Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Q1 FY23 Earnings Presentation
54 slides from Ujjivan Small Finance Bank's earnings presentation, July 2022
Slide 1: Q1 FY23 Presentation
Q1 FY23 PRESENTATION July 2022
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
Slide 3: Contents
CONTENTS Performance Highlights Business Overview Financials Ujjivan – Building a Mass Market Bank 3
Slide 4: Performance Highlights
Performance Highlights 4
Slide 5: Business Turnaround; Back on Track
BUSINESS TURNAROUND; BACK ON TRACK Asset quality on 1 Business volumes improved; sustaining 2 continuous improving trend 3 Complete turnaround in profitability Our highest ever Q1 Disbursement Reduced Portfolio at Risk Operating profits rising… ₹ Crore 18.9% ₹ Crore NII 4,809 4,870 14.9% 600 4,326 5
Slide 6: Key Highlights
KEY HIGHLIGHTS Disbursements Strongest Q1 disbursement for Ujjivan; ₹ 4,326 Cr up 230% Y-o-Y* Collections Collection efficiency at ~99% in Jun’22; good traction on restructured/ NPA pool Liabilities Retail deposits up 65% Y-o-Y; CASA up 86% Y-o-Y |Total deposit at ₹ 18,449 Cr up 35% Y-o-Y Asset Qual
Slide 7: Key Highlights
KEY HIGHLIGHTS Gross Advances Disbursements CRAR PPOP PAT ₹ 19,409 cr ₹ 4,326 cr Mar’22: 20.0% ₹ 271 cr ₹ 203 cr Up 38% yoy Up 230% yoy Down 587 bps yoy Up 68% yoy Up yoy Jun’21: ₹14,037 cr Jun’21: ₹ 1,311 cr Jun’21: 25.9% Q1-FY22: ₹ 161 cr Q1-FY22: ₹ (233) cr Total Deposits Retail Deposits GNPA NII
Slide 8: Strengthening Retail Liability Franchise
STRENGTHENING RETAIL LIABILITY FRANCHISE Customer Acquisition Picking Up • Total deposits grew 35% Y-o-Y to ₹ 18,449 Cr Accounts Nos in ‘000 Retail branch banking Others • Retail deposits grew 65% Y-o-Y; contributing to 320.2 267.2 58% of total deposits in Jun’22 vs 48% in Jun’21 213.2 176.7 245.5 1
Slide 9: Assets Update - Microbanking
ASSETS UPDATE - MICROBANKING Collections ▪ Collection remains strong across regions/ states with Jun’22 sustaining ~99.5%+ ▪ Focused approach towards different buckets; restricting flow to higher buckets; collection from stressed pool ▪ Collections aided by strong dedicated collection team, analytic
Slide 10: Assets Update – Other Assets
ASSETS UPDATE – OTHER ASSETS Collections ▪ Healthy collections across regions/ states with Jun’22 reaching 94% vs. 96% in Mar’22 ▪ Focused approach towards different buckets; restricting flow to higher buckets; collection from stressed pool ▪ Collections aided by strong dedicated collection team, an
Slide 11: Successfully driving digital journey
Successfully driving digital journey 11
Slide 12: Digital End-to-End Through the Value Chain
DIGITAL END-TO-END THROUGH THE VALUE CHAIN • Smart Automated • Tie-ups & Partnerships : Messaging to guide client platform play to cross at all points of sell via Ujjivan onboarding journey Onboarding Cross Sell 1 2 3 4 Prospecting Servicing • Advanced Data • Seamless payments to people Modelling- L
Slide 13: Key Growth Strategies (1/3)
KEY GROWTH STRATEGIES (1/3) COMPREHENSIVE & STRONG DISTRIBUTION & RELEVANT PRODUCTS 01 04 COLLECTION NETWORK FOCUS ON DIGITAL CONTINUE FOCUS ON IMPROVING BANKING AND ANALYTICS 02 05 FINANCIAL & DIGITAL INCLUSION BUILD A STABLE & WIDEN REVENUE STREAMS; GRANULAR DEPOSIT BASE 03 06 FOCUS ON COST 13
Slide 14: Key Growth Strategies (2/3)
KEY GROWTH STRATEGIES (2/3) 01 COMPREHENSIVE 02 FOCUS ON DIGITAL 03 BUILD A STABLE & RELEVANT BANKING AND & GRANULAR PRODUCTS ANALYTICS DEPOSIT BASE ● Relationship Banking to increase ● User-friendly digital interface to ● Improve share of CASA, recurring and penetration / share of customer wallet e
Slide 15: Key Growth Strategies (3/3)
KEY GROWTH STRATEGIES (3/3) STRONG 05 CONTINUE FOCUS ON 04 06 WIDEN REVENUE DISTRIBUTION & IMPROVING STREAMS; FOCUS COLLECTION FINANCIAL & DIGITAL ON COST NETWORK INCLUSION ● Use right combination of physical and ● Focus on the un-served and ● Leverage banking infrastructure to digital channels and
Slide 16: Increasing Digital Transactions (1/2)
INCREASING DIGITAL TRANSACTIONS (1/2) Increasing Digital Transactions* UPI Transactions 6,000 1,114 1,254 1,007 1,250 Nos in lakhs Cash Transactions Digital Transactions 5,000 883 771 1,050 545 4,000 850 4,978 5,740 4,235 3,000 650 484 3,319 2,403 2,000 450 1,000 250 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22
Slide 17: Increasing Digital Transactions (2/2)
INCREASING DIGITAL TRANSACTIONS (2/2) Digital penetration among customers continues to show a healthy increase POS Transactions Registered Customer (in lakhs) Transacting Customers (in lakhs) 235 250 230 232 20 17.9 7.8 196 16.4 200 14.5 6.1 15 13.3 151 12.1 5.4 150 4.7 4.1 10 7.6 100 15.7 15.4 14.9
Slide 18: Collections and asset quality parameters
Collections and asset quality parameters 18
Slide 19: Healthy Collections Leading to Improved Asset Quality
HEALTHY COLLECTIONS LEADING TO IMPROVED ASSET QUALITY Collection % (against month due) Collection Efficiency % (incl Additional collections) 116% Cashless collections 112% 112% 111% 111% 111% 109% 107% 107% 107% 109% 105% 20% 101% 19% 96% 18% 17% 98% 100% 98% 99% 99% 16% 95% 95% 97% 97% 94% 83% 93%
Slide 20: Collection Efficiency (1/2)
COLLECTION EFFICIENCY (1/2) ₹ Crore Jan’22 Feb’22 Mar’22 Collection Additional Collection Additional Collection Additional Verticals Due Collection Due Collection Due Collection % Collection % Collection % Collection MicroBanking 869.9 844.5 97% 94.9 906.9 889.1 98% 68.1 936.7 944.6 101% 85.7 MSE 25
Slide 21: Collection Efficiency (2/2)
COLLECTION EFFICIENCY (2/2) ₹ Crore Apr’22 May’22 Jun’22 Collection Additional Collection Additional Collection Additional Verticals Due Collection Due Collection Due Collection % Collection % Collection % Collection MicroBanking 939.3 928.9 99% 76.3 958.4 957.3 100% 79.0 975.1 971.1 100% 81.5 MSE 2
Slide 22: Significant Reduction in Restructured Book
SIGNIFICANT REDUCTION IN RESTRUCTURED BOOK Restructured Book ₹ crores RF 1.0 RF 2.0 Total MicroBanking 188 361 549 Affordable Housing 13 23 36 MSE 11 62 73 Loan Book 212 445 657 PAR 185 232 417 GNPA 179 188 366 Provisions 177 207 384 Collection efficiency % - - 84% ▪ 59% provision on outstanding Res
Slide 23: Focused Towards Improving Asset Quality
FOCUSED TOWARDS IMPROVING ASSET QUALITY Portfolio at Risk (bucket wise) Significant reduction in stress book GNPA & NNPA PAR 1-30 DPD GNPA+Restructured Book GNPA 30.8% PAR 31-60 DPD 32.1% PAR+Restructured Book NNPA 11.8% PAR 61-90 DPD 25.2% 9.8% 9.8% PAR 90 DPD 18.4% 7.1% 11.7% 3.3% 5.9% 9.8% 19.2%
Slide 24: Business Overview
Business Overview 24
Slide 25: Well Diversified Pan India Presence
WELL DIVERSIFIED PAN INDIA PRESENCE • 24 states and UTs (144 URCs) Gross Advances (Jun’22) • 575 Banking Outlets (BO) TN 15.6% • 248 districts KA 14.1% • 492 ATMs WB 1 CH:1 12.2% 16 MH 9.4% 4 GJ 8.4% 36 DL:8 BR 6.8% 18 UP 5.7% 26 31 1 HR 5.4% 37 RJ 4.2% 8 44 14 83 ND 3.6% 11 OR 2.5% 4 PB 2.5% 19 JH
Slide 26: Expanding Liability Customer Base
EXPANDING LIABILITY CUSTOMER BASE Customer Base Growth Customer Base – Basis of Branch Classification Asset Only Asset & Liability Liability Only 58.2 59.7 62.0 64.8 66.0 8% 37% 19.6 25% 22.5 24.5 26.9 27.4 30% Urban Semi-urban Metro Rural *Semi-Urban branches largely cater to rural customers 35.3 3
Slide 27: Gross Advances and Disbursement Trend
GROSS ADVANCES AND DISBURSEMENT TREND Gross Advances (₹ in crore) Total Disbursements (₹ in crore) 19,409 4,809 4,870 16,463 18,162 4,326 14,037 14,514 3,122 1,311 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Microfinance Loan Disbursement (No. of Loans) Portfolio Break
Slide 28: Diversifying Asset Book
DIVERSIFYING ASSET BOOK Gross Advances – Segment wise (₹ in crore) % Gross Growth Growth Product Advances Y-o-Y Q-o-Q GL IL A&AL MSE AH FIG Others* 25,000 50% Group Loans 57.5% 41.9% 8.6% 19,409 Micro Individual Loans 10.5% 31.5% 7.6% 45% 20,000 18,162 502 872 517 Agri & Allied loans 0.8% -17.8% -6.
Slide 29: Disbursement & Average Ticket Size
DISBURSEMENT & AVERAGE TICKET SIZE Product wise Disbursement (₹ in crore) Yield (%) – Segment wise GL IL A&AL MSE AH FIG Others^ MB Overall MSE AH 21% 20% 1,311 4,870 4,326 154 120 18% 18% 18% 89 120 150 304 288 195 312 254 32 17 16% 14% 14% 438 527 13% 112 106 13% 13% 13% 13 138 Q1-FY22 Q4-FY22 Q1-
Slide 30: Liability: Healthy Traction in Retail Franchise
LIABILITY: HEALTHY TRACTION IN RETAIL FRANCHISE Total liabilities profile (₹ in crore) Deposits break-up (₹ in crore) Refinance Deposits Others Total 20,392 Institutional TD Retail TD CASA Certificate of Deposits 20,056 18,292 18,449 688 888 344 15,814 756 13,673 4,993 5,155 329 386 2,773 18,292 18,
Slide 31: Well-Diversified Deposit Mix
WELL-DIVERSIFIED DEPOSIT MIX 31
Slide 32: Financial Overview
Financial Overview 32
Slide 33: Financial Overview
FINANCIAL OVERVIEW NII (₹ in crore) & NIM* Cost to Income Ratio & Operating Expenses/ Average Assets (%) 700 12.0% 10.0% 9.6% 100% 7.9% 7.7% 9.0% 600 9.1% 10.0% 90% 7.5% 7.1% 8.0% 8.0% 8.1% 5.9% 80% 7.0% 500 8.0% 70% 6.0% 400 60% 5.0% 6.0% 50% 300 544 600 84% 4.0% 74% 40% 454 4.0% 65% 66% 61% 384 39
Slide 34: Income Statement
INCOME STATEMENT Particulars (₹ in crore) Q1-FY23 Q1-FY22 YoY Growth Q4-FY22 QoQ Growth Interest Earned 905 642 41% 818 11% Other Income 95 73 30% 103 (7)% Total Income 1,000 715 40% 921 9% Interest Expended 306 257 19% 274 11% Personnel Expenses 224 166 35% 228 (2)% Operating Expenses 200 131 53% 2
Slide 35: Total Income - Breakup
TOTAL INCOME - BREAKUP Particulars (₹ in crore) Q1-FY23 Q4-FY22 Q1-FY22 Interest on loan 818 759 586 Int. on investments 81 59 56 Securitization Income 6 - - Total Interest Earned 905 818 642 Processing Fees 55 62 15 PSLC Income 9 0 25 Treasury Income (1) 0 13 Insurance Income 8 10 3 Misc. Income* 2
Slide 36: Balance Sheet
BALANCE SHEET Particulars (₹ in crore) Jun-22 Mar-22 Jun-21 CAPITAL AND LIABILITIES Capital 1,928 1,928 1,928 Employees Stock Options Outstanding 44 42 46 Reserves and Surplus 1,035 832 1,013 Deposits 18,449 18,292 13,673 Borrowings 1,943 1,764 2,141 Other Liabilities and Provisions 836 746 764 TOTA
Slide 37: Healthy Capital Adequacy
HEALTHY CAPITAL ADEQUACY (₹ in Crore) Jun’21 Sep’21 Dec’21 Mar’22 Jun’22 Credit Risk Weighted Assets 10,393 10,483 11,963 12,879 12,956 Tier I Capital 2,546 2,174 2,114 2,279 2,423 Tier II Capital* 143 152 170 166 172 Total Capital 2,689 2,326 2,284 2,446 2,595 CRAR 25.88% 22.19% 19.09% 18.99% 20.03
Slide 38: Ujjivan – Building a Mass Market Bank
Ujjivan – Building a Mass Market Bank 38
Slide 39: Well Placed to Gain from Evolving Country Demographics
WELL PLACED TO GAIN FROM EVOLVING COUNTRY DEMOGRAPHICS Bank’s Enterprise Bank’s 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
Slide 40: Comprehensive Suite of Products & Services
COMPREHENSIVE SUITE OF PRODUCTS & SERVICES Micro and Small Enterprise Micro-Banking Affordable Housing Loans Financial Institutions Group Others Loans • Group Loans • Secured Enterprise and Loan • Individual Loans Business Loan • Term loan to NBFCs and • Construction and Purchase • Top up Loans - GL
Slide 41: Building Stable and Granular Liability Base
BUILDING STABLE AND GRANULAR LIABILITY BASE Dominate branch Advanced business Traders, Retailers and MSE catchment net banking Encourage user adoption for Salaried digital channels Digital + Branch led Payment solutions, Youth transactions Fee Based Products, CMS Life Events Based Banking Target Sol
Slide 42: Other Income – Diversifying Revenue Streams
OTHER INCOME – DIVERSIFYING REVENUE STREAMS Third Party Products PSLC Income ₹ 8 crore in Q1FY23 ₹ 9 crore in Q1FY23 ● Focussed approach to maximise PSLC income by way to automated tagging and better Current line of products – to be ramped-up timing over medium-term ● Insurance: Life, General, Healt
Slide 43: Serving Customers Through Multiple Channels
SERVING CUSTOMERS THROUGH MULTIPLE CHANNELS ● 492 ATMs including 54 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 ● High volume bulk upload facility Personal & ● Empowering customers to block/unblock
Slide 44: Strong Independent Board
STRONG INDEPENDENT BOARD Name Education Experience Ittira Davis International banker with 40+ years of banking experience having worked extensively in the Middle East and Europe. Was PGDM, Indian Institute of Managing Director and CEO previously associated with Europe Arab Bank, Citibank in India an
Slide 45: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Name & Designation Prior association Education Ittira Davis • MBA, IIM Ahmedabad UFSL, Europe Arab Bank, Arab Bank, Citi Bank, Bank of America MD & Chief Executive Officer • B.Com, St. Joseph College of Commerce, Bangalore Carol Furtado • B.Sc, Bangalore University UFSL,
Slide 46: 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 47: Annexures
Annexures 47
Slide 48: Organization Structure
ORGANIZATION STRUCTURE Board of Directors Audit /Risk Committee of the Board MD and CEO Ittira Davis Chief Chief Chief Chief Chief Credit Head of Chief Chief Compliance Company Business Head Treasury Head HR Financial Operating Vigilance Officer Internal Audit Risk Officer Officer Secretary Officer
Slide 49: Awards & Accolades
AWARDS & ACCOLADES BFSI Technology Excellence Awards CX Excellence Awards 2022: 2022 Best Customer Engagement strategy Best Security Initiatives Banking IBA – Banking Technology Award 2021 Mother Teresa Award: For corporate Best IT Risk & Cyber Security citizen of the year For 2021. Initiatives (amo
Slide 50: Shareholding Pattern
SHAREHOLDING PATTERN Shareholding Pattern (based on holding) as on 30th Jun, 2022 0.5% 0.8% 0.9% Promoter* 14.4% Resident Individuals/HUF Foreign investors 83.3% Alternative Investment Fund Others *Promoter is Ujjivan Financial Services Ltd which is a Core Investment Company and listed on NSE/ BSE 5
Slide 51: Ujjivan: Sustainable & Inclusive Growth Philosophy
UJJIVAN: SUSTAINABLE & INCLUSIVE GROWTH PHILOSOPHY Our CSR Approach We constantly strive to ensure strong corporate culture which emphasizes on integrating CSR values with business objectives. We work with communities in navigating the unprecedented challenges primarily focused on healthcare, disast
Slide 52: Highlights-Q1
HIGHLIGHTS-Q1 Under “skilling and livelihood generation program” as on Q1 70 candidates have completed the training and 50 are presently undergoing training. A total of 200 candidates will be trained. As on Q1, a total of 40 candidates have been successfully placed through the training programs by o
Slide 53: Highlights-Q1
HIGHLIGHTS-Q1 States and UTs Covered Total community Women undergoing Plastic Compactor Total candidates members benefitted training installed undergoing training 10 5,29,470 50 1 103 Beneficiaries to be Total Trained Candidates Healthcare facilities Total Placed Candidates Schools Renovated trained
Slide 54: Thank You
THANK YOU For Investor Queries: Mr. Deepak Khetan +91 7045792752 deepak.khetan@ujjivan.com
Ujjivan Small Finance Bank — Q1 FY23 Earnings Presentation on 6ix