Investor Presentation Q1 FY21 July 20 th , 2020 1
Performance Highlights (Q1 FY21) ▪ PAT ₹ 393 Cr, YoY 14% Profitable operations ▪ ROAA 6.3%, ROAE 28.3% ▪ Positive operating leverage; Cost to income 47.2% (Q1 FY20 53.6%) ▪ Market share*: Cards 18.3% (Q1 FY20 17.8%), Spends 19.6% (Q1 FY20 17.2%) Improving market share ▪ Growing above industry average ▪ 20% YoY growth in cards; 10% YoY growth in Receivables Sustaining growth ▪ Interest Income driving revenue growth, constitutes 66% of revenue from operations ▪ GNPA @ 1.4% at Jun20 (Q1 FY20 2.7%) Asset quality ▪ No change in COVID provisions created in Mar’20 ▪ Diversified borrowings mix, adequate unutilized banking credit available Adequate liquidity and CAR ▪ Healthy CAR @ 24.4%, T-1 @ 20.1% 2 • As per RBI report available till Apr’20
Performance Highlights (Q1 FY21 Vs Q1 FY20) PAT ROAA ROAE CAR ₹ 393 Cr 6.3% 28.3% 24.4% Tier 1 20.1% 14% 11 bps 783 bps 551 bps [₹ 346 Cr] [6.5%] [36.1%] [ 18.9 %] CIF SPENDS RECEIVABLES GNPA 1.06 Cr ₹ 19,085 Cr ₹ 23,330 Cr 1.35 % 20% 37% 10% 133 bps [0.88 Cr] [₹ 30,174 Cr] [₹ 21,231 Cr] [2.68%] Figures in [ ] represents Q1 FY20 3
Key Portfolio Trends Growth Metrics Moratorium Impact & Collections Moratorium Accounts New Accounts Corporate Spends Moratorium Balances (‘000) (‘000) ( ₹ Cr) (₹ Cr) 10.5 74 6.0 41 2.6 22 7,083 19 6,669 0.9 181 1,251 1,207 1,244 677 80 556 1,471 27 150 Apr-20 May-20 Jun-20 Apr-20 May-20 Jun-20 Apr-20 May-20 Jun-20 Apr-20 May-20 Jun-20 Receivables Retail Spends Income from fees & services Recoveries ( ₹ Cr) ( ₹ Cr) ( ₹ Cr) ( ₹ Cr) 307 12 11 0.9 248 182 23,330 25,300 21,394 21,931 0.7 6 0.4 118 7,427 5 21 34% 32% 30% 32% 331 0.2 5,648 11 185 3,533 38% 152 45% 49% 49% 6 25% 20% 30% 17% Apr-20 May-20 Jun-20 Pre-COVID Apr-20 May-20 Jun-20 Apr-20 May-20 Jun-20 Apr-20 May-20 Jun-20 Transactor Revolver EMI Pre-COVID refers to Average of Dec19-Feb20 Monthly Daily level Current 4 Daily level Pre COVID
Market Share Steadily increasing our share of pie in the industry Cards in force Spends 19.6% 18.3% 18.3% 17.9% 17.6% 17.1% 16.7% 16.7% 13.2% 15.3% 14.8% 11.9% FY16 FY17 FY18 FY19 FY20 1M FY21 FY16 FY17 FY18 FY19 FY20 Apr'20 As per RBI report available till Apr’20 5
New Accounts and Cards-in-force Cards-in- force (‘000) New Accounts (‘000) 10,602 851 10,548 797 8,820 288 Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 Channel wise Split Channel wise Split 61.8% 61.8% 61.4% 55.3% 58.0% 53.7% 42.0% 44.7% 38.6% 46.3% 38.2% 38.2% Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 SBI Sourcing Open market sourcing SBI Sourcing Open market sourcing 6
Portfolio Growth Spends ( ₹ Cr) Receivables ( ₹ Cr) 32,429 24,141 23,330 30,174 19,085 21,231 Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 Spend per Card ( ₹ ‘000 ) Receivable per Avg Card ( ₹) 24,072 22,888 22,005 141 126 72 Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 Receivable Mix % 30 day spend active rate % 54.9% 53.5% 31% 32% 30% 40.4% 38% 40% 45% 31% 27% 25% Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 Transactor Revolver Term 7
Portfolio Insights Age profile By City Tier Salaried Category Occupation New Sourcing For Q1 FY21 17% 21% 24% 25% 32% 38% 11% 47% 79% 21% 33% 51% Govt/PSU Cat A Cat B Salaried Self Employed Under 30 31-45 >45 Tier 1 Tier 2 Tier 3 Others 0.87 1.26 0.92 1.17 As on 30th Jun 2020 0.65 15% 10% 22% Cards- in- Force 1.25 0.87 30% 35% 14% 39% 1.06 52% 24% 85% 48% 26% 0.93 0.94 1.01 0.98 Under 30 31-45 >45 Salaried Self Employed Govt/PSU Cat A Cat B Tier 1 Tier 2 Tier 3 Others 8 * Re-categorization of cities Indexed 30+ delinquency
Retail Spend Insights Spends % Growth % Growth Online Retail Spend % Categories Online Point of Sale 56.1% Category 1 44.9% 44.2% 43.0% 23% 32% Departmental Stores, Fuel, Health, 36.6% Utilities, Education & Direct Marketing Category 2 21% 41% Consumer durables, Apparel, Jewellery & Restaurant FY17 FY18 FY19 FY20 Q1 FY21 Category 3 Travel agents, Hotels, Airline & 78% 85% Railways % growth of Jun’20 over average of Dec’19 to Feb’20 9
Figures in ₹ Cr Financial Results Q1 FY20 Q4 FY20 Q1 FY21 YoY QoQ FY20 PAT Total Income 2,304 2,510 2,196 -5% -13% 9,752 Finance Costs 302 334 275 -9% -18% 1,301 Credit Costs 397 838 485 22% -42% 1,940 YoY% 14% QoQ% 371% Operating Costs 1,073 1,226 907 -15% -26% 4,781 PBT 533 112 528 -1% 371% 1,730 393 346 84 Cost to Income 53.6% 56.3% 47.2% (635)Bps (909)Bps 56.6% Gross NPA 2.7% 2.0% 1.4% (133)Bps (66)Bps 2.0% Q1 FY20 Q4 FY20 Q1 FY21 ROAA 6.5% 1.3% 6.3% (11)Bps 505Bps 5.5% ROAE 36.1% 6.5% 28.3% (783)Bps 2,173Bps 27.4% EPS 3.71 0.89 4.19 13% 371% 13.3 10
Explaining Returns Q1 FY20 Q4 FY20 Q1 FY21 YoY QoQ Interest Income 19.6% 21.0% 22.8% 318 bps 177 bps Fees and other Income 22.1% 16.9% 12.0% -1011 bps -491 bps Recoveries 1.3% 1.2% 0.6% -69 bps -57 bps Total Income 43.1% 39.1% 35.4% -763 bps -371 bps Finance Costs 5.6% 5.2% 4.4% -121 bps -78 bps Net Revenue 37.4% 33.9% 31.0% -642 bps -292 bps Credit Costs 7.4% 13.1% 7.8% 42 bps -524 bps Operating Costs 20.1% 19.1% 14.6% -541 bps -447 bps PBT 10.0% 1.7% 8.5% -143 bps 678 bps Taxes 3.5% 0.4% 2.2% -132 bps 173 bps ROAA 6.5% 1.3% 6.3% -11 bps 505 bps Avg Assets/Avg Equity 5.6 5.0 4.5 ROAE 36.1% 6.5% 28.3% -783 bps 2,173 bps 11
Figures in ₹ Cr Revenue Growth Composition Q1 FY20 Q4 FY20 Q1 FY21 YoY QoQ Revenue from operations Revenue from Operations 2,068 2,433 2,152 4% -12% Q4 FY20 Q1 FY21 Q1 FY20 Other Income 236 77 43 -82% -44% Total Income 2,304 2,510 2,196 -5% -13% 14% 18% 20% Finance Costs 302 334 275 -9% -18% 12% Net Revenue 2,002 2,176 1,921 -4% -12% 51% 20% 55% 23% 8% 66% Interest Income Yield 21.2% 22.1% 23.9% 269 bps 175 bps 7% 7% Cost of Funds 8.2% 7.5% 6.6% (158) Bps (88) Bps Net Interest Margin 15.1% 16.6% 19.2% 414 bps 260 bps Interest Income Subscription based Spend based Instance based & other 12
Figures in ₹ Cr Capital Adequacy and Borrowings Borrowing Composition (Jun’20) Cost of funds 8.2% 7.5% 6.6% 28% Q1 FY20 Q4 FY20 Q1 FY21 57% Capital Adequacy Ratio 15% 24.4% 22.4% 20.1% 17.7% 18.9% 14.3% Bank Lines Commercial Papers Debentures Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 Total CAR Tier-1 Credit Ratings Leverage ▪ Short Term : A1+ by CRISIL & ICRA ▪ Long Term : AAA/Stable by CRISIL & ICRA 6.2 4.7 4.0 Q1 FY20 Q4 FY20 Q1 FY21 13
Figures in ₹ Cr Structural Liquidity (ALM) Asset Liability Maturity profile – Jun’20 Inflows Outflows 6,311 4,860 ▪ Well matched ALM 3,334 3,056 2,983 2,784 2,757 ▪ 2,661 ₹ 4,978 Cr (30%) of sanctioned bank 2,555 2,389 2,333 2,254 2,200 lines unutilized and available for 1,750 1,565 1,560 1,443 1,411 draw down as at Jun’ 20 527 4 1-7 D 8-14 D 15-30/31 D 1-2M 2-3M 3-6M 6-12 M 1y-3y 3y-5y >5 yr Cumulative mismatches 356 478 557 836 1,158 4,268 5,641 5,273 4,750 - 14
Figures in ₹ Cr Operating Costs Positive Operating Leverage Q1 FY20 Q4 FY20 Q1 FY21 YoY QoQ Employee Cost 104 133 112 7% -16% YoY 11% QoQ 14% Depreciation 29 29 28 -5% -3% -4% CSR 0 17 6 -62% -12% -15% Other operating expenses 939 1,047 761 -19% -27% -26% Operating Costs 1,073 1,226 907 -15% -26% Cost to Income % 53.6% 56.3% 47.2% (635)bps (909)bps Income growth Opex growth 15
Figures in ₹ Cr Asset Quality Key highlights Q1 FY20 Q4 FY20 Q1 FY21 YoY QoQ Impairment and losses 397 838 485 22% -42% 2.68% 2.01% GNPA 1.35% Gross Loss on Loans 396 838 485 22% -42% Gross write off 240 351 405 69% 15% Q1 FY20 Q4 FY20 Q1 FY21 Provision 156 (3) 80 -49% -2760% 72.0% COVID provisions 489 68.3% 67.2% Recoveries (70) (76) (38) -46% -50% PCR Net Credit Costs 326 762 447 37% -41% Q1 FY20 Q4 FY20 Q1 FY21 Net Credit Costs( Ex-COVID) 37% 64% 326 273 447 Gross Credit Cost % 8.0% 13.7%* 8.2% 21Bps -552Bps 6.0% 5.5% Net Credit Cost % 6.6% 12.5%# 7.5% 97Bps -492BPS 3.6% ECL % *Ex COVID: 5.7%; # EX COVID 4.5% Q1 FY20 Q4 FY20 Q1 FY21 Impairment and losses also includes provisions on other assets 16
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