Au Small Finance Bank Limited · NSE:AUBANK
Au Small Finance Bank — 9M FY21 Earnings Presentation
44 slides from Au Small Finance Bank's earnings presentation, January 2021
Slide 1: Investor Presentation 9M / Q3FY21
Digital-Led I Retail Focused I Customer Centric I Well Capitalized I Inclusive Investor Presentation 9M / Q3FY21 January 2021 1
Slide 2: Table of Contents
Table of Contents 1. 9M / Q3FY21 Performance Highlights 2. Key focus : Asset Quality 3. Building a Digital Bank 4. Branch Banking Overview 5. Assets Overview 6. Other Key Updates 2
Slide 3: 1. 9M / Q3FY21 Performance Highlights
1. 9M / Q3FY21 Performance Highlights 3
Slide 4: 9M/Q3FY21 Key Highlights
9M/Q3FY21 Key Highlights Operating Environment ➢ Overall sentiment continues to improve with high recovery rates, declining number of new cases, and commencement of vaccination ➢ Demand has normalized in most segments in Q3FY21 ; Q4FY21 is expected to be significantly better ➢ Disproportionately imp
Slide 5: 9M/Q3FY21 Key Highlights
9M/Q3FY21 Key Highlights Q3FY21 performance Highlights ➢ Strengthened Digital Banking channels – new age Super App for MB/IB, traction across payment channels, launched credit cards internally for employees ➢ Disbursements growth at 34% YoY in Q3FY21 driven by growth in demand across most key segmen
Slide 6: 9M/Q3FY21 Key Highlights
9M/Q3FY21 Key Highlights Digital Banking – Moving towards a Digital-led Bank ➢ Remain actively engaged in mutually beneficial partnerships with major e-commerce players via offer campaigns; ➢ Best of E-Com players are more open to engage with us given our tech capabilities in API banking and our div
Slide 7: 9M/Q3FY21 Key Highlights
9M/Q3FY21 Key Highlights Branch Banking – Building a sustainable granular franchise ➢ Continued traction in retailization of deposits and deepening of customers – Individual Driven Banking* contributes ~60% of branch deposits as on Q3FY21 vs. 36% in Q3FY20 ➢ 28% YoY growth in branch banking deposits
Slide 8: Spreads improved through efficient cost management
Spreads improved through efficient cost management Incremental Spreads AUM Spreads 15.3% 14.7% 14.4% 14.3% 13.9% 13.2% 8.0% 8.1% 7.4% 7.6% 7.1% 7.6% 7.3% 7.1% 7.0% 6.7% 6.1% 5.8% Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q3FY21 Incremental COF Disb Yield Spread AUM COF AUM Yield Spread ➢ Pick up in demand
Slide 9: Geographic split of business
Geographic split of business Liabilities Break up Assets Break up 27% 35% Garnering Deposits from urban markets and Urban Markets Core Markets disbursing in core markets 73% 65% 1% 1% 2% RAJASTHAN 3% 2% 4% MAHARASHTRA 5% 27% DELHI NCR 16% 6% PUNJAB 42% 9% GUJARAT MADHYA PRADESH 10% HARYANA 5% 17% HI
Slide 10: 9M / Q3FY21 Key Financial Highlights
9M / Q3FY21 Key Financial Highlights 15 States and 2 UTs Touchpoints Customers Employees 728 18.8 lakh 18,992 Vs. Vs. Vs. 624 15.9 lakh 15,308 (31-Dec-19) (31-Dec-19) (31-Dec-19) Loan Assets Under Total B/S Assets Disbursements1 Deposits3 CASA Ratio# Management2 ₹ Crore ₹ Crore ₹ Crore ₹ Crore 46,60
Slide 11: 9M / Q3FY21 Key Financial Highlights
9M / Q3FY21 Key Financial Highlights Total Income Net Interest Income PAT Net Worth ₹ Crore ₹ Crore ₹ Crore ₹ Crore 4,833 Income (pre- 651 tax) from Sale 1,002 3,625 of part stake Profit (after 5,403 77 4,181 in Aavas 1,710 448 tax & net of 3,548 Financiers add’l 4,237 Ltd. 1354 552 provisions) 71 f
Slide 12: Profitability Trends
Profitability Trends *Including Profit from Sale of part stake in Aavas Financiers Ltd. RoE2 (%) RoA1 (%) 37.1%* 4.2%* 27.1%* 27.3%* 2.9%* 3.0%* 19.9%* 2.1%* 2.1% 1.8% 1.6% 1.8% 1.7% 19.6% 16.5% 14.0% 17.4% 15.1% Q3FY20 Q2FY21 Q3FY21 9MFY20 9MFY21 Q3FY20 Q2FY21 Q3FY21 9MFY20 9MFY21 ROA / ROE – Compo
Slide 13: Profit & Loss Statement
Profit & Loss Statement (All Figures in ₹ Crore) 9M FY21 9M FY20 Y-o-Y Q3FY21 Q3FY20 Y-o-Y Q2FY21 Q-o-Q Unaudited Unaudited Unaudited Unaudited Unaudited Income Interest Earned 3,658 3,102 18% 1,261 1,112 13% 1,212 4% Interest Expended 1,948 1,748 11% 628 605 4% 652 -4% Net Interest Income 1,710 1,3
Slide 14: Balance Sheet – Total Assets grew 21% YoY
Balance Sheet – Total Assets grew 21% YoY (All Figures in ₹ Crore) Dec 31, 2020 Dec 31 , 2019 Y-o-Y Sep 30 , 2020 Q-o-Q Unaudited Unaudited Unaudited Liabilities Capital 307 304 1% 307 - Money received against Share Warrants - - - - - Employees stock options outstanding 49 57 -14% 52 -6% Reserves an
Slide 15: Breakup of Other Income
Breakup of Other Income (All Figures in ₹ Crore) Q3FY20 Q2FY21 Q3FY21 Unaudited Unaudited Unaudited Loan Assets Processing & Other fees 87 54 101 General Banking & Deposits related fees 18 23 28 Cross Sell, Distribution related fees & others 10 6 7 PSLC Premium / Fees 25 8 8 Income from Treasury Ope
Slide 16: 2. Key focus : Asset Quality
2. Key focus : Asset Quality 16
Slide 17: Collection Efficiency - Normalcy achieved in almost all segments
Collection Efficiency - Normalcy achieved in almost all segments Product Dec-20 Q3FY21 Q2FY21 Q3FY20 SBL 113% 108% 106% 99% Wheels 98% 92% 89% 99% NBFC 99% 99% 105% 100% Business Banking 97% 100% 105% 96% REG 105% 102% 110% 91% Agri 146% 113% 119% 94% Home Loan 124% 126% 112% 100% SME 149% 126% 106%
Slide 18: Customer Activation – Normalcy achieved in almost all segments
Customer Activation – Normalcy achieved in almost all segments December-2020 % of Gross Advances Product Total Gross Advances Full Part (₹ Cr) SBL 12,343 84% 8% Wheels 11,262 81% 6% NBFC 1,399 99% 0% Business Banking 1,348 96% 2% REG 634 86% 12% Agri 869 93% 4% Home Loan 987 93% 3% SME 497 75% 14% G
Slide 19: Break up of Credit Cost
Break up of Credit Cost Credit Cost - Net Impact on P/L Q3FY20 Q2FY21 Q3FY21 (All Figures in ₹ Crore) Unaudited Unaudited Unaudited Repossession Loss 11 5 7 *During the POS Loss 4 3 4 quarter, the bank Write off 2 0 86* sold ₹ 93.6 Cr Less: Bad Debt Recovery -5 -2 2 pool to an ARC Net Credit Loss 12
Slide 20: Details on Provisions
Details on Provisions Amount Provisioning Coverage Particulars (in Cr) (in Cr) (%) Total Proforma GNPA (A) 1,017 625 61% Gross NPA 303 230 76% Proforma Slippages 714 395 55% Additional Contingency Provisions (B) 143 Contingency Buffer 108 Add’l for restructured assets (Excl. std prov) 251 35 Standar
Slide 21: Segmental break up of NPAs
Segmental break up of NPAs ₹ Crore Segmental break-up of NPA and restructured Assets Proforma Total % of Proforma Restructured Product Reported NPA % NPA Proforma NPA NPA Cases Wheels 99 386 485 48% 105 42% SBL 122 248 370 36% 98 39% Agri-SME 50 30 80 8% 38 15% Others 31 50 81 8% 10 4% Grand Total 3
Slide 22: 3. Building a Digital Bank
3. Building a Digital Bank 22
Slide 23: Focus on Customer Experience and Increasing Digital Product Offering
Focus on Customer Experience and Increasing Digital Product Offering ▪ Upgraded Mobile Banking and Internet Banking platform; launched in Q3FY21 with 130+ new functionalities ▪ 10+ new end-to-end banking service & product journeys for both NTB and ETB customers scheduled for launch in Q1FY22 Deposit
Slide 24: Serving Customers across Digital Channels
Serving Customers across Digital Channels Video Tele Banking ATM Banking (IVR) ~1K deposits’ customers onboarded. Resolved 3.5+ lakh customer service ~50 lakh transactions worth ~2,450 Channel being extended to other requests raised by 2+ lakh Cr. executed in Q3FY21 products and services customers C
Slide 25: Increasing Customer Transactions across MB / IB and Payments
Increasing Customer Transactions across MB / IB and Payments Mobile and Internet Banking - Monthly and Daily Active Users Mobile and Internet Banking 150 25 Thousands (DAU) Thousands ▪ Steady increase in DAU and MAU over 120 20 90 15 last 6 months driven by digital 60 10 migration, organic growth, e
Slide 26: Building Capabilities to Enhance Productivity
Building Capabilities to Enhance Productivity Tab Banking Tab based journeys for lending products - SBL (live); Home Loan and Wheels to be launched in FY22 Leveraging Tab Banking across products customer onboarding to enhance experience, reduce TAT and optimize workforce productivity 90%+ deposits a
Slide 27: API Banking
Building API Stack to Partner with the Ecosystem Current / Upcoming Engagements Offers ` Unsecured Lending API Banking Secured Lending Deposits Payments Investments 27
Slide 28: 4. Branch Banking Overview
4. Branch Banking Overview 28
Slide 29: Deposits Journey – Moving to a sustainable granular franchise
Deposits Journey – Moving to a sustainable granular franchise Key turning points Core Principles of our Deposit Strategy Our Performance Deposit as Retail Key events a % of Deposits as external a % of total liabilities deposit April’17 (Bank Launch) N/A N/A Sept’18 (NBFC Crisis + 21% 35% Branch vint
Slide 30: Building blocks in place for a strong deposit franchise
Building blocks in place for a strong deposit franchise • Won APY • 16 New • New Partners- Premier League Branches ICICI Prudential of PFRDA Oct • Lucknow, Life Insurance, 2020 Hyderabad, Care Health • Granular Bhubaneshwar Insurance distribution of & Kolkata • Digital Social Security Onboarding Sch
Slide 31: Offers and Engagement aiding Activation and Deepening
Offers and Engagement aiding Activation and Deepening Offers across major brands Shopping Festival and Pre-Approved Offers on Maruti Suzuki NEXA 78% Debit Card users on Amazon were new activations Hyperlocal Debit Card Offers across cities Events for Customer Engagement Key Metrics (scaled) Mar’20 S
Slide 32: Branch Banking - Snapshot
Branch Banking - Snapshot Growing Deposit Franchise Average Monthly Balance in ₹ Crore in ₹ Crore 33% of the Term 28,203 Deposits are non- 27,201 25,346 callable [Bulk TD – 24,300 22,052 61% non-callable] 21,123 21,758 Growth 21,103 20,008 19,376 18,309 Y-o-Y Q-o-Q 17,786 Total Deposits* 28% 11% Sav
Slide 33: Branch Banking – Deposit profile
Branch Banking – Deposit profile Profile of Deposits1 spread across segments – Individual base increased its share from 36% to 59% in the past year 4% 4% 4% 5% 6% TASC Contribution of Banks and 10% 8% 8% 7% 8% corporates has come down 7% from 49% to 28% over the 14% Govt. 19% 21% 21% year 21% 25% 26
Slide 34: 5. Assets Overview
5. Assets Overview 34
Slide 35: Disbursements and AUM Trends
Disbursements and AUM Trends in ₹ Crore Disbursements AUM YoY Growth YoY Growth 11% 34% 33,222 6,519 30,590 29,867 4,870 3,409 Q3FY20 Q2FY21* Q3FY21** Q3FY20 Q2FY21 Q3FY21 *Includes ₹ 53 Cr disbursed under TLTRO and ₹ 354 Cr disbursed under ECLGS Scheme **Includes ₹ 150 Cr disbursed under ECLGS Sche
Slide 36: AUM mix – Retail AUM constitutes 91%
AUM mix – Retail AUM constitutes 91% Retail Assets Corporate Assets AUM as on 31st % of Category (Amount in ₹ Cr) Amount % of category Amount % of category Dec 2020 total Wheels* 13,473 99% 76 1% 13,549 41% New 8,487 99% 76 1% 8,563 Used & CoW 4,986 100% - 0% 4,986 SBL-MSME 12,858 100% 10 0% 12,868
Slide 37: 6. Other Key Updates
6. Other Key Updates 37
Slide 38: Well entrenched contiguous distribution franchise
Well entrenched contiguous distribution franchise 15 States and 728 Touchpoints 341 ATMs No. of Touch points 2 UTs Urban Market Core Market Total Presence# Presence# 714 Branches1, 14 BCs 166 562 728 Break up of branches States & UT Total Branches Rajasthan 311 Madhya Pradesh 104 Jammu & Kashmir Pun
Slide 39: Inclusive Banking
Inclusive Banking Financial Inclusion – driving key government initiatives During the quarter, the Bank ➢ Disbursed 21,252 MUDRA Loans ➢ Opened 12,269 Basic Savings Bank Deposit Account (BSBDA) accounts\ ➢ Enrolled 1,368 customers in Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) ➢ Enrolled 3,978
Slide 40: Experienced Board of Directors
Experienced Board of Directors Mr. Raj Vikash Verma Mr. V G Kannan Mr. Krishan Kant Rathi Chairman and Independent Director Independent Director Independent Director 40+ years of experience 38+ years of experience in Banking 34+ years of experience Industry Masters in Economics, MBA (FMS), CAIIB MBA
Slide 41: Marquee Shareholders Base – As on 20th Jan 2021
Marquee Shareholders Base – As on 20th Jan 2021 Shareholding Break –up Key Shareholders (Holding 1%+) Holding on 20-Jan-21 Promoter & Promoter Group 29.0% Foreign Institutions (FC, Promoter & AU Employees incl. Exec. Director 3.3% FPI, FII) & NRI Promoter Group - Domestic, 29.0% Wasatch 4.9% (Non-re
Slide 42: THANK YOU
THANK YOU TOPIC For Investor queries contact (details in QR Code): Prince Tiwari | Aseem Pant | Ayush Rungta 42 Email: investorrelations@aubank.in
Slide 43: Abbreviations
Abbreviations ADC Alternate Delivery Channels NPA Non Performing Assets AFS Available for Sale NSE National Stock Exchange ALM Asset Liability Management OPEX Operating Expenses AUM Asset Under Management P/L Profit & Loss Statement BSBDA Basic Savings Bank Deposit A/C PAT Profit After Tax BSE Bomba
Slide 44: Disclaimer
Disclaimer This presentation has been prepared by AU 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 the Ban
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