Suryoday Small Finance Bank Limited · NSE:SURYODAY
Suryoday Small Finance Bank — Investor Day (June 2023)
32 slides from Suryoday Small Finance Bank's investor day presentation, Jun 22, 2023
Slide 1: Submission of Investor Presentation to the exchanges
June 22, 2023 Ref.: SSFB/CS/28/2023-24 To, National Stock Exchange of India Limited BSE Limited Listing Department The Corporate Relations Department Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (East) Fort, Mumbai —400 051 Mumbai — 400 001 Symb
Slide 2: Investor & Analyst Day Presentation June 2023
Investor & Analyst Day Presentation June 2023
Slide 3: Safe Harbour
Safe Harbour headline This presentation and the accompanying slides (the “Presentation”), which have been prepared by Suryoday Small Finance Bank (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: Milestones
Milestones headline 2008-2012 2013-2017 2018-2022 2023 Commencement SFB License IPO Year of Reset • Incorporation of Suryoday Micro • AUM crosses Rs 1,000 Cr with • AUM crosses Rs 5,000 Cr • Completed 6 years of operations Finance 7.5L customer base and 200 as a SFB • Customer Base 0.6% Indian branc
Slide 5: Reimagining Suryoday
headline Reimagining Suryoday Insights Market Access – Customer Acquisition Engine Revenue Maximisation NTB + ETB Group Loans Graduating Individuals from Groups MFI Customers Non-MFI Customers Micro Mortgage Single Serving Mortgage Customer Entire Household Curation through analytics Small Business
Slide 6: Strategy Enablers
Strategy Enablers headline Simplification & Partnerships Digitalisation CGFMU Cover Merchant QR Product Proposition & Advanced Distribution Analytics Branch Network & Savings & Collection Strength in Strategy - Social Security Micro Markets Enablers Schemes 5
Slide 7: What Will Suryoday Be Known For: FY25-26
headline What Will Suryoday Be Known For : FY25-26 Bank of Choice for 1% of Indian Households Technology Products + Network Analytics • Achieving competitive • End to end digital • Leveraging presence in advantage with banking journey for the entire existing locations & solutions for emerging produc
Slide 8: Emerging Household Potential
headline Emerging Household Potential SFB Strategy Market Potential Rich 56 Million (Rs >30 Lk) Inclusive Finance Middle Class 434 Million (Rs <5 Lk to 30 Lk) TW/ MHL/ LCW VL/ MLAP Small Business Aspirers-Lower Middle Class 728 Million Wheels Loan Mortgages (Rs <1.25 Lk to 5 Lk) HL, Vehicle Destitut
Slide 9: Consistent & Sustainable Growth
Consistent & Sustainable Growth headline Disbursements (₹ crores) Gross Advances (₹ crores) Deposits (₹ crores) IF Retails Assets +19.2% 6,114* +16% 5,083 5,063 +34% 5,167 4,206 3,528 3,655 3,743 (61%) 3,849 3,090 3,024 3,256 2,856 3,386 (67%) 2,849 2,217 2,923 (70%) 2,815 (77%) 1,593 2,453 (81%) 2,
Slide 10: Robust Financial Metrics
headline Robust Financial Metrics Net Interest Margin 10.4% NIM to improve further with better liquidity optimisation Cost to Income Stands at 58.4% despite higher spends on IT transformation Cost of Deposit CASA is at 17.1% with cost of funds of 6.9% at par with competitors Pre-Provisioning Operati
Slide 11: FY28E Gross Advances and Deposits
FY28E headline Gross Advances • Unsecured business – Making quasi secure with CGFMU cover and contingency provision - should be ready for any cyclical incident that micro finance 2023 2028E 2019 industry faces in every 4/5 years CAGR 19% CAGR 30% • Secured business – Retail penetration with scale co
Slide 12: Asset Fortification
Asset Fortification headline 01 Robust Credit Underwriting CGFMU Contingency Provision and Collection • Robust portfolio monitoring which • Scheme managed by National Credit • Bank is planning to create an includes market analysis, risk Guarantee Trustee additional contingent provision over assessme
Slide 13: Liabilities
SURYODAY A BANK OF SMILES _ Ma ou Liabilities
Slide 14: Liability Strategy
Liability headline Product People Initiatives Distribution • Persona/Segment based offerings- • PHIGITAL Customer experience. • Branch location Observe, access, • Role Specific structures., Dedicated HNI, Women, Senior citizens, (Doorstep/SMS Banking –Semi Execute & Measure. product verticals profes
Slide 15: Liability Strategy Enablers
headline Liability Strategy Enablers Profiling Digital Solutions Product Offerings Senior Citizens Collection & Payment(CMS) Higher rates on deposits, low-cost • *Collection – PG links, e-mandates, e-POS banking services and priority services • * Auto Recon solutions at branches/doorstep • * Virtual
Slide 16: Liability Strategy – Acquisition & Penetration
Liability Strategy – headline Acquisition & Penetration Customer • Retail Bank Branches Presence – Strategic & Planned Bespoke Products • Branch Manpower - Strengthen with • Offerr compelling Branch Channels dedicated relationship/ acquisition/ value proposition Service & Ops model • Liabilities thr
Slide 17: Inclusive Finance
SU RYO DAY i) Inclusive Finance
Slide 18: Inclusive Finance
Inclusive Finance headline Portfolio Quality Control Robust Operating Model Distribution Strong Platform in Place AUM • Enhancing employee • Leveraging bank’s • Digital onboarding and • Strong underwriting with • JLG – Rs 2,508 Cr (CE: >98%) introduction of virtual PD capability through training net
Slide 19: IF Strategy – Enablers
headline IF Strategy – Enablers “AAA”- Approach A - AOCPV A - Analytics A - Augmentation Center point verification at household • Customer Acquisition Serving the customer household level and data capture through Sarathi • Cross-sell/ Upsell members through artificial App for Underwriting and cross
Slide 20: Vikas Loan - Potential Pathway To Service Households
Vikas Loan - Potential Pathway To Service Households headline Success Mantra Sourcing NTB – JLG customers ETB - JLG Loan after good (1st Cycle Loan) repayment track record (2nd Cycle) Curation through analytics leading to preapproved customer base Robust Credit Underwriting with a quick turnaround D
Slide 21: Mortgages
SURYODAY A BANK OF SMILES fy Mortgages
Slide 22: Mortgage Industry Landscape
Mortgage Industry headline Landscape Low • Favorable macro economics EWS Affordable • Large market with low penetration - No dearth of business ATS 10Lacs Base Prime Ticket Size ATS – 25 Lacs Tier 1 -2 • Highly polarized market Prime • Affordable segment continues to ATS – 40 Lacs grow Tier 1 -2 • F
Slide 23: Mortgages
Mortgages headline Strong Platform in Place Robust Operating Model Distribution Diversified Portfolio Strong Value Proposition • End to end digital journey • Strong foundation to deliver AUM through LOS and quick • Hybrid Distribution with • Mortgages – Rs 960 Cr/ Micro • Tested Loss Pool market lea
Slide 24: Mortgage – Strategy Enablers
Mortgage – Strategyheadline Enablers Business Strategy Build a Diversified portfolio Hybrid Distribution Model Efficiency & Speed o Focus on retail resale , Direct o MSME focus with strong o Lean , Productive and Variable o Leverage technology for Allotment for self use & secured underline cash flow
Slide 25: Micro Mortgage – Strategy Enablers
headline Micro Mortgage – Strategy Enablers Product Sourcing and Collection • Focus on upsell. Converting the Vikas Loan • Introduction of Partnership Model customers for Micro LAP loans • Connector model and Fulfilment Model • Introduction of New product along with Partnership, Digital Lending Expa
Slide 26: Wheels
SURYODAY A BANK OF SMILES
Slide 27: Wheels Business
Wheels Business headline New Customer Existing Cost Asset Acquisition Customer Base Optimisation Quality • Strengthening the core sales team to focus on each segment • Focus on going more granular • Scaling up business through hub • Strengthened controls, continuous • Expanding in the rural space, r
Slide 28: Wheels Business – Strategy Enablers
headline Wheels Business – Strategy Enablers • Revolutionizing Wheels business by shifting to digitisation. • Diversifying business through various products under Wheels Portfolio. • Introducing various programs Product Process Express Loans to ensure faster TAT • Flexible policies in alignment with
Slide 29: Wheels Business - Used CV Strategy
headline Wheels Business - Used CV Strategy Supporting factors to dominate the Used Commercial Vehicle Space Large CV Market INR 5.6 Lakh Crores Opportunity in the Used Commercial Vehicle space 61% 31% 8% is expected to grow two- fold in coming year 0-4 Years 5-10 Years 5-10 Years Future Opportunity
Slide 30: Brand Building
SURYODAY A BANK OF SMILES. Brand Building >) SURYODAY ‘A BANK OF SMILES Celebrating our Tech-Awards ‘TRANSFORMATION EXCELLENCE. BEST SECURITY PRACTICES Core Banking Transformation ‘Small Finance Bank nee © SuRyODAY Infosys Finacle INNOVATION AWARDS 2028 ST SECUMPLY PRACTICES 9 S7=°LL FIN Hello
Slide 31: Initiatives
Initiatives headline Bundled product offering Cash Management + Working Capital M-LAP Small Business Loans (Micro housing loans to Products existing IF customers) Digital Current Account NTB Vikas Loan/ Star Loans for IF Used Car Loans Product offering through digital way and seamless experience Aad
Slide 32: Thank You!
THANK YOU ! Company: Suryoday Small Finance Bank Limited Investor Relation Advisors: Strategic Growth Advisors Pvt. Ltd. CIN: L65923MH2008PLC261472 CIN: U74140MH2010PTC204285 Mr. Himadri Das Mr. Aakash S Mehta / Mr. Abhishek Shah himadri.das@suryodaybank.com aakash.s.m@sgapl.net / abhishek.shah@sgap
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