#1Business Update: FY-20 May 2020 J JANA Jana Small Finance Bank#2Key Highlights J Jana Small Finance Bank 2#3Key Highlights *9,652CT *11,299 cr 25% +130% +73% FY19: 15% DEPOSITS AUM *1,044cr NETWORTH FY20: *30cr FY19: (1,949 cr) PAT-FY20 SECURED LOANS 1.3% FY19: 4.4% NNPA* *1,440cr +161% NET INCOME 2.8% FY19: 8.1% GNPA* 19.3% Tier-1: 13.1% *52.cr 271% 585 Q-Q +58% States/UTS: 22 CRAR PAT-Q4 FY20 LCR STOREFRONTS J Jana Small Finance Bank 3#4Key Highlights Q4-FY 20 • • • • • • J Jana Small Finance Bank PAT for the Q4-FY 20 is Rs. 52 crs despite a difficult March month due to lockdown. PAT was up 58% compared to Rs. 33 crs in Q3-FY 20. Customer Deposits were up 6.6% Q-Q at Rs. 9,652 crs as of 31st Mar 2020 compared to Rs. 9,052 crs as on 31st Dec 2019. AUM grew 13% Q-Q to Rs. 11,299 crs as at 31st Mar 2020 compared to Rs. 9,981 crs in 31st Dec 2019. SMA-0 to SMA-2 book was Rs. 158 crs of which Rs. 52 crs is fully secured. Provision made for the same is in excess of RBI requirements. The asset book continues to diversify with 25% of the book being secured - up from 23% in Dec-19. Received Rs. 1,000 crs Re-finance from NABARD and Rs. 200 crs Term loan from IDFC First Bank during the quarter. 4#5Key Highlights - FY 20 • PAT for the FY 20 is Rs. 30 crs compared to loss of Rs. 1,949 crs in FY 19. • • Customer Deposits at Rs. 9,652 crs up 130% YoY from Rs. 4,199 crs. AUM at Rs. 11,299 crs - up 73% YoY from Rs. 6,520 crs. J Jana Small Finance Bank • • • • GNPA at 2.8% as against 8.1% in Mar-19. NNPA at 1.3% as against 4.4% in Mar-19. The asset book continues to diversify with 25% of the book being secured - up from 15% from Mar-19. Capital adequacy at 19.3% as at 31st Mar 2020. Converted 97 asset centers to full fledged bank branches during the year. Total Bank branches now at 316 and asset centers at 269. GNPA and NNPA are calculated after adding back IBPC to AUM. 5#6Financial Summary J Jana Small Finance Bank 6#7Financial Summary: Sustainable Profitability Trend Growth Q4-FY 20 Rs. crs Q3-FY 20 Q2-FY 20 Q1-FY 20 FY-20 FY-19 Y-O-Y % Net Income 443 368 328 300 1,440 552 61% Operating Expenses 342 283 264 271 1,161 1,128 3% Operating Profit 100 85 64 29 279 (576) NA Provisions 49 53 57 90 249 1,373 -82% PAT 52 33 7 (61) 30 (1,949) ΝΑ AUM 11,299 9,981 8,550 7,407 11,299 6,520 73% Deposits 9,652 9,052 7,503 5,653 9,652 4,199 130% NNPA%* 1.3% 1.5% 1.8% 3.0% 1.3% 4.4% *NNPA are calculated after adding back IBPC to AUM. Jana Small Finance Bank 7#8Balance Sheet : Getting healthier by Quarter Mar-20 Dec-19 Sep-19 Jun-19 Mar-19 Rs. Cr Capital & Reserves 1,044 990 620 612 673 Deposits 9,652 9,052 7,503 5,653 4,199 Borrowings 2,899 1,943 2,716 3,532 4,086 Other Liabilities 551 500 430 435 487 Total Liabilities 14,147 12,485 11,269 10,231 9,446 Net Advances* 9,954 8,672 7,587 6,688 6,217 Investments 2,650 2,564 2,586 2,375 1,468 Cash in Hand & Bank 980 653 509 560 1,169 Other & Fixed Assets 561 595 587 609 593 Total Assets 14,147 12,485 11,269 10,231 9,446 CRAR% 19.3% 21.0% 15.5% 16.7% 18.8% *Net of IBPCs J Jana Small Finance Bank 8#9Well Capitalised Mar-20 Dec-19 Mar-19 Total Risk Weighted Assets 7,671 6,729 5,388 Tier I Capital 1,006 958 661 Tier II Capital 472 454 352 Total Capital 1,478 1,412 1,013 J Key Investors TPG Morgan Stanley HARBOURVEST H▼ AMANSA capital Jana Small Finance Bank B BAJAJ | Allianz ICICI Lombard -GENERAL INSURANCE - CRAR 19.3% 21.0% 18.8% Tier I CRAR 13.1% 14.2% 12.3% Tier II CRAR 6.2% 6.8% 6.5% LIFE ICICI PRUDENTIAL#10LIABILITIES J Jana Small Finance Bank 10#11Cost of Funds decreasing with changing liabilities mix 10,000 11.6% 11.5% 8,000 7,662 6,000 4,000 2,000 6,714 430 12 APR-18 JUN-18 -Deposit - Borrowing -COF 10.9% 10.8% 10.5% 5,653 7,503 J Jana Small Finance Bank 12.0% 9,052 9,652 11.5% 11.0% 10.5% 5,267 4,199 10.0% 9.8% 4,579 9.5% 4,086 9.3% 9.5% 2,536 1,824 3,532 2,899** 2,716* 9.0% 8.9% 1,943 8.5% 1,699$ SEP-18 DEC-18 8.0% MAR-19 JUN-19 SEP-19 DEC-19 MAR-20 *Includes pre-payment of ~Rs. 542 crs in FY20 ** New re-finance from NABARD of Rs. 1,000 crs in Q4-FY 20 and Rs. 200 crs Term Loan $ Borrowings excluding new re-finance and term loan 11#1296% term deposit book is > 3 months tenor and 58% < 2 crs 4% 8% 21% 2% 65% Based on tenor 2% 27% Based on ticket size 18% 9% 59% 15% 5% 41% 6% 10% 53% - 18% 7% 8% 18% 4% Jun-18 Mar-20 < 90 days 91 - 180 days 181 days to 1 years 1-2 Years 2-3 Years > 3 years Jun-18 Mar-20 < 1 cr 1-2cr 2-5cr 5-10cr > 10cr * Term deposits - Rs. 8,938 crs | CASA - Rs. 714 crs | Total deposits - Rs. 9,652 crs Data based on Balance per account Jana Small Finance Bank 12 22#13Term deposit sourcing - Distributed across various states Maharashtra Tamil Nadu Karnataka West Bengal New Delhi Uttar Pradesh Haryana Assam Punjab Rajasthan Madhya Pradesh 13.3% 12.3% 11.7% 10.9% 7.6% 6.4% 5.7% 5.6% 5.3% 3.0% 2.8% Odisha 2.6% Bihar 2.3% Uttarakhand 2.2% Chandigarh 2.2% Gujarat 2.0% Jharkhand 1.6% Chattisgarh 1.3% Telangana 0.5% Puducherry 0.3% Sikkim 0.1% Goa ■ 0.1% J Jana Small Finance Bank 13#14ADVANCES J Jana Small Finance Bank 14#15Product Offerings | Assets 1 2 Business Segment Group Loans Agricultural and allied Loans 3 Individual & Micro Business Loans 4 Secured Loans to Businesses Affordable Housing Loans 6 Gold Loans Features Low Income group women Average ticket size ~Rs 39,000 Batch size 3-25 Landless farmers, small & marginal farmers Average ticket size ~Rs 50,000 Batch size 3-20 Business Loan: Entities with a turnover up to INR 50 lakh Average ticket size Rs. 1.7 lakh Daily, Weekly & Monthly Collection cycle Individual loan: Customer upgrade program from group loans. NACH & cash collections Individual Loans up to Rs. 1.25 lakh. Average ticket size Rs 53,000 Business entities with a turnover of Rs. 50 lakh -10 crore Retail, Manufacturing units, Wholesalers, Traders SI, NACH & PDC collections Average ticket size Rs 25 lakhs; LTV - 50% Individuals low income group with PMAY subsidy Average ticket size Rs. 15.6 lakh SI & NACH collections: LTV - 42% Individuals Average ticket size Rs 39,000 75% LTV Bullet & EMI/NACH collections J Jana Small Finance Bank 15#16Increasingly Diversified Loan Book As at 31st Mar 2020 Mar-20 Dec-19 Mar-19 Q-Q Y-Y Total AUM (Rs. Cr) 11,299 9,981 6,520 13% 73% Group Loans 5,139 4,703 3,834 9% 34% Agricultural and allied Loans 1,959 1,602 631 22% 210% Individual & Micro Business Loans 1,345 1,390 1,054 -3% 28% Total Unsecured 8,444 7,695 5,519 10% 53% Secured Loans to Businesses 1,525 1,208 772 26% 98% Affordable Housing Loans 740 561 80 32% 825% Gold Loans 165 149 65 11% 154% Loans against FD 295 243 81 21% 264% Term Loans to NBFC 130 124 0 5% ΝΑ Total Secured 2,855 2,286 1,001 25% 185% Share of Secured% 25% 23% 15% J Jana Small Finance Bank 16#17NPA ratios have been steadily decreasing 8.1% 4.4% Mar-19 *GNPA & NNPA is after adding back IBPC to AUM. 6.9% 2.8% -GNPA ratio -NNPA ratio 4.2% * 1.8% * 3.5% * 2.8%* * 1.5% 1.3% * Jun-19 Sep-19 Dec-19 Mar-20 J Jana Small Finance Bank 17#18Statewise AUM - Diversified national presence Tamil Nadu Karnataka Maharashtra Madhya Pradesh Gujarat West Bengal Haryana Rajasthan Odisha Bihar 13.8% 7.3% 6.9% 6.7% 4.7% 3.7% 3.2% 3.0% New Delhi 2.8% Punjab 2.5% Chattisgarh 2.0% Puducherry 1.8% Jharkhand 1.5% Assam 1.4% Uttar Pradesh 1.4% Others 0.3% 16.8% 20.2% J Jana Small Finance Bank 18#19Board of Directors J Jana Small Finance Bank Ramesh Ramanathan Non-Executive Chairman The Founder of Janalakshmi, Ramesh, has to his credit a strong international banking experience, creating innovative institutional products, working with cutting- edge technology and risk management systems. Ajay Kanwal MD & CEO Ajay Kanwal is a senior consumer and commercial banker with 27 years' experience across Asia. He has held various leadership positions throughout his banking career and has a proven track record of planning and executing strategy to deliver P&L in a multicultural and volatile emerging market environment. R. Ramaseshan Independent Director R. Ramaseshan has an extensive experience in the Government as an officer of the IAS, and in the private sector as the MD & CEO of a commodity exchange. Expertise in Accountancy, Agriculture & Rural Economy, Economics and Finance & Law Vijayalatha Reddy Independent Director Vijayalatha Reddy joined the IFS in 1975. She was India's Ambassador to Portugal in 2006 and to Thailand in 2004. Expertise in Information Technology and Human Resources Vikram Gandhi Independent Director Vikram Gandhi is on the Board of Grameen Foundation. He is a founding member of Harvard University's South Asia Initiative and founder of Asha Impact. Expertise in Accountancy and Banking & Finance Puneet Bhatia Non Executive and Non Independent Director Puneet Bhatia is the Co-Managing Partner for TPG Capital Asia and the head of TPG Capital India. He has created and led over a dozen transactions and invested close to $2bn for TPG Capital in India. Chitra Talwar Independent Director Chitra Talwar has over three decades of corporate experience in two leading consumer products companies, Britannia and PepsiCo. She worked in India and extensively in International markets, based out of New York 19#20Senior Advisors R. Gandhi Senior Advisor R. Gandhi, former Deputy Governor of RBI, is a financial sector policy expert and advisor. His expertise includes banking and non-banking regulation, payment systems, financial markets, FinTech and currency management. Tamal Bandyopadhyay Senior Advisor Tamal is a reputed journalist, known for his weekly column on banking and finance, Banker's Trust. He has authored various books on finance. Tamal currently writes for the Business Standard. J Jana Small Finance Bank 20 20#21Thank You J JANA Jana Small Finance Bank 21