Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Q2 FY24 Earnings Presentation
46 slides from Ujjivan Small Finance Bank's earnings presentation, Oct 27, 2023
Slide 1: Exchange intimation letter
USFB/CS/SE/2023-24/76 Date: October 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:
Slide 2: Press Release: Growing Bigger & Stronger Consistently
Press Release Growing Bigger & Stronger Consistently NII at ₹ 823 crore up 24% Y-o-Y; PAT at ₹ 328 crore up 11% Y-o-Y Disbursed ₹ 5,749 crore / ₹ 11,033 crore in Q2FY24/H1FY24; Gross loan book up 27% Y-o-Y Asset quality continues to be healthy with GNPA/NNPA at 2.2%/0.09% & PAR at 3.7%; Deposits at
Slide 3: CEO comments and merger update
Mr. Ittira Davis, MD & CEO, Ujjivan Small Finance Bank said, “Q2FY24 was yet another impressive quarter in terms of business performance. Business momentum continued its strong uptrend as seen in the previous quarters. Disbursements at ₹ 5,749 crore was strong registering a robust growth of 18% Y-o-
Slide 4: Q2 FY24 Investor Presentation
Q2 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 – Q2FY24 (1/2)
KEY HIGHLIGHTS – Q2FY24 (1/2) Gross Loan Book Total Deposits Retail TD*+ CASA ₹ 26,574 cr ₹ 29,139 cr ₹ 18,818 cr Up 27% yoy Up 43% yoy Up 44% yoy Sep'22: ₹20,938 cr Sep'22: ₹20,396 cr Sep'22: ₹13,045 cr GNPA/NNPA CRAR Employees 2.2%/0.09% 25.2% 21,040 Down 223 bps/Up 5 bps yoy Down 151 bps yoy Up 2
Slide 7: Key Highlights – Q2FY24/H1FY24 (2/2)
KEY HIGHLIGHTS – Q2FY24/ H1FY24 (2/2) Q2FY24 Vs Q2FY23 H1FY24 Vs H1FY23 NII ₹ 823 cr Up 24% Vs ₹ 663 cr ₹ 1,616 cr Up 28% Vs ₹ 1,263 cr NIM 8.8% Down 102 bps Vs 9.8% 9.0% Down 71 bps Vs 9.7% PPoP ₹ 483 cr Up 26% Vs ₹ 385 cr ₹ 941 cr Up 37% Vs ₹ 686 cr PAT ₹ 328 cr Up 11% Vs ₹ 294 cr ₹ 652 cr Up 31%
Slide 8: Liabilities: Driving Retail Deposit Base
Liabilities: Driving Retail Deposit Base 5
Slide 9: 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) CASA break-up (₹ in crore) Refinance Deposits Others Bulk TD Retail TD CASA CD SA CA 32,872 29,139 29,196 2,512 26,660 388 7,012 1,058 193 6,556 20,396 7,012 563 22,130 6,556 5,496 6
Slide 10: Well-Diversified Deposit Mix
WELL-DIVERSIFIED DEPOSIT MIX Deposits from individual continues to grow with our focus on building granular deposit base 7
Slide 11: Assets: Well-diversified growth with new customer acquisition
Assets: Well-diversified growth with new customer acquisition 8
Slide 12: Gross Loan Book and Disbursement Trend
GROSS LOAN BOOK AND DISBURSEMENT TREND Strong disbursements (₹ in crore) Consistent growth in Gross Loan Book (₹ in crore) Contribution from 29% 28% 27% 27% 27% Secured Book (%) 6,001 26,574 5,749 25,326 24,085 5,284 21,895 4,868 20,938 4,841 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Sep'22 Dec'22 Mar'23 J
Slide 13: 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 26,574 Micro Group Loans 57% 25% 3% 25,326 642 614 1,304 1,218 Individual Loans 15% 67% 12% 20,938 4,036 3,671 566 939 1,442 MSME 5% (22)% (4)% 1,508 3,0
Slide 14: Disbursement, Yield and Average Ticket Size
DISBURSEMENT, YIELD AND AVERAGE TICKET SIZE Product wise Disbursement (₹ in crore) Yield (%) – Segment wise MGL MGL+IL Overall MSME AH (Ex MLAP) IL 21.8% 22.0% MSME 11,0 20.9% AH* 33 5,749 19.1% 19.2% FIG 18.2% Others^ 936 5,284 520 9,19 5 613 13.9% 4,868 416 293 296 959 12.2% 12.5% 360 171 92 320 5
Slide 15: Sustained improvement in asset quality
Sustained improvement in asset quality 12
Slide 16: 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% 115% 115% 37% 112% 112% 111% 112% 111% 110% 111% 111% 110% 110% 31% 29% 26% 22% 100% 99% 100% 100% 99% 100% 100% 99% 99% 99% 99% 99% 99
Slide 17: Collection Efficiency
COLLECTION EFFICIENCY ₹ Crore Jul’23 Aug’23 Sep’23 Additional Additional Additional Verticals Due Collection % Due Collection % Due Collection % Collection Collection Collection MGL+IL 1,350.5 1,342.8* 99% 111.6 1,382.4 1,372.6* 99% 123.2 1,412.0 1,402.3* 99% 119.1 Affordable 49.9 48.4 97% 40.0 51.5
Slide 18: Sustained Collections Driving Better Asset Quality
SUSTAINED COLLECTIONS DRIVING BETTER ASSET QUALITY NPA & SMA have shrunk significantly YTD NPA Movement Table# GNPA NNPA 6.1% SMA PAR 4.9% 145 4.4% 3.8% 3.8% 3.7% 216 3.4% 2.6% 2.4% 2.2% 1.7% 1.5% 1.2% 1.5% 1.5% 116 0.04% 0.05% 0.04% 0.06% 0.09% Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 PAR 0 and GNPA (seg
Slide 19: Floating Provision; Cushioning P&L
FLOATING PROVISION; CUSHIONING P&L Std+NPA Provision Floating PCR% (₹ in cr) 11 0% 136 14 00 99% 99% 98% 98% 10 0% 100 12 00 96% 1,036 Total NPA 30 provision of ₹ 565 Crs 10 00 90 % 160 120 Floating 842 Provision of ₹250 Crs 747 831 715 800 150 701 80 % 120 120 120 600 PCR @96% excluding floating pr
Slide 20: Sustained Collections Driving Better Asset Quality (restructured book)
SUSTAINED COLLECTIONS DRIVING BETTER ASSET QUALITY Restructured Book Significant reduction in stress book ₹ crores RF 1.0 RF 2.0 Total 25.2% GNPA+RF Book Micro Banking (GL+IL) 52 23 76 PAR+RF Book Housing 7 15 23 18.4% MSME 5 42 47 19.2% Loan Book 65 81 146 14.5% 11.7% 9.2% PAR 59 62 120 9.7% 6.8% 5
Slide 21: Financial Overview
Financial Overview 18
Slide 22: Financial Overview
FINANCIAL OVERVIEW Cost to Income Ratio & Operating Pre-Provision Operating Profit & PPoP NII (₹ in crore) & NIM* Expenses/ Average Assets (%) (RoA) 9.8% 1,100 9.4% 9.1% 9.2% 100% 6.6% 6.0% 1,000 8.8% 10.0% 6.4% 7.0% 5.4% 5.4% 5.3% 6.2% 5.2% 90% 6.0% 6.1% 525 6.5% 80% 900 8.0% 70% 5.7% 6.0% 425 5.0%
Slide 23: Financial Overview
FINANCIAL OVERVIEW PAT (₹ in crore) & RoE EPS* Net worth & BVPS 450 40.6% 34.5% 2.50 6000 400 35.6% 29.7% 30.3% 29.8% 5000 28.0% 2.00 350 30.6% 4000 1.50 300 25.6% 4,771 4,539 3000 4,209 4,064 3,769 250 20.6% 1.66 1.00 310 324 328 1.59 1.50 1.53 1.68 2000 200 294 293 15.6% 0.50 1000 150 10.6% 0 - 10
Slide 24: Income Statement
INCOME STATEMENT Particulars (₹ in crore) Q2FY24 Q2FY23 YoY Growth Q1FY24 QoQ Growth Interest Earned 1,391 993 40% 1,287 8% Other Income 189 147 29% 177 6% Total Income 1,580 1,140 39% 1,464 8% Interest Expended 568 330 72% 494 15% Personnel Expenses 283 225 26% 275 3% Operating Expenses 245 200 23%
Slide 25: Total Income - Breakup
TOTAL INCOME - BREAKUP Particulars (₹ in crore) Q2FY24 Q2FY23 YoY Growth Q1FY24 QoQ Growth Interest on loan 1,210 895 35% 1,133 7% Int. on investments 177 88 100% 149 18% Securitization Income 4 10 (55)% 4 5% Total Interest Earned 1,391 993 40% 1,287 8% Processing Fees 73 62 18% 67 10% PSLC Income 0
Slide 26: Balance Sheet
BALANCE SHEET As at As at As at Particulars (₹ in crore) Sep 30, 2023 Jun 30, 2023 Sep 30, 2022 CAPITAL AND LIABILITIES Net worth 4,771 4,539 3,769 Capital 2,156 2,155 2,155 Employees Stock Options Outstanding 55 57 46 Reserves and Surplus 2,560 2,327 1,569 Deposits 29,139 26,660 20,396 Borrowings 3
Slide 27: Healthy Capital Adequacy
HEALTHY CAPITAL ADEQUACY (₹ in Crore) Sep’22 Dec’22 Mar’23 Jun’23 Sep’23 Credit Risk Weighted Assets 13,726 15,369 16,361 17,012 18,839 Tier I Capital 3,208 3,511 3,712 4,018 4,239 Tier II Capital* 457 488 511 522 506 Total Capital 3,665 3,999 4,223 4,541 4,745 CRAR 26.70% 26.02% 25.81% 26.69% 25.19
Slide 28: Guidance
GUIDANCE Asset Deposits Ratios FY24 Gross Loan Book Growth- >25% NIM: ~ 9.0% Deposit Growth: >30% Credit Cost: <100bps RoE: >22% FY25/ FY26 Retain our FY25/FY26 guidance on growth & profitability 25
Slide 29: Ujjivan – Platform for growth
Ujjivan – Platform for growth Please refer to Investor Meet Presentation for more details uploaded on our website, www.ujjivansfb.in 26
Slide 30: Serving Customers Through Multiple Channels
SERVING CUSTOMERS THROUGH MULTIPLE CHANNELS ● Web-based, can be accessed from any system ● 545 biometric enabled ATMs including 62 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 31: Well Diversified Pan India Presence
WELL DIVERSIFIED PAN INDIA PRESENCE; ADDED 39 NEW BRANCHES DURING THE QUARTER • 26 states and UTs (184 URCs) Sep’23 Gross Loan Book (%) • 700 Banking Outlets (BO) • 305 districts TN 14.6% • 545 ATMs# KA 13.3% • 5k+ Electronic Collection Retail WB 1 CH:2 12.2% Points (ECRP) 17 MH 9.0% 6 GJ 7.9% 39 DL
Slide 32: Expanding Customer Base
EXPANDING CUSTOMER BASE Customer Base Growth Customer Base – Basis of Branch Classification Asset Only Asset & Liability Liability Only In Lakhs 79.4 9% 76.9 75.5 73.0 69.4 37% 24% 33.4 34.4 31.4 32.2 30.1 30% Urban Semi-urban Metro Rural *Semi-Urban branches largely cater to rural customers 40.3 42
Slide 33: 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 • Home Improvem
Slide 34: Strong Independent Board (1/2)
STRONG INDEPENDENT BOARD (1/2) Name Education Experience Banavar Anantharamaiah Retired as Chairman and Managing Director of Andhra Bank after serving various Banks for about Prabhakar Commerce graduate, University of 37 years. Prior to that he served as the Executive Director of Bank of India for a
Slide 35: Strong Independent Board (2/2)
STRONG INDEPENDENT BOARD (2/2) Name Education Experience Career banker for nearly four decades with SBI as well as its associate banks. Handled varied Rajni Mishra M.Com (Gold Medallist), MS University, assignments and diverse portfolios, gained exposure in risk management, branch administration, In
Slide 36: 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 37: Annexures
Annexures 34
Slide 38: Awards & Accolades
AWARDS & ACCOLADES Pitch BFSI Marketing Awards ICC Emerging Asia Banking Most Effective Regional Campaign Awards Most Effective 360-degree Marketing Best Performance on Profitability Campaign Best Performance on Growth CSI Cyber security CSO 100 Awards Conference & Cyber Leaders for innovative, disr
Slide 39: Shareholding Pattern – Sep'23
SHAREHOLDING PATTERN – SEP’23 Promoter* MF Insurance Companies Resident Individuals/HUF Foreign investors Alternative Investment Fund Others 2.1% 3.5% 1.5% 16.5% 1.6% 1.1% 73.7% *Promoter is Ujjivan Financial Services Ltd, a Core Investment Company and listed on NSE/ BSE 36
Slide 40: Social Services - Programs
SOCIAL SERVICES - PROGRAMS 01 02 03 Financial Literacy CSR ESG Diksha+ Pro Community Development Chillar Bank Environmental, Social & Pragati Livelihood Governance . FLP - URC Disaster Relief FLP – MSE FLP Beyond Ujjivan 37
Slide 41: Financial Literacy Program (Diksha+ & Chillar Bank)
FINANCIAL LITERACY PROGRAM (DIKSHA + & CHILLAR BANK) Enrolment Certification 54,805 Customers trained in Diksha+ 90% Customers were certified 22,832 Parents & Children trained 98% of the Parents & Children attended through Chillar Bank Leads Conversions 42% Customers shown interest 32% Customers got
Slide 42: Financial Literacy Program (FLC & Pragati)
FINANCIAL LITERACY PROGRAM (FLC & PRAGATI) 9,462 Customers and community people across 151 branches have attended Financial Literacy Camp FLC for URC Branch “Pragati” for IL Customers 561 Customers across 8 branches from Assam had participated in pilot “Pragati” Financial Literacy Program 39
Slide 43: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY PROJECT SWACHH NEIGHBORHOOD About 1,200+ employees volunteered in the Swachh Neighbourhood drive across 34 branches. 25 employees engaged with CSR partners like proVISION Asia, Calcutta Social Project, Pi Jam & Maithree society and had direct interaction with the bene
Slide 44: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Livelihood Development Disaster Disaster Relief Relief Distributed 10 out of 60 Relief kit comprising of wheelchairs to the PWDs in Utensils and groceries association with proVISION distributed to 200 victims Asia of the fire incident @ Appa pada, Mumbai Livelihood tr
Slide 45: ESG
ESG Maiden DJSI* Mission statement re-defined to include sustainability assessment by FY’25 Launched Sustainability webpage New Policies Strategy & Roadmap till FY 2030 formulated being drafted ❖ OHS Policy & Reporting gaps being addressed – Maiden BRSR ❖ Human Rights published ❖ Vendor code of cond
Slide 46: Thank You
THANK YOU For Investor Queries: Mr. Deepak Khetan +91 7045792752 deepak.khetan@ujjivan.com
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