Investor & Analyst Meet

BUILDING A MASS
MARKET BANK
JUNE 2023
 AGENDA
Building a mass-market bank: Unique Business model

Liabilities: Stable, Sustainable, Scalable

Micro Lending: Serving fast expanding aspiring customer

base

Affordable Housing: Geared-up for big leap ahead

Credit & Collection: FY23 delivered, steady road ahead

“Hello Ujjivan”: Attracting the new generation with tech

enabled channels

Way Ahead: Sustainable profitable Growth

Building a Mass Market Bank
Unique Business Model
 INTRODUCING UJJIVAN SFB
Differentiated • Focus on under-served customer segments
Business • Long-standing association with customers; more than
Model 2/3rd of asset customers are associated for 3+ years Despite Covid-19, strong foundation
built over the last 3 years
• Successful transition to a small finance bank
Customer base (in mn)
• Upfront investments made in branches, teams,
Successful
technology, human resource over FY17 – FY20 5.3 7.7
Transition to o Built granular retail deposit franchise, significant March’20 March’23
SFB reduction in cost of fund
o Launched secured lending products to deepen
Retail Deposits % of Total deposits
engagement and service life-cycle needs of
clients 45% 66%
Most March’20 March’23
Geographically • Presence in 25 states through 629 branches
Diversified • No single state constitutes >16% of its AUM CASA Ratio
SFB
14% 26%
• Strong finish to FY23: 33% Gross Loan Book growth,
40% deposit growth, 3.9% RoA, 31% RoE March’20 March’23
Strong
Financial • Strong Credit quality: FY23 fresh slippages low at
Performance 1.4%; PCR of 98% (highest in the industry), Net NPA of
0.04%(lowest in the industry), additional floating
provision providing extra cushion to Balance Sheet
 STANDING TALL

₹1,100 cr net profit: Among most profitable domestic companies

₹24,000+ cr Gross Loan Book

₹20,000+ cr disbursement in FY23

₹25,000+ cr deposits; ₹10,000+ cr retail TDs; ₹6,700+ cr CASA

Yield: 18.4% NIM: 9.5% RoA: 3.9% RoE: 31.4% Net worth: BVPS: ₹ 20.5 CRAR: 25.8% GNPA/NNPA:
₹4,209 cr 2.6%/0.04%
 WELL DIVERSIFIED PAN
INDIA PRESENCE

NETWORK
• 25 states and UTs (161 URCs)

BRANCH
• 629 Banking Outlets (BO)
• 271 districts
• 517 ATMs/ACRs

• 5,000+ touch points

CONNECTS
PHYSICAL
BANKING INFRASTRUCTURE • 260+ Money Mitra

OTHER
• 2 Asset Centers
• 21 Other Offices
598
• Chalta Phirta Bank – 13,000+ field staff

629
590
502
575

511

517
492

Jun-22 Sep-22 Dec-22 Mar-22

• Phone Banking

ALTERNATE
Banking Outlets ATMs
• Video Banking

DIGITAL
• Voice Bot
Serving 77+ lakh customers

AND
• IB, MB and BNB
through 17,870 employees • Hello Ujjivan
Banking Outlets
Map not to scale States with branch network
 DELIVERING – CONSISTENTLY & PROFITABLY
Sustained momentum in Business volumes
Quarterly Disbursements crossed ₹6,000 crores mark Gross loan book – 66% growth in 18 months
₹ Crore
₹ Crore
6,001 24,085
21,895
4,870 4,868 4,841
20,938
4,809 19,409
4,327 18,162
16,463
14,514

Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23 Q3-FY23 Q4-FY23 SEP'21 DEC'21 MAR'22 JUN'22 SEPT'22 DEC'22 MAR'23

Generating strong profitability

Rapid growth in NII… … with high profitability
₹ Crore ₹ Crore

738
PAT PPoP
697 385 389 411
663
301 294 293 310
600 242
544 203
154 127
454

-34
Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23 Q3-FY23 Q4-FY23 Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23 Q3-FY23 Q4-FY23
 ASSET QUALITY AT INDUSTRY BEST –
NEGLIGBLE NNPA
SMA Pool & Restructured Book have shrunk significantly highlighting strong asset quality
SMA-0 SMA-1 SMA-2 NPA
₹ crores RF 1.0 RF 2.0 Total
30.8% Micro Banking (GL+IL) 80 65 145
Last 18 months improvement: Housing 8 18 26

9.8% • PAR: 1,505 bps MSME 6 49 55

• NPA: 917 bps Loan Book 95 132 227
PAR 84 95 179
18.9% GNPA 81 80 162
3.8% Provisions 82 80 162
8.6%
14.9% Mar’23 Coll. Eff. % 111%
2.4%
2.7%

2.6% 0.9% 1.5%

9.6%
0.8% 1.2% 7.9%
0.9%
1.1%
0.4% 0.7% 6.1%
0.3% 0.9% 4.9% 3.8%
9.8% 11.8% 0.6% 0.8%
0.2% 0.5% 0.6%
9.8%
0.2% 0.5%
7.1% 0.2%
5.9%
4.4% 3.4% 2.6%

Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23

 STRONG DEPOSIT GROWTH WITH RETAIL AT
FORE-FRONT
81% growth in deposits over 18 months; CASA grew 113%
25,538
23,203 217
147
20,396 6,744
18,292 18,449 397 6,070
756 344
15,563 5,496
14,090 374 4,993 5,155
205 4,117 10,118
3,166 9,172
7,549
5,993 6,432
5,200 5,403

7,814 8,458
6,550 6,517 6,955
5,519 5,669

Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23

Bulk TD Retail TD CASA Certificate of Deposits

 DRAWING STRENGTH FROM UJJIVAN’S
UNIQUE BUSINESS MODEL
Asset Mix with high yields; fast growth

Higher Can absorb

Volume
proportion higher cost
Intensive
of unsecured of fund

Maintain high credit quality, Keeping opex under Strengthening liabilities,

diversify to secured
▪ High credit quality in MFI
▪ Strong on ground collection team
along with increased focus on Digital
collection
▪ Cushioned with Floating provision;
High PCR
▪ Healthy CRAR
▪ Diversifying book
▪ Through secured products-
targeting aspiring middle class
▪ Expanding geographies
check
▪ Improving productivity
▪ Increased usage of technology;
enhanced digital initiatives;
robust deployment of RPA in
business process
▪ Streamlining processes
▪ Digital reach beyond branches
keeping CoF under check
▪ Diversifying funding
sources
▪ Reducing premium over
larger peers
▪ Growing CASA, Refinance
etc
 FOCUS AREAS FOR FY 2023 – 24
What's different in Focus areas.. All essential
Growing asset book stuff.
with balanced mix of
Secured Vs Unsecured Consolidating Deposit
franchise with further granular
base toward Retail, CASA
Enhancing delivery channels
with focus on digital, video
Banking, Phone Banking for
better customer experience Upgrading and
expanding technology
platform
Continued focus on
productivity & sweating
the infrastructure
Succession planning,
Reverse Merger with
Ujjivan Financial Services
 LIABILITIES
STABLE, SUSTAINABLE, SCALABLE
 LIABILITY MANTRA FOR NEXT LEAP
What underpinned ₹25K crore milestone?
▪ Ahead of the market to anticipate rising rate cycle
▪ Strong base of traditional customer segments
▪ Strong customer service
▪ Wide Physical reach backed by Phone Banking, IB,
MB, BNB, experienced field force
▪ Cost of Fund up by only 20bps in FY23 despite 250bps
hike in REPO over last 18 Months
What is the focus ahead?
▪ Reducing interest rate premium over larger peers ?????
▪ Expanding product & services suites to attract wider
customer base
▪ Expanding customer base to new age, tech-savvy
segment with:
• Digital products
• Multiple tech-led channels like video banking
▪ Implementing latest technology to provide better
service
▪ Analytics-based cross-selling, up-selling ?????
▪ Branding – national, regional campaigns, festival/ event
based campaigns, digital marketing
 BUILDING STABLE AND GRANULAR
LIABILITY BASE
• Competitor benchmark of service
• Multi-channel approach
standards
• Expanding branch-reach, relationship
• Adherence to TAT standards
banking
• Service Quality Audit for the
• Digital offerings, Video Banking
branches
• Enhancing Phone Banking services
• Tech Upgrades to Identify common
• State-of-the-art IBMB, BNB, Hello
service requests & resolve with in
Ujjivan
• Aspiring middle class TAT
• Senior Citizens
• Women
• NRs
• HNI
• TASC, MSME & Enterprises
• New age digital focused Customer First • Strengthening Analytics
• Need-base products & services
Channels
Service vertical – systems, processes,
• Focus on value-add CA, SA, skill-set
fee-based products approach • Advanced Data Modelling-
Look Alike targeting
• Digital Lead Generation –
Customer capture referrals
segment + Building Cross-sell,
Tailor-made Brand Up-sell, Analytics
products
Ujjivan
 GROWING CUSTOMER BASE, MORE GRANULAR,
BETTER ATS
…& Increasing Average SA Ticket Sizes
Growing Customer Base… …with Focus on Granular Base…
(ATS)

No's in lakhs 76.9 ₹ in ‘000

5% 2%
30.6
16% 29.4
64.8 41%
59.2
Mar’19
34.4
54.4

26.9 36%
46.1 10.9 19.1

5.9
Individuals Banks Corporate Govt. TASC^ 14.7

11.9
21.5 4% 4%
36.2 8.5
36.7 38.9 14%
35.2 7.3
6.4
Mar’23 4.1
55% 2.7
18.7 2.5
22%
7.3
3.4 2.7 3.6
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
2019 2020 2021 2022 2023
Overall Retail Branch Banking
Asset Only Asset & Liability Liability only
 EXPANDING FROM TRADITIONAL CUSTOMER
SEGMENTS
Senior Citizen
• Need: Higher rates on deposits, low-cost
banking services and priority services at
branches/doorstep
• USP: Doorstep banking services, Additional
interest rates for senior citizen and Life-
time free Debit card
TASC
• Need: Higher Interest rates and CMS
solutions
• USP: Charge-free banking services,
Dedicated team of experts to manage
the relationship, payment gateway and
Value-added services (POS/QR/CMS)
HNI
• Need: Exclusive lifestyle and wellness
benefits, faster query resolution and higher
interest rates
• USP: Dedicated Program ‘Ujjivan Navratna’
to cater to the needs of HNI customers
NR
• Need: Remittance efficiency, FCNR account,
Digital Banking capability and alerts on
International mobile
• USP: Dedicated Helpline & RMs and
Competitive interest rates
Women
• Need: Higher Interest rates, Exclusive
offers, Easy-to-use banking services
• USP: Exclusive Savings account for
Women; additional benefits on minor
account linked with standing instruction;
competitive interest rates
Enterprises
• Need: Working capital Loans, Payment
Solutions and comprehensive banking
solutions/ecosystem
• USP: Charge-free banking services, Value
Added services (POS/QR/CMS) and
higher cash limit
 Good focus The Young Saver
Demographics: 25-30 years, Graduate, Middle-income

TO NEW AGE TECH SAVVY Psychographics: Values stability, financially responsible, prefers
convenience

CUSTOMERS Behaviours: Prefers online services, research-based decisioning,

active on social media, well-travelled, likes to watch educational/

ACROSS THE COUNTRY, investment content

Preferences: Transparent and competitive interest rates, hassle-free

BEYOND PHYSICAL online account opening & banking-services

REACH OF THE BANK The Established Investor

Demographics: 30-45 years, Post-graduate, High-income
Psychographics: Value security, comfortable with online transactions,
prefer flexibility
Behaviours: Research before investing, willing to invest in long-term
Video Banking

fixed deposits, travellers, consume news online, bookings online

Socially Active Research-based Preferences: Wide range of tenures, hassle-free renewal and
Online investing withdrawal process
Mobile Banking

decisioning
Travelling Convenience The Tech-savvy Entrepreneur
Demographics: 30-45 years, Self-employed, High-income
Flexibility Phone Banking Psychographics: Values convenience, prefers high returns with low
Quick response risk, hassle-free banking-services
Behaviours: Frequently search online investment options, prefer
Hassle-free online account opening mobile banking, frequent traveller, high-value online shopping,
active on social media
Preferences: Competitive rates, invests with established financial
institutions
 MULTIPLE CHANNELS TO SERVE CUSTOMERS
Physical Infra Alternate Channels
• 25 states and UTs
• Phone Banking (200+ services in
• 2 Asset Centers
9 Indian Languages)
• 271 districts
• Video Banking
• 629 Banking Outlets (BO)
• Voice Bot
• 517 ATMs/ACRs

Payments & Tie-ups IBMB

• QR code/ Ujjivan Pay • Internet Banking
• POS • Mobile Banking
• UPI • Business Net Banking
• Fintech partnership/ Digital
lending

Hello Ujjivan
• Hello: Voice, video, vernacular Mobile App
Additional touch-points • Targeting less tech-savvy customers
• Services like loan servicing, EMI
• Relationship Banking
payment, FD/ RD opening, fund
• Chalta Phirta Bank: Door-Step
transfer – more to be added like loan
Banking through 13,000+ field staff
application
• Money Mitra- 260+
• Agency touch points- 5k+
 EXPANDING HUMAN RESOURCE CAPACITY
& CAPABILITY
Talent Acquisition Talent Management Learning & Development Rewards & Recognition

• Focus on Employer Branding to
attract good talent
• Tie-up with reputed universities /
education institutes to ensure pool
of fresh talent
• Need-based new profiles to cater
customers better (CA RMs, NR RM’s,
Cluster Heads)
• Expanding overall field force, with
back-ups of critical roles
• Attractive Compensation, Grade
and Salary Structure
• Role-wise Career roadmap
• Identifying and retaining high
performing employees; special
bonus and ESOP programme for top
performers
• Skill development programmes – Selling • Performance appraisal based on
for acquisition team, Supervisory for scorecard without Bell curve
Branch Managers, Leadership for intervention
Regional/ Circle Business Heads, Design
Thinking for Product teams • Relevant sales contests at national
& regional level
• Emphasis on certifications like JAIIB,
CAIIB etc., • Introduce ‘Happy Quotient’ for
employees to take auto-approved
• Gamifying and making learning leaves based on their life-events
interactive with specialised vendors
• Industry exposure to learn and adapt
best practices
DIGITAL FD, SA, CA • Digital FDs, SA products to cater to tech savvy
VIDEO BANKING segment
• Develop various APIs for Digital onboarding and servicing
• Enhancing BNB capabilities through existing suite

NEW TECHNOLOGICAL upgradation/Introduction of new platform

• Knowledge on the current CRM capabilities and the process of utilizing

SOLUTIONS them
• Robust Lead management system track all leads and to support quicker
account opening
• Extensive Relationship Module for RM/RO mapping
• Linking of account for Group and Family banking
• Comprehensive 360° view of customers covering all product variants

• Extensive support in transition from HHD to Mobile device for

account opening journey
Digital offerings
• Develop CRM capabilities

CRM • Collection & payment solutions – Virtual accounts, New Payment Hub
• Insure Tech solutions for TPP sales
Mobility
• Develop charge module to allow waiver/discount on charges and for
quicker implementation of any change in charges
Others • Continuous enhancement of system capabilities and bandwidth at
branches based on usage and requirement
• Dedicated and stable UAT environment for testing
• Build internal Survey Portal for continuous feedback for upgradation
and course correction
 DIGITAL FIXED DEPOSITS
Attracting new age customers, across nation

Hassle-free
experience
GET FD IN JUST 5 Step 1
Mobile No., PAN & Step 3 Step 5
SIMPLE STEPS… Complete Payment Complete Video
Aadhar Verification
KYC
FD booked
Step 4 Successfully
No need to hold Step 2
A paperless Enter FD Details Provide Personal
Savings Account
alternative to details
to open Digital
traditional FDs
FD
Top Features
Top Features

Minimal Pre-mature
Documentation withdrawals
after 6
1) Aadhaar Multiple
months - no
FD advice
Card pay out delivered to
penalties
2) PAN Card options Email ID
3) Mobile No.
linked to Online
Paperless Banking
Aadhaar and secure Facility
 DIGITAL SAVINGS ACCOUNTS
Attracting new age customers, across nation

Features
Hassle-free SA
Open Bank A/c from the opening through Step 1
Mobile No., PAN & Step 3 Step 5
ease of your comport Digital account link Aadhar Verification Complete Payment Complete Video
KYC
SA opened
Successfully
Virtual Debit Card Step 2 Step 4
Enter initial funding Provide Personal
Details details
Unlimited Transactions in
Ujjivan’ s ATM
Services for DSA Across various Digital Channels
Open A/c instantaneously Video
Services Web IB/MB Branch ATM Phone Banking
Banking

Banking at Fingertips via Account opening

 
Ujjivan Mobile Banking app Financial
   
(Available in 9 languages) transactions

Non-financial
transactions
    

Account closure 

 RESEARCH-BASED
BRAND BUILDING ATL Activities Sponsorships

• PAN India campaigns every 6 • Sponsorships and Co-branding

months and Regional campaigns initiatives to create impact
▪ Print and TV campaigns - Independence Day, November
every quarter • Strong line of partnerships to
Festive Season, and Republic Day
• Brand building through radio, TV offer rewards
▪ T20 & WPL Branding & newspaper ads. • Creating visibility through
• Hoardings, signages having high participating in trade/industrial
▪ Festive/thematic campaigns across all regions
visibility bodies/conferences.
▪ Customer connect initiatives and micro marketing
activities at branches throughout the year
▪ Permanent Branding Initiatives across regions in
association with Traffic Police, and Temples & Tourism
department(s)
▪ Affordable housing loan campaign – Radio campaign in 18
BTL Activities Digital
cities, hoardings in 29 locations, wall painting in 15
locations and hyper local activities in the branch • Create visibility around the
catchment vicinity for focused branches • Social Media campaigns for Brand
▪ Hello Ujjivan launch - Public Launch – total 375 stories in • Support during launch of new building, Customer Acquisition etc.,
print & online news media across 10 locations and 20 branch or re-location of existing • Communication on new launches,
languages branches offers and benefits for the customer
• Marketing activities calendar for • Develop content to support benefits
the year state and segment wise to customers in website
INVESTING IN BRAND BUILDING
WAY AHEAD: FAST GROWING BASE, AFFORDABLE COST
FY26 target: 80% CD Ratio | 35% CASA | 70% Retail
Channel
Technology enabled channels like:
• Chatbot
• IB, MB, BNB
• Super App
Customer Segment • Video Banking
• Customised products • Phone Banking
• Attracts wider customer
base
• Strong base in traditional
customer segment
• New age customer segment
• Digital Products
Customer Equity
• Brand Campaign
• Utilising regional festivals
and events
Customer First • Research based BTL
activities in catchment
• Customer first approach area
• Investing in technology and
training people to
continuously enhance service
• Benchmarking against
industry leader

Targeting FY 23 – 26 Deposits CAGR: 30%+

 MICRO LENDING
SERVING FAST EXPANDING ASPIRING CUSTOMER BASE
26
INDUSTRY HAS SURVIVED MULTIPLE CRISES
Launch of MFI Credit Bureau,
RBI releases Malegam Committee regulations
Creation of NBFC-MFIs
COVID 19

SEWA established
MFIN recognized as SRO by RBI.
at Ahmedabad Harmonized MFI
RBI issues Universal Banking License
regulations
to Bandhan

1974 2020 2023

2004 2010 2011 2012 2014 2015 2016 2022
2021

Andhra crisis Demonetization Andhra Pradesh HC

RBI included MFI
lending in PSL ruling in favor of
norms MFIs
RBI grants SFB license to 10
entities (8 NBFC-MFIs)

Margin cap revised to 10%

from 12% (MFIs portfolios
>₹100cr)
Source MFIN - India Microfinance Review FY 2021-22
 INDUSTRY GROWING AT 30%+ CAGR
Correct way is to compute penetration in household
•
not population. Assessment happens at family level
Industry has delivered 30%+ CAGR since 2012 despite demonetisation and Covid, serves 4.5% of Indian population
• 10% CAGR in customer base, expected to continue growing with support from macro factors and various government schemes
• Exposure per borrower is 7x in 12 years driven by inflation, increasing credit demand, evolving needs of the customer

6.4
Gross Loan Book of JLG crossed ₹3 lakh crore in Dec’22 5.9 5.9 5.8
Serving approx. 6.4 crore Indians 5.2 3,206
2,854
2,594
4.1 2,318
3.6
3.3 1,874
3.1
2.8
1,366
2.2 2.3
1,069
845
401
207 278
154

Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Dec'22
JLG - OSP (Rs. Bn) Customer Count (Cr)

Industry can continue 18-20% growth over medium term

Source: Micro Meter by MFIN, (Only NBFC-MFI data till Mar 15), Borrower base has been estimated from FY 16- FY 19 due to non-availability of data in Micro Meter
 AN EVOLUTION – ORIGINS, TRANSFORMATION &
COMMERCIALISATION
Better managed entities
• Developmental approach vs professional
management
• Creating new job / employment opportunities
• Gaining visibility, recognition to attract talent Banks &
SHG Linkage NGO’s NBFC NBFC MFI FinTech
– technical; management expertise SFBs
• Aspirational industry, Culture
• Increased transparency & corporate
governance with improved Board composition
including academician/ social activists,
bankers, IT & HR experts Evolving industry landscape – increased competition and regulated entities
• Number of players has expanded from handful to 200+
• Small/ local players to big and pan-India players
Banks, SFBs gaining market share vs. • Developmental sector to Sustainable to Profit-oriented sector
NBFCs earlier • Source of funds: Evolved with nature of players – SHG (Government-aids)
• Organic – HDFC, RBL to NGO’s (donations) to NBFC/ MFI-NBFC (Private equity, Debt, public
• Inorganic – IndusInd, Kotak 58%
investors) to universal / Small Finance Banks (public deposits)
• Converted to Bank – Bandhan, SFBs

8%*
Mar-15 Mar-23
Note: * Based on industry data

Source Crif for Mar’23

 HIGH YIELD, HIGH GROWTH, MODERATE RISK
Loan product Loan account count (Cr) Yield (%) PAR 31-90 % PAR 91-180 %
Personal loans 9.5 12% - 16% 1.95% 0.79%
Unsecured Business Loans 1.2 17% - 20% 2.74% 1.91%
Micro finance 13.1 20% - 27% 1.19% 1.06%
Credit Card 8.6 30% - 45% 2.22% 6.60%
Consumer Loans 6.7 10% - 14% 1.59% 1.23%

Source Crif Highmark

Evolving risk dynamics bringing in discipline

Information
Assessment
Group assessment
Pricing

Source
Credit
Primary (informal)
Uniform Pricing to
to
vs Individual assessment
Secondary (formal)
Risk Based Pricing to Bureau/Banking transaction
Household assessment
Management

Bureau Data
Technical
Expertise

MFI
Use of analytics Experienced management
Risk

to
Evolving based on experience Risk/Compliance focus Comprehensive
during crises KYC/IRAC automation/ EWS to
Household
 MARKET POTENTIAL
Unserved Poor Aspirational middle class segment

Women Borrower Gender Agnostic/Household level Income

Livelihood needs Aspirational needs

Single Product Multiple Product/Full fledged banking

1,219 Million 1,400 Million

Rich 16 Million Rich 56 Million

(>₹ 17 lacs) (> ₹ 30 lacs)

Middle Class 160 Million Middle Class 434 Million

(₹3.4 to ₹17 lacs) (₹5 to ₹30 lacs)

Affordable housing, Personal loans

Out of these 910
359 Million Aspirers 728 Million
Micro Lap, Agri KCC Lower middle class million population,
(₹1.5 – ₹3.4 lacs) (Lower middle class) we are expecting a
Gold loans, Two wheeler 9cr HH (₹1.25 lac – ₹5 lac) 18cr HH market potential of
Small ticket personal loans 200 - 250 million
Micro finance Poor 684 Million Destitute (Poor) 182 Million customers
Consumer durable loans (₹1.5 lacs) (₹<1.25 lacs) 4.5cr HH
17cr
Household Income Pyramid 2010 Household Income Pyramid 2021

Source: NCAER-CMCR 2010 annual income data. India had a Source : PRICE (People Research on India’s Consumer Economy.
population on 1.21 billion in year 2010 India had a population on 1.4 billion in year 2021
Graph not to scale
 UJJIVAN: LEADER OF TODAY
Established industry
Mar’23/ FY23
leader today

▪ 254 districts in 25 states/ UTs

▪ 599
598 outlets including 151154
SFB URCs
▪ Serving 60 lakh+ customers
lac+ customers
▪ Commenced
▪ Disbursed ₹16,084
Rs 16,084crcrininFY23
FY23
NBFC-MFI operation in 2017
▪ ₹17,401
▪ Additional focus on Rs 17,401crcrgross
grossloan
loanbook
book
▪ Commenced in URCs
▪ Industry-best asset quality
2005 with Grameen ▪ Multiple sources of with collections at ~100%
model funds including ▪ Among most profitable
▪ Focus on urban public deposits franchise
poor
▪ in-depth
understanding of
customer needs
▪ Tailor-made
solutions
▪ fully integrated
back-end IT
platform
UJJIVAN: HIGHER GROWTH, BETTER CREDIT QUALITY
Growing faster than Industry… Ujjivan asset quality, collections: Among industry best
Mar’12-Dec’22: Ujjivan – 22x | Industry – 16x
Ujjivan Vs Industry Portfolio - Mar'23

CAGR over last decade 7.2%

Ujjivan*
36% 7.8%

9.7%
NBFC MFI
11.1%

12.6%
SFBs
32% 15.7%

10.2%
Banks+Others
12.8%

10.2%
Industry
Ujjivan Industry 12.4%

…& gaining market share

GNPA % PAR %
Market Share Mar’22 Mar’23
Ujjivan Vs Industry 4.0% 4.5% Note: Data including technical write-off; may not match with reported data
Source: Crif Highmark
Ujjivan among SFB’s* 23.3% 26.7%
 WHAT MAKES UJJIVAN UNIQUE?
Strong Credit
underwriting Collections Technology
& monitoring
• Industry 1st to have dedicated credit • Industry 1st to have segment focused • Pioneer in the usage of rule engine
team for Microfinance business with a dedicated collection team – all NPA & for micro finance loans which
team size of 500+ (Field + backend) Probable NPA accounts became an industry norm
• 100% of loans are assessed and sanctioned
• Focused collections from restructured • Integrated LOS, LMS available on
by credit team
accounts with the help of data handheld devices for Feet on Street
• Score based Lending & Risk based
analytics – best in Industry • Use of Data Analytics to serve
Pricing
customer better - customer
• Early warning system to monitor
onboarding, customer servicing,
portfolio quality
upsell & cross sell
• Industry 1st to shift to family-level
Income/ Debt being evaluation; since the • Geo tagging - a feature in trucelll
start of micro finance business application which allows our ground
staff to track/update customer’s
• Credit underwriting: Paperless on
location (Centre/house) for better
boarding of clients, EKYC and PAN
service
verifications, mobile number validation,
use of comprehensive credit bureau check
for the household at customer place
 WHAT MAKES UJJIVAN UNIQUE?
Asset Product Suite
• Wide Asset product basket
• Traditional MF customer base:
• Group Loans
• For Aspiring Middle class -
• Pioneer in unsecured
Individual Loans - Business,
Livestock, House
improvement Upto 5L
• 18% of Micro-banking
portfolio
• Secured products suite –
• Gold Loan,
• Two Wheeler,
• M-LAP
Liability Product Suite Alternate Channels
• Focusing on Deposits from All – • Virtual relationship Management: Starting
Sampoorna Banking: from collection all the other asset and
• CASA, Goal Based TD liability services can be provided virtually.
• Hello Ujjivan: India’s 1st Mobile banking
• Rs.2,100+ liability book
application dedicated for the Semi-Literate
size
& Illiterate Customers based on the 3
• CASA contributing to Principles of Voice, Visual & Vernacular
more than 55% of total based content
deposit book raised from • Money Mitra (CBC): Agent Network providing
MFI customers door step banking. Capable of cross selling
• Currently 13% of bank multiple products
retail book • Fintech touchpoints with partners (Airtel
Payment, PayNearby, Spice Money)
• Micro-Insurance & Govt. backed
• Ujjivan Pay (QR): Alternate channel for
Investment products
Customer acquisition and help the small
merchants to digitize their business related
transactions. Way of capturing alternate
data points
 ORGANISATION STRUCTURE
WITH STRONG CREDIT, COLLECTION, CONTROL

Business Head – Micro Banking Chief Credit Officer Business Head – Rural Banking

Collection Credit
National Business Manager
Policy
Regional Business Product
Business Correspondent Team National Manager-
Manager Team National Manager- Credit National
Collection Manager-
Credit Regional
Policy
Product
Business
Team
Support Manager
Corporate Support
Distribution Team
Policy
Manager Phone Banking, Reporting Support
Regional Team
Analytics, and
Credit
Operations Analytics
Individual Manager
Group Loan Team
Loan
Area Area
Area Manager
Manager- Manager-
Regional Collection
Deposits, Digital Manager Area & RB Secured
Lending, Payments Cluster Regional Field credit
and Third Party Credit Credit team Unit
Products Manager
Customer Area & Cluster Branch
Loan Officer-
Relationship Collection Manager-
Manager
Secured Loans
Manager RB

Collection Field Credit

Officer- On Role Officer
& Off Role
FOS (CRO,LO,FIO) Operations
Sales Team
Team
 GROWTH ENGINES AT PLACE FOR A STEADY RIDE

What’s driving Ujjivan’s competitive edge

Comprehensive
product suite

Digital lending
• Graduating customers to IL, M- • Phase 1- Digital Lending through

Geographies
Lap,Vehicle Loan & Gold Loan Fintech Partnerships

New
• Enriching the savings behaviour of • Phase 2 - Transaction based • Own branch network
the customer by providing CASA & Lending (TBL)
• BC model
TD; also providing insurance • Phase 3 - Ujjivan Super App
products through TPP (Extension of Hello Ujjivan)

• UPI
Hello Ujjivan

Productivity
• Bill Payments Ujjivan • Introduction of Sound Box
• Loan Acknowledgement for repeat Pay QR • Merchant App • Virtual Relationship Managers
Loans • Digital collection/ digital lending
• Partnering with
• End to end Loan Journey for Fintechs/Distribution channels for (through Hello Ujjivan) to aid
Repeat & Top Up Loans productivity
QR
• Digital Savings Account Journey
 GROWTH ENGINES AT PLACE FOR A STEADY RIDE
Leader of today
• Pioneers in IL business; already a large business
with strong team → market slowly moving towards
Individual Loans
• Comprehensive product suite to cater all the needs
of the aspiring middle class customers through IL,
M-LAP, Vehicle loan, Gold Loan
• Leader in technology & new initiatives
• Leader in adoption of best credit & collection
practices like credit appraisal based on family-level
income/ debt, dedicated credit & collection team,
pioneers in rule-engine based underwriting
Can grow at CAGR of 20-25% over medium term
Stronger leader of tomorrow
• Opportunity to cross-sell and upsell our large
customer base of more than 60+ lakh customers
• Strengthening the Credit & Collection workforce
with Analytics for better asset quality
• Alternate channels has been built such as VRM,
Hello Ujjivan to enable smooth onboarding and
increasing efficiency
• Deeper digital penetration across assets, liabilities,
payments, insurance – changing the way this
segment banks
AFFORDABLE HOUSING
GEARED UP FOR BIG LEAP AHEAD
 AFFORDABLE HOUSING- SECURED
& RAPID GROWTH BUSINESS
30 00 000

11.0%
Fast-growing market… 11 .0%
…with Banks gaining share
10.6%
25 00 000

10 .0%

9.5%
20 00 000
9.2%

8.7% 8.8% 68%

63%
9.0 %

15 00 000

8.0% 37% 32%

25,11,183
8.0 %

21,76,856
20,06,346

7.1%
18,11,576

2017 SCB HFC 2022

15,64,078

10 00 000

7.0 %
13,35,386

▪ Government Focus on “Housing for All”

9,97,523

50 00 00

6.0 %
4,59,496

▪ Huge potential to grow considering low

0 5.0 %
“Individual Home Loan to GDP” ratio
FY10 FY15 FY17 FY18 FY19 FY20 FY21 FY22

Outstanding - IHL - SCBs & HFCs IHL - GDP Ratio

Source: NSO, RBI & NHB
 AFFORDABLE HOUSING: A DOMINANT FACTOR
Affordable segment growing at 32% CAGR* vs 12% for Housing Industry
Housing Loans Outstanding in India* Break-up of Affordable Housing Loans

3.5 15%
3.58 26%

5.62 25%

5.03 36%

Home Loans
Upto ₹35 lakhs
13.79 60% Ujjivan
2.56 19%
Target Group

1.93 14%

0.69 5%
OSP (lac Cr.) % OSP (lac Cr.) %
Upto 35 lacs 35L-75L 75 L & above Upto 5 lacs 5L-10L 10L-15L 15L-25L 25L-35L

Ujjivan targeting Home loans of 10-15L

Note: * Over FY18 – FY22; Industry data as per analyst reports;
Affordable segment data for 7 large players - Aavas, Aptus, HFFC, AU SFB, Ujjivan SFB, Aadhar, Vastu
 OUR JOURNEY SO FAR
Today we offer diversified & inclusive product suite to meet various home loan/mortgage
related requirements across income segments

FY 16-17 FY 17-18 FY 18-19 FY 19-21 FY 21-23

▪ Forayed into Affordable ▪ Expanded focus to
Housing Space with a focus Semi-formal segment
on up-selling to exiting with suitable changes in
customers loan size, ROI & loan
tenor
▪ Introduced Loan
Originating System ▪ Added LAP to Product
Suite
▪ Products Offered:
▪ Product awareness
▪ Home Improvement Loan, through major
Home Loan with ticket marketing initiatives
size of INR 2-15 Lakhs and
tenure upto 15 years. ▪ Launch of PMAY-CLSS
scheme
▪ Increased distribution by ▪ Overall TAT reduced to less than
collaborating and 10 days (from 25 days in FY 16-
establishing business 17)
partnerships
▪ Developed Region Specific
▪ Launch of Composite Loan Policies to be implemented in
(Plot + Construction) FY 20-21
▪ Foray into builder market ▪ Expanded presence to 450+
with increased Branches
concentration in Metros &
Tier I locations ▪ Commercial Purchase product
introduction
▪ Hit by Covid-19
▪ Re-alignment of credit policy basis
customer segment
▪ Moratorium & Restructuring for
customer relief on repayment
during Covid-19
▪ Strong employee & customer
connect key to sustain during
difficult times
▪ Diversified sourcing channels
(Branch Referral, Customer
Referral, Digital) with increased
focus on bank credit salaried
profile.

▪ Focus to acquire customers in Tier

2 and Tier 3 Locations
AMONG FASTEST GROWING AFFORDABLE HOUSING PLAYERS
Among meaningful Affordable Housing players with Pan-India Presence
average monthly disbursement close to 22 States, 143 Clusters, 445 Branches
₹140 crores (up from ₹60 crores in FY21)

CAGR
4,00 0

37,041
35,000

Gross loan book: 42% 3,50 0

Disbursement: 24%
30,000
30,382

Customer Count: 33%

3,00 0

24,080
25,000

2,50 0

19,127
20,000

2,00 0

3,401
2,734
15,000

11,827
1,50 0
2,050

10,000
1,524

1,00 0

1,391
1,064
844
830

27%
5,000
500
666
590

South
- -

42% North
FY'19 FY'20 FY'21 FY'22 FY'23 East
15%
In ₹ crores Disbursement OSP Customer Count West
16%
 RE-FOCUSED TO AIM HIGHER
Strategic Parameter Housing 1.0 Housing 2.0
Evenly spread across regions with a focus on
individual properties
West region focussed business with
Geography significant builder Loans. Equitable sourcing from all tiers in a
geography
Focus on Tier 2 & 3

Focus Focus on Business Volume Focus on Profitability

Based on customer income profile &

ROI Based on customer income profile
collateral type

Collateral Policy One policy for Pan-India State Specific Policy

Product Standard Highly customized basis local needs

Process Largely Manual Largely Digital

One collection team for MFI and Secured Separate collection team for secured
Collections business business
 RE-FOCUSED TO AIM HIGHER
Strategic Parameter Housing 1.0 Housing 2.0
Sourcing Channel Direct & Connector Multi Channel Approach

Similar Process – Irrespective of income Separate process for SF & Formal segments
Credit Underwriting profile with lesser TAT
Relationship based on multi-product
Customer Engagement Transactional
engagement

Employee Incentive Based on Business Volume Linked to business profitability

Regular engagement & Standard training Need based engagement and customised
People module training

Hub based
Better TAT – local decisioning
Distribution Model Branch based Increased productivity
Adding regions for better control on process
& close employee engagement

Added a small sourcing % of formal segment

High focus on Informal segment along with
Customer Segment semi formal
& increased focus to tap micro-segment
through Micro-LAP product
 MARKET POSITIONING – FINDING
OUR SWEET SPOT

Large private banks, HFCs

Ticket Size Income

₹ 15 lakh ₹ 50-70K/month
HFCs & banks focused on Affordable housing
segment like Aavas, Aptus, HFFC, ICICI Home
Finance, Axis bank (Asha), HDFC (Reach) etc.
₹ 30-40K/month
₹ 10 lakh

Largely Unserved/Informal Segment

Limited servicing by few HFC/SFB, largely regional like
Mahindra Housing, Annapurna, Micro Home Loan by Jana

₹ 5 lakh ₹ 15-25K/month

Informal Semi-formal Formal

Paid/ earns in cash Salaried/Self-employed Salaried with pay slip
No formal income documents Significant proportion of undisclosed income Income tax documents
No formal residency Some residency Residence documents
 FOCUSED ON ASPIRING MIDDLE CLASS
Informal Semi formal Formal

FOCUS AREA Rural & Semi-Urban Semi-Urban & Urban Semi-Urban, Urban &
Metropolitan
Ticket size upto 15-20L
BUSINESS Cash Salaried, Small time Salaried customers with more formal Salaried customers with more formal
businessmen, handloom source of income, Self employed source of income, Self employed
ACTIVITIES workers, etc. professionals, Self employed non professionals, Self employed non
professionals, etc. professionals, etc.

BANKING Low exposure to banking Moderate exposure to banking Relatively higher exposure to banking

ACCESS TO High dependence on family,

Accesses institutional finance- Accesses institutional finance-
FINANCE friends, chits/ committees &
compares offerings compares offerings
moneylenders

› Home Improvement Loan
TARGET › Self-Construction Loan
PRODUCTS › Home Equity Loan
› Ready Property Purchase Loan › Ready Property Purchase Loan
› Home Equity Loan › Home Equity Loan
› Under Construction Purchase › Under Construction Purchase
Loan Loan
› Composite Loan › Composite Loan
› Salaried LAP
 PRODUCT & SEGMENTATION
Product Wise OSP % Segment Wise OSP %

8.7%

Home Purchase Bank Credit

15.6% 37.6%
42.4% Home Equity Loan LAP 45.9% Cash Salaried

SENP
Construction Loan
33.3% 16.5%
Others

▪ Lion share of product is Home Purchase which is targeted for Bank Credit salaried segment
▪ Focus on tier II & III markets may contribute to increase in Construction Loan & Home improvement
Loan portfolio going ahead
 DIVERSIFYING SOURCING MODEL
Direct sales sourcing, connectors contribute to 95% of sourcing today
Targeting to increase contribution of alternate channels to 25% or more over next 3 Years

Distribution
Channels

Open
Alternate
Market

Builder Connector/ Referral Marketing Digital

Direct
Channel DSA Sourcing (Offline) Marketing

Strategic Online lead

Employee Customer Analytics/pre-
Alliances / generation/Call
Referral Referral approved /ETB
Fintech Centre
 COMPREHENSIVE CREDIT ASSESSMENT

Customer Check Property Check

Bureau check, Document Verification & Property Check through Credit Visits,
Multiple visits to cross-check customer’s Technical Visits, Legal assessment
credit worthiness

Centralized Process Regular Portfolio Review

Centralized process for Bank Portfolio monitoring at branch,
Salaried customers: Quicker TAT regional and corporate level on a
& High Productivity monthly basis

Strong Team Robust analysis of Income

Strong and Experienced Credit team Income Assessment done through various
spread across all business sourcing methods designed with reference to
locations customer profiles.
 ORGANISATION STRUCTURE WITH
STRONG CREDIT AND COLLECTION
Business Head-
Housing & MLAP Chief Credit Officer

National Manager – National Credit Manager – National Collections

Zonal Business Head
Housing Products Housing Manager

Deputy Lead/Manager –
Regional Business Head Housing Products Regional Collections
Regional Credit Manager Manager

RSM/
Area Business Manager Area Credit/Technical
Area Collections Manager
Manager

Sr. Cluster Manager/

Cluster Manager – Housing
Team Size Cluster Credit Manager Collection Manager
Products and sales: ~1,000
Relationship Officer/ Credit: ~275
Branch Relationship
Manager – Housing Collections: ~300
Credit/Technical Officer Collection officer
NAVIGATING COMPETITION
People
• Performance recognition
• Customised training programs
• Reward & Recognition

Process
• Paperless process
• Mobility solution
• Better TAT

Channel diversification
• Branch & customer Referral
• Digital marketing & lead generation
• Higher DSA count

Customer
• New Customer Retention Policy
• Customer Service
• Multi-Product Offering
 RECENT CHANGES

PRODUCT PROCESS PEOPLE

• State Collateral Policy • Hub Model • Simplified Variable Pay

• Efficiency, Customer • Profitability,
• ROI Matrix
Service, Business performance
• Lower customer attrition
• Channel Diversification • R&R programs
driven by new retention
• Branch, Customer
plan • Training programs – Basic
Referral, Digital
• Profitability & Productivity level, Rise & Shine,
• Central Processing Unit for Refresher training with a
scored card up to cluster
Semi-Formal segment focus on sales skills &
level
• ACH/SI – Cashless query resolution.
• Simplified Documentation • Hiring skilled and
experienced people
• Vendor Management
• Mobility Pilot
• Humari Adalat
 TIER II & III MARKET - BENEFITS
METRO & TIER I TIER II & III

Composite, HIL, HEL

PRODUCT TYPE Purchase
Construction, MLAP

Salaried customers with more formal source of income, Cash Salaried, Small time businessmen, etc. Informal
CUSTOMER PROFILE Self-employed professionals/ non-professionals etc. income and are usually self-employed
Earning is higher and so is Cost of living Income & Cost of living - moderate

Low LTV
High LTV exposure
SORP. Mostly Individual properties (land will also be
LTV & PROPERTY TYPE Rented/SORP. Mostly Apartments (land will not be there)
there)
Low OCR
High OCR

PEOPLE & Attrition & Operating cost – High, Migration – High, Attrition & Operating cost – Low, Migration – Low,
OPERATIONAL COST Emotionally low attachment Emotionally high attachment

PROFITABILITY NIM – Less | Yield – Less | COA - High NIM – High | Yield – High| COA - Less
 DRIVING EFFICIENCY THROUGH HUB-MODEL
Services Platinum Gold

Business  

Credit  
Form Flow Turn Around Time
Credit Administration 

Operations 

Collections  
Accelerate business
Keep control levers
Internal Legal & Technical   Average
under check
Coordinator/Retention Manager  Productivity
Stronger EWS
• 5 hubs are already live, 23 more planned in monitoring
FY24
• Positive traction observed in pilot phase on
Customer Portfolio Hygiene
different parameters Service
• Catalysing non-hub locations to aspire for Index
more
 DIGITAL FOCUS TO
STREAMLINE PROCESS, ENHANCE CUSTOMER EXPERIENCE

1 2
3 4 5
Digital Channel Digital Customer
for Sourcing Digital Processing Post Disbursement Analytics support for
On-boarding
Business including tranches Service through pre-approved top-up
App/IB/MB loans & portfolio
monitoring

Interest Certificate, Data crunching to

Assisted & Quick login Seamless processing Loan Statement etc. monitor & leverage
IB/MB, Fintech, & Faster TAT existing customer base
saving bandwidth for
Phone Banking etc. bank & customer
ASSET QUALITY: COLLECTION FOCUS, STRICTER CREDIT
Portfolio Quality has improved significantly over 18 months
• Strong collection mechanism put in place post pandemic
• Dedicated legal team for NPA cases resolution
16.8%
• Regular monitoring of portfolio at management level

13.3% • Better customer connect at branch level through cross-sell

13.0%
& customer service

9.4% 9.2%
7.8%
7.0%
5.7%

5.8% 5.6%
4.8% 4.7% 4.4%
3.5% 3.2% 2.6%

June'21 Sept'21 Dec'21 Mar'22 June'22 Sept'22 Dec'22 Mar'23

PAR GNPA
 KEY DIFFERENTIATORS

Understanding Agility of HFC within Lender of Choice Pan India Differentiated

Semi-formal & ecosystem & with Tailor-made Presence underwriting for salaried
Informal Segment credibility of a Bank offerings & self-employed segment
 GRADUATING MICRO TO MICRO LAP
Why Micro LAP? Key drivers
 MICRO LAP: WAY AHEAD – SCALING UP
Specialized Products

• Products suiting
different end usages
Digital Journey

• Digital On-Boarding
• Video Personal Discussion
• Scan based Disbursement

Geographical
Expansion

• Offering products in all states &

Quick Scale up
• Competitive product, Digital
process & strong presence
should drive quick scaling
up of business
locations where the bank branches are
present
• Specialized Asset centers in high
potential locations
• Balancing diversification & penetration
equilibrium
 WAY AHEAD: GAINING LEADERSHIP

FY 2025 – 26: Lender Of Choice

• Among TOP 5 players in Affordable housing (in terms of
monthly disbursal)

• Strong Asset Quality: GNPA of <1.00%

• Profitability: ROI focus, operational efficiency FY 26

• Customer first approach, 72 Hours TAT

• One-stop Ujjivan digital platform for servicing FY 25

₹10,000+ Cr gross loan book

₹9,000+ Cr Housing | ₹1,000+ Cr M-LAP FY 24
 MSME
BUILDING A SCALABLE MODEL
 MSME PORTFOLIO – POST COVID SNAPSHOT
PREVIOUS STATE
• High GNPA and Credit Cost impacted
profitability
• Single Sourcing and underwriting team for both
term loans and working capital business
• Present in 400+ locations with a customer base
of 14000. Avg. customer per location was 35
• Minimal system controls to monitor recovery of
delinquent accounts
• Re-planning of manpower resources to
dedicated lines of business
• Rationalization of Locations
• Policy and Product development for
LAP, Working Capital et al
• Dedicated legal teams and collection
teams to aid recovery
• Putting a Collection Management
System in place
THE ROAD AHEAD
• GNPA has reduced by 250 bps through FY23
reducing credit cost and improving profitability
• EWS and Monitoring team structure in place to
identify and mitigate early delinquency
• Focused underwriting capabilities in place owing
to segregation of businesses
• Focused locations and collection capability in
place
 BUSINESS STRATEGY – NEW LINES OF BUSINESS
Serving
Semi Formal
LAP- Semi Formal Segment Customers,
Term Loan catering to the semi formal market. Borrowers have Ticket Size
partially documented income proofs & require longer tenor loans 15L – 100L

Serving
LAP- Formal Segment upto Formal
Term Loan for the formal segment wherein documented 5crs Customers,
Micro Small and Ticket Size
income proof is available and higer ticket size is required 25L – 500L
Medium Enterprises
(MSME) – Informal Upto 10crs
and Semi / Formal Serving
Working Capital Formal
LAP, Overdraft
Transactional limits for the customers for their day to day Customers,
expenses through OD, DLOD, WCTL, WCDL, BGs etc. Ticket Size
15L – 1000L

• Erstwhile Business
structure Supply Chain Finance
Discounting of Invoices for Distributor finance, Vendor Serving
• Single distribution Semi-
and credit team for financing through OEM and Anchor tie-ups
Formal and
all products Formal
• Product to market Customers,
mismatch Fintech Partnerships Ticket Size
3L – 200L
• Legacy processes Exploring tie-ups with leading fintech partners to extend credit
and workflows to retail customer segment through natively digital journeys
MOVING ON FROM VALUE ADDITION
Value-added Services that go beyond loans

A TRANSACTIONAL and limits will help provide a richer

experience. CMS, Business Net Banking,
QR Payment, easy POS Solutions et al will
APPROACH ensure customer stickiness and delight

TO A RELATIONSHIP HUMAN CAPITAL

BASED APPROACH Digital enablers along with the right

people put in place is what will drive us
to be the banker of choice for MSMEs.
People are what drive meaningful
relationships and we bank on our human
capital for the same
TIMELINESS
Legacy Processes will be reengineered to
ensure customers’ applications and service
requests are processed and disposed in the
shortest possible time. This will help increase RISK BASED PRICING
employee productivity and customer delight
Final Pricing of assets to be dynamic and
will insulate the bank from micro and macro
factors All our advances are natively poised
to be floating and EBLR linked and priced
BEING THE GO-TO BANKER basis risk rating of the customer arrived
during assessment.
Strive to serve all kinds of financial and banking
requirements MSME customers onboarded by offering
various banking services under the single roof.
This will help in enriching total relationship value
 SOURCING & COLLECTIONS STRATEGY
SOURCE COLLECT

Employ Digital Channels for repayment

Deploy Channel by the way of BBPS Integration ,
Partners like DSAs and Financial Payment Gateway et al and physical
Advisors channels like BCs to complement the
same

Double down on appointment of Legal

Employ Aggregators and Digital resources for speeding up recovery
Sourcing channels like Fintech proceedings in
Partners, OEMs, Anchors the court of law

Upskill and Strengthen in-house

Branch Channel and collection team with digital levers like
Self-Sourcing Collection Management Systems,
Repayment Gateways and relevant
product knowledge
 ANNUAL ROADMAP – LINES OF BUSINESS
LAP WORKING CAPITAL

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

MILESTONE MILESTONE MILESTONE MILESTONE MILESTONE MILESTONE MILESTONE MILESTONE

• Closure on • LOS and LMS • LOS Go-live • Annual • Closure of • LOS UAT – • LOS UAT – • Commenceme
Vendor development, for Semi- Contest onboarding of Phase 1 Phase 2 nt of Business
Identification UAT Testing Formal Launch LOS Vendor
for LOS and Pre- Variants • Manpower • Manpower • Full LOS Go-
Development Deployment • Full LOS go- • Product planning and readiness and live
• LOS live Policy Hiring Training
• Semi-Formal • Formal Development Formulation • R&R Plan roll-
Variants Variants for Formal • Policy Review and • System • Monitoring out
Launch, Launch and Variants for Semi- Finalization Changes Team and
Manpower Business formal Implementati EWS Set-up
hiring Initiation • Monitoring variants • Locations on
Team and Survey and
• Business • R&R Program EWS put in Finalization
Initiation Finalization place
 ANNUAL ROADMAP – LINES OF BUSINESS
SUPPLY CHAIN FINANCE FINTECH PARTNERSHIPS

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

MILESTONE MILESTONE MILESTONE MILESTONE MILESTONE MILESTONE MILESTONE MILESTONE

• Closure on • LOS and LMS • LOS and LMS • Anchor • Closure of • Co- • Scaling up • Farming on
Vendor development, go-live onboarding onboarding of development business with fintech
Identification UAT Testing fintech of Policy and newer fintech acquired
for LOS and and Pre- • Key • Borrower partners Master customers
LMS Deployment Manpower Onboarding Programs at • Identification with
Development hiring to be partner level of other incremental
• Product complete • Business growth
commenceme and sign-offs cross-sell
Program and to be opportunities products
Policy • Product to be nt in the fintech
launched obtained
Development ecosystem • Integrating
• Commencem partner
ent of systems with
Business unified LOS
 TECHNOLOGY AS AN ENABLER FOR BUSINESS GROWTH

INVESTING IN HARDWARE AND CLOUD LOAN ORIGINATION SYSTEMS

TOMORROW, TODAY Ramping up our hardware and cloud capacity to Revamping LOS for various lines of businesses
keep up with the computing requirements that are mobile first and API ready
Our investments in technology is a reflection of our
commitment towards delivering exceptionally
superior banking services to our customers.

Over the next few quarters we will be committing NETWORK AND SECURITY API BANKING
financial and human capital in technology with the
aim to:
Ensuring teams are perpetually connected to Tapping into the API ecosystem to create
• Simplify Processes information within a secure and safe unique user journeys for external and internal
• Enhance Productivity environment customers

• Speed up delivery

We also aim to leverage upon newer technologies

like API Banking, Deep Learning, AI and explore MOBILE DATA
relevant use cases there

Having simplified digital journeys for customers Development of a data lake that will populate
that is mobile first and has minimal friction information from multiple sources, analyse and
provide actionable insights
ORG STRUCTURE Business Head - MSME Chief Credit Officer

Regional Business National Manager – SCF & National Product Manager

National Business
Manager - LAP Digital Lending
Manager – WC

Area Business Manager | Circle

Business Manager Regional Business
Manager - WC SCF RM Fintech, EWS, • LAP Product
Team Product & Monitoring
Partnerships Team • WC Product
Team
Sales Manager – LAP Sales Manager – LAP Cluster Business • Technology
(Semi-Formal) (Formal) Manager - WC
• Compliance
and Strategy

• Market
Relationship Manager Research
Policy, Portfolio National Credit Manager
Analytics, Hind sighting - LAP
• Cross-sell
Lead Credit – SCF and
National Credit Manager – Fintech
Regional Credit Manager WC
Credit Admin
- LAP

Regional Credit Manager –

Area Credit Manager - WC Credit
Credit
LAP Manager -
Manager -
SCF Fintech
Cluster / Credit Manager
Credit Manager – Credit Manager – – WC
Semi Formal Formal

LAP Working Capital Supply Chain Finance and Fintech Central Product
FINANCIAL INSTITUTIONS
Secured lending to Retail focused NBFCs
TECHNOLOGY AS AN ENABLER FOR BUSINESS GROWTH

Indirect exposure to Cross-sell

Secured book
other retail assets opportunity

Gross Loan Book (₹cr) 1,128

Disbursement (₹cr)
918
855

715
648
543 549
467

240 225

Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23

Majority of the book on Floating Rate

 EXPANSIVE AND STRINGENT UNDERWRITING PROCESS…
▪ Strong domain knowledge being a NBFC-
MFI prior to becoming bank
▪ Hygiene Check of existing as well as new
clients.
▪ Checking External & Internal Rating of the
company.
▪ Understanding Management Philosophy &
vision, Promoters experience & commitment
as well as Corporate Governance
▪ Understanding Key management personnel
▪ Meeting management as well as ground level
to check actual practicing of management
philosophy
▪ Understanding the Business model of the company &
their performance
▪ Loan sanctioning process & Credit structure of each
client
▪ Analyzing Past performance from Financials as well as
evaluating the Projections
▪ Industry & peer analysis
▪ Having own operations in various segments aids in
understanding ground level operations of other players

UNDERSTANDING
MANAGEMENT
INITIAL CHECK BUSINESS MODELS &
CHECK
FINANCIALS

▪ Understanding ALM pattern with
liquidity policy
▪ Collection structure & collection
efficiencies
▪ Assessing requirements in terms of
amount, tenor, security & end use
of the funds
▪ Strict compliance with RBI &
Internal Norms for all sanctions
▪ Regular Internal & External
Audit of asset portfolio
▪ Committee based approach for
sanction of facilities
▪ Credit Committee comprises of
MD & CEO & other senior
management
▪ Charge creation & End use monitoring.
▪ Quarterly monitoring of key covenants
▪ Half yearly review of FIG portfolio.
AUW & EWS mechanism for FIG
portfolio
▪ Monitoring External Rating & market
related events

LIQUIDITY & REGULATORY DOCUMENTATION

COLLECTION & INTERNAL SANCTIONING & MONITORING
POLICY NORMS
…WITH HIGH QUALITY BOOK TO ENSURE LOW CREDIT COST
Gross Gross Gross
Credit rating advances Percentage advances Percentage advances Percentage
(FY21) (FY22) (FY23)
AA 123 19% 277 32% 476 42%
A 397 61% 521 61% 568 50%
BBB 127 20% 57 7% 84 7%
Total 648 100% 855 100% 1,128 100%

Standard Book – High Asset Quality Well-diversified across different Segments

7%
SME 3%
4%
Vehicle 31%
5%
MFI
100.0%

100.0%

100.0%

Wholesale 10%
99.6%
99.5%

Education
Housing
Gold loan 15%

Retail 24%
MAR'19 MAR'20 MAR'21 MAR'22 MAR'23
 WAY FORWARD
❖ Increasing exposure to BBB rated entities/ good unrated entities to max 10% of book
• Yield expansion
• Smaller ticket size
• Better Cross-selling opportunities

❖ New Products
• Working capital demand loan
• Capital market product – Lending through NCD, CP etc.; better opportunity to engage with higher
rated borrowers

❖ Liability sourcing/ multiple product relationship focus to continue with Asset clients
(As of 31 Mar’23, against ₹1,128 cr of Gross Loan Book, we have more than ₹750 cr of deposits)
CREDIT & COLLECTION
FY23 DELIVERED, STEADY ROAD AHEAD
ASSET QUALITY: BETTER THAN INDUSTRY OVER COVID CYCLE
Upgrades
SMA Portfolio (₹506 Cr) Restructured Strong Credit
1.2% improved higher than
₹688 Cr NPA asset <1% of Policy &
Collection Monitoring
by half slippages gross loan book
(₹335 Cr)
30.8%

21.0%
18.9%
14.9%

14.9%

11.8%
9.8%

9.8%
9.6%
7.9%

7.8%
7.1%
7.1%

7.1%
6.1%

5.9%

5.1%
4.9%

4.4%
3.8%

3.4%
2.6%

2.5%
2.0%
1.7%
1.5%
1.2%
PAR% GNPA% SMA%
Mar '21 Jun'21 Sep'21 Dec'21 Mar'22 June'22 Sep'22 Dec'22 Mar'23
 NPA MOVEMENT: SLIPPAGES UNDER CONTROL, STRONG RECOVERIES
FY22 FY23

335
1,086 506

2,088
789 483
1,284

1,071 1,284 632

Opening NPA Slippages Recoveries/ W/Off Closing NPA Opening NPA Slippages Recoveries/ W/Off Closing NPA
Upgrades Upgrades

FY23: Q-o-Q Slippages, upgrades/ recoveries

• Strong collections resulted in higher
250 Slippages Upgrades
214 upgrades.
200

• Good performance of new portfolio and

136
focus on early bucket collections is an
150

156 96
100

important factor for low Slippages

59
50

76 84

0
19
Q1 FY 23 Q2 FY 23 Q3 FY 23 Q4 FY 23
 FLOATING PROVISION COVER @ 1%
Std+NPA Provision Floating PCR%

(₹ in cr)
99% 99%
98% 100% 100
1400 1,334 98%
1,260 30
95%
1200 250 120
220
92% 1,036
90% Floating Provision of ₹250 Crs
1000 125
160
842
747 85%
800
150 877
120
600 80%
1,084 1,040 PCR @ 98% excluding floating
876 502 provision of ₹30 cr and ₹100 Cr
400 75% under Tier II and Other
692 provisions respectively
627
200 70%

0 65%
Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 GNPA Standard NPA Tier II Other Total
Provision Asset provision capital# provisions# 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
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
 MICROBANKING ASSET QUALITY
EXCELLENT TURNAROUND
Mar '21 Jun'21 Sep'21 Dec'21 Mar'22 June'22 Sep'22 Dec'22 Mar'23
38.7%

24.9%
21.6%
15.8%

15.3%

14.4%
13.8%

11.4%
9.2%

8.6%
7.6%

7.2%
7.2%
6.9%

6.0%
5.1%

4.3%

3.8%
3.5%

2.8%
2.7%

2.2%

1.6%
1.0%
0.7%
0.7%
0.6%
PAR% GNPA% SMA%
Asset quality much better than industry :
• Ujjivan Micro Banking PAR is 40% lower, NPA is 30% lower than Industry (Mar’23)
• SMA PAR is at 0.6% due to excellent collection from NDA pool with more than 99.7% CE through the year
• The Post covid micro banking book performance has been excellent with 15 MOB 30+ PAR is 0.6% for Ujjivan - better
than Industry at 1.8% (Mar’23) for Group loans. (Ref – CRIF data)
 MICRO BANKING RESTRUCTURING PORTFOLIO,
ALMOST RECOVERED
852 Restructuring 1.0 (₹ Cr) 944 Restructuring 2.0 (₹ Cr)
741
680
679
496 443 501
360
230 188 153 102 222
80 114 65
DEC-20

JUN-21

DEC-21

JUN-22

DEC-22
SEP-21

SEP-22
MAR-21

MAR-22

MAR-23

DEC-21

DEC-22
SEP-21

SEP-22
MAR-22

MAR-23
JUN-22
• Restructured book has reduced to less than 1% of total gross loan book
• 75% of the restructured book has been fully recovered
• Provision of 81% on balance restructured book of ₹145 Cr.
• Total ₹315 Cr written off from Restructured pool. ₹24 Cr. of cash collection from Restructured written-off book (8% of
restructured write-off pool)
 COLLECTIONS SUSTAINING;
NDA COLLECTIONS AT ~100%
Collection % (against month due) Collection Efficiency % (incl Additional collections)

116% 117%
115% 115%
111% 111% 111% 111% 111% 112% 112%
110% 111%

100% 99% 99% 99% 99% 100% 99% 100% 100% 99% 100% 100%
98%

Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23

Microbanking Collection • Collection efficiency is

558 592
maintained at 99% & above
through out the year

181 193 • Write-off recovery for FY 23

145 153 119 125 114 121
was ₹105 Cr.

Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23

NPA Collection Total Collection
Note: Collection efficiency - collections for the period against dues for the period.
 MICRO BANKING - KEY HIGHLIGHTS & INITIATVES

Systemic Implementation of
Micro finance regulation
Household assessment, System
changes for household bureau
check
Micro finance market share
increased from 4 % to 4.5%
Portfolio quality of Ujjivan has
been better than industry for 4
consecutive quarters
Quick turnaround time for
loan processing
Inhouse decision engine, Straight
Through Processing and more
than 3 lakh loan processed
monthly with half day TAT
State of the art LOS for
micro finance
Multiple API integrations for KYC
authentication, Bureau check,
regulatory checks

Robust growth in Borrower base
Borrower base Increased by 12% with NCA
of 9.3 Lakh clients
Steady Growth in Individual Loan
Portfolio grown by 66% and borrower base
increased by 27% during the year
Strong credit policy framework
Use of market intelligence insights, score
card, segment wise underwriting, Robust
policy, EWS and Dedicated Management
committee
FIG PORTFOLIO : KEY HIGHLIGHTS & INITIATIVES
 HOUSING - KEY HIGHLIGHTS & INITIATVES

Portfolio Quality Digitization Robust growth in

18 MOB 30+ is 0.53% vs 1.03% Centralized Processing for Bank Borrower base post covid from
(SFBs*) Salaried -75% cases decisioned in 22,816 as on Sep’21 to 39,070 @71%
Non- delinquent portfolio is at less than 2 days
99.24% vs 97.4% (SFBs*)

Credit Policy and Process Portfolio Monitoring Capacity Building

State wise Collateral policy Monthly portfolio decks for detailed Extensive internal and external
Robust process and policy reviews monitoring of portfolio performance certification
Personal Discussion by Credit for all Automated MIS Strengthening Technical team
self employed borrowers Rewards and Recognition

*Note: For SFB delinquency, we have considered ticket size of 5 to 20 lacs and average ticket size of 12 lacs which is in line with our portfolio
 RETAIL ASSETS: IMPROVING CREDIT QUALITY

Bucket X Resolution % BUCKET X RESOLUTION %

95.7% 95.5% 94.6% 94.6% 95.6% 95.7% 96.4% 98.3% • Bucket X Resolution has shown
91.5% 95.0% 94.3% 94.3%
consistent improvement in
FY23
• Resolutions improved to 98%
89.5% 91.7% 92.4% 92.5% 92.1% 95.4% 94.5% 94.6% 94.6% 94.9% 95.8% 98.0% at the end of year

Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 IMPROVEMENT IN OVER ALL
HOUSING PORTFOLIO
MSE AH
• GNPA reduced to 2.6% Vs 4.7%
as on Mar’22

Housing MSE
9.4% 9.2% MSME
17.4% 16.7%
7.8% 15.2% • Legal initiatives giving good
7.0% 13.8% 13.8% results
5.7% 11.1% 10.8%
4.7% 4.4% 8.3% 9.4% 8.8% • 80%+ of NPA book covered
3.5% 3.2% through legal action
2.6%
• Recalibrated products planned
for introduction each quarter

Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23
PAR % GNPA% PAR% GNPA%
 COLLECTION SYSTEM
One of the best user interface in the Industry

Paperless Collection
Credit Nirvana Accessibility
Core System ✓ Elimination of Manual receipts
System Options ✓ Receipt Management – real time reconciliation & update

Effective Monitoring : Geo Tracking

Finacle Mobility App for field agent ✓ Geotagging of customers visits & ease of monitoring
& supervisory function resources
✓ Real time updation of customer feedback
✓ Additional contact updation for collection purpose

Br.net COLLECTION SYSTEM

Automated Allocation, Reports & Others
Web link for Portfolio
Monitoring & allocation ✓ Automated system driven allocation feature,
Segmentation & Strategy execution
✓ Dashboards & Live Reports for tracking
✓ Notices & Analytics based Communications (SMS,IVR) /
Nudges
✓ Settlement module, Repo Module & tracking
✓ Productivity and Pay-out module- Live Indicative pay-out
SAY “HELLO UJJIVAN”
FOR THE NEW GENERATION
 TECHNOLOGY DIFFERENTIATORS
Inclusion - Financial to Digital
• Digital Powered by vernacular
Reducing TAT
• Micro loans: 30 days to 3 days
• Automated Rule engine
• Assisted Digital Workflow
• Aiming for 30 min sanctioning
• API banking, fintech integration.
Customer 360o view
• Customer 360o Information
• Essential banking services on the
field through Hand Held Devices
• Geo-tagging for Security and
Controls.
Multi-channel approach
• Assisted digital journey
• Self service: Hello Ujjivan, IBMB, BNB, Digital FD
• Phone and video banking
• Payments: QR code, POS, UPI
• Fintech partnership and Digital lending
• Traditional channels: Branches, Asset centres,
Outlets and ATMs
Tech Stack akin to larger peers
• Industry leading applications Finacle,
BR.Net, CRM Next, Oracle & more
• Best-in-class IT infrastructure
• Industry leading API Gateway by IBM
Information Security
• Among top ranked Banks in IT security
• Robust monitoring
 BUSINESS ENABLERS
Upgraded Loan Origination System for all secured products

Infrastructure upgrade at Data Centres and Disaster Recovery sites

Cloud strategy to enable multiple application rollout on cloud

System Reliability Engineering (SRE) for stability and availability of critical applications

Micro services based applications for scalability and resilience

Best in class partners

CraftSilicon, Infosys, Cognizant, Kyndryl, Sysarc ,Wipro…
EXPANDING CAPABILITIES WITH STRATEGIC
PARTNERSHIPS

iFrame for
Loan Aadhar Verification
Repayment Easy input in single secure page
Customer
Engagement

Enabler
Payments APIs hosted 73
 END-TO-END DIGITAL JOURNEY
4. MULTI-PRODUCT OFFERING
• Analytics based Cross-selling and
1. PROSPECTING
up-selling of Ujjivan and Third
• Advanced Data Modelling: Targeting new
Party Products
customers using Artificial Intelligence and
Machine Learning
• Digital Lead Generation

3. Servicing
• Seamless payments through UPI & IMPS
• BBPS enabled loan repayments
• GST and Tax payments

2. ONBOARDING
• DIY journey for deposits and loans
• Frictionless on-boarding
VIDEO BANKING: DIGITAL INCLUSION TO NEXT LEVEL

• Full KYC checks virtually

• First project enabled completely on
Cloud….
• Virtual Re KYC facility
• Personal discussion for loans
• Banking services

Customer

ADVANTAGES TO CUSTOMER
Video
Banker
Accessibility | Convenience
Personalization | Security
 VIDEO BANKING
Customer Proposition
o Customer Convenience
• Branch like experience
• Multi-lingual, 8am -8pm - 365 days
• Seamless Delivery of banking
• Secure with multi layer authentication
o Trust and Confidence
• Personalize, face to face interaction
• No IVR- Direct connect
Business Proposition
o Growth Opportunity
• Acquire in locations without branches
• Opportunity for cross sell or up sell
o Extended Banking Services (8am to 8pm)
• Reduces cost of customer acquisition
• Assisted a/c opening by co-browsing
• Virtual Personal discussions
• Tranche disbursement of housing loans
• Banking services for MSME
 PHONE BANKING
Customer Proposition
o Customer First Approach
• Services Offered in 8 Indian languages +
English
• 89% customers serviced in Indian languages
o 200+ services offered
• 24/7, Inhouse at Bangalore & Pune
• 150+ phone bankers
• Term deposits on the call for existing
customers
• Straight-Through-Process for select services
Business
BusinessProposition
Proposition
o Primary Channel with high productivity & low cost
• Loan on Phone, Third Party Products
• Repeat loans
• Capture proposal stage and transfer to branch
for further process
• Virtual Relationship Management
o Improve Customer Experience
• Short code services & favorite IVR self-service
menus
• Dedicated unit to support customers on digital
platforms
• Assisted services for semi-literate/ first time
users for adopting digital banking platforms
 “HELLO UJJIVAN”- PROMOTING DIGITAL INCLUSION
Getting industry recognition…

How is it different from Regular

How is it different from Regular
Mobile Banking?
Mobile Banking?
Innovation in Consumer Tech

Audio guides on
every screen Scan to Download Mobile Banking Solution
Check balance | pay EMI
Learn with pictures Money Transfer | FD/RD
Step-by-step

8 regional …and customer acceptance

languages

Explore the App 2,00,000+ downloads* and counting…

With your voice
11
EMI payments on Hello
English (₹ crore)

3
1
VOICE VISUAL VERNACULAR
Q3 Q4 May'23
*as of May’23
QR CODE: PROMOTING DIGITAL INCLUSION
Registrations ramping-up fast…

Empowering customers to # of customers 2,95,000

accept digital payments
1,98,324
1,43,792

59,956

Q1 Q2 Q3 Q4

…with transactions growing faster

9X MoM Growth since Inception
₹ crores

305

150

LAUNCHED IN JAN-22 70
26

Q1 Q2 Q3 Q4
 MOBILE BANKING: 53% MARKET SHARE
12
Touching more lives than others; Growing Faster than Industry
60% Ranking reflecting leadership^
53%
10
47% 50% Cards Transaction Cards Transaction
@ ATM @POS
8
40%
1st among SFBs 1st among SFBs
24th across Banks 34th across all Banks
6
30%
10
9
4 20%
Cards Issued ATM Uptime^
2 10% 1st among SFBs
One of the Highest
20th across all Banks
across all Banks
0 0%
Ujjivan SFBs (excl-Ujjivan)

Mobile App Users in lacs* *For Jan-Mar23 ^ Based on service Partner & Industry Watch
Source:
*Data as published by RBI for Mar-23 Bank-wise Transactions through NEFT/RTGS/Mobile Banking/Internet Banking https://www.rbi.org.in/Scripts/ATMView.aspx
*Industry-Wide Monthly Active Users (MUA) (As of March – 23) in SFB Universe… https://www.npci.org.in/what-we-do/upi/upi-ecosystem-statistics
 LEADERS IN DRIVING UPI USAGE

Ujjivan Ranks 31st across banks by volume

2nd among SFBs and Ranks 12th in Lowest Technical Decline

UPI Registration Count (In Lakhs) – FY23 UPI Transaction Count (In Mil) – FY23
Debit Trans. Count (In Mil) Credit Trans. Count (In Mil)

36
33
29
17
26

11
63
55
7 48
41

FY19-20 FY20-21 FY21-22 FY22-23 Q1 Q2 Q3 Q4

ROBOTIC PROCESS AUTOMATION DRIVING EFFICIENCIES
What is RPA?
Its a technology that can process repetitive tasks in large Report
volumes yielding cost efficiencies Generation/
Synthetic
AREAS Monitoring

ROBOT is part of following functions UPI & IMPS

Reconciliation

Operations

Micro Banking Employee

Salary
Service Quality Processing

Human Resources & much

Generation of
more Pre-Filled
Treasury Forms

Vigilance

IT Over 45 million transactions

processed through RPA (per month)
 EXPANDING DIGITAL REACH

Video Banking WhatsApp Banking Conversational AI (Chatbot)

ETA: Q2 ETA: Q3 ETA: Q3

One-stop solution for providing all Marketing outreach for increased Dynamic conversational features
banking services customer penetration for service and lead generation

Digital Account opening for term Offering IB/MB Service features on

deposit and saving account WhatsApp for easy access
integrated with VKYC process
E2E Cross-sell/Up-sell functionality

Lead generation module with CRM

integration for certain products
 80+ INITIATIVES PLANNED FOR THIS FISCAL…
Q1 FY24
• Fund Transfer Limit Enhancement
• Multi-Factor Authentication for
Activation
• Video Banking
MB/IB • Nominee Addition/Updating
• Loan Acknowledgement
• Language – English
• Aadhaar Authentication along with
existing debit card authentication
• UPI PSP App – Onboard USFB/Non-
USFB Customer
• GST Payments
BNB
Q2 FY24
• Home Loan Balance Transfer SR
• Home Loan Top-up SR
• Loans (HL, Vehicle, MSME )
• Language –Malayalam, Punjabi
• Cheque Services
• BNB Platform Revamp
• Integration with PFMS
Q3 FY24 Q4 FY24
• Complaint Registration • Investment Calculator
• Re-KYC facility • Chatbot
• View Upcoming Payments (BBPS)
• Debit Card Services like:- • Preapproved Loan for existing
• Turning on/off micro banking customers
• Block/unblock • Integration of Sampoorna lakshya
• Manage limit for ATM/ POS/ (RD) & Sampoorna Nidhi (FD)
eCommerce
• UPI PSP App – New Payment
Channel & Extend UPI handle to
TPAPs & Fintech partners
• Merchant Acquiring App
• Sound Box Feature for UPI
transactions
• Virtual Account • Enhancement / renewal of loans
 …WITH MANY MORE BEYOND FY 2023 – 24

• Instant in-principle approval of loans

• Fintech Tie ups
• DIY Current Account for Partnership/ Firms (Phygital)
• DIY – WhatsApp Banking A/c Opening
• DIY OD against FD / Loan against FD
• Investment & Insurance
• UPI Lite / International Payments
 Lending Responsibly
Environmental, Social & Governance
 ESG FOCUS AREAS AT UJJIVAN

• Responsible Lending • Corporate Governance

• Access to Finance RESPONSIBLE ACCOUNTABLE • Privacy & Data Security
• Digitalization • Risk Management

• Employee Welfare
EQUITABLE ENVIRONMENTAL • Energy Management
• Diversity & Inclusion
• Waste Management
• Community Wellbeing
 ESG FOCUS AREAS AT UJJIVAN

Lending via Rural • Expanding reach by presence across the country

Banking – INR. 1,194 Presence in 25 States
cr. OSP • Financial inclusion linked to products & services –Rural
Banking, Affordable housing etc.
100% Group Loan
93% Retention Rate
• Water and Sanitation loans are provided
lending to women
• Procurement from local suppliers borrowers with INR.
RESPONSIBLE 904 Cr. OSP
• Digital innovation, application programming interface

Reached 1.4 Mn (API) banking, etc.

through Financial 37K - Customer Base for
• Financial Literacy Programs ( Across Microbanking, Rural Affordable Housing
Literacy programs
& emerging business – MSME )

100% Compliance to 19% Gender Diversity

Human Rights • Great place to Work Certified
• Focus on Diversity & Inclusion at Workplace
Employment to
• Multiple CSR programs on Public Amenities, Specially-abled people,
CSR Reach of 5Mn & EQUITABLE with 27% Female
counting Health & Hygiene, Promoting Education, Social Welfare,
among the lot
etc.
 ESG FOCUS AREAS AT UJJIVAN

• ESG Oversight at Board Level. Primary agenda under

Risk Management Committee of Board
3.7 metric tonnes
30% Diversity • Advanced Privacy & Data Security protocols in place of e-Waste disposed
at Board Level
• Climate Risk Assessment initiated – Physical & Transition ACCOUNTABLE safely
risks as per TCFD Framework
• BRSR Report FY23 to be launched as per regulations
100% Employees along with Sustainability Report as per GRI framework 2.28 tonnes
trained on IT Emissions*/Cr
Security turnover
• E-waste management through authorized recyclers and
reuse of electronic devices to minimize e-waste
• Successful pilot on Renewable Power at a rural branch in
Karnataka to support as a backup source. PoC underway ENVIRONMENTAL 100% resolution
Zero Data
of Customer
breaches at 2 more branches @ Rajasthan (Bamanwas Chauhan & Complaints
Shyampura)
• No use of plastic water bottles & paper cups at Head
Office & Regional Offices

*Scope 1 & 2
 WAY AHEAD
SUSTAINABLE PROFITABLE GROWTH
 ASSETS: DRAWING LESSONS FROM EXPERIENCE
LEARNINGS
Microbanking Affordable Housing MSME Financial Institutions

• Expanding customer • Lender of Choice in our • Transitioning to • Supports overall RoE

base – Deeper digital focus markets “relationship model” with good returns and
penetration with from “transaction secured book
initiatives like Hello, • Among Top – 5 Affordable model”
virtual relationship Housing players in terms of • Secured exposure to
managers, QR Code, UPI disbursement • Strong product base “other retail assets”
etc. with full range serving
• Digital sourcing, the entire MSME • Comprehensive multi-
• Customer graduation to onboarding, servicing customer ecosystem product relationship
Individual Loans and
• Robust collections • Risk-priced pricing with
other secured lending
mechanism with strong strong credit
products
credit underwriting, NPA underwriting; detailed
• 360o relationship with less than 1% EWS & portfolio
full-range of financial monitoring
• Operational efficiency,
products including
focus on turnaround time • Expanding capabilities
deposits, insurance,
payments etc. through strategic tie-ups

• Disrupting the market • Meaningful player in the

with “Assisted to self- semi-formal segment
service” model

Balanced growth with rising secured mix, strong credit quality

LIABILITIES: DRAWING LESSONS FROM EXPERIENCE
LEARNINGS

Multi Channel need Full Bouquet of Need of establishing

Strong service quality
for new age customer product and services Ujjivan brand as bank

Training, CRM Next, smart
statement, other tech
upgrade, expanding
capacity of IBMB, UPI,
platforms, upgrading BNB
Phone Banking, Product suite expansion- PAN India and Regional
expanding services, Maxima SA, Maxima CA campaigns, Brand building
video banking, V KYC Privilege CA, Digital FD, through radio, TV &
Digital SA, BG, OD newspaper advertisement,
products, NPS, Demat 3 in placing Hoardings/signages
1, ASBA, Tax Solution having high visibility in rich
catchment area

FY23: ONLY 20BPS INCREASE IN COST OF FUND, GOING AHEAD: FOCUSING ON REDUCING
DESPITE MULTIPLE REPO HIKES COST OF FUND

Early to anticipate interest rate cycle Reducing interest rate premium over larger peers
Took rate hike ahead of peer and plateaued Investing in CA franchise
when industry took hike in second-half of FY23
 NOT LOSING SIGHT OF COST MANGEMENT
▪ Robotics Process Automation
▪ Increase in Productivity
▪ IT systems, Loan origination systems,
mobility solutions
▪ Video-KYC
▪ Video-Banking, Phone Banking
▪ Training
▪ Technology-based cost initiatives
▪ Travel & conveyance
▪ Printing, Postage, others
▪ Cashless Collections
▪ Hub-based secured loan processing
▪ Hello Ujjivan
▪ Repeat Loan
▪ Collection cost
▪ Process Simplification
▪ Straight through processes
▪ Vendor management
▪ Voucher processing module
▪ Others – Housekeeping, admin etc.
 BUILDING ON TO THE STRONG PLATFORM
Probably indicating RoA sustainable at
3%???

ASSET DEPOSITS RATIOS

2023-24

Gross Loan Book Growth- >25%

Deposit Growth: >30% NIM: >9.0%
Credit Cost: <100bps
CASA growth: >35% RoE: >22%
Secured Book: Approx 32%
2024-26

Gross Loan Book Growth- >25%

CD Ratio: 80%
Credit Cost: <150bps RoE: >20%
CASA Ratio: 35%
Secured Book: Approx. 40%
 THANK YOU

Investor Relations:
Deepak Khetan | deepak.khetan@ujjivan.com | +91 7045792752
Madhusudan Dalmia | madhusudan.dalmia@ujjivan.com | +91 8391831703