Jana Small Finance Bank Ltd · NSE:JSFB
Jana Small Finance Bank — Q1 FY2025 Earnings Presentation
32 slides from Jana Small Finance Bank's earnings presentation, Jul 22, 2024
Slide 1: Jana Small Finance Bank Investor Presentation Q1 FY'2025
Jana Small Finance Bank Investor Presentation Q1 FY’2025
Slide 2: Executive Summary
Executive Summary • Deposits growth of 41% y-o-y and 5% q-o-q, TD growth 4% q-o-q, CASA growth 9% q-o-q • Advances growth of 25% y-o-y and 4% q-o-q. Secured q-o-q 8%,Unsecured q-o-q (1%) • Secured grows q-o-q to 62% from 60% and CASA from 19.7% to 20.4% • Capital Adequacy at 19.3% with Tier-1 CRAR o
Slide 3: Highlights y-o-y – PBT growth of 77% and Deposits at 41%
Highlights y-o-y – PBT growth of 77% and Deposits at 41% Asset Capital Operational Assets Liabilities Ratios P&L Metrics Quality Structure Metrics Rs. 25,759 Crs / 25.1% Rs. 23,710 Crs / 41.0% 2.51% [2.68%] 3,757 Crs [2,445 Crs] 780 [766] 2.1% [1.4%] Rs. 160 Crs Advances1 / Growth Deposits / Growth
Slide 4: Highlights q-o-q – Healthy growth with Asset 4% and Liability 5%
Highlights q-o-q – Healthy growth with Asset 4% and Liability 5% Asset Capital Operational Assets Liabilities Ratios P&L Metrics Quality Structure Metrics Rs. 25,759 Crs / 4.1% Rs. 23,710 Crs / 5.0% 2.51% [2.00%] 3,757 Crs [3,577 Crs] 780 [808] 2.1% [4.2%] Rs. 160 Crs Advances1 / Growth Deposits / G
Slide 5: National franchise with strong brand recognition
National franchise with strong brand recognition Distribution of bank branches Presence in Unbanked Rural Centers MFI through BCs 780 Business Correspondent (BC) Operated Outlets Bank Branches Unbanked Rural Centres % of Total Outlets Banking Outlets Advances sourced by BCs / Total Advances1 (%) 36.
Slide 6: Secured Lending at 62%; Unsecured q-o-q growth negative 1%
Secured Lending at 62% in 6 years; Unsecured q-o-q growth negative 1% Asset Products Key Metrics for Asset Products 25,759 24,746 841 803 Average Category of Advance Average Advances1 Advances1 3,796 Ticket GNPA3 NNPA3 (As at June 30, Tenure Growth Growth LTV4 3,899 20,595 Size (Rs. (%) (%) 2024) (M
Slide 7: Consistent De-risking and Diversification
Consistent De-risking and Diversification Focus on making secured the core Low geographical concentration Maharashtra Tamil Nadu Karnataka Gujarat Madhya Pradesh Rajasthan Uttar Pradesh Others Secured Advances1 (Rs. Crs) 15,880 30% 33% 33% 14,745 35% 3% 11,045 6% 6% 6% 61.6% 5% 24% 6% 59.6% 7% 6% 6%
Slide 8: Best in class risk Management
Best in class risk Management API based digital Process Portfolio Management Customised Score Card & Early Warning Bureau Bounce Incidence Refreshed bureau Bank Statements Internal risk score Financials Key Account Manager Updated financial GST information , bank Personal Discussion statements
Slide 9: The shape of future MFI – BC book showing challenge and slowing
The shape of future MFI – BC book showing challenge and slowing Product Wise Digital y-o-y q-o-q Jun-24 ATS2 GNPA3 NNPA3 PCR Advances1 Payment Growth Growth Individual Loan 5,230 36.2% 48,019 9.8% (1.0%) 4.4% 0.7% 85.1% - Agri 1,155 23.3% 49,425 20.4% 6.4% 4.1% 0.6% 86.7% - Non Agri 4,075 39.0% 47,6
Slide 10: Healthy mix of existing and new customers
Healthy mix of existing and new customers Product L1 L2 L3 L4+ Agri 3,145 585 48 18 GL 738 65 23 16 IL 396 1,608 1,537 1,701 Overall 4,279 2,258 1,608 1,734 RFS Overall - % Portfolio Existing Customers Agri Loans - % Portfolio Existing Customers GL and IL - % Portfolio Existing Customers 17.1% 81.4%
Slide 11: Bring Your Bank Home
Bring Your Bank Home Home Loan leading to Anchor Bank with Multiple Product Offerings and Special Benefits Two Wheeler loans • Pre-approved Two Wheeler loans Pre-approved Business Loan • 100% funding to the vehicle value • Additional Pre-approved line upto Rs. 5 lakhs available • Lower Processing fe
Slide 12: Becoming Anchor bank to our customers
Becoming Anchor bank to our customers CASA Penetration Health Insurance #Average TD/RD Penetration 99% Penetration 92% Relationships 18% 3.6 64% 2.6 25% 3% PRE-HOME360 POST-HOME360 PRE-HOME360 POST-HOME360 PRE-HOME360 POST-HOME360 Customers Customers PRE-HOME360 POST-HOME360 Customers Customers Cust
Slide 13: Fast growing deposits at 41% and CASA growing at 47%
Fast growing deposits at 41% and CASA growing at 47% in a highly competitive environment Rapidly growing deposit portfolio Diversified deposit base… No concentration risk in liabilities Karnataka Maharashtra Punjab CASA Term Deposits CASA (%) West Bengal Tamil Nadu Delhi Uttar Pradesh Others 20% 23,
Slide 14: Deposits – Underserved on Service and Price
Deposits – Underserved on Service and Price Optimize Distribution network –Mobilize Low-cost, stable retail deposits. Build momentum on CASA acquisitions No. of Branches Avg CASA Book per Branch Avg Deposit Book per Branch 238 (in Crs) 18 (in Crs) 102 190 18 4 23 61 10 0.2 1.4 2 < 1 Year 1-3 Years 3
Slide 15: Digital – A way of life!
Digital – A way of life! Jana Digitization 90% + Digital Uptake 99 % 98 % 92 % 90 % Digital Highlights Digital Channels SA Accounts Banking Txns Loans are Digitally Sales force use opened Digitally are Digital processed TAB/Mobile Key Highlights Merchant QR 15,826 QR Codes Installed across merchants
Slide 16: Key Financials
Cor y Jana Small coo Finance Bank A SCHEDULED COMMERCIAL BANK Key Financials 16
Slide 17: Cost Income Ratio at 55.5%
Cost Income Ratio at 55.5% Steady Return ratios Stable NIMs NIM (%) Yield on Advances (%) RoE (%) RoA (%) 18.2% 18.1% 21.5% 17.2% 18.3% 17.6% 7.6% 8.1% 8.0% 1.4% 2.2% 2.0% Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 Managing Operational efficiencies Increasing total revenues Operating Income (Rs
Slide 18: GNPA and NNPA increase is event driven and seasonal
GNPA and NNPA increase is event driven and seasonal Asset quality ratios y-o-y PAT growth of 89% GNPA % NNPA % PCR % Profit Before Tax Profit After Tax 34.0% 73.7% 62.7% 322 GNPA / NNPA Secured Book 2.7% 2.5% 1.1% / 0.9% 166 160 171 2.0% 1.1% 0.9% 90 90 GNPA / NNPA 0.5% Unsecured Book 4.7% / 1.0% Q1
Slide 19: Net NPA has 61% secured loans
Net NPA has 61% secured loans GNPA and NNPA returning to Pre-COVID levels Restructured Portfolio @ 0.3% of AUM INR crs Jun-24 Particulars Secured Unsecured BC Total Group Loans 6 Gross NPA 181 295 170 646 Agricultural and allied Loans 1 Net NPA 148 42 50 241 Individual and Micro Business loans 2 Tot
Slide 20: Credit Cost Ratio continues to improve at 1.89%
Credit Cost Ratio continues to improve at 1.89% Net Credit Cost Net Credit Cost % of AUM 3.36% 512 2.78% 485 416 1.96% 1.89% 2.10% 143 121 Mar-22 Mar-23 Mar-24 Jun-23 Jun-24 Particulars Mar-22 Mar-23 Mar-24 Jun-23 Jun-24 Credit Cost 569 744 679 183 194 Accelerated Provisioning - 71 73 - 54 Recoverie
Slide 21: Balance Sheet
Balance Sheet June 30, March 31, June 30, Borrowings: Rs. Crs 2023 2024 2024 CAPITAL AND LIABILITIES Borrowings includes Capital 452 105 105 • Refinance – Rs. 3,649 crores Reserves & surplus 1,993 3,472 3,653 • SLTRO – Rs. 400 crores Deposits 16,809 22,571 23,710 • Tier-2 capital - Rs. 350 crores Bo
Slide 22: Profit & Loss Statement
Profit & Loss Statement Quarter ended Quarter ended Quarter ended Rs. Crs June 2023 March 2024 June 2024 Other Income: Net Interest Income 462 591 610 Other Income includes: Other Income 188 180 189 • Commission, exchange and brokerage – Rs. 129 crores [Rs. 102 crores] Operating Income 650 771 799 •
Slide 23: Guidance
Guidance We continue to serve aspirational India, underserved both on deposits and loans We continue to increase our secured business proportion each year. We are creating a sustainable, predictable and long term franchise. Digital with high standards of governance and customer service are key compo
Slide 24: Experienced and professional management and Board
Experienced and professional management and Board Experienced board with diverse business experience in well-known financial services institutions and banks Name & Designation Past Experience Name & Designation Past Experience • Insurance Regulatory and Subhash Chandra Khuntia Development Authority
Slide 25: Experienced and professional management and Board
Experienced and professional management and Board International best practices in risk management, compliance and governance introduced by management with an average experience of 27 years in financial services Name & Designation Past Experience Name & Designation Past Experience Name & Designation
Slide 26: Our Journey - Bank History, Key Milestones & Achievements
Our Journey - Bank History, Key Milestones & Achievements 4th largest Small Focusing on a Focus on Finance Bank in Serving Focused on Strong customer centric diversifying Access to low- Strong emphasis India in terms of underbanked MSME and technology base approach to advances by cost diversified on
Slide 27: Our Strength
Our Strength Digitalised bank with Pan-India presence with strong brand recognition Integrated Risk and Governance Framework Professional and Experienced Management and Board Customer-centric organization with > 16 years’ experience in serving aspirational India Diversified asset book with majority
Slide 28: Our Strategies
Our Strategies Anchor Bank Increasing secured loans book Improve CASA and Retail Deposits Increase product range for existing segments Continued Focus on digitized operations Deepen customer relationships Focus on Risk and Compliance Optimizing Balance Sheet 28
Slide 29: Thank You
Jana Small Finance Bank A SCHEDULED COMMERCIAL BANK Thank You
Slide 30: DTA of Rs. 750 crores till FY 2027 can be utilized
DTA of Rs. 750 crores till FY 2027 can be utilized Excluding DTA and Particulars As reported Excluding DTA Applying Tax PBT 160 160 160 DTA 10 - - Provision for Tax - - 40 PAT 171 160 120 ROA 2.1% 2.0% 1.5% ROE 18.9% 17.8% 13.3% • Balance DTA of Rs. 750 crores not yet recognized. The amount is avail
Slide 31: Abbreviations
Abbreviations Abbreviation Expansion Abbreviation Expansion CASA Current Account and Savings Account AUM Assets Under Management CRAR Capital-to-Risk Weighted Asset Ratio NBFC Non-Banking Financial Company GNPA Gross Non-Performing Assets MFI Micro Finance institution NNPA Net Non-Performing Assets
Slide 32: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Jana Small Finance Bank (the “Bank”) and no part of it shall form the basis of or be relied upon in connection with an
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