UTKARSHBNKNSE27 January 2024

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

Utkarsh Small Finance Bank Limited

SE/2023-24/100

January 27, 2024

The BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Fort Mumbai – 400001

National Stock Exchange of India Limited 5th Floor, Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra East, Mumbai – 400 051

Scrip Code: 543942, 958095, 958226, 959644

NSE symbol: UTKARSHBNK

Dear Sir/Madam,

Sub: Investor Presentation

Further to our letter dated January 19, 2024 intimating about Earnings Conference Call, please find attached Investor presentation which will be referred during the earnings call with analysts and investors for the financial results of the Bank for the quarter and nine months ended December 31, 2023.

Thanking You

For Utkarsh Small Finance Bank Limited

Muthiah Ganapathy Company Secretary & Compliance Officer

Key Highlights Q3, FY24

Credit growth 31% YoY; deposits growth 18% YoY

Healthy growth in micro-banking loan portfolio – Micro-banking portfolio crossed ₹10,000 crore mark

Increasing share of secured loans in overall loan portfolio – share of secured loans increased to 35% of Gross Loan Portfolio as on Dec-23 vs. 28% a year ago

Overall deposits book crossed ₹15,000 crore mark; Continued healthy traction in Retail Term Deposits Acquisition – Retail Term Deposits grew 46% YoY

Improvement in Net Interest Margin (NIMs) & cost efficiency – NIMs at 9.7% for Q3, FY24 despite hardened interest rate environment and increasing low-yielding secured loan portfolio; cost-income ratio at ~55% for Q3, FY24

Profit after tax of ₹116 crore in Q3-FY24, YoY growth 24%; 9M FY24 profit after tax increased by 25% YoY to ₹338 crore; healthy RoA at 2.3% and RoE at 18.5% in 9M FY24

Net NPAs at 0.19% as on Dec-23; Carrying floating provision of ₹134 crore as on Dec-23; overall provision cover (including floating provision) at 94%

Key Highlights Q3’FY24

NETWORK

ASSETS

LIABILITIES

FINANCIAL PERFORMANCE

CAPITAL STRUCTURE

ASSET QUALITY

880 vs. [794] Banking Outlets

₹16,407 cr. vs. [₹12,543 cr.] Gross Loan Portfolio

₹15,111 cr. vs. [₹12,847 cr.] Deposits

₹116 cr. vs. [₹94 cr.] Profit After Tax

₹2,808 cr. vs. [₹1,863 cr.] Capital + Reserves

3.0% vs. [3.6%] Gross NPAs

26 States & UTs

16,316 vs. [14,747] Employees

30.8% Gross Loan Portfolio Growth YoY

17.6% / 45.8% Deposits / RTD Growth YoY

₹256 cr. vs. [₹210 cr.] Pre-provisioning Operating Profit

23.2% vs. [20.4%] CRAR

0.19% vs. [0.72%] Net NPA

35% vs. [28%] Share of Secured Loans in Gross Loan Portfolio

68% vs. [60%] Share of CASA + Retail Term Deposits

54.7% vs. [54.9%] Cost to Income

2.3% / 16.9% vs. [2.2% / 20.5%] RoAA / RoAE

93.8% vs. [80.5%] Provision Coverage Ratio (incl. floating provision)

Figures in [ ] represent Q3’FY23

Journey and Franchise

Portfolio Build Up

Deposits Build Up

Financial Performance

Technology, ESG & CSR

Journey and Franchise

Committed journey of ~14 years from Microfinance to Small Finance Bank to Listed Company

Significant presence in rural & semi urban locations and under penetrated States of the Country

Differentiated branch network to ensure relevant product offerings for customers & ensuring cost efficiency of operations

Utkarsh Journey

Highest ever annual profit of > ₹400 crore in FY23 Bank’s Capital + Reserves crossed ₹2,000 crore

FY24

Utkarsh Small Finance Bank Ltd. was incorporated as a wholly- owned subsidiary of UCL on April 30,2016 Bank commenced SFB operations from January 23, 2017

FY17

Conversion of microfinance branches to Banking Outlet

FY19

Launched digital on- boarding of accounts Raised equity capital of ₹240 crore in Mar-21

FY21

FY18

Bank received 'Scheduled Commercial Bank' status in Oct-Nov-17

FY20

Bank’s Capital + Reserves crossed ₹1,000 crore; Profit of ₹187 crore in FY20

Utkarsh CoreInvest Limited (UCL) commenced operations as NBFC in Sep-09

FY10

FY16

UCL received RBI In- Principle Approval to establish an SFB on October 7, 2015

FY23

In Jul-23 Bank launched IPO to raise equity capital of ₹500 crore; IPO oversubscribed >100 X; Bank’s gross loan portfolio and deposits, both, crossed milestone of ₹15,000 crore

FY22

Bank’s loan portfolio and deposits, both, crossed milestone of ₹10,000 crore Raised equity capital of ₹150 crore in Q2, FY23

Business Overview

Focus on Financial inclusion, offer a range of financial products and services that address the specific requirements of customer segments

Asset products

Liability Products

Other Products & Services

Microbanking

61%

Other Retail Loans

28%

Joint Liability Group Loans

Individual Loans

MSME Loans (Retail Assets)

Housing Loans

Wholesale Lending (FI & SME Segment)

11%

Other Retail Loans

CV/CE Loans

ODFD

Current Account

Savings Account

Term and Recurring Deposit Accounts

Insurance Products

Mutual Funds

Locker Facilities

Internet banking1

Mobile Banking1

Inward Remittances

Integrated Bill Payment system

Distribution & facilitation of accounts under certain Govt. Schemes

ATM-cum - debit cards1

UPI Payment Solutions

4.16 million Total Customers2 Dec-23

7.9% Cost of Funds Q3, FY24

19.1% Yield on advances Q3, FY24

Portfolio split % (Dec’23)

1 Other Distribution channels ; 2 Both deposit and credit

Diversified Distribution Network

Extensive physical network of Banking Outlets (Dec’23)

Chandigarh: 3

>50 Outlets

<50 Outlets

No Outlets

Delhi: 31

178

214

26 States & UT 26 States & UT 26 States & UT

880 Banking Outlets 871 Banking Outlets

Puducherry: 1

313 ATMs and 319 ATMs and 568 micro ATMs 562 micro ATMs

Potential for Retail Assets within existing Branches (Dec’23)

STATES

Bihar Uttar Pradesh Jharkhand Maharashtra NCT Of Delhi Other States TOTAL

Total Banking Outlets 214 178 79 73 31 305 880

MB Outlets

GB Outlets

MSME Locations

HL Locations

Wheels Locations

196 133 68 37 4 167 605

18 45 11 36 27 138 275*

9 17 3 19 3 31 82

3 12 1 11 1 21 49

4 21 2 0 1 12 40

During 9M’FY24, opened 50 branches (26 MB & 24 GB branches)

Banking Outlets

830

851

794

871

880

Opened 86 branches in last 1 year

Map not to scale

1/27/2024

241 URCs 239 URCs

Dec'22

Mar'23

Jun'23

Sep'23

Dec'23

*Includes 10 Combo Branches

Differentiated Branch Network

794

830

851

871

880*

564

230

579

251

594

257

602

269

605

275

Dec'22

Mar'23

Jun'23

Sep'23

Dec'23

GB Branches

MB Branches

▪ Differentiated branch network to ensure the relevant product offerings customers as well as ensuring cost efficiency of operations

▪ All branches CBS enabled; customers the 880

from any of

transact

can branches

* Includes 10 Combo Branches

o Liability focused branches; also active on other retail lending products o Primarily in top-100 districts of the country for deposits, mostly in metropolitan and urban

location

o Look and feel similar to branch of other commercial banks o Mostly equipped with onsite ATM

o Micro banking focused branches o Primarily in rural and semi urban locations o Mostly equipped with micro-ATM, lower operating expenses to ensure cost efficient delivery of

doorstep services in hinterlands

o Cost efficient model of delivering services in rural and semi urban locations and to the bottom of

the pyramid customers

Strategies

Continue diversifying asset portfolio

❑ Leverage wide base of existing customers in the unserved and underserved segments

▪ Extend products offering from JLG loans to individual loans, affordable housing loans and other new products

❑ Focus on offering working capital and term loans to MSMEs, small and medium sized corporates, institutional customers

❑ Cross-sell to new clients on-boarded through existing network in urban and metro locations

Grow retail deposits mix across geographies and customer segments to build stable funding source

❑ Enter newer geographies including top 100 cities in terms of overall deposits, to grow the bank deposit base

❑ Strengthen liability franchise by continuing focus on CASA and retail deposit base

❑ Enhance digital offering at various touch points of customer life cycle

Increase share of fee income and capitalize on cross-selling opportunities

❑ Generate fee income from own products and cross-selling third-party products

❑ Engaged with various partners in offering these products and intend to continue to develop newer partnerships

❑ Provide various payment solutions through mobile and internet banking to increase the fee income

Increasing use of technology and digital offerings for last mile delivery to customers

❑ Continue to invest in technology as a means of improving customer experience

❑ Increase focus on applying the data gathered over the years by creating customized analytical decision models to

enhance underwriting and collection procedures

Portfolio Build-up

Loan portfolio grew 31% YoY

Rural & semi urban franchise, deep rooted understanding of our core geographies, proven track record - key strength of our micro-banking lending

Increasing share of secured lending with build-up of MSME, Housing & CV / CE loan book

Loan Portfolio Build-up

Product

Micro-banking Loans

Other Retail Loans

Wholesale Lending (Excl BBG)

CAGR% (FY20-9M FY24)

15%

81%

46%

13,957

14,394

10,631

1,547

8,416

926

3,195

1,617

3,718

503

1,702

1,013

6,899

8,002

9,216

9,059

6,661

310

495

5,857

16,407

1,760

4,593

14,892

1,672

3,928

10,054

9,292

Mar'20 Mar'21 Mar'22 Mar'23

Jun'23

Sep'23

Dec'23

Microbanking Loans

Other Retail Loans*

Wholesale Lending

Loan Book (Mar-20)

Retail Loans (MSME) 4%

Housing Loans 1%

Others* 2%

Wholesale Lending 5%

Secured Loans share increased to 35%

Loan Book (Dec-23)

Housing Loans 4%

CE and CV 5%

Others* 6%

Microbanking Loans 88%

Retail Loans (MSME) 13%

Wholesale Lending 11%

Microbanking Loans 61%

* Includes MSME, Housing, CE & CV, BC, Gold, OD Against FD

* Others includes OD Against FD, Gold loans, BC

Micro Banking Lending

All Amounts in ₹ Crores

Portfolio Outstanding

Demographic Break up of MB Outlets

8,701

9,216

9,059

9,292

10,054

JLG: 94% MBIL: 6%

URBAN 11%

METROPOLITAN 3%

SEMI URBAN 48%

RURAL 38%

Geographical Split of MB Portfolio

Dec'22

Mar'23

Jun'23

Sep'23

Dec'23

o Rural and semi-urban presence – 86% MB branches in rural

and semi urban locations

o Geography selection key to our strategy in building micro- banking book – sticking to our core geographies with extensive understanding of our borrower profile and local issues

o Large franchise with customer base of >28 lakhs o Opened saving accounts

for ~50% of micro-banking

customers, build customer connect stronger

Maharashtra 4%

Jharkhand 8%

Uttar Pradesh 29%

Madhya Pradesh 4%

Odisha 6%

86% Branches in Rural & Semi- urban areas

Presence across 12 States / UTs

Other States 7%

Bihar 42%

Micro Banking Lending (Contd.)

Micro Banking Disbursements

2,619

2,304

2,366

1,897

3,020

All Amounts in ₹ Crores

MBIL Product Portfolio Outstanding

553

470

387

332

252

Q3,FY23

Q4,FY23

Q1,FY24

Q2,FY24

Q3,FY24

Dec'22

Mar'23

Jun'23

Sep'23

Dec'23

o Micro Banking Individual Loan (MBIL) scaling up on track with loan book of ₹553 crore; asset quality good with Gross NPAs of ~0.5% as on Dec-23

o Digital collections through customized UPI QR code / BBPS - Digital Collections improving – ~10% of our customers have paid one or more installment through digital mode in Q3, FY24

o Product Innovation / Cross Sell to remain our focus

Demographic Break up of Portfolio

URBAN 12%

METROPOLITAN 3%

SEMI URBAN 46%

RURAL 39%

Micro Banking – Asset Quality

Collection Efficiency (excl. Pre-Payments)

97%

96%

5.9%

6.1%

6.2%

Q1'FY24

Q2'FY24

Q3'FY24

0.9%

0.8%

SMA

0.7%

0.5%

0.9%

0.8%

0.7%

4.0%

0.7%

0.5%

0.8%

3.6%

3.8%

0.8%

0.7%

0.9%

0.7%

0.8%

Jun'23

Sep'23

Dec'23

SMA 0

SMA 1

SMA 2

NPA

SMA 0 %

SMA 1 %

SMA 2 %

Jun'23

Sep'23

Dec'23

Carrying floating provision of ₹120 crore for Micro-Banking

Other Retail Lending

MSME (Retail Assets)

Housing Loans

CE & CV Loans

MSME (Retail Assets) Lending

All Amounts in ₹ Crores

Portfolio Outstanding

2,183

1,977

1,724

1,534

1,225

Dec'22

Mar'23

Jun'23

Sep'23

Dec'23

Disbursements (14% YoY Growth)

10.9%

400

11.1%

279

11.5%

11.6%

11.8%

356

317

270

Q3,FY23

Q4,FY23

Q1,FY24

Q2,FY24

Q3,FY24

Disbursements

Average Disbursement Yield

450

400

350

300

250

200

150

100

Secured Business Loans (LAP)

Unsecured Business Loan

Micro LAP / Overdraft

o Significant presence in our core geography

o Offering MSME product (small business segment) through

82 branches, significant headroom to expand within

existing branches

o Largely secured lending (~96%)

o Average ticket size of loan book ~₹20-30 lakh

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Housing Loans

Portfolio Outstanding

519

461

557

590

All Amounts in ₹ Crores

627

Retail Housing Loans

Affordable Housing

Dec'22

Mar'23

Jun'23

Sep'23

Dec'23

significant headroom to expand within existing

Disbursements (8% YoY Growth)

branches

o Significant presence in our core geography

o Currently offering HL product from 49 locations,

9.7%

9.8%

10.1%

10.4%

10.7%

Q3,FY23

Q4,FY23

Q1,FY24

Q2,FY24

Q3,FY24

Disbursements

Average Disbursement Yield

o Housing loans up to ₹35 lakh account for ~70% of

housing loan portfolio

o >3,000 customers – Average ticket size of loan

book ~₹20-25 lakh

o Availed NHB refinance at low rate of interest to

improve competitiveness

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

CE & CV Loans

Portfolio Outstanding

All Amounts in ₹ Crores

637

560

429

839

741

CV (New)

CE (New)

CV & CE (Used)

•89% of total portfolio

•7% of total portfolio

•4% of total portfolio

Dec'22

Mar'23

Jun'23

Sep'23

Dec'23

o Lending primarily to small fleet operator segment

Disbursements (30% YoY Growth)

o Currently offering CE & CV product through 40 branches,

180

160

140

120

100

11.5%

11.6%

12.0%

11.9%

12.1%

159

145

148

114

111

Q3,FY23

Q4,FY23

Q1,FY24

Q2,FY24

Q3,FY24

Disbursements

Average Disbursement Yield

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

significant headroom to expand within existing branches

o Currently operating primarily in our core geographies

o >2,500 customers - Average ticket size of loan book ~₹30-

35 lakh

Wholesale Lending

Portfolio Break up (Mar-20)

Portfolio Break up (Dec-23)

Business Banking Group 0%

Started Business Banking in FY21

Business Banking Group 28%

All Amounts in ₹ Crores

Portfolio - ₹1,760 crore (Dec-23)

Rating Wise WSL FI Portfolio Break up

Disbursement Yield – 10.9% (Q3 FY24)

AA Category 21%

BBB Category 30%

WSL FI Lending 100%

WSL FI Lending 72%

BBG Lending

WSL FI Lending

A Category 49%

o Small to medium size corporates (SME segment)

o >100 customers; Average ticket size – ~₹4 crore

o Primarily operating account through OD / DLOD product

o Entire book secured against collateral of immovable

properties with cover of >100%

o Nil NPAs

o 70% of book credit rated “A” category or higher by

external credit rating agencies

o 75 customers; Average ticket size of outstanding

loan ~₹15-20 crore

o Nil NPAs

Deposits Build-up

Deposits grew by 18% YoY; Retail Term Deposits grew 46% YoY

Expanded General Banking Franchise significantly over last 2 year

Targeting top-100 deposits districts of the country

Focus on building retail franchise, reduced bulk deposits & top-20 deposits concentration

Deposits Trend & Composition

Deposits Trend

Deposits (18% YoY Growth)

Growth led by RTDs

Customer Base (in mn.)

All Amounts in ₹ Crores

1.39

1.29

2.53 million Total Deposit Customers

1.06

1.14

1.18

1.25

0.86

0.94

17,000

16,000

15,000

14,000

13,000

12,000

11,000

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

95%

97%

101%

99%

12,847

13,710

13,967

13,965

15,111

110%

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

Dec'22

Mar'23

Jun'23

Sep'23

Dec'23

Mar'23

Jun'23

Sep'23

Dec'23

Total Deposits

CD Ratio

Demographic Profile of Deposits (Dec-23)

Geographically well diversified deposits mix

Only Depositors

Both Borrowers & Depositors

1.76 lakh CASA account opened in Q3 FY24, 95% through Digital on-boarding

Fintech tie-up for RTD acquisition yielding good result

URBAN 42%

SEMI URBAN 3%

RURAL 2%

Uttar Pradesh

Maharashtra

NCT of Delhi

Haryana

Uttarakhand

Jharkhand

18.3%

14.1%

12.3%

Branch Vintage

<1 year

1-2 year

2-3 year

>3 year

Total

GB Branches

130

275

7.8%

7.4%

5.4%

METROPOLITAN 53%

40% of the branches are <2-year vintage

Deposits Trend & Composition (Contd.)

Deposits Composition

21%

60%

21%

62%

19%

62%

20%

66%

20%

68%

CASA CASA

CASA + RTD CASA + RTD

40%

38%

34%

32%

39%

41%

42%

46%

48%

16%

18%

Institutional Term Deposits

Retail Term Deposits

SA BSBDA accounts

SA (excluding BSBDA)

Current Deposits

All Amounts in ₹ Crores

Decline in Concentration to Top 20 Depositors %

2,895

2,884

2,973

2,571

2,775

29%

21%

18%

Mar'22 Mar'23

Jun'23

Sep'23

Dec'23

Dec'22

Mar'23

Jun'23

Sep'23

Dec'23

Funding Mix (Mar-20)

Funding Mix (Dec-23)

RTD grew by 46% YoY to ₹7,228 crore vs. ₹4,957 crore (₹6,448 crore Sep-23)

Refinance 29%

Other Borrowings 5%

Refinance 8%

Other Borrowings 2%

Cost %

Q3 FY24

Term Deposits

CASA

8.5%

5.3%

Deposits 66%

Increasing reliance on Deposits

Deposits 90%

<1 Year Deposits (incl. CD) accounted for ~5% of Term Deposits

Long Term Credit Rating

A+ (Stable) CARE

A+ (Stable) ICRA

Rating for certificate of deposit programme

A1+ ICRA

Asset Quality Movement

All Amounts in ₹ Crores

Write off

151

Dec-23

Dec-22

Sep-23

PCR%

80.5%

88.3%

89.8%

94.6%

93.8%

448

432

431

404

464

Dec'22

Mar'23

Jun'23

Sep'23

Dec-23

Gross NPA %

Net NPA %

3.0%

0.2%

3.6%

0.7%

2.8%

0.2%

SMA 1 & 2

1.5%

1.4%

1.8%

206

197

267

1.9%

316

Gross NPAs

Net NPAs

Mar'23

Jun'23

Sep'23

Dec'23

NPA Movement

Opening GNPA

Additions during the period

Reductions during the period

Up-gradations & Recoveries

Write-offs

Closing GNPA

Q3 FY24 Q2 FY24 Q1 FY24

404

136

464

431

404

432

102

431

Provisions Break-up

Particulars

NPA Provision

Floating Provision

Provision for standard restructured

Standard Provision

Total Provisions

Dec-23 Sep-23

Jun-23

301

134

509

262

120

452

281

106

458

Financial Performance

Stable & consistent financial performance

Focus on cost efficiency resulting healthy cost income ratio

Profit after tax increased 24% YoY to ₹116 crore in Q3 FY24

Building floating provision to ensure resiliency

Enduring Profitability Metrics

Operating Profit & PAT – Quarterly Trend (₹ in crores)

Operating Profit & PAT Y-o-Y (₹ in crores)

210

208

221

238

256

630

134

107

114

116

271

715

338

Q3' FY23

Q4' FY23

Q1' FY24

Q2' FY24

Q3' FY24

9M' FY23

9M' FY24

Operating Profit (PPoP)

PAT

Operating Profit (PPoP)

PAT

19.2% / 7.0% / 9.8% 9M FY23

18.9% / 7.8% / 9.3% 9M FY24

2.3% / 21.0% 9M FY23

28.3%

2.3% / 18.5% 9M FY24

19.1%

18.8%

19.1%

20.5%

21.1%

18.2%

16.9%

9.7%

9.4%

9.2%

9.7%

7.0%

7.4%

7.6%

7.8%

7.9%

COF (incl. IBPC) reduces by ~10 bps to ~7.8% in Q3, FY24

2.2%

2.9%

2.3%

Q 3 ' F Y 2 3

Q 4 ' F Y 2 3

Q 1 ' F Y 2 4

Q 2 ' F Y 2 4

Q 3 ' F Y 2 4

Q3'FY23

Q4'FY23

Q1'FY24

Q2'FY24

Q3'FY24

Yield on Advances

Cost of Funds

Net Interest Margin

Return on Average Assets

Return on Average Capital + Reserves

1/27/2024

Enduring Profitability Metrics (Contd.)

3.1% 9M FY23

2.8%

2.4% 9M FY24

2.7%

2.1%

2.3%

1.1%

Credit Cost

Q3'FY23

Q4'FY23

Q1'FY24

Q2'FY24

Q3'FY24

Credit cost at 2.3% for Q3, FY24, excl. floating provision created of ₹14 crore

53.3% / 12.7% 9M FY23

56.0% / 12.3% 9M FY24

54.9%

56.5%

57.0%

56.5%

54.7%

11.1%

10.0%

12.8%

13.9%

10.3%

Q3'FY23

Q4'FY23

Q1'FY24

Q2'FY24

Q3'FY24

Cost to Income Ratio

Non-Interest income/Interest income

8.4% / 6.0% 9M FY23

8.3%

8.4%

8.2% / 6.2% 9M FY24

7.9%

5.3% 9M FY23

4.8% 9M FY24

4.9%

4.6%

4.7%

4.8%

5.1%

6.0%

5.9%

6.2%

6.1%

Q 3 ' F Y 2 3

Q 4 ' F Y 2 3

Q 1 ' F Y 2 4

Q 2 ' F Y 2 4

Q 3 ' F Y 2 4

Operating Profit as % of Avg. Total Assets

OPEX on Advances

OPEX on Total Assets

Q3'FY23

Q4'FY23

Q1'FY24

Q2'FY24

Q3'FY24

1/27/2024

Return on Equity during Covid Cycle

Covid Cycle RoE

Average: 15.1%

Additionally, built floating provision cushion during this period; ₹134 crore as on Dec-23

20.3%

22.8%

18.5%

RoE back to pre- covid levels on higher capital base

10.0%

4.1%

FY20

FY21

FY22

FY23

9M FY24

Break-up of other income

₹ 71 crore

₹ 105 crore

₹ 83 crore

25%

20%

23%

31%

26%

14%

37%

22%

24%

19%

18%

40%

Q3'FY23

Q2'FY24

Q3'FY24

Loan Processing Fee

PSLC Income

Recovery from written off accounts

General Banking & Other Income

1/27/2024

CRAR & Tier 1

All Amounts in ₹ Crores

Particulars

Dec-23

Dec-22

Sep-23

Risk Weighted Assets

Total Capital

Tier-I Capital

Tier-II Capital

CRAR

Tier-I CRAR

Tier-II CRAR

1/27/2024

11,720

2,717

2,519

198

9,517

1,940

1,701

239

10,906

2,707

2,513

194

23.18%

20.39%

24.82%

21.49%

17.88%

23.04%

1.69%

2.51%

1.78%

PAT of Q3, FY24 of ₹ 116 crore not included in CRAR

Profit & Loss: For the quarter & nine month ended December 31st, 2023

All Amounts in ₹ Crores

Particulars

INCOME

Total Interest Earned

Less : Interest Expense

Net Interest Income

Add : Other Income (Processing Fee on loans+ Transaction and other fee income + PSLC income)

Operating Income

EXPENDITURE

Operating Expenses

Personnel Cost

Other Operating Expenses

Operating Profit

Total provisions

PBT

Tax

PAT

1/27/2024

Q3’FY24 Q3’FY23

Y-o-Y

Q2’FY24

Q-o-Q

9M’FY24

9M’FY23

Y-o-Y

Limited Review

806

324

482

Audited

641

247

394

26%

31%

23%

756

315

442

Limited Review

2,283

937

Audited

1,814

694

1,346

1,119

26%

35%

20%

16%

105

(21)%

280

230

22%

565

465

22%

547

1,626

1,350

20%

309

180

129

256

104

152

116

255

146

109

210

122

21%

23%

18%

22%

19%

24%

25%

24%

309

177

132

238

154

114

(3)%

25%

(2)%

(10)%

911

527

384

715

264

451

113

338

720

411

308

630

268

362

271

27%

28%

24%

13%

(2)%

25%

24%

25%

Balance Sheet: As on December 31st, 2023

All Amounts in ₹ Crores

Particulars

December 31st, 2023

December 31st, 2022

Y-o-Y

September 30th, 2023

Q-o-Q

CAPITAL & LIABILITIES

Limited Review

Audited

Capital and Reserves

Deposits

Borrowings

Other Liabilities and Provisions

Total

ASSETS

Cash and balances with RBI

Balances with banks and money at call and short notice

Investments

Advances (Net of provisions)

Fixed Assets

Other Assets

Total

1/27/2024

2,808

15,111

1,768

1,188

20,874

914

987

3,231

14,986

305

451

1,863

12,847

2,345

1,024

18,079

51%

18%

(25)%

16%

15%

Audited

2,687

13,965

1,902

1,103

19,658

(7)%

524

74%

1,305

(30)%

2,127

(54)%

332

197%

2,521

12,254

290

363

20,874

18,079

28%

22%

24%

15%

3,204

14,080

300

436

19,658

Shareholding Pattern

Bank Shareholders as on December 31st, 2023

Top 10 Shareholders as on December 31st, 2023

Individuals & Others, 9.6%

Foreign Companies, NRIs, 8.6%

FPI, 0.7%

AIFs, 1.4%

Bodies Corporates, 0.6%

Insurance Companies, 3.4%

Mutual Funds, 6.5%

Utkarsh CoreInvest Limited

Mirae Asset (Mutual Funds)

Olympus ACF Pte. Ltd.

Bharti AXA Life Insurance Company Ltd.

Triodos Sicav II - Triodos Microfinance Fund

responsAbility Participations Mauritius

Aavishkaar Bharat Fund

Growth Catalyst Partners LLC

Aditya Birla Sun Life Trustee Private Limited

Triodos Custody B.V. Acting In Its Capacity as A C

Book Value Per Share

16.1

17.6

22.3

23.6

24.5

25.6

Promoter, 69.2%

1/27/2024

Mar'21

Mar'22

Mar'23

Jun'23

Sep'23

Dec'23

Diversified & Experienced Board

Board Members of the Bank

Parveen Kumar Gupta Part Time Non Executive Chairman & Independent Director

• Certified associate of the Indian Institute of Bankers • Previously associated with Bank of Baroda as their

senior advisor & State Bank of India as their Managing Director

Ajay Kumar Kapur Independent Director

• Currently engaged as an advisor to the United Nations

Industrial Development Organization

• Previously associated with Industrial Development Bank of India, India SME Technology Services Limited and SIDBI

Chandra Shekhar Thanvi Non-Executive Director (Nominee of SIDBI)

Kajal Ghose Independent Director

• Currently serving as the chief general manager at SIDBI • Certified associate of the Indian Institute of Bankers

Kalpana Prakash Pandey Independent Director

• Previously worked as the MD & CEO of CRIF High Mark

Credit Information Services

• Was also associated with IDBI Principal AMC, State

Bank of India and HDFC Bank Limited

Nagesh Dinkar Pinge Independent Director

• Qualified CA • Previously associated with Tata Motors Limited,

Reliance Retail Limited, ICICI Bank Limited and others

• Currently a member of the investment committee of New

Leaf Investment Advisors LLP

• Previously worked as the chief general manager at State

Bank of India, consultant with PayU Payments, stratosphere IT Services and Kovid Group Analytics India

Muralidharan Rajamani Non Executive Director

• BFSI experience of over 35 years across SBI, ICICI Bank,

L&T Financial Services and other Institutions.

• Board Member PGIM India

Govind Singh Managing Director & Chief Executive Officer

• Certified associate of the Indian Institute of Bankers • Previously associated with Utkarsh CoreInvest as MD & CEO,

ICICI Bank as assistant general manager, Surya Fincap Limited, UTI Bank Limited, Allahabad Bank, State Bank of Patiala and Bank Internasional Indonesia

1/27/2024

Leadership Complementing Bank’s Strengths

Senior Management Team

Govind Singh - Managing Director & Chief Executive Officer • Over 25 years of experience in the banking and financial services sector and in particular the microfinance industry • Previously associated with Utkarsh CoreInvest (Bank’s Promoter and

erstwhile Utkarsh Micro Finance Limited) as MD & CEO

Trilok Nath Shukla Head - Micro Banking

• Worked at Cashpor Micro Credit •

Also been a Wholetime director of Utkarsh CoreInvest

Umesh Arora Head-Assets-Retail & Wholesale Lending

• Experienced in the field of banking • Worked at Axis Bank, IDBI Bank &

Standard Chartered Bank

Sanjay Sharda Head - Consumer Banking • Experienced in the field of banking • Worked with HDFC Bank, Kotak Mahindra Bank, BNP Paribas, IndusInd, and Citibank

Sarjukumar Pravin Simaria Chief Financial Officer • Experienced in the field of financial

management

• Worked at Edelweiss, Fino Payments

Bank and HDFC AMC

Mohinder Pal Singh Head - Operations • Experienced in the field of branch

banking

• Worked with Axis Bank, Bank of Punjab & State Bank of Patiala

Hitain Sharma Chief Human Resource Officer

• Experienced in the field of human resources and industry relations • Worked at Aditya Birla Sun Life Insurance and Kotak Mahindra Bank as vice president - HR

Alok Pathak Chief Risk Officer

• Experienced in the field of risk

and treasury management

• Worked at Yes Bank as executive vice president - risk management

Rahul Dey Head - Internal Audit

•

Experience in banking and MFI sector

• Worked with Ujjivan Financial

Service and Spandana Spoorthy

Mukesh Singh Verma Chief Compliance Officer • Experienced in providing regulatory compliance services covering RBI regulations

• Worked with North East Small Finance

Bank and AU Small Finance Bank

Abhijeet Bhattacharjee Chief Information Officer • Experienced in the field of information

technology

• Worked with RBL as its head of digital channels, & UTI Bank, ABN AMRO, RBS

1/27/2024

Muthiah Ganapathy Company Secretary & Compliance Officer

• Responsible for managing the

secretarial affairs

• Worked at Aditya Birla Housing Finance

G.H. Vijay Raghava Head - Treasury • Experienced in the field of

Banking & Treasury

• Worked at Suryoday SFB, ICICI Bank, Bank of India

Rahul Sinha Head - Collections • Experienced in the field of

lending

• Worked at Bajaj Finance as it

business head - MSME lending

Tech, ESG & CSR

Technology Setup to support Physical Infrastructure and Digital Requirement

Integrating ESG Sensitivities into our operations & decision- making

Contributing to the well-being of the society

Technology Setup to support Physical Infrastructure and Digital Requirement

Supporting extensive branch network of 880 branches

Tab enabled feet-on-street for acquisition and collections

ISO 27001 Certification for IT operation

Micro ATM for Cash Withdrawal in Remote locations

Extensive Mobile and internet Banking for customer service

Robotic Process Automation for internal process automation

E-sign and Digital contract for customer KYC and documentation

Data Lake for regulatory reporting

Digi Onboarding and U-Insta service for Digital acquisition of liability products

First to launch ‘UPI Lite’ in Global Fintech Festival

End to end digitised personal loan program

Video KYC for Onboarding and Customer personal discussion.

Transformation Fueling Business Growth

T R A N S F O R M A T I O N

Redesigning business process of retail asset and liability for higher productivity

Invest on cloud platforms to improve agility and scalability

Automation and digitation of operational process and customer service

API led Integration platform for internal and external systems

Adapt Microservice Architecture for new enterprise platforms

New software application stack for existing and new business initiatives

Environment, Social & Governance

Environment

Social

Governance

Practice is aligned with the national E&S laws and regulations and relevant E&S Good International Industry Practices (GIIP).

Committed to give due consideration to environmental & social sensitivities in portfolio, integrating these into its business operations and decision-making process

• Exclusion List • Training and awareness • Energy Saving • Plantation • Solar light • Preserve water

quality and availability

• ESG Risk

Assessment

• Service to Bottom of pyramid

• Inclusive finance • Education Support

• Financial Literacy • Priority Sector

lending • Women

empowerment

• Income

Generation Loan

• Diversified Board • Board

independence

• Strong Corporate

Governance

• Risk

Management Committee

• Audit Committee • Customer Service

Committee

• Nomination and Remuneration Committee

1/27/2024

Awards & Accolades

Best Customer Experience Strategy by India Customer Excellence (CX) Summit & Awards 2023

MOST PREFERRED WORKPLACE 2023-24 (BFSI) by Marksmen Daily

1/27/2024

Best Customer Experience at 18th Annual Summit and Awards by ASSOCHAM

Awards & Accolades (Contd.)

RANKED 46 UNDER “THE NEXT 500 COMPANIES 2022” BY FORTUNE INDIA

RECOGNITION AS ONE OF THE ‘PROMISING BRANDS 2022’ BY ECONOMIC TIMES

1/27/2024

Recognised as one of the Most Trusted BFSI Brands by Teammarksmen Daily

Utkarsh Welfare Foundation: CSR Initiatives

FINANCIAL AWARENESS

HEALTH INITIATIVES

SKILL & ENTERPRISE DEVELOPMENT PROGRAM

VILLAGE DEVELOPMENT PROGRAM

OTHER PHILANTHROPIC ACTIVITIES

Lives Impacted 10,50,000+

Lives Impacted 12,98,000+

Lives Impacted 41,900+

Lives Impacted 13,000+

27-01-2024

Initiatives Blood Donation Camps, Support to Old Age Home & Orphanage, Natural Calamities Relief Initiatives, etc.

Utkarsh Welfare Foundation: CSR Initiatives (Contd.)

Financial Awareness

Polyclinic Camps

E-Clinics

Digital Smart Classes

Women Entrepreneurship

Blood Donation Camps

1/27/2024

Disclaimer

Utkarsh Small Finance Bank Limited (also referred to as ‘Bank’). By attending a meeting where this presentation is made, or by reading this presentation material, you agree to be bound by following limitations:

The information in this presentation has been prepared for use in presentations by Bank for information purposes only and does not constitute, or should be regarded as, or form part of any offer, invitation, inducement or advertisement to sell or issue, or any solicitation or any offer to purchase or subscribe for, any securities of the Company in any jurisdiction, including the United States and India, nor shall it, or the fact of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract or commitment to purchase or subscribe for any securities of the Company in any jurisdiction, including the United States and India. This presentation does not constitute a recommendation by the Bank or any other party to sell or buy any securities of the Bank. This presentation and its contents are not and should not be construed as a prospectus or an offer document, including as defined under the Companies Act, 2013, to the extent notified and in force or an offer document under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended.

The Bank may alter, modify, revise or otherwise change in any manner the contents of this presentation without any liability to modify any person of such change or changes. No representation warranty implied as to and reliance or warranty, express or implied, is made to, nor should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither Bank nor any of its affiliates, advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. Subsequent developments may affect the information contained in this presentation, which neither Bank nor its affiliates, advisors or representatives are under any obligation to update, revise or affirm.

This presentation contains certain supplemental measures of performance and liquidity that are not required by or presented in accordance with Indian GAAP and should not be considered as an alternative to profit, operating revenue or any other performance measures derived in accordance with Indian GAAP or an alternative to cash flow from operations as a measure of liquidity of the Bank. You must make your own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make independent analysis as you may consider necessary or appropriate for such purpose. Any opinions expressed in this presentation are subject to change without notice and past performance is not indicative of future results. By attending this presentation, you acknowledge that you will be solely responsible for your own assessment of the market position of the Bank and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Bank ’s business.

This presentation contains forward‐looking statements based on the currently held beliefs and assumptions of the management of the Bank , which are expressed in good faith and, in their opinion, reasonable. Forward‐looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Bank or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward‐looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding expansion plans and the benefits there from, fluctuations in our earnings, our ability to manage growth and implement strategies, competition in our business including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, our ability to win new contracts, changes in technology, availability of financing, our ability to successfully complete and integrate our expansion plans, liabilities, political instability and general economic conditions affecting our industry. Unless otherwise indicated, the information contained herein is preliminary and indicative and is based on management information, current plans and estimates. Industry and market‐related information is obtained or derived from industry publications and other sources and has not been verified by us. Given these risks, uncertainties and other factors, recipients of this document 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.

1/27/2024

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