Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Q2 FY21 Earnings Presentation
48 slides from Ujjivan Small Finance Bank's earnings presentation, November 2020
Slide 1: Q2 FY21 Presentation
Semi-Finalist European Microfinance Award 2020 (Sole Indian Q2 FY21 Presentation representative) November 2020 Ranked 3rd in India’s Awarded ‘Best Best Companies Microfinance Bank’ by To Work For 2020 AsiaMoney
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: Q2FY21 – Key Highlights
Q2FY21 – Key Highlights Collections: 91% of customers have started paying post end of moratorium Q2FY21 Disbursements – 3x of Q1FY21 – ₹ 1,458 Cr – nearly half of pre-Covid levels NII at ₹ 470 Cr up by 21% Y-o-Y with NIM at 10.2% Pre-Provision Operating Profit at ₹ 232 Cr up by 64% Y-o-Y; Net Profit
Slide 5: Performance Highlights
UJJIVAN Performance Highlights UJJIVAN SMALL FINANCE BANK 5 Build a Better Life
Slide 6: Key Highlights as on September’20
Key Highlights as on September’20 24 States/ UTs, 244 Districts 575 branches1, 477 ATMs2 Expanding Customer base 17,018 Employees vs 232 districts in Sep’19 vs 552 branches3; 442 ATMs in Sep’19 vs 16,776 in Sep’19 55.3 lakh customers vs. 50.6 lakh in Sep’19 41.3 lakh borrowers vs. 43.3 lakh in Sep’1
Slide 7: Q2FY21 - Key Highlights
Q2FY21 - Key Highlights Pre-provision Operating Profit Net Interest Income Net Interest Margin GNPA (PPoP) ₹ Crore ₹ Crore * 388 470 10.2% 232 1.0% Vs. 141 Vs. 10.8% 0.9% Q2-FY20 Q2-FY21 Q2-FY20 Q2-FY20 Q2-FY21 Sep’19 PAT ROA ROE NNPA ₹ Crore * 93 96 2.0% 11.6% 0.1% Vs. Vs. Vs. Q2-FY20 Q2-FY21 2.4%
Slide 8: Liabilities – Strong build-up in retail franchise
Liabilities – Strong build-up in retail franchise • Total deposits grew 6% Y-o-Y to ₹ 10,743 Cr • We continue to focus on building granular Retail Deposits share increasing rapidly Customer acquisition ramping-up at branches and stable deposit by substituting wholesale ₹ Crore Nos 159,029 deposits w
Slide 9: Asset businesses moving towards normalcy (1/3)
Asset businesses moving towards normalcy (1/3) • Collections have improved sequentially – 88% in Oct’20 (against Oct’20 dues) • Disbursement • Disbursements picking up as economic activities improves MicroBanking • Continuing disbursements majorly in form of repeat loans to Microbanking customers in
Slide 10: Asset businesses moving towards normalcy (2/3)
Asset businesses moving towards normalcy (2/3) • Collection efficiency in Secured in MSE – 86% in Oct’20 (against Oct’20 dues) • Disbursements at ₹ 92 Cr in Q2-FY21 up from ₹ 12 Cr in Q1-FY21 • Sep’20 disbursement at ₹ 49 Cr; 78% of Sep’19 • New case log-ins are now at pre-Covid levels • Disbursed 8
Slide 11: Asset businesses moving towards normalcy (3/3)
Asset businesses moving towards normalcy (3/3) • Collection efficiency – 88% in Oct’20 (against Oct’20 dues) Personal Loan • Disbursements at ₹ 12 Cr in Q2-FY21 vs nil in Q1-FY21 • Targeting corporate tie-ups with super cat A, cat A, cat B & Government companies (>300 Cr Turnover and Rating BBB abov
Slide 12: Increasing digital footprints (1/3)
Increasing digital footprints (1/3) LOAN ON PHONE Fintech & Payments Bank Payment Solutions Solutions for MB customers Process digitization • Tie-ups with Fintechs & Payments • Customised payment links shared • Contactless lending: Loan on • Robotic Process Automation Bank • Presence on BBPS* apps:
Slide 13: Increasing digital footprints (2/3)
Increasing digital footprints (2/3) *Increasing Digital Transactions (%) UPI Transactions 200 Total transactions (in Lakhs) Digital transactions (%) 100% ^Active 148,737 219,546 312,165 377,162 459,097 Customers 180 Digital transactions at 56% in Q2-FY21 despite 90% ₹ Crore significant increase in t
Slide 14: Increasing digital footprints (3/3)
Increasing digital footprints (3/3) Internet Banking Mobile Banking POS Transactions No. of Active Customers Nos in ‘000 No. of Active Customers Nos in ‘000 No. of Transaction (in box) Value in ₹ Crore 2.2x Y-o-Y 2.2x Y-o-Y 1.5x Y-o-Y 11.3 12.9 14.0 9.8 12.4 lakhs lakhs lakhs lakhs lakhs 603.4 66.2
Slide 15: Collections: 91% of customers have started paying post end of moratorium
Collections: 91% of customers have started paying post end of moratorium Collection % (including additional collections) Collection % (against same month dues) 93% 89% 93% Digital vs cash collections 76% Cash Digital 92% 68% 88% 84% 1% 59% 16% 28% 69% 61% 54% 99% 84% 16% 72% 5% 16% 5% Mar-20 Apr-20
Slide 16: Collection efficiency (1/2)
Collection efficiency (1/2) ₹ Crore June’20 July’20 August’20 Additional Additional Additional Verticals Due Collection Collection % Due Collection Collection % Due Collection Collection % Collection Collection Collection MicroBanking 1,038.6 549.4 53% 57.0 1,000.2 599.8 60% 71.4 996.0 677.1 68% 76.
Slide 17: Collection efficiency (2/2)
Collection efficiency (2/2) ₹ Crore September’20 October’20 Additional Additional Verticals Due Collection Collection % Due Collection Collection % Collection Collection MicroBanking 993.2 828.6 83% 56.6 975.5 856.1 88% 52.4 MSE (Secured) 17.7 14.3 81% 6.8 17.8 15.3 86% 7.8 MSE (Unsecured) 6.0 3.7 6
Slide 18: States with lower MicroBanking collections
States with lower MicroBanking collections Maharashtra West Bengal Assam Punjab Total MB Portfolio (₹ cr) 814 1,570 385 360 MB Collection* % - 71%/ 79% 74%/ 78% 70%/ 74% 78%/ 83% Sep’20/ Oct’20 Reasons for low Severe Covid situation Protests for loan waiver Rains & Floods, impact of Loan wai
Slide 19: Very Strong Fundamentals
Very Strong Fundamentals Balance Sheet – Well-capitalized with high liquidity Focus on portfolio quality • Capital Adequacy Ratio at 31% with Tier-I being 30% • GNPA and NNPA at 1.0% and 0.1%; • LCR at 177% for Sep’20 • COVID-19 provision for the quarter is ₹ 100 Cr – • Surplus liquidity is ₹ 1,516
Slide 20: Portfolio Quality – GNPA, NNPA and PCR
Portfolio Quality – GNPA, NNPA and PCR GNPA and NNPA NNPA (%) – Segment wise NNPA GNPA 1.5% 0.9% 1.3% 0.9% 1.0% 1.0% 1.0% 1.1% 1.1% 0.7% 0.7% 0.5% 0.4% 0.4% 0.3% 0.3% 0.3% 0.3% 0.3% 0.2% 0.2% 0.1% 0.1% 0.2% 0.1% 0.3% 0.1% 0.1% 0.1% 0.1% Sep'19 Dec'19 Mar'20 Jun'20 Sep'20 Sep'19 Dec'19 Mar'20 Jun'20
Slide 21: Business Overview
UJJIVAN Business Overview UJJIVAN SMALL FINANCE BANK 21 Build a Better Life
Slide 22: Well Diversified Pan India Presence
Well Diversified Pan India Presence (Sep-20) Gross Advances (Sep-20) • 24 states and UTs (144 URCs) TN 16.2% • 575 Banking Outlets (BO) KA 14.5% • 244 districts WB 14.0% • 477 ATMs MH 9.5% 1 CH:1 GJ 7.8% 16 BR 6.0% 4 36 DL:8 HR 4.7% RJ 4.0% 26 18 UP 3.8% 31 37 1 AS 3.0% 8 PB 2.7% 44 14 83 11 OR 2.7%
Slide 23: Expanding liability customer base
Expanding liability customer base Customer Base Growth Customer Base – Basis of Branch Classification Asset Only Asset & Liability Liability Only 54.4 54.7 55.3 50.6 52.5 8% 7.3 8.8 10.9 11.8 14.0 24% 36% 29.2 33.3 36.2 36.2 35.8 32%* 14.1 10.3 7.3 6.7 5.5 Metropolitan Semi-Urban Urban Rural Sep.-19
Slide 24: Gross Advances and Disbursement Trend
Gross Advances and Disbursement Trend Gross Advances (₹ in Crore) Total Disbursements (₹ in Crore) Off-balance 84 NIL NIL NIL NIL sheet Portfolio 6,565 Gross 13,617 14,153 14,366 13,890 Advances 12,864 3,606 Portfolio 1,932 1,458* Sep'-19 Dec-19 Mar-20 Jun-20 Sep-20 Q2-FY20 Q2-FY21 H1-FY20 H1-FY21 M
Slide 25: 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 Micro Individual Loans Agri & Allied Loans MSE Affordable Housing FIG Group Loans 64.1% (1.3%) (6.2%) Others Micro Individual Loans 10.4% 33.3% (2.3%) 12,864 14,366 13,890
Slide 26: 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 Others 21% 22% 21% 6,565 95 20% 19% 20% 3,606 373 17% 17% 16% 14% 67 437 14
Slide 27: Liability profile: Retail franchise picking up
Liability profile: Retail franchise picking up Total liabilities profile (₹ in Crore) Deposits break-up (₹ in Crore) Refinance Deposits Others Certificate of Deposits Institutional TD Retail TD CASA 11,057 10,743 10,130 13,600 15,536 14,692 1,568 1,769 1202 407 458 560 3083 3,694 3,863 10,130 11,057
Slide 28: Well-diversified Deposit Mix
Well-diversified Deposit Mix Region-wise deposit mix Branch classification wise deposit mix Segment wise deposit mix 4% Individuals 2% 5% 17% 14% East Metropolitan 8% Banks 29% West 44% Urban Corporate 49% 22% North Semi Urban Govt. 33% 40% South Rural 32% TASC^ Total Deposits (excluding CDs) as on
Slide 29: Adequately Capitalized
Adequately Capitalized (₹ in Crore) Sep’19 Dec’19 Mar’20 Jun’20 Sep’20 Credit Risk Weighted Assets 10,026 10,442 10,775 11,032 10,543 Tier I Capital 1,821 2,873 3,018 3,072 3,168 Tier II Capital* 68 84 87 93 99 Total Capital 1,889 2,958 3,105 3,164 3,268 CRAR 18.8% 28.3% 28.8% 28.7% 30.99% Tier I CR
Slide 30: Financial Overview
UJJIVAN Financial Overview UJJIVAN SMALL FINANCE BANK 30 Build a Better Life
Slide 31: Financial Overview
Financial Overview NII (₹ in Crore) & NIM Cost to Income Ratio & Operating Expenses/ Average Assets (%) Operating Exp/ 8.5% 5.8% 6.3% 8.2% 6.2% Net Interest Income Net Interest Margin Avg Assets 10.8% 10.6% 69.5% 10.2% 10.2% 10.3% 66.9% 928 740 55.9% 56.6% 56.2% 388 458 470 Q2-FY20 Q1-FY21 Q2-FY21 H
Slide 32: Income Statement
Income Statement Particulars (₹ in Crore) Q2-FY21 Q2-FY20 YoY Growth Q1-FY21 QoQ Growth H1-FY21 H1-FY20 YoY Growth Interest Earned 754 654 15% 746 1% 1,500 1,260 19% Other Income 64 75 (14%) 29 124% 93 175 (47%) Total Income 818 729 12% 775 6% 1,593 1,435 11% Interest Expended 283 266 (6%) 288 2% 57
Slide 33: Total Income - Breakup
Total Income - Breakup Particulars (₹ in Crore) Q2-FY21 Q1-FY21 Q2-FY20 H1-FY21 H1-FY20 Interest on loan 701 698 619 1,398 1,186 Int. on investments 53 49 33 102 68 Securitization Inc. 0 0 2 0 5 Total Interest Earned 754 746 654 1,500 1,260 Processing Fees 19 5 45 24 81 PSLC Income 24 - 4 24 46 Trad
Slide 34: Balance Sheet
Balance Sheet Particulars (₹ in Crore) Sep-20 Jun-20 Sep-19 CAPITAL AND LIABILITIES Capital 1,928 1,928 1,640 Share Application Money Pending Allotment - - 36 Employees Stock Options Outstanding 37 30 11 Reserves and Surplus 1,452 1,293 353 Deposits 10,743 11,057 10,130 Borrowings 3,949 4,479 3,470
Slide 35: Ujjivan – Building a Mass Market Bank
Ujjivan – Building a Mass Market Bank 35
Slide 36: 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 37: Comprehensive suite of Banking Products & Services
Comprehensive suite of Banking Products & Services Micro and Small Affordable Housing Financial Institutions Micro-Banking Vehicle Loans Personal Loans Enterprise Loans Loans Group • Group Loans • Secured Enterprise Loan • Two wheeler loan • Loan to salaried • Term loan to NBFCs • Individual Loans a
Slide 38: 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 39: Other Income – diversifying revenue streams
Other Income – diversifying revenue streams Third Party Products PSLC Income ₹ 3 crore in Q2-FY21 ₹ 24 crore in Q2-FY21 ● 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
Slide 40: Serving customers through multiple delivery channels
Serving customers through multiple delivery channels ● 477 ATMs including 53 Automated Cash Recycler ● Web-based, can be accessed from any system machines Personal & ● High volume bulk upload facility ● All ATM’s re-enabled with biometrics Business Internet ● Customizable client centric approval mat
Slide 41: Strong Independent Board
Strong Independent Board Name Education Experience Name Education Prior Experience Biswamohan MA from JNU, M.Sc in B.Sc from Bangalore University Mahapatra management from Arthur D. Previously served as an Vandana Viswanathan and MA in personnel Co-founder and partner at Cocoon Part-time Chairman Li
Slide 42: Experienced Management Team
Experienced Management Team Name & Designation Prior association Education Sanjay Kao Citibank, ABN AMRO Bank, Dunia Finance and ● B.Tech, BHU Head - Human Resources Lipton India Ltd ● PGDM, IIM Calcutta Carol Furtado ANZ Grindlays Bank, Bank Muscat and ● B.Sc, Bangalore University Head – Operations
Slide 43: 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 44: Annexure
uyyivan Annexure UJJIVAN SMALL FINANCE BANK Build a Better Life
Slide 45: Shareholding Pattern
Shareholding Pattern Shareholding Pattern (Based on Holding) as on 30th September, 2020 Promoter* 3.31% 0.17% 1.17% 5.53% Resident Individuals/HUF 6.51% Foreign Investors Alternative Investment Funds 83.32% Mutual Funds Others *Promoter is Ujjivan Financial Services Ltd which is a Core Investment Co
Slide 46: 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 marginalized communities, the proje
Slide 47: Relief Activities
Relief Activities Beneficiary 36,500+ Customers 11,900+ Municipality 80,000+ public trained 8,000 Healthcare 19,300+ 500 Drivers & & Public and Panchayat workers on COVID awareness Workers Police Conductors • Covid relief activity: - As apart of CSR initiative distributed 45,000+ Mask; 33,000+ Sanit
Slide 48: Thank You!
uyyivan Thank You! UJJIVAN SMALL FINANCE BANK Build a Better Life
Ujjivan Small Finance Bank — Q2 FY21 Earnings Presentation on 6ix