Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Q4 FY20 Earnings Presentation
42 slides from Ujjivan Small Finance Bank's earnings presentation, May 2020
Slide 1: Q4 FY20 Presentation
Q4 FY20 Presentation May 2020
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 Ujjivan – Building a Mass Market Bank Business Overview Financials 3
Slide 4: Q4FY20 – Key Highlights
Q4FY20 – Key Highlights Net Profit at ₹ 73 Cr; RoA / RoE at 1.6%/ 9.3% NII at ₹ 466 Cr up by 46% Y-o-Y with NIM at 11.2% Strong growth in Gross Advances* – up 28% Y-o-Y to ₹ 14,153 Cr Deposit base building: Total deposit at ₹ 10,780 Cr up 46% Y-o-Y; retail deposits up 72% Y-o-Y; CASA up 86% Y-o-Y 28
Slide 5: Performance Highlights
Epa Performance Highlights UJJIVAN SMALL FINANCE BANK 5 Build a Better Life
Slide 6: Key Highlights as on March'20
Key Highlights as on March’20 24 States/ UTs, 244 Districts 575 branches1, 475 ATMs2 Expanding Customer base 17,841 Employees vs 223 districts in Mar’19 vs 524 branches; 385 ATMs in Mar’19 vs 14,752 in Mar’19 52.5 lakh customers vs. 46.1 lakh in Mar’19 43.5 lakh borrowers vs. 40.2 lakh in Mar’19 CRA
Slide 7: FY20 - Key Highlights
FY20 - Key Highlights Total Income Net Interest Income Net Interest Margin GNPA ₹ Crore 3,026 ₹ Crore 1,634 2,038 1,106 10.8% 1.0% Vs. Vs. 10.9% 0.9% FY-19 FY-20 FY-19 FY-20 FY-19 Mar’19 PAT ROA ROE NNPA ₹ Crore 350 199 2.2% 13.9% 0.2% Vs. Vs. Vs. FY-19 FY-20 1.7% 11.5% 0.3% FY-19 FY-19 Mar’19 7
Slide 8: Q4FY20 - Key Highlights
Q4FY20 - Key Highlights Total Income Net Interest Income Net Interest Margin ₹ Crore ₹ Crore 604 810 320 466 11.2% Vs. Q4FY-19 Q4FY-20 10.8% Q4FY-19 Q4FY-20 Q4FY-19 ROA ROE PAT ₹ Crore 64 73 1.6% 9.3% Vs. Vs. 2.0% 13.3% Q4FY-19 Q4FY-20 Q4FY-19 Q4FY-19 8
Slide 9: Stellar IPO
Stellar IPO UJJIVAN SMALL FINANCE BANK IPO • Listing was within the stipulated time frame under licensing norm and thus helped in complying with RBI requirements • ₹ 1,045 crore* was raised leading to significant boost to Capital Adequacy • IPO price was ₹ 37/- per share valuing the Bank at 2.1x (po
Slide 10: Very Strong Fundamentals
Very Strong Fundamentals Balance Sheet – Well-capitalized and high liquidity Focus on portfolio quality • Capital Adequacy Ratio at 28.8% with Tier-I being 28.0% • NNPA at 0.2%; PAR at 2% • LCR at 261% for March’20 • COVID-19 related provision of ₹ 70 cr – 0.5% of • Balance sheet is well funded and
Slide 11: Portfolio Quality – GNPA, NNPA and PAR
Portfolio Quality – GNPA, NNPA and PAR GNPA and NNPA Portfolio At Risk (PAR>0 %) NNPA GNPA 0.9% 0.9% 0.9% 1.0% 0.8% 2.1% 1.8% 2.0% 1.6% 1.6% 0.3% 0.3% 0.4% 0.3% 0.2% Mar'19 Jun'19 Sep'19 Dec'19 Mar'20 Mar'19 Jun'19 Sep'19 Dec'19 Mar'20 PAR, Provision (₹ in Crore) & Provision Coverage Ratio NNPA (%)
Slide 12: Geared-up for the New Business Ecosystem
Geared-up for the New Business Ecosystem • Limited human contact in loan processing • Repeat MicroBanking loans via. Phone, mobile app, ATM Investing to increase • Remodeling Housing/ MSE processes efficiency, & reach • Prioritizing video KYC program • Piloted Collection of EMIs through third party
Slide 13: Ujjivan – A Responsible Corporate Citizen
Ujjivan – A Responsible Corporate Citizen Pre-Lockdown Measures During/ Post-Lockdown Measures • Proactively kicked off Business Continuity Plan well before • Over 98% branches, ATMs, and all critical functions were operational nationwide lockdown begun with various safety measures, social distancin
Slide 14: Prioritized Employees and Customers
Prioritized Employees and Customers Employees • Awareness on COVID 19 was communicated to all employees through various modes including calls, whatsapp, emails, live streaming, survey platforms etc. • Daily employee connect to support our people at anytime under work from home policy for our Corpora
Slide 15: Awards & Recognitions
Awards & Recognitions Ranked 5th among ‘Asia’s Best Companies to Work Asia Money Best Bank Awards 2020: For 2020’ Won the award for ‘Best Microfinance Bank’ By Great Places to Work ‘ERM Strategy of the year’ for IBA Banking Technology developing a framework for Innovation Awards for 'The Best implem
Slide 16: Ujjivan – Building a Mass Market Bank
Ujjivan – Building a Mass Market Bank 16
Slide 17: 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 TASC* Uppe
Slide 18: Comprehensive suite of Banking Products & Services
Comprehensive suite of Banking Products & Services Micro and Small Affordable Housing Financial Micro-Banking Vehicle Loans Personal Loans Enterprise Loans Loans Institutions Group Loan • Group Loans • Secured • Construction and • Two wheeler loan • Loan to salaried • Term loan to • Individual Loans
Slide 19: 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 20: Other Income – diversifying revenue streams
Other Income – diversifying revenue streams Third Party Products PSLC Income ₹ 20 crore in FY20 ₹ 45 crore in FY20 ● 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 comp
Slide 21: Serving customers through multiple delivery channels
Serving customers through multiple delivery channels ● 475 ATMs including 52 Automated Cash Recycler ● Web-based, can be accessed from any system machines Personal & ● High volume bulk upload facility ● 300 ATM’s Re-enabled with biometrics; rest to be Business ● Customizable client centric approval
Slide 22: Increasing digital footprints
Increasing digital footprints *Digital Transactions increased over 2x to 35% in Q4FY20 from 17% in Q4FY19 UPI Transactions Bill Payments Business Net Banking Internet Banking ^Active Nos in ‘000 69,000 1,164 No. of Active 312,165 11,435 57,026 130 Customers Customers ₹ Crore ₹ Crore ₹ Crore 607 562
Slide 23: Well Diversified Pan India Presence
Well Diversified Pan India Presence (Mar-20) Gross Advances (Mar-20) • 24 states and UTs (144 URCs) TN 15.8% • 575 Banking Outlets (BO) KA 15.3% • 244 districts WB 13.8% • 475 ATMs MH 9.2% 1 CG:1 GJ 7.8% 16 BR 6.2% 4 36 DL:8 HR 4.9% RJ 4.0% 26 18 UP 3.7% 31 37 1 AS 2.8% 8 PB 2.8% 44 14 83 11 OR 2.6%
Slide 24: Focus on Customer Base Growth
Focus on Customer Base Growth Customer Base Growth – USFB Customer Base – Basis of Branch Classification Asset Only Asset & Liability Liability Only 51.0 52.5 49.4 46.1 47.2 9.0 7% 6.1 7.5 5.9 5.3 24% 21.5 23.6 27.2 37% 30.9 33.1 32%* 18.7 18.3 16.1 12.6 10.4 Metropolitan Semi-Urban Urban Rural Mar.
Slide 25: 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 26: Business Overview
Epa Business Overview UJJIVAN SMALL FINANCE BANK 26 Build a Better Life
Slide 27: Gross Advances and Disbursement Trend
Gross Advances and Disbursement Trend Gross Advances (₹ in Crore) Total Disbursements (₹ in Crore) Off-balance 426 455 84 NIL NIL sheet Portfolio 14,153 13,221 13,617 11,089 Gross 12,864 11,049 11,783 Advances Portfolio 3,728 3,254 Mar'-19 Jun-19 Sep-19 Dec-19 Mar-20 Q4-FY19 Q4-FY20 FY19 FY20 Microf
Slide 28: 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 65.8% 10.3% 1.2% Group Loans Micro Individual Loans Agri & Allied Loans Micro Individual Loans 10.2% 62.6% 13.5% MSE Affordable Housing FIG 167 Others 147 549 Agri & Allie
Slide 29: Disbursement & Average Ticket Size
Disbursement & Average Ticket Size Product wise Disbursement (₹ in Crore) Product Growth Y-o-Y Growth Q-o-Q Group Loans Micro Individual Loans Agri & Allied Loans Group Loans (19%) (4%) MSE Affordable Housing FIG Micro Individual Loans 37% 2% 220 Others Agri & Allied Loans 253% 5% 543 MicroBanking (
Slide 30: Stable Liability Profile
Stable Liability Profile Total liabilities profile (₹ in Crore) Deposits break-up (₹ in Crore) Refinance Deposits Others Certificate of Deposits Institutional TD Retail TD CASA 10,656 10,780 11,545 13,755 14,734 1,237 1,459 810 7,379 397 200 3,441 3,432 784 7,379 10,656 1955 10,780 4,978 5,042 3,658
Slide 31: Well-diversified Deposit Mix
Well-diversified Deposit Mix Region-wise deposit mix Branch classification wise deposit mix Segment wise deposit mix 4% Individuals 1% 4% 15% 13% East Metropolitan 9% Banks 29% West Urban Corporate 20% 48% 48% North Semi Urban 38% Govt. 35% South Rural 36% TASC^ Total Deposits (excluding CDs) as on
Slide 32: Adequately Capitalized
Adequately Capitalized (₹ in Crore) Mar’19 Jun’19 Sep’19 Dec’19 Mar’20 Credit Risk Weighted Assets 8,990 9,434 10,026 10,442 10,775 Tier I Capital 1,653 1,733 1,821 2,873 3,018 Tier II Capital 50 59 68 84 87 Total Capital 1,703 1,793 1,889 2,958 3,105 CRAR 18.9% 19.0% 18.8% 28.3% 28.8% Tier I CRAR 1
Slide 33: Financial Overview
Epa Financial Overview UJJIVAN SMALL FINANCE BANK 33 Build a Better Life
Slide 34: Financial Overview
Financial Overview NII (₹ in Crore) & NIM Cost to Income Ratio & Operating Expenses/ Average Assets(%) Operating Expenses/ Net Interest Income Net Interest Margin Average Assets 9.7% 8.5% 7.8% 8.6% 8.2% 10.8% 10.8% 10.9% 11.2% 10.9% 78.1% 76.5% 71.3% 67.4% 64.6% 320 427 466 1,107 1,634 Q4-FY19 Q3-FY
Slide 35: Income Statement
Income Statement ₹ in Crore Particulars Q4-FY20 Q4-FY19 YoY Growth Q3-FY20 QoQ Growth FY20 FY19 YoY Growth Interest Earned 737 536 38% 707 4% 2,704 1,832 48% Other Income 72 66 9% 75 (4)% 322 206 56% Total Income 810 602 34% 782 4% 3,026 2,038 49% Interest Expended 271 216 (25)% 280 3% 1,070 725 (48
Slide 36: Total Income - Breakup
Total Income - Breakup Total Income (₹ in cr) Q4-FY20 Q3-FY20 Q4-FY19 Interest on loan 698 667 502 Int. on investments 39 39 29 Securitization Inc. - 1 4 Total Interest Earned 737 707 536 Processing Fees 41 44 38 PSLC Income (2) 1 3 Bad Debts Recovery 7 8 10 Insurance Income 6 5 6 Misc. Income 19 17
Slide 37: Balance Sheet
Balance Sheet ₹ in Crore Particulars Mar-20 Dec-19 Mar-19 CAPITAL AND LIABILITIES Capital 1,928 1,928 1,640 Employees Stock Options Outstanding 21 13 - Reserves and Surplus 1,238 1,167 180 Deposits 10,780 10,656 7,379 Borrowings 3,953 3,099 4,166 Other Liabilities and Provisions 491 497 377 TOTAL 18
Slide 38: Shareholding Pattern
Shareholding Pattern Shareholding Pattern (Based on Holding) as on 31st March, 2020 Promoter* 3.25% 0.79% 1.43% 5.62% 5.59% Resident Individuals/HUF Foreign Investors Alternative Investment Funds 83.32% Mutual Funds Others *Promoter is Ujjivan Financial Services Ltd which is a Core Investment Compan
Slide 39: Experienced Management Team
Experienced Management Team Top Leadership Name & Designation Prior association Education Sanjay Kao Lipton India, Dunia Finance, Citibank, and ABN ● B.Tech from BHU Head - Human Resources AMRO Bank ● PGDM from IIM, Calcutta Carol Furtado ANZ Grindlays Bank, Bank Muscat and ● B.Sc from Bangalore Uni
Slide 40: Strong Independent Board
Strong Independent Board Name Education Experience Name Education Prior Experience Bachelor’s degree in technology MA from JNU, M.Sc in (electrical engineering) from Prior associations with banks Biswamohan management from Arthur D. Previously served as an executive Kurukshetra University and a incl
Slide 41: Ujjivan: Inclusive Growth Philosophy
Ujjivan: Inclusive Growth Philosophy Financial literacy Community Development • Partnered with Parinaam Foundation for financial • Partnered with Parinaam Foundation under literacy programs like “Diksha”, “Chillar Bank”, “Chhote Kadam” promoting quality of life for “Paison ki ABCD” marginalized comm
Slide 42: Thank You!
Epa Thank You! UJJIVAN SMALL FINANCE BANK Build a Better Life
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