fy19/ q4 fy19...microfinance customers interest rate 6% for up to 1l balance; 7% for above 1l avg....
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Investor PresentationFY19/ Q4 FY19
© 2019 Fincare SFB
Table of contents
2
Fincare Platform Evolution01
FY19/Q4 FY19 Highlights02
Banking Products and Network Snapshot03
Assets Snapshot04
Liabilities and Treasury Snapshot05
Other Updates for FY19/ Q4 FY1906
Financials07
© 2019 Fincare SFB
Fincare Platform Evolution
3
• Commencement of microfinance operations of Disha by Mr. Nanavati, Mr. Shukla, Mr. Doshi and Mr. Kothari in Gujarat
• ~23% of FFSPL's assets impacted by AP crisis and bank debts restructured
• FFSPL recorded significant provisions against AP loan book
• Disha Microfinreceived in-principle license from RBI to establish Small Finance Bank
• LAG, IF launched
• Restructuring; new investors at FBSL
• Conversion of Disha Microfin to Fincare SFB
• Commencement of operations
• Rights issue at FBSL and FSFB by existing share holders for growth capital
• Slump sale of FFSPL business with Disha
• Fincare Business Services (FBSL) established as an integrated BoPplatform
• Micro Enterprise Loans introduced
• Lok Management Services established to start the Business Correspondence business of the Group
• 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
• Consolidation
• Setup of Tech Systems
2007 2010 2012 2014
2009 2011 2013 2015
2016
2017
2018
Note: IFAPL and FFSPL have been
merged with FBSL, effective Oct 2016
• Crossed GLP of `3,000 Crore, deposits of `2,000
Crore
• Customer base of over 15 lakh
• Rights issue at FSFB
• Affordable housing & 2-w loans launched
2019
© 2019 Fincare SFB
Table of contents
4
Fincare Platform Evolution01
FY19/Q4 FY19 Highlights02
Banking Products and Network Snapshot03
Assets Snapshot04
Liabilities and Treasury Snapshot05
Other Updates for FY19/ Q4 FY19 06
Financials07
© 2019 Fincare SFB
Key Q4 FY19| FY19 Highlights
5
Total Income
204 | 676(114 | 351) (80% | 92%)
Profit After Tax
33 | 102(NA | NA) (NA | NA)
P&L Highlights
Business Highlights
Gross Loan Portfolio
3,528
(2,135) (65%)
Disbursements
1,252 | 3,238(845 | 2,072) (48% | 56%)
Deposits
2,043(727) (+181%)
Net Worth
666
(338) (+97%)
Operational Highlights
# States & UT
12 States; 1 UT
# Banking Outlets
569
# Employees
5,498
# Customers
~15.5 lakh
Legend:
Q4 FY19 | FY19
(Q4 FY18 | FY18) (YoY Growth)
# Districts
144
In ₹ Crore
In ₹ Crore
Net Interest Income
109| 375(62 | 196) (77% | 91%)
*NA represents negative PAT for the year on account of de-monetization related losses
© 2019 Fincare SFB
Key Q4 FY19/ FY19 Ratios
6
ROA
3.3% | 2.9%
NA | NA
Non-Interest Income
13.2% | 10.1%
10.5% | 9.4%
PCR
73.7%
23.5%
Opex/ Business
7.2% | 7.0%
8.9% | 9.6%
GNPA / NNPA
1.3% / 0.3%
1.1% / 0.8%
ROE
22.8% | 22.0%
NA | NA
Cost to Income
63.8% | 64.9%
76.7% | 76.6%
Credit to Deposit Ratio
136%
222%
Legend:
FY19
FY18
Cost of Funds
9.2% | 9.4%
9.6% | 10.1%
NIM
10.7% | 10.8%
10.5% | 9.9%
Deposits / Net-Advances
74%
46%
*NA represents negative RoA and RoE for the quarter on account of de-monetization related losses
CRAR
23.6%
23.3%
Tier I CRAR
21.5%
21.8%
CASA %
11.0%
5.1%
Retail Share of Deposits
56.5%
23.2%
Legend:
Q4 FY19 |FY19
Q4 FY18 | FY18
Balance Sheet RatiosProfit & Loss Ratios
Secured Book
19.5%
14.9%
© 2019 Fincare SFB
FY19 Performance Summary (1/2)
7
Performance Highlights
• Gross loan portfolio as on March 31, 2019 is at ₹3,528 Crore, growth of 65% YoY.
• Secured loan portfolio at 20% of the overall GLP as on March 31, 2019, up from 15% a year ago.
• Efforts during the financial year to reduce reliance on bulk deposits - share of retail deposits significantly improved to 56.5% as on
March 31, 2019, up from 23.2% the previous year.
• Total Income at ₹204 Crore in Q4 FY19, up 80% from Q4 FY18; ₹676 Crore in FY19, up 92% from FY18.
• Net Interest Income at ₹109 Crore in Q4 FY19, up 77% YoY; ₹375 Crore during FY19, up 91% from FY18.
• A well capitalized Bank - CRAR at 23.6% as on March 31, 2019 with Tier-I capital at 21.5%. Closing networth of ₹666 Crore.
• Improvement in NIM at 10.8% during FY19, up from 9.9% during FY18 on account of gains of assignment and increase in income from
operations during the year.
• Improvement in average cost of funds to 9.2% in Q4 FY19, from 9.5% in Q3FY19 and 9.6% in Q4 FY18, due to increase in share of retail
deposits and reduction in share of grandfathered loans; significant YoY improvement from 10.1% in FY18 to 9.4% in FY19.
• Decrease in GNPA from the previous quarter, at 1.3 % as on March 31, 2019 vs 1.8% as on December 31, 2018; marginal improvement in
NNPA from 0.4% in the previous quarter to 0.3% as on March 31, 2019, and from 0.8% as on March 31, 2018.
• Improvement in Cost to Income ratio at 63.8% in Q4 FY19 from 76.7% in Q4 FY18 and 64.9% in FY19 from 76.6% in FY18 due to
improvement in operational efficiencies.
• Healthy profitability indicators – Highest ever PAT at ₹102 Crore in FY19. RoA at 2.9% and RoE at 22% in FY19.
• Healthy liquidity maintained during the year with consistently high LCR and well managed ALM.
© 2019 Fincare SFB
FY19 Performance Summary (2/2)
8
Product Launches
• Recurring deposits accounts launched during the quarter.
• 2 wheeler loans successfully launched during the quarter with a closing AUM of ₹85 Lakhs, currently disbursing in 2 states.
Operational Highlights
• Banking outlets network expanded to 569 outlets during the quarter (addition of 37 outlets).
• Banking outlets added in Hyderabad (Telangana), Vijayawada (Andhra Pradesh) and Noida (Uttar Pradesh) during the quarter.
Equity Raise
• ~ ₹85 Crore of equity share capital infused during the quarter from the existing shareholders of the Bank.
© 2019 Fincare SFB
9
Fincare Platform Evolution01
FY19/Q4 FY19 Highlights02
Banking Products and Network Snapshot03
Assets Snapshot04
Liabilities and Treasury Snapshot05
Other Updates for FY19/ Q4 FY19 06
Financials07
Table of contents
© 2019 Fincare SFB
Our Banking Product Suite
10Superior Rates. Simplicity. Flexibility. Need Based.
Loans Against Gold
Loans Against Property
Microloans
Institutional Finance
Fixed Deposits –
Regular, Non-Resident
Savings Accounts –
Regular & Digital
Current Accounts
Recurring Deposits
Life Insurance – group Credit
life, retail
Health Insurance – group,
retail
LIABILITY PRODUCTS ASSET PRODUCTS OTHER PRODUCTS
Affordable Housing
Finance
*Planned for launch
Payments – NEFT, RTGS,
IMPS, NACH, Bill Pay, UPI*
Two-wheeler Loans
Overdraft Debit Cards
Lockers
© 2019 Fincare SFB
Asset Products (1/2)
11
Target Customers Rural women (group size: 3 to 20) – JLG lending
Ticket Size ₹15,000 – ₹45,000
Purpose Income generation only
Tenure 2 years
Repayment Freq. Monthly
# of Outlets 351
# of States 8 States; 1 UT
# of Customers 15 Lakh+
Gross Loan Portfolio ₹2,839.5 Crore
Microloans1 Loan Against Property
Target CustomersSelf employed professionals, Proprietorship & Partnership firms,
Private Ltd, salaried individuals
Ticket Size ₹1.5-₹50 lakhs
PurposeBusiness expansion, Asset purchase, Debt consolidation,
Education, Marriage
Tenure 36-120 months
Repayment Freq. Monthly
# of Outlets 108
# of States/UT 6 states/UT
# of Customers 7,023
Gross Loan Portfolio ₹342 Crore
Additional Facilities Overdraft
2
Loan Against Gold3
Target Customers Micro enterprises, self-employed in semi-urban areas
Ticket Size ₹5,000 to ₹25 Lakhs
Purpose Immediate short term credit requirement
Tenure 6 months to 24 months
Repayment Freq. Bullet/ EMI
# of customers 12,616 active
# of Outlets 147
Gross Loan Portfolio ₹88.9 Crore
© 2019 Fincare SFB
Asset Products (2/2)
12
Target Customers Family members of existing microloans customers
Ticket Size Up to ₹75,000
Purpose Purchase of new two wheeler vehicle
Tenure 24 - 36 months
Repayment Freq. Monthly
# of Outlets 45
# of States 2 States
# of Customers 160
Gross Loan Portfolio ₹85 Lakh
Two Wheeler Loans5
Institutional Finance4
Target Customers NBFC-MFIs, NBFCs, MSMEs, LAP/ Vehicle finance companies
Ticket Size ₹1 Crore – ₹15 Crore
Purpose Onward lending to clients’ borrowers; Business requirements
Tenure 5 months – 3 years
Repayment Freq. Monthly
# of Customers 31
Gross Loan Portfolio ₹256.7 Crore
© 2019 Fincare SFB
Liability Products
13
Retail & Rural CASA1
Target CustomersHNIs, retail mid and affluent segments,
microfinance customers
Interest Rate 6% for up to ₹1L balance; 7% for above ₹1L
Avg. Monthly Balance Zero Balance – ₹1L (Based on the product)
Interest payment Freq. Monthly
# of Customers 4,86,838
Card Variants Rupay Classic/ Platinum
CASA Book ₹223.7 Crore
Retail Term Deposits2
Target Customers HNIs, retail mid and affluent segments, NRIs
Interest Rate Up to 9%; additional 0.5% for senior citizens
Interest payment
Freq.Monthly, Quarterly, Reinvestment
# of Customers 32,704
Ticket Size ₹5,000 to < ₹2 Crore
Deposit Book ₹929.8 Crore
Additional Facilities Overdraft
Bulk Term Deposits3
Target CustomersBanks and corporates looking to park excess funds and
HNIs
Ticket Size =>₹2 Crore
Tenure 7 days - 3 year
Interest Payment Options Monthly, Quarterly, Reinvestment
# of Active Accounts 192
Deposit Book ₹889 Crore
Digital Accounts - 101 Accounts
• Launched in February 2018
• Targeted at HENRYs (High Earning Not Rich Yet) & Digital savvy mass
retail customers who do digital/branchless banking across India
• 2 variants – 101 First (zero balance) and 101 Priority (AMB of ₹25,000)
Note: The bank has launched a new process in April’19 which is in
compliance with the Supreme Court verdict on Aadhaar.
t
Our Banking Network
569 Banking Outlets
12 States, 1 UT
144 Districts Note:-
1) Geographic distribution of Gross Loan Portfolio does
not include Institutional Finance
AP, 1.87%
GJ, 23.76%
KA, 15.37%
MP, 13.10%MH, 4.30%
RJ, 7.95%
TN, 31.21%
Others,
2.43%
Geographic Distribution of Gross Loan
Portfolio
AP GJ KA MP MH RJ TN Others
Others: Haryana, Kerala, NCT of Delhi and Telangana
© 2019 Fincare SFB
Strong Technology and Digital Orientation
15
• Internet banking
• Mobile banking
• Customer
communication
channels-
➢ Responsive
website
➢ Live chat for
101accounts
Customer self-service through digital channels
• SmartBank - Tab Banking for
account opening, funds
transfer, bill payments, service
requests, account changes
• m-Care- Microloans loan
origination and savings
account opening
• D.Lite – 2 wheeler and LAP
origination
• LAG Banking – for LAG
origination
• m-Collect- Application for
microfinance collections
• FRMS - Mobile based fraud risk
management application
Tab banking solutions for front line staff
• NEFT
• RTGS
• IMPS
• Debit Cards
• Bill Pay
• NACH
• E-commerce
Full Payments stack
• Algorithm based
credit decisioning
• Aadhaar based e-
KYC
• Real-time
Integration with
credit bureau
Instant Delight
• BI & Analytics
platform for
decision making
and management
by exception
• HRMS mobile app
• Employee
biometric
attendance
• Helpdesk tool
Employee Productivity tools
© 2019 Fincare SFB
Our Customer Touchpoints
16
PHYSICAL TOUCHPOINTS
569 Banking Outlets
DIGITAL CHANNELS OTHER CHANNELS
Internet and Mobile Banking Doorstep Service – Feet on
Street
Call Center/ IVR – Toll Free
Number; multi-lingual
Tab Banking – savings, FD,
Microloans, LAP, LAG, services71 Cash Recyclers/ ATMs
© 2019 Fincare SFB
Credit Rating
17
Rating of Bank’s Financial Instruments
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
© 2019 Fincare SFB
Awards and Recognition
18
CELENT Model Bank Award 2019
Financial Inclusion – LAP
D.Lite
ABP News BFSI Awards 2018
Innovative Initiative in
Rural Sector
ABP News BFSI Awards 2018
Bank with best
technology orientation
SKOCH Order-of-Merit 2018 –Top Ranking Banking and Finance Projects in India
Capacity Building and
Financial Literacy
SKOCH Order-of-Merit 2018 -Top Ranking Banking and Finance Projects in India
Technology – LAP D.Lite
CMO Asia Gujarat Brand Leadership Awards 2018
Emerging Brand
MFIN Microfinance Awards 2018 – In Pursuit of Excellence
Customer Literacy and
Capacity Building
© 2019 Fincare SFB
19
Fincare Platform Evolution01
FY19/Q4 FY19 Highlights02
Banking Products and Network Snapshot03
Assets Snapshot04
Liabilities and Treasury Snapshot05
Other Updates for FY19/ Q4 FY19 06
Financials07
Table of contents
© 2019 Fincare SFB
Assets Highlights: FY19
20
• Gross Loan Portfolio (GLP), at ₹ 3,528 Crore as on March 31, 2019, a 65% increase over March 31, 2018.
• Strong quarter with disbursements crossing ₹1,000 Crore for the first time, at ₹1,252 Crore in Q4 FY19, a 307% increase over Q3FY19, on account of good demand and comfortable ALM position. Healthy disbursements growth of 56% during FY19 overFY18.
• Microfinance GLP at ₹2,839 Crore as on March, 2019, a 56% increase over March 31, 2018.• Collection Efficiency of microfinance portfolio for Q4 FY19 at 99.7%.
• Growth in secured business portfolio with 19.5% share as on March 31, 2019 vs. 14.9% as on March 31, 2018.• Loan Against Gold - Gross Loan Portfolio of ₹89 Crore, a 341% Y-o-Y growth.• Institutional Finance - Gross Loan Portfolio of ₹257 Crore, a 60% Y-o-Y growth.• Loan Against Property - Gross Loan Portfolio of ₹342 Crore, a 148% Y-o-Y growth.• 2-wheeler loans launched during the quarter and closed with a AUM of ₹86 Lakh.
• Stable asset quality indicators –• Gross NPA as on March 31, 2019 at 1.3%, an increase from 1.1% as on March 31, 2018, and decrease from 1.8% as on
December 31, 2018.• Net NPA as on March 31, 2019 at 0.3% vs. 0.8% as on March 31, 2018 and 0.4% as on December 31, 2018.
© 2019 Fincare SFB
Assets Updates
21
Gross Loan Portfolio – consistent, robust growth across all products
1,614 1,828 2,295 2,0792,784
521693
605 757
7442,135
2,5212,899 2,836
3,528
Mar '18 Jun '18 Sep '18 Dec '18 Mar '19
Total
On-book Off-book
65%
1,8172,174 2,462 2,356
2,839
Mar '18 Jun '18 Sep '18 Dec '18 Mar '19
Microloans 56%
ATS: ₹28,908
138178
223274
342
Mar '18 Jun '18 Sep '18 Dec '18 Mar '19
LAP 148%
ATS: ₹6.08 Lakh
YoY
Growth
Legend:
2032
46
63
89
Mar '18 Jun '18 Sep '18 Dec '18 Mar '19
LAG 341%
ATS: ₹68,822
160 137168 144
257
Mar '18 Jun '18 Sep '18 Dec '18 Mar '19
IF60%
15% 14% 15% 17% 20%
85% 86% 85% 83% 80%
Mar '18 Jun '18 Sep '18 Dec '18 Mar '19
Assets Mix %
Secured UnsecuredAll figures are in ₹ Crore unless otherwise stated
© 2019 Fincare SFB
Asset Quality Indicators
22
Product wise Gross NPAs
Consistently High Provision Coverage
23.5%
71.9% 75.0%80.7%
73.7%
Mar '18 Jun '18 Sep '18 Dec '18 Mar '19
PCR%
• Conservative provisioning policy adopted in FY
19 leading to higher PCR.
Stable asset quality
Note: No NPAs in IF portfolio
1.0%
1.5% 1.5%
2.0%
1.3%
2.9%2.6%
2.4%2.1%
2.1%
0.3% 0.3%
Mar '18 Jun '18 Sep '18 Dec '18 Mar '19
Product wise NPA*%
Microloans LAP LAG
1.1%
1.6%
1.4%
1.8%
1.3%
0.8%
0.4% 0.4% 0.4% 0.3%
Mar '18 Jun '18 Sep '18 Dec '18 Mar '19
NPA*% GNPA NNPA
*NPA formula revised to: Non Performing Assets (including IBPC)/ On-book portfolio (excluding IBPC)From: Non Performing Assets (including IBPC)/ (On-book portfolio + IBPC)
© 2019 Fincare SFB
23
Fincare Platform Evolution01
FY19/Q4 FY19 Highlights02
Banking Products and Network Snapshot03
Assets Snapshot04
Liabilities and Treasury Snapshot05
Other Updates for FY19/ Q4 FY19 06
Financials07
Table of contents
© 2019 Fincare SFB
Liabilities Highlights
24
Deposits
• Deposit base of ₹2,043 Crore as on March 31, 2019, an increase of 181% over March 31, 2018.
• Focus for the year was on increasing retail deposits share –• Retail deposits at 56.5%* of overall deposits as on March 31, 2019, vs. 48.5% as on December 31, 2018, and 23.2% as on
March 31, 2018.
• CASA as a share of deposits improved to 11% as on March 31, 2019, from 8.7% as on December 31, 2018, and 5.1% as onMarch 31, 2018.
• Conscious efforts to reduce reliance on bulk deposits.
• Deposits constituted 74% of net advances as on March 31, 2019 as against 46% as on March 31, 2018.
• Over 7.5 lakh Savings Accounts opened during the FY19 for microloans customers.
• Recurring deposit accounts launched during the quarter.
Third Party Products
• Distribution of retail health insurance products of Religare Health insurance commenced in February 2019.
*Note:- Bulk deposits threshold revised by RBI to ₹2 Crore in Feb’19
© 2019 Fincare SFB
Deposits Highlights
25
Values (%) Q4 FY19 Q3 FY19 Q2 FY19
Cost of Deposits 8.6% 8.8% 8.8%
Retail to Total Deposit#
56.5% 48.5% 34.2%
37 106 79 125 224132239 413
570
930
558
711
948737
889
Mar '18 Jun '18 Sep '18 Dec '18 Mar '19
Deposits Profile
Bulk TD
Retail TD
CASA
727
As of March 31, 2019 CASA Retail FDRetail Deposits
(CASA + FD)
Balance (₹ Crore) 224 930 1154
No. of Accounts 8,16,604 44,498 8,61,102
Average Balance (₹) 2,740* 2,08,953 13,401
Robust growth in Deposits Raised In ₹ Crore
Quarter EndedCASA as a % Customer Deposits
Credit to Total Deposits(%)
Mar 31, 2018 5.1% 222%
Jun 30, 2018 10% 173%
Sep 30, 2018 5.5% 159%
Dec 31, 2018 8.7% 145%
Mar 31, 2019 11.0% 136%
Improving CASA and Credit to Deposit (%) trend
*Note: Average CASA balance for non MFI accounts - ₹19,073
1,056
1,440 1,432
2,043
# As per revised threshold defined by RBI, Retail deposits now include deposits < ₹2Crore
© 2019 Fincare SFB
Liabilities Profile
26
• Deposits constituted 61% of the total liabilities as on March 31, 2019, vs. 40% as on March 31, 2018.
• Refinance lines worth ~ ₹700 Crore raised during FY19 from MUDRA, SIDBI and NABARD.
• Decline in share of Grandfathered loans – 5% as on March 31, 2019 as against 30% as on March 31, 2018.
• During the quarter, ₹388 Crore of funds generated through IBPC transactions.
Diversified funding profile - Deposits constitute ~61% of overall liabilities
40%52%
60% 61% 61%
30%21%
13% 10% 5%
24% 22% 23% 25% 31%
6% 5% 4% 4% 3%
Mar '18 Jun '18 Sep '18 Dec '18 Mar '19
Liabilities*
Deposits Grandfathered Loans Refinance Tier II
Total (₹ Crore) 1,797 2,023 2,384 2,363 3,326
*IBPC, earlier considered on-book, is re-classified as off-book advances, in line with RBI reporting requirements
© 2019 Fincare SFB
Cost of Funds and Treasury Update
27
• Reduction in cost of funds to 9.4% during FY19 from 10.1% in FY18 due to granularization of deposits.
• Increase in incremental cost of funds to 8.8% in Q4 FY19 from 7.6% in Q4 FY18.
• Total SLR investment as on March 31, 2019 at ₹697 Crore (as against requirement of ₹410 Crore).
• Well managed ALM - all buckets of Asset Liability within Regulatory and Board determined limits.
• Maintained healthy average Liquidity Coverage Ratio (LCR) of 338% during Q4 FY19, consistently above regulatory
requirement of 80% for SFBs. LCR as on March 31, 2019 at 674%.
Treasury Update
Incremental Cost of Funds*
7.6%
8.3%8.7%
8.3%
8.8%
8.0%
8.5%
FY18-Q4 FY19-Q1 FY19-Q2 FY19-Q3 FY19-Q4 FY18 FY19
Stable Average Cost of Funds
9.6%9.3%
10.0%
9.5%9.2%
10.1%
9.4%
FY18-Q4 FY19-Q1 FY19-Q2 FY19-Q3 FY19-Q4 FY18 FY19
*Note: Incremental Cost of Funds are inclusive of both off-book and on-book.
© 2019 Fincare SFB
28
Fincare Platform Evolution01
FY19/Q4 FY19 Highlights02
Banking Products and Network Snapshot03
Assets Snapshot04
Liabilities and Treasury Snapshot05
Other Updates for FY19/ Q4 FY19 06
Financials07
Table of contents
© 2019 Fincare SFB
Q4 FY19 Other Updates (1/2)
29
Digital Technology
• Successfully completed bank-wide rollout of new loan booking through Core Banking System (CBS) for microloans – first
amongst SFBs to successfully complete 100% microloans migration into CBS.
• Re-launched 101, the Bank’s Digital Savings Bank Account.
Awards and Recognition
• Fincare SFB was the only SFB and one of the two banks from India to be conferred
with the prestigious Celent Model Bank 2019 Awards in the category of Financial
Inclusion
✓ For LAP D.Lite – Redesigning Lending to Reach Small Businesses.
✓ Celent is the research, advisory, and consulting firm focused on financial services
technology; part of the Oliver Wyman Group.
© 2019 Fincare SFB
Q4 FY19 Other Updates (2/2)
30
In the media
Participated in multiple industry stories, conducted press meets, interacted with media persons to ensure media coverage towards promoting SFBs, Fincare SFB and Fincare products and services as well as branch launches.
© 2019 Fincare SFB
31
Fincare Platform Evolution01
FY19/Q4 FY19 Highlights02
Banking Products and Network Snapshot03
Assets Snapshot04
Liabilities and Treasury Snapshot05
Other Updates for FY19/ Q4 FY19 06
Financials07
Table of contents
© 2019 Fincare SFB
Key Ratios
32*NA represents negative RoA and RoE for the quarter on account of de-monetization related losses
Cost-to-Income Ratio Opex-to-Business Ratio
76.7%64.8% 63.2%
68.3% 63.8%
76.6%64.9%
FY18-Q4 FY19-Q1 FY19-Q2 FY19-Q3 FY19-Q4 FY18 FY19
Cost to Income Ratio (%)
8.9%7.6%
6.8% 6.6% 7.2%
9.6%
7.0%
FY18-Q4 FY19-Q1 FY19-Q2 FY19-Q3 FY19-Q4 FY18 FY19
Opex to Business Ratio (%)
NA 1.5%3.7%
2.9%3.3% NA
2.9%NA
12.6%
31.6%
19.7%22.8%
NA
22.0%
FY18-Q4 FY19-Q1 FY19-Q2 FY19-Q3 FY19-Q4 FY18 FY19
RoA RoE
Profitability MetricsNet Interest Margin
10.5%
11.0%10.7% 10.7% 10.7%
9.9%
10.8%
FY18-Q4 FY19-Q1 FY19-Q2 FY19-Q3 FY19-Q4 FY18 FY19
NIM (%)
© 2019 Fincare SFB
P&L Statement
33
In ₹ Crore Q4 FY19 Q3 FY19 Q-o-Q Q4 FY18 Y-o-Y FY 19 FY 18 Y-o-Y Growth Growth Growth
Income
Interest Earned 177.2 154.3 15% 101.7 74% 603.6 318.1 91%
Interest Expended 67.9 58.3 16% 39.8 70% 232.9 121.7 91%
Net Interest Income 109.3 96.0 14% 61.9 77% 370.7 196.4 91%
Other Income 27.1 8.7 211% 12.0 126% 68.5 33.1 107%
Total Net Income 136.4 104.7 30% 73.9 85% 439.2 229.5 93%
Expenses
Employee Expenses 51.6 44.7 15% 35.6 45% 180.2 119.7 51%
Other Costs 35.4 26.8 32% 21.0 69% 107.3 56.2 91%
Provisions & Write-offs 9.3 6.7 39% 46.2 -80% 45.1 143.5 -69%
Total Expenses 96.3 78.2 23% 102.8 -6% 332.7 319.3 4%
Profit Before Tax 40.1 26.5 51% -29.0 NA 110.3 -89.8 NA
Tax Expenses 6.8 0.2 - - - 8.4 7.7 -9%
Profit After Tax 33.3 26.3 27% -29.0 NA 101.9 -97.5 NA
© 2019 Fincare SFB
Balance Sheet
34
In ₹ Crore 31 March, 2019 31 December ,2018Q-o-Q
Growth31 March, 2018 Y-o-Y Growth
Liabilities
Capital 56 53 6% 37 51%
Reserves & Surplus 610 493 24% 300 103%
Deposits 2,043 1,432 43% 727 181%
Borrowings 1,283 931 38% 1,069 20%
Others 179 262 -32% 140 28%
Total Liabilities 4,171 3,171 32% 2,274 83%
Assets
Cash and Cash equivalent 521 441 18% 252 107%
Investments 701 464 51% 273 157%
Advances 2,765 2,067 34% 1,630 70%
Fixed Assets 33 29 14% 22 48%
Other Assets 152 171 -11% 98 55%
Total Assets 4,171 3,171 32% 2,274 83%
© 2019 Fincare SFB
35
Thank You!
© 2019 Fincare SFB
Disclaimer
36
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.
© 2019 Fincare SFB
Key Definitions
37
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 +Other Income)
Credit to Deposit Ratio On-Book Advances/Total Deposits
© 2019 Fincare SFB
Glossary
38
AUM Asset Under Management NBFC Non Banking Finance Companies
BI Business Intelligence NEFT National Electronic Funds Transfer
CASA Current Account deposit and Savings Account deposit NIM Net Interest Margin
CRAR Capital Adequacy Ratio NPA Non Performing Advances
EMI Equated Monthly Instalment NRI Non-Resident Indian
FBSL Fincare Business Services Limited Opex Operating Expenses
FFSPL Future Financial Servicess Pvt. Ltd. PCR Provision Coverage Ratio
HNIs High Net worth Individuals PSLCs Priority Sector Lending Certificates
IBPC Inter Bank Participation Certificate Q-o-Q Quarter on Quarter
IFAPL India Finserve Advisors Private Limited RoA Return on Assets
IMPS Immediate Payment Service RoE Return on Equity
IVFA India Value Fund Advisors RTGS Real Time Gross Settlement
IVR Interactive Voice Response SFB Small Finance Bank
KYC Know Your Customer SLR Statutory Liquidity Ratio
MFIs Micro Finance Institutions UT Union Territory
MSMEs Micro, Small and Medium Enterprises Y-o-Y Year on Year
NACH National Automated Clearing House
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