Financial Institutions & Govt Banking
FINANCIAL INSTITUTIONS & GOVT BANKING WHOLESALE LIABILITIES & SECURED LENDING TO RETAIL FOCUSED NBFCs INVESTOR & ANALYST MEET, 21ST JUNE, 2024
Slide 59: FI & Govt. Liabilities - Key Contributor to Wholesale Liabilities
FI & GOVT. LIABILITIES - KEY CONTRIBUTOR TO WHOLESALE LIABILITIES Segments Offerings Alternate Sourcing • Banks – Coop, RRBs, SFBs, • Fixed Deposits, CDs, Term Money • Refinance, IBPC, Securitization, Term Payment, Private, PSB • Current Account, Collection Account, Loans • NBFC, Mutual Funds, Insur
Slide 60: FIGB Assets - Institutional Lending
FIGB ASSETS - INSTITUTIONAL LENDING Segments Offerings Alternate Sourcing • NBFCs/MFI/HFCs - Secured MSME Sector • Robust growth- 55% Year to Year - Housing Sector • Term Loans- 1-5 Years • High Quality Book with A rated and - Gold Loans above consisting of more than 90% • Working Capital Products-
Slide 61: Expansive and Stringent Underwriting Process
EXPANSIVE AND STRINGENT UNDERWRITING PROCESS… ▪ Understanding Management Philosophy & ▪ Understanding the Business model of the ▪ Strong domain knowledge being a NBFC-MFI company & their performance vision, Promoters experience & commitment as prior to becoming bank well as Corporate Governance ▪ Lo
Slide 62: ...With High Quality Book to Ensure Low Credit Cost
…WITH HIGH QUALITY BOOK TO ENSURE LOW CREDIT COST • High Quality Portfolio Constitution • Well diversified sector exposures • Current Collection efficiency consistent at 100% maintained High Quality Book Well-diversified across different Segments Distribution 0% 4% 7 9 4% 8% Wholesale 13% SME Educat
Slide 63: Way Forward
WAY FORWARD ❖Increasing exposure to BBB rated entities/ good unrated entities to max 10%-15% of book • Yield expansion • Smaller ticket size • Better Cross-selling opportunities ❖New Products • Working capital demand loan • Capital market product – Lending through NCD, CP etc.; better opportunity to
Slide 64: Vehicle Finance
VEHICLE FINANCE FULFILLING DREAMS INVESTOR & ANALYST MEET, 21ST JUNE, 2024
Slide 65: Vehicle Finance - Organisation Structure
VEHICLE FINANCE - ORGANISATION STRUCTURE Business Head Chief Credit & Collections Officer Regional Sales Manager National Business Manager National Credit Manager National Manager [Collections] Area Manager [Sales] Product team Lead Credit Regional Collections Manager Team composition Products and s
Slide 66: Diversifying Sourcing Model
DIVERSIFYING SOURCING MODEL Direct sales sourcing contribute to 85% of sourcing today. Targeting to increase contribution of alternate channels to 25% or more over next 2 Years by strategic alliance & Fintech tie ups Distribution Channels Primary Alternate Channel Channel Dealer Strategic Referral D
Slide 67: Market Positioning
MARKET POSITIONING Operational in Major focus in Tier- II & Tier – III markets 9 States, 185 branches, 450+ dealerships Metro Urban Tier II Target Market Tier III • Product offerings – Funding for new Two Wheeler vehicle & EV funding [e2W & e3W] • Customer segments covered – Commuter, mid-premium an
Slide 68: Key Initiatives in FY24
KEY INITIATIVES IN FY24 Focus has been on turning around the business & building a strong portfolio in the two-wheeler business in our existing operating states Built a symbiotic Staying competitive in the Re-clusterization of select Simplified the loan relationship with market locations and alignin
Slide 69: Look Back & Way Ahead
LOOK BACK & WAY AHEAD 225 34,777 37,000 180 22,750 135 12,349 8,500 FY 25 – 90 178 Expansion & Growth 139 128 -5,750 45 54 FY 24 – 0 -20,000 Turnaround & Stabilisation FY23 FY24 Disbursement in ₹ Cr Gross Loan Book in ₹ Cr Customer count FY 2025: • Expand the reach of Two-Wheeler business FY24 vs FY
Slide 70: Digital Banking
DIGITAL BANKING INVESTOR & ANALYST MEET, 21ST JUNE, 2024
Slide 71: Fuelling Growth of Savings & Fixed Deposits
FUELLING GROWTH OF SAVINGS & FIXED DEPOSITS Digital Savings Account (DSA) Digital Penetration • Launched in Dec’23 • 3.45 million Digital Customers • Opened 3750 a/c’s; book value of ₹7.74 Cr* • 1.37 lakh deposit accounts opened with a value of ₹1,584 Cr in FY • Average balance of ₹16,500* 2023-24 w
Slide 72: Enablers for Current Account as Primary Account
ENABLERS FOR CURRENT ACCOUNT AS PRIMARY ACCOUNT Corporate Mobile Merchant Solution Banking App Upgrade Corporate Digital Current Account Internet Banking • Merchant App • Authorise Business • DIY journey for Individual • UPI P2M QR code Transactions on the go • 200 + Features and Sole Proprietors •
Slide 73: Smart Banking
SMART BANKING ATMs and Cash Deposit Machines Smart Statement • Ranked #1 among SFBs and 21st position across 65 Banks in terms • Industry First Interactive transactions (moved up by 3 positions from last year) Statement with Business • Uptime at 98.5% best in the industry , Zero Cash out Simulators
Slide 74: Data Science and Decision Management
DATA SCIENCE AND DECISION MANAGEMENT • Pre-approved loans through EMI Imputation oImprovement in straight through loan processing from 26% to 59% • UP-Sell propensity model for Micro-Mortgages o13% conversion rate seen from unsecured to secured product • Real Time Productivity Tracking for field- Ta
Slide 75: Technology Journey
TECHNOLOGY JOURNEY 5 Supply Chain, Working Capital & WhatsApp 4 Banking LOS for secured products,Collection module 3 Hello Ujjivan, Digital FD, Digital SA, VideoKYC, RPA and Cloud 2 Finacle CBS, Internet 1 Banking, Mobile Banking Micro Banking CRM, ESB and API Solutions Gateway, UPI INVESTOR & ANALY
Slide 76: Lending Responsibly
LENDING RESPONSIBLY ENVIRONMENTAL, SOCIAL & GOVERNANCE INVESTOR & ANALYST MEET, 21ST JUNE, 2024
Slide 77: ESG Focus Areas at Ujjivan
ESG FOCUS AREAS AT UJJIVAN • Corporate Governance • Responsible Lending • Privacy & Data Security • Access to Finance RESPONSIBLE ACCOUNTABLE • Risk Management • Digitalization • Stakeholder engagement • Employee Welfare • Energy Management • Diversity & Inclusion EQUITABLE ENVIRONMENTAL • Waste Man
Slide 78: ESG Focus Areas at Ujjivan
ESG FOCUS AREAS AT UJJIVAN Lending via Rural • Expanding reach by presence across the country Banking – ₹1,648 cr. Presence in 26 States loan book • Financial inclusion linked to products & services –Rural / Union Territories Banking, Affordable housing & Vehicle Finance • Avoidance of “Negative” ex
Slide 79: ESG Focus Areas at Ujjivan
ESG FOCUS AREAS AT UJJIVAN 38% Diversity • ESG Oversight at Board Level; Primary agenda under 18 metric tonnes of e- at Board Level Waste disposed safely Risk Management Committee of Board ACCOUNTABLE • ISO 27001:2022 certification on Data Security • Disclosure of BRSR, Sustainability(GRI) & TCFD Re
Slide 80: Guidance
GUIDANCE INVESTOR & ANALYST MEET, 21ST JUNE, 2024
Slide 81: Guidance - FY'25
GUIDANCE - FY’25 Gross Loan Book Growth- ~20% Credit Cost: ~1.7% Deposit Growth: In line with gross loan book growth DEPOSIT NIM: ~9.0% RATIOS RoE: ~20% INVESTOR & ANALYST MEET, 21ST JUNE, 2024
Slide 82: Glossary
GLOSSARY ACR: Automated Cash Recyclers E3W: Electric 3-Wheeler AI: Artificial Intelligence EMI: Equated Monthly Instalment ALM: Asset-Liability Management ESB: Enterprise Service Bus AMB: Average Monthly Balance ESG: Environmental, Social & Governance API: Application Programming Interface ETB: Exis
Slide 83: Glossary
GLOSSARY LOS: Loan Origination System RBI: Reserve Bank of India LRD: Lease Rental Discounting RD: Recurring Deposit MB: Mobile Banking RM: Relationship Manager MFI: Micro Finance Institute RoA: Return on Assets MIS: Management Information System RoE: Return on Equity ML: Machine Learning RoI: Rate
Slide 84: Thank You
THANK YOU Investor Relations: investorrelations@ujjivan.com INVESTOR & ANALYST MEET, 21ST JUNE, 2024
Ujjivan Small Finance Bank — Investor Day (June 2024) on 6ix