Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Q4 FY2021 Earnings Presentation
50 slides from Ujjivan Small Finance Bank's earnings presentation, May 2021
Slide 1: Q4 FY21 Presentation
Q4 FY21 PRESENTATION MAY 2021 Business Today - KPMG IBA – 16th Annual Banking Jury Recognition Award Inclusive Finance India Ranked 3rd in India’s Awarded Best Bank and Fintech Jury Technology Award 2021 (SFB for Excellence in Award 2020: SFB for Best Companies ‘Best Microfinance Award 2020 in innov
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 Business Overview Financials Ujjivan – Building a Mass Market Bank 3
Slide 4: Q4-FY21 – Key Highlights
Q4-FY21 – Key Highlights Bounce back in growth with highest ever disbursements – ₹ 4,274 Cr, up 96% Q-o-Q; 31% Y-o-Y | Mar’21 disbursement 2.2x Y-o-Y Improved collections:96% of customers have started paying post end of moratorium Healthy customer acquisition in Q4 with 3.15 lac new customers | Reta
Slide 5: Performance Highlights
UJJIVAN Performance Highlights UJJIVAN SMALL FINANCE BANK 5 Build a Better Life
Slide 6: Key Highlights as on Mar'21
Key Highlights as on Mar’21 24 States/ UTs, 248 Districts 575 branches1, 491 ATMs2 Expanding Customer base 16,571 Employees vs 244 districts in Mar’20 vs 575 branches; 475 ATMs in Mar’20 vs 17,841 in Mar’20 59.2 lakh customers vs. 52.5 lakh in Mar’20 40.1 lakh borrowers vs. 43.5 lakh in Mar’20 CRAR
Slide 7: Q4 FY21 – Key Highlights
Q4 FY21 – Key Highlights Net Interest Income Pre-provision Operating Profit (PPoP) Profit after Tax ₹ Crore ₹ Crore ₹ Crore 136 467 191 368 159 73 Q4-FY20 Q4-FY21 Q4-FY20 Q4-FY21 Q4-FY20 Q4-FY21 Net Interest Margin ROA ROE 7.9% 2.7% 17.3% Vs. Vs. Vs. 11.2% 1.6% 9.3% Q4-FY20 Q4-FY20 Q4-FY20 Note: Num
Slide 8: FY21 – Key Highlights
FY21 – Key Highlights Pre-provision Operating Profit Net Interest Income Net Interest Margin GNPA (PPoP) ₹ Crore ₹ Crore 809 1,634 1,729 9.5% 637 7.1% Vs. Vs. 10.8% 1.0% FY20 FY21 FY20 FY20 FY21 Mar’20 PAT ROA ROE NNPA ₹ Crore 350 0.04% 0.3% 2.9% Vs. Vs. Vs. 8 2.2% 13.9% 0.2% FY20 FY21 FY20 FY20 Mar
Slide 9: Liabilities – Healthy CASA growth, strong customer acquisition
Liabilities – Healthy CASA growth, strong customer acquisition • We continue to focus on building granular and stable Retail Deposits share increasing rapidly CASA: 31% Q-o-Q growth deposit base ₹ Crore ₹ Crore SA CA • Total deposits grew 22% Y-o-Y to ₹ 13,136 Cr; CASA at 5,563 6,242 2,699 21% of de
Slide 10: MicroBanking: Strong bounce back in asset business (1/3)
Strong bounce back in asset business (1/3) • Collections have sustained momentum • 94% in Mar’21 consistent with 94% in Dec’20 • 99.5%+ collection for loans disbursed in FY21 as of Mar’21 • Disbursement • Highest ever disbursements: ₹ 3,317 Cr up 18% Y-o-Y – with pick up in economic activities • Mar
Slide 11: Affordable Housing: Strong bounce back in asset business (2/3)
Strong bounce back in asset business (2/3) • Collection efficiency – 96% in Mar’21 (94% in Dec’20) Affordable Housing • Best quarter ever in terms of volume disbursement; crossed all previous pre-Covid benchmarks with an overall Ujjivan SFB affordable housing loan book crossing a milestone of ₹ 2000
Slide 12: Personal and FIG: Strong bounce back in asset business (3/3)
Strong bounce back in asset business (3/3) • Collection efficiency – 98% in Mar’21 (99% in Dec’20) • Disbursements – Cautiously scaling up; ₹ 240 Cr in Q4-FY21 vs ₹ 105 Cr in Q3-FY21 & ₹ 83 Cr in Q4-FY20 • FIG Focus on higher-rated entities for growth • New Products – Call Money for Cooperative bank
Slide 13: Third Party Products: Focus on retail products to drive fee income
Third Party Products: Focus on retail products to drive fee income Strong pick-up in retail premium Insurance ₹ Crore Credit Life Retail Product 116.8 • Addition of new guaranteed Life Insurance product and term plan in Mar’21 with ₹ 10 lakh 87.4 24.4 business - driving deeper customer penetration w
Slide 14: Digital initiatives enhancing business processes
Digital initiatives enhancing business processes ● Ujjivan offers 159 API’s which cover most of the banking transactions & requirements like customer on-boarding for liabilities & assets, service requests & all types of payment services ● 7 APIs listed on NPCI’s API Aggregator portal – nfinite.in (a
Slide 15: Increasing digital footprints (1/2)
Increasing digital footprints (1/2) *Increasing Digital Transactions (%) UPI Transactions Total transactions (in Lakhs) Digital transactions (%) ^Active 312,165 377,162 459,097 557,743 680,321 Customers ₹ Crore Digital transactions at 57% despite significant rise 2,109 3.5x in total volumes 92% 1,65
Slide 16: Increasing digital footprints (2/2)
Increasing digital footprints (2/2) Internet Banking active users Mobile Banking active users POS Transactions Nos in ‘000 Nos in ‘000 No. of Transaction (in box) Value in ₹ Crore 1.6x Y-o-Y 1.6x Y-o-Y 1.4x Y-o-Y 14.0 9.8 12.4 13.6 15.1 lakhs lakhs lakhs lakhs lakhs 78.0 71.9 774 66.2 685 59.4 603 2
Slide 17: Collections: 96% of customers have started paying post end of moratorium
Collections: 96% of customers have started paying post end of moratorium Collection % (including additional collections) Collection % (against same month dues) 109% Digital vs cash collections 104% 105% 103% 93% 93% 96% Cash Digital 89% 1% 76% 16% 13% 11% 92% 68% 89% 94% 92% 92% 94% 29% 59% 84% 88%
Slide 18: Improving collection efficiency (1/2)
Improving collection efficiency (1/2) ₹ Crore Nov’20 Dec’20 Jan’21 Additional Additional Additional Verticals Due Collection Collection % Due Collection Collection % Due Collection Collection % Collection Collection Collection MicroBanking 952.4 846.0 89% 52.0 897.0 843.9 94% 75.8 887.7 818.0 92% 97
Slide 19: Improving collection efficiency (2/2)
Improving collection efficiency (2/2) ₹ Crore Feb’21 Mar’21 Apr’21 Additional Additional Additional Verticals Due Collection Collection % Due Collection Collection % Due Collection Collection % Collection Collection Collection MicroBanking 894.7 822.4 92% 85.9 940.6 885.0 94% 105.0 934.0 825.5 88% 5
Slide 20: States with lower MicroBanking collections
States with lower MicroBanking collections Maharashtra West Bengal Assam Punjab Total MB Portfolio as on 806 1,542 304 346 Apr’21 (₹ cr) High Covid exposure Farm bill protest by Reasons for low Localized political political parties Lockdowns due to 2nd wave MFI Bill collections interventio
Slide 21: Update on restructured portfolio
Update on restructured portfolio MicroBanking • Restructuring implemented for 3.7 Lac accounts worth ₹ 852 Cr in Q3; no additional restructuring done in Q4 • Restructuring book stands at 6.8 % of the portfolio as of March’21 (8.5% in Dec’20) • The collection efficiency of our restructured book is co
Slide 22: Portfolio Quality – GNPA, NNPA and PCR
Portfolio Quality – GNPA, NNPA and PCR GNPA & NNPA Portfolio At Risk (PAR>0 %) NNPA Q4FY21 (segment wise) GNPA NNPA 6.4% 7.1% 16.8% 16.2% 14.9% 4.8%* 2.8% 2.2% 1.0% 1.0% 1.2%* 2.9% 2.0% 1.8% 2.1%* 0.2% 0.3%* 0.2% Mar'20 Jun'20 Sep'20 Dec'20 Mar'21 Mar'20 Jun'20 Sep'20 Dec'20 Mar'21 MB & RB Housing M
Slide 23: Business Overview
UJJIVAN Business Overview UJJIVAN SMALL FINANCE BANK 23 Build a Better Life
Slide 24: Well Diversified Pan India Presence
Well Diversified Pan India Presence Gross Advances (Mar’21) • 24 states and UTs (144 URCs) TN 15.8% • 575 Banking Outlets (BO) KA 14.4% • 248 districts WB 13.3% • 491 ATMs MH 9.7% 1 CH:1 GJ 8.3% 16 BR 6.1% 4 36 DL:8 HR 4.8% UP 4.4% 26 18 RJ 4.2% 31 37 1 DL 3.0% 8 OR 2.7% 44 14 83 11 PB 2.4% 4 AS 2.3
Slide 25: Expanding liability customer base
Expanding liability customer base Customer Base Growth Customer Base – Basis of Branch Classification Asset Only Asset & Liability Liability Only 56.6 59.2 54.4 54.7 55.3 19.1 8% 10.9 11.8 14.0 16.3 24% 37% 36.2 36.2 35.8 35.7 36.7 31%* 7.3 6.7 5.5 4.5 3.4 Metropolitan Semi-Urban Urban Rural Mar.-20
Slide 26: Gross advances and disbursement trend
Gross advances and disbursement trend Gross Advances (₹ in Crore) Total Disbursements (₹ in Crore) 13,221 15,140 14,153 14,366 13,890 13,638 8,397 4,274 3,254 Mar.-20 Jun-20 Sep-20 Dec-20 Mar-21 Q4-FY20 Q4-FY21 FY20 FY21 Microfinance Loan Disbursement (No. of Loans) Portfolio Breakup Unsecured Secur
Slide 27: Gross advances breakup
Gross advances breakup Gross Advances– Segment wise (₹ in Crore) Product % Gross Advances Growth Y-o-Y Growth Q-o-Q Group Loans Micro Individual Loans Agri & Allied Loans MSE Affordable Housing FIG Group Loans 59% (4%) 7% Others* Micro Individual Loans 11% 17% 17% 14,153 13,638 15,140 Agri & Allied
Slide 28: Disbursement & average ticket size
Disbursement & average ticket size Product wise Disbursement (₹ in Crore) Yield** (%) – Segment wise Group Loans Micro Individual Loans Agri & Allied Loans MicroBanking MSE Affordable Housing Overall MSE Affordable Housing FIG 22% Others^ 13,221 20% 220 20% 19% 17% 543 8,397 16% 15% 16% 4,274 265 14
Slide 29: Liability: Retail franchise showing healthy traction
Liability : Retail franchise showing healthy traction Total liabilities profile (₹ in Crore) Deposits break-up (₹ in Crore) Refinance Deposits Others Certificate of Deposits Institutional TD Retail TD CASA 13,136 14,734 14,983 16,382 11,617 10,780 2,699 810 250 138 2,055 1,459 3,997 3,432 3,874 10,7
Slide 30: Well-diversified deposit mix
Well-diversified deposit mix ^TASC- Trust, Association, Societies & Clubs 30
Slide 31: Healthy capital adequacy
Healthy capital adequacy (₹ in Crore) Mar’20 Jun’20 Sep’20 Dec’20 Mar’21 Credit Risk Weighted Assets 10,775 11,032 10,543 10,342 11,420 Tier I Capital 3,018 3,072 3,168 2,681 2,863 Tier II Capital* 87 93 99 103 157 Total Capital 3,105 3,164 3,268 2,785 3,020 CRAR 28.8% 28.7% 30.99% 26.93% 26.44% Tie
Slide 32: Financial Overview
UJJIVAN Financial Overview UJJIVAN SMALL FINANCE BANK 32 Build a Better Life
Slide 33: Financial Overview
Financial Overview NII (₹ in Crore) & NIM Cost to Income Ratio & Operating Expenses/ Average Assets (%) Operating Exp/ 7.8% 6.9% 6.6% 8.2% 6.3% Net Interest Income Net Interest Margin Avg Assets 11.2% 10.8% 9.7% 9.5% 67% 67% 7.9% 65% 62% 60% 467 432 368 1,634 1,729 Q4-FY20 Q3-FY21 Q4-FY21 FY20 FY21
Slide 34: Income Statement
Income Statement Particulars (₹ in Crore) Q4-FY21 Q4-FY20 YoY Growth Q3-FY21 QoQ Growth FY21 FY20 YoY Growth Interest Earned 618 737 (16)% 688 (10)% 2806 2,704 4% Other Income 117 72 63% 100 17% 311 322 (3)% Total Income 735 810 (9)% 789 (7)% 3117 3,026 3% Interest Expended 250 271 (8)% 256 (2)% 107
Slide 35: Total Income - Breakup
Total Income - Breakup Particulars (₹ in Crore) Q4-FY21 Q3-FY21 Q4-FY20 FY21 FY20 Interest on loan 564 638 698 2,600 2,551 Int. on investments 53 51 39 206 146 Securitization Inc. 0 0 0 0 6 Total Interest Earned 618 688 737 2,806 2,704 Processing Fees 54 28 41 106 167 PSLC Income 29 5 (2) 58 45 Trad
Slide 36: Balance Sheet
Balance Sheet Particulars (₹ in Crore) Mar-21 Dec-20 Mar-20 CAPITAL AND LIABILITIES Capital 1,928 1,928 1,928 Employees Stock Options Outstanding 44 41 21 Reserves and Surplus 1,247 1,110 1,238 Deposits 13,136 11,617 10,780 Borrowings 3,247 3,366 3,953 Other Liabilities and Provisions 778 1,354 491
Slide 37: Ujjivan – Building a Mass Market Bank
Ujjivan – Building a Mass Market Bank 37
Slide 38: 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 Upper Mid
Slide 39: Comprehensive suite of Banking Products & Services
Comprehensive suite of Banking Products & Services Micro and Small Enterprise Micro-Banking Affordable Housing Loans Vehicle Loans Personal Loans Financial Institutions Group Loans Loan • Group Loans • Secured Enterprise and • Two wheeler loan • Loan to salaried customers • Individual Loans Business
Slide 40: 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 41: Other Income – diversifying revenue streams
Other Income – diversifying revenue streams Third Party Products PSLC Income ₹ 10 crore in Q4-FY21 | ₹ 20 crore in FY21 ₹ 29 crore in Q4-FY21 | ₹ 58 crore in FY21 ● Focussed approach to maximise PSLC income by way to Current line of products – to be ramped-up over automated tagging and better timing
Slide 42: Serving customers through multiple delivery channels
Serving customers through multiple delivery channels ● 491 ATMs including 53 ACR* machines ● Web-based, can be accessed from any system ● Customer alerts for each incorrect PIN entry & Green PIN facility 24/7 for OIN change Personal & ● High volume bulk upload facility ● Empowering customers to bloc
Slide 43: Strong Independent Board
Strong Independent Board Name Education Experience Name Education Prior Experience Bachelor’s degree in Bachelor’s degree in Co-Founder of Dailyhunt, India’s largest local language technology (electrical Umang Bedi engineering from content & news discovery platform.Previously the Prior associations
Slide 44: Experienced Management Team
Experienced Management Team Name & Designation Prior association Education ● B. Tech, Kurukshetra University Nitin Chugh HDFC Bank, Standard Chartered Bank, HCL Hewlett Packard, Modi Xerox ● Professional Diploma in Marketing Management, All India Management MD & Chief Executive Officer Association S
Slide 45: 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 46: Annexure
uyJIVAn Annexure UJJIVAN SMALL FINANCE BANK Build a Better Life
Slide 47: Shareholding Pattern
Shareholding Pattern Shareholding Pattern (Based on Holding) as on 31st March, 2021 0.04% 2.42% 1.15% Promoter* 4.97% 8.11% 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 48: Ujjivan: Inclusive Growth Philosophy
Ujjivan: Inclusive Growth Philosophy CSR Approach Community Development The Bank constantly strives to ensure strong Work with CSR partner organisations for corporate culture which emphasizes on integrating promoting quality of life for marginalized CSR values with business objectives. The Bank’s co
Slide 49: Relief Activities
Relief Activities Beneficiary 13,60,103 public 12,200+ Municipality 3,57,000+ trained on 10,500 Healthcare 49,355 Police 200 Drivers & including customers and Panchayat workers COVID awareness Workers Personnel Conductors • Covid relief activity: - Distributed 3,40,000+ Masks, 41,000+ Soaps, 27,700+
Slide 50: Thank You!
uyyivan Thank You! UJJIVAN SMALL FINANCE BANK Build a Better Life
Ujjivan Small Finance Bank — Q4 FY2021 Earnings Presentation on 6ix