AUBANKNSE25 January 2024

AU Small Finance Bank Limited has informed the Exchange about Investor Presentation

AU Small Finance Bank Limited

Ref. No.: AUSFB/SEC/2023-24/315 Date: January 25, 2024

To,

National Stock Exchange of India Ltd. Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (East), Mumbai 400051, Maharashtra.

NSE Symbol: AUBANK

Dear Sir/Madam,

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400001, Maharashtra.

Scrip Code: 540611, 958400, 974093, 974094 & 974095

Sub: Presentation to Investors on Unaudited Financial Results of AU Small Finance Bank Limited for the Quarter and Nine months ended on December 31, 2023

Ref: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

In continuation to our intimation for Conference Call to discuss Financial Results of AU Small Finance Bank Limited (“the Bank”) for the Quarter and Nine months ended on December 31, 2023 vide letter dated January 16, 2024, we submit herewith the Investors Presentation on the Unaudited Financial Results of the Bank for the Quarter and Nine months ended on December 31, 2023.

The Investors Presentation may also be accessed on the website of the Bank at the https://www.aubank.in/investors/quarterly-reports.

link:

Further, the audio/video recordings and transcript of the Conference call shall also be made available at the above link within the prescribed timelines.

This is for your information and records.

Thanking You,

Yours faithfully, For AU SMALL FINANCE BANK LIMITED

Manmohan Parnami Company Secretary and Compliance Officer Membership No.: F9999 investorrelations@aubank.in

Encl: As above

Management Update

Assets Performance

Operating & Financial Highlights

Digital Bank AU0101

Liabilities Performance

Other Key Information

1. Management Update

In the journey of building a “Forever Bank”

RoA at 1.6% and RoE at 13.4% for 9M’FY24

Focus on productivity & efficiency through digitization and other initiatives

Won “The Best Small Finance Bank” at Mint BFSI Awards 2023

Resolute focus on building a sustainable bank

Working on multiple fronts to deliver a complete bank to our customers

❑ Management remains committed to building an immaculate, compliant and sustainable foundation and platform in

the first 10 years of our banking journey i.e. till Mar’27. A strong foundation will set the Bank ‘On a Forever Journey’

❑ The first ~7 years of the journey has been absolutely on-track with regulatory framework implemented in spirit and to the

core; bank remains steadfast to deliver a complete and comprehensive banking experience for our customers

❑ Every parameter needed to build a sustainable Bank is being worked upon – Deposits, Assets, Digital, Transaction banking,

payments infra, Tech, Leadership development, Governance, Asset quality, Customer focus, Cyber security or ESG

❑ With AD-I operationalization expected in next few months and on completion of the proposed merger with Fincare, the Bank will be in a position to offer every product to all category of customers – be it domestic or cross border, be it bottom of the pyramid customer or ultra HNI

❑ Additional areas of attention for franchise buildout

▪

Investment in Brand buildout with focus on challenging the status quo

▪ Building Wealth management and Insurance distribution to support deposits and cross-sell

▪ Scaling Video Banking + AU0101 as an independent digital unit and alternate channel

▪ Exemplary focus on Leadership and human capital development – aligning purpose and culture at design level

▪ Prioritizing Efficiency and productivity – Similar manpower over last 8 quarters with business growing at ~25% CAGR

on both loans and deposits

Recognition of evolving landscape

In last 7-8 quarter, aligned business model to balance all stakeholder’s expectation

❑ During the last 24 months, Bank has been perceptive of evolving landscape and changes in the banking industry and has prioritized sustainability of business model over everything. We have meticulously ensured compliance in both letter and spirit across all controllables, making us acceptable to all the stakeholders

▪ Brought down LDR Ratio/ CD ratio to 83% level

▪ Calibrated Loan growth to a more sustainable range of 25-28%

▪ Maintained LCR in the range of 120%+ with additional liquidity in high quality non-LCR instruments

▪ Reduced reliance on Wholesale deposits with CASA maintained at 33%; CASA + Retail TD at 64%

▪ Avoided partnership with FinTech for digital lending – piloted our own digital products and services

▪ Proceeded cautiously on Unsecured lending (4–5%), even though this remains a high yielding and scalable

segment

▪ Diversified away from Fixed rate loan book to achieve 62% : 38% ratio of fixed rate to floating rate loans; which

will help to manage cycles better and reduce earnings volatility

▪

Improved Provisioning Coverage ratio (PCR) to 72% despite underlying book being predominately secured

▪ Announced merger with Fincare to deepen Financial Inclusion via JLG lending and expand distribution

▪ Strengthened Governance by expanding Board - 80% independent directors, 20% women directors

Balance sheet crosses ₹1 lac Cr and Deposits exceed ₹80,000 Cr

Strong operating performance – PPoP growth 28%/18% for 9M’FY24/Q3’FY24

❑ Liquidity remained tight and Interest rates continue to be elevated amidst persistent competition for deposits

❑ Amidst this backdrop, Bank grew sustainably with Deposits crossing ₹80,000 Cr; Loan portfolio, gross of

securitized assets, crossed ₹75,000 Cr and balance sheet crossed ₹1 Lac Cr

❑ NII grew by 15% YoY and 6% QoQ to ₹1,325 Cr; Other income grew by 6% QoQ and 52% YoY to ₹450 Cr supported

by fee income from credit cards and third-party product distribution

❑ Cost of funds increased by 77 bps in 9M’FY24 and 20bps in the Q3’FY24. Our disbursement yield increased by 38bps YTD. Margin compression during Q3’FY24 was 6 bps on QoQ basis with overall NIM at 5.5% for Q3 and 5.6% for 9M’FY24

Asset quality within range - No EWS; SMA book declines by 250bps in 18 months

❑ Slippage at ₹403 Cr in Q3’FY24 as compared to ₹349 Cr in Q2’FY24 and ₹231 Cr in Q3’FY23. As Credit card book

scales, the slippages are coming inline with industry trends

❑ Credit cost net of recovery for the quarter normalized to 61bps as Bank wrote-off ₹119 Cr of portfolio in Q3’FY24

❑ Asset quality remains range-bound with no specific pockets of stress or any EWS; SMA book has declined by ~250bps over last 18 months reflecting de-risking of the portfolio – from 14.49% in June’22 to 11.95% as on Dec’23

Pro-active investments to diversify and build capacity for scale

Merger remains on track - to aid diversification across product and geography

❑ Merger with Fincare SFB is on track; received CCI approval earlier this week and awaiting approval from RBI

❑ Merger will provide us access to higher margin businesses of JLG lending and gold loan whereas also giving us a footprint in Southern India. Our branch strength will increase by ~150 deposit branches and a total of ~1,300 touchpoints. MBL and HL businesses to get a boost of newer markets

❑ The merger overall will be accretive to the Bank across margins, profitability and book value. However, there will

be a stamp duty and other incidental impact of ~80 Cr in the quarter when merger gets completed

We continue to invest in our Tech for enhanced productivity and efficiency

❑ We are continuously expanding and upgrading our tech architecture for our future scale - migrated AU0101 to cloud, expanded Data Center infrastructure at Mumbai, rolled out our cloud native Data Lake with our Credit Card SBU and piloted Analytical Workbench that has strengthened our data science team’s analytical models

❑ Our manpower has been relatively stable over last 8 quarters despite the business growing at ~25%+ CAGR on

both Loans and Deposits during this period

❑ Entire 2-wheeler and Personal Car portfolio is now migrated on SFDC + FICO platform. This has enabled close to

30% STP for our 2-wheeler business; piloted personal car STP journey with 100+ successful cases

❑ This, along with other automation projects has resulted in significant productivity lift for our on-ground sales,

credit and operations teams

Q3’FY24 Financial performance snapshot

Balance Sheet

Deposits

Gross Advance

Securitised Advances

₹1,01,176 Cr +25% YoY

₹80,120 Cr +31% YoY

₹67,624 Cr +20% YoY

₹8,553 Cr

CASA/CD Ratio

33%/83%

❑ Deposits grew 6% QoQ with CASA growth of 3% QoQ; CASA ratio at 33% led by 8% QoQ

growth in SA deposits; CASA + Retail TD mix at 64%

❑ The deposits continue to reprice, and the cost of funds rose by 20bps QoQ to 6.90%

with average CoF for 9M’FY24 at 6.74%

❑ Gross Advance growth at 20% YoY was marginally lower due to high base effect as there was no major securitization during Q3’FY23; Securitization picked up from Mar’23 and thus base effect for gross advance growth will normalize from next qrtr

❑ Bank securitized ₹2,740 Cr of loans during the quarter across Wheels and Home loans.

The total securitized book stands at ₹ 8,553 Cr as on Q3’FY24

❑ GNPA increased by 7 bps during the quarter to 1.98%; Adjusting for securitised book, GNPA is at 1.83% vs 1.80% as on Q2’FY23; Standard restructured assets have reduced to 0.7% of gross advances

❑ In Q3’FY24, PPoP saw a strong growth of 18% YoY backed by NII growth of 15% YoY

GNPA/NNPA

1.98%/0.68%

and Other Income growth of 52% YoY

Net Profit

₹375 Cr -4% YoY

RoA/RoE

1.5%/12.5%

❑ Cost/Income ratio for Q3’FY24 at 63.0% vs. 61.6% in Q3’FY23; 9M’FY24 C/I ratio at 63.1%

❑ PCR at 72%; Bank has ₹83 Cr of provision against contingency and standard

restructured assets and ₹41 Cr of floating provisions.

❑ For 9M’FY24, PAT grew by 16% YoY at ₹1,164 Cr vs ₹1,003 Cr in 9M’FY23, RoA and RoE

for 9M’FY24 at 1.6% and 13.4% respectively

❑ Average LCR for the quarter was at 123%

Tier I/CRAR

19.6%/20.8%

❑ Including interim profit for Q3’FY24, CRAR at 21.5% and Tier I at 20.2%

Figures throughout this presentation may be subject to rounding adjustments and therefore may not sum precisely to totals given in charts, tables or commentary

Update on focus areas for FY24

NIM

NIM is expected to be at the lower end of the guided range of 5.5%- 5.7%

❑ Margin for 9M’FY24 at 5.6% has been in line with our expectation

Profitability and ROA

9M’FY24 RoA at 1.6%

❑ Other Income has grown by 70% in 9M to support impact from

▪ Interest rates continues to remain elevated and with strong

increase in Cost of funds

competitive intensity

▪ Incrementally disbursement yield improved by ~38 bps YTD Dec

❑ For secured book, credit cost is higher than previous year as it has

vis a vis FY23

started normalising post the lows of covid era

❑ Higher % of fixed rate book in our advances will help us once interest

rate cycle reverses

❑ Slippages and credit cost for the credit cards portfolio is in line with the industry average as the book attains a reasonable size and gets seasoned

Cost to Income Ratio

FY24 expected to be in FY23 range

❑ Cost to Income for 9M’FY23 at 63%, similar level to FY23

❑ Apart from investment in digital initiatives and wealth and transaction banking, Q3’FY24 saw an increased spend on Brand and marketing in the festive season

❑ Most of the profit pools remain on track to start delivering by FY26 –

credit card, wealth, digital, transaction banking, x-sell etc.

Key Focus Areas

1. Deposits & CoF – deposit growth higher, cost of fund elevated and

liquidity buffers maintained

2. Business Group – Re-aligned in 5 Business groups to build synergies.

(Detailed in page no. 10)

3. Digitalization – Live on salesforce for Wheels; working on Robotics

and AI to achieve process optimisation

4. Transaction Banking – Operationalization of AD-I License on track

Consolidation and Realignment of Business Groups

Urban Branch Banking

(Focused on Urban Affluent market)

Swadesh Banking, Government and Wholesale Deposits

(Focused on Core market)

o SMF (Small and Marginal

Farmer) Lending

o Financial and Digital Inclusion

Insurance

Payments

Wealth & PMS

CMS

Digital Bank AU0101

Digital Products

Digital Services

o AU0101 + Video Banking

o Merchant App

o Credit Card

o Personal Loan

o UPI QR, POS

o Merchant Lending

o Chatbot

o WhatsApp Banking

Retail Assets

o Wheels

o Micro Business Loan (MBL)

o Home Loan

Commercial Banking

o Business Banking

o Agri Banking

o Real Estate Group

o NBFC Lending

o Trade &

Transaction Banking

Note: Micro Business Loan (MBL) was earlier known as Secured Business Loan (SBL)

Our digital proposition continues to scale well

AU0101

Video Banking

Credit Cards

UPI QRs

26 Lacs Customers on AU0101

4.7 Lacs Digital Savings Accounts

8.3 Lacs Live cards

~11.2 lacs QR Codes installed

14 Lacs Monthly Active Users

1,500 Cr Total relationship value

1,760 Cr Monthly spends in Dec’23

350 Cr Business loan disbursed basis QR transactions

12 Lacs Customers with pre- approved offers in Dec’23

19% Customers with two or more products

75% Cards issued to NTB

69% QRs activation rate

1,250 Cr Digital Personal Loans disbursed

90k Service and engagement video calls in Q3’FY24

60% Monthly purchase active Dec’23

106% Increase in CASA AMB post QR Code install

All the figures are cumulative till Q3’FY24 except otherwise mentioned

Business model - deposits from Urban markets and lending in Core markets

Deposits Break up

Advances Break up

21%

(23%)

0.4% Market share

79%

(77%)

Urban

Core

38%

(36%)

0.4% Market share

62%

(64%)

Serving ~46.8 Lacs customers across 260 districts and 727 locations

10%

25%

20%

13%

Deposits

Rajasthan

Maharashtra

Delhi

Punjab

Gujarat

Haryana

Madhya Pradesh

Uttar Pradesh

Himachal Pradesh

Karnataka

Chhattisgarh

West Bengal

Others

1% 2%

16%

11%

33%

14%

Advances

All figures are as on 31st Dec’23; Figures in parenthesis are as on 31st Dec’22

Our geographical presence

21 States and 3 UTs

1,049 Touchpoints

260 Districts

727 Locations

495 ATMs

J&K 2

HP 15

Punjab 52

Haryana 52

Rajasthan 402 (+1)

MP 142 (+3)

Gujarat 154 (+3)

Maharashtra 115

Goa 2

Karnataka 9

Kerala 1

Chandigarh 3

Uttarakhand 1

Delhi 37

UP 19

Assam 1

Bihar 1

Jharkhand 1

West Bengal 7

Chhattisgarh 21

Odisha 1

Touchpoints Break-up

29%

71%

Urban

Core

AU Asset Center

476 Branches

230 Asset Centres

AP 1

Telangana 6

1,049 Touchpoints

343 Unbanked Rural Centres

Tamil Nadu 4

AU BANK

AU BO

78 Unbanked Branches

252 BOs

12 Smart BCs + 1 Corporate BC

Figures in parenthesis are the touchpoints added in Q3’FY24; Map is for representative purpose only. Not to scale

2. Operating & Financial Highlights

Deposits grows by 31% YoY and 6% QoQ

Balance Sheet crossed ₹1 lac Cr

9M’FY24 PPoP growth of 28% YoY

NIM for 9M’FY24 stands at 5.6% including securitised book

Profitability ratios

NII (%)

RoA Components

Other Income (%)

5.8%

5.4%

5.7%

5.3%

1.5%

1.8%

1.2%

1.7%

Q3'FY23 Q3'FY24

9M'FY23 9M'FY24

Q3'FY23 Q3'FY24

9M'FY23 9M'FY24

Opex (%)

Provision & Contingencies (%)

4.5%

4.4%

Q3'FY23 Q3'FY24

9M'FY23 9M'FY24

0.6%

0.2%

0.4%

0.2%

Q3'FY23 Q3'FY24

9M'FY23 9M'FY24

RoA (%)

Cost to Income (%)

RoE (%)

2.0%

1.5%

1.8%

1.6%

61.6%

63.0%

15.2%

12.5%

14.8%

13.4%

Q3'FY23 Q3'FY24

9M'FY23 9M'FY24

Q3'FY23 Q3'FY24

9M'FY23 9M'FY24

Q3'FY23 Q3'FY24

9M'FY23 9M'FY24

Note: RoA, NII, Other income, Opex, Provisions & Contingencies is represented as % of Avg. Total Asset

9M’FY24 Financial highlights

Net Interest Income

Total Income

PAT

₹ in Crores

3,212

3,820

8,915

6,632

1,164

1,003

9M'FY23

9M'FY24

9M'FY23

9M'FY24

9M'FY23

9M'FY24

Yield on Advance

Cost of Fund

Net Interest Margin

RoA

RoE

Vs 13.3% (9M’FY23)

GNPA

Vs. 1.81% (31st Dec’22)

Vs 5.8% (9M’FY23)

Vs 6.1% (9M’FY23)

Vs 1.8% (9M’FY23)

Vs 14.8% (9M’FY23)

NNPA

Provision Coverage Ratio

CRAR

Tier-I CRAR

Vs 0.51% (31st Dec’22)

Vs 74% (31st Dec’22)

Vs 22.0% (31st Dec’22)

Vs 20.0% (31st Dec’22)

Note – Tier I /CRAR as on Dec’23 excludes interim profits for Q3’FY24

Quarterly trends of key parameters

Customers

Employees

Shareholders’ Funds

Total B/S Assets

(in Lacs)

38.6

41.3

35.7

(in 000s)

44.3

46.8

27.8

28.3

28.4

28.5

28.9

10,540 10,977

11,379

11,763

12,167

90,216 91,583 95,977

1,01,176

80,703

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

4 2 Y F 2 Q

4 2 Y F 3 Q

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

4 2 Y F 2 Q

4 2 Y F 3 Q

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

4 2 Y F 2 Q

4 2 Y F 3 Q

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

4 2 Y F 2 Q

4 2 Y F 3 Q

Deposits

CASA Deposit

Gross Advances

GNPA and NNPA (%)

69,365 69,315

61,101

75,743

80,120

26,660

24,286

25,666 26,446

23,471

56,335 59,158

63,635 65,029 67,624

1.96%

1.81%

1.66% 1.76%

1.98%

38%

35%

34%

33%

0.56%

0.51% 0.42% 0.55% 0.68%

GNPA

NNPA

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

4 2 Y F 2 Q

4 2 Y F 3 Q

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

4 2 Y F 2 Q

4 2 Y F 3 Q

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

4 2 Y F 2 Q

4 2 Y F 3 Q

3 2 Y F ' 1

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

₹ in Crores

4 2 Y F 2 Q

Quarterly trends of key parameters

₹ in Crores

Net Interest Income

Total Income

PAT

Gross Advance Yield

1,153

1,213

1,246

1,249

1,325

2,608

2,773

2,413

3,186

2,957

425

393

387

402

375

13.4% 13.4% 13.4% 13.3% 13.2%

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

4 2 Y F 2 Q

4 2 Y F 3 Q

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

4 2 Y F 2 Q

4 2 Y F 3 Q

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

4 2 Y F 2 Q

4 2 Y F 3 Q

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

4 2 Y F 2 Q

4 2 Y F 3 Q

Cost of Fund

Net Interest Margin

RoA

RoE

6.0% 6.3% 6.6% 6.7% 6.9%

6.2%

6.1%

5.7%

5.5%

2.0% 2.0%

1.7%

1.5%

15.2% 15.8%

13.8% 13.9%

12.5%

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

4 2 Y F 2 Q

4 2 Y F 3 Q

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

4 2 Y F 2 Q

4 2 Y F 3 Q

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

4 2 Y F 2 Q

4 2 Y F 3 Q

3 2 Y F 3 Q

3 2 Y F 4 Q

4 2 Y F ' 1

4 2 Y F 2 Q

4 2 Y F 3 Q

Profit & Loss statement

(All Figures in ₹ Crore)

9M'FY24 9M'FY23

YoY

Q3'FY24 Q3'FY23

YoY

Q2'FY24 QoQ

In Q3’FY24 :

Income

Interest Earned

Interest Expended

Net Interest Income

Treasury Income

Other Income (excl. Treasury)

Total Other Income

Net Income (NII + Other Income)

Expenses

Employee Cost

Other Operating Expenses

Operating Expenses

PPoP

Provisions

Profit Before Tax

Tax expenses

Profit After Tax

7,725

3,905

3,820

1,146

1,190

5,931

2,718

3,212

-45

747

701

30%

44%

19%

N.A

53%

70%

2,736

1,411

1,325

433

450

2,118

965

1,153

287

295

29%

46%

15%

121%

51%

52%

2,531

1,282

1,249

415

425

5,010

3,913

28%

1,775

1,448

23%

1,674

1,548

1,612

3,160

1,851

306

1,545

381

1,164

1,311

1,154

2,465

1,449

114

1,335

331

1,003

18%

40%

28%

169%

16%

15%

16%

529

589

1,117

657

160

498

123

375

465

427

892

556

523

130

393

13%

38%

25%

18%

389%

-5%

-6%

-4%

512

515

1,027

648

114

533

132

402

10%

55%

14%

40%

-7%

❑ PPoP grew at 18% YoY supported by

Other Income

❑ Securitization of ₹2,740 Cr of loan

portfolio during the quarter

❑ NII saw support from income on securitised book as the overall securitised portfolio reached ₹8,553 Cr

❑ Inflationary pressures in the input cost remain key monitorable for operating expenses in the current environment which are off-setted by building efficiency in the system

Balance sheet

(All Figures in ₹ Crore)

31st Dec'23 31st Dec'22 YoY 30th Sep'23 QoQ

31-Mar-23

YTD

Liabilities

Shareholders Fund

Deposits

Borrowings

Other Liabilities and Provisions

Total Liabilities

Assets

Cash and Balances

Investments

Advances

Fixed Assets

Other Assets

Total Assets

12,167

80,120

5,414

10,540

61,101

6,191

15%

31%

11,763

75,743

-13%

5,344

3,474

2,871

21%

3,128

1,01,176

80,703

25%

95,977

5,155

26,714

66,740

807

1,760

3,825

19,270

55,601

711

1,296

1,01,176

80,703

35%

39%

20%

13%

36%

25%

6,257

23,220

64,168

757

1,574

95,977

11%

-18%

15%

12%

Securitised Loan Assets

8,553

2,248

280%

6,591

30%

10,977

69,365

6,299

3,575

90,216

9,425

20,391

58,422

740

1,557

90,216

4,914

11%

16%

-14%

-3%

12%

-45%

31%

14%

13%

12%

74%

❑ A Stable and healthy balance sheet

led by -

▪

Strong Capital adequacy ratio

of 20.8%

▪ Deposit led asset growth – CD

ratio at 83%; Borrowings at 5%,

mostly refinance (77%) and

Tier II borrowings (18%)

Note - CRAR as on Dec’23 is excluding interim profits for Q3’FY24

Other Income

(All Figures in ₹ Crore)

9M'FY24 9M'FY23

YoY

Q3'FY24 Q3'FY23

YoY

Q2'FY24

QoQ

Loan Assets Processing & Other Fees

General Banking, Cross Sell & Deposits related fees

PSLC Fees

Credit Card

Miscellaneous

Core Other Income

Income from Treasury Operations

Other Income

549

310

211

1,146

1,190

454

140

747

-45

701

21%

122%

N.A

199%

76%

53%

N.A

70%

200

125

433

450

171

287

295

17%

141%

N.A

191%

-3%

51%

121%

52%

184

130

415

425

-4%

N.A

31%

-42%

55%

❑ Core Other Income growth for Q3’FY24 is at 51% YoY driven by fee income from credit cards and third-party product distribution

❑ Miscellaneous Income includes trade income and recovery from written off loans

Operating expense breakup

(All Figures in ₹ Crore)

9M'FY24 9M'FY23

YoY

Q3'FY24 Q3'FY23

YoY

Q2'FY24 QoQ

Employee cost (other than new business Initiatives)

Other Operating expenses towards Business as Usual (BAU)

New Business Initiatives (cards, QR, VB, brand & distribution)

Credit card/ QR / video banking

Distribution expansion

Branding expenses

Total Operating Expenses

1,399

1,213

547

455

1,136

978

351

195

129

3,160

2,465

Expense Ratio

23%

24%

56%

133%

-66%

78%

28%

476

433

208

170

412

357

123

1,117

892

16%

21%

69%

139%

-85%

116%

25%

461

392

174

150

10%

20%

13%

-68%

402%

1,027

Employee Cost (other than new business Initiatives)

Other Operating expenses towards Business as Usual (BAU)

1.9%

1.7%

2.0%

-7 bps

1.7%

-5 bps

1.9%

1.8%

2.1%

1.8%

-15 bps

2.0%

-3 bps

-4 bps

1.7%

8 bps

New Business Initiatives (cards, QR, VB, brand & distribution)

0.8%

0.6%

14 bps

0.8%

0.6%

22 bps

0.7%

10 bps

Opex % (on Average Assets)

4.4%

1 bps

4.5%

3 bps

4.4%

15 bps

❑ Continued investment in cards, digital, distribution expansion and brand builout

❑ Focus on optimising operating cost and building efficiency and productivity through digital and other initiatives. Stable manpower in last 24 month

3. Liabilities Performance

CASA deposit grew 3% QoQ, CASA ratio at 33%; CASA + Retail TD at 64%

Retail TD grew 5% QoQ; Savings deposit growth of 8% YoY

CD Ratio at 83%

CoF for 9M’FY24 at 6.7%

How has the Branch Banking charter evolved in last 6 years?

Structure

Deposits

Liability Branches*

2017-18

Consolidated Unit of Liabilities Garner deposits with customer mix ranging from Government, Co-operative Banks, Retail Customers etc

2019-20

Separate Verticals Established Branch Banking, FIG, Government, Wholesale, Co- operative Bank, NBFC

2020 - 23

Branch Banking as a SBU Build a portfolio of GIST (Granular, Individual, Small Business, Transacting) customers to raise Low-cost, Stable retail deposits

2023 onwards

Swadesh Banking established to focus on our rural markets

Mar'18

7,923

41%

27%

Mar'18

212

Mar'20

12,989

13,175

26,164

44%

14%

Mar'20

215

Mar'22

34,757

17,828

52,585

67%

37%

Mar'22

229

184

Mar'23

47,968

21,397

69,365

69%

38%

Mar'23

232

242

7,659

Dec'23

51,361

21,100

80,120

64%

33%

Dec'23

232

244

Urban Branch Banking

Swadesh Banking

NBFC, FIG, Wholesales, Govt., Co-op Bank, Video Banking & CD

Total Deposits

CASA + Retail TD %

CASA %

Core

Urban

URC

*Excludes BO/BC

Deposits snapshot

Focus on granular deposits and customer profiles

₹ in Crores

Total Deposits

61,101

69,365

69,315

75,743

80,120

Certificate of Deposits

546

631

684

993

1,117 3,831

3,680

3,240

4,636

22,980

21,046

21,030

22,615

2,819

20,652

37,084

42,074

44,346

49,083

52,557

Q3'FY23 Q4'FY23 Q1'FY24 Q2'FY24 Q3'FY24

TASC

Govt

Banks

8% 11%

12%

11%

10%

14%

7% 10%

14%

4% 7% 9%

18%

6% 10%

17%

Corporates

65%

60%

65%

62%

63%

Individual+HUF+Sole Proprietor+Partneship

Q3'FY23 Q4'FY23 Q1'FY24 Q2'FY24 Q3'FY24

Daily Average balance

Retail and Bulk TD mix

2,434

2,948

2,853

4,108

3,319

20,487

20,759

21,173

20,923

21,982

Dec'22

Mar'23

Jun'23

Sep'23

Dec'23

Savings Account

Current Account

47%

50%

49%

51%

52%

53%

50% 53%

51% 50%

49% 53%

48% 54%

Q3'FY23 Q4'FY23 Q1'FY24 Q2'FY24 Q3'FY24

Retail

Bulk

Building a Predictable, Scalable and Sustainable deposit franchise

Distribution becoming sharper with expanding scale

First Principles Thinking

❑ Differentiated approach for Urban and Core markets

▪ Established Swadesh banking to cater to Semi

Urban/Rural Markets

❑ Now a Pan India Bank with Presence in 21 states & 3 UT’s

▪ From Jammu to Kochi & Mumbai to Assam

❑ Building up dedicated Channels (CA, NR,TASC, ES, KAM)

Raising Low-cost, stable retail deposits

❑ Raising solution-driven deposits through the acquisition

of GIST customers

❑ Customer segment specific approach (UYC)

▪ USPs for various segments

Dedicated focus on building Current Account Book

❑ Increasing quantity and quality of CA acquisition

❑ Deepening engagement with CA customers by

providing business solutions (QR/POS/CMS/CNB etc.)

❑ Focus on leveraging Commercial Banking ecosystem

Best-in-Class Governance

Effective Sales & Resource Management

Managed by rigorous sales management framework

❑ Ties everything together, makes the machine coherent

and brings agility to the system

▪ Balance scorecard for sales employees focused on

customer engagement, customer service and ACID (Audit, Compliance, Integrity & Discipline) ▪ Capsulized targets (with built-in Gamification)

Customer Centricity

Relationship transaction

Focused efforts on customer acquisition & engagement

❑ Increasing pace of retail CASA customers’ acquisition

❑ Dedicated efforts on customer engagement to garner

trust and gain mindshare.

❑ Putting efforts to provide more solutions (product per

customer)

Focus on catering to customer’s entire banking ecosystem

❑ Source Current accounts from customers who have entrusted us

with SA/Deposit relationship in last 6 years.

❑ Focus on Family Banking and providing comprehensive Banking

Solutions (Wealth & Insurance, Credit Card, Retail Assets, AU0101)

Wealth – Enhancing value proposition for our deposit customers

❑ Investment AUM growth of 50% from Sept’23 to Dec’23

❑ Addition of more than 16k wealth customers during the quarter

❑ Augmented our referral products offering across both Equity & Fixed Income

❑ Introduced ‘Wealth check-up’ feature on AU0101 to further enhance digital experience

Banking & Wealth Continuum

Customer Segment

Wealth Solutions

Services/Platform

2023 – PMS, AIF & Fixed Income Solutions

2022 – Mutual Funds

2019 – Savings Accounts

2017 – Fixed Deposits

IVY

Royale

Platinum & Others

Alternative Investment Funds1, Debt PMS, Bonds & other wealth services

+ +

PMS referral & Risk profile based Mutual Fund pack

Mutual Funds, Integrated ASBA/IPO & 3-in-1 broking service

Dedicated Wealth Specialist

Wealth Specialists

Branches & Video Banking

Dedicated Relationship Manager & AU0101 Platform for all segments

1.6L + Customers

36k+ Customers with live SIPs2

521 Cr Total AUM

50% QoQ

Note: 1- PMS, AIFs & Bonds are offered only on referral basis

2 - Customers with at least 1 active SIP registered through the bank

4. Assets Performance

Sustainable and Scalable business model

Disbursement yield increased by ~38 bps YTD

GNPA ratio at 1.98%; NNPA at 0.68%

PCR at 72%

Strong, secured and established asset franchise

❑ Vintage book and tested business model

❑ Unique product proposition with ~ 15 year’s of experience

❑ Growing opportunity in used and new vehicles especially in

❑ Strong collateral understanding

core markets

❑ Deep penetration in core markets;

scalable in urban

❑ Significant headroom to grow

market share given our size

❑ Banking platform gives significant

competitive advantage

❑ Significant growth potential in

affordable housing

❑ Natural competitive advantage as a

Bank vs HFC

Core Asset Principles ✓Small Ticket size ✓Backed by security ✓Risk-based pricing ✓Mainly for income generation purpose with defined end-use ✓Customer Service has been our forte ✓Strong local and ground understanding and connect

❑ Deep penetration in core markets

❑ Strong and nuanced

underwriting and legal/

technical know-how built over

a decade

❑ Complete suite of Fund based &

Non- Fund based products

❑ Presence across Business & Agri

Banking aided with NBFC and REG

❑ Strong cross-sell potential to bank’s growing customer base

helping us build the Banking franchise

❑ Natural progression to cater to 1,049 Bank’s touchpoints from

❑ Opportunity to grow with the customer

~249 currently

as their house bank

❑ Entire suite of products available to meet customer requirements

❑ AD-I will provide further impetus and

cater wider customer base

*% of Gross Advances as on 31st Dec’23; Commercial Banking book is excluding SME

Asset book snapshot

₹ in Crores

Segments

Vintage (Year)

Gross Advances

Assigned/ Securitised loans

Yield (%)

Gross NPA

Gross NPA (%)

Gross Advances

Assigned/ Securitised loans

Yield (%)

Gross NPA (%)

Gross Advances

Assigned/ Securitised loans

Yield (%)

Gross NPA (%)

Q3'FY24

Q3'FY23

Q2’FY24

Wheels

Micro Business Loans

Home Loan

Commercial Assets

- Business Banking

- Agri Banking

- NBFC

- REG

Credit Card

Personal Loan

Others*

1996

2007

2017

2018

2014

2013

2022

2020

SME (Run Down)

2010

20,375

19,231

5,306

16,386

6,806

5,337

2,697

1,546

2,740

794

2,608

185

6,693

1,702

151

14.3%

14.8%

11.6%

11.0%

10.4%

10.5%

11.4%

14.9%

12.0%

18.0%

12.7%

533

596

2.6%

3.1%

0.6%

0.4%

0.5%

0.3%

0.1%

1.9%

4.0%

0.5%

19,481

18,098

2,051

185

3,695

11,179

4,370

3,446

2,313

1,050

1,072

576

1,959

13.9%

15.0%

11.8%

10.9%

10.2%

10.5%

11.0%

14.6%

13.6%

17.9%

10.0%

276

12.3%

2.2%

2.7%

0.4%

0.3%

0.2%

0.6%

0.0%

0.6%

1.1%

2.3%

0.2%

8.7%

20,738

18,602

5,069

14,800

6,134

4,757

2,547

1,362

2,265

744

2,601

210

4,770

1,812

14.2%

14.9%

11.6%

11.0%

10.4%

10.5%

11.3%

14.9%

12.7%

18.0%

2.5%

3.0%

0.5%

0.3%

0.4%

0.2%

1.7%

3.4%

0.3%

12.5%

10.2%

Total

67,624

8,553

13.2% 1,340 1.98% 56,335

2,251

13.4% 1.81%

65,029

6,591

13.3% 1.91%

❑ Standard Covid restructured book declined to 0.7% of gross advances; Restructured advances of ₹12 Cr upgraded during the quarter

*Others includes ODFD, Term lending and Gold loans etc.

Provisioning summary

Credit Cost

Provision on NPA

Repossession loss & POS loss

Write off

Standard & other provision

Covid restructuring provision Less: Bad Debt Recovery (Other Income)*

Net Credit Cost (A)

Q3’FY24

Q3’FY23

Q2’FY24

9M’FY24

9M’FY23

119

-11 7

154

-21

11 53

-11 19

116

147

190

-38

34 358

-65

17 156

Net Credit Cost (% of Avg. Total Assets)

0.62%**

0.27%

0.49%

0.50%

0.28%

Less : Contingency Provision (B)

Add: Bad Debt recovery* (C)

Total Provision Expense (charged to P&L = A+C-B)

2 7

159

31 11

21 19

114

85 34

306

59 17

114

Total Provision Expense (as % of Avg. Total Assets)

0.64%

0.16%

0.49%

0.43%

0.20%

❑ As the Credit card book attains a size and gets seasoned, the credit cost for the same is getting normalized and in line with industry average.

❑ **Ex of Credit cards, net credit cost has normalized at 0.44% for Q3’FY24 and 0.36% for 9M’FY24 without adjusting for Contingency utilization

*This is reported in the other income line; Credit cost and Provisions expense % are annualized

NPA movement

NPA Movement

Opening NPA

Additions during the period*

Less: Recoveries & Write Offs during the period

Q3'FY24

Q3'FY23

Q2'FY24

Q9'FY24

Q9'FY23

1,245

403

308

997

231

209

1,121

349

226

981

1069

711

924

746

652

Closing NPA

1,340

1,019

1,245

1,340

1,019

NPA Summary

Gross NPA

Less: Cumulative Provisions

Net NPA

Gross NPA Ratio

Net NPA Ratio

Provision Coverage Ratio

GNPA % (Incl. Securitized Book)

Q3'FY24 Q3'FY23 Q2'FY24

1,340

884

456

1.98%

0.68%

72%

1.83%

1,019

734

285

1.81%

0.51%

75%

1,245

860

385

1.91%

0.60%

73%

1.85%

1.80%

*Additions/Reductions to GNPA presented for the quarter exclude any intra-quarter additions and reductions i.e., Loans which slipped into NPA during the quarter, and which got

subsequently upgraded/write off within the same quarter are excluded; For the 9 months, figures from the first 3 quarters of the year has been added for addition/reductions

Overview of total provisions

₹ in Crores

Particulars

GNPA

Nos.

60,535

Covid related restructuring (Standard)

5,157

Contingency provisions

Floating provisions

Loan Amount

1,340

468

Stressed and contingencies provisions

1,808

Provisions towards Standard Assets

Total Provisions

Provisions as a % of gross advances

❑ The Bank’s provision coverage ratio stands at 72%

Dec’23

Sep’23

Provisions

Coverage

Nos.

63%

16%

55,897

5,985

843

966

215

1,181

1.75%

Loan Amount

1,245

532

1,777

Provisions

Coverage

66%

17%

819

956

208

1,164

1.79%

❑ GNPA ratio stood at 1.98% compared to 1.91% in previous quarter; Standard Restructured loans declined to 0.7% vs 0.8% QoQ

❑ Bank as on 31st Dec’23 has ₹83 Cr of provisions against contingency and standard restructuring book

5. Digital Bank AU0101

26 Lacs+ customers registered on AU0101

45% new customers acquired via digital products in Q3’FY24

Launched first co-branded credit card with travel portal ‘ixigo’

50%+ savings account and credit card customers acquired digitally in Q3’FY24

Digital Bank AU0101 reorganized as a business group….

Reorganised and established Digital Bank AU0101 as a business unit to maximize organisational effectiveness and focus on building a sustainable digital franchise

Key strategic objectives for Digital Bank AU0101

Grow retail focused, stable, low-cost deposit franchise

Develop unsecured lending capability using Data & Analytics

Build digital distribution channels

Invest in technology to remain future ready

Drive automation and operating efficiency

…. With clearly defined priorities for Digital bank AU0101

ACQUIRE Expanding Product Suite across Savings Account, Current

Account, Fixed Deposit, Corporate Salary, Credit Cards, Merchant Lending and Personal Loan*. Building

differentiated product suite for digital native customers.

ENGAGE Accelerators⁺ like Account Aggregator, Bureau View, Video Banking and PFM’ in addition to Banking , to enhance customers experience and enrich data. Giving

more reasons to a customers to bank with us.

GROW Personalized communication based on triggers and

behavioral analysis; Product offerings to increase Product holding per customer across cards, loans,

accounts, insurance and wealth products

Target Digitally Native Customers Gen Z, Millennials, Urban,

Salaried and Professionals

*NTB PL planned for Q4’FY24 launch; ⁺In pipeline

01 | Target Digitally Native Customers, Savings Account Case Study

PAN India digital Reach and growing…

Customer Persona

75%

51%

77%

Urban

Salaried professionals

18-35 years age

Acquisition Channel

61%

Inorganic Channel

Organic Channels

25%

14%

Ads & Affiliates

Website

AU 0101

Device Profile

Mobile

Desktop

95%

Darker color shading represents higher customer density

02 | Acquiring by continuedly expanding digital product suite….

FY22

Product additions, improvements and new features

FY24

New Launches

FY24

Savings Account

Credit Card

Current Account

Corporate Salary

Savings Account*

Credit Card*

Current Account

Corporate Salary*

Digital Acquisition

Bank-wide sourcing Contribution in Q3

Organic AU0101 and Website

30%

20%

3,550+

Uptick in Savings Account QoQ acquisition

Uptick in Credit Card QoQ acquisition

Current Account acquired digitally in Q3 FY24

1,150+

Corporate Salary acquired digitally in Q3 FY24

53% Contribution of Savings Account sourced

20% Savings Account contribution via AU0101 and website

55% Contribution of Credit cards sourced

15% Contribution to total Current account in Bank

4% Contribution to total Corporate account in Bank

3% Credit Card contribution via AU0101 and website

Sharp focus on increasing organic contribution to acquisition

Excluding BSBDA accounts. *Digital Acquisition;

…accelerating customer acquisition at lower cost

Accelerated acquisition through digital proposition…

AU0101 launch

…at much lower cost

100

13.5 Lacs

<50

) s c a L (

s r e m o t s u c f o

o N

FY 20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY 21 FY 22

FY 23

FY24

Total customers

Customers acquired through non-digital products

45% new customers acquisitions in Q3’FY24 via Digital Products

Branch

Digital

Cost of SA acquisition (indexed to 100 for branch)

Notes: Excluding dormant A/c

03| AU0101 – 6X growth since launch with 2.5 million+ on AU0101

Increasing Bank Wide customer engagement…

6X Growth on AU0101 since launch

Monthly transacting customers (Lacs)

Dec'22 Dec'23 Dec'22 Dec'23

1.3

1.6

10.2

10.8

Transacting customers as % of total customers1

70%

68%

57%

59%

Avg. monthly transactions per transacting customers

Product per customer (PPC)

2.0

1.6

…at lower incremental cost to serve

10%

99% Digital transactions2

91% Liability service requests fulfilled digitally

Branch SA

Video Banking SA

% SA customers visiting branches for any service3

Registered Users

10.5

11.9

14.3

16.3

4.5

5.8

7.8

26.3

23.7

19.2

21.2

Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23

Monthly Active Users

12.2

13.1

14.1

11.0

9.2

8.1

2.3

3.2

4.4

5.9

6.7

Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23

25 Lac Service Requests served in Q3

3 ~1.1 Cr Financial Transactions done in Q3

~240k Average Daily Users in Q3

Notes: 1: Excluding dormant and BSBDA 2: CASA customer-initiated transactions 3: Money transfer (Internal, IMPS, NEFT, RTGS), UPI, Bill Payment, Lifestyle

03| High engagement among digitally acquired customers

Savings Account

86% Transaction active customers

83% Active debit card customers

92% Active on AU0101

Credit Card

62%

Purchase active customers (30 days)

₹20K+ Spends per month

90% Active on AU0101

Current Account

77% Transactionally active customers

84%

Active on AU0101

04| Growing by fulfilling more of customer needs across their lifecycle

Activate

Grow

Cross Sell

Upgrade

❑ Activating across banking suite on AU0101 and Video Banking

❑ Activate Account

Aggregator, D2C Bureau Reports and PFM

❑ Activate Debit and Credit Cards, Transactions, Payments and UPI handle creation

❑ Grow relationship by

understanding customers’ wallet size and persona

❑ Leverage Personalization, trigger-based nudges and behaviour

❑ Build balances, drive card

spends and unsecured loan book

❑ Pitch the right product, to the right customers at the right moment

❑ Upgrade customers’

product suite across their life cycle

❑ In App full stack offerings

❑ Upgrade accounts, cards and

across cards, loans, insurance, wealth and accounts

❑ Leveraging differentiated product suite tailored for digitally native customers

loans suitable for customers life cycle

❑ In App nudges to upgrade

accounts, cards and loans

Credit Card - continues to scale with strong performance across key metrics

8.3 lacs+ Cards Live

4,950 Cr+ Spends In Q3’FY24

~75% % Issuance to NTB Customers overall

1.74 lacs Average limit per card

1.49 lacs # New users acquired in Q3’FY24

❑

Monthly acquisition ~ 49,000 per month leading to card CIF growth of 18.5% in Q3’FY24 over Q2’FY24

Average monthly spends ~ ₹1,600 Cr with Spend per Card (SPC) of ~ ₹21,000+/month during the quarter

Consistent growth in corporate Card business with 130+ new corporates onboarded in Q3’FY24

o Good traction on Super

premium Card Zenith+ at an annual fee of ₹5,000.

o Spend per Card of 90K+ observed on Zenith+

o Virtual Rupay Card (Insta Pay) issued to enable UPI transactions for existing AU Bank Credit Card holders

o Spends of 15K+ / month observed on InstaPay

Credit Cards.

o 2.8X Transactions per month per user as

compared to other cards.

Credit Cards – First co-brand launch + participation in Amazon Great India Festival

❑ First co-branded Credit Card launched in

❑ 1st Small finance bank to participate in Amazon

partnership with ixigo

Great India Festival during Diwali

❑ Offers across travel categories flights,

❑ 60 Offer campaigns leading to 29 lac transactions

hotels, trains and more

❑ Access to 15 Cr ixigo users, larger

customer traction in Tier II/ Tier III cities

❑ Opportunity to tap travel segment Card

users and increase user traction

and 2,000+ Cr spends during the campaign duration

❑ 59.5 Cr digital impressions achieved through

merchants like Amazon, Zomato, Reliance digital, EaseMytrip etc.

UPI QR - deepening our relationship with small merchants

Acquisition

~11.2 Lacs

69%

UPI QRs installed till Q3’FY24

Activation rate*

2.5 Lacs

NTB customers acquired through UPI QR till Q3’FY24

Engagement

~2.4 Cr Transactions in Q3’FY24

~2.7 Lacs Daily average transactions in Dec‘23

₹2,674 Cr Value of transactions in Q3’FY24

92% Value of transactions credited to AU accounts in Q3’FY24

106% Increase in CASA AMB (Average Monthly Balance) post QR install

Lending

*At least one transaction after QR setup

~₹350 Cr+ Loans disbursed basis transactions data till Q3’FY24

₹2.0 Lacs Average loan ticket size

6. Other Key Information

Strengthening our brand – “Badlaav Humse Hai“

17,900+ Youth trained under skill development program and 14,020+ youths employed

2 youth, part of AU Bano champion programme, selected for National U-17 football team

Promoting Green Fixed Deposit product “Planet First”

Brand Campaign | Badlaav Humse Hai

Kantar Brand Track

Brand Awareness Lift

18% vs 2% Industry Average

Brand Consideration Lift

50%

amongst people considering AU Small Finance Bank for Finance needs

Brand Ambassador

Almost 50% of audience associated Kiara Advani as AU

Brand Ambassador

(Q3’FY24)

10 Cr+

People reached on TV, Print, Radio, Cinema & Digital Media

54%

Increase in Organic Search Volume on Google (indicates the increase in brand consideration)

Fostering Sustainable Framework

ESG Update

Environment

Environment is a recognized stakeholder for AU

Social

Addressing the Occupational, Residential, and Social vulnerabilities

Governance

Compliant on all governance parameters

Deposits 6,000+ Green FD Accounts - 150+ Crore Green FD raised Lending - 45+ Crores deployed in Green Asset lending - Solar Projects and Electric Vehicles getting funded with Greater Traction in retail segment

Participated project)

in CDP (Carbon disclosure

- COE for Skills Development

Skill development is the flagship project of the Bank. Till Q3’FY24, 17,900 youth were trained and 14,020 linked to employment across 16 centers and 78% successfully linked to employment

AU’s Rural Sports Initiative Project

aimed

holistic development of rural children, is live across 64 locations with 8,100+ children in age group of 8-16 years getting trained by certified coaches. 2 youth have been selected for National U-17 football team

- Women Entrepreneurship

AU supports women entrepreneurs for livelihood generation and capacity building by providing support and access. Till date, 2,300+ women are engaged and 724 are nurtured

Independent and diversified Board - 80% independent directors, 20% women directors

Mr. H.R. Khan (Ex - Deputy Governor, RBI) will take over as Non-executive chairman of the bank w.e.f. 30th Jan’23

Board committee on Sustainability driving the sustainability agenda

Continued platforms like DJSI

improvement

rating

Financial & digital inclusion

Universal Access to Financial Services

➢ 32% of our total touchpoints/branches – 330 are in unbanked rural centres (Tier-VI, population less than 5,000 & Tier-V, population less than 10,000)

➢ Present in 50 Special Focus Districts* with 90 touchpoints covering 23 Aspirational districts, 13 Left Wing Extremist Affected Districts, 13 Hill States

Districts and 1 North Eastern Region District.

Providing Basic Bouquet of Financial Services

PM Jan Dhan Yojana 21% BSBD ac

counts are Aadhar seeded, received Direct Benefit Transfer of 176

Particulars

BSBDA

MUDRA

PMJJBY

61,400+

PMSBY

99,500+

APY

86,354+

Count

4,22,200+

2,62,500+

Received Direct Benefit Transfer of ₹6.6+ Cr in Q3’FY24 in Aadhaar seeded accounts.

PM SVANidhi

➢ Supported 1,170+ street vendors

IGUCCY

➢ Supported 680+ micro

entrepreneurs

Financial and Digital Literacy

➢ Organised 10,000+ Financial Literacy Camps milestone till Q3 FY24, educating 15 lakh+ citizens and including 3 lakh+ individuals in the formal

financial system over the last 6 years.

*The list is prepared taking cognizance of special focus districts classified by NABARD, MYMSME, NFDB & NITI AAYOG.

Data as on 31st Dec‘23 unless otherwise stated

Awards and recognition - Q3’FY24

Best Small Finance Bank

Great Place To Work

Mint BFSI Awards - 2023

Jan’24 - Jan’25 (Fourth Consecutive Year)

Company With Great Managers - 2023

(2022, 2023)

Brand of the Year

Best Branded Campaign : TV

e4m Pitch Top 50 Brands 2023

Afaqs brand Storyz Awards -2023

BSE StAR MF (BSE MF Platform) recognised us as Top contributors in Banking Industry

About us

About AU

Liabilities Update

Other Key Updates

AU’s Journey

Started operations from Jaipur as Vehicle Financing

Expanded operations to Maharashtra

1996

2003

Appointed channel partner of HDFC Bank

2007

Equity investment from IFC

Started Housing Finance Co in 2011

2012

2008

Received SFB License from RBI

Launched Digital Bank, Video Banking Credit Cards

2017

Equity Capital Raise of ₹625 Cr

2022

Received AD- I License from RBI

Announced merger with Fincare SFB

2010

Motilal Oswal as first private equity partner.

Started SBL (now MBL) lending

Warbug Pincus as private equity investor

2015

2021

Commenced operations as SFB

Recognized as Scheduled Commercial Bank

2023

Industry First Credit Card initiative -LIT & Swipe Up

Equity capital raise of ₹2,000 Cr

AU’s Journey

Touchpoints

15%

474

558

647

744

11,151

12,623

17,112

1,027

1,049

919

Employees

18%

22,484

27,817

28,320

28,904

Customers (in Lacs)

38%

All figures till 9M’FY24

46.8

38.6

17.2

20.2

27.5

12.3

7.5

FY18

FY19

FY20

FY21

FY22

FY23

Dec'23

FY18

FY19

FY20

FY21

FY22

FY23

Dec'23

FY18

FY19

FY20

FY21

FY22

FY23

Dec'23

₹ in Crores

19,422

26,164

7,923

Deposit

50%

52,585

35,979

80,120

69,365

Gross Advance*

Balance Sheet Asset

32%

35,356

46,789

67,624

59,158

22,994

27,233

13,413

32,623

42,143

18,833

34%

1,01,176

90,216

69,078

51,591

FY18

FY19

FY20

FY21

FY22

FY23

Dec'23

FY18

FY19

FY20

FY21

FY22

FY23

Dec'23

FY18

FY19

FY20

FY21

FY22

FY23

Dec'23

*CAGR of Advances including off book is 31%

AU’s Journey

₹ in Crores

Net Interest Income

28%

4,425

3,820

3,234

2,365

1,909

1,343

940

PAT

27%

1,428

1,130

1,164

All figures till 9M’FY24

Shareholders Fund

34%

10,977

12,167

7,514

6,275

292

382

596

600 #

2,281

3,163

4,377

FY18

FY19

FY20

FY21

FY22

FY23 9M'FY24

FY18

FY19

FY20

FY21

FY22

FY23

9M'FY24

FY18

FY19

FY20

FY21

FY22

FY23

Dec'23

RoA

RoE

BVPS in ₹

Weighted Average - 1.7%

Weighted Average – 14.4%

2.0%

1.5%

1.6%

1.3%#

1.9%

1.8%

1.6%

13.7%

14.0%

15.8%

16.4%

15.4%

12.0%#

13.4%

30%

100

119

165

182

FY18

FY19

FY20

FY21

FY22

FY23 9M'FY24

FY18

FY19

FY20

FY21

FY22

FY23

Dec'23

FY18

FY19

FY20

FY21

FY22

FY23

Dec'23

#Dip is due to Covid-19; *figures are excluding profit from stake sale in Aavas

Asset quality for 6.5 years

Particulars

Gross Advances

Gross NPA

NPA Provision (incl. floating provision)

Net NPA

Gross NPA %

Net NPA %

Provision Coverage Ratio %

FY18

13,413

270

100

169

2.01%

1.27%

37%

FY19

22,994

470

176

295

2.04%

1.29%

37%

FY20

27,233

458

240

217

1.68%

0.81%

53%

FY21

FY22

35,356

46,789

1,503

747

755

4.25%

2.18%

50%

924

694

231

1.98%

0.50%

77%

❑ GNPA% has ranged between 1.66% -2.04% with the exception of COVID impact in Mar’21.

FY23

59,158

981

736

245

1.66%

0.42%

78%

₹ in Crores

Q3’FY24

67,624

1,340

884

456

1.98%

0.68%

72%

Impact stories – click to listen

AU’s customer testimonies

Learnings from last 6.5 years

Madness to Method

Borrower to Customer

KYC to UYC

Quantity to Quality

Unified Market to Differentiated approach

for Core and Urban

Transactional approach to Generational

orientation

Consistently challenging the status quo to improve customer and employee experience

Building a sustainable forever Bank

❑ Navigated

successfully multiple headwinds

years despite

❑ Focus on our 7 Strategic deliver

Priorities consistent outcomes

❑ Committed to our Inclusive

Business Model

❑ Built retail and granular

deposit franchise

❑ Diversified

Products/services remained well-governed

and

❑ Complete platform build- out – Digital, TBG, SMF, Wealth and X-sell

❑ Scale deposits, accelerate customer acquisition and optimise efficiency

❑ Built a Forever bank with sustainability at its core

❑ Agile

Bank

keeping

Customer first

❑ Brand strength to deliver

❑ Benefit from scale and size

7 strategic priorities

Scale retail focused, sustainable, low-cost deposit franchise

Drive Sustainable growth from existing asset products & segments

Build a Tech- led ecosystem

Strong risk management & controls

Develop a highly empowered and capable team

Create strong brand identity

Strengthen our ESG commitments

Shareholding pattern

KMP, Director & their relatives (Excluding Independent Director)

Others

2.1%

3.1%

Individuals

7.1%

Promoter & Promoter Group

25.5%

Foreign holding Domestic holding

41% 59%

Mutual Fund

11.7%

Foreign Holding

41.4%

As on 31st Dec’23

AIF 5.6%

Insurance

3.5%

Board of Directors

Abbreviations

BSBDA

Basic Savings Bank Deposit A/C

OPEX

Operating Expenses

CASA

Current Account Deposits and Savings Account Deposit

CoF

Cost of Fund

P&L

PAT

Profit & Loss Statement

Profit After Tax

CRAR

Capital Adequacy Ratio

PMJJBY

Pradhan Mantri Jeevan Jyoti Bima Yojana

DII

Domestic Institutional Investors

PMSBY

Pradhan Mantri Suraksha Bima Yojana

DPD

Days Past Due

QoQ

Quarter on Quarter

LCR

Liquidity Coverage Ratio

MUDRA Micro Units Development & Refinance Agency Ltd.

NBFC

Non-Banking Finance Company

NII

NPA

NTC

Net Interest Income

Non-Performing Assets

New to Credit

REG

RoA

RoE

YoY

YTD

Real Estate Group

Return on Average Assets

Return on Average Shareholder's Fund

Term Deposit

Year on Year

Year to Date

EWS

Early Warning Signal

SMA

Special Mention Account

LDR/ CD Loan to Deposit / Credit to Deposit ratio

Definitions

Market share calculated as per the data reported by RBI for Scheduled Commercial Banks

Market Share

Core Markets

Core Markets are smaller centres in rural/semi-urban which typically have a local economy built around agriculture and small businesses, and which have traditionally been our traditional markets for lending.

Urban Markets

Larger centres which have more advanced infrastructure such as airports, malls etc. are defined as Urban Markets

CASA Ratio

Calculation for CASA Ratio is (Current account + Savings account) /Total Deposits including CDs

Yield on Advances

Calculated as the weighted average yield on Gross Advances at the end of months within the respective period; from Q3’FY23, it is changed on a daily basis

NIM

Net Interest Margin is calculated on the Interest earning Assets including off book assets on a daily basis

g. Net NPA

Net NPA Calculation does not include contingency provisions that the bank is carrying

Retail TD

Retail TD refers to all TD having balance less than ₹2 Cr ; Bulk TD refers to all balances of ₹2 Cr & above

Gross Advances

Gross Advances includes interest arrears on standard advances

Tech savvy customers

Tech savvy customers are those who are digital in their lifestyle but may not necessarily be active on AU SFB’s digital channels

k. Digital Products

Video Banking SA & CA, Credit Cards, UPI QR, Personal Loans and AU0101

Transacting Customers

Customer initiated transactions on total Savings Accounts base, excluding dormant accounts

m. PCR

Provision Coverage Ratio (PCR) is including Technical Write off

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 Bank. No information contained herein has been independently verified by anyone else. This presentation may not be copied, distributed, redistributed or disseminated, directly or indirectly, in any manner. This presentation does not constitute an 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 or be relied upon in connection with any investment decision or any contract or 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 or in reliance upon the information contained herein. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the 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 risks, 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 cautioned 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 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 or any other applicable law. Figures for the previous period / year have been regrouped wherever necessary to conform 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 on Management estimates.

THANK YOU

For Investor queries contact (details in QR Code): Prince Tiwari

Email: investorrelations@aubank.in

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