Au Small Finance Bank Limited · NSE:AUBANK
Au Small Finance Bank — Q2 FY21 Earnings Presentation
42 slides from Au Small Finance Bank's earnings presentation, October 2020
Slide 1: Investor Presentation 1H / Q2FY21
Investor Presentation 1H / Q2FY21 A SCHEDULED BANK I FORTUNE INDIA 500 COMPANY Digital-Led I Tech Enabled I Retail Focused I Customer Centric I Well Capitalized October 2020
Slide 2: Table of Contents
Table of Contents 1. 1H / Q2FY21 Performance Highlights 2. Building a Digital Bank 3. Branch Banking Overview 4. Assets Overview 5. Other Key Updates 2
Slide 3: 1H / Q2FY21 Performance Highlights
1. 1H / Q2FY21 Performance Highlights 3
Slide 4: 1H / Q2FY21 Key Highlights
1H / Q2FY21 Key Highlights Operating Environment Customer confidence, business continuity, and activity levels have considerably improved Rural sentiment is buoyed by above average monsoon, record Kharif sowing and various government schemes Overall visibility on growth has improved significan
Slide 5: 1H / Q2FY21 Key Highlights
1H / Q2FY21 Key Highlights Branch Banking – Building a sustainable granular franchise Bank witnessed significant improvement in both quality of deposit accretion and engagement levels Retail deposits (CASA + Retail TD) now at 54% of deposits vs 45%/41% in Q1FY21/Q2FY20 Deposit growth – Bank us
Slide 6: 1H / Q2FY21 Key Highlights
1H / Q2FY21 Key Highlights Digital Banking – Imbibing Tech in everything we do QR ecosystem - Deployed 10,000 merchant QR Codes in 100 days* – to boost CA acquisition, analytics-based lending Video Banking – Video KYC, SA and FD A/c opening modules live - 100+ SA and 30+ FD A/c opened on pilot b
Slide 7: 1H / Q2FY21 Key Highlights
1H / Q2FY21 Key Highlights Treasury Updates ₹ Crore 7.5% For FY20 – 7.3% Avg. Cost of funds For FY20 – 7.7% 6.0% 6.1% 7.8% Incremental Funds Raised 10,067 7.2% Incremental 7.0% 5,661 3,973 Cost of Funds Q2FY20 Q1FY21 Q2FY21 Q2FY20 Q1FY21 Q2FY21 As on 30th September’20, the bank had adequate liquid
Slide 8: 1H / Q2FY21 Key Financial Highlights
1H / Q2FY21 Key Financial Highlights 12 States and 2 UTs 697 Touchpoints 18.1 lakh Customers 16,755 employees Loan Assets Under Total B/S Assets Disbursements1 Deposits3 CASA Ratio4 Management2 ₹ Crore ₹ Crore ₹ Crore ₹ Crore 35,826 44,014 4,781 30,590 22,149 26,980 21% 27,876 Vs. 3,409 27,876 16% (
Slide 9: 1H / Q2FY21 Key Financial Highlights
1H / Q2FY21 Key Financial Highlights Total Income Net Interest Income PAT Net Worth ₹ Crore ₹ Crore ₹ Crore ₹ Crore 2,908 Income (pre- 172 2,353 tax) from Sale 523 4,916 77 2,736 of part stake Profit (after in Aavas 1,076 362 149 tax) from Sale 2,275 Financiers 847 71 of part stake 3,516 Ltd. in Aav
Slide 10: Profitability Trends
Profitability Trends *Including Profit from Sale of part stake in Aavas Financiers Ltd. RoA1 (%) RoE2 (%) 2.9%* 27.1%* 2.1%* 2.4%* 21.7%* 22.5%* 1.9%* 17.9%* 2.0% 1.6% 1.8% 1.7% 1.7% 20.0% 15.8% 16.5% 17.5% 16.1% Q2FY20 Q1FY21 Q2FY21 1HFY20 1HFY21 Q2FY20 Q1FY21 Q2FY21 1HFY20 1HFY21 ROA / ROE – Compo
Slide 11: Asset Quality
Asset Quality Credit Cost - Net Impact on P/L Q2FY20 Q1FY21 Q2FY21 (All Figures in ₹ Crore) Unaudited Unaudited Unaudited Repossession Loss 7 2 5 POS Loss 2 1 3 Write off 0 0 0 Less: Bad Debt Recovery -6 0 -2 Net Credit Loss 4 2 6 Net Credit Loss (as % of Avg. Total Assets) 0.04% 0.02% 0.06% A refle
Slide 12: Profit & Loss Statement – Operating PAT grows by 28% YoY
Profit & Loss Statement – Operating PAT grows by 28% YoY (All Figures in ₹ Crore) 1H FY21 1H FY20 Y-o-Y Q2FY21 Q2FY20 Y-o-Y Q1FY21 Q-o-Q Unaudited Unaudited Unaudited Unaudited Unaudited Income Interest Earned 2,397 1,991 20% 1,212 1,033 17% 1,184 2% Interest Expended 1,320 1,144 15% 652 582 12% 668
Slide 13: Balance Sheet – Total Assets grew 23% YoY
Balance Sheet – Total Assets grew 23% YoY (All Figures in ₹ Crore) Sep 30 , 2020 Sep 30 , 2019 Y-o-Y Jun 30 , 2020 Q-o-Q Unaudited Unaudited Unaudited Liabilities Capital 307 293 4% 306 0% Money received against Share Warrants - 175 - - - Employees stock options outstanding 52 52 -1% 49 5% Reserves
Slide 14: Details of Other Income and Outstanding Provisions
Details of Other Income and Outstanding Provisions Other Income (All Figures in ₹ Crore) Q2FY20 Q1FY21 Q2FY21 Break-up of Other Income Unaudited Unaudited Unaudited Loan Assets Processing & Other fees 80 14 54 General Banking & Deposits related fees 15 13 23 Cross Sell, Distribution related fees & o
Slide 15: 2. Building a Digital Bank
2. Building a Digital Bank ett set as 15 :
Slide 16: Vision Framework – Digital Bank
Vision Framework – Digital Bank Disruptive Disruptive Innovation: Partner with Think tanks and institutions to lead industry Innovation level innovation Start Up Fintechs Incremental Innovation Think Tanks o Build Sand Box for piloting and quicker go-to-market of new products and technologies built
Slide 17: Strengthening Digital Banking Channels
Strengthening Digital Banking Channels Upcoming – New Age Internet & Mobile Banking and Video Banking Credit Card New banking platforms (Internet and Mobile) with more Building end-to-end video banking solutions for customer than 130 unique features live for employees Acquisition for Deposits /P
Slide 18: Digitizing internal business processes
Digitizing internal business processes Branch Banking Lending Assisted digital lending journey for Two Wheelers, Paperless procedures for Branch Banking products Wheels, SBL, Home Loan and Corporate Lending Across products paperless acquisition – CA (8K+), products SA (62K+), FD(18K+) and RD (
Slide 19: Making AU Primary Bank of the customer through digital
Making AU Primary Bank of the customer through digital Ease of Onboarding Tab banking (CA and SA), Video KYC, Whatsapp Banking, AU Abhi Access to all payment Live on AePS, UPI, QR, FasTag, NEFT, RTGS, IMPS and Bill Payments (BBPS) channels Best in Class Platforms Completely new mobile and internet b
Slide 20: Payment Snapshot
Payment Snapshot UPI UPI QR AePS 97% # 339 1,618 5,502* Transaction merchants 1,475 2,905 Amount (Cr.) 114.4 2.9 11.2 8.5 81.6 Q1 Q2 Unique Customers (lacs) 0.8 112 63 0.2 2.7 8.3 24.4 4.0 3.8 Q1 Q2 July Aug Sep Q1 Q2 # transactions (lacs) Count ('000) Amount (INR Cr.) Count (lacs) Amount (INR Cr.)
Slide 21: Increasing Digital Traction – Transactions, Banking & Visibility
Increasing Digital Traction – Transactions, Banking & Visibility # Customers 11,500 14,000 8541 Corporate Internet Banking Increasing user base with transactions increasing 2705 rapidly 82 175 Q1 Q2 Count ('000) Amount (INR Cr.) 64% 56% Bank Website 2.7 4.5 24 15 Strong growth in organic traffic thr
Slide 22: Increasing Digital Traction – Transactions, Banking & Visibility
The image part with relationship ID rId2 was not found in the file. Increasing Digital Traction – Transactions, Banking & Visibility 59 10,000 20,000 9,000 18,000 35 8,000 10,50,000 8,35,546 16,000 24 7,000 5,270 Digital Channel Usage trends 8,50,000 14,000 6,000 12,000 5,46,486 5,000 3,115 6,50,000
Slide 23: 3. Branch Banking Overview
3. Branch Banking Overview 23
Slide 24: Deposits Journey – Moving to a sustainable granular franchise
Deposits Journey – Moving to a sustainable granular franchise Key turning points Core Principles of our Deposit Strategy Our Performance Deposit as Retail Key events a % of Deposits as external a % of total liabilities deposit April’17 (Bank Launch) N/A N/A Sept’18 (NBFC Crisis + 21% 35% Branch vint
Slide 25: Deposits Journey – Moving to a sustainable granular franchise
Deposits Journey – Moving to a sustainable granular franchise Improvement across key Levers Increased focus on Quality of sourcing – RM and Sr. RM based approach Quality Focused verticals (TASC, NR, Enterprise Salary, Current accounts, Panchayat accounts) Sourcing Profile-based approach (UYC) – reti
Slide 26: Branch Banking - Snapshot
Branch Banking - Snapshot Growing Deposit Franchise Average Monthly Balance in ₹ Crore in ₹ Crore 24,831 25,346 34% of the Term 24,062 24,300 Deposits are non- 20,606 callable [Bulk TD – 20,039 63% non-callable] 20,008 19,376 20,962 Growth 20,396 17,275 Y-o-Y Q-o-Q 16,849 Total Deposits* 23% 2% Savi
Slide 27: Branch Banking – Deposit profile
Branch Banking – Deposit profile 1 1 Area-wise Deposit Distribution Diversified Deposit Build-up across States 2% 1% CA SA TD MAHARASHTRA Urban Market Banking 67% 57% 77% 4% Core Market Banking 33% 43% 23% 5% RAJASTHAN 3% DELHI NCR Break-up of total deposits 6% 29% PUNJAB GUJARAT 8% HIMACHAL PRADESH
Slide 28: 3. Assets Overview
3. Assets Overview ett set as 28 i
Slide 29: Disbursements and AUM Trends
Disbursements and AUM Trends in ₹ Crore Disbursements AUM 15.5% 14.7% 14.6% 14.4% 13.1% 11.2% 4,781 30,590 30,036 27,876 3,409 1,181 Q2FY20 Q1FY21* Q2FY21** Q2FY20 Q1FY21 Q2FY21 Disbursements Yield AUM Yield *Includes ₹ 246 Cr disbursed under TLTRO and ₹ 23 Cr disbursed under ECLGS Scheme **Includes
Slide 30: Disbursements and AUM mix – Retail AUM maintained at 84%
Disbursements and AUM mix – Retail AUM maintained at 84% Q2FY21 AUM as on Category (Amount in ₹ Cr) % of total % of total Disbursements 30th Sep 2020 Wheels 1,025 30% 12,326 40% New 587 7,835 Used & CoW 438 4,491 SBL-MSME 1,043 31% 11,887 39% Home Loan 163 5% 707 2% GL+CD+PL 33 1% 230 1% OD against
Slide 31: Loan Assets Cuts
Loan Assets Cuts Overall Loan AUM Distribution of Retail Assets As on 30th September 2020 1% Rajasthan Madhya Pradesh 5% Urban 5% Maharashtra Markets 8% Core 44% Gujarat 42% Markets 11% Delhi 56% Punjab 12% CG + Haryana + HP + Goa 16% Other States Core Markets are smaller centers in rural/semi-urban
Slide 32: Collection Efficiency - Returning to normalcy
Collection Efficiency - Returning to normalcy Product Q2FY21 Q1FY21 Q2FY20 SBL 105% 72% 98% Wheels 89% 62% 99% NBFC 105% 86% 100% Business Banking 105% 82% 84% REG 109% 49% 87% Agri 119% 84% 85% Home Loan 112% 83% 99% SME 106% 51% 88% Personal Loans 88% 65% 97% Gold Loan 114% 84% 96% Consumer Durabl
Slide 33: Customer Activation – Returning to normalcy
Customer Activation – Returning to normalcy % of Gross Advances September-2020 Total Gross Product Advances Full Part (₹ Cr) SBL 11,248 82% 5% Wheels 9,549 72% 5% NBFC 1,492 100% 0% Business Banking 1,210 94% 2% REG 727 86% 9% Agri 745 94% 2% Home Loan 707 92% 4% SME 526 78% 8% Personal Loans 165 81
Slide 34: Granular understanding on the Complete Moratorium book
Granular understanding on the Complete Moratorium book 1% 1% 1% 5% Wheels SBL Agri SME 50% Business Banking 42% REG PL and Others 5.5% of Gross Advances • Bank is tracking this portfolio closely and 2.5% of borrowers (by Gross Adv.) from this portfolio have paid at least 1 EMI in Sep/Oct FY21 • This
Slide 35: 5. Other Key Updates
5. Other Key Updates ett set as 35 :
Slide 36: Well entrenched contiguous distribution franchise
Well entrenched contiguous distribution franchise 12 States and 697 Touchpoints 332 ATMs No. of Touch points 2 UTs Urban Market Core Market Total Presence# Presence# 686 Branches1, 11 BCs 156 541 697 Break up of branches States & UT Total Branches Jammu & Kashmir Rajasthan 305 Karnataka Himachal Pra
Slide 37: Other Key Updates
Other Key Updates HR Updates The bank has been awarded as a Great Place To Work (GPTW) in October 2020 There were no layoffs, no salary cuts and the bank paid the performance bonus for FY20 Bank took a slew of measures to help the employees during the past six months such as offering exclusive
Slide 38: Experienced Board of Directors
Experienced Board of Directors Mr. Raj Vikash Verma Mr. V G Kannan Mr. Krishan Kant Rathi Chairman and Independent Director Independent Director Independent Director 37+ years of experience 38+ years of experience in Banking 34+ years of experience Industry Masters in Economics, MBA (FMS), CAIIB MBA
Slide 39: Marquee Shareholders Base – As on 30th Sep 2020
Marquee Shareholders Base – As on 30th Sep 2020 Shareholding Break –up Key Shareholders (Holding 1%+) Holding on 30-Sep-20 Promoter & Promoter Group 29.0% Foreign Institutions Promoter & Promoter Group - Wasatch 4.998% (FC, FPI, FII) & NRI (Non-repatriable), Domestic, 29.0% Temasek Holdings 4.7% 40.
Slide 40: THANK YOU
THANK YOU For Investor queries contact (details in QR Code): Prince Tiwari | Aseem Pant | Ayush Rungta Email: investorrelations@aubank.in 40
Slide 41: Abbreviations
Abbreviations ADC Alternate Delivery Channels NPA Non Performing Assets AFS Available for Sale NSE National Stock Exchange ALM Asset Liability Management OPEX Operating Expenses AUM Asset Under Management P/L Profit & Loss Statement BSBDA Basic Savings Bank Deposit A/C PAT Profit After Tax BSE Bomba
Slide 42: Disclaimer
Disclaimer This presentation has been prepared by AU 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 the Ban
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