Au Small Finance Bank Limited · NSE:AUBANK
Au Small Finance Bank — Edelweiss India Conference 2020
22 slides from Au Small Finance Bank's conference presentation, Feb 15, 2020
Slide 1: Exchange disclosure cover letter under Regulation 30
Ref. No.: AUSFB/SEC/2019-20/486 Date: 15th February 2020 Listing Department Department of Corporate Services, National Stock Exchange of India Limited, The BSE Limited, Exchange Plaza, Bandra Kurla Complex, PhirozJeejeebhoy Towers, Bandra (East), Mumbai 400051, Dalal Street, Mumbai 400001, Maharasht
Slide 2: Crossed the Halfway Mark
Crossed the Halfway Mark Retail Focused | Technology Led | Customer Centric | Well Capitalized | Fast Learning Assocham ABP BFSI ET Now CIBIL Best MSME Bank with Bank with Best Data Golden Peacock Bank leading Financial Best Quality Award for SME Excellence Inclusion Technology Management Excellence
Slide 3: April 2017 December 2019 April 2022
April 2017 December 2019 April 2022 The Beginning Crossed the Completion of as SFB Halfway Mark 5 years as SFB First 11 quarters’ Next 9 quarters’ Performance & Expectations & Learnings Way forward
Slide 4: AU Bank - Leveraging best of both worlds
AU Bank - Leveraging best of both worlds BANK Our PULL And Strengths NBFC Possibilities DNA “ear to the ground”, agility, push and cost-conscious Bank Brand –The biggest multiplier, a natural Pull approach 24+ years of small ticket, secured lending vintage in Comprehensive suite of products and serv
Slide 5: Tangibles of last 11 quarters
Tangibles of last 11 quarters Our Own Expectations Outcome Disbursements Growth 35-40% 55% Proportion of Retail Born Retail, would continue to be 80% 80%+ INR Mn 238,650 191,330 Deposits Accretion To fund incremental disbursements Incremental Loan AUM Incremental Deposits Return on Average Assets Sh
Slide 6: Power of Banking Platform
Power of Banking Platform Limitless Opportunities, Perpetual Journey Particulars 31-Mar-2017 31-Dec-2019 Growth • Transition from NBFC to Bank Touchpoints 301 624 2.1 Times • IPO Total Assets (INR Mn) 97,810 383,940 3.9 Times • Scheduled Commercial Bank Net Worth (INR Mn) 19,880 42,370 2.1 Times • P
Slide 7: Operational Highlights
Operational Highlights Total AUM in INR Mn Continued focus on growing 298,670 278,760 298,670 Retail Assets 217,650 134,150 98% of total AUM is secured 77% 81% 79% 81% 76% 31-Dec-17 31-Dec-18 31-Dec-19 30-Sep-19 31-Dec-19 Retail Assets Non Retail Assets Shrinking NBFC book NBFC AUM in INR Mn 23,570
Slide 8: Operational Highlights
Operational Highlights Superior Asset quality 2.8% 2.1% 1.9% 1.9% 2.0% 1.9% 1.3% 1.1% 1.0% 1.0% despite slowdown and daily NPA tagging 31-Dec-17 31-Dec-18 31-Dec-19 30-Sep-19 31-Dec-19 GNPA NNPA Improvement in spreads by 15.3% 14.7% 14.7% 14.7% 14.3% 8.3% 7.9% 7.6% 7.8% 7.6% - Increase in yields - R
Slide 9: Operational Highlights
Operational Highlights # * 20.0% 19.6% 17.4% RoE and RoA 13.3% 13.2% show marked improvement * # 2.3% 1.5% 1.8% 2.0% 2.1% 9MFY18 9MFY19 9MFY20 Q2FY20 Q3FY20 RoE RoA Adequately capitalized for 21.0% growth 19.0% 19.3% 17.9% 19.3% - Investment of INR 5.25 Bn from Temasek in Dec 2019 42,370 42,370 30,3
Slide 10: The Upcoming Time
The Upcoming Time A forever journey
Slide 11: Product Highlights
Product Highlights Personal Banking Savings A/C Term Deposit Insurance Wheels Loan Home Loan CD Loan Gold Loan Unsecured Loan & Deposits Investment Advances Commercial Banking Current A/C SBL Business Banking Trade FOREX Agri SME NBFC REG Deposits Advances
Slide 12: Key Enablers
Key Enablers Built on strong Foundation Detailing & Execution oriented, pricing the risk, robust asset quality Led by AU Dharma Focus on building the Character of the Bank समझदार� (Sensibility) ईमानदार� (Honesty) िज़म्मेदार� (Responsibility)
Slide 13: Building the Franchise
Building the Franchise Franchise Markets Super Metro Metro & Urban Semi Urban & Rural Locations Locations Locations Customers Employees Products/Processes Organisational Design
Slide 14: 3 Pillars of a Bank
3 Pillars of a Bank Bank Deposits Advances Payments Customer Discretionary Requirement Necessity
Slide 15: Tech and other initiatives
Tech and other initiatives Two-Wheeler paperless, end-to-end digital journey (Similar digital journeys for Wheels and SBL are in process) Analytics driven pre-approved Personal loan & Consumer Durable Loan, scaling up business with FinTech partners Live with all payment modes Paperless onboarding fo
Slide 16: Key takeaways
Key takeaways A niche market for SFBs – opportunity in a growing India Bank is the safest, stable, inspiring and most responsible business model Continuation of our understanding of asset business important to take the Bank to next level Creation of value proposition for attracting deposits
Slide 17: Limitless Opportunities…..
Limitless Opportunities….. Mapping some of the opportunities in Presence, Deposit & Lending space India AU Bank Opportunities Districts 727 243 Deposits (INR) 131.3 Tn 230 Bn New Vehicle (9M) 2.1 Mn 0.055 Mn Used Vehicle (FY19) 4 Mn 0.11 Mn Two-Wheeler 13.8 Mn 0.01 Mn No. of MSMEs 63.3 Mn 0.11 Mn Ho
Slide 18: Challenges
Challenges Economic Attrition at Trust Slowdown junior level in making
Slide 19: Compliance with Licensing Guidelines
Compliance with Licensing Guidelines 79% Financial Inclusion 59% Granular 28% Reaching every remote of our loans to is in our DNA of loans less than of our branches corner priority sector 2/12/2020 25 lakh in rural areas 18
Slide 20: Way forward
Way forward Right combination of 4Ds Data, Digital and Distribution will allow us to deliver Delight to our ‘Customers’ Consistently Grow Assets by 30-35% p.a.; Assets Targeted to reach at USD 10 billion by 2022 Funded by Granular Deposit Base; Deposits targeted to fund ~80% of Loan AUM Focu
Slide 21: Thanks
Thanks RBI The Government of India Shareholders Partners Customers All of you
Slide 22: SMALL
AU SMALL FINANCE BANK dal art a !
AU Small Finance Bank — Edelweiss India Conference 2020 on 6ix