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CONFIDENTIAL © Fincare SFB 2019
Investor PresentationQ3FY20/ 9MFY20
1PRIVATE & CONFIDENTIAL
CONFIDENTIAL © Fincare SFB 2020
Fincare Platform Evolution01
Q3FY20/ 9MFY20 Highlights02
Banking products and Network
Snapshot03
Assets Snapshot04
Liabilities and Treasury Snapshot05
Other updates – Q3/ 9M FY2007
Financial Statements & Key Ratios08
Board & Management Team09
2
Table of Contents
Digital Banking Snapshot06
CONFIDENTIAL © Fincare SFB 2020
3
Fincare Platform Evolution01
CONFIDENTIAL © Fincare SFB 2020
• Lok Management Services
established to start the
Business Correspondence
business of the Group
• Consolidation
• Setup of Tech Systems
• ~23% of FFSPL's assets
impacted by AP crisis and
bank debts restructured
• FFSPL recorded significant
provisions against AP loan
book
• Commencement of
microfinance operations of
Disha by Mr. Nanavati, Mr.
Shukla, Mr. Doshi and Mr.
Kothari in Gujarat
• Commencement of
microfinance operations of
FFSPL by Mr. Reddy in South
India
• True North (erstwhile IVFA)
investment in Disha and
FFSPL
• IFAPL established as an
advisory and management
team
2007
2009
2010
2011
2012
2013
Note: IFAPL and FFSPL have been merged with FBSL, effective Oct 2016
Scheme for merger of Lok with FBSL has been filed
Fincare Evolution – Building of Strong Foundation
4
2009 2011 2013
CONFIDENTIAL © Fincare SFB 2020
• Stabilization of banking
processes, people and
technology
• Rights issue at FBSL and FSFB
by existing share holders for
growth capital
• Scheduled Bank Status
• As on December’19
i. Crossed business of ₹8,800 Crore
ii. Crossed customer
base of 23 Lakhs
• Launch of Affordable
Housing, Two-wheeler loans
• Rights issue at FSFB
• LAG, IF launched
• Restructuring completed;
new investors at FBSL
• Conversion of Disha Microfin
to Fincare SFB
• Bank commencement
• SFB license application to RBI
• Disha Microfin received in-
principle license from RBI to
establish Small Finance Bank
• Fincare Business Services
(FBSL) established as an
integrated BoP platform
• Micro Enterprise Loans
introduced
• Bank transformation process
initiated – investment in
technology and people
• Regulatory structuring initiated
- slump sale of FFSPL business
with Disha
5
2014
2015
2016
2017
2018
2019
Note: IFAPL and FFSPL have been merged with FBSL, effective Oct 2016
Scheme for merger of Lok with FBSL has been filed
Fincare Evolution – Transformation into a Smart Bank
CONFIDENTIAL © Fincare SFB 2020
6
Q3FY20/ 9MFY20 Highlights02
CONFIDENTIAL © Fincare SFB 2020
Key Highlights Q3FY20 | 9MFY20 : Becoming Better, Bigger & Smarter (1/2)
7
Total Income
324 | 850 (163 | 471) (99% | 81%)
P&L Highlights
Business Highlights
Gross Loan Portfolio
4,746
(2,855) (66%)
Deposits
4,076(1,432) (185%)
Net-worth
896
(546) (64%)
Operational Highlights
# States & UT
14 States; 2 UTs
# Banking Outlets*
693
Legend:
Q3FY20 | 9MFY20
(Q3FY19 | 9MFY19) (YoY Growth)
# Districts
174
In ₹ Crore
In ₹ Crore
Net Interest Income
167 | 443( 96 | 267) (74% | 66%)
# Employees
7,025
# Customers
23 lakh+
Profit After Tax
60 | 136(26 | 69) (128% | 98%)
Disbursements
1,246 | 3482
(408|1,986) (205%|98%)
*excluding administrative offices, processing centers, call centers etc.
Note: numbers based on unaudited financials; previous year numbers have been reclassified in line with current year, wherever necessary.
CONFIDENTIAL © Fincare SFB 2020
Key Ratios Q3FY20 | 9MFY20 : Becoming Better, Bigger & Smarter (2/2)
8
ROA
3.6% | 3.1%
2.9% | 2.8%
Non-Interest Income
10.1% | 9.8%
5.3% | 8.8%
PCR
63.4%
80.7%
Opex/ Business
5.0% | 5.4%
6.6% | 7.0%
GNPA / NNPA
1.3% / 0.5%
1.8% / 0.4%
ROE
30.1% | 24.6%
19.7% | 22.0%
Cost to Income
52.1% | 57.0%
68.3% | 65.6%
Credit to Deposit Ratio
111%
147%
Legend:
9MFY20
9MFY19
Cost of Funds
9.0% | 9.0%
9.5% | 9.5%
NIM
10.2% | 10.2%
10.7% | 10.8%
Deposits / Net-Advances
92%
70%
CRAR
21.3%
26.6%
Tier I CRAR
17.2%
23.1%
CASA
10.8%
8.7%
Retail Share of Deposits
65.3%
48.5%
Legend:
Q3FY20 |9MFY20
Q3FY19 | 9MFY19
Balance Sheet RatiosProfit & Loss Ratios
Secured Book
19.6%
17.5%
CONFIDENTIAL © Fincare SFB 2020
Q3FY20 Performance Summary(1/2)
9
Quarterly Highlights• Total Business crossed ₹8,800 Crore in Q3FY20.• 101 Savings Accounts - Fincare digital savings account crossed 50,000 accounts in Q3FY20.
Focus on Growth and Quality of Assets• Continued Growth momentum - Gross Loan Portfolio (GLP) as on December 31,2019 at ₹4,746 Crore, growth of 66% YoY.• Improving Secured Mix - Secured loan portfolio seen slight improvement in Dec’19 to 19.6% from 17.5% in Dec’18.• Stable asset quality - GNPA improved to 1.3% in Dec’19 from 1.8% in Dec’18, NNPA at 0.5% in Dec’19.• Adequate provision coverage Adequately covered assets with PCR at 63% in Dec’19.• Growing Disbursements - Disbursements grew significantly by 205% to ₹1,246 Crore in Q3FY20 from ₹408 Crore in Q3FY19.
Focus upon making Deposits more Granular• Strong growth momentum - Deposit base increased to ₹4,076 Crore in Dec’19 from ₹1,432 Crore registering a growth of 184%.• Focus on retail deposits - Retail to Total Deposits ratio increased to 65% in Dec’19 against 48% in Dec’18.• Stable Deposit Base - Tenure of nearly 90% of total Bulk FD accounts is greater than 12 months leading to a stable non-retail deposit
base.• Improving deposit ratio - CASA Ratio improved to 10.8% in Dec’19 against 8.7% in Dec’18.• Geographical Diversification - Deposits are geographically diversified across various states lowering concentration risk.• True Financial Inclusion - More than 18 lakhs Savings Account opened by Q3FY20 to strengthen Financial Inclusion in India.• Reducing Cost of Fund - Cost of Funds decreased to 9.05% in Q3 FY20 from 9.5% in Q3 FY19.
CONFIDENTIAL © Fincare SFB 2020
Q3FY20 Performance Summary(2/2)
10
Adequately Capitalized Bank• CRAR of 21.3% & Tier 1 CAR 17.2% in Dec’19.• Networth increased by 64% to ₹896 Crore in Dec’19 from ₹546 Crore in Dec’18.
Improving Profitability and Operational Efficiencies• ROA improved to 3.6% as on Q3 FY20 against 2.1% in Q3 FY19.• Cost to Income ratio improved to 52.1% as on Q3 FY20 against 68.3% in Q3 FY19.• Opex to Total Business ratio seen improvement -as on Q3 FY20 is at 5.0% from 6.6% in Q3 FY19.
New Launches and Tie-ups to serve Customers better• Launched three branches : Thrissur (Kerala), Kanpur (UP), Warangal (TL) .• Launched two new Deposit variants : Tax saver FD & Pro-Savings Account
• Tax saver fixed deposit (FD) is a type of fixed deposit, by investing in which, customers can get tax deduction under section 80C of the Indian Income Tax Act, 1961.
• Pro-Priority is an exclusive Savings Account which will be offered only for Professionals i.e., Chartered Accountants, Doctors.• Launched Demand Draft and Passbook services across all the bank branches.• Launched Corporate Internet Banking for Current Account customers loaded with features for safe and secure processing of business
transactions that serve customers’ banking needs.• Partnered with Bill Desk for Payment Gateway transactions where Fincare customers can now pay online using ‘Net Banking’ across
1000 merchants.• Tied up with M swipe for Point of Sale Machine & QR Code to enhance Current Account customer experience.
CONFIDENTIAL © Fincare SFB 2020
11
Banking products and Network
Snapshot03
CONFIDENTIAL © Fincare SFB 2020
Offering value to customers – through Key Asset Products
MicroloansLoan Against Property
Loan Against Gold
Institutional Finance
Two Wheeler Loans
Affordable Housing Loans
Target Customers
Rural women (group
size: 3 to 20) – JLG
lending
Self employed
professionals,
Proprietorship &
Partnership firms,
Private Ltd, salaried
individuals
Micro enterprises,
self-employed in
semi-urban areas
NBFC-MFIs, NBFCs –
MSME, LAP, Vehicle,
Gold
Family members of
existing microloans
customers
Self employed
professionals,
Proprietorship &
Partnership firms,
Pvt. Ltd, salaried
individuals,
Ticket Size₹15,000 – ₹45,000 ₹1.5 Lakh - ₹50 Lakh ₹5,000 - ₹25 Lakh ₹1 Crore – ₹15
Crore
₹20,000 - ₹75,000 ₹1.5 Lakh - ₹25
Lakh
Purpose
Income generation
only
Business expansion,
Asset purchase,
Debt consolidation,
Education, Marriage
Immediate to short
term credit
requirement
On lending to
clients’ borrowers;
Business
requirements
Purchase of new
two-wheeler
vehicle
House purchase,
House
improvement,
House extension
Tenure18-24 months 36-120 months 3 - 24 months 6 months – 3 years 24 - 36 months 36-240 months
Repayment Freq. Monthly Monthly Bullet/ EMI Monthly Monthly Monthly
# of Banking Outlets 407 130 198 2 111 21
# of States/UT 12 States/UT 6 States/UT 13 2 6 States/UT 1 State
# of Customers 19 Lakh+ 10,096 19,021 34 2,082 43
Gross Loan Portfolio ₹3,817 Crore ₹513 Crore ₹152 Crore ₹229 Crore ₹10.25 Crore ₹12.45 Crore
Additional Facilities - Overdraft - - - Balance Transfer
and Top up12
CONFIDENTIAL © Fincare SFB 2020
Offering value to customers -through Key Liability Products
Retail & Rural CASA Retail Term Deposits Bulk Term Deposits Digital Savings Account
Recurring Deposits
Target Customers
HNIs, retail mid and
affluent segments,
microloans customers
HNIs, retail mid and
affluent segments,
NRIs
Banks and corporates
looking to park excess
funds, and HNIs
Seekers of easier,
faster & hassle-free
way of doing
transactions for
lifestyle & banking
Retail mid and affluent
segments
Interest Rate
6% for up to ₹1L
balance; 7% for above
₹1L
Up to 9%; additional
0.5% for senior citizens
6% for up to ₹1L
balance; 7% for above ₹1L
Up to 9%
Ticket Size
Zero Balance – ₹1L
(Based on the
product)
₹5,000 to < ₹2 Crore >=₹2 Crore Zero Balance₹500 per month to < ₹1
Crore
Interest Payment
FrequencyMonthly
Monthly, Quarterly,
Reinvestment
Monthly, Quarterly,
Reinvestment Monthly At maturity
No. of Customers 17.6 Lakhs 46,374 269 52,793 1,570
Card VariantsRupay Classic/
PlatinumNA NA
Rupay Gold &
PlatinumNA
Deposit Book ₹393 Crore ₹2,217 Crore ₹1,415 Crore ₹46 Crore ₹5 Crore
Additional Facilities - Overdraft - Doorstep KYC -
13
CONFIDENTIAL © Fincare SFB 2020
Continuously Expanding Distribution Network through various channels to serve more customers
14
Touchpoints
Digital Physical Other
693 Banking Outlets
78 Cash Recyclers/ATMs
– 7 languages
Internet Banking
• Retail Customers – In English
& Hindi
• Corporates
Mobile Banking – 11
languages
Tab Banking – Current A/c, FD,
Microloans, LAP, LAG, Service
Request, Cash Operations,
Fund Transfer, collections
WhatsApp Banking
Doorstep Service – Feet on
Street
Call Center/ IVR – Toll Free
Number - 7 languages
CONFIDENTIAL © Fincare SFB 2020
Well Diversified Geographical Presence reaching ~23 lakhs customers
15
693 Banking Outlets
14 States, 2 UTs
174 Districts
• Fincare is present across 174 districts in 14 states & 2 UTs • Currently, there are 693 Banking outlets which includes 202 BC
outlets.• Total customers as on Dec’19 were ~23 lakhs which includes ~4.8
lakhs Asset only customers, ~1.8 liability only customers and ~16.5 both Asset & Liability customers.
• Fincare focuses on penetrating in existing geographies as well extending its presence in new geographies to reach more & more beneficiaries.
Customers (in Lakhs)
Dec’19 Sep’19
Asset only 4.77 6.18
Liability only 1.76 1.31
Asset & Liability 16.5 13.6
Total 22.99 21.05
CONFIDENTIAL © Fincare SFB 2020
16
Instrument Rating Rating Agency Type
Term Loans From Bank
CARE A; Stable(Single A; Outlook: Stable)
CARE Ratings
Long Term[ICRA A] (Stable)
(Single A; Outlook: Stable)ICRA
Unsecured Sub-ordinated Debt/ Non-Convertible Debentures
CARE A; Stable(Single A; Outlook: Stable)
CARE Ratings Long Term
Ind A-/ Positive(Single A Minus; Outlook: Positive)
India Ratings Long Term
Fixed Deposit Programme[MA+] (Stable)
(MA+; Outlook: Stable)ICRA Medium Term
Certificate of Deposits Crisil A1+ CRISIL Short Term
FY15 FY16 FY17 FY18 FY19
BBB-/ Stable BBB-/ Positive A-/ Stable A-/ Stable A/ Stable
Long term Credit Rating evolution
Rating of Financial Instruments
Credit Rating
CONFIDENTIAL © Fincare SFB 2020
17
CELENT Model Bank
Award 2019
Financial Inclusion – LAP
D.Lite (Apr’2019)
ABP News BFSI Awards
2018
Innovative Initiative in
Rural Sector (Nov’2018)
ABP News BFSI Awards
2018
Bank with best technology
orientation (Nov’2018)
CMO Asia Gujarat Brand
Leadership Awards 2018
Emerging
Brand(Sept’2018)
MFIN Microfinance Awards
2018 – In Pursuit of Excellence
Customer Literacy & Capacity
Building (May’2018)
Awards & Recognition
SKOCH Order-of-Merit 2018 – Top
Ranking Banking and Finance
Projects in India
Capacity Building and Financial
Literacy (Dec’2018)
SKOCH Order-of-Merit 2018 - Top
Ranking Banking and Finance
Projects in India
Technology – LAP D.Lite
(Dec’2018)
World AI Show - BFSI & NBFC
Technology – mCARE
(Sept’2019)
Governance Now - 4th India
Banking Reforms Conclave & BFSI
Awards
Best Digital Bank Award
(May’2019)
CONFIDENTIAL © Fincare SFB 2020
18
Assets Snapshot04
CONFIDENTIAL © Fincare SFB 2020
Asset Highlights
19
Key Assets Highlights• Gross Loan Portfolio (GLP) grew by 66% YoY to ₹4,746 Crore in Dec’19 against ₹2,855 Crore on Dec’18.• 95% of Portfolio consist of On-Book Advances. • 19.6% of the total Gross Loan book is Secured Book.
Microfinance• GLP grew by 62% YoY in Dec’19 with the presence in ~38,000 villages across India.• Collection efficiency stands strong at 99.75%.• Average ticket size is ₹29,774.
Secured Business Portfolio• Secured Business Portfolio increased to 19.6% in Dec’19 from 17.5% in Dec’18.• Loan Against Gold – experienced a 142% YoY growth – consistent growth, despite short tenures.• Institutional Finance – grew by 59% YoY, GLP as on December’19 at ₹ 229 Crore.
• Loan Against Property – showed a 90% YoY growth, GLP as on December’19 at ₹ 513 Crore.• 2-wheeler loans - launched in January 2019; GLP as on December’19 at ₹ 12 Crore.• Affordable Housing loans - launched in April 2019; GLP as on December’19 at ₹ 10.3 Crore.
Asset Quality• GNPA improved to 1.3% as on Dec’19 from 1.8% in Dec’18, NNPA stands at 0.5% as on Dec’19.
Disbursements• Disbursements grew significantly by 205% to ₹1,246 Crore in Q3FY20 from ₹408 Crore in Q3FY19.
CONFIDENTIAL © Fincare SFB 2020
Consistent Loan growth seen across all products
20
73% 79% 84% 88% 95%
27% 21% 16% 12% 5%
Dec'18 Mar'19 Jun'19 Sep'19 Dec'19
On-Book Off-Book
2,855 3,530 4,3473,853 4,746
GLP Mix (₹ Crore)
2,3562,839
3,1203,528
3,817
Dec'18 Mar'19 Jun'19 Sep'19 Dec'19
66%
62%Microloans (₹ Crore) 90%
270335
379
446
513
Dec'18 Mar'19 Jun'19 Sep'19 Dec'19
LAP (₹ Crore)
63
89
109
137152
Dec'18 Mar'19 Jun'19 Sep'19 Dec'19
YoY%
LAG (₹ Crore) 142%
144
257228 214 229
Dec'18 Mar'19 Jun'19 Sep'19 Dec'19
IF (₹ Crore)
59%
18% 20% 19% 19% 20%
83% 80% 81% 81% 80%
Dec'18 Mar'19 Jun'19 Sep'19 Dec'19
Secured Unsecured
Assets Mix
ATS: ₹ 29,774 ATS: ₹ 5.48 lakhs
ATS: ₹ 83,583
CONFIDENTIAL © Fincare SFB 2020
Consistently stable and improving asset quality
21
Asset Quality Product wise GNPA
Note: LAP GNPA does not include Rural LAP
1.8%
1.3% 1.3%1.2%
1.3%
0.4% 0.3%0.5% 0.4% 0.5%
Dec'18 Mar'19 Jun'19 Sep'19 Dec'19
GNPA NNPA
2.0%
1.3%1.2%
1.0% 1.1%
2.1%2.1%
3.4%
3.0%
3.1%
0.3% 0.3% 0.3%
0.5%0.6%
Dec'18 Mar'19 Jun'19 Sep'19 Dec'19
MFI LAP LAG
Provision Coverage Ratio
80.7%73.7%
61.7% 63.5% 63.4%
Dec'18 Mar'19 Jun'19 Sep'19 Dec'19
CONFIDENTIAL © Fincare SFB 2020
22
GNPA movement and Credit Cost Impact on P&L
Movement of GNPA(All figures in ₹ Crore)
Dec’19 Sep’19 Jun’19 Mar’19 Dec’18
(a) Opening balance 45.57 42.39 35.89 37.79 32.94
(b) Additions during the year 26.00 20.51 23.06 13.93 7.14
(c) Reductions during the year 14.97 17.32 16.56 15.83 2.29
(d) Closing balance 56.60 45.57 42.39 35.89 37.79
Credit Cost: Net Impact on P&L(All figures in ₹ Crore)
Q3FY20 Q2FY20 Q1FY20 Q4FY19 Q3FY19
Provision on NPA 7.17 2.64 -0.14 -3.31 5.00
Write-off 5.46 7.52 8.38 10.18 0.02
Less: Bad Debt Recovery 0.48 0.32 0.46 0.91 1.08
Credit Cost – Net impact on P&L 12.15 9.83 7.79 5.97 3.94
CONFIDENTIAL © Fincare SFB 2020
23
Liabilities and Treasury Snapshot05
CONFIDENTIAL © Fincare SFB 2020
Liabilities Highlights
24
Key Liabilities Highlights• Deposit base increased to ₹4,076 Crore in Dec’19 compared to ₹1,432 Crore in Dec’18 registering a Y-o-Y growth of 185%.
Focus on making Deposits more granular• Retail to Total Deposits ratio increased to 65% in Dec’19 against 49% in Dec’18.• CASA Ratio improved to 10.8% in Dec’19 against 8.7% in Dec’18.
Stable Bulk Deposits• Tenure of nearly 90% of total Bulk FD accounts is greater than 12 months leading to a stable non-retail deposit base. • ~95% of total Bulk Deposits are non-callable in nature.
Savings Accounts• More than 18 Lakhs Savings Account were opened by December’2019 to strengthen Financial Inclusion in India.• Average Balance:
• Savings Account (Retail banking customers)- ₹ 19,219 • Current Account - ₹37,189 and, • Fixed Deposits - ₹ 3.3 lakh
Well Diversified Deposits• Deposits are diversified across states with top concentration in Gujarat, Karnataka, Kerala, Maharashtra and Rajasthan.
CONFIDENTIAL © Fincare SFB 2020
Making Deposits more granular and thus, stable
25
Deposits Profile
Notes: Total Deposits for Sep’19 are exclusive of CDs.
8.7% 11.0% 8.6% 9.4% 10.8%
40%46% 43% 44%
54%
51%44% 48% 46%
35%
49%
56%
52%54%
65%
Dec'18 Mar'19 Jun'19 Sep'19 Dec'19
CASA % Retail TD Bulk TD Retail to Total Deposits
₹1,432 Cr ₹2,043 Cr ₹2,699 Cr ₹3,715 Cr ₹4,076 Cr
As of Dec’19 SA CA Retail TDCASA + Retail TD
Balance ₹ Crore 431 8 2,222 2,661
No. of Accounts 18,14,242 2,148 67,006 18,83,396
Average Balance
(In ₹)
2,377 37,189 3,31,576 14,128
Average Balance
CONFIDENTIAL © Fincare SFB 2020
Liabilities Profile
26
• Deposits constituted 77% of the Total Liabilities as on Dec’19, vs. 61% as on Dec’18.• Raised ₹100 Crore of Tier II capital during 9MFY20 to strengthen CAR.• Grandfathered loans declined to 2% in Dec’19 from 10% in Dec’18.
2,363
3,3263,971
5,0605,521
Dec'18 Mar'19 Jun'19 Sep'19 Dec'19
134%
Total Liabilities (₹ Cr)
10% 5% 5% 4% 2%
25% 30% 25% 19% 17%
4% 3%3%
4% 4%
61% 61% 68% 73% 77%
Dec'18 Mar'19 Jun'19 Sep'19 Dec'19
Grandfathered Loans Refinance Tier II Deposits
Liabilities Mix (%)
Diversified Funding Profile – Deposits constitute ~77% of the total Liabilities
CONFIDENTIAL © Fincare SFB 2020
Cost of Funds & Treasury Update
27
• Cost of Funds (CoF) declined to 9% in Q3 FY20 from 9.5% in Q3 FY19 due to granularization of deposits.
• Incremental CoF declined to 7.5 % in Q3 FY20 from 8.3% in Q3 FY19.• Total SLR on Dec’19 stands at ₹ 1484 Crore as against the requirement of ₹ 781 Crore. • Well managed ALM - all buckets of Asset Liability within Regulatory and Board determined limits.• Maintained healthy average Liquidity Coverage Ratio (LCR) of 262.6% during Q3FY20, consistently above regulatory
requirement of 80% for SFBs.
9.5%
9.0%
9.2%
9.0% 9.0%
9.5%
9.0%
Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 9MFY19 9MFY20
Average Cost of Funds Incremental Cost of Funds
8.3% 8.8%8.2% 8.4%
7.5%8.5% 8.1%
Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 9MFY19 9MFY20
Treasury Updates
CONFIDENTIAL © Fincare SFB 2020
28
Digital Banking Snapshot06
CONFIDENTIAL © Fincare SFB 2020
Fincare : Truly a Digital Bank with more than 98% paperless onboarding of customers
29
Digital Onboarding of Customer Accounts Debit Card Transactions
• Value of Debit card transactions increased to ₹ 975 Crore in Q3 FY20 from ₹ 286 Crore in Q3 FY19 registering growth of 241%.
• Volume of Debit transactions grew by 233% to 20 lakhs in
Q3FY20 from 6 lakhs in Q3FY19.
• Since the commencement of banking operations, the bank has a deep digital focus and been using tab-based solutions across all retail businesses.
• Paperless onboarding of both, Liabilities & Asset accounts,
has been more than 97% since last 5 quarters.
97%
98%
97%
98% 98%
97%
98% 98% 98% 98%
Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20
Asset Accounts Liability Accounts
286
827 831980 975
6
1516
20 20
Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20
Value of Transaction (₹ Cr) Volume of Transactions (Lakhs)
CONFIDENTIAL © Fincare SFB 2020
Mobile Banking, Internet Banking & UPI Transaction continues to rise multifold
30
Mobile & Internet Banking Transactions
• Since the launch of UPI in July’19, UPI transactions reached 4.9 lakhs with a value of ₹ 42 Crore in Q3 FY20.
• UPI Transactions grew by 231% in volume & 169% in value in Q3FY20 with respect to Q2FY20.
• Total Mobile Banking (MB) & Internet Banking (IB) transactions initiated by the customers stands at 1.6 lakhs and value of such transactions is at ₹ 392 Crore as on Q3FY20.
• MB & IB transactions grew by 121% & 162% in value & volume respectively in Q3FY20 compared to Q3FY19.
149 177206
283
392
0.7
0.91
1.1
1.6
Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20
Value of Transactions (₹ Cr) Volume of Transactions (Lakhs)
UPI Transactions
16
42
1.5
4.9
Q2 FY20 Q3 FY20
Value of Transactions (₹ Cr) Volume of Transactions (Lakhs)
CONFIDENTIAL © Fincare SFB 2020
101 – Digital Saving Account & WhatsApp Banking Updates
31
• “Fincare’s 101” is Digital Savings Account by the bank with instant account opening which also gives instant access to Internet Banking and Mobile Banking.
• Fincare also provides doorstep KYC verification for 101 account.
• More than 60,000 101 Savings accounts have been opened by Dec’19 with total balance of ₹ 46 Crore.
• Average Balance on Dec’19 stands at ₹ 7,253.
101 : Digital Saving Account
• WhatsApp Banking offers services like- Balance Enquiry, Mini Statement, Open 101 Account, Product Information, Cheque book Request, Stop Cheque payment Request, Debit Card blocking Request, etc.
• Total Unique users in Dec’19 were ~5,794 with total 2,07,683 sessions i.e. 36 sessions per user.
• Out of total unique users, ~96% were Fincare customers.
35,74241,593 41,151
52,793
3437
41
46
Sep'19 Oct'19 Nov'19 Dec'19
Total Customers Total Balance (₹ Cr)
WhatsApp Banking
5,063 38,622
2,07,6831,498
2,999
5,794
Oct'19 Nov'19 Dec'19
Total Sessions Unique Users
CONFIDENTIAL © Fincare SFB 2020
Implementing Extended Capabilities of Kaizala across employees
32
• Kaizala, a secure employee communication and productivity tool, was rolled out during the year.• Kaizala action cards have been implemented for different field activities: password resets, collection visits, DSR reports, audits,
UPI Collection, helpdesk, branch controls, leaderboard tracking amongst several others.• Cross sell app (automated login), Field Audit application, RUB LUC application have been implemented through Kaizala. • Kaizala is used to digitise various field processes without any development effort – this has in turn contributed in reducing manual
process friction for the field staff, conducting trainings and quizzes, also gives us great visibility on the activities of the field staff (all leading to better customer experience).
Implementation of Extended Capabilities of Kaizala to enhance Customer Delight
CONFIDENTIAL © Fincare SFB 2020
33
Other updates – Q3/ 9M FY2007
CONFIDENTIAL © Fincare SFB 2020
Events at Fincare (1/2)
• Grand Master Viswanathan Anand, Fincare’s brand ambassador, visited Fincare HO where he met all the employees.• Employees got an opportunity to cross swords with him on a chess board.• Mind Master : Winning Lessons from a Champion’s Life, autobiography of GM Vishwanathan Anand was launched at an event held in
Mumbai on Nov’2019.
Employee meet with Grand Master Viswanathan Anand
CONFIDENTIAL © Fincare SFB 2020
Events at Fincare (2/2)
• Fincare SFB keeps organizing physical activities like Marathon, Sports Tournament to enhance team bonding among employees andgive focus on their physical health, as well.
• 350+ employees participated in marathon events organized at Goa, Coorg and Singapore.• Annual Cricket Tournament was organized by the Bank for all its employees across all zones at various locations in the South & West.
Health, Team Bonding & Fun : All in One
CONFIDENTIAL © Fincare SFB 2020
Fincare in the media
36
CONFIDENTIAL © Fincare SFB 2020
37
Financial Statements & Key Ratios08
CONFIDENTIAL © Fincare SFB 2020
Profit & Loss Statement
38
In ₹ Crore Q3FY20 Q2FY20QoQ
GrowthQ3FY19
YoY Growth
9MFY20 9MFY199M YoY Growth
Income
Interest Earned 291.7 253.4 15% 154.3 89% 767.2 429.9 78%
Interest Expended 124.6 110.5 13% 58.3 114% 323.9 164.7 97%
Net Interest Income 167.2 142.8 17% 96.0 74% 443.3 265.2 67%
Other Income 32.7 28.5 15% 8.7 275% 82.9 41.5 100%
Total Net Income 199.8 171.3 17% 104.7 91% 526.2 306.7 72%
Expenses
Employee Expenses 64.3 65.4 -2% 44.7 44% 187.1 128.8 45%
Other Costs 35.3 36.0 -2% 23.6 50% 100.9 64.0 58%
Depreciation 4.4 4.1 8% 3.2 38% 11.7 7.9 48%
Provisions & Write-offs 11.3 13.1 -14% 6.7 68% 34.7 35.7 -3%
Total Expenses 115.3 118.6 -3% 78.2 47% 334.5 236.4 41%
Profit Before Tax 84.5 52.7 60% 26.5 219% 191.7 70.3 173%
Tax Expenses 24.6 15.3 - 0.2 - 55.9 1.6 -
Profit After Tax 59.9 37.4 60% 26.3 126% 135.8 68.7 143%
CONFIDENTIAL © Fincare SFB 2020
Balance sheet : Total Assets grew 109% YoY
39
In ₹ Crore 31st December 2019 30th September 2019 QoQ Growth 31st December 2018 YoY Growth
Liabilities
Capital 64 56 13% 53 20%
Reserves & Surplus 832 686 21% 493 69%
Deposits 4,076 3,715 10% 1,432 185%
Borrowings 1,445 1,310 10% 931 55%
Others 211 162 30% 262 -20%
Total Liabilities 6,628 5,929 12% 3,171 109%
Assets
Cash and Cash equivalent
1,168 1,173 0% 441 165%
Investments 799 782 2% 464 72%
Advances 4,481 3,785 18% 2,067 117%
Fixed Assets 39 38 1% 29 34%
Other Assets 141 151 -7% 171 -17%
Total Assets 6,628 5,929 12% 3,171 109%
CONFIDENTIAL © Fincare SFB 2020
Key Ratios
40
Cost-to-Income Ratio Opex-to-Business Ratio
68.3%64.1%
58.2%61.6%
52.1%
65.6%
57.0%
FY19-Q3 FY19-Q4 FY20-Q1 FY20-Q2 FY20-Q3 FY19-9M FY20-9M
Cost to Income Ratio (%)
6.6%7.3%
6.0% 5.7%5.0%
7.0%
5.4%
FY19-Q3 FY19-Q4 FY20-Q1 FY20-Q2 FY20-Q3 FY19-9M FY20-9M
Opex to Business Ratio (%)
2.9% 3.3% 3.1% 2.5% 3.6% 2.8% 3.1%
19.7%22.8% 22.6%
20.6%
30.1%
22.0%24.6%
FY19-Q3 FY19-Q4 FY20-Q1 FY20-Q2 FY20-Q3 FY19-9M FY20-9M
RoA RoE
Profitability MetricsNet Interest Margin
10.7%10.9%
10.6%
9.7%
10.2%
11.1%
10.1%
FY19-Q3 FY19-Q4 FY20-Q1 FY20-Q2 FY20-Q3 FY19-9M FY20-9M
NIM (%)
CONFIDENTIAL © Fincare SFB 2020
41
Board & Management Team09
CONFIDENTIAL © Fincare SFB 2020
42
Sameer NanavatiDirector
Pramod KabraChairman
Rajeev YadavManaging Director
Susan ThomasIndependent Director
Vinay BaijalIndependent Director
Varun SabhlokIndependent Director
Sunil GulatiIndependent Director
Alok PrasadIndependent Director
Partner, True North MD & CEO, Fincare SFB Founder, Disha Microfin
Former CEO, MFIN Former CRO, RBL Bank,
Yes Bank
Faculty at IGIDR; Economist
Formerly, Citibank, PayPal Sr. Advisor, KPMGFormer CGM, RBI
SFB Board composed of industry stalwarts and veterans with rich experience in banking, financial inclusion, rural economy and regulatory matters
Ravindran A. L.Nominee Director
General Manager, SIDBI
Fincare SFB – Board of Directors
CONFIDENTIAL © Fincare SFB 2020
43
Rajeev YadavManaging Director &
Chief Executive Officer
Last Org: GE MoneyExperience: 25 years
Ashish MisraChief Operating
Officer,
Retail Banking
Last Org: IndusInd BankExperience: 22 years
Soham ShuklaChief Operating Officer,
Rural Banking
Co-Founder: Disha Microfin
Last Org: MoneyMitraExperience: 26 years
Deepabh JainChief Operating Officer,
Mortgages & IF
Last Org: IFCExperience: 27 years
Kishore MangalvedheChief Operating Officer,
Rural Banking – South
Last Org: L&T FinanceExperience: 33 years
Suresh KrishnamurthyChief Operating Officer,
Retail Banking - South
Last Org: HDFC BankExp: 26 years
Ravish ChandraChief Operating Officer,
Rural Banking - West
Last Org: Kotak Mahindra BankExp: 19 years
Dr. Ashish ChhabraChief Operating Officer,
Retail Banking - West
Last Org: Indusind bankExp: 21 years
Virender SharmaHead – Alternate Channels,
Rural Banking
Last Org: Swadhaar FinserveExp: 20 years
Fincare SFB – Business Management Team
Nilesh SangoiChief Digital Officer & Head –
Data Analytics
Last Org: MerucabsExperience: 22 years
CONFIDENTIAL © Fincare SFB 2020
44
Chandar RaoChief Technology Officer
Last Org: FINOExperience: 24 years
Keyur DoshiChief Financial Officer,
Co-Founder – Disha Microfin
Last Org: MoneyMitraExperience: 24 years
Pankaj GulatiChief People Officer
Last Org: MetlifeExperience: 24 years
Devika Praveen Head - Compliance
Last Org: Kotak
Mahindra Bank LtdExperience: 25 years
Rakesh DasHead – Credit
Last Org: IFMR CapitalExperience: 18 years
Venkata JayaramanChief Risk Officer
Last Org: ING-Kotak Bank
Experience: 33 years
Rajeev YadavManaging Director &
Chief Executive Officer
Last Org: GE MoneyExperience: 25 years
Mahender ChawlaChief Operating Officer,
Operations & Gold Loans
Last Org: MoneyMitraExperience: 24 years
Sandeep BhallaHead – CEO Office
Last Org: AltisourceExperience: 30 years
Shashi Kumar R.Head – IT Projects
Last Org: Samhita MicrofinanceExperience: 19 years
Fincare SFB – Functional Management Team
Prakash SundaramChief Strategy Officer
Last Org: CommonwealthExperience: 25 years
CONFIDENTIAL © Fincare SFB 2020
45
Thank You!
In case of any queries, please contact:-
Mr. Keyur Doshi, CFO
Board Line: 080 4250 4444
E-mail Id: keyur.doshi@fincarebank.com
CONFIDENTIAL © Fincare SFB 2020
46
Loans Against Gold
Loans Against Property
Microloans
Institutional Finance
Life Insurance – group Credit
life, retail (KLI, ETLI)
Health Insurance – group,
retail (Religare Health)
ASSET PRODUCTS OTHER PRODUCTS
Affordable Housing
Finance
Payments – NEFT, RTGS,
IMPS, NACH, Bill Pay, E-
commerce payments, UPI
Two-wheeler Loans
Debit Cards
Lockers
Fixed Deposits –
Regular, NR
Savings Accounts –
Regular & Digital
Current Accounts
Recurring Deposits
LIABILITY PRODUCTS
Overdraft
Comprehensive product portfolio to serve needs of diverse customer segments
CONFIDENTIAL © Fincare SFB 2020
47
Core of the Bank : Strong Technology and Digital Orientation
• SmartBank :Tab Banking for
account opening, funds
transfer, bill payments,
service requests, account
changes & LAG origination
• m-Care : Microloans loan
origination and savings
account opening
• D.Lite: LAP, 2W, RLAP and
AHF origination
• m-Collect :Application for
microfinance collections
• FRMS : Mobile based fraud
risk management
application
• Cross Sell Application
• Internet Banking
• Mobile Banking
• Customer
communication
channels
➢Responsive
website
➢Live chat for 101
accounts
banking
• NEFT
• RTGS
• IMPS
• Debit Cards
• Bill Pay
• NACH
• E-Commerce Payments
• UPI
Customer self-service through digital
channels
Tab banking solutions for front line staff
Full Payments stack Instant Delight Automation
• Algorithm based credit
decisioning
• Aadhaar based e-KYC
• Instant Account
Opening for non e-KYC
customers
• Real-time Integration
with credit bureau
• Instant KYC validation
for PAN, Voter ID, E-mail
ID
• B& Analytics platform –
Nanobi & Data lake
• Kaizala – employee
communication and
productivity tool
• Tools such as Cermo+,
KMT+, IC+, Dess,
Helpdesk
• HRMS mobile app
• Employee biometric
attendance
CONFIDENTIAL © Fincare SFB 2020
Disclaimer
48
This presentation has been prepared by Fincare Small Finance Bank Ltd. (the “Bank”) solely for information purposes, without regard of any specific objectives, financial situations informational needs of any particular person. All information contained has been prepared solely by the Bank. No information contained herein has been independently verified by anyone else. This presentation may not be copied, distributed, redistributed disseminated, directly indirectly, in any manner.
This presentation does not constitute offer or invitation, directly or indirectly, to purchase or subscribe for any securities of the Bank by any person in any jurisdiction, including India and the United States. No part of it should form the basis of be relied upon in connection with any investment decision any contract commitment to purchase or subscribe for any securities. Any person placing reliance on the information contained in this presentation or any other communication by the Bank does so at his or her own risk and the Bank shall not be liable for any loss or damage caused pursuant to any act or omission based on fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Further, past performance is not necessarily indicative of future results.
This presentation is not a complete description of the Bank. This presentation may contain statements that constitute forward-looking statements. All forward-looking statements are subject to risk, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Important factors that could cause actual results to differ materially include, among others, future changes or developments in the Bank’s business, its competitive environment and political, economic, legal and social conditions. Given these risks, uncertainties and other factors, viewers of this presentation are contained not to place undue reliance on these forward-looking statements. The Bank disclaims any obligation to update these forward-looking statements to reflect future events or developments.
Except as otherwise noted, all of the information contained herein is indicative and is based on management information, current plans and estimates in the form as it has been disclosed in this presentation. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The Bank may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. The accuracy of this presentation is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Bank.
This presentation is not intended to be an offer document or a prospectus, a statement in lieu of a prospectus, an offering circular or an advertisement under the Companies Act, 2013 and Rules made thereafter, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended by any other applicable law.
Figures for the previous period/ year have been regrouped wherever necessary to confirm to the current period’s/ year’s presentation. Total in some columns/ rows may not agree due to rounding off.
Note: All financial numbers in the presentation are from Audited Financials or Limited Reviewed financials or based Management estimates.
CONFIDENTIAL © Fincare SFB 2020
Key Definitions
49
Net Interest Margin As a % of Average Interest Earning Assets
Secured Book Computed on Total Gross Loan Portfolio
RoA Computed on monthly average of Interest earning Assets
RoE Computed on monthly average of Net worth
Non-Interest Income Includes Processing Fees and Other Income
Opex/Business Computed on Total Advances + Total Deposits
Cost to Income Opex/ (Net Interest Income + and Other Income)
Credit to Deposit Ratio On-Book Advances/Total Deposits
CONFIDENTIAL © Fincare SFB 2020
Glossary
50
BI Business Intelligence IF Institutional Finance
CAGR Compounded Annual Growth Rate MFIs Micro Finance Institutions
CASA Current Account deposit and Savings Account MSMEs Micro, Small and Medium Enterprises
CRAR Capital Adequacy Ratio NACH National Automated Clearing House
CBS Core Banking System NBFC Non Banking Finance Companies
EMI Equated Monthly Instalment NEFT National Electronic Funds Transfer
ETLI Edelweiss Tokio Life Insurance Company NIM Net Interest Margin
FBSL Fincare Business Services Limited NPA Non Performing Advances
FFSPL Future Financial Servicess Pvt. Ltd. NRI Non-Resident Indian
FRMS Fraud Risk Management System Opex Operating Expenses
HNIs High Net worth Individuals ODFD Overdraft Against Fixed Deposit
IBPC Inter Bank Participation Certificate PCR Provision Coverage Ratio
IFAPL India Finserve Advisors Private Limited Q-o-Q Quarter on Quarter
IMPS Immediate Payment Service RoA Return on Assets
IVFA India Value Fund Advisors RoE Return on Equity
IVR Interactive Voice Response RTGS Real Time Gross Settlement
KYC Know Your Customer SFB Small Finance Bank
KLI Kotak Mahindra Life Insurance Company SLR Statutory Liquidity Ratio
LCR Liquidity Coverage Ratio UT Union Territory
LAG Loan Against Gold UPI Unified Payment Interface
LAP Loan Against Property Y-o-Y Year on Year
LAF Liquidity Adjustment Facility
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