Suryoday Small Finance Bank Limited · NSE:SURYODAY
Suryoday Small Finance Bank — Q2 & H1 FY25 Earnings Presentation
39 slides from Suryoday Small Finance Bank's earnings presentation, Oct 24, 2024
Slide 1: Exchange intimation letter on investor presentation
October 24, 2024 Ref.: SSFB/CS/85/2024-25 To, National Stock Exchange of India Limited BSE Limited Listing Department The Corporate Relations Department Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Fort, Bandra (East), Mumbai —400 051 Mumbai — 400 001
Slide 2: Investor Presentation Q2 & H1-FY25
Investor Presentation Q2 & H1-FY25 October 2024
Slide 3: Table of Content
TABLE OF CONTENT 01 Business Update 02 Company Overview 03 Asset Portfolio 04 Liability Portfolio 05 Financials & Key Ratios 06 Way Forward 07 CSR Initiatives Investor Presentation 2
Slide 4: Safe Harbour
SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Suryoday Small Finance Bank (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 5: Business Update Q2 & H1 FY25
01 Business Update Q2 & H1 FY25 4
Slide 6: Performance Highlights – H1 FY25
PERFORMANCE HIGHLIGHTS – H1 FY25 Figures in ( ) represents H1FY24 Gross Advances Disbursements Asset Mix Collection Efficiency (one EMI adjusted) ₹ 9,360* Cr ₹ 3,421 Cr IF : RA – 55.9% : 44.1% (+35.2% YoY) (+22.7% YoY) (59.3% : 40.7%) 93.9% (96.0%) *Includes IBPC Deposits Retail# : Bulk Deposit CASA
Slide 7: Key Metrics – Q2 & H1 FY25
KEY METRICS – Q2 & H1 FY25 Gross Advances (INR Cr)* Disbursements (INR Cr) Deposits (INR Cr) 3.6% Q-o-Q 35.2% Y-o-Y 3.3% Q-o-Q 22.7% Y-o-Y 8.8% Q-o-Q 38.6% Y-o-Y 9,037 9,360 9,360 6,921 6,921 3,796 4,131 4,131 2,815 2,815 3,421 8,137 8,851 8,851 2,787 6,388 6,388 5,241 5,229 5,229 1,740 1,682 4,106
Slide 8: Key Metrics – Q2 & H1 FY25
KEY METRICS – Q2 & H1 FY25 All numbers in ₹ crores, unless otherwise indicated Yield (%) Cost of Funds (%) NIM (%) 44 bps Q-o-Q 45 bps Y-o-Y 3 bps Q-o-Q 41 bps Y-o-Y 32 bps Q-o-Q 14 bps Y-o-Y 20.1% 20.1% 19.6% 20.3% 19.8% 7.5% 7.6% 7.6% 7.2% 7.6% 9.4% 10.0% 9.7% 9.7% 9.8% Q2FY24 Q1FY25 Q2FY25 H1FY24
Slide 9: Company Overview
02 Company overview 8
Slide 10: Suryoday SFB – Value Proposition
SURYODAY SFB – VALUE PROPOSITION Seasoned management, backed by robust corporate governance Serving the aspiring middle class section of the society Vertical business heads spearheading the SSFB’s growth Currently serving ~3.24 Mn customers proposition. Visible transition in the portfolio quality mi
Slide 11: Key Milestones
KEY MILESTONES Suryoday 2.0 As on H1 FY25 AUM crosses INR 9,300* Cr Deposit crosses INR 8,800 Cr Vikas Loan portfolio crosses INR 2,800 Cr Customer base-3.24 Mn 2024 & Branch Network - 704 Beyond IPO & Year of Reset COVID Tailwinds Stabilized operations to pre-pandemic levels AUM crosses INR 5,000 C
Slide 12: Empowering Solutions: Beyond Micro Lending
EMPOWERING SOLUTIONS: BEYOND MICRO LENDING Asset Portfolio Liabilities Portfolio Retail Term & CASA Inclusive Finance Retail Assets Recurring Deposits (56%) (44%) JLG Vikas Loans Vehicle Bulk Deposits Digital FD Mortgage Others (46%) (54%) Financing Expanding Beyond Micro Lending Housing Loans CV FI
Slide 13: Strong Foothold: Covering 2/3rd of India
STRONG FOOTHOLD: COVERING 2/3RD OF INDIA Branch Distribution Particulars Q2FY25 Q2FY24 Asset focused outlets 390 350 CG:1 Liability focused outlets 120* 96* HR 3 Rural Centers 194 189 DL:6 Total 704 635 48 39 Note: *Includes Composite Branches Geographical Mix of the Branches 41 34 Outlets Asset Foc
Slide 14: Asset Portfolio
03 Asset Portfolio 13
Slide 15: Inclusive Finance: JLG Loans & Vikas Loans
INCLUSIVE FINANCE: JOINT LIABILITY GROUP LOANS & VIKAS LOANS Joint Liability Group loans offered to individuals in group. Graduating customers given Vikas Loans Vikas Loan Share after a period of 2 years post curation 54% Of IF AUM JLG is the feeder – Customer acquisition engine Eventually transitio
Slide 16: Inclusive Finance: JLG Loans & Vikas Loans
INCLUSIVE FINANCE: JOINT LIABILITY GROUP LOANS & VIKAS LOANS Product Description AUM* (INR Cr) Parameter JLG Vikas Loans 5,071 5,229 Customer Segment Urban/ Semi Urban Urban/ Semi Urban 3,743 3,386 2,679 2,800 2,944 213 Products Group Loans Individual Loans 1,232 29 Geography Tier 1&2 Tier 1&2 2,915
Slide 17: Comprehensive Mortgage Offerings
COMPREHENSIVE MORTGAGE OFFERINGS…. SSFB offers comprehensive mortgage AUM offerings - Housing & MSME Loans catering to Semi-prime and urban affordable customer segment Present Locations ₹1,800Cr + Business Strategy: Focus on retail & Disbursements secured MSME lending. Deepening portfolio in existin
Slide 18: Supporting Our Sustainable Growth Approach
.. SUPPORTING OUR SUSTAINABLE GROWTH APPROACH Product Description AUM (Rs. Cr) Micro Mortgages Housing Loans (Kushal Parameter LAP (Pragati Loans) Loans) 1,845 Customer Semi Prime / Urban Semi Prime / Urban Affordable / Semi Urban 1,588 Segment Affordable Affordable 308 235 Home Loans – Resale / Hom
Slide 19: Vehicle Financing – Monetizing on Large Opportunity
VEHICLE FINANCING – MONETIZING ON LARGE OPPORTUNITY SSFB is diversifying business through various products under Vehicle 1 Financing Portfolio – CV, TW, Used CV & Car loans Expanding in the rural space, catering the Tier 3 & Tier 4 locations Customers 2 and focusing on going more granular retail bas
Slide 20: Growing Consistently in the Last 3 Years
..GROWING CONSISTENLY IN THE LAST 3 YEARS Portfolio description AUM* (INR Cr) Parameter Commercial Vehicles Two Wheelers Customer Segment Urban / Semi Urban Urban / Semi Urban Products Used and New CVs New Two Wheelers 1,047 Geography Tier 2 & 3 Tier 1, 2 & 3 830 355 397 Distribution Hub & Spoke Dea
Slide 21: FIG & Others
FIG & OTHERS AUM (INR Cr) Portfolio description 1,239 1,161 Parameter FIG Others 260 928 313 Customer Segment NBFCs/ Corporates Retail/ MSME 655 240 457 979 275 Individual Lending/ Bill 848 Products Corporate Lending 688 Discounting 243 380 214 Distribution Corporates Digital FY21 FY22 FY23 FY24 H1
Slide 22: Asset Business Update – Q2 & H1 FY25
ASSET BUSINESS UPDATE – Q2 & H1 FY25 Micro Particulars (INR Cr) JLG VL HL LAP Vehicles FIG Partnership Others Total Mortgage Gross Advances – (₹ Cr)* 2,429 2,800 702 834 308 1,047 979 62 198 9,360 Disbursement – Q2 FY25 (₹ Cr) 513 429 44 111 48 200 281 - 56 1,682 Disbursement – H1 FY25 (₹ Cr) 1,131
Slide 23: Portfolio Performance
PORTFOLIO PERFORMANCE Overall – PAR 30+ IF – PAR 30+ Retail Assets – PAR 30+ 7.5% 6.6% 6.3% 6.2% 6.1% 5.0% 4.8% 4.9% 4.6% Sep-23 Jun-24 Sep-24 Sep-23 Jun-24 Sep-24 Sep-23 Jun-24 Sep-24 Figures may not add up due to rounding off Investor Presentation 22
Slide 24: GNPA Asset Quality & Credit Cost
GNPA ASSET QUALITY & CREDIT COST All numbers in ₹ crores, unless otherwise indicated GNPA Q1 FY25 to Q2 FY25 Movement GNPA H1 FY25 Movement 195 -146 -82 -15 -18 129 241 273 242 273 Q1FY25 New W-Off. RollBack/ Q2FY25 Opening New W-Off. RollBack/ Closing Recoveries Recoveries Provisions Q1 FY25 to Q2
Slide 25: Liability Portfolio
04 Liability Portfolio 24
Slide 26: Deposit Landscape
DEPOSIT LANDSCAPE Key Product Acquisition Customer Highlights Offerings Channels Profiling Deposits Traditional Deposit Smart Banking Outlets Aspiring Middle Class Products – CASA, TD Goal based saving products, Exclusive • Targeted business focus within radius of ₹ 8,851 Cr ~2kms offers, Easy-to-us
Slide 27: Deposit Update
DEPOSIT UPDATE Deposits Retail Deposit (Incl CASA) Average Ticket Size INR Cr 6,387 8,137 8,851 4% <50 k 80.2% 15% 78.9% % of Retail Deposit 77.6% 1,751 50 K to 5 Lakhs 1,719 30% 1,004 Retail TD 1,581 1,439 1,432 5 Lakhs to 50 CASA Lakhs 4,979 5,519 3,951 Bulk 39% 50 Lakh & above Sep-23 Jun-24 Sep-2
Slide 28: Funding Mix & Liquidity
FUNDING MIX & LIQUIDITY Balance Sheet Mix Capital Adequacy Ratio % (CRAR) 30.3% 2.3% 27.3% 1.6% 24.9% 16% 1.4% 4% 14% 28.0% 25.7% 23.5% 66% Sep-23 Jun-24 Sep-24 Deposits Shareholders Fund Other Liab Borrowings Tier 1 Tier 2 Total Figures may not add up due to rounding off Investor Presentation 27
Slide 29: Prudent Risk Management Practices
PRUDENT RISK MANAGEMENT PRACTICES Two-level credit feeders – analytics and on-field Extensive use of analytics to create curated customer base 1 intelligence - resulting in sharper credit underwriting On-field credit underwriting complements the pre- 2 approved base Digital BREs resulting in STP for
Slide 30: Financial & Key Ratios Q2 & H1 FY25
05 Financial & Key Ratios Q2 & H1 FY25 29
Slide 31: Financials – Balance Sheet
FINANCIALS – BALANCE SHEET Particulars (INR Cr) Q2 FY25 Q2 FY24 Y-o-Y Q1 FY25 Q-o-Q Capital and Liabilities Capital 106.2 106.2 0.1% 106.2 0.0% Reserves and Surplus 1,818.8 1,577.9 15.3% 1,772.1 2.6% Deposits 8,850.8 6,388.4 38.5% 8,137.3 8.8% Borrowings 2,178.5 2,479.9 -12.2% 2,340.5 -6.9% Other Li
Slide 32: Financials – P&L Account
FINANCIALS – P&L ACCOUNT Particulars (INR Cr) Q2 FY25 Q2 FY24 Y-o-Y Q1 FY25 Q-o-Q H1 FY25 H1 FY24 Y-o-Y Interest Earned 507.2 375.2 35.2% 488.1 3.9% 995.3 733.3 35.7% Interest Expended 207.2 154.2 34.4% 194.9 6.3% 402.1 287.6 39.8% Net Interest Income 300.0 221.0 35.7% 293.2 2.3% 593.2 445.8 33.1% O
Slide 33: Financials – Key Metrics
FINANCIALS – KEY METRICS Particulars (INR Cr) Unit Q2 FY25 Q2 FY24 Y-o-Y Q1 FY25 Q-o-Q H1 FY25 H1 FY24 Y-o-Y Gross Advances* ₹ Cr 9,360 6,921 35.2% 9,037 3.6% 9,360 6,921 35.2% Disbursement ₹ Cr 1,682 1,598 5.2% 1,740 -3.3% 3,421 2,787 22.7% Deposits ₹ Cr 8851 6387 38.6% 8137 8.8% 8,851 6,387 38.6%
Slide 34: Way Forward
06 Way Forward 33
Slide 35: FY25 Guidance
FY25 GUIDANCE The management endeavors to achieve the stated guidance. However, the Advances Growth Deposit Growth CASA Ratio macroeconomic scenario in microfinance 30% - 35% sector has impacted the collection 40% - 45% +20% efficiency, thereby increasing the credit costs during H1FY25. With key f
Slide 36: Way Forward
WAY FORWARD Rapid Expansion and Market Penetration Leveraging the IF Distribution Network to provide holistic banking services with Embracing Digital Transformation focus on distribution of social schemes Deliver digital product offerings in sync with the Drive small-ticket LAP disbursements Bank’s
Slide 37: CSR Initiatives
07 CSR Initiatives 36
Slide 38: Beyond Banking
BEYOND BANKING The CSR activities for the Bank are mostly undertaken by ‘Suryoday Foundation’. Currently 6 programs are under Responsibility towards environment implementation. A total of 29,674 beneficiaries have been covered in H1 FY25 across these programs Health Interventions Quality Education w
Slide 39: Glossary
GLOSSARY Terminology Definition Terminology Definition AUM Assets Under Management NNPA Net Non Performing Assets CASA Current Account Savings Account NPA Non Performing Assets CBS Core Banking System NTB New-To-Bank CGFMU Credit Guarantee Fund for Micro Units PAR Portfolio at Risk CTI Cost-To-Incom
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