Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Q3 FY21 Earnings Presentation
50 slides from Ujjivan Small Finance Bank's earnings presentation, February 2021
Slide 1: Q3 FY21 Presentation
Q3 FY21 PRESENTATION FEBRUARY 2021 Semi-Finalist European Jury Recognition Award for Inclusive Finance India Ranked 3rd in India’s Awarded Microfinance Award 2020 Excellence in Award 2020: SFB for Best Companies ‘Best Microfinance Bank’ (Sole Indian Cognitive Automation at achieving financial To Wor
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 th
Slide 3: Contents
Contents Performance Highlights Business Overview Financials Building a Mass Market Bank 3
Slide 4: Q3-FY21 – Key Highlights
Q3-FY21 – Key Highlights Disbursements back on track – ₹ 2,184 Cr, up by 49% Q-o-Q |Dec’20 disbursement up by 8% Y-o-Y Collections: 95% of customers have started paying post end of moratorium Improved customer acquisition for the quarter with 1.7 Lakh new customers | Retail deposits up by 20% Y-o-Y
Slide 5: Performance Highlights
UJJIVAN Performance Highlights UJJIVAN SMALL FINANCE BANK 5 Build a Better Life
Slide 6: Key Highlights as on Dec’20
Key Highlights as on Dec’20 24 States/ UTs, 244 Districts 575 branches1, 486 ATMs2 Expanding Customer base 16,733 Employees vs 244 districts in Dec’19 vs 574 branches3; 471 ATMs in Dec’19 vs 17,783 in Dec’19 56.6 lakh customers vs. 52.5 lakh in Dec’19 40.2 lakh borrowers vs. 43.6 lakh in Dec’19 CRAR
Slide 7: Q3-FY21 – Key Highlights
Q3-FY21 – Key Highlights Pre-provision Operating Profit Net Interest Income Net Interest Margin GNPA (PPoP) ₹ Crore ₹ Crore * 427 432 9.7% 204 1% {4.8%} Vs. 144 Vs. 10.9% 1% Q3-FY20 Q3-FY20 Q3-FY21 Q3-FY20 Q3-FY21 Dec’19 PAT ROA ROE NNPA ₹ Crore * (279) (5.8%) (34.7%) 0.05% {2.05%} Vs. Vs. Vs. Vs. 9
Slide 8: Liabilities – Good traction in CASA, customer acquisition
Liabilities – Good traction in CASA, customer acquisition • Total deposits grew 9% Y-o-Y to ₹ 11,617 Cr; Retail Deposits share increasing rapidly Customer acquisition ramping-up at branches CASA grew 66% Y-o-Y ₹ Crore Nos 159,029 168,344 5,254 5,563 TD • We continue to focus on building granular 4,6
Slide 9: MicroBanking: Asset businesses ready for growth (1/3)
Asset businesses ready for growth (1/3) • Collections have improved sequentially • 94% in Dec’20 as against 83% in Sep’20 • 99.5+% collection for loans disbursed in 9M-FY21 • Disbursement • Disbursements improving with pick up in economic activities • Dec’20 disbursement were above pre-COVID levels;
Slide 10: Affordable Housing: Asset businesses ready for growth (2/3)
Asset businesses ready for growth (2/3) • Collection efficiency – 94% in Dec’20 (92% in Sep’20) Affordable Housing • Disbursements at ₹ 209 Cr in Q3-FY21 at par with pre-COVID levels; up from ₹ 116 Cr in Q2-FY21 • Dec’20 disbursement at ₹ 80 Cr; up 7% Y-o-Y • New case log-ins are now higher than pre
Slide 11: Personal: Asset businesses ready for growth (3/3)
Asset businesses ready for growth (3/3) • Collections continue to be at 100% since Aug’20; no overdue in any account • Disbursements – Cautiously scaling up; ₹ 105 Cr in Q3-FY21 vs ₹ 88 Cr in Q3-FY20 FIG • Focus on higher-rated entities for growth • New Products WIP – Call Money for Cooperative bank
Slide 12: Insurance distribution: Focus on retail products to drive fee income
Insurance distribution: Focus on retail products to drive fee income Strong pick-up in retail premium… ₹ Crore Credit Life Retail 78.7 • Focused product strategy in retail driving higher commission; 9.8 • Focus on health insurance, guaranteed products in Life Insurance 55.0 • Expanding distribution
Slide 13: Comprehensive digital strategy to build a strong growth platform
Comprehensive digital strategy to build a strong growth platform Fully digitized on-boarding for all asset/ liability products • On-boarding processes like statement analysis, document verification, e-agreements, e-mandates operational • TAT for various processes in on-boarding journey reduced from
Slide 14: Increasing digital footprints (1/2)
Increasing digital footprints (1/2) *Increasing Digital Transactions (%) UPI Transactions Total transactions (in Lakhs) Digital transactions (%) ^Active 219,546 312,165 377,162 459,097 557,743 Customers ₹ Crore 210 92% 1,655 3.9x 429 607 524 1,086 Y-o-Y 82% Q3-FY20 Q4-FY20 Q1-FY21 Q2-FY21 Q3-FY21 16
Slide 15: Increasing digital footprints (2/2)
Increasing digital footprints (2/2) Internet Banking Mobile Banking POS Transactions No. of Active Customers Nos in ‘000 No. of Active Customers Nos in ‘000 No. of Transaction (in box) Value in ₹ Crore 1.9x Y-o-Y 1.9x Y-o-Y 1.5x Y-o-Y 12.9 14.0 9.8 12.4 13.6 lakhs lakhs lakhs lakhs lakhs 71.9 66.2 6
Slide 16: Collections: 95% of customers have started paying post end of moratorium
Collections: 95% of customers have started paying post end of moratorium Collection % (including additional collections) Collection % (against same month dues) 104% 105% Digital vs cash collections 93% 93% 96% 89% Cash Digital 76% 1% 92% 68% 89% 94% 92% 16% 13% 59% 84% 88% 29% 69% 61% 54% 99% 84% 87
Slide 17: Collection efficiency (1/2)
Collection efficiency (1/2) ₹ Crore Oct’20 Nov’20 Additional Additional Verticals Due Collection Collection % Due Collection Collection % Collection Collection MicroBanking 975.5 856.1 88% 52.4 952.4 846.0 89% 52.0 MSE (Secured) 17.8 15.3 86% 7.8 18.3 16.2 88% 7.9 MSE (Unsecured) 5.8 3.9 67% 0.8 5.5
Slide 18: Collection efficiency (1/2)
Collection efficiency (1/2) ₹ Crore Dec’20 Jan’21 Additional Additional Verticals Due Collection Collection % Due Collection Collection % Collection Collection MicroBanking 897.0 843.9 94% 75.8 887.7 818.0 92% 97.7 MSE (Secured) 18.3 16.5 90% 11.6 19.2 17.3 90% 12.9 MSE (Unsecured) 5.3 3.7 69% 0.3 4
Slide 19: States with Lower Collections - MicroBanking
States with Lower Collections - MicroBanking Maharashtra West Bengal Assam Punjab Total MB Portfolio (₹ Crore) 771 1,490 364 337 High COVID exposure MFI Bill Farm bill protest Reasons for low Lockdowns, Transportation Localized political Political disturbances by political collections un
Slide 20: Assam: MicroBanking update
Assam: MicroBanking update Current situation • Assam portfolio is less than 3% of total loan book • Assam MFI Bill passed by the State government; aimed at regulating Microfinance Industry in the state; detailed guidelines for the bill are awaited • In early Jan’21, leading political parties announc
Slide 21: Update on portfolio restructuring
Update on portfolio restructuring MicroBanking • Identified accounts basis extensive discussion with borrowers Two modes of restructuring and analysis of repayment during moratorium • Tenor elongation – ₹ 536 Cr (2.2 lac accounts) • 3.7 lac accounts amounting to ₹ 852 Cr portfolio restructured – • E
Slide 22: Accelerated provisioning to buffer for contingencies
Accelerated provisioning to buffer for contingencies Book Cover at 8% | COVID provisioning at 6%; Incremental COVID provision in Q3: ₹ 547 Cr | Total book provisions: ₹ 1029 Cr GNPA and Pro-forma GNPA NNPA and Pro-forma NNPA 4.8% * 2.05% NNPA Proforma NNPA GNPA Proforma GNPA 1.2% 0.3% 0.9% 1.0% 1.0%
Slide 23: Business Overview
UJJIVAN Business Overview UJJIVAN SMALL FINANCE BANK 23 Build a Better Life
Slide 24: Well Diversified Pan India Presence
Well Diversified Pan India Presence Gross Advances (Dec’20) • 24 states and UTs (144 URCs) TN 16.4% • 575 Banking Outlets (BO) KA 14.4% • 244 districts WB 13.8% • 486 ATMs MH 9.8% 1 CH:1 GJ 8.0% 16 BR 5.8% 4 36 DL:8 HR 4.6% UP 4.0% 26 18 RJ 3.9% 31 37 1 AS 2.9% 8 OR 2.7% 44 14 83 11 PB 2.6% 4 DL 2.5
Slide 25: Expanding liability customer base
Expanding liability customer base Customer Base Growth Customer Base – Basis of Branch Classification Asset Only Asset & Liability Liability Only 54.4 54.7 55.3 56.6 52.5 8% 8.8 10.9 11.8 14.0 16.3 24% 36% 33.3 36.2 36.2 35.8 35.7 32%* 10.3 7.3 6.7 5.5 4.5 Metropolitan Semi-Urban Urban Rural Dec.-19
Slide 26: Gross Advances and Disbursement Trend
Gross Advances and Disbursement Trend Gross Advances (₹ in Crore) Total Disbursements (₹ in Crore) 14,153 14,366 9,967 13,617 13,890 13,638 3,403 4,124 2,184 Dec.-19 Mar-20 Jun-20 Sep-20 Dec-20 Q3-FY20 Q3-FY21 9M-FY20 9M-FY21 Microfinance Loan Disbursement (No. of Loans) Portfolio Breakup Unsecured
Slide 27: Gross Advances Snapshot
Gross Advances Snapshot Gross Advances– Segment wise (₹ in Crore) Product % Gross Advances Growth Y-o-Y Growth Q-o-Q Group Loans Micro Individual Loans Agri & Allied Loans MSE Affordable Housing FIG Group Loans 61.2% (9.3%) (6.1%) Others* Micro Individual Loans 10.6% 13.4% (0.2%) 13,617 13,890 13,63
Slide 28: 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^ 9,968 21% 20% 153 20% 20% 19% 461 17% 17% 14% 15% 656 14% 14% 3
Slide 29: Liability profile: Retail franchise gaining momentum
Liability profile: Retail franchise gaining momentum Total liabilities profile (₹ in Crore) Deposits break-up (₹ in Crore) Refinance Deposits Others Certificate of Deposits Institutional TD Retail TD CASA 11,617 13,755 14,692 14,983 10,656 10,743 1,237 2,055 1,769 200 250 560 3,440 3,874 3,863 10,65
Slide 30: Well-diversified and granular deposit mix
Well-diversified and granular deposit mix Region-wise deposit mix Branch classification wise deposit mix Segment wise deposit mix Dec’19 Dec’20 Deposits (include CDs) ^TASC- Trust, Association, Societies & Clubs 30
Slide 31: Healthy Capital Adequacy
Healthy Capital Adequacy (₹ in Crore) Dec’19 Mar’20 Jun’20 Sep’20 Dec’20 Credit Risk Weighted Assets 10,442 10,775 11,032 10,543 10,342 Tier I Capital 2,873 3,018 3,072 3,168 2,681 Tier II Capital* 84 87 93 99 103 Total Capital 2,958 3,105 3,164 3,268 2,785 CRAR 28.3% 28.8% 28.7% 30.99% 26.93% Tier
Slide 32: Financial Overview
UJJIVAN Financial Overview UJJIVAN SMALL FINANCE BANK 32 Build a Better Life
Slide 33: Financial Overview
Financial Overview NII (₹ in Crore) & NIM Cost to Income Ratio & Operating Expenses/ Average Assets (%) Operating Exp/ 8.5% 6.3% 6.9% 8.3% 6.4% Net Interest Income Net Interest Margin Avg Assets 71% 10.9% 10.7% 10.1% 69% 10.2% 9.7% 62% 1,360 1,167 58% 57% 427 470 432 Q3-FY20 Q2-FY21 Q3-FY21 9M-FY20
Slide 34: Income Statement
Income Statement Particulars (₹ in Crore) Q3-FY21 Q3-FY20 YoY Growth Q2-FY21 QoQ Growth 9M-FY21 9M-FY20 YoY Growth Interest Earned 688 707 (3%) 754 (9%) 2,188 1,966 11% Other Income 100 75 34% 64 56% 194 250 (23%) Total Income 789 782 1% 818 (4%) 2,382 2,216 7% Interest Expended 256 280 (9%) 283 (10
Slide 35: Total Income - Breakup
Total Income - Breakup Particulars (₹ in Crore) Q3-FY21 Q2-FY21 Q3-FY20 9M-FY21 9M-FY20 Interest on loan 638 701 667 2,036 1,853 Int. on investments 51 53 39 152 107 Securitization Inc. 0 0 1 0 6 Total Interest Earned 688 754 707 2,188 1,966 Processing Fees 28 19 44 52 126 PSLC Income 5 24 1 29 47 T
Slide 36: Balance Sheet
Balance Sheet Particulars (₹ in Crore) Dec-20 Sep-20 Dec-19 CAPITAL AND LIABILITIES Capital 1,928 1,928 1,928 Share Application Money Pending Allotment - - - Employees Stock Options Outstanding 41 37 13 Reserves and Surplus 1,110 1,389 1,167 Deposits 11,617 10,743 10,656 Borrowings 3,366 3,949 3,099
Slide 37: Ujjivan – Building a Mass Market Bank
Ujjivan – Building a Mass Market Bank 37
Slide 38: Well placed to gain from evolving country demographics
Well placed to gain from evolving country demographics USFB Enterprise USFB 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 Mid
Slide 39: Comprehensive suite of Banking Products & Services
Comprehensive suite of Banking Products & Services Micro and Small Enterprise Micro-Banking Affordable Housing Loans Vehicle Loans Personal Loans Financial Institutions Group Loans Loan • Group Loans • Secured Enterprise and • Two wheeler loan • Individual Loans Business Loan • Construction and Purc
Slide 40: Focus on growing stable and granular Liability base
Focus on growing stable and granular Liability base Dominate branch Advanced business catchment net banking Traders, Retailers and MSE Encourage user adoption for Salaried / Corporate Salary digital channels Digital + Branch led Payment solutions, transactions Fee Based Products, Youth CMS Life Even
Slide 41: Other Income – diversifying revenue streams
Other Income – diversifying revenue streams Third Party Products PSLC Income ₹ 5 crore in Q3-FY21 ₹ 5 crore in Q3-FY21 ● Focussed approach to maximise PSLC income by way to Current line of products – to be ramped-up over automated tagging and better timing medium-term ● Majority of portfolio is PSL
Slide 42: Serving customers through multiple delivery channels
Serving customers through multiple delivery channels ● 486 ATMs including 53 Automated Cash Recycler machines ● Web-based, can be accessed from any system ● All ATM’s re-enabled with biometrics Personal & ● High volume bulk upload facility ● Empowering customers to block/unblock debit Business Inter
Slide 43: Strong Independent Board
Strong Independent Board Name Education Experience Name Education Prior Experience MA from JNU, M.Sc in management Nandlal Laxminarayan Previously served on the boards of the Biswamohan Mahapatra Previously served as an from Arthur D. Little Management Sarda M.Tech and PhD from IIT, Bombay Union Ban
Slide 44: 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, Modi Xerox ● Professional Diploma in Marketing Management, All India Management MD & Chief Executive Officer Association S
Slide 45: Key Growth Strategies
Key Growth Strategies COMPREHENSIVE & RELEVANT PRODUCTS EXPAND & OPTIMIZE DISTRIBUTION NETWORK 04 ● Entire gamut of asset and liability products to attract new customers ● Use right combination of physical and digital channels and partnerships 01 and deepen existing customer relationships ● Expand r
Slide 46: Annexure
uyyivan Annexure UJJIVAN SMALL FINANCE BANK Build a Better Life
Slide 47: Shareholding Pattern
Shareholding Pattern Shareholding Pattern (Based on Holding) as on 31st December, 2020 Promoter* 3.30% 0.44% 1.04% 5.47% Resident Individuals/HUF 6.42% Foreign Investors Alternative Investment Funds 83.32% Mutual Funds Others *Promoter is Ujjivan Financial Services Ltd which is a Core Investment Com
Slide 48: Ujjivan: Inclusive Growth Philosophy
Ujjivan: Inclusive Growth Philosophy COVID Relief Community Development •Initiatives were done intenrally by the bank to •Work with CSR partner organisations to address the pandemic and also through partner strengthen communities by providing organisations support the unserved and support to educati
Slide 49: Relief Activities
Relief Activities Beneficiary 44,107 12,800+ Municipality 1,95,000+ trained on 18,450 Healthcare 19,947 200 Drivers & beneficiaries and Panchayat workers COVID awareness Workers Police Conductors • COVID relief activity: - As apart of CSR initiative distributed 1,50,000+ Mask; 41,000+ Soaps; 27,000+
Slide 50: Thank You!
uyyivan Thank You! UJJIVAN SMALL FINANCE BANK Build a Better Life
Ujjivan Small Finance Bank — Q3 FY21 Earnings Presentation on 6ix