fy19/ q4 fy19...microfinance customers interest rate 6% for up to 1l balance; 7% for above 1l avg....

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




Assets Snapshot04


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




Assets Snapshot04



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


# 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


# 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


# 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




Assets Snapshot04



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


Microloans 56%

ATS: ₹28,908

138178

223274

342


LAP 148%

ATS: ₹6.08 Lakh

YoY

Growth

Legend:

2032

46

63

89


LAG 341%

ATS: ₹68,822

160 137168 144

257


IF60%

15% 14% 15% 17% 20%

85% 86% 85% 83% 80%


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%


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%


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%


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




Assets Snapshot04



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


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%


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%


*Note: Incremental Cost of Funds are inclusive of both off-book and on-book.

© 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

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%


Cost to Income Ratio (%)

8.9%7.6%

6.8% 6.6% 7.2%

9.6%

7.0%


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%


RoA RoE

Profitability MetricsNet Interest Margin

10.5%

11.0%10.7% 10.7% 10.7%

9.9%

10.8%


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

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

fy19/ q4 fy19...microfinance customers interest rate 6% for up to 1l balance; 7% for above 1l avg....

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