Corporate Presentation - April 2021 - Shivalik Bank
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Corporate Presentation
April 2021
01
SHIVALIK MERCANTILE CO-OPERATIVE BANK
BRIEF OVERVIEW
2
01 1.1 AN OVERVIEW
▪ Granted a license to conduct banking operations in Saharanpur district by Reserve
Bank of India in September, 1997. The bank commenced operations in September,
1998.
Overview ▪ The Bank successfully acquired a co-operative bank in Madhya Pradesh in 2010
thereby becoming the first Multi-state Urban Co-operative Bank of Uttar Pradesh.
▪ Presently, the Bank’s area of operation extends to Uttar Pradesh, Delhi and parts of
Madhya Pradesh and Uttrakhand.
▪ The Bank is registered in Saharanpur, with the Head-office split between Saharanpur
Headquarters and Noida. The Bank presently has 31 branches and 4 business correspondent offices
spread over the states of Uttar Pradesh and Madhya Pradesh.
▪ Being the first and largest multi-state co-operative bank of Uttar Pradesh, Shivalik Bank
offers an unparalleled range of services which places banking at the fingertips of their
Strengths consumers. The Bank is leveraging technology and its knowledge to extend its reach
into the last mile and offer financial services for the masses.
3
01 1.2 VOLUNTARY TRANSITION TO SFB - INTRODUCTION
• On 27 September 2018, RBI released guidelines permitting the voluntary transition of Urban Co-operative Banks
(UCBs) into Small Finance Banks (SFBs).
• Shivalik Bank received in-principle approval from the RBI to transition to a Small Finance Bank on 6 January 2020 –
this is testament to the strength of the business model and internal control systems.
• Shivalik Bank received the license to commence banking business as a Small Finance Bank on 1 January 2021, well
ahead of the 18 month timeline permitted by the RBI.
• The management at Shivalik believes it is well prepared to commence business as a SFB in April 2021 (subject to
RBI confirmation).
▪ Shivalik is the first UCB in India to get the license from RBI to transition to a Small Finance Bank
4
01 1.3 VISION
To be a trusted financial services provider and model employer focusing on small and
underserved households through the delivery of digitally focused affordable products and
services and differentiated customer service experience.
5
01 1.4 VALUES 6
02
SHIVALIK IN NUMBERS
7
02 2.1 CUSTOMER METRICS
> 4.5 Number of Digital ~35.0
Unique Customers
Lakh Transaction Lakhs
Paperless Accounts
Financial Inclusion
> 40% Opened as % of ~95%
Customers
Total SB Accounts
Customers active on Digital Transactions
Mobile or Internet ~20% as % of Total >80%
Banking Transactions
YoY Growth in
Customers with >1.5
Internet & Mobile >150%
Shivalik Debit Card Lakh
Banking Transactions
▪ Built a successful banking franchise underpinned on digital payments and financial inclusion
Note – Figures shown for and as of FY 2020-21 (as relevant). FY 2020-21 financial figures are based on unaudited results
8
02 2.2 CAPITAL
Net Worth (₹ Crores) Capital Adequacy Ratio (CRAR %)
91.90
77.21 79.61 15.07
65.69 65.65
13.07 13.13
12.68 12.80
2016-17 2017-18 2018-19 2019-20 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21
▪ Combined net worth including capital ▪ Combined CRAR on Basel II basis
invested in SSFB is above ₹ 100 Cr including SSFB capital would be > 18%
▪ Significant capital headroom underpins the strength of the balance sheet
Note – 2020-21 financial figures are based on unaudited results
9
02 2.3 CORE BUSINESS
Deposits (₹ Crores) Advances (₹ Crores)
1,244.5
1,139.8 804.9
1,051.2 715.2 718.6
917.0 953.4
611.6
559.5
2016-17 2017-18 2018-19 2019-20 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21
▪ Continuous growth despite headwinds ▪ Disciplined approach to credit growth
▪ Core business continues to expand despite economic and industry challenges
Note – 2020-21 financial figures are based on unaudited results
1002 2.4 CREDIT RISK
Gross NPA (%) Net NPA (%)
3.9 2.4
1.9
2.8
2.3 1.4 1.5
2.1 1.2
1.6
2016-17 2017-18 2018-19 2019-20 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21
▪ Gross NPA in FY 20-21 includes ~1.6% of increment from pro-forma NPA being marked NPA at
31 March 2021 as per Hon’ble SC order
▪ Majority of this increment is from secured loans where recovery process has been initiated
post year end. Significant reductions expected in Q1 21-22
11 Note – 2020-21 financial figures are based on unaudited results02 2.5 CREDIT RISK
Credit Portfolio Split Key Credit Portfolio Highlights
Microfinance, % Loans Secured by
10.4%
Cash Credit / ~ 90%
Overdraft, 14.6% Collateral (Remaining portfolio is MF)2
Gold Loans,
5.0%
Loan Average Ticket Size ₹ 3.8 Lakhs
against
Deposit,
7.2% Small Lending % > 50%
(Upto ₹25 Lakhs per borrower)
Retail 1
Loans, Business and Business : 43%
62.8% Individual Loans Split Individual : 57%
▪ Well diversified portfolio with minimal concentration risk due to low average ticket size and
almost no unsecured exposure
1 Retail Loans refers to Term Loans includes loans to MSME & other retails businesses and individual loans such as housing, asset purchase and agriculture.
12 2 The remainder of the portfolio is of Microfinance which is also backed by joint liability guarantees. The bank is not engaged in unsecured lending activities.02 2.6 PROFITABILITY
Net Interest Margin (NIM %) Credit – Deposit Ratio (CD Ratio %)
4.34 4.34 4.33 68.04
4.15 64.15 64.68
63.05
4.04 61.03
2016-17 2017-18 2018-19 2019-20 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21
▪ NIM of >4% is in line with leading banks ▪ Risk appetite driving credit allocation
▪ NIM in excess of 4% in line with the gold standard for the banking industry
Note – 2020-21 financial figures are based on unaudited results
1302 2.7 PROFITABILITY
EBITDA (₹ Crores) Operating and Net Profit (₹ Crores)
17.8 17.6 Pre-provisioning Operating Profit
Net Profit after Tax
12.3
9.6 10.3
8.8
7.3
5.4 4.8
10.0
3.1
3.2 3.8 2.3 3.3
2016-17 2017-18 2018-19 2019-20 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21
▪ Major transformations completed from
▪ Focussed on sustainable EBITDA growth
internal accruals
▪ Profitable since inception, the bank has always focused on return to shareholders
▪ Increased branch count by 50% and completed a technology transformation since 2017
Note – 2020-21 financial figures are based on unaudited results
1403
OPERATIONAL OVERVIEW
1503 3.1 BRANCH AND BUSINESS BANKING
Description Status for Shivalik
• Branches : 31
Banking Outlets which includes full service branches, on and offsite ATMs and other • ATMs : 57
banking centres • BC Centres : 4
Large Customer Base ~ 4.0 Lacs
Major retail banking deposit and loan products ✓
CASA ratio (Low Cost Deposits) ~ 30%
Significant Business Size ~INR 2,050 Cr
Profitable and dividend paying track record Since Inception
▪ Strong track record, exceptional CASA ratio and adequate business size poised to scale further
1603 3.2 PAYMENT SYSTEMS
Description Status for Shivalik
NEFT/RTGS ✓
Debit Cards for use across ATMs in India ✓
POS (Point of Sales) machines ✓
E-Commerce Transactions ✓
IMPS, Aadhar Enabled Payment System (AePS), Aadhar Bridge Payment System (ABPS) ✓
NACH, Bill Payments and cheque clearing ✓
UPI ✓
▪ The bank is active on almost all payment channels prevalent in India.
1703 3.3 CHANNEL BANKING
Description Status for Shivalik
Internet Banking ✓
Mobile Banking ✓
Instant Loan Origination on Digital Channels ✓
Tablet Banking through micro ATMs (m-ATMs) ✓
Distribution of insurance products ✓
Banking centres and Village Level Entrepreneurs ✓
Modern and interactive website ✓
▪ Multiple channels for customer convenience – a good mix of ‘brick’ and ‘click’ offerings.
1803 3.4 BUSINESS OPERATIONS & RISK MANAGEMENT
Description Status for Shivalik
Centralized teams for account opening, credit appraisal and disbursal ✓
Dedicated internal audit, risk management and credit monitoring units ✓
Custom designed Loan Origination Platform suited to small lending needs ✓
Anti-Money Laundering Software for PMLA norms ✓
CTS and centralized clearing activities ✓
Policy development teams across verticals ✓
Adequate insurance coverage incl. cyber risk ✓
▪ Strong risk management ethos and internal control systems are embedded in our work culture
1903 3.5 TECHNOLOGY PLATFORM
Description Status for Shivalik
Core Banking Solution (Powered by Infosys Finacle on Cloud) ✓
Internet and Mobile Banking ✓
Paperless Account Opening ✓
Cash Recyclers at ATM locations ✓
Payments Switch & Fraud Risk Management ✓
Internal Business Process Automation such as Office 365, Audit software and others ✓
▪ Best in class technology platform shows the commitment to keep pace with the modern
advancements.
2003 3.6 OTHER FACTORS
Description Status for Shivalik
Appropriate channels for customer service and grievance redressal ✓
Alignment in HR and Learning & Development Teams ✓
Strong Corporate Governance Framework and experienced management team ✓
Significant supporting infrastructure including state of the art head office(s) ✓
Payments Switch & Fraud Risk Management ✓
Significant partnerships and tie ups with a number of supporting service providers such as
insurance, payments switch, bill payments, POS installation and others
✓
▪ Significant investment made to get the bank ready to scale in the future
2103 3.7 PRODUCTS AND SERVICES
Savings Fixed Deposits Flexi Recurring Deposits
Deposits Current Door-to-Door Deposit
Home Loans Personal And Gold Loans Car/Auto Loans
Consumption Loans
Two-Wheeler Loans Loans for Working Capital Reverse Mortgage Loans Roof Top Solar Loans
Loans Loans to Professionals Loans for Micro/SSI Units Retail Traders Loans Commercial Building
And Self Employed Loans
Commercial Vehicle Self Help Groups (SHG) Loans Against Warehouse Shivalik Green Card
Loans And Mini SHG Receipts (Kisan Credit Card)
Net Banking Mobile Banking Debit Card ATM Banking
Digital Recyclers SMS Banking AEPS (Aadhaar Enabled Fund Transfer
Services Payment System) (RTGS/NEFT/IMPS/NACH)
e-commerce POS Machine
Add-on Insurance Remittances Lockers
Services Business Correspondents Forex PAN Card services
2204
GEOGRAPHICAL PRESENCE
2304 4.1 AREA OF OPERATION 24
04 4.2 PRESENCE IN UTTAR PRADESH 25
04 4.3 PRESENCE IN MADHYA PRADESH 26
5
MANAGEMENT PROFILES
275 5.1 MANAGEMENT TEAM
Education and
B.Tech. (Electrical) Hons. From NIT, Kurukshetra
Qualification
Total
22+ Years
Experience
• Joined the Bank in 1998 to support the vision of the Chairman and a keen
Suveer Kumar Gupta entrepreneur himself.
Managing Director &
Chief Executive Officer • Under his leadership, the Bank has achieved a number of firsts including
becoming the first and largest multi-state UCB in Uttar Pradesh and being
the first bank in the country to be transitioning to a Small Finance Bank.
Overall
Experience • Through his deep focus on technology, he has led the bank towards
automation and tech driven services from the outset. His emphasis on
customer matters has helped Shivalik remain customer centric over the
years.
• He joined the bank after having worked with Tata Consultancy Services
(TCS).
285 5.2 MANAGEMENT TEAM
Education and He holds a Bachelors in Arts and Law and holds a Certificate in Risk
Qualification Management in Financial Services from CISI, UK
Total
38+ Years
Experience
Navleen Kundra • Before joining the bank, he was working in Oriental Bank of Commerce,
where he retired as General Manger – Risk Management.
Chief Risk Officer
• In his previous role he was leading a team, chartering policies and models
Overall and was involved in marquee projects.
Experience
• Prior to heading the risk department, he headed various branches
including Rural, Urban and Metropolitan (Delhi and Mumbai), large
corporate branch in Mumbai, post which he shouldered responsibilities as
the Regional Head of Jaipur Region & later New Delhi Region.
295 5.3 MANAGEMENT TEAM
Education and M.Sc. (Finance) From University of Strathclyde Business School, Scotland,
Qualification United Kingdom and B.Com. (Hons.) From University of Delhi
Total
19+ Years
Experience
• Gaurav Mittal has been working with the bank since 2013. He is
Gaurav Mittal responsible for Strategy, Operations, Business Development, HR and
Marketing functions.
Chief Operating Officer
Chief Strategy Officer • He has worked in Worlds Windows Group, as a DGM Strategy. As a part of
the strategy team, working with the Group Chairman, his role was to
Overall identify new business opportunities, M&A targets and streamline existing
Experience business operations. He has also worked in SKIL Infrastructure where he
was responsible for setting up and launching Strathclyde Business School
(SBS) India campus at Greater NOIDA. He was Research Manager in CEB
(now Gartner) and managed a team of research associates working on
research reports in Retail, Corporate, and Private Banking for senior
executives at leading financial institutions in US, Europe & Asia.
305 5.4 MANAGEMENT TEAM
Chartered
He Accountant
is Chartered from
Accountant theInstitute
from InstituteofofChartered
Chartered Accountants
Accountants in England
in England and
Education and
and Wales
Wales (ICAEW)(ICAEW) and in
and Bachelors Bachelors
ElectronicsinandElectronics and Communications
Communications Engineering from
Qualification
University
Engineeringof Leeds, United Kingdom
from University of Leeds, United Kingdom
Total
12+ Years
Experience
Harsh Mittal • Harsh Mittal has been working with the bank since April 2016. He holds
responsibilities for Finance, Technology, Compliance and Credit functions.
Chief Financial Officer
Chief Technology Officer • Before joining the bank, he was working in Swiss Reinsurance Company
Overall Ltd, London as a Head of Group Performance Management in their Group
Experience Finance team. He was Head of Transaction Analysis in Swiss Re Life Capital
(a subsidiary of Swiss Re Group), London where his main responsibility was
to support all M&A and valuation activity. He was Assistant Manager in
KPMG LLP UK where he was involved in the audit and transaction services
practice as a part of the financial services segment.
31DISCLAIMER
This presentation has been prepared by SHIVALIK MERCANTILE CO-OPERATIVE BANK solely for information purposes, without regard to any specific objectives,
financial situations or informational needs of any particular person. All information contained has been prepared solely by the Bank. No information contained
herein has been independently verified by anyone else. This presentation may not be copied, distributed, redistributed or disseminated, directly or indirectly,
in any manner. This presentation does not constitute an offer or invitation, directly or indirectly, to purchase or subscribe for any securities of the Bank by any
person in any jurisdiction. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment
to purchase or subscribe for any securities. Any person placing reliance on the information contained in this presentation or any other communication by the
Bank does so at his or her own risk and the Bank shall not be liable for any loss or damage caused pursuant to any act or omission based on or in reliance upon
the information contained herein. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy,
completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the
date of this presentation. Further, past performance is not necessarily indicative of future results. This presentation is not a complete description of the Bank.
This presentation may contain statements that constitute forward-looking statements. All forward looking statements are subject to risks, uncertainties and
assumptions that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Important factors that
could cause actual results to differ materially include, among others, future changes or developments in the Bank’s business, its competitive environment and
political, economic, legal and social conditions. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue
reliance on these forward-looking statements. The Bank disclaims any obligation to update these forward-looking statements to reflect future events or
developments. Except as otherwise noted, all of the information contained herein is indicative and is based on management information, current plans and
estimates in the form as it has been disclosed in this presentation. Any opinion, estimate or projection herein constitutes a judgment as of the date of this
presentation and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The Bank may alter,
modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. The accuracy of
this presentation is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Bank. This presentation
is not intended to be an offer document or a prospectus under the Companies Act, 2013 and Rules made thereafter , as amended, the Securities and Exchange
Board of India (Issue of Capital and Disclosure Requirements)Regulations, 2009, as amended or any other applicable law. Figures for the previous period / year
have been regrouped wherever necessary to conform to the current period’s / year’s presentation. Total in some columns / rows may not agree due to
rounding off. Note: All financial numbers in the presentation are from Audited Financials or Limited Reviewed financials or based on Management estimates.
32A bank for your welfare
Regd. Office: 13/1207, Ansari Road, Saharanpur - 247001, Uttar Pradesh
Head Office I: Hakikat Nagar, Saharanpur - 247001, Uttar Pradesh
Telefax: (0132) 2726125, 2726147, 9927 135550
Head Office II: 5A & B, Fusion Square, Sector 126, Noida - 201301, Uttar Pradesh
Telefax: (0120) 4060000
E-mail: info@shivalikbank.com Visit us: www.shivalikbank.com
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