UJJIVANSFB

USFB/CS/SE/2023-24/100 Date: January 24, 2024 To, National Stock Exchange of India Limited BSE Limited Listing Department, Listing Compliance, Exchange Plaza, C -1, Block G, Bandra Kurla P.J. Tower, Complex, Bandra (E), Dalal Street, Fort, Mumbai-400 051 Mumbai-400 001 Symbol: UJJIVANSFB Scrip Code: 542904 Dear Sir/Madam, Sub: Press Release and Investor Presentation for the quarter and nine months ended December 31, 2023 Further to our intimation carrying reference number USFB/CS/SE/2023-24/99 dated January 24, 2024 please find enclosed herewith, a copy of the press release and investor presentation on the business and financial performance of the Bank for the quarter and nine months ended December 31, 2023. This intimation shall also be available on the Bank’s website at www.ujjivansfb.in. We request you to take note of the above. Thanking You, Yours faithfully, For UJJIVAN SMALL FINANCE BANK LIMITED Sanjeev Barnwal Company Secretary & Head of Regulatory Framework Encl: As mentioned above Press Release Healthy growth in secured assets, CASA; leading to stronger franchise Disbursement up 17%/ 19% YoY for Q3FY24/9MFY24; Gross loan book up 27% YoY; Secured book at 28.3% as of Dec’23 vs 27.5% as of Sep’23; Asset quality continues to be healthy with GNPA/NNPA at 2.1%/0.16% & PAR at 3.6%; Deposits at ₹29,669 crore up 28% YoY; CASA up 24% YoY; CASA ratio at 25.5%; RoA /RoE at 3.1% /24.2% for Q3FY24 Bengaluru, Wednesday 24 January, 2024: Ujjivan Small Finance Bank ltd. [BSE: 542904; NSE: UJJIVANSFB], today announced its financial performance for the nine month and quarter ended December 31, 2023 Summary of Ujjivan Small Finance Bank Business Performance – Q3FY24 and 9MFY24 ❖ Assets • Disbursements were at ₹ 5,675 crore/ ₹ 16,708 crore in Q3FY24/9MFY24 up 17%/19% YoY • Affordable Housing$ disbursed ₹ 595 crore/ ₹ 1,554 crore in Q3FY24/9MFY24 up 73%/63% YoY • Gross loan book at ₹27,743* crore up 27%/4% YoY/QoQ • Secured book at 28.3% as of Dec’23 vs 27.5% as of Sep’23 ❖ Collection and Asset Quality • Continued traction on Collections with ~99% efficiency in Dec’23; NDA collection consistently at ~100% • Portfolio at risk* at 3.6% as of Dec’23; GNPA* declined to 2.1% as of Dec’23 vs 2.2% as of Sep’23; NNPA* continues to be negligible at 0.16% as on Dec’23 • Q3FY24 write-off at ₹ 93 crore; Provision coverage ratio as on Dec’23 is 92%# ❖ Deposits • Deposits at ₹ 29,669 crore as of Dec’23 up by 28%/2% YoY/QoQ • CASA at ₹ 7,556 crore up 24%/8% YoY/QoQ; CASA ratio at 25.5% as of Dec’23 vs 24.1% as of Sep’23 • Retail TD^ grew 40%/9% YoY/QoQ ❖ Financials • Q3FY24 NII of ₹ 860 crores up 23% YoY; NIM at 8.8% for Q3FY24 vs 8.8% for Q2FY24 • Cost to Income ratio at 56% in Q3FY24 vs 53% for Q3FY23 • Q3FY24 PPoP at ₹ 457 crore up 18% YoY; PAT of ₹ 300 crore up 2% YoY ❖ Capital and Liquidity • Capital adequacy ratio at 24.37% with Tier-1 capital at 21.97% • Excess system liquidity further moderated during the quarter • Provisional Daily LCR at 137% as on 31st Dec’23 vs 158% as on 30th Sep’23 $ Including Micro mortgages * Without adjusting IBPC & Securitization of ₹ 1,596/ ₹ 1,685/ ₹ 1,619 crores as on Dec 2023/ Sep 2023/ Dec 2022 ^ Retail TDs are TDs less than ₹ 2 crores # Floating provision of ₹ 250 Cr continues to be on books & can be utilized for making specific provisions in future during extraordinary circumstances, with prior appr oval from the RBI ₹ 30 Cr was moved to Tier II capital in Jun’22 while ₹ 60 Cr, ₹ 10 Cr and ₹ 30 Cr were moved to other provision in Sep’22, Dec’22 and Mar’23 respectively Mr. Ittira Davis, MD & CEO, Ujjivan Small Finance Bank said, “Q3FY24 was yet another good quarter with healthy disbursements and high deposit accretion supported by strong CASA growth. Focus towards improving our secured book continued, increasing to 28.3% for the quarter vs 27.5% in the last quarter. During the quarter disbursements stood at ₹ 5,675 crore. Affordable Housing (including Micro-Mortgages) continues to grow with strong underlying demand and improving business productivity quarter on quarter; disbursed ₹ 595 crore for the quarter up 73% YoY. Further as we had stated earlier that we are moving to a hub & spoke model for our Housing & MSME business to enable quicker business decisions. We are witnessing significant reduction in TAT and increased business productivity. Reaping on the benefits of such operational efficiencies we currently have a total of 13 active hubs as on Dec’23. Focussed to diversify our book and enhance the product portfolio offered by the Bank we continue to develop on the other high yielding business segments like Gold loans and Two wheeler loans. These are currently very small but are expected to grow fast and add to secured book growth in coming quarters. Additionally, we have partnered with few Fintechs which we believe will provide us synergistic benefits going ahead and improve our product offerings. During the quarter we on-boarded two new Fintechs and started disbursements under the MSME business. On the deposit front, we have strategically further reduced our reliance on bulk deposits and have been successfully growing retail deposits. Initiatives such as nation-wide brand campaign and launch of value-add liability products has started to contribute meaningfully. This resulted in CASA book growing by 8% QoQ, sourcing more than ₹ 500 crore of CASA during the quarter despite stiff market competition. CASA ratio also improved to 25.5% vs 24.1% last quarter. In addition to this we have also started to offer our SA & TD products through alternate Digital channels. This will further add granularity to our liability book. Our focus on reducing excess liquidity in the system continued, reducing our daily LCR to 137% as on end of Dec’23. This aided in easing of pressure from the margins. We reported a PPoP of ₹ 457 crore supported by our NII growing by 23% YoY and 4% QoQ. Credit cost continues to stabilise and will continue to move towards normal levels as we progress. PAT for the quarter was ₹ 300 crore. Ujjivan’s strong business & financial performance over last 8 consecutive quarters continues showcasing healthy RoA /RoE of 3.1% /24.2% respectively for Q3FY24 and remains among the best in the industry. Our guidance on loan and deposit book growth remains intact. Credit cost will continue to remain within sub 100 bps as per our earlier guidance. In line with our strategy, we will continue to expand our physical presence across the country. During this quarter 29 new branches were opened, taking our total branch count to 729. In Q4 we will be adding ~23 more branches. Further we believe, we are in the final stages of merger with our holding company as a hearing by Hon’ble NCLT is scheduled on 30th Jan’24 to which we expect a positive outcome. Having said that, we expect merger process to get completed within this financial year.” About Ujjivan Small Finance Bank Limited: Ujjivan Small Finance Bank Limited is a small finance bank licensed under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of small finance bank in India. Bank serves ~82 lakh customers through 729 branches and 21,796 employees spread across 321 districts and 26 states and union territories in India. Gross loan book stands at ₹27,743 crore with a deposit base of ₹29,669 crore as of Dec 31, 2023. 'We constantly strive to ensure strong corporate culture which emphasizes on integrating CSR values with business objectives. We work with communities in navigating the unprecedented challenges primarily focused on healthcare, disaster relief, Covid relief, livelihood for especially abled people, education, and community infrastructure development.’ Web: www.ujjivansfb.in Twitter: @U jjivanSFB Safe Harbour: Some of the statements in this document that are not historical facts are forward-looking statements. These forward- looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry. For further information, please contact: Ujjivan Small Finance Bank Limited For Media Queries: For Investor Queries: Mr. Ram Kumar Uppara Mr. Deepak Khetan +91 9820177907 +91 7045792752 ram.uppara@ujjivan.com deepak.khetan@ujjivan.com DISCLAIMER • This presentation has been prepared by Ujjivan 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. 2 KEY HIGHLIGHTS – Q3FY24 (1/3) Gross Loan Book Total Deposits Retail TD*+ CASA ₹ 27,743 cr ₹ 29,669 cr ₹ 20,389 cr Up 27% yoy Up 28% yoy Up 34% yoy Dec'22: ₹21,895 cr Dec'22: ₹23,203 cr Dec'22: ₹15,242 cr GNPA/NNPA CRAR Employees 2.1%/0.16% 24.4% 21,796 Down 131 bps/Up 11 bps yoy Down 165 bps yoy Up 30% yoy Dec'22: 3.4%/0.05% Dec'22: 26.0% Dec'22: 16,764 Added 29 branches during Q3FY24 taking total branch count to 729 * Note: Retail TD are TDs below ₹ 2 Crs; ** Floating provision of ₹250 Cr (NPA provision: ₹ 120 cr; Other provision: ₹ 100 cr; Tier-II Capital: ₹ 30 cr) continues to be on the books which can be utilized for making specific provisions in future during extraordinary circumstances, with prior approval from the RBI (as & when required); *** All NPA and gross loan book data in this document 3 (except in Financial Overview section)are without adjustingfor IBPC &Securitizationbook KEY HIGHLIGHTS – Q3FY24/ 9MFY24 (2/3) Q3FY24 Vs Q3FY23 9MFY24 Vs 9MFY23 NII ₹ 860 cr ₹ 2,476 cr Up 23% Vs ₹ 697 cr Up 26% Vs ₹ 1,960 cr NIM 8.8% 8.9% Down 61 bps Vs 9.4% Down 67 bps Vs 9.6% PPoP ₹ 457 cr ₹ 1,399 cr Up 18% Vs ₹ 389 cr Up 30% Vs ₹ 1,074 cr PAT ₹ 300 cr ₹ 952 cr Up 2% Vs ₹ 293 cr Up 20% Vs ₹ 790 cr RoA 3.1% 3.5% Down 103 bps Vs 4.1% Down 41 bps Vs 3.9% RoE 24.2% 27.3% Down 547 bps Vs 29.7% Down 329 bps Vs 30.6% KEY HIGHLIGHTS (3/3) Credit Rating Ratings upgrade towards long term facilities by CARE to AA- (Stable) from A+ (Positive) Secured:- Secured book* inching up; 28.3% as on Dec’23 vs 27.5% as on Sep’23 Affordable Housing:- Total of 13 hubs active as on Dec’23 complementing the branches in servicing Assets customers present in 350+ locations; faster credit decisioning and lower disbursal TAT MSME:- Started disbursement with two new Fintechs in Q3FY24 for Supply Chain Finance Deposits:- CASA up 8% QoQ; CASA ratio higher at 25.5% vs 24.1% as of Sep’23; driven by nation-wide brand campaign and launch of new value add products last quarter Liabilities Funding:- CD Ratio at 94% vs 91% in Sep’23 | ex-IBPC/ Securitisation CD Ratio at 88% vs 85% in Sep’23 Excess Liquidity moderated: Daily LCR reduced to 137% as on 31st Dec’23 from 158 % as on 30th Sep’23 CoF:- Cost of Funds moderating: Increased 8 bps in Q3FY24 to 7.5% vs 23 bps in Q2FY24 to 7.4% Reverse Merger NCLT date for hearing scheduled on 30th Jan’24 ESG Successfully launched our maiden ESG report on 9th Jan’23; Click here for more information * Note: Without adjustingfor IBPC &Securitizationbook Liabilities: Driving Retail Deposit Base 6 STRONG DEPOSIT GROWTH WITH RETAIL AT FORE-FRONT Total liabilities profile (₹ in crore) Deposits break-up (₹ in crore) CASA break-up (₹ in crore) Refinance Deposits Others Bulk TD Retail TD CASA CD SA CA 32,872 33,381 29,139 29,669 7,556 2,512 2,589 388 168 7,012 1,156 25,521 147 23,203 7,012 7,556 6,070 563 672 6,070 482 11,806 12,832 29,139 29,669 9,172 6,885 23,203 6,450 5,588 1,162 1,221 1,123 7,814 9,933 9,113 Dec'22 Sep'23 Dec'23 Dec'22 Sep'23 Dec'23 Dec'22 Sep'23 Dec'23 Improving Average SA Balances(₹ in ‘000) Cost of funds# ❖ Comfortable ALM position Overall Retail Branch Banking CoF Deposits* CASA ❖ Provisional Daily LCR at 137% as on 31st 34.6 32.4 Dec’23 30.2 ❖ Credit To Deposit Ratio: 94% as of Dec’23 (88% % % % % % 6 % 5 4 . 7 4 . 7 5 . 7 5 . 7 adjusted for IBPC/ Securitisation book) . . % % % 8.1 8.6 8.9 6 6 3 . 5 3 . 5 5 . 5 ❖ Ratings - CRISIL A1+, (₹ 2,500 Cr certificate of deposits); CARE AA- (stable) (Long term bank facilities) Dec'22 Sep'23 Dec'23 Q3FY23 Q2FY24 Q3FY24 7 ^ TD: Term Deposits, CASA: Current Account, Savings Account; *Cost of Blended Deposits –TD + CA+ SA; # On Book + off Book WELL-DIVERSIFIED DEPOSIT MIX Deposits from individual continues to grow with our focus on building granular deposit base 8 Assets: Well-diversified growth with new customer acquisition 9 GROSS LOAN BOOK AND DISBURSEMENT TREND Strong disbursements (₹ in crore) Consistent growth in Gross Loan Book (₹ in crore) Contribution from 28% 27% 27% 27% 28% Secured Book(%) 1 4 8 , 1 0 0 , 6 4 8 2 , 5 9 4 7 , 5 5 7 6 , 5 5 9 8 , 5 8 0 , 4 6 2 3 , 5 2 4 7 5 , 6 2 3 4 7 , 7 2 4 1 2 2 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Healthy growth in New Customer acquisition IBPC/ Securitisation (₹ in crore) (% of Fresh Loans) Acquired 2.5/7.8 lakh new IL MGL customers in Q3FY24/9MFY24 43% 42% 40% 40% 39% 3 4 7 9 1 7 1 , 5 , 2 5 8 6 9 15% 17% 17% 18% 6 , 1 2 6 , 1 5 , 1 12% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 10 GROWING ACROSS SEGMENTS Gross Loan Book – Segment wise (₹ in crore) % Gross Growth Growth Product Loan Book YoY QoQ MGL IL MSME AH* FIG Others 27,743 Micro Group Loans 56% 21% 2% 26,574 719 642 1,435 1,304 Individual Loans 16% 64% 10% 21,895 4,417 4,036 543 1,010 1,397 MSME 5% (20)% (3)% 1,442 3,144 4,304 3,925 1,744 Affordable Housing* 16% 40% 9% 2,632 FIG Lending 5% 42% 10% 15,226 15,471 12,823 Others 3% 32% 12% Total 100% 27% 4% Dec'22 Sep'23 Dec'23 MGL-Micro Group Loans IL-Individual Loans MSME- Micro Small & Medium Enterprise * Includes Micro-LAP 11 AH-Affordable Housing FIG- Financial Institution Groups DISBURSEMENT, YIELD AND AVERAGE TICKET SIZE Product wise Disbursement (₹ in crore) Yield (%) – Segment wise MGL+IL Overall MSME AH (Ex MLAP) MGL IL 22.0% 22.2% 21.0% MSME AH* 16,708 19.2% 19.3% 5,749 5,675 18.4% FIG Others^ 272 1,208 520 992 379 14.0% 14,036 293 4,838 12.5% 12.7% 593 1,554 294 541 595 600 12.9% 12.6% 198 12.0% 240 952 68 106 Q3FY23 Q2FY24 Q3FY24 344 762 2,919 167 1,019 1,029 Average Ticket Size (₹) 1,944 712 Product Q3FY23 Q2FY24 Q3FY24 Micro Group Loans 55,186 55,066 56,534 3,308 3,294 9,838 Individual Loan 1,22,185 1,31,113 1,32,183 9,185 3,081 MSME (ex-fintech) 40.0 lakhs 43.6 lakhs 43.4 lakhs Affordable Housing (Ex- 13.1 lakhs 13.9 lakhs 14.1 lakhs Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Micro-LAP) 12 ^Includes Vehicle loan, Staff Loan, OD-FD, KPC & others * Includes Micro-LAP Sustained improvement in asset quality 13 COLLECTIONS SUSTAINING; NDA COLLECTIONS AT ~100% Collection % (against month due) Collection Efficiency % (incl Additional collections) CCaasshhlleessss MMBB ccoolllleeccttiioonnss 117% 115% 40% 112% 112% 112% 37% 111% 111% 111% 111% 110% 110% 110% 109% 31% 29% 26% 100% 99% 100% 100% 99% 99% 99% 99% 99% 99% 99% 98% 99% Dec'22 Jan'23 Feb'23 Mar'23 Apr'23 May'23 Jun'23 Jul'23 Aug'23 Sep'23 Oct'23 Nov'23 Dec'23 Collection team to graWdeulal lclya lriberdautceed… c owliltehc tNioPnAs + t eraemst…ru.c (tNuores)d pool shrinking (Nos) • Flexible & multiple modes of collections apart from traditional Total Off Roll Total on Roll centre meetings/door-to-door 2,677 2,621 2,445 collections 2,307 654 654 549 1, 1 3 1 5 6 264 1, 5 3 0 2 5 , 1 7 985 1, 0 7 7 1 9 , 1 6 867 2, 4 3 0 4 3 , 1 7 164 4 7 3 8 0 , 1 8 1 9 0 7 3 , 1 8 7 3 8 6 0 , 1 8 1 3 6 5 7 , 1 7 2, 7 3 7 5 7 , 1 5 114 2, 0 3 8 5 0 , 1 5 038 2, 9 1 9 2 9 , 1 7 018 1, 6 1 8 2 4 , 1 7 964 1, 4 6 0 2 1 , 1 7 974 • • • I r E c D n e o x a t p p l t r l a a e o e y d d c m t i u t i a c e o in e n n n g d a t s ly i v n t a i s c r l e s e io c g u u a s r d l e r d d iv ig b e p i n o t r o a o l k c p e m r s e o s d d i e c s ti f o o o n r f 6 models based on Early Warning Triggers aiding in better collections Mar'20 Jun'20 Sep'20 Dec'20 Mar'21 Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Note: Collection efficiency -collections for the period against dues for the period. It does not 14 include pre-closures and any advance or future payments COLLECTION EFFICIENCY ₹ Crore Oct’23 Nov’23 Dec’23 Additional Additional Additional Verticals Due Collection % Due Collection % Due Collection % Collection Collection Collection MGL+IL 1,449.8 1,435.0* 99% 112.5 1,488.8 1,469.5* 99% 102.5 1,504.1 1,487.5* 99% 129.2 Affordable 54.2 52.4 97% 48.8 55.7 54.0 97% 44.2 57.2 55.6 97% 52.8 Housing MSME 23.8 20.9 88% 18.4 23.7 20.8 88% 24.9 23.5 20.7 88% 24.9 FIG Lending 81.2 81.2 100% 0 87.3 87.3 100% 0 111.5 111.5 100% 0 Others 14.0 12.9 92% 2.1 14.7 13.5 92% 2.3 14.4 13.3 92% 2.44 Total 1,623.0 1602.5 99% 181.8 1,670.2 1645.1 98% 174.0 1,710.9 1688.6 99% 209.3 15 * Including OD collection SUSTAINED COLLECTIONS DRIVING BETTER ASSET QUALITY NPA & SMA have shrunk significantly YTD NPA Movement Table# PAR GNPA SMA NNPA 4.9% 198 3.8% 3.8% 3.7% 3.6% 3.4% 2.6% 2.4% 2.2% 2.1% 347 1.5% 1.2% 1.5% 1.5% 1.6% 0.04% 0.06% 0.09% 0.16% 0.05% 209 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 PAR 0 and GNPA (segment wise) PAR 0 15.5% GNPA 631 571 8.8% 4.5% 4.2% 2.8% 2.4% 1.8% 1.7% 0.3% 0.3% Opening NPA Slippages Recoveries/ W/Off Closing NPA MGL+IL MSME Affordable Housing FIG Others Upgrades 16 # Excluding IBPC/Securitisation FLOATING PROVISION; CUSHIONING P&L Std+NPA Provision Floating PCR% (₹ in cr) 1200 110% 142 99% 98% 98% 96% 100% 1000 92% 100 842 90% Total NPA provision of 30 747 800 150 715 ₹529 Crs Floating 701 671 80% Provision of 120 120 ₹250 Crs 120 120 120 801 600 70% 60% PCR @92% excluding floating 400 provision of ₹30 cr and ₹100 Cr 692 under Tier II and Other 627 595 581 551 50% 409 provisions respectively 200 40% 0 30% Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 GNPA Floating Tier II Other Standard Total Provision NPA capital# provision# Asset Provision Provision Provision # Floating provision of ₹250 Cr continues to be on books & can be utilized for making specific provisions in future during extraordinary circumstances, with prior approval from 17 the RBI ₹ 30 Cr was moved to Tier II capital in Jun’22 while ₹ 60 Cr, ₹ 10 Cr and ₹ 30 Cr were moved to other provision in Sep’22, Dec’22 and Mar’23 respectively RESTRUCTURED BOOK AT 0.4% OF GROSS LOAN BOOK Restructured Book Significant reduction in stress book ₹ crores RF 1.0 RF 2.0 Total 18.4% GNPA+RF Book Micro Banking (GL+IL) 43 15 57 PAR+RF Book Housing 6 14 20 14.5% MSME 4 35 38 11.7% 9.2% Loan Book 53 63 116 9.7% 6.8% PAR 48 46 95 7.4% 5.3% 4.0% 4.0% 3.8% 3.7% GNPA 47 37 84 5.3% 3.8% 2.9% Provisions 48 40 87 2.5% 2.4% 2.2% 1 2 2 2 2 3 3 3 3 Dec’23 Coll. Eff. % 123%* 2 2 2 2 2 2 2 2 2 'c 'r 'n 'p 'c 'r 'n 'p 'c e a u e e a u e e D M J S D M J S D 18 * GL/IL Including OD collection FINANCIAL OVERVIEW Cost to Income Ratio & Operating Pre-Provision Operating Profit & PPoP NII (₹ in crore) & NIM* Expenses/ Average Assets (%) (RoA) 1,100 9.4% 9.1% 9.2% 100% 1, 0 90 0 0 0 8.8% 8.8% 10.0% 8 9 0 0 % % 6.2% 6.4% 6.1% 5.7% 6.0% 6 7 . . 5 0 % % 525 5.4% 5.2% 5.4% 5.3% 4.7% 6.0% 8.0% 5.0% 70% 6.0% 425 800 60% 5.5% 4.0% 700 6.0% 325 50% 600 793 823 860 4.0% 40% 4 5 . . 5 0 % % 225 389 411 458 483 457 3.0% 697 738 30% 53% 55% 53% 52% 56% 2.0% 500 4.0% 2.0% 20% 125 1.0% 400 10% 3.5% 300 0.0% 0% 3.0% 25 0.0% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Net Interest Income Net Interest Margin C/I Ratio (%) Opex/ Avg Assets PPoP PPoP (RoA) 3,000 100% 100% 2,800 9.6% 8.9% 90% 80.0% 6.4% 5.9% 90% 1,600 5.3% 5.1% 100% 2,600 80% 70.0% 80% 1,400 90% 2,400 70% 70% 80% 1,200 2,200 60% 60.0% 60% 70% 1,000 60% 2,000 50% 50% 50.0% 800 50% 1,800 2,476 40% 40% 1,399 40% 1,600 1,960 30% 40.0% 55% 54% 30% 600 1,074 30% 1,400 20% 20% 400 30.0% 20% 1,200 10% 10% 200 10% 1,000 0% 20.0% 0% - 0% 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 Net Interest Income Net Interest Margin Cost to Income ratio (%) Opex/ Avg Assets PPoP PPoP (RoA) 20 * NIM based on total book including IBPC & Securitization FINANCIAL OVERVIEW PAT (₹ in crore) & RoE EPS* (₹) Net worth (₹ in crore) & BVPS (₹) 450 35.6% 29.7% 30.3% 29.8% 2.50 6000 28.0% 400 30.6% 5000 24.2% 2.00 350 25.6% 4000 300 1.50 3 2 2 0 5 0 0 293 310 324 328 300 1 2 5 0 . . 6 6 % % 1.00 1.50 1.53 1.66 1.68 1.53 4 6 0 , 4 9 0 2 , 4 9 3 5 , 4 1 7 7 , 4 8 0 , 5 2 3 0 0 0 0 0 0 0.50 1000 10.6% 150 - 0 100 5.6% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Networth PAT RoE 5.00 30.6% 27.3% 4.90 100% 26 1000 4.80 90% 24 4.70 80% 800 22 70% 4.60 60% 4.50 20 600 4.87 0 952 50% 4.40 2 4 . . 5 18 400 790 3 4 0 0 % % 4 4 . . 2 3 0 0 4.35 8 . 9 1 5 . 0 2 . 2 2 3 2 2 1 1 4 6 200 20% 4.10 12 10% 4.00 0 0% 10 9MFY23 9MFY24 9MFY23 9MFY24 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 PAT RoE BVPS 21 * Basic EPS INCOME STATEMENT Particulars (₹ in crore) Q3FY24 Q3FY23 YoY Growth Q2FY24 QoQ Growth 9MFY24 9MFY23 YoY Growth Interest Earned 1,471 1,082 36% 1,391 6% 4,149 2,980 39% Other Income 185 139 33% 189 (2)% 551 410 34% Total Income 1,655 1,221 36% 1,580 5% 4,699 3,390 39% Interest Expended 611 385 59% 568 8% 1,673 1,020 64% Personnel Expenses 324 229 41% 283 14% 882 679 30% Operating Expenses 264 217 21% 245 7% 746 617 21% Total Cost 1,198 832 44% 1,096 9% 3,301 2,316 43% Pre Provision Operating Profit 457 389 18% 483 (5)% 1,399 1,074 30% Credit cost 63 (0) NM 47 34% 136 19 601% Other provisions & (0) 0 NM (0) NM (0) 0 NM contingencies Tax 94 96 (2)% 109 (13)% 311 264 18% Net profit for the period 300 293 2% 328 (8)% 952 790 20% 22 TOTAL INCOME - BREAKUP Particulars (₹ in crore) Q3FY24 Q3FY23 YoY Growth Q2FY24 QoQ Growth 9MFY24 9MFY23 YoY Growth Interest on loan 1,283 957 34% 1,210 6% 3,627 2,670 36% Int. on investments 184 118 56% 177 4% 510 287 78% Securitization Income 3 7 (55)% 4 (28)% 12 22 (48)% Total Interest Earned 1,471 1,082 36% 1,391 6% 4,149 2,980 39% Processing Fees 75 64 18% 73 2% 215 181 19% PSLC Income 3 0 NM 0 NM 29 24 20% Insurance Income 31 10 199% 37 (17)% 77 28 174% Bad Debt Recovery 31 34 (7)% 39 (19)% 105 90 17% Treasury 4 1 256% 1 265% 12 0 32051% Misc. Income* 41 30 36% 39 6% 113 88 28% Total Other Income 185 139 33% 189 (2)% 551 410 34% Total Income 1,655 1,221 36% 1,580 5% 4,699 3,390 39% * Includes cards AMC charges, NFS/ other banking operations income and foreclosure/ late payment & other charges 23 BALANCE SHEET As at As at As at Particulars (₹ in crore) Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 CAPITAL AND LIABILITIES Net worth 5,083 4,771 3,769 Capital 2,157 2,156 2,155 Employees Stock Options Outstanding 63 55 47 Reserves and Surplus 2,863 2,560 1,862 Deposits 29,669 29,139 23,203 Borrowings 3,712 3,733 2,318 Other Liabilities and Provisions 1,066 1,038 867 TOTAL 39,530 38,680 30,461 ASSETS Cash and Balances with Reserve Bank of India 1,476 1,847 1,842 Balance with Banks and Money at Call and Short Notice 392 408 903 Investments 10,800 10,930 7,152 Advances 25,620 24,325 19,525 Fixed Assets 395 357 270 Other Assets 849 814 769 TOTAL 39,530 38,680 30,461 24 HEALTHY CAPITAL ADEQUACY (₹ in Crore) Dec’22 Mar’23 Jun’23 Sep’23 Dec’23 Credit Risk Weighted Assets 15,369 16,361 17,012 18,839 20,924 Tier I Capital 3,511 3,712 4,018 4,239 4,597 Tier II Capital* 488 511 522 506 503 Total Capital 3,999 4,223 4,541 4,745 5,099 CRAR 26.02% 25.81% 26.69% 25.19% 24.37% Tier I CRAR 22.84% 22.69% 23.62% 22.50% 21.97% Tier II CRAR 3.18% 3.12% 3.07% 2.69% 2.40% Floating Provision considered in 30 30 30 30 30 Tier II out of 250 Cr Floating provision of ₹250 Cr created in Jun’21 continues to be on books and can be utilized for making specific provisions in extraordinary circumstances with prior approval of RBI. Including ₹ 250 Cr of floating provision, total provision on gross loan book are at ₹ 942 Cr as of 31st Dec’22 / ₹ 877 Cr as of Mar’23 / ₹ 845 Cr as of Jun’23 / ₹ 831 Cr as of Sep’23 / ₹ 801 Cr as of Dec’23. For FY 21 -22 ₹250 Cr was utilized towards NNPA/ PCR calculation; During June 2022 , the Bank had utilized ₹220 Cr for NNPA/ PCR calculation and ₹30 Cr was utilized as part of Tier II capital; As a result of sustained recovery efforts and continued improvement in the Banks portfolio leading to reduction in GNPA of the Bank, in the current quarter only ₹120 Cr is utilized for NNPA/ PCR calculation, ₹30 Cr has been utilized as part of Tier II capital. The balance ₹100 Cr has been grouped as part of other provisions without utilising the same towards Tier II capital, this amount continues to be earmarked for utilization for NNPA/PCR (as and when required) 25 GUIDANCE Asset Deposits Ratios 4 Gross Loan Book Growth- >25% NIM: ~ 9.0% 2 Deposit Growth: >30% Y Credit Cost: <100bps RoE: >22% F / 56 22 Retain our FY25/FY26 guidance on growth & profitability YY FF 26 Ujjivan – Platform for growth Please refer to Investor Meet Presentation for more details uploaded on our website, www.ujjivansfb.in 27 SERVING CUSTOMERS THROUGH MULTIPLE CHANNELS ● Web-based Business Internet Banking application ● High volume bulk upload facility ● 577 biometric enabled ATMs including 62ACRs* ● Customizable client centric approval matrix ● Customer alerts for each incorrect PIN entry & Green ● Single sign on for all accounts, Easy access to PIN facility 24/7 for PIN change Personal & multiple relationships with one app ● Block/unblock debit card & set transaction limits Business ● Aadhar authentication based password reset option through ATMs Internet banking ● Opening of 3-in-1 A/C Demat through internet ATMs ● Supported in 9 regional languages banking Multiple ● 24x7 phone banking helpline in 14 Languages ● End to End Digital FD / SB account opening for ● Digimitra - unique & dedicated customer support for delivery resident Indians business net banking customers channels ● Tablet-based customer acquisition for loan ● VKYC and Video Banking services products Phone/ ● IVR Supported in 9 languages Web/ Tablet ● Door-step service; faster, easier, better TAT Video Based Origination ● Dedicated helpline for NR customers Banking ● Hello Ujjivan live on Google Playstore for Android users in ● Available in 9 languages Nov’22 ● Implemented Device Binding for both android and ● 5.9 Lakh downloads of ‘Hello Ujjivan’ as on Dec’23 aiding in iOS users for making app usage more safe and paperless disbursements, digital repayments and reducing TAT secure Mobile App ● Acquired customers in 100+ locations having no branch ● Aadhar authentication based password reset presence Hello Ujjivan 28 * Automated Cash Recycler WELL DIVERSIFIED PAN INDIA PRESENCE; ADDED 29 NEW BRANCHES DURING THE QUARTER • 26 states and UTs (187 URCs) Dec’23 Gross Loan Book (%) • 729 Banking Outlets (BO) • 321 districts TN 14.1% • 577 ATMs# KA 13.1% • 5k+ Electronic Collection Retail 2 CH:2 WB 12.0% Points (ECRP) MH 9.1% 17 6 GJ 7.9% 39 DL:13 BR 6.9% UP 6.9% 37 17 52 HR 5.8% 1 48 RJ 4.4% 8 ND 4.3% 58 21 95 13 PB 2.5% OR 2.4% 4 JH 2.4% 25 KL 2.3% 53 MP 1.6% Region-wise Branch-wise 5 TR 1.1% AS 1.0% 2 3 PY 0.5% Rural, 94 Banking infrastructure West, UK 0.6% East, 8% Metro, 17% Semi- # s CH 0.4% 26% 30% PU:1 M 517 523 545 577 Urban, T CG 0.2% 93 A 27% 20 HP 0.1% South, ML 0.1% g n s t 661 700 729 GA 0.1% 30% North, Urban, Banking Outlets ik n a B e lt u O 629 TL 0.1% 27% 35% States with branch network Mar'23 Jun'23 Sep'23 Dec'23 Total Gross Loan Book – ₹ 27,743 Cr* 29 # Including ACRs Note:- Map not to scale *Includes IBPC and securitization EXPANDING CUSTOMER BASE Customer Base Growth Customer Base – Basis of Branch Classification Asset Only Asset & Liability Liability Only 82.4 9% In Lakhs 79.4 76.9 75.5 73.0 37% 24% 35.1 33.4 34.4 31.4 32.2 30% Urban Semi-urban Metro Rural *Semi-Urban branches largely cater to rural customers 42.2 43.6 • Liability customers grew by 13% YoY 40.3 38.9 37.7 • New customer acquisition continues to be strong • Net Lability only customer addition at 1.7 lakhs for the quarter • Borrower base picking up pace with 1.3 lakhs net 3.1 3.6 3.7 3.7 3.6 addition in Q3 vs 1.9 lakhs in Q2 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 30 ~5.4L dormant / inactive accounts closed in Q1FY24 COMPREHENSIVE SUITE OF PRODUCTS & SERVICES Micro, Small & Medium Micro-Banking Affordable Housing Loans Financial Institutions Group Others Enterprise Loans • Group Loans n a • Individual Loans o • Construction and Purchase L • Top up Loans • Term loan to NBFCs, HFCs • Two-wheeler loans • Home Improvement • Agriculture & allied loans and MFIs • Busimoni OD • Composite Home • Gold loan • CC/OD • OD against FD • Prime LAP# - Semi Formal • Home Equity Loan • Street vendor loan • Bank Guarantee • Loan Against FD • Business EDGE Overdraft • Commercial Purchase Loan • OD on current account • Non MF Loans • Vikas Loan (Micro-LAP) • Water Sanitation Loan • Cattle Maintenance Loan • NULM^ • Pre-approved – IL • Insurance • Fixed Deposits • Call money • Current Account • 3-in-1 Demat Trading Services tt • Term Money products y ii ss • Savings Account t r Fee • Forex oo pp Retail Products • Non Resident Account Institutional • Institutional Savings • G-Sec trading a P based • APY ee DD • Term Deposit Products • Current Account • Collection and d r - Products • Aadhaar enrolment services i CC/OD variants of h • Digital Savings & FD • Certificate of Deposit T • CMS current account • Safe deposit locker s l e ATM / POS / QR code/ n Branch Banking, Asset Internet & Corporate n Money Mitra/ Touch- Mobile & Internet Banking Phone Banking, IVR a Centers Banking h points C # Loan against property 31 ^National urban livelihood mission STRONG INDEPENDENT BOARD (1/2) Name Education Experience Banavar Anantharamaiah Retired as Chairman and Managing Director of Andhra Bank after serving various Banks for about Prabhakar Commerce graduate, University of 37 years. Prior to that he served as the Executive Director of Bank of India for a period over 3 Chairman and Independent Mysore, CharteredAccountant. years, He also worked abroad for about eight years in two stints at Zambia and U.K. He was the Director Chief Executive of Bank of Baroda UK Operations. International banker with 40+ years of banking experience having worked extensively in the Ittira Davis PGDM, Indian Institute of Management, Middle East and Europe. Was previously associated with Europe Arab Bank, Citibank in India and Managing Director and CEO Ahmedabad the Arab Bank Group in the Middle East. Joined Ujjivan in Mar’15 to manage the transition to an SFB. He was MD & CEO of UFSL for Jul’18 -Mar’21 Samit Kumar Ghosh MBA, Wharton School of Business, Founder of UFSL and served as its MD & CEO. He retired as MD and CEO of Ujjivan SFB on Non-Executive Director University of Pennsylvania. November 30, 2019. He is a Career banker with over 30 years of experience in India & overseas. Finance professional with a rich experience of over two decades in various organizations & a Sudha Suresh decade as practicing chartered accountant. She is the founding partner of S. Rao & Associates, B.Com (Honors) C.A., Grad ICWA, CS Independent Director Chartered Accountants, Bangalore and founder of Mani Capital. She was the MD & CEO (2017- 18) and Chief Financial Officer (2008-17) of UFSL 32 STRONG INDEPENDENT BOARD (2/2) Name Education Experience Career banker for nearly four decades with SBI as well as its associate banks. Handled varied Rajni Mishra M.Com (Gold Medallist), MS University, assignments and diverse portfolios, gained exposure in risk management, branch administration, Independent Director Vadodara corporate credit, forex treasury etc. She was the chairperson and Independent Director of NCL Buildtek limited, Hyderabad A global leader with a track record spanning 30+ years having worked in India, London and Qualified FCCA (UK), ACMA (UK), Bahrain. He brings a strong business background and having worked with top Business Leaders in Ravichandran Venkataraman Program for CFOs with Wharton over 100 countries. He is the Chairperson of eVidyaloka Trust, a not-for-profit social enterprise Independent Director Business School into remote education for rural children in India. Previously, he has worked with HP’s Global Business Services, Hewlett Packard,ANZ Bank and Bank Muscat. Rich work experience of 27 years in Banking industry with a focus on risk management. Bachelor of Arts (Economics), Fellow Rajesh Kumar Jogi Previously was associated with Natwest Group (erstwhile RBS Group) and was Chief Risk Officer, member ICAI, Advanced Management Independent Director India of the Royal Bank of Scotland and subsequently the Country Head of Risk, India for the Program from Harvard Business School Group HR expert with over 40 years of experience as a management consultant. Began her career with Anita Ramachandran AF Ferguson & Co and has worked in a wide range of areas. Founded Cerebrus Consultants in MBAfrom Jamnalal Bajaj Institute Independent Director 1995 to focus on HR advisory services, including Organisation transformation. Has been an Independent Director on various Boards for the last 20 years. 33 KEY GROWTH STRATEGIES COMPREHENSIVE & RELEVANT PRODUCTS STRONG DISTRIBUTION & COLLECTION NETWORK ● Entire gamut of asset and liability products to attract new 04 ● Use right combination of physical and digital channels and 01 customersand deepen existingcustomerrelationships partnershipsto expand reach, bankingoutletsand infrastructure ● Expandrange of third partyproducts and services ● Build a dynamic and strongcollectionnetwork ● Increase penetration of asset products under Retail, MSME and ● Strengthen alternate delivery channels and encourage customers to housingsegments movetowards a cashlessenvironment CONTINUE FOCUS ON IMPROVING FINANCIAL FOCUS ON DIGITAL BANKING AND 02 05 AND DIGITAL INCLUSION ANALYTICS ● Focus on the un-served and underserved segments and educate ● User-friendly digital interface to extend bank’s reach and customerstodevelop improvedfinancial behaviour offer a strong banking platform; focus on user adoption with ● Maintain transparency, responsibly price loan offerings, effectively programs likeDigiMitra* redress grievances and ensure disclosuresin vernacular languages ● Invest in API platform, innovations, fintech partnerships to ● Continue to partner with Parinaam Foundation to enhance financial widen product offerings/banking solutions literacyand developKisanPragati Clubs ● Invest strategically to integrate technology into operations to ● Promote use of bankaccounts,UPIanddigitalpayment gateways empower customers,reduce costsandincrease efficiencies ● Adoptrobotic processestoautomateoperationalprocesses ● Dataanalyticstobe used tooffercustomizedsolutions ● Establishbankas a modern technologyenabledbank BUILD A STABLE & GRANULAR DEPOSIT BASE DIVERSIFY REVENUE STREAMS 03 ● Improve share of CASA, recurring and fixed deposits by building 06 ● Leverage banking infrastructure to diversify product portfolio and increase fee and commission-basedbusiness a sticky deposit base and attracting new customers; focus on retail depositbase to reduce cost of funds ● Increase focus on treasury income, bancassurance, fee and processingcharges ● Selectively open branches in urban areas with large customer base ● Introduce new products and services and focus on cross-selling to existingcustomers ● Target mass customer acquisitionthroughfocusedprograms 34 *Dedicated support for Digital Channel users AWARDS & ACCOLADES Technology Senate Awards 2023 Skoch Award In the “Enterprise Security” For Information Security BFSI & Fintech- Conclave and Awards BFSI & Fintech- Conclave and 2023 Awards 2023 Digital Security Most admired cyber security initiative of the year Quantic 18th Annual Summit & Awards 4th Annual BFSI Excellence Awards 2023 Banking & Financial Sector Financial Literacy Program of the year (SFB) Lending 2nd Annual Cyber Security Excellence Runner up in “Best Risk and Cyber Awards 2023 Security Initiatives” under SFB class Best visionary in Security Governance (Banking) 36 SHAREHOLDING PATTERN – DEC’23 Promoter* MF Insurance Companies Resident Individuals/HUF Foreign investors Alternative Investment Fund Others 1.7% 3.7% 1.3% 17.0% 1.3% 1.3% 73.6% *Promoter is Ujjivan Financial Services Ltd, a Core Investment Company and listed on NSE/ BSE 37 FINANCIAL LITERACY PROGRAM (FLP) Diksha+ Pro 14,927 Customers and community people across 84,446 customers trained in Diksha+. 162 branches have attended 90% of the customers were certified Financial Literacy Camp 44% Shown interest for different banking products 31% Customers accessed different banking products FLC for URC Branch 19% customers repaid digitally “Pragati” for IL Customers Chillar Bank 33,007 Cust & Child trained in Chillar Bank 2,583 customers across 8 98% of Children attend post enrolment branches from Assam has been participated in pilot 22% Shown interest for different banking products “Pragati” Financial 19% Customers accessed different banking products Literacy Program 13% customers repaid digitally 38 CORPORATE SOCIAL RESPONSIBILITY (CSR) Cleanliness Drive About 4,800+ employees volunteered in the Swachh Neighbourhood drive across 183 branches YTD. 335+ employees engaged with CSR partners like proVISION Asia, Calcutta Social Project, Pi Jam & Disaster relief provided at Chennai Maithree society, Ruhi foundation, Tirunelveli, Thenkasi & Ambasamudram and Sindhitai Sapkal orphanage etc.had the neighbouring locations affected by the direct interaction with the incessant rains and devastating floods—8,500 beneficiaries(YTD) grocery kits distributed Disaster Relief Initiative No. of tree plantations : 2,896 Employee Volunteering ENVIRONMENT, SOCIAL & GOVERNANCE (ESG) Customer Centricity Sustainable Operations • Service Index levels – Target 5 points – Actuals – 3- 01 • Wastemanagement 04 pointincrease( from83 – 86 ) • LEDBulbsin99 %of offices(Target75%) • CapacityBuilding forAajeevan Reach–Target50%- Actiuals–100%willbecompletedbyJan 2024 Aspects Cutting Across • SustainabilityWebpage Empowering communities • TCFD&GRIDisclosure 05 • InternalDJSIRepeatAssessment • Cleanliness drive coverage - cover – Target 100 ; • Vendorcodeofconduct Achieved-183 • VendorAssessmentonESG 02 • Greencover–Target235– Achieved282 (120%) • Volunteering–80%of the target • 20% of CSR projects in Aspirational Districts / Digital Transformation BHIMARUstates E-KYC,Digital repayments,Digital transactions,Account 06 opening @ Non-branch locations, Loan acknowledgements–219MTCO2Emissionssavings. Human Capital Effective Governance 03 • GenderDiversity–20% Target–22% • Employee Training Hours 29 hrs against the target • ISOCertification of 30.5 hrsperemployee • Contract Management system- 1.8 Lakhs contracts 07 • ESGTrainingmodule executedthroughdigitalplatform. • LitigationManagementSoftware THANK YOU For Investor Queries: Mr. Deepak Khetan +91 7045792752 deepak.khetan@ujjivan.com