Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Q1 FY24 Earnings Presentation
48 slides from Ujjivan Small Finance Bank's earnings presentation, Jul 27, 2023
Slide 1: Cover letter to stock exchanges
USFB/CS/SE/2023-24/47 Date: July 27, 2023 To, National Stock Exchange of India Limited BSE Limited Listing Department, Listing Compliance, Exchange Plaza, C -1, Block G, Bandra Kurla P.J. Tower, Complex, Bandra (E), Dalal Street, Fort, Mumbai-400 051 Mumbai-400 001 Symbol: UJJIVANSFB Scrip Code: 542
Slide 2: Press Release: Sustaining and Scaling New Heights
Press Release Sustaining and Scaling New Heights Highest-ever PAT at ₹324 crore for Q1FY24 driven by strong business momentum Disbursed ₹5,284 crore for Q1FY24; Gross loan book up 30% Y-o-Y Collections/ asset quality continues to be at industry best; PAR at 3.8%; GNPA/NNPA at 2.4%/0.06% Deposits up
Slide 3: CEO statement and about the Bank
Mr. Ittira Davis, MD & CEO, Ujjivan Small Finance Bank said, “FY24 has started on a very strong note as we hit another highest ever profit figure. The growth has come on the strong platform built during FY23. Our disbursement has been strong, despite Q1 being seasonally weakest quarter, taking our l
Slide 4: Q1 FY24 Investor Presentation
Q1 FY24 INVESTOR PRESENTATION
Slide 5: 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 6: Key Highlights – Q1FY24 (1/2)
KEY HIGHLIGHTS – Q1FY24 (1/2) Gross Loan Book Total Deposits Retail TD* ₹ 25,326 cr ₹ 26,660 cr ₹ 10,970 cr Up 30% yoy Up 45% yoy Up 71% yoy Jun'22: ₹19,409 cr Jun'22: ₹18,449 cr Jun'22: ₹6,432 cr GNPA/NNPA CRAR Employees 2.4%/0.06% 26.7% 19,294 Down 354/4 bps Up 666 bps Up 16% yoy Jun'22: 5.9%/0.1%
Slide 7: Key Highlights – Q1FY24 (2/2)
KEY HIGHLIGHTS – Q1FY24 (2/2) Q1FY24 Vs Q1FY23 NII ₹ 793 cr Up 32% Vs ₹ 600 cr NIM 9.2% Down 40 bps Vs 9.6% PPoP ₹ 458 cr Up 52% Vs ₹ 301 cr PAT ₹ 324 cr Up 60% Vs ₹ 203 cr RoA 3.8% Up 42 bps Vs 3.4% RoE 29.8% Up 178 bps Vs 28.0% 4
Slide 8: Ujjivan's Tales of Trust & Progress
UJJIVAN’S TALES OF TRUST & PROGRESS How did How did How did How did this trust shape trust alter trust deepen coffee business this food the the bond owner's vendor's journey of between an complete trust relationship two aged teacher in his supplier with his strangers and her ex- impact their custome
Slide 9: Liabilities: Driving Retail Deposit Base
Liabilities: Driving Retail Deposit Base 6
Slide 10: Strong Deposit Growth with Retail at Fore-front
STRONG DEPOSIT GROWTH WITH RETAIL AT FORE-FRONT Deposits break-up (₹ in crore) CASA break-up (₹ in crore) Bulk TD Retail TD CASA Certificate of Deposits 26,660 SA CA 25,538 6,744 23,203 193 6,556 217 20,396 147 6,556 585 18,292 18,449 6,744 633 397 6,070 5,155 15,563 756 344 5,496 14,090 374 4,993 5
Slide 11: Well-Diversified Deposit Mix
WELL-DIVERSIFIED DEPOSIT MIX Deposits from individual continues to grow with our focus on building granular deposit base 8
Slide 12: Assets: Well-diversified growth with new customer acquisition
Assets: Well-diversified growth with new customer acquisition 9
Slide 13: Gross Loan Book and Disbursement Trend
GROSS LOAN BOOK AND DISBURSEMENT TREND Strong disbursements (₹ in crore) Consistent growth in Gross Loan Book (₹ in crore) Secured (%) 29% 29% 28% 27% 27% 6,001 25,326 24,085 5,284 21,895 4,868 20,938 4,841 19,409 4,327 Q1-FY23 Q2-FY23 Q3-FY23 Q4-FY23 Q1-FY24 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Healt
Slide 14: Growing Across Segments
GROWING ACROSS SEGMENTS Gross Loan Book – Segment wise (₹ in crore) % Gross Growth Growth Product Loan Book Y-o-Y Q-o-Q MGL IL MSME AH* FIG Others 25,326 Micro Group Loans 59% 31% 4% 24,085 614 598 1,218 1,128 Individual Loans 14% 71% 11% 3,671 19,409 3,401 521 1,508 872 1,593 MSME 6% (15)% (5)% 2,9
Slide 15: Disbursement, Yield and Average Ticket Size
DISBURSEMENT, YIELD AND AVERAGE TICKET SIZE Product wise Disbursement (₹ in crore) Yield Yield (%)(%) – Segment – Segment wise wise MGL+IL Overall MSME AH (Ex MLAP) MGL IL MSME AH* FIG Others^ 21.6% 21.8% 6,001 20.6% 18.9% 19.1% 236 18.0% 318 5,284 439 13.9% 416 13.5% 81 12.2% 320 12.7% 12.9% 12.8%
Slide 16: Sustained improvement in asset quality
Sustained improvement in asset quality 13
Slide 17: Collections Sustaining; NDA Collections at ~100%
COLLECTIONS SUSTAINING; NDA COLLECTIONS AT ~100% Collection % (against month due) Collection Efficiency % (incl Additional collections) Cashless MB collections 117% 31% 115% 115% 112% 112% 29% 111% 111% 111% 110% 111% 111% 110% 110% 26% 22% 20% 99% 99% 99% 100% 99% 100% 100% 99% 100% 100% 99% 99% 99
Slide 18: Collection Efficiency
COLLECTION EFFICIENCY ₹ Crore Apr’23 May’23 Jun’23 Additional Additional Additional Verticals Due Collection % Due Collection % Due Collection % Collection Collection Collection MGL+IL 1,229.4 1,225.0* 100% 79.4 1,281.3 1,278.1* 100% 92.8 1,314.8 1,308.5* 100% 101.2 Affordable 46.3 44.5 96% 41.7 47.
Slide 19: Sustained Collections Driving Better Asset Quality
SUSTAINED COLLECTIONS DRIVING BETTER ASSET QUALITY NPA & SMA have shrunk significantly NPA Movement Table# 7.9% GNPA NNPA 5.9% 6.1% SMA PAR 4.9% 4.4% 3.8% 3.8% 77 3.4% 103 2.6% 2.4% 2.0% 1.7% 1.5% 1.2% 60 1.5% 0.1% 0.04% 0.05% 0.04% 0.06% Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 PAR 0 and GNPA (segment wi
Slide 20: Floating Provision @1%; Cushioning P&L
FLOATING PROVISION @1%; CUSHIONING P&L Std+NPA Provision Floating PCR% (₹ in cr) 99% 99% 130 98% 98% 10 0% 14 00 98% 1,260 95 % 100 12 00 220 30 1,036 Total NPA 90 % provision of ₹ 120 585 Crs 10 00 160 Floating 842 Provision of ₹250 Crs 747 85 % 845 715 800 150 120 120 80 % 600 1,040 PCR @98% exclu
Slide 21: Sustained Collections Driving Better Asset Quality
SUSTAINED COLLECTIONS DRIVING BETTER ASSET QUALITY Restructured Book Significant reduction in stress book ₹ crores RF 1.0 RF 2.0 Total 32.1% GNPA+RF Book Micro Banking (GL+IL) 65 39 104 PAR+RF Book Housing 8 17 25 25.2% MSME 6 47 52 18.4% Loan Book 79 103 182 19.2% 14.5% 11.7% PAR 71 79 150 13.2% 9.
Slide 22: Financial Overview
Financial Overview 19
Slide 23: Financial Overview
FINANCIAL OVERVIEW NII (₹ in crore) & NIM* Cost to Income Ratio & Operating Expenses/ Average Assets (%) 9.6% 9.8% 7.1% 10.1% 9.4% 9.2% 100% 9.1% 900 9.6% 6.6% 90% 7.0% 6.4% 9.1% 800 80% 6.2% 6.5% 6.1% 8.6% 70% 700 60% 8.1% 6.0% 50% 600 7.6% 738 793 40% 697 5.5% 7.1% 663 59% 55% 500 52% 53% 53% 30%
Slide 24: Income Statement
INCOME STATEMENT Particulars (₹ in crore) Q1-FY24 Q1-FY23 YoY Growth Q4-FY23 QoQ Growth Interest Earned 1,287 905 42% 1,185 9% Other Income 177 125 42% 179 (1)% Total Income 1,464 1,030 42% 1,364 7% Interest Expended 494 306 62% 447 11% Personnel Expenses 275 224 23% 262 5% Operating Expenses 237 20
Slide 25: Total Income - Breakup
TOTAL INCOME - BREAKUP Particulars (₹ in crore) Q1-FY24 Q1-FY23 YoY Growth Q4-FY23 QoQ Growth Interest on loan 1,133 818 38% 1,037 9% Int. on investments 149 81 84% 142 6% Securitization Income 4 6 (29)% 6 (30)% Total Interest Earned 1,287 905 42% 1,185 9% Processing Fees 67 55 22% 78 (15)% PSLC Inc
Slide 26: Balance Sheet
BALANCE SHEET As at As at As at Particulars (₹ in crore) Jun 30, 2023 Mar 31, 2023 Jun 30, 2022 CAPITAL AND LIABILITIES Net worth 4,539 4,209 3,007 Capital 2,155 2,155 1,928 Employees Stock Options Outstanding 57 51 44 Reserves and Surplus 2,327 2,003 1,035 Deposits 26,660 25,538 18,449 Borrowings 2
Slide 27: Healthy Capital Adequacy
HEALTHY CAPITAL ADEQUACY (₹ in Crore) Jun’22 Sep’22 Dec’22 Mar’23 Jun’23 Credit Risk Weighted Assets 12,956 13,726 15,369 16,361 17,012 Tier I Capital 2,423 3,208 3,511 3,712 4,018 Tier II Capital* 172 457 488 511 522 Total Capital 2,595 3,665 3,999 4,223 4,541 CRAR 20.03% 26.70% 26.02% 25.81% 26.69
Slide 28: Ujjivan – Platform for growth
Ujjivan – Platform for growth Please refer to Investor Meet Presentation for more details uploaded on our website, www.ujjivansfb.in 25
Slide 29: Serving Customers Through Multiple Channels
SERVING CUSTOMERS THROUGH MULTIPLE CHANNELS ● Web-based, can be accessed from any system ● 523 biometric enabled ATMs including 61 ACRs* ● Access Management - Single sign in for all accounts, Easy access to multiple relationships ● Customer alerts for each incorrect PIN entry & Green with one app PI
Slide 30: Well Diversified Pan India Presence
WELL DIVERSIFIED PAN INDIA PRESENCE; ADDED 32 NEW BRANCHES DURING THE QUARTER • 25 states and UTs (169 URCs) Jun’23 Gross Loan Book • 661 Banking Outlets (BO) • 285 districts TN 15.3% • 523 ATMs# KA 13.4% • 5k+ Electronic Collection Retail 1 CH:2 WB 12.0% Points (ECRP) 16 MH 9.0% 4 GJ 7.9% 37 DL:11
Slide 31: Expanding Liability Customer Base
EXPANDING LIABILITY CUSTOMER BASE Customer Base Growth Customer Base – Basis of Branch Classification Asset Only Asset & Liability Liability Only 9% 76.9 75.5 73.0 69.4 37% 24% 66.0 34.4 31.4 32.2 30.1 27.4 30% Urban Semi-urban Metro Rural *Semi-Urban branches largely cater to rural customers 37.7 3
Slide 32: Comprehensive Suite of Products & Services
COMPREHENSIVE SUITE OF PRODUCTS & SERVICES Micro, Small & Medium Micro-Banking Enterprise Loans Affordable Housing Loans Financial Institutions Group Others • Group Loans Loan • Individual Loans • Construction and Purchase • Top up Loans • Term loan to NBFCs, HFCs • Two-wheeler loans • Secured Enter
Slide 33: 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 34: Strong Independent Board (2/2)
STRONG INDEPENDENT BOARD (2/2) Name Education Experience A global leader with a track record spanning 30+ years having worked in India, London and Qualified FCCA (UK), ACMA (UK), Bahrain. He brings a strong business background and having worked with top Business Leaders in Ravichandran Venkataraman
Slide 35: 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 36: Annexures
Annexures 33
Slide 37: Awards & Accolades
AWARDS & ACCOLADES ACEF Global Customer Engagement Recognised as India’s Best Companies To Content Marketing Summit- Asia Awards Work For with rank of 45 Best Use of Experiential Content Gold for Word of Mouth Marketing Creative Recognised as India’s Best Workplaces in Best Use of Omni-Channel Conte
Slide 38: Shareholding Pattern – Jun'23
SHAREHOLDING PATTERN – JUN’23 Raised ₹ 475 Cr via fresh equity issuance in Sep’22; complying with Minimum Public Shareholding requirement Promoter* MF Insurance Companies Resident Individuals/HUF Foreign investors Alternative Investment Fund Others 2.2% 3.9% 1.7% 13.8% 3.2% 1.7% 73.7% *Promoter is U
Slide 39: Social Services - Programs
SOCIAL SERVICES - PROGRAMS 01 02 03 Financial Literacy CSR ESG • Diksha + • Community • Chillar Bank Development Environmental, Social & • FLP - URC • Livelihood Governance . • FLP – MSE • Disaster Relief • FLP Beyond Ujjivan 36
Slide 40: Financial Literacy Program (Diksha+ & Chillar Bank)
FINANCIAL LITERACY PROGRAM (DIKSHA + & CHILLAR BANK) Enrolment Certification A 26,359 Diksha+ customers. D 90% of the customers were certified 11,635 Chillar Bank Cust+ child 98% of the Parents & Children attended Leads Conversions 46% Diksha+ Product Leads 33% Diksha+ Product Conversion B E 12% Chi
Slide 41: Financial Literacy Program (FLC & Pragati)
FINANCIAL LITERACY PROGRAM (FLC & PRAGATI) 4603 Customers and community people across 131 branches have attended Financial Literacy Camp FLC for URC Branch “Pragati” for IL Customers 120 customers across 8 branches from Assam has been participated in pilot “Pragati” Financial Literacy Program 38
Slide 42: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY PROJECT SWACHH NEIGHBORHOOD About 650+ employees & volunteers participated in the Swachh Neighbourhood drive across 26 branches. Employees have been associated with the NGO partner – E-Vidyaloka who would be teaching the children of Govt. Schools & participated in the
Slide 43: Corporate Social Responsibility – Disaster Relief Activity
CORPORATE SOCIAL RESPONSIBILITY DISASTER REFLIEF ACTIVITY 40
Slide 44: ESG Framework - Six Pillars
CORPORATE SOCIAL RESPONSIBILITY ESG FRAMEWORK - ‘SIX’ PILLARS Human Empowering Capital Communities Responsible Effective Finance 2 5 Governance ESG FRAMEWORK Sustainable Customer Operations Centricity Transparency & Disclosure Stakeholder Engagement Digital Transformation To provide financial servic
Slide 45: Focus on Retail Deposit Franchise
FOCUS ON RETAIL DEPOSIT FRANCHISE Customer acquisition • Total deposits grew 45% Y-o-Y to ₹ 26,660 Cr Accounts Nos in ‘000 Retail branch banking Others 333.5 335.5 341.1 • Retail TD grew 71% Y-o-Y 320.2 303.0 • CASA deposits grew 27% Y-o-Y; 24.6% of total 245.5 265.1 272.4 287.7 243.1 deposit as of
Slide 46: Increasing Digital Transactions (1/2)
INCREASING DIGITAL TRANSACTIONS (1/2) Increasing Digital Transactions* UPI Transactions 100 17 19 20 Nos in lakhs Nos in lakhs 90 16 18 Cash Transactions 80 14 16 86% 13 900 Digital Transactions 70 14 Digital Transaction % 60 12 85.00% 82% 786 93 50 10 741 73 76 40 8 800 79% 30 57 63 6 688 81% 80.00
Slide 47: 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) 24.8 20.0 lakhs) 23.9 25 10 9.6 10 Cards Cards 9.2 21.8 Transaction @ Transaction 8.3 18.0 9 9
Slide 48: Thank You
THANK YOU For Investor Queries: Mr. Deepak Khetan +91 7045792752 deepak.khetan@ujjivan.com 45
Ujjivan Small Finance Bank — Q1 FY24 Earnings Presentation on 6ix