Investor Presentation - Fincare Bank · 2020. 7. 28. · •Rights issue at FBSL and FSFB by...

CONFIDENTIAL © Fincare SFB 2019

Investor PresentationQ3FY20/ 9MFY20

1PRIVATE & CONFIDENTIAL


Fincare Platform Evolution01

Q3FY20/ 9MFY20 Highlights02

Banking products and Network

Snapshot03

Assets Snapshot04

Liabilities and Treasury Snapshot05

Other updates – Q3/ 9M FY2007

Financial Statements & Key Ratios08

Board & Management Team09

2

Table of Contents

Digital Banking Snapshot06


3

Fincare Platform Evolution01


• Lok Management Services

established to start the

Business Correspondence

business of the Group

• Consolidation

• Setup of Tech Systems

• ~23% of FFSPL's assets

impacted by AP crisis and

bank debts restructured

• FFSPL recorded significant

provisions against AP loan

book

• Commencement of

microfinance operations of

Disha by Mr. Nanavati, Mr.

Shukla, Mr. Doshi and Mr.

Kothari in Gujarat

• Commencement of

microfinance operations of

FFSPL by Mr. Reddy in South

India

• True North (erstwhile IVFA)

investment in Disha and

FFSPL

• IFAPL established as an

advisory and management

team

2007

2009

2010

2011

2012

2013

Note: IFAPL and FFSPL have been merged with FBSL, effective Oct 2016

Scheme for merger of Lok with FBSL has been filed

Fincare Evolution – Building of Strong Foundation

4

2009 2011 2013


• Stabilization of banking

processes, people and

technology

• Rights issue at FBSL and FSFB

by existing share holders for

growth capital

• Scheduled Bank Status

• As on December’19

i. Crossed business of ₹8,800 Crore

ii. Crossed customer

base of 23 Lakhs

• Launch of Affordable

Housing, Two-wheeler loans

• Rights issue at FSFB

• LAG, IF launched

• Restructuring completed;

new investors at FBSL

• Conversion of Disha Microfin

to Fincare SFB

• Bank commencement

• SFB license application to RBI

• Disha Microfin received in-

principle license from RBI to

establish Small Finance Bank

• Fincare Business Services

(FBSL) established as an

integrated BoP platform

• Micro Enterprise Loans

introduced

• Bank transformation process

initiated – investment in

technology and people

• Regulatory structuring initiated

- slump sale of FFSPL business

with Disha

5

2014

2015

2016

2017

2018

2019

Note: IFAPL and FFSPL have been merged with FBSL, effective Oct 2016

Scheme for merger of Lok with FBSL has been filed

Fincare Evolution – Transformation into a Smart Bank


6

Q3FY20/ 9MFY20 Highlights02


Key Highlights Q3FY20 | 9MFY20 : Becoming Better, Bigger & Smarter (1/2)

7

Total Income

324 | 850 (163 | 471) (99% | 81%)

P&L Highlights

Business Highlights

Gross Loan Portfolio

4,746

(2,855) (66%)

Deposits

4,076(1,432) (185%)

Net-worth

896

(546) (64%)

Operational Highlights

# States & UT

14 States; 2 UTs

# Banking Outlets*

693

Legend:

Q3FY20 | 9MFY20

(Q3FY19 | 9MFY19) (YoY Growth)

# Districts

174

In ₹ Crore

In ₹ Crore

Net Interest Income

167 | 443( 96 | 267) (74% | 66%)

# Employees

7,025

# Customers

23 lakh+

Profit After Tax

60 | 136(26 | 69) (128% | 98%)

Disbursements

1,246 | 3482

(408|1,986) (205%|98%)

*excluding administrative offices, processing centers, call centers etc.

Note: numbers based on unaudited financials; previous year numbers have been reclassified in line with current year, wherever necessary.


Key Ratios Q3FY20 | 9MFY20 : Becoming Better, Bigger & Smarter (2/2)

8

ROA

3.6% | 3.1%

2.9% | 2.8%

Non-Interest Income

10.1% | 9.8%

5.3% | 8.8%

PCR

63.4%

80.7%

Opex/ Business

5.0% | 5.4%

6.6% | 7.0%

GNPA / NNPA

1.3% / 0.5%

1.8% / 0.4%

ROE

30.1% | 24.6%

19.7% | 22.0%

Cost to Income

52.1% | 57.0%

68.3% | 65.6%

Credit to Deposit Ratio

111%

147%

Legend:

9MFY20

9MFY19

Cost of Funds

9.0% | 9.0%

9.5% | 9.5%

NIM

10.2% | 10.2%

10.7% | 10.8%

Deposits / Net-Advances

92%

70%

CRAR

21.3%

26.6%

Tier I CRAR

17.2%

23.1%

CASA

10.8%

8.7%

Retail Share of Deposits

65.3%

48.5%

Legend:

Q3FY20 |9MFY20

Q3FY19 | 9MFY19

Balance Sheet RatiosProfit & Loss Ratios

Secured Book

19.6%

17.5%


Q3FY20 Performance Summary(1/2)

9

Quarterly Highlights• Total Business crossed ₹8,800 Crore in Q3FY20.• 101 Savings Accounts - Fincare digital savings account crossed 50,000 accounts in Q3FY20.

Focus on Growth and Quality of Assets• Continued Growth momentum - Gross Loan Portfolio (GLP) as on December 31,2019 at ₹4,746 Crore, growth of 66% YoY.• Improving Secured Mix - Secured loan portfolio seen slight improvement in Dec’19 to 19.6% from 17.5% in Dec’18.• Stable asset quality - GNPA improved to 1.3% in Dec’19 from 1.8% in Dec’18, NNPA at 0.5% in Dec’19.• Adequate provision coverage Adequately covered assets with PCR at 63% in Dec’19.• Growing Disbursements - Disbursements grew significantly by 205% to ₹1,246 Crore in Q3FY20 from ₹408 Crore in Q3FY19.

Focus upon making Deposits more Granular• Strong growth momentum - Deposit base increased to ₹4,076 Crore in Dec’19 from ₹1,432 Crore registering a growth of 184%.• Focus on retail deposits - Retail to Total Deposits ratio increased to 65% in Dec’19 against 48% in Dec’18.• Stable Deposit Base - Tenure of nearly 90% of total Bulk FD accounts is greater than 12 months leading to a stable non-retail deposit

base.• Improving deposit ratio - CASA Ratio improved to 10.8% in Dec’19 against 8.7% in Dec’18.• Geographical Diversification - Deposits are geographically diversified across various states lowering concentration risk.• True Financial Inclusion - More than 18 lakhs Savings Account opened by Q3FY20 to strengthen Financial Inclusion in India.• Reducing Cost of Fund - Cost of Funds decreased to 9.05% in Q3 FY20 from 9.5% in Q3 FY19.


Q3FY20 Performance Summary(2/2)

10

Adequately Capitalized Bank• CRAR of 21.3% & Tier 1 CAR 17.2% in Dec’19.• Networth increased by 64% to ₹896 Crore in Dec’19 from ₹546 Crore in Dec’18.

Improving Profitability and Operational Efficiencies• ROA improved to 3.6% as on Q3 FY20 against 2.1% in Q3 FY19.• Cost to Income ratio improved to 52.1% as on Q3 FY20 against 68.3% in Q3 FY19.• Opex to Total Business ratio seen improvement -as on Q3 FY20 is at 5.0% from 6.6% in Q3 FY19.

New Launches and Tie-ups to serve Customers better• Launched three branches : Thrissur (Kerala), Kanpur (UP), Warangal (TL) .• Launched two new Deposit variants : Tax saver FD & Pro-Savings Account

• Tax saver fixed deposit (FD) is a type of fixed deposit, by investing in which, customers can get tax deduction under section 80C of the Indian Income Tax Act, 1961.

• Pro-Priority is an exclusive Savings Account which will be offered only for Professionals i.e., Chartered Accountants, Doctors.• Launched Demand Draft and Passbook services across all the bank branches.• Launched Corporate Internet Banking for Current Account customers loaded with features for safe and secure processing of business

transactions that serve customers’ banking needs.• Partnered with Bill Desk for Payment Gateway transactions where Fincare customers can now pay online using ‘Net Banking’ across

1000 merchants.• Tied up with M swipe for Point of Sale Machine & QR Code to enhance Current Account customer experience.


11

Banking products and Network

Snapshot03


Offering value to customers – through Key Asset Products

MicroloansLoan Against Property

Loan Against Gold

Institutional Finance

Two Wheeler Loans

Affordable Housing Loans

Target Customers

Rural women (group

size: 3 to 20) – JLG

lending

Self employed

professionals,

Proprietorship &

Partnership firms,

Private Ltd, salaried

individuals

Micro enterprises,

self-employed in

semi-urban areas

NBFC-MFIs, NBFCs –

MSME, LAP, Vehicle,

Gold

Family members of

existing microloans

customers

Self employed

professionals,

Proprietorship &

Partnership firms,

Pvt. Ltd, salaried

individuals,

Ticket Size₹15,000 – ₹45,000 ₹1.5 Lakh - ₹50 Lakh ₹5,000 - ₹25 Lakh ₹1 Crore – ₹15

Crore

₹20,000 - ₹75,000 ₹1.5 Lakh - ₹25

Lakh

Purpose

Income generation

only

Business expansion,

Asset purchase,

Debt consolidation,

Education, Marriage

Immediate to short

term credit

requirement

On lending to

clients’ borrowers;

Business

requirements

Purchase of new

two-wheeler

vehicle

House purchase,

House

improvement,

House extension

Tenure18-24 months 36-120 months 3 - 24 months 6 months – 3 years 24 - 36 months 36-240 months

Repayment Freq. Monthly Monthly Bullet/ EMI Monthly Monthly Monthly

# of Banking Outlets 407 130 198 2 111 21

# of States/UT 12 States/UT 6 States/UT 13 2 6 States/UT 1 State

# of Customers 19 Lakh+ 10,096 19,021 34 2,082 43

Gross Loan Portfolio ₹3,817 Crore ₹513 Crore ₹152 Crore ₹229 Crore ₹10.25 Crore ₹12.45 Crore

Additional Facilities - Overdraft - - - Balance Transfer

and Top up12


Offering value to customers -through Key Liability Products

Retail & Rural CASA Retail Term Deposits Bulk Term Deposits Digital Savings Account

Recurring Deposits

Target Customers

HNIs, retail mid and

affluent segments,

microloans customers

HNIs, retail mid and

affluent segments,

NRIs

Banks and corporates

looking to park excess

funds, and HNIs

Seekers of easier,

faster & hassle-free

way of doing

transactions for

lifestyle & banking

Retail mid and affluent

segments

Interest Rate

6% for up to ₹1L

balance; 7% for above

₹1L

Up to 9%; additional

0.5% for senior citizens

6% for up to ₹1L

balance; 7% for above ₹1L

Up to 9%

Ticket Size

Zero Balance – ₹1L

(Based on the

product)

₹5,000 to < ₹2 Crore >=₹2 Crore Zero Balance₹500 per month to < ₹1

Crore

Interest Payment

FrequencyMonthly

Monthly, Quarterly,

Reinvestment

Monthly, Quarterly,

Reinvestment Monthly At maturity

No. of Customers 17.6 Lakhs 46,374 269 52,793 1,570

Card VariantsRupay Classic/

PlatinumNA NA

Rupay Gold &

PlatinumNA

Deposit Book ₹393 Crore ₹2,217 Crore ₹1,415 Crore ₹46 Crore ₹5 Crore

Additional Facilities - Overdraft - Doorstep KYC -

13


Continuously Expanding Distribution Network through various channels to serve more customers

14

Touchpoints

Digital Physical Other

693 Banking Outlets

78 Cash Recyclers/ATMs

– 7 languages

Internet Banking

• Retail Customers – In English

& Hindi

• Corporates

Mobile Banking – 11

languages

Tab Banking – Current A/c, FD,

Microloans, LAP, LAG, Service

Request, Cash Operations,

Fund Transfer, collections

WhatsApp Banking

Doorstep Service – Feet on

Street

Call Center/ IVR – Toll Free

Number - 7 languages


Well Diversified Geographical Presence reaching ~23 lakhs customers

15

693 Banking Outlets

14 States, 2 UTs

174 Districts

• Fincare is present across 174 districts in 14 states & 2 UTs • Currently, there are 693 Banking outlets which includes 202 BC

outlets.• Total customers as on Dec’19 were ~23 lakhs which includes ~4.8

lakhs Asset only customers, ~1.8 liability only customers and ~16.5 both Asset & Liability customers.

• Fincare focuses on penetrating in existing geographies as well extending its presence in new geographies to reach more & more beneficiaries.

Customers (in Lakhs)

Dec’19 Sep’19

Asset only 4.77 6.18

Liability only 1.76 1.31

Asset & Liability 16.5 13.6

Total 22.99 21.05


16

Instrument Rating Rating Agency Type

Term Loans From Bank

CARE A; Stable(Single A; Outlook: Stable)

CARE Ratings

Long Term[ICRA A] (Stable)

(Single A; Outlook: Stable)ICRA

Unsecured Sub-ordinated Debt/ Non-Convertible Debentures

CARE A; Stable(Single A; Outlook: Stable)

CARE Ratings Long Term

Ind A-/ Positive(Single A Minus; Outlook: Positive)

India Ratings Long Term

Fixed Deposit Programme[MA+] (Stable)

(MA+; Outlook: Stable)ICRA Medium Term

Certificate of Deposits Crisil A1+ CRISIL Short Term

FY15 FY16 FY17 FY18 FY19

BBB-/ Stable BBB-/ Positive A-/ Stable A-/ Stable A/ Stable

Long term Credit Rating evolution

Rating of Financial Instruments

Credit Rating


17

CELENT Model Bank

Award 2019

Financial Inclusion – LAP

D.Lite (Apr’2019)

ABP News BFSI Awards

2018

Innovative Initiative in

Rural Sector (Nov’2018)

ABP News BFSI Awards

2018

Bank with best technology

orientation (Nov’2018)

CMO Asia Gujarat Brand

Leadership Awards 2018

Emerging

Brand(Sept’2018)

MFIN Microfinance Awards

2018 – In Pursuit of Excellence

Customer Literacy & Capacity

Building (May’2018)

Awards & Recognition

SKOCH Order-of-Merit 2018 – Top

Ranking Banking and Finance

Projects in India

Capacity Building and Financial

Literacy (Dec’2018)

SKOCH Order-of-Merit 2018 - Top

Ranking Banking and Finance

Projects in India

Technology – LAP D.Lite

(Dec’2018)

World AI Show - BFSI & NBFC

Technology – mCARE

(Sept’2019)

Governance Now - 4th India

Banking Reforms Conclave & BFSI

Awards

Best Digital Bank Award

(May’2019)


18

Assets Snapshot04


Asset Highlights

19

Key Assets Highlights• Gross Loan Portfolio (GLP) grew by 66% YoY to ₹4,746 Crore in Dec’19 against ₹2,855 Crore on Dec’18.• 95% of Portfolio consist of On-Book Advances. • 19.6% of the total Gross Loan book is Secured Book.

Microfinance• GLP grew by 62% YoY in Dec’19 with the presence in ~38,000 villages across India.• Collection efficiency stands strong at 99.75%.• Average ticket size is ₹29,774.

Secured Business Portfolio• Secured Business Portfolio increased to 19.6% in Dec’19 from 17.5% in Dec’18.• Loan Against Gold – experienced a 142% YoY growth – consistent growth, despite short tenures.• Institutional Finance – grew by 59% YoY, GLP as on December’19 at ₹ 229 Crore.

• Loan Against Property – showed a 90% YoY growth, GLP as on December’19 at ₹ 513 Crore.• 2-wheeler loans - launched in January 2019; GLP as on December’19 at ₹ 12 Crore.• Affordable Housing loans - launched in April 2019; GLP as on December’19 at ₹ 10.3 Crore.

Asset Quality• GNPA improved to 1.3% as on Dec’19 from 1.8% in Dec’18, NNPA stands at 0.5% as on Dec’19.

Disbursements• Disbursements grew significantly by 205% to ₹1,246 Crore in Q3FY20 from ₹408 Crore in Q3FY19.


Consistent Loan growth seen across all products

20

73% 79% 84% 88% 95%

27% 21% 16% 12% 5%

Dec'18 Mar'19 Jun'19 Sep'19 Dec'19

On-Book Off-Book

2,855 3,530 4,3473,853 4,746

GLP Mix (₹ Crore)

2,3562,839

3,1203,528

3,817


66%

62%Microloans (₹ Crore) 90%

270335

379

446

513


LAP (₹ Crore)

63

89

109

137152


YoY%

LAG (₹ Crore) 142%

144

257228 214 229


IF (₹ Crore)

59%

18% 20% 19% 19% 20%

83% 80% 81% 81% 80%


Secured Unsecured

Assets Mix

ATS: ₹ 29,774 ATS: ₹ 5.48 lakhs

ATS: ₹ 83,583


Consistently stable and improving asset quality

21

Asset Quality Product wise GNPA

Note: LAP GNPA does not include Rural LAP

1.8%

1.3% 1.3%1.2%

1.3%

0.4% 0.3%0.5% 0.4% 0.5%


GNPA NNPA

2.0%

1.3%1.2%

1.0% 1.1%

2.1%2.1%

3.4%

3.0%

3.1%

0.3% 0.3% 0.3%

0.5%0.6%


MFI LAP LAG

Provision Coverage Ratio

80.7%73.7%

61.7% 63.5% 63.4%



22

GNPA movement and Credit Cost Impact on P&L

Movement of GNPA(All figures in ₹ Crore)

Dec’19 Sep’19 Jun’19 Mar’19 Dec’18

(a) Opening balance 45.57 42.39 35.89 37.79 32.94

(b) Additions during the year 26.00 20.51 23.06 13.93 7.14

(c) Reductions during the year 14.97 17.32 16.56 15.83 2.29

(d) Closing balance 56.60 45.57 42.39 35.89 37.79

Credit Cost: Net Impact on P&L(All figures in ₹ Crore)

Q3FY20 Q2FY20 Q1FY20 Q4FY19 Q3FY19

Provision on NPA 7.17 2.64 -0.14 -3.31 5.00

Write-off 5.46 7.52 8.38 10.18 0.02

Less: Bad Debt Recovery 0.48 0.32 0.46 0.91 1.08

Credit Cost – Net impact on P&L 12.15 9.83 7.79 5.97 3.94


23

Liabilities and Treasury Snapshot05


Liabilities Highlights

24

Key Liabilities Highlights• Deposit base increased to ₹4,076 Crore in Dec’19 compared to ₹1,432 Crore in Dec’18 registering a Y-o-Y growth of 185%.

Focus on making Deposits more granular• Retail to Total Deposits ratio increased to 65% in Dec’19 against 49% in Dec’18.• CASA Ratio improved to 10.8% in Dec’19 against 8.7% in Dec’18.

Stable Bulk Deposits• Tenure of nearly 90% of total Bulk FD accounts is greater than 12 months leading to a stable non-retail deposit base. • ~95% of total Bulk Deposits are non-callable in nature.

Savings Accounts• More than 18 Lakhs Savings Account were opened by December’2019 to strengthen Financial Inclusion in India.• Average Balance:

• Savings Account (Retail banking customers)- ₹ 19,219 • Current Account - ₹37,189 and, • Fixed Deposits - ₹ 3.3 lakh

Well Diversified Deposits• Deposits are diversified across states with top concentration in Gujarat, Karnataka, Kerala, Maharashtra and Rajasthan.


Making Deposits more granular and thus, stable

25

Deposits Profile

Notes: Total Deposits for Sep’19 are exclusive of CDs.

8.7% 11.0% 8.6% 9.4% 10.8%

40%46% 43% 44%

54%

51%44% 48% 46%

35%

49%

56%

52%54%

65%


CASA % Retail TD Bulk TD Retail to Total Deposits

₹1,432 Cr ₹2,043 Cr ₹2,699 Cr ₹3,715 Cr ₹4,076 Cr

As of Dec’19 SA CA Retail TDCASA + Retail TD

Balance ₹ Crore 431 8 2,222 2,661

No. of Accounts 18,14,242 2,148 67,006 18,83,396

Average Balance

(In ₹)

2,377 37,189 3,31,576 14,128

Average Balance


Liabilities Profile

26

• Deposits constituted 77% of the Total Liabilities as on Dec’19, vs. 61% as on Dec’18.• Raised ₹100 Crore of Tier II capital during 9MFY20 to strengthen CAR.• Grandfathered loans declined to 2% in Dec’19 from 10% in Dec’18.

2,363

3,3263,971

5,0605,521


134%

Total Liabilities (₹ Cr)

10% 5% 5% 4% 2%

25% 30% 25% 19% 17%

4% 3%3%

4% 4%

61% 61% 68% 73% 77%


Grandfathered Loans Refinance Tier II Deposits

Liabilities Mix (%)

Diversified Funding Profile – Deposits constitute ~77% of the total Liabilities


Cost of Funds & Treasury Update

27

• Cost of Funds (CoF) declined to 9% in Q3 FY20 from 9.5% in Q3 FY19 due to granularization of deposits.

• Incremental CoF declined to 7.5 % in Q3 FY20 from 8.3% in Q3 FY19.• Total SLR on Dec’19 stands at ₹ 1484 Crore as against the requirement of ₹ 781 Crore. • Well managed ALM - all buckets of Asset Liability within Regulatory and Board determined limits.• Maintained healthy average Liquidity Coverage Ratio (LCR) of 262.6% during Q3FY20, consistently above regulatory

requirement of 80% for SFBs.

9.5%

9.0%

9.2%

9.0% 9.0%

9.5%

9.0%

Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 9MFY19 9MFY20

Average Cost of Funds Incremental Cost of Funds

8.3% 8.8%8.2% 8.4%

7.5%8.5% 8.1%

Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 9MFY19 9MFY20

Treasury Updates


28

Digital Banking Snapshot06


Fincare : Truly a Digital Bank with more than 98% paperless onboarding of customers

29

Digital Onboarding of Customer Accounts Debit Card Transactions

• Value of Debit card transactions increased to ₹ 975 Crore in Q3 FY20 from ₹ 286 Crore in Q3 FY19 registering growth of 241%.

• Volume of Debit transactions grew by 233% to 20 lakhs in

Q3FY20 from 6 lakhs in Q3FY19.

• Since the commencement of banking operations, the bank has a deep digital focus and been using tab-based solutions across all retail businesses.

• Paperless onboarding of both, Liabilities & Asset accounts,

has been more than 97% since last 5 quarters.

97%

98%

97%

98% 98%

97%

98% 98% 98% 98%

Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20

Asset Accounts Liability Accounts

286

827 831980 975

6

1516

20 20


Value of Transaction (₹ Cr) Volume of Transactions (Lakhs)


Mobile Banking, Internet Banking & UPI Transaction continues to rise multifold

30

Mobile & Internet Banking Transactions

• Since the launch of UPI in July’19, UPI transactions reached 4.9 lakhs with a value of ₹ 42 Crore in Q3 FY20.

• UPI Transactions grew by 231% in volume & 169% in value in Q3FY20 with respect to Q2FY20.

• Total Mobile Banking (MB) & Internet Banking (IB) transactions initiated by the customers stands at 1.6 lakhs and value of such transactions is at ₹ 392 Crore as on Q3FY20.

• MB & IB transactions grew by 121% & 162% in value & volume respectively in Q3FY20 compared to Q3FY19.

149 177206

283

392

0.7

0.91

1.1

1.6


Value of Transactions (₹ Cr) Volume of Transactions (Lakhs)

UPI Transactions

16

42

1.5

4.9

Q2 FY20 Q3 FY20

Value of Transactions (₹ Cr) Volume of Transactions (Lakhs)


101 – Digital Saving Account & WhatsApp Banking Updates

31

• “Fincare’s 101” is Digital Savings Account by the bank with instant account opening which also gives instant access to Internet Banking and Mobile Banking.

• Fincare also provides doorstep KYC verification for 101 account.

• More than 60,000 101 Savings accounts have been opened by Dec’19 with total balance of ₹ 46 Crore.

• Average Balance on Dec’19 stands at ₹ 7,253.

101 : Digital Saving Account

• WhatsApp Banking offers services like- Balance Enquiry, Mini Statement, Open 101 Account, Product Information, Cheque book Request, Stop Cheque payment Request, Debit Card blocking Request, etc.

• Total Unique users in Dec’19 were ~5,794 with total 2,07,683 sessions i.e. 36 sessions per user.

• Out of total unique users, ~96% were Fincare customers.

35,74241,593 41,151

52,793

3437

41

46

Sep'19 Oct'19 Nov'19 Dec'19

Total Customers Total Balance (₹ Cr)

WhatsApp Banking

5,063 38,622

2,07,6831,498

2,999

5,794

Oct'19 Nov'19 Dec'19

Total Sessions Unique Users


Implementing Extended Capabilities of Kaizala across employees

32

• Kaizala, a secure employee communication and productivity tool, was rolled out during the year.• Kaizala action cards have been implemented for different field activities: password resets, collection visits, DSR reports, audits,

UPI Collection, helpdesk, branch controls, leaderboard tracking amongst several others.• Cross sell app (automated login), Field Audit application, RUB LUC application have been implemented through Kaizala. • Kaizala is used to digitise various field processes without any development effort – this has in turn contributed in reducing manual

process friction for the field staff, conducting trainings and quizzes, also gives us great visibility on the activities of the field staff (all leading to better customer experience).

Implementation of Extended Capabilities of Kaizala to enhance Customer Delight


33

Other updates – Q3/ 9M FY2007


Events at Fincare (1/2)

• Grand Master Viswanathan Anand, Fincare’s brand ambassador, visited Fincare HO where he met all the employees.• Employees got an opportunity to cross swords with him on a chess board.• Mind Master : Winning Lessons from a Champion’s Life, autobiography of GM Vishwanathan Anand was launched at an event held in

Mumbai on Nov’2019.

Employee meet with Grand Master Viswanathan Anand


Events at Fincare (2/2)

• Fincare SFB keeps organizing physical activities like Marathon, Sports Tournament to enhance team bonding among employees andgive focus on their physical health, as well.

• 350+ employees participated in marathon events organized at Goa, Coorg and Singapore.• Annual Cricket Tournament was organized by the Bank for all its employees across all zones at various locations in the South & West.

Health, Team Bonding & Fun : All in One


Fincare in the media

36


37

Financial Statements & Key Ratios08


Profit & Loss Statement

38

In ₹ Crore Q3FY20 Q2FY20QoQ

GrowthQ3FY19

YoY Growth

9MFY20 9MFY199M YoY Growth

Income

Interest Earned 291.7 253.4 15% 154.3 89% 767.2 429.9 78%

Interest Expended 124.6 110.5 13% 58.3 114% 323.9 164.7 97%

Net Interest Income 167.2 142.8 17% 96.0 74% 443.3 265.2 67%

Other Income 32.7 28.5 15% 8.7 275% 82.9 41.5 100%

Total Net Income 199.8 171.3 17% 104.7 91% 526.2 306.7 72%

Expenses

Employee Expenses 64.3 65.4 -2% 44.7 44% 187.1 128.8 45%

Other Costs 35.3 36.0 -2% 23.6 50% 100.9 64.0 58%

Depreciation 4.4 4.1 8% 3.2 38% 11.7 7.9 48%

Provisions & Write-offs 11.3 13.1 -14% 6.7 68% 34.7 35.7 -3%

Total Expenses 115.3 118.6 -3% 78.2 47% 334.5 236.4 41%

Profit Before Tax 84.5 52.7 60% 26.5 219% 191.7 70.3 173%

Tax Expenses 24.6 15.3 - 0.2 - 55.9 1.6 -

Profit After Tax 59.9 37.4 60% 26.3 126% 135.8 68.7 143%


Balance sheet : Total Assets grew 109% YoY

39

In ₹ Crore 31st December 2019 30th September 2019 QoQ Growth 31st December 2018 YoY Growth

Liabilities

Capital 64 56 13% 53 20%

Reserves & Surplus 832 686 21% 493 69%

Deposits 4,076 3,715 10% 1,432 185%

Borrowings 1,445 1,310 10% 931 55%

Others 211 162 30% 262 -20%

Total Liabilities 6,628 5,929 12% 3,171 109%

Assets

Cash and Cash equivalent

1,168 1,173 0% 441 165%

Investments 799 782 2% 464 72%

Advances 4,481 3,785 18% 2,067 117%

Fixed Assets 39 38 1% 29 34%

Other Assets 141 151 -7% 171 -17%

Total Assets 6,628 5,929 12% 3,171 109%


Key Ratios

40

Cost-to-Income Ratio Opex-to-Business Ratio

68.3%64.1%

58.2%61.6%

52.1%

65.6%

57.0%

FY19-Q3 FY19-Q4 FY20-Q1 FY20-Q2 FY20-Q3 FY19-9M FY20-9M

Cost to Income Ratio (%)

6.6%7.3%

6.0% 5.7%5.0%

7.0%

5.4%


Opex to Business Ratio (%)

2.9% 3.3% 3.1% 2.5% 3.6% 2.8% 3.1%

19.7%22.8% 22.6%

20.6%

30.1%

22.0%24.6%


RoA RoE

Profitability MetricsNet Interest Margin

10.7%10.9%

10.6%

9.7%

10.2%

11.1%

10.1%


NIM (%)


41

Board & Management Team09


42

Sameer NanavatiDirector

Pramod KabraChairman

Rajeev YadavManaging Director

Susan ThomasIndependent Director

Vinay BaijalIndependent Director

Varun SabhlokIndependent Director

Sunil GulatiIndependent Director

Alok PrasadIndependent Director

Partner, True North MD & CEO, Fincare SFB Founder, Disha Microfin

Former CEO, MFIN Former CRO, RBL Bank,

Yes Bank

Faculty at IGIDR; Economist

Formerly, Citibank, PayPal Sr. Advisor, KPMGFormer CGM, RBI

SFB Board composed of industry stalwarts and veterans with rich experience in banking, financial inclusion, rural economy and regulatory matters

Ravindran A. L.Nominee Director

General Manager, SIDBI

Fincare SFB – Board of Directors


43

Rajeev YadavManaging Director &

Chief Executive Officer

Last Org: GE MoneyExperience: 25 years

Ashish MisraChief Operating

Officer,

Retail Banking

Last Org: IndusInd BankExperience: 22 years

Soham ShuklaChief Operating Officer,

Rural Banking

Co-Founder: Disha Microfin

Last Org: MoneyMitraExperience: 26 years

Deepabh JainChief Operating Officer,

Mortgages & IF

Last Org: IFCExperience: 27 years

Kishore MangalvedheChief Operating Officer,

Rural Banking – South

Last Org: L&T FinanceExperience: 33 years

Suresh KrishnamurthyChief Operating Officer,

Retail Banking - South

Last Org: HDFC BankExp: 26 years

Ravish ChandraChief Operating Officer,

Rural Banking - West

Last Org: Kotak Mahindra BankExp: 19 years

Dr. Ashish ChhabraChief Operating Officer,

Retail Banking - West

Last Org: Indusind bankExp: 21 years

Virender SharmaHead – Alternate Channels,

Rural Banking

Last Org: Swadhaar FinserveExp: 20 years

Fincare SFB – Business Management Team

Nilesh SangoiChief Digital Officer & Head –

Data Analytics

Last Org: MerucabsExperience: 22 years


44

Chandar RaoChief Technology Officer

Last Org: FINOExperience: 24 years

Keyur DoshiChief Financial Officer,

Co-Founder – Disha Microfin


Pankaj GulatiChief People Officer

Last Org: MetlifeExperience: 24 years

Devika Praveen Head - Compliance

Last Org: Kotak

Mahindra Bank LtdExperience: 25 years

Rakesh DasHead – Credit

Last Org: IFMR CapitalExperience: 18 years

Venkata JayaramanChief Risk Officer

Last Org: ING-Kotak Bank

Experience: 33 years

Rajeev YadavManaging Director &

Chief Executive Officer

Last Org: GE MoneyExperience: 25 years

Mahender ChawlaChief Operating Officer,

Operations & Gold Loans


Sandeep BhallaHead – CEO Office

Last Org: AltisourceExperience: 30 years

Shashi Kumar R.Head – IT Projects

Last Org: Samhita MicrofinanceExperience: 19 years

Fincare SFB – Functional Management Team

Prakash SundaramChief Strategy Officer

Last Org: CommonwealthExperience: 25 years


45

Thank You!

In case of any queries, please contact:-

Mr. Keyur Doshi, CFO

Board Line: 080 4250 4444

E-mail Id: [email protected]


46

Loans Against Gold

Loans Against Property

Microloans

Institutional Finance

Life Insurance – group Credit

life, retail (KLI, ETLI)

Health Insurance – group,

retail (Religare Health)

ASSET PRODUCTS OTHER PRODUCTS

Affordable Housing

Finance

Payments – NEFT, RTGS,

IMPS, NACH, Bill Pay, E-

commerce payments, UPI

Two-wheeler Loans

Debit Cards

Lockers

Fixed Deposits –

Regular, NR

Savings Accounts –

Regular & Digital

Current Accounts

Recurring Deposits

LIABILITY PRODUCTS

Overdraft

Comprehensive product portfolio to serve needs of diverse customer segments


47

Core of the Bank : Strong Technology and Digital Orientation

• SmartBank :Tab Banking for

account opening, funds

transfer, bill payments,

service requests, account

changes & LAG origination

• m-Care : Microloans loan

origination and savings

account opening

• D.Lite: LAP, 2W, RLAP and

AHF origination

• m-Collect :Application for

microfinance collections

• FRMS : Mobile based fraud

risk management

application

• Cross Sell Application

• Internet Banking

• Mobile Banking

• Customer

communication

channels

➢Responsive

website

➢Live chat for 101

accounts

➢WhatsApp

banking

• NEFT

• RTGS

• IMPS

• Debit Cards

• Bill Pay

• NACH

• E-Commerce Payments

• UPI

Customer self-service through digital

channels

Tab banking solutions for front line staff

Full Payments stack Instant Delight Automation

• Algorithm based credit

decisioning

• Aadhaar based e-KYC

• Instant Account

Opening for non e-KYC

customers

• Real-time Integration

with credit bureau

• Instant KYC validation

for PAN, Voter ID, E-mail

ID

• B& Analytics platform –

Nanobi & Data lake

• Kaizala – employee

communication and

productivity tool

• Tools such as Cermo+,

KMT+, IC+, Dess,

Helpdesk

• HRMS mobile app

• Employee biometric

attendance


Disclaimer

48

This presentation has been prepared by Fincare Small Finance Bank Ltd. (the “Bank”) solely for information purposes, without regard of any specific objectives, financial situations informational needs of any particular person. All information contained has been prepared solely by the Bank. No information contained herein has been independently verified by anyone else. This presentation may not be copied, distributed, redistributed disseminated, directly indirectly, in any manner.

This presentation does not constitute offer or invitation, directly or indirectly, to purchase or subscribe for any securities of the Bank by any person in any jurisdiction, including India and the United States. No part of it should form the basis of be relied upon in connection with any investment decision any contract commitment to purchase or subscribe for any securities. Any person placing reliance on the information contained in this presentation or any other communication by the Bank does so at his or her own risk and the Bank shall not be liable for any loss or damage caused pursuant to any act or omission based on fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Further, past performance is not necessarily indicative of future results.

This presentation is not a complete description of the Bank. This presentation may contain statements that constitute forward-looking statements. All forward-looking statements are subject to risk, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Important factors that could cause actual results to differ materially include, among others, future changes or developments in the Bank’s business, its competitive environment and political, economic, legal and social conditions. Given these risks, uncertainties and other factors, viewers of this presentation are contained not to place undue reliance on these forward-looking statements. The Bank disclaims any obligation to update these forward-looking statements to reflect future events or developments.

Except as otherwise noted, all of the information contained herein is indicative and is based on management information, current plans and estimates in the form as it has been disclosed in this presentation. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The Bank may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. The accuracy of this presentation is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Bank.

This presentation is not intended to be an offer document or a prospectus, a statement in lieu of a prospectus, an offering circular or an advertisement under the Companies Act, 2013 and Rules made thereafter, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended by any other applicable law.

Figures for the previous period/ year have been regrouped wherever necessary to confirm to the current period’s/ year’s presentation. Total in some columns/ rows may not agree due to rounding off.

Note: All financial numbers in the presentation are from Audited Financials or Limited Reviewed financials or based Management estimates.


Key Definitions

49

Net Interest Margin As a % of Average Interest Earning Assets

Secured Book Computed on Total Gross Loan Portfolio

RoA Computed on monthly average of Interest earning Assets

RoE Computed on monthly average of Net worth

Non-Interest Income Includes Processing Fees and Other Income

Opex/Business Computed on Total Advances + Total Deposits

Cost to Income Opex/ (Net Interest Income + and Other Income)

Credit to Deposit Ratio On-Book Advances/Total Deposits


Glossary

50

BI Business Intelligence IF Institutional Finance

CAGR Compounded Annual Growth Rate MFIs Micro Finance Institutions

CASA Current Account deposit and Savings Account MSMEs Micro, Small and Medium Enterprises

CRAR Capital Adequacy Ratio NACH National Automated Clearing House

CBS Core Banking System NBFC Non Banking Finance Companies

EMI Equated Monthly Instalment NEFT National Electronic Funds Transfer

ETLI Edelweiss Tokio Life Insurance Company NIM Net Interest Margin

FBSL Fincare Business Services Limited NPA Non Performing Advances

FFSPL Future Financial Servicess Pvt. Ltd. NRI Non-Resident Indian

FRMS Fraud Risk Management System Opex Operating Expenses

HNIs High Net worth Individuals ODFD Overdraft Against Fixed Deposit

IBPC Inter Bank Participation Certificate PCR Provision Coverage Ratio

IFAPL India Finserve Advisors Private Limited Q-o-Q Quarter on Quarter

IMPS Immediate Payment Service RoA Return on Assets

IVFA India Value Fund Advisors RoE Return on Equity

IVR Interactive Voice Response RTGS Real Time Gross Settlement

KYC Know Your Customer SFB Small Finance Bank

KLI Kotak Mahindra Life Insurance Company SLR Statutory Liquidity Ratio

LCR Liquidity Coverage Ratio UT Union Territory

LAG Loan Against Gold UPI Unified Payment Interface

LAP Loan Against Property Y-o-Y Year on Year

LAF Liquidity Adjustment Facility

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Investor Presentation - Fincare Bank · 2020. 7. 28. · •Rights issue at FBSL and FSFB by...

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