Jana Small Finance Bank Ltd · NSE:JSFB
Jana Small Finance Bank — 9MFY24 Earnings Presentation
30 slides from Jana Small Finance Bank's earnings presentation, February 2024
Slide 1: Jana Small Finance Bank Investor Presentation
Jana Small Finance Bank Investor Presentation February 2024
Slide 2: Key Highlights – Highest ever PAT of Rs. 348 crores (9MFY24)
Key Highlights – Highest ever PAT of Rs. 348 crores (9MFY24) Asset Capital Operational Assets Liabilities Ratios P&L Metrics Quality Structure Metrics Rs. 23,610 Crs / 28.4% Rs. 20,785 Crs / 36.5% 2.1% 2,718 Crs 781 1.7% [1.1%] Rs. 348 Crs Advances1 / Growth Deposits / Growth Gross NPA* Net worth Ba
Slide 3: National franchise with strong brand recognition
National franchise with strong brand recognition Distribution of bank branches Presence in Unbanked Rural Centers MFI through BCs 781 Unbanked Rural Centres % of Total Outlets Business Correspondent (BC) Operated Outlets Bank Branches Banking Outlets Advances sourced by BCs / Total Advances1 (%) 36.
Slide 4: Secured Lending has become Core Business
Secured Lending has become Core Business Asset Products Key Metrics for Asset Products 23,610 Advances1 Category of Advance Average Average 779 2.75Yr GNPA4 NNPA4 (As at December 31, Tenure Ticket Size LTV5 CAGR3 (%) (%) 19,808 3,698 2023) (Months) (Rs. Mn) 2 (%) 686 18,394 3,094 861 15,255 5,076 Mi
Slide 5: De-risking paying off
De-risking paying off Focus on making secured the core Low geographical concentration Maharashtra Tamil Nadu Karnataka Gujarat Madhya Pradesh Rajasthan Uttar Pradesh Others Secured Advances1 (Rs. Crs) 14,056 28% 30% 35% 34% 11,045 59.5% 1% 55.8% 4% 3% 7% 19% 6% 5% 6% 7% 25% 6% 7% 6% 7,662 28% 28% 8%
Slide 6: Best in class risk Management
Best in class risk Management API based digital Process Portfolio Management Customised Score Card & Early Warning Bureau Bounce Incidence Refreshed bureau Bank Statements Internal risk score Financials Key Account Manager Updated financial GST information , bank Personal Discussion statements
Slide 7: The shape of future MFI – Digital and customized
The shape of future MFI – Digital and customized Product Wise Digital Growth (Mar Dec-23 ATS GNPA NNPA PCR AUM Payment 23 - Dec 23) Individual Loan 5,073 36.5% 45,750 1.9% 3.5% 0.8% 77.3% BC Book 2,442 17.0% 30,794 30.8% 3.0% 0.4% 86.6% Agricultural 1,593 5.8% 29,640 3.6% 2.7% 1.0% 62.8% Group Loans
Slide 8: Becoming Anchor bank to our customers
Becoming Anchor bank to our customers Product L1 L2 L3 L4+ Agri 3,211 435 35 17 GL 666 69 26 18 IL 644 1,314 1,492 1,626 Overall 4,521 1,817 1,553 1,661 RFS Overall - % Portfolio Existing Customers Agri Loans - % Portfolio Existing Customers GL and IL - % Portfolio Existing Customers 79.9% 12.8% 70.
Slide 9: Bring Your Bank Home
Bring Your Bank Home Home Loan leading to Anchor Bank with Multiple Product Offerings and Special Benefits Two Wheeler loans • Pre-approved Two Wheeler loans Pre-approved loan • 100% funding to the vehicle value • Additional Top-up line upto Rs. 5 lakhs available through the • Lower Processing fee –
Slide 10: Becoming Anchor bank to our customers
Becoming Anchor bank to our customers #Average CASA Penetration TD/RD Penetration Health Insurance Penetration Relationships 14% 91% 3.5 98% 2.4 64% 3% 11% PRE-HOME360 Customers POST-HOME360 PRE-HOME360 Customers POST-HOME360 Customers PRE-HOME360 Customers POST-HOME360 Customers Customers PRE-HOME3
Slide 11: Fast growing retail deposit base with a diversified deposit franchise
Fast growing retail deposit base with a diversified deposit franchise Rapidly growing deposit portfolio Diversified deposit base… Reducing share of top states in deposit mix Maharashtra Tamil Nadu Karnataka West Bengal Punjab Delhi Uttar Pradesh Others 20,785 19% CASA 22.5% 38% Rs. 20,785 31% 16,334
Slide 12: Deposits – Huge opportunities to grow
Deposits – Huge opportunities to grow Optimize Distribution network –Mobilize Low-cost, stable retail deposits. Build momentum on CASA acquisitions No. of Branches Avg CASA Book Avg Deposit Book 261 17 105 153 38 5 40 47 8 0.9 1.4 3 < 1 Year 1-3 Years 3- 4 Years > 4 Years < 1 Year 1-3 Years 3- 4 Yea
Slide 13: Digital – A way of life!
Digital – A way of life! Jana Digitization 90% + Digital Uptake 99 % 98 % 92 % 90 % Digital Highlights Digital Channels SA Accounts Banking Txns Loans are Digitally Sales force use opened Digitally are Digital processed TAB/Mobile Key Highlights Merchant QR 12,821 QR Codes Installed across merchants
Slide 14: Key Financials
Cor y Jana Small coo Finance Bank A SCHEDULED COMMERCIAL BANK Key Financials 4
Slide 15: ROE and ROA normalizing with NIM holding against deposit cost growth
ROE and ROA normalizing with NIM holding against deposit cost growth Return ratios trending upwards NIMs have improved in spite of Cost of Funds increase RoE (%) RoA (%) NIM (%) Yield on Advances (%) 20.2% 21.8% 19.9% 19.5% 16.8% 18.1% 6.5% 8.4% 7.3% 7.7% 7.9% 0.5% 1.5% 1.1% 1.7% 0.1% FY21 FY22 FY23
Slide 16: GNPA and NNPA normalized with best till date PAT
GNPA and NNPA normalized with best till date PAT With improving asset quality and increasing PCR Y-o-Y PAT growth of 99% GNPA % NNPA % PCR % Profit after taxes (Rs. Crs) 27.9% 32.2% 34.0% 67.9% GNPA / NNPA 348 6.7% Secured Book 256 5.0% 0.9% / 0.6% 3.6% 175 4.8% 2.1% 72 3.4% GNPA / NNPA 2.4% 0.7% 17
Slide 17: GNPA and NNPA returning to Pre-COVID levels
GNPA and NNPA returning to Pre-COVID levels GNPA and NNPA returning to Pre-COVID levels Restructured Portfolio @ 0.5% of AUM INR crs Dec-23 Particulars Secured Unsecured BC Total Group Loans 11 Agricultural and allied Loans 1 Gross NPA 124 290 74 487 Individual and Micro Business loans 6 Net NPA 88
Slide 18: Credit cost Ratio improving
Credit cost Ratio improving Net Credit Cost Net Credit Cost % of AUM 3.36% 2.46% 2.46% 2.57% 2.31% 512 487 409 354 314 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 Particulars Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 Credit Cost 367 569 744 545 504 Recoveries under other income 53 57 257 190 95 Net Credit Cost 314
Slide 19: Profile
Cor y Jana Small coo Finance Bank A SCHEDULED COMMERCIAL BANK Profile 19
Slide 20: Experienced and professional management and Board
Experienced and professional management and Board Experienced board with diverse business experience in well-known financial services institutions and banks Name & Designation Past Experience Name & Designation Past Experience • Insurance Regulatory and Subhash Chandra Khuntia Development Authority
Slide 21: Experienced and professional management and Board
Experienced and professional management and Board International best practices in risk management, compliance and governance introduced by management with an average experience of 27 years in financial services Name & Designation Past Experience Name & Designation Past Experience Name & Designation
Slide 22: Our Journey - Bank History, Key Milestones & Achievements
Our Journey - Bank History, Key Milestones & Achievements 4th largest Small Focusing on a Focus on Finance Bank in Serving Focused on Strong customer centric diversifying Access to low- Strong emphasis India in terms of underbanked MSME and technology base approach to advances by cost diversified on
Slide 23: Our Strength
Our Strength Digitalised bank and the majority of our services are available in digital form to customers Integrated Risk and Governance Framework Professional and Experienced Management and Board Customer-centric organization with > 16 years’ experience in serving underbanked and underserved custom
Slide 24: Our Strategies
Our Strategies Focus on accelerating secured loans book with the purpose of meeting customers’ needs and diversifying the lending book Reshape the unsecured loans (Microfinance Loans) business Improve the risk profile Enhance the growth of Retail Deposits Alliances with third parties from banking to
Slide 25: CSR led by employees with direct community interaction
CSR led by employees with direct community interaction Promoting Education : • Benches • Fans • Computers Safe Drinking Water : Promoting Health Care : Water filter plant/ RO • Medical Equipment water in schools • Wheel Chairs • Vehicle for drug transportation • Medicine supply to poor 40 CSR Projec
Slide 26: Excellence being recognized
Excellence being recognized Best Fintech & DPI Adoption National Best Employer & Best Data Quality Award By IBA (Indian Banking Dream company to work For By TransUnion CIBIL Association) By World HRD Congress
Slide 27: Thank You
Jana Small Finance Bank A SCHEDULED COMMERCIAL BANK Thank You
Slide 28: Annexures
coo Jana Small coo Finance Bank A SCHEDULED COMMERCIAL BANK 28
Slide 29: Abbreviations
Abbreviations Abbreviation Expansion Abbreviation Expansion CASA Current Account and Savings Account AUM Assets Under Management CRAR Capital-to-Risk Weighted Asset Ratio NBFC Non-Banking Financial Company GNPA Gross Non-Performing Assets MFI Micro Finance institution NNPA Net Non-Performing Assets
Slide 30: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Jana Small Finance Bank (the “Bank”) and no part of it shall form the basis of or be relied upon in connection with an
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