Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Q4 FY22 Earnings Presentation
58 slides from Ujjivan Small Finance Bank's earnings presentation, May 2022
Slide 1: Q4 FY22 Presentation
Q4 FY22 PRESENTATION MAY 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 Highest ever disbursement Reduced Portfolio at Risk Operating profits rising… ₹ Crore 4,809 4,870 30.8% ₹ Crore 544 454 NII 3,122 384 391 18
Slide 6: Q4 FY22 Key Highlights
Q4 FY22 KEY HIGHLIGHTS Disbursements Highest ever quarterly disbursements in a row; ₹ 4,870 Cr up 14.0% Y-o-Y; up 1.3% Q-o-Q Collections Collection efficiency at ~100% in Mar’22; good traction on restructured/ NPA pool Retail deposits up 59% Y-o-Y; CASA up 85% Y-o-Y |Total deposit at ₹ 18,292 Cr up
Slide 7: Ujjivan – Touching Lives
UJJIVAN – TOUCHING LIVES On 7th Sep’21, launched an initiative to focus on vaccination drives for customers and their families; promoted mass vaccination through the branches under “SANJEEVANI KAVACH’ Total Beneficiaries Branches conducting Vaccinated vaccination camps 80,256 478 Weekly vaccination
Slide 8: Q4-FY22 Key Highlights
KEY HIGHLIGHTS Net Interest Income Net Interest Margin PPOP FY’22 ₹ 1,774 cr 8.8% ₹ 590 cr Up 3% yoy Down 67 bps Down 26% yoy FY21: ₹ 1,729 cr FY21: 9.5% FY21: ₹ 801 cr Net Interest Income Net Interest Margin PPOP ₹ 544 cr 10.1% ₹ 217 cr Up 48% yoy UP 219 bps Up 40% yoy Q4-FY21: ₹ 368 cr Q4-FY21: ₹
Slide 9: Key Highlights
KEY HIGHLIGHTS Gross Advances Disbursements Total Deposits ₹ 18,162 cr ₹ 14,113 cr ₹ 18,292 cr Up 20% yoy Up 68% yoy Up 39% yoy Mar’21: ₹ 15,140 cr FY21: ₹ 8,397 cr Mar’21:₹ 13,136 cr GNPA NNPA Retail Deposits 7.1% 0.6% ₹ 9,921 cr (54%*) Dec’21: 9.8% Dec’21: 1.7% Up 59% yoy Mar’21: 7.1% Mar’21: 2.9%
Slide 10: Strengthening Retail Liability Franchise
STRENGTHENING RETAIL LIABILITY FRANCHISE Retail branch banking driving customer acquisition • Total deposits grew 39.3% Y-o-Y to ₹ 18,292 Cr Nos in ‘000 Retail branch banking Others • Retail deposits grew 58.9% Y-o-Y; contributing to 54% of total deposits in Mar’22 vs 48% in Mar’21 315.8 267.2 • CAS
Slide 11: Assets Update - Microbanking
ASSETS UPDATE - MICROBANKING Collections ➢ Continuous improvement in collections across regions/ states with Mar’22 reaching ~100% vs. 98% in Dec’21 ➢ Focused approach towards different buckets; reducing flow to higher buckets; collection from stressed pool ➢ Collections aided by strong dedicated co
Slide 12: Assets Update – Other Assets
ASSETS UPDATE – OTHER ASSETS Collections ➢ Continuous improvement in collections across regions/ states with Mar’22 reaching 96% vs. 91% in Dec’21 ➢ Improvement across all verticals; FIG continues to be 100% ➢ Focused approach towards different buckets; reducing flow to higher buckets; collection fr
Slide 13: Successfully driving digital journey
Successfully driving digital journey 13
Slide 14: Leader in Adopting Technology (Pre-Bank)
LEADER IN ADOPTING TECHNOLOGY (PRE-BANK) First in the Industry - Door-step Loan Processing through Phygital Journey (Hand Held Devices to staff) Initial phase of Automated Credit Sourcing Collections digitisation Decisioning Document GLOW & ILOS Trucell BRE and IC4 Management (Group Loan & (Collecti
Slide 15: Digital Roadmap Set Since Inception of Bank
DIGITAL ROADMAP SET SINCE INCEPTION OF BANK Inception of Ujjivan Harnessing digital potential since inception SFB 2017 2018 2019 Operations begun with E-KYC and Aadhaar Building Strong Digital Fintech Tie-ups for all digital channels live Authentication Services Banking Foundation Loan EMI payment •
Slide 16: Post-Bank Digitization Era (2019)
POST-BANK DIGITIZATION ERA (2019) Ideas conceptualized to drive the digital journey ahead 2018 2019 2020 Launch of Digital Products & Services Conceptualization of New initiatives • Innovation Centre – Formation of • VVV (voice, video & vernacular) innovation center with focus on RPA Mobile Applicat
Slide 17: Post-Bank Digitization Era (2020-21)
POST-BANK DIGITIZATION ERA (2020-21) Planned ideas put into action 2019 2017 2020 2021 2022 Conceptualization of Launch of Digital Creating newinitiatives Products & ServicesNew Partnerships Fintech Tie-ups for Loan EMI payment • ARIA, chatbot introduced on Ujjivan • Introduction of Video-KYC SFB we
Slide 18: The Digital Journey – Way Forward (1/2)
THE DIGITAL JOURNEY – WAY FORWARD (1/2) API stack to scale-up UPI Enhancements in Digital payments Payments Building future ready API gateway for Fintechs by Introducing cash mode for EMI loan repayments facilitating plug and play model enabling digital under Bharat Bill Payment System (BBPS) paymen
Slide 19: The Digital Journey – Way Forward (2/2)
THE DIGITAL JOURNEY – WAY FORWARD (2/2) VVV and other initiatives VVV Application – • One of the best mobile banking app that will navigate the customer through voice, visuals and available in vernacular languages to aid unserved and underserved customer segments on digital platform • The users can
Slide 20: Increasing Digital Transactions (1/2)
INCREASING DIGITAL TRANSACTIONS (1/2) Increasing Digital Transactions* UPI Transactions Nos in lakhs ^Active 680 771 883 1,007 1,114 Cash Transactions Digital Transactions Customers 484 (in ‘000) ₹ Crore 4235 4978 2403 3319 2109 422 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 337 Bill Payments No. of 87
Slide 21: Increasing Digital Transactions (2/2)
INCREASING DIGITAL TRANSACTIONS (2/2) Digital penetration among customers continues to show a healthy increase POS Transactions No. of Transaction (in box) Value in ₹ Crore Registered Customers (in lakhs) Transacting Customers (in lakhs) 15.1 12.1 14.9 15.7 14.9 lakhs lakhs lakhs lakhs lakhs 16.4 6.
Slide 22: Collections and asset quality parameters
Collections and asset quality parameters 22
Slide 23: Healthy Collections Leading to Improved Asset Quality
HEALTHY COLLECTIONS LEADING TO IMPROVED ASSET QUALITY Collection % (including additional collections) Collection % (against same month dues) Digital vs cash collections 116% 112% 112% 111% 109% 107% 107% 107% 109% Cash Digital 105% 101% 96% 11% 16% 18% 17% 19% 98% 100% 98% 83% 95% 95% 95% 97% 97% 94
Slide 24: Microbanking Collections: Secular Improvement
MICROBANKING COLLECTIONS: SECULAR IMPROVEMENT Region South West East Tamil Nadu Karnataka Kerala Maharashtra West Bengal Mar’22 MB Portfolio 1,851 1,632 242 872 1,690 (₹ cr) ▪ Improved income levels led by reduced restrictions, Strengthened Total Off Roll Total on Roll 2,677 2,621 2,164 collection 8
Slide 25: Collection Efficiency (1/2)
COLLECTION EFFICIENCY (1/2) ₹ Crore Nov’21 Dec’21 Jan’22 Collection Additional Collection Additional Collection Additional Verticals Due Collection Due Collection Due Collection % Collection % Collection % Collection MicroBanking 846.2 803.2 95% 79.7 854.3 836.4 98% 94.0 869.9 844.5 97% 94.9 MSE 25.
Slide 26: Collection Efficiency (2/2)
COLLECTION EFFICIENCY (2/2) ₹ Crore Feb’22 Mar’22 Apr’22 Collection Additional Collection Additional Collection Additional Verticals Due Collection Due Collection Due Collection % Collection % Collection % Collection MicroBanking 906.9 889.1 98% 68.1 936.7 944.6 101% 85.7 939.3 928.9 99% 76.3 MSE 25
Slide 27: Significant Reduction in Restructured Book
SIGNIFICANT REDUCTION IN RESTRUCTURED BOOK Restructured Book ₹ crores RF 1.0 RF 2.0 Total MicroBanking 230 502 732 Affordable Housing 13 23 36 MSE 12 65 77 Loan Book 255 590 845 PAR 216 242 458 GNPA 205 166 370 Provisions 199 195 394 Mar’22 Collection efficiency % - - 89% ▪ Significant reduction in
Slide 28: Focused Towards Improving Asset Quality
FOCUSED TOWARDS IMPROVING ASSET QUALITY Total Provision (₹ in crore) & GNPA & NNPA Significant reduction in stress book Provision Coverage Ratio Provision PCR% GNPA NNPA GNPA+Restructured Book PAR+Restructured Book 92% 11.8% 32.1% 84% 9.8% 9.8% 25.2% 75% 75% 7.1% 2.9% 2.7% 3.3% 7.1% 17.6% 18.4% 60%
Slide 29: Business Overview
Business Overview 29
Slide 30: Well Diversified Pan India Presence
WELL DIVERSIFIED PAN INDIA PRESENCE • 24 states and UTs (144 URCs) Gross Advances (Mar’22) • 575 Banking Outlets (BO) TN 15.5% • 248 districts KA 14.5% • 492 ATMs WB 12.3% 1 CH:1 16 MH 9.6% 4 GJ 8.4% 36 DL:8 BR 6.7% 18 UP 5.5% 26 31 1 HR 5.2% 37 RJ 4.1% 8 44 14 83 ND 3.9% 11 OR 2.5% 4 PB 2.3% 19 JH
Slide 31: Expanding Liability Customer Base
EXPANDING LIABILITY CUSTOMER BASE Customer Base Growth Customer Base – Basis of Branch Classification Asset Only Asset & Liability Liability Only 8% 25% 59.2 58.2 59.7 62.1 64.8 30% 26.9 19.1 24.5 19.6 22.5 37% Metro Urban Semi-urban Rural *Semi-Urban branches largely cater to rural customers 36.7 3
Slide 32: Gross Advances and Disbursement Trend
GROSS ADVANCES AND DISBURSEMENT TREND Gross Advances (₹ in crore) Total Disbursements (₹ in crore) 18,162 16,463 14,113 15,140 14,514 14,037 8,397 4,274 4,870 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Q4-FY21 Q4-FY22 FY21 FY22 Microfinance Loan Disbursement (No. of Loans) Portfolio Breakup Unsecured Secure
Slide 33: Diversifying Asset Book
DIVERSIFYING ASSET BOOK Gross Advances – Segment wise (₹ in crore) % Gross Growth Growth Product Advances Y-o-Y Q-o-Q Group Loans Micro Individual Loans Agri & Allied Loans MSE Affordable Housing FIG Others* Group Loans 56.6% 14.6% 14.3% *Non-MB% 28% 33% 32% 15,140 16,463 18,162 Micro Individual Loa
Slide 34: Disbursement & Average Ticket Size
DISBURSEMENT & AVERAGE TICKET SIZE Product wise Disbursement (₹ in crore) Yield (%) – Segment wise 4,274 4,809 4,870 8,397 14,113 MicroBanking MSE Affordable Housing Overall Group Loans 581 20% Micro Individual Loans 19% Agri & Allied Loans 715 17% 17% 18% MSE 1,064 16% 14% Affordable Housing 13% 14
Slide 35: 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 Institutional TD Retail TD CASA Certificate of Deposits 13,136 15,563 18,292 16,383 17,499 20,056 756 374 138 4,993 806 688 407 4,117 2,699 5,187 13,136 4,4
Slide 36: Well-Diversified Deposit Mix
WELL-DIVERSIFIED DEPOSIT MIX 36
Slide 37: Financial Overview
Financial Overview 37
Slide 38: Financial Overview
FINANCIAL OVERVIEW NII (₹ in crore) & NIM Cost to Income Ratio & Operating Expenses/ Average Assets (%) Net Interest Income Net Interest Margin Operating Exp/ 6.6% 7.9% 7.7% 6.3% 6.8% Avg Assets 2,000 10.1% 9.5% 1,500 9.1% 8.8% 7.9% 10% 1,000 5% 74% 500 68% 72% 66% 368 454 544 1,729 1,744 61% 0 0% Q
Slide 39: Income Statement
INCOME STATEMENT Particulars (₹ in crore) Q4-FY22 Q4-FY21 YoY Growth Q3-FY22 QoQ Growth FY22 FY21 YoY Growth Interest Earned 818 618 32.4% 708 15.6% 2,813 2,806 0.2% Other Income 103 114 (10.0%) 91 12.9% 313 302 3.6% Total Income 921 732 25.8% 799 15.3% 3,126 3,108 0.6% Interest Expended 274 250 9.8
Slide 40: Total Income - Breakup
TOTAL INCOME - BREAKUP Particulars (₹ in crore) Q4-FY22 Q3-FY22 Q4-FY21 FY22 FY21 Interest on loan 759 648 564 2,576 2,600 Int. on investments 59 60 53 237 206 Total Interest Earned 818 708 618 2,813 2,806 Processing Fees 62 60 54 175 106 PSLC Income 0 0 29 2 58 Treasury Income 0 0 0 18 56 Insurance
Slide 41: Balance Sheet
BALANCE SHEET Particulars (₹ in crore) Mar-22 Dec-21 Mar-21 CAPITAL AND LIABILITIES Capital 1,928 1,928 1,928 Employees Stock Options Outstanding 42 40 44 Reserves and Surplus 832 706 1,247 Deposits 18,292 15,563 13,136 Borrowings 1,764 1,936 3,247 Other Liabilities and Provisions 746 1,026 778 TOTA
Slide 42: Healthy Capital Adequacy
HEALTHY CAPITAL ADEQUACY (₹ in Crore) Mar’21 Jun’21 Sep’21 Dec’21 Mar’22 Credit Risk Weighted Assets 11,420 10,393 10,483 11,963 12,879 Tier I Capital 2,863 2,546 2,174 2,114 2,279 Tier II Capital* 157 143 152 170 166 Total Capital 3,020 2,689 2,326 2,284 2,446 CRAR 26.44% 25.88% 22.19% 19.09% 18.99
Slide 43: Ujjivan – Building a Mass Market Bank
Ujjivan – Building a Mass Market Bank 43
Slide 44: 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 45: Comprehensive Suite of Products & Services
COMPREHENSIVE SUITE OF PRODUCTS & SERVICES Micro and Small Enterprise Micro-Banking Affordable Housing Loans Vehicle Loans Financial Institutions Group Loans Loan • Group Loans • Secured Enterprise and • Term loan to NBFCs and • Construction and Purchase • Two wheeler loan • Individual Loans Busines
Slide 46: 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 / Corporate Salary digital channels Digital + Branch led Payment solutions, Youth transactions Fee Based Products, CMS Life Events Based
Slide 47: Other Income – Diversifying Revenue Streams
OTHER INCOME – DIVERSIFYING REVENUE STREAMS Third Party Products PSLC Income ₹ 26 crore in FY22 ₹ 2 crore in FY22 ● 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, Health i
Slide 48: 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 49: Strong Independent Board
STRONG INDEPENDENT BOARD Name Education Experience Name Education Prior Experience International banker with over 40 years of Career banker for nearly four decades with SBI as banking experience having worked Middle East Ittira Davis well as its associate banks. Handled varied PGDM from the Indian a
Slide 50: 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 51: 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 52: Annexures
Annexures 52
Slide 53: 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 54: Awards & Accolades
AWARDS & ACCOLADES IBA – Banking Technology Award 2021 Mother Teresa Award: For corporate Best IT Risk & Cyber Security citizen of the year For 2021. Initiatives (amongst SFB / Payments Bank Great Place To Work® Institute: Ranked DSCI Excellence Awards 2021: Winner 11th among ‘India’s Best Companies
Slide 55: Shareholding Pattern
SHAREHOLDING PATTERN Shareholding Pattern (based on holding) as on 31st March, 2022 0.5% Promoter* 0.8% 0.7% 14.7% 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
Slide 56: Ujjivan: Inclusive Growth Philosophy
UJJIVAN: INCLUSIVE GROWTH PHILOSOPHY CSR Approach Community Development The Bank constantly strives to ensure strong Work with CSR partner organisations for corporate culture which emphasizes on integrating promoting quality of life for marginalized CSR values with business objectives. Communities c
Slide 57: Relief Activities (April 2021 – March 2022)
RELIEF ACTIVITIES (APRIL 2021 – MARCH 2022) Beneficiary 80,256 250 youths/women 6,23,720 public 636 Anganwadi/Asha 459 Healthcare 22 states/UT & 200+ beneficiaries undergone skilled benefitted workers Workers districts vaccinated training • Covid relief activity: - ₹ 3.02 Cr spent in response to the
Slide 58: Thank You
THANK YOU For Investor Queries: Mr. Deepak Khetan +91 7045792752 deepak.khetan@ujjivan.com
Ujjivan Small Finance Bank — Q4 FY22 Earnings Presentation on 6ix