CORPORATE PRESENTATION - JUNE 2021 - Shivalik Bank
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CORPORATE PRESENTATION
JUNE 2021
CONTENTS
§ SHIVALIK SMALL FINANCE BANK OVERVIEW
§ SHIVALIK IN NUMBERS
§ OPERATIONAL OVERVIEW
§ GEOGRAPHICAL PRESENCE
§ MANAGEMENT PROFILES
2
SHIVALIK SMALL FINANCE BANK
OVERVIEW
3
INTRODUCTION – A BANK OF MANY FIRSTS
§ Started in 1998, literally from a garage!
§ First UCB to receive a commercial
banking license as a Small Finance Bank
§ First bank to host CBS, Digital Suite and
Payments on Cloud in India
§ Pre-transition, it was the first and largest
multi-state UCB in Uttar Pradesh
Business volume figures are stated as on 31 March 2021
UCB – Urban Co-operative Bank
4OUR JOURNEY
1998 2010 2013 2017 2019 2020
Starts Acquires Centralises Makes Receives in-
Adopts FIS
operations in another UCB major application principle
Profile CBS
Saharanpur, – becomes a banking to RBI to approval to
on Cloud –
Uttar Multi State functions at become a become a
First in India
Pradesh UCB new office SFB SFB
Achieves full Completes Switches
Launches Commences
tech Commences
computeris- second Internet and digital
platform to operations
ation of its acquisition Mobile transformati
Infosys as a SFB
operations of a UCB Banking on project
Finacle
1999 2012 2015 2018 2019 2021
§ A 23 year journey to become India’s first UCB to transition to a Small Finance Bank!
5AN OVERVIEW
§ Started in 1998 by a visionary entrepreneur who believed banking services had to be
improved and made available to the underserved segment of the population
The Beginning § Charted a long journey as a UCB starting as a single district bank, further expanding to the
whole of Uttar Pradesh and then growing to a multi state bank by acquiring banks in
Madhya Pradesh
§ Tech focused from the beginning as the founders had a strong engineering mindset
§ Computerised all services bank in 1999 and first bank to host CBS on cloud in 2013!
Tech Focus
§ Invested in a large digital transformation in 2018 including switching over CBS and Digital
Banking Suite to Infosys Finacle on a cloud hosted model – A first in India
§ Registered office is in Delhi, India
Offices and
§ Head Office is in Noida and another administrative office is in Saharanpur
Employees
§ Employee Strength : ~500
6WHAT WE STAND FOR
Our Vision Our Purpose
§ Socially responsible impact lender
§ Digital first approach across products and service
To be a trusted financial services offerings
provider and model employer § Financial inclusion and increasing financial literacy
focusing on small and § Innovator in financial products and processes
underserved segments through
§ Aim to become a complete solution provider to our
the delivery of digitally focused, customers
affordable products and § Environment, Social and Governance (ESG) compliant
differentiated customer § Create value for all stakeholders - Society,
Employees, Customer, Organization and
experience.
Shareholders
7VOLUNTARY TRANSITION TO SFB – A PIONEERING JOURNEY
• On 27 September 2018, RBI released guidelines permitting the voluntary transition of Urban Co-operative Banks
(UCBs) into Small Finance Banks (SFBs).
• Submitted an application to the RBI in January 2019 making it the first bank to apply under the guidelines
• 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.
• 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.
• Commenced business as a SFB, India’s newest private sector commercial bank on 26 April 2021
§ A pioneering journey of being the first UCB to become a Small Finance Bank in India
8SHIVALIK IN NUMBERS
9OUR DNA IS OF A SFB
Small Finance Banks were set up with the following objectives by the RBI :
Small & Priority Retail and Financial Technology Enabled
Sector Lending Inclusion Focus Banking Services
Shivalik was born to be a SFB
53% 65% 92% 31% 94.5% 80%
% Loans below Priority Sector Digital Savings Digital
Retail Deposits % CASA Ratio %
₹25 Lakhs Lending % Account Opening % Transactions %
43% : 0.5
90% 40% 65% 5.3%
57% million
% Secured Diversification : Business Financial Inclusion Digital IT Capex Spend as % of
Customer Base
Lending Book – Individual Loans Customers % Penetration1 % revenue2
1. Proportion of customers transacting on digital and assisted digital modes including internet, Mobile Banking and mATM/
handheld devices
2. Average of the last 5 years 10SECURED RETAIL LOAN BOOK
Avg.
2013-16 2016-17 2017-18 2018-19 2019-20 2020-21
Advances 481.1 559.5 611.6 715.2 718.6 804.9
(₹ Crores)
Secured Lending 94% 94% 93% 91% 92% 90%
(%)
Loans below ₹ NA 64.4% 59.3% 50.4% 53.5% 52.5%
25 Lacs (%)
Yield on 13.4% 13.0% 12.4% 12.2% 12.1% 11.8%
Advances (%)
§ Our focus has always been on small ticket lending and building a secured, well diversified loan book
§ Fully aligned with the SFB mandate of retail lending
11GRANULAR DEPOSIT BASE
Avg.
2013-16 2016-17 2017-18 2018-19 2019-20 2020-21
Deposits 661.2 917.0 953.4 1051.2 1139.8 1244.5
(₹ Crores)
CASA Ratio 25% 36% 33% 32% 28% 31%
(%)
Retail Deposits 77%1 86% 88% 91% 92% 92%
(%)
Cost of Funds 8.0% 7.0% 6.4% 6.1% 6.4% 6.1%
(%)
§ Maintained a low cost of funds through focus on building a granular, retail deposit base
§ Working like a SFB for many years focusing on financial inclusion
1
Average of 2014-15 and 2015-16 only 12DIGITAL & OPERATING EFFICIENCIES
Avg.
2013-16 2016-17 2017-18 2018-19 2019-20 2020-21
Net Interest 4.1% 4.0% 4.2% 4.1% 4.0% 4.3%
Margin (%)
Digital Savings NA 28.6% 59.5% 90.4% 84.1% 94.5%
Ac Opening (%)
IT Capex / 0.7% 1.2% 3.0% 3.6% 16.3% 1.3%
Revenue (%)
Credit – Deposit 67.6% 57.6% 60.7% 64.2% 59.9% 61.2%
Ratio (%)
§ High NIM for a diversified secured lender driven by low cost of funds
§ Large tech spends completed to be ready to scale as a SFB
13WELL DIVERSIFIED PORTFOLIO
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. 14
2 The remainder of the portfolio is of Microfinance which is also backed by joint liability guarantees.STABLE ASSET QUALITY
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
15PROFITABILITY
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
16OPERATIONAL OVERVIEW
17BRANCH 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 ~ 4.5 Lacs
Major retail banking deposit and loan products ü
CASA ratio (Low Cost Deposits) ~ 31%
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
18PAYMENTS SYSTEMS
Description Status for
Shivalik
NEFT/RTGS ü
Debit Cards for use across ATMs in India ü
POS (Point of Sales) machines ü
E-Commerce Transactions ü
IMPS, Aadhar Enabled Payment System (AePS), Aadhar Bridge Payment System (ABPS) ü
NACH, Bill Payments and cheque clearing ü
UPI ü
§ The bank is active on almost all payment channels prevalent in India.
19CHANNEL BANKING
Description Status for Shivalik
Internet Banking ü
Mobile Banking ü
Instant Loan Origination on Digital Channels ü
Tablet Banking through micro ATMs (m-ATMs) ü
Distribution of insurance products ü
Banking centres and Village Level Entrepreneurs ü
Modern and interactive website ü
§ Multiple channels for customer convenience – a good mix of ‘brick’ and ‘click’ offerings.
20BUSINESS OPERATIONS & RISK MANAGEMENT
Description Status for Shivalik
Centralized teams for account opening, credit appraisal and disbursal ü
Dedicated internal audit, risk management and credit monitoring units ü
Custom designed Loan Origination Platform suited to small lending needs ü
Anti-Money Laundering Software for PMLA norms ü
CTS and centralized clearing activities ü
Policy development teams across verticals ü
Adequate insurance coverage incl. cyber risk ü
§ Strong risk management ethos and internal control systems are embedded in our work culture
21TECHNOLOGY PLATFORM
Description Status for Shivalik
Core Banking Solution (Powered by Infosys Finacle on Cloud) ü
Internet and Mobile Banking ü
Paperless Account Opening ü
Cash Recyclers at ATM locations ü
Payments Switch & Fraud Risk Management ü
Internal Business Process Automation such as Office 365, Audit software and others ü
§ Best in class technology platform shows the commitment to keep pace with the modern
advancements.
22SHIVALIK TECH PARTNERS
Core Banking Digital Banking API Gateway Switch and Cards
Micro ATMs UPI IMPS Reg Connect
§ Partnering with the best to deliver a superlative experience!
All logos are the registered trademarks of the respective companies
23OTHER FACTORS
Description Status for Shivalik
Appropriate channels for customer service and grievance redressal ü
Alignment in HR and Learning & Development Teams ü
Strong Corporate Governance Framework and experienced management team ü
Significant supporting infrastructure including state of the art head office(s) ü
Payments Switch & Fraud Risk Management ü
Significant partnerships and tie ups with a number of supporting service providers such as
insurance, payments switch, bill payments, POS installation and others ü
§ Significant investment made to get the bank ready to scale in the future
24PRODUCTS & 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 (UPI
Services Payment System) /RTGS/NEFT/IMPS/NACH)
e-commerce POS Machine
Add-on Insurance Remittances Lockers
Services Business Correspondents Forex PAN Card services
25GEOGRAPHICAL PRESENCE
26AREA OF OPERATIONS
27PRESENCE IN UTTAR PRADESH
28PRESENCE IN MADHYA PRADESH
29MANAGEMENT PROFILE
30MANAGEMENT TEAM
Education and
B.Tech. (Electrical) Hons. From NIT, Kurukshetra
Qualification
Total
23+ Years
Experience
Suveer Kumar Gupta • Co-founded the Bank in 1998 to enhance banking services in the region.
Managing Director & • Under his leadership, the Bank has achieved a number of firsts including
Chief Executive Officer 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 • Through his deep focus on technology, he has led the bank towards
Experience 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).
31MANAGEMENT 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
39+ 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.
32MANAGEMENT TEAM
He is
A Chartered Accountant
management from Institute
professional of Chartered
from MDI, NIPM, Accountants in England
Mr. Ghoshal also and
has
Education and Wales (ICAEW)from
certifications and Bachelors in Electronics
DDI and LaMarsh USA and Communications
in Change Engineering
& Leadership. from
He is also a
Qualification University coach
Certified of Leeds, United
from CPIKingdom
Global with more than 180 leadership coaching
hours. He is certified in People Assessments with SHL & Hewitt.
Total
28+ Years
Experience
Suvendu Ghoshal
Chief Human Resource • With more than 28 years of experience in the corporate sector, Mr.
Officer Ghoshal has held multiple senior roles in his career. He has been VP-HR
with Hewitt Associates, CHRO with JCT Ltd, AVP HR with Xansa, Corporate
People Engagement Head with Airtel. He has led many interventions on
Overall Organisation transformation, design restructuring and change
Experience management. He has also worked very deeply in the areas of culture
building, strategy, leadership development and talent management.
• He is author of `21st century Professionals Handbook’ and Co-edited`
Perform of Perish’- the People Dimension with IIM-A Professor.
33MANAGEMENT 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
20+ 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.
34MANAGEMENT TEAM
Chartered Accountant
He is Chartered from
Accountant theInstitute
from InstituteofofChartered
Chartered Accountants
Accountants in England
in England and
Education and
and
WalesWales
(ICAEW)(ICAEW) and in
and Bachelors Bachelors
ElectronicsinandElectronics and Communications
Communications Engineering from
Qualification
University of from
Engineering Leeds,University
United Kingdom
of Leeds, United Kingdom
Total
14+ 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
• 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.
35DISCLAIMER
This presentation has been prepared by Shivalik Small Finance Bank Limited 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.
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