Jana Small Finance Bank Ltd · NSE:JSFB
Jana Small Finance Bank — FY2024 Earnings Presentation
32 slides from Jana Small Finance Bank's earnings presentation, Apr 29, 2024
Slide 1: Cover letter to stock exchanges
JSFB/SEC/2024-25/20 29th April, 2024 BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai 400001, Bandra (East), Mumbai 400051, Maharashtra Maharashtra. BSE Scrip Codes: 544118, 953148, 958869, 958877 NS
Slide 2: Jana Small Finance Bank Investor Presentation FY'2024
Jana Small Finance Bank Investor Presentation FY’2024
Slide 3: Key Highlights – PAT and PCR doubled
Key Highlights – PAT and PCR doubled Asset Capital Operational Assets Liabilities Ratios P&L Metrics Quality Structure Metrics Rs. 24,746 Crs / 24.9% Rs. 22,571 Crs / 38.2% 2.0% [3.6%] 3,577 Crs [1,797 Crs] 808 [754] 2.4% [1.1%] Rs. 670 Crs Advances1 / Growth Deposits / Growth Gross NPA* Net worth B
Slide 4: DTA of Rs. 801 crores till FY 2027 can be utilized
DTA of Rs. 801 crores till FY 2027 can be utilized Excluding DTA and Particulars As reported Excluding DTA Applying Tax PBT 514 514 514 DTA 155 - - Provision for Tax - - 132 PAT 670 514 382 ROA 2.4% 1.8% 1.4% ROE 26.9% 20.7% 15.3% • Balance DTA of Rs. 801 crores not yet recognized. The amount is ava
Slide 5: National franchise with 19% customer growth
National franchise with 19% customer growth Distribution of bank branches Presence in Unbanked Rural Centers MFI through BCs 808 Unbanked Rural Centres % of Total Outlets Business Correspondent (BC) Operated Outlets Bank Branches Banking Outlets Advances sourced by BCs / Total Advances1 (%) 36.2% 36
Slide 6: Secured Lending at 60% in 3 years
Secured Lending at 60% in 6 years Asset Products Key Metrics for Asset Products 24,746 803 Average Average Advances1 Category of Advance Ticket GNPA4 NNPA4 3,899 Tenure 3Yr CAGR3 LTV5 19,808 (As at March 31, 2024) Size (Rs. (%) (%) (Months) (%) Mn) 2 686 3,094 5,299 15,255 Micro LAP 133 0.65 56.7% 0
Slide 7: Consistent De-risking and Diversification
Consistent De-risking and Diversification Focus on making secured the core Low geographical concentration Maharashtra Tamil Nadu Karnataka Gujarat Madhya Pradesh Rajasthan Uttar Pradesh Others Secured Advances1 (Rs. Crs) 14,056 28% 30% 35% 33% 11,045 1% 59.6% 4% 3% 7% 19% 6% 5% 6% 55.8% 7% 25% 6% 6%
Slide 8: Best in class risk Management
Best in class risk Management API based digital Process Portfolio Management Customised Score Card & Early Warning Bureau Bounce Incidence Refreshed bureau Bank Statements Internal risk score Financials Key Account Manager Updated financial GST information , bank Personal Discussion statements
Slide 9: The shape of future MFI – Digital and Customized
The shape of future MFI – Digital and Customized Product Wise Digital Y-o-Y Mar-24 ATS GNPA NNPA PCR AUM Payment Growth Individual Loan 5,283 42.2% 45,821 6.1% 3.8% 0.8% 79.5% - Agri 1,085 28.8% 42,458 18.7% 3.5% 0.8% 76.7% - Non Agri 4,198 44.5% 46,690 3.3% 3.9% 0.6% 83.9% BC Book 2,446 22.4% 29,65
Slide 10: Becoming Anchor bank to our customers
Becoming Anchor bank to our customers Product L1 L2 L3 L4+ Agri 3,312 528 42 18 GL 698 67 22 16 IL 500 1,542 1,578 1,679 Overall 4,510 2,137 1,641 1,713 RFS Overall - % Portfolio Existing Customers Agri Loans - % Portfolio Existing Customers GL and IL - % Portfolio Existing Customers 80.4% 15.1% 70.
Slide 11: Bring Your Bank Home
Bring Your Bank Home Home Loan leading to Anchor Bank with Multiple Product Offerings and Special Benefits Two Wheeler loans • Pre-approved Two Wheeler loans Pre-approved Business Loan • 100% funding to the vehicle value • Additional Pre-approved line upto Rs. 5 lakhs available • Lower Processing fe
Slide 12: Becoming Anchor bank to our customers
Becoming Anchor bank to our customers Health Insurance #Average CASA Penetration TD/RD Penetration 98% Penetration 96% Relationships 17% 3.6 64% 2.6 25% 3% PRE-HOME360 POST-HOME360 PRE-HOME360 POST-HOME360 PRE-HOME360 POST-HOME360 Customers Customers PRE-HOME360 POST-HOME360 Customers Customers Cust
Slide 13: Fast growing deposits at 38% in a highly competitive environment
Fast growing deposits at 38% in a highly competitive environment Rapidly growing deposit portfolio Diversified deposit base… Reducing share of top states in deposit mix Maharashtra Tamil Nadu Karnataka West Bengal Punjab Delhi Uttar Pradesh Others 22,571 20% 22.5% CASA 39% Rs. 22,571 31% 16,334 Reta
Slide 14: Deposits – Underserved on Service and Price
Deposits – Underserved on Service and Price Optimize Distribution network –Mobilize Low-cost, stable retail deposits. Build momentum on CASA acquisitions No. of Branches Avg CASA Book per Branch Avg Deposit Book per Branch 246 (in Crs) 19 (in Crs) 115 159 76 15 3 30 1.8 9 0.4 2 < 1 Year 1-3 Years 3-
Slide 15: Digital – A way of life!
Digital – A way of life! Jana Digitization 90% + Digital Uptake 99 % 98 % 92 % 90 % Digital Highlights Digital Channels SA Accounts Banking Txns Loans are Digitally Sales force use opened Digitally are Digital processed TAB/Mobile Key Highlights Merchant QR 13,955 QR Codes Installed across merchants
Slide 16: Key Financials
Cor py Jana Small coo Finance Bank A SCHEDULED COMMERCIAL BANK Key Financials 15
Slide 17: ROE and ROA upward trend continues with NIM increasing
ROE and ROA upward trend continues with NIM increasing Return ratios trending upwards NIMs have improved in spite of Cost of Funds increase RoE (%) RoA (%) 26.9% NIM (%) Yield on Advances (%) 21.8% 20.7% Adjusted RoE (%) 19.9% 16.7% 18.1% 17.8% 6.5% 8.4% 7.3% 7.8% 8.0% 1.5% 1.1% 2.4% 0.5% 0.1% 1.8%
Slide 18: GNPA and NNPA normalized with best till date PAT
GNPA and NNPA normalized with best till date PAT With improving asset quality and increasing PCR Y-o-Y PAT growth of 162% GNPA % NNPA % PCR % Profit after taxes (Rs. Crs) 27.9% 32.2% 34.0% 73.7% 670 GNPA / NNPA 6.7% Secured Book 5.0% 0.6% / 0.5% 3.6% 256 4.8% 2.0% 3.4% GNPA / NNPA 72 2.4% 0.5% Unsec
Slide 19: Net NPA has 55% secured loans
Net NPA has 55% secured loans GNPA and NNPA returning to Pre-COVID levels Restructured Portfolio @ 0.4% of AUM INR crs Mar-24 Particulars Secured Unsecured BC Total Group Loans 8 Gross NPA 90 291 114 494 Agricultural and allied Loans 1 Net NPA 71 58 2 130 Individual and Micro Business loans 4 Total
Slide 20: Credit Cost Ratio continues to improve
Credit Cost Ratio continues to improve Net Credit Cost Net Credit Cost % of AUM 3.36% 512 485 2.46% 416 1.96% 314 2.10% Mar-21 Mar-22 Mar-23 Mar-24 Particulars Mar-21 Mar-22 Mar-23 Mar-24 Credit Cost 367 569 744 679 Accelerated Provisioning - - 71 73 Recoveries under other income 53 57 257 122 Net C
Slide 21: Balance Sheet
Balance Sheet Rs. Crs March 31, 2023 March 31, 2024 Borrowings: CAPITAL AND LIABILITIES Borrowings includes Capital 324 105 • Refinance – Rs. 4,054 crores Reserves & surplus 1,472 3,472 • SLTRO – Rs. 800 crores Deposits 16,334 22,571 • Tier-2 capital - Rs. 350 crores Borrowings 6,277 5,211 • Others
Slide 22: Guidance
Guidance We continue to serve aspirational India, underserved both on deposits and loans We continue to increase our secured business proportion each year. We are creating a sustainable, predictable and long term franchise. Digital with high standards of governance and customer service are key compo
Slide 23: Experienced and professional management and Board
Experienced and professional management and Board Experienced board with diverse business experience in well-known financial services institutions and banks Name & Designation Past Experience Name & Designation Past Experience • Insurance Regulatory and Subhash Chandra Khuntia Development Authority
Slide 24: Experienced and professional management and Board
Experienced and professional management and Board International best practices in risk management, compliance and governance introduced by management with an average experience of 27 years in financial services Name & Designation Past Experience Name & Designation Past Experience Name & Designation
Slide 25: Our Journey - Bank History, Key Milestones & Achievements
Our Journey - Bank History, Key Milestones & Achievements 4th largest Small Focusing on a Focus on Finance Bank in Serving Focused on Strong customer centric diversifying Access to low- Strong emphasis India in terms of underbanked MSME and technology base approach to advances by cost diversified on
Slide 26: Our Strength
Our Strength Digitalised bank and the majority of our services are available in digital form to customers Integrated Risk and Governance Framework Professional and Experienced Management and Board Customer-centric organization with > 16 years’ experience in serving underbanked and underserved custom
Slide 27: Our Strategies
Our Strategies Focus on accelerating secured loans book with the purpose of meeting customers’ needs and diversifying the lending book Reshape the unsecured loans (Microfinance Loans) business Improve the risk profile Enhance the growth of Retail Deposits Alliances with third parties from banking to
Slide 28: CSR led by employees with direct community interaction
CSR led by employees with direct community interaction Promoting Education : • Benches • Fans • Computers Safe Drinking Water : Promoting Health Care : Water filter plant/ RO • Medical Equipment water in schools • Wheel Chairs • Vehicle for drug transportation • Medicine supply to poor 40 CSR Projec
Slide 29: Excellence being recognized
Excellence being recognized National Best Employer & Best Data Quality Award Best Fintech & DPI Adoption Regional Winners: Asia Dream company to work For By TransUnion CIBIL By IBA (Indian Banking By IBS Intelligence By World HRD Congress Association)
Slide 30: Thank You
Jana Small Finance Bank A SCHEDULED COMMERCIAL BANK Thank You
Slide 31: Abbreviations
Abbreviations Abbreviation Expansion Abbreviation Expansion CASA Current Account and Savings Account AUM Assets Under Management CRAR Capital-to-Risk Weighted Asset Ratio NBFC Non-Banking Financial Company GNPA Gross Non-Performing Assets MFI Micro Finance institution NNPA Net Non-Performing Assets
Slide 32: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Jana Small Finance Bank (the “Bank”) and no part of it shall form the basis of or be relied upon in connection with an
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