Ujjivan Small Finance Bank Ltd. · NSE:UJJIVANSFB
Ujjivan Small Finance Bank — Q3 FY24 Earnings Presentation
45 slides from Ujjivan Small Finance Bank's earnings presentation, Jan 24, 2024
Slide 1: Exchange filing cover letter
USFB/CS/SE/2023-24/100 Date: January 24, 2024 To, National Stock Exchange of India Limited BSE Limited Listing Department, Listing Compliance, Exchange Plaza, C -1, Block G, Bandra Kurla P.J. Tower, Complex, Bandra (E), Dalal Street, Fort, Mumbai-400 051 Mumbai-400 001 Symbol: UJJIVANSFB Scrip Code:
Slide 2: Press Release: Healthy growth in secured assets, CASA
Press Release Healthy growth in secured assets, CASA; leading to stronger franchise Disbursement up 17%/ 19% YoY for Q3FY24/9MFY24; Gross loan book up 27% YoY; Secured book at 28.3% as of Dec’23 vs 27.5% as of Sep’23; Asset quality continues to be healthy with GNPA/NNPA at 2.1%/0.16% & PAR at 3.6%;
Slide 3: MD & CEO statement
Mr. Ittira Davis, MD & CEO, Ujjivan Small Finance Bank said, “Q3FY24 was yet another good quarter with healthy disbursements and high deposit accretion supported by strong CASA growth. Focus towards improving our secured book continued, increasing to 28.3% for the quarter vs 27.5% in the last quarte
Slide 4: About Ujjivan Small Finance Bank; Safe Harbour
About Ujjivan Small Finance Bank Limited: Ujjivan Small Finance Bank Limited is a small finance bank licensed under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of small finance bank in India. Bank serves ~82 lakh customers through 729 branches and 21,796 employees spr
Slide 5: Q3FY24 Investor Presentation
Q3FY24 INVESTOR PRESENTATION
Slide 6: 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 7: Key Highlights – Q3FY24 (1/3)
KEY HIGHLIGHTS – Q3FY24 (1/3) Gross Loan Book Total Deposits Retail TD*+ CASA ₹ 27,743 cr ₹ 29,669 cr ₹ 20,389 cr Up 27% yoy Up 28% yoy Up 34% yoy Dec'22: ₹21,895 cr Dec'22: ₹23,203 cr Dec'22: ₹15,242 cr GNPA/NNPA CRAR Employees 2.1%/0.16% 24.4% 21,796 Down 131 bps/Up 11 bps yoy Down 165 bps yoy Up
Slide 8: Key Highlights – Q3FY24/9MFY24 (2/3)
KEY HIGHLIGHTS – Q3FY24/ 9MFY24 (2/3) Q3FY24 Vs Q3FY23 9MFY24 Vs 9MFY23 NII ₹ 860 cr Up 23% Vs ₹ 697 cr ₹ 2,476 cr Up 26% Vs ₹ 1,960 cr NIM 8.8% Down 61 bps Vs 9.4% 8.9% Down 67 bps Vs 9.6% PPoP ₹ 457 cr Up 18% Vs ₹ 389 cr ₹ 1,399 cr Up 30% Vs ₹ 1,074 cr PAT ₹ 300 cr Up 2% Vs ₹ 293 cr ₹ 952 cr Up 20
Slide 9: Key Highlights (3/3)
KEY HIGHLIGHTS (3/3) Credit Rating Ratings upgrade towards long term facilities by CARE to AA- (Stable) from A+ (Positive) Secured:- Secured book* inching up; 28.3% as on Dec’23 vs 27.5% as on Sep’23 Affordable Housing:- Total of 13 hubs active as on Dec’23 complementing the branches in servicing As
Slide 10: Liabilities: Driving Retail Deposit Base
Liabilities: Driving Retail Deposit Base 6
Slide 11: Strong deposit growth with retail at fore-front
STRONG DEPOSIT GROWTH WITH RETAIL AT FORE-FRONT Total liabilities profile (₹ in crore) Deposits break-up (₹ in crore) CASA break-up (₹ in crore) Refinance Deposits Others Bulk TD Retail TD CASA CD SA CA 32,872 33,381 29,139 29,669 7,556 2,512 2,589 388 168 7,012 25,521 23,203 7,556 672 1,156 7,012 6
Slide 12: Well-diversified deposit mix
WELL-DIVERSIFIED DEPOSIT MIX Deposits from individual continues to grow with our focus on building granular deposit base 8
Slide 13: Assets: Well-diversified growth with new customer acquisition
Assets: Well-diversified growth with new customer acquisition 9
Slide 14: Gross loan book and disbursement trend
GROSS LOAN BOOK AND DISBURSEMENT TREND Strong disbursements (₹ in crore) Consistent growth in Gross Loan Book (₹ in crore) Contribution from 28% 27% 27% 27% 28% Secured Book (%) 6,001 27,743 5,749 5,675 26,574 25,326 5,284 24,085 4,841 21,895 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Dec'22 Mar'23 Jun'23 S
Slide 15: Growing across segments
GROWING ACROSS SEGMENTS Gross Loan Book – Segment wise (₹ in crore) % Gross Growth Growth Product Loan Book YoY QoQ MGL IL MSME AH* FIG Others 27,743 Micro Group Loans 56% 21% 2% 26,574 719 642 1,435 1,304 Individual Loans 16% 64% 10% 21,895 4,417 4,036 543 1,010 1,397 1,442 MSME 5% (20)% (3)% 3,144
Slide 16: Disbursement, yield and average ticket size
DISBURSEMENT, YIELD AND AVERAGE TICKET SIZE Product wise Disbursement (₹ in crore) Yield (%) – Segment wise MGL MGL+IL Overall MSME AH (Ex MLAP) IL 22.0% 22.2% MSME 21.0% AH* 16,708 19.2% 19.3% 5,749 5,675 18.4% FIG Others^ 1,208 520 272 379 992 14.0% 293 14,036 4,838 12.5% 12.7% 593 294 595 1,554 5
Slide 17: Sustained improvement in asset quality
Sustained improvement in asset quality 13
Slide 18: Collections sustaining; NDA collections at ~100%
COLLECTIONS SUSTAINING; NDA COLLECTIONS AT ~100% Collection % (against month due) Collection Efficiency % (incl Additional collections) Cashless MB collections 117% 115% 40% 112% 112% 111% 112% 111% 37% 111% 110% 110% 110% 111% 109% 31% 29% 26% 100% 99% 100% 100% 99% 99% 99% 99% 99% 99% 99% 98% 99%
Slide 19: Collection efficiency
COLLECTION EFFICIENCY ₹ Crore Oct’23 Nov’23 Dec’23 Additional Additional Additional Verticals Due Collection % Due Collection % Due Collection % Collection Collection Collection MGL+IL 1,449.8 1,435.0* 99% 112.5 1,488.8 1,469.5* 99% 102.5 1,504.1 1,487.5* 99% 129.2 Affordable 54.2 52.4 97% 48.8 55.7
Slide 20: Sustained collections driving better asset quality
SUSTAINED COLLECTIONS DRIVING BETTER ASSET QUALITY NPA & SMA have shrunk significantly YTD NPA Movement Table# PAR GNPA SMA NNPA 4.9% 3.8% 3.8% 198 3.4% 3.7% 3.6% 2.6% 2.4% 2.2% 2.1% 347 1.5% 1.2% 1.5% 1.5% 1.6% 0.05% 0.04% 0.06% 0.09% 0.16% 209 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 PAR 0 and GNPA (seg
Slide 21: Floating provision; cushioning P&L
FLOATING PROVISION; CUSHIONING P&L Std+NPA Provision Floating PCR% 12 00 (₹ in cr) 11 0% 142 99% 98% 98% 96% 10 0% 92% 10 00 100 842 90 % Total NPA provision of 30 800 747 ₹529 Crs Floating 150 715 701 80 % 671 120 Provision of 120 ₹250 Crs 120 120 600 120 70 % 801 60 % PCR @92% excluding floating p
Slide 22: Restructured book at 0.4% of gross loan book
RESTRUCTURED BOOK AT 0.4% OF GROSS LOAN BOOK Restructured Book Significant reduction in stress book ₹ crores RF 1.0 RF 2.0 Total 18.4% GNPA+RF Book Micro Banking (GL+IL) 43 15 57 PAR+RF Book Housing 6 14 20 14.5% MSME 4 35 38 11.7% 9.2% Loan Book 53 63 116 9.7% 6.8% PAR 48 46 95 7.4% 5.3% 4.0% 4.0%
Slide 23: Financial Overview
Financial Overview 19
Slide 24: Financial overview
FINANCIAL OVERVIEW Cost to Income Ratio & Operating Pre-Provision Operating Profit & PPoP NII (₹ in crore) & NIM* Expenses/ Average Assets (%) (RoA) 1,100 9.4% 9.2% 100% 9.1% 8.8% 8.8% 6.4% 5.4% 5.4% 5.3% 7.0% 1,000 10.0% 6.2% 5.2% 90% 6.0% 6.1% 525 900 80% 6.0% 6.5% 4.7% 8.0% 70% 5.7% 6.0% 425 5.0%
Slide 25: Financial overview
FINANCIAL OVERVIEW PAT (₹ in crore) & RoE EPS* (₹) Net worth (₹ in crore) & BVPS (₹) 450 35.6% 30.3% 2.50 6000 29.7% 29.8% 400 28.0% 30.6% 5000 2.00 350 24.2% 25.6% 4000 1.50 300 5,083 4,771 4,539 20.6% 3000 4,209 4,064 250 1.00 310 324 328 15.6% 1.50 1.53 1.66 1.68 1.53 2000 200 293 300 0.50 1000 1
Slide 26: Income statement
INCOME STATEMENT Particulars (₹ in crore) Q3FY24 Q3FY23 YoY Growth Q2FY24 QoQ Growth 9MFY24 9MFY23 YoY Growth Interest Earned 1,471 1,082 36% 1,391 6% 4,149 2,980 39% Other Income 185 139 33% 189 (2)% 551 410 34% Total Income 1,655 1,221 36% 1,580 5% 4,699 3,390 39% Interest Expended 611 385 59% 568
Slide 27: Total income - breakup
TOTAL INCOME - BREAKUP Particulars (₹ in crore) Q3FY24 Q3FY23 YoY Growth Q2FY24 QoQ Growth 9MFY24 9MFY23 YoY Growth Interest on loan 1,283 957 34% 1,210 6% 3,627 2,670 36% Int. on investments 184 118 56% 177 4% 510 287 78% Securitization Income 3 7 (55)% 4 (28)% 12 22 (48)% Total Interest Earned 1,4
Slide 28: Balance sheet
BALANCE SHEET As at As at As at Particulars (₹ in crore) Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 CAPITAL AND LIABILITIES Net worth 5,083 4,771 3,769 Capital 2,157 2,156 2,155 Employees Stock Options Outstanding 63 55 47 Reserves and Surplus 2,863 2,560 1,862 Deposits 29,669 29,139 23,203 Borrowings 3
Slide 29: Healthy capital adequacy
HEALTHY CAPITAL ADEQUACY (₹ in Crore) Dec’22 Mar’23 Jun’23 Sep’23 Dec’23 Credit Risk Weighted Assets 15,369 16,361 17,012 18,839 20,924 Tier I Capital 3,511 3,712 4,018 4,239 4,597 Tier II Capital* 488 511 522 506 503 Total Capital 3,999 4,223 4,541 4,745 5,099 CRAR 26.02% 25.81% 26.69% 25.19% 24.37
Slide 30: Guidance
GUIDANCE Asset Deposits Ratios FY24 Gross Loan Book Growth- >25% NIM: ~ 9.0% Deposit Growth: >30% Credit Cost: <100bps RoE: >22% FY25/ FY26 Retain our FY25/FY26 guidance on growth & profitability 26
Slide 31: Ujjivan – Platform for growth
Ujjivan – Platform for growth Please refer to Investor Meet Presentation for more details uploaded on our website, www.ujjivansfb.in 27
Slide 32: Serving customers through multiple channels
SERVING CUSTOMERS THROUGH MULTIPLE CHANNELS ● Web-based Business Internet Banking application ● High volume bulk upload facility ● 577 biometric enabled ATMs including 62 ACRs* ● Customizable client centric approval matrix ● Customer alerts for each incorrect PIN entry & Green ● Single sign on for a
Slide 33: Well diversified pan India presence
WELL DIVERSIFIED PAN INDIA PRESENCE; ADDED 29 NEW BRANCHES DURING THE QUARTER • 26 states and UTs (187 URCs) Dec’23 Gross Loan Book (%) • 729 Banking Outlets (BO) • 321 districts TN 14.1% • 577 ATMs# KA 13.1% • 5k+ Electronic Collection Retail WB 2 CH:2 12.0% Points (ECRP) 17 MH 9.1% 6 GJ 7.9% 39 DL
Slide 34: Expanding customer base
EXPANDING CUSTOMER BASE Customer Base Growth Customer Base – Basis of Branch Classification Asset Only Asset & Liability Liability Only 82.4 9% In Lakhs 79.4 76.9 75.5 73.0 37% 24% 35.1 33.4 34.4 31.4 32.2 30% Urban Semi-urban Metro Rural *Semi-Urban branches largely cater to rural customers 40.3 42
Slide 35: Comprehensive suite of products & services
COMPREHENSIVE SUITE OF PRODUCTS & SERVICES Micro, Small & Medium Micro-Banking Enterprise Loans Affordable Housing Loans Financial Institutions Group Others • Group Loans Loan • Individual Loans • Construction and Purchase • Top up Loans • Term loan to NBFCs, HFCs • Two-wheeler loans • Home Improvem
Slide 36: Strong independent board (1/2)
STRONG INDEPENDENT BOARD (1/2) Name Education Experience Banavar Anantharamaiah Retired as Chairman and Managing Director of Andhra Bank after serving various Banks for about Prabhakar Commerce graduate, University of 37 years. Prior to that he served as the Executive Director of Bank of India for a
Slide 37: Strong independent board (2/2)
STRONG INDEPENDENT BOARD (2/2) Name Education Experience Career banker for nearly four decades with SBI as well as its associate banks. Handled varied Rajni Mishra M.Com (Gold Medallist), MS University, assignments and diverse portfolios, gained exposure in risk management, branch administration, In
Slide 38: 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 39: Annexures
Annexures 35
Slide 40: Awards & accolades
AWARDS & ACCOLADES Technology Senate Awards 2023 Skoch Award In the “Enterprise Security” For Information Security BFSI & Fintech- Conclave and Awards BFSI & Fintech- Conclave and 2023 Awards 2023 Digital Security Most admired cyber security initiative of the year Quantic 18th Annual Summit & Awards
Slide 41: Shareholding pattern – Dec'23
SHAREHOLDING PATTERN – DEC’23 Promoter* MF Insurance Companies Resident Individuals/HUF Foreign investors Alternative Investment Fund Others 1.7% 3.7% 1.3% 17.0% 1.3% 1.3% 73.6% *Promoter is Ujjivan Financial Services Ltd, a Core Investment Company and listed on NSE/ BSE 37
Slide 42: Financial Literacy Program (FLP)
FINANCIAL LITERACY PROGRAM (FLP) Diksha+ Pro 14,927 Customers and 84,446 customers trained in Diksha+. community people across 162 branches have attended 90% of the customers were certified Financial Literacy Camp 44% Shown interest for different banking products 31% Customers accessed different ban
Slide 43: Corporate Social Responsibility (CSR)
CORPORATE SOCIAL RESPONSIBILITY (CSR) Cleanliness Drive About 4,800+ employees volunteered in the Swachh Neighbourhood drive across 183 branches YTD. 335+ employees engaged with CSR partners like proVISION Asia, Calcutta Social Project, Pi Jam & Disaster relief provided at Chennai Maithree society,
Slide 44: Environment, Social & Governance (ESG)
ENVIRONMENT, SOCIAL & GOVERNANCE (ESG) Sustainable Operations Customer Centricity • Service Index levels – Target 5 points – Actuals – 3- 01 • Waste management • LED Bulbs in 99 % of offices (Target 75%) point increase ( from 83 – 86 ) • Capacity Building for Aajeevan Reach – Target 50% - 04 Actiual
Slide 45: Thank you
THANK YOU For Investor Queries: Mr. Deepak Khetan +91 7045792752 deepak.khetan@ujjivan.com
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