- Q1 FY2024 saw healthy business growth.
- Loan book and deposits grew by 31.4% and 35.6% year-on-year.
- 85% of micro banking branches are in rural and semi-urban areas.
- Added 15 micro banking branches in Q1 FY2024.
- New customer acquisition focus is back.
- Customer base grew by 2.5% quarter-on-quarter.
- Microfinance segment faced a lower pipeline for subsequent loan cycle.
- Individual loan product (MBIL) for mature JLG customers saw strong growth of over 150%.
- Building digital experience for microfinance customers.
- Differentiated branch strategy with micro banking branches in rural areas and general banking branches in metro/urban locations.
- Focus on building other assets like MSME, home loans, and wheels.
- Wholesale lending focused on small ticket SMEs with over 100% collateral.
- Retail term deposits and CASA growth.
- Stable financial performance with ROA and ROE of 2.3% and 21.1% respectively.
- Raised Rs.500 Crores through IPO.
- Expect ROA above 2% and ROE around 20% in the next one to two years.
- Plans to continue expanding branches and franchises.
- Expecting significant growth in microfinance and other asset segments in the next 18 to 24 months.
- Repricing of term deposits expected to be completed by Q3.
- Yields in microfinance expected to improve by 100 basis points in the next year.
- Net interest margin expected to be around 9.4% to 9.5% for FY2024.
- Asset quality: No specific seasonality in slippages, expecting lower credit costs in Q2 and Q3.
- Floating provisions: Currently around 1%, expected to reach 1.5% of MFI book by end of the year.
- Credit cost guidance of sub-2% for FY2024 includes additional provisions.
- Growth focus: Planning to maintain 20% growth in the microfinance segment.
- Diversification: Exploring growth in MSME, affordable housing, and wheels segments.
- Geographic focus: Concentrating on states like UP, Bihar, Jharkhand, Chhattisgarh.
- Write-offs: Typically done for NPA loans older than one year in microfinance.
- Recovery from write-offs: Historically, about 15% to 20% recovery over 2-3 years.
- Market share in deposit acquisition: Aiming for 2% to 3% market share in targeted markets.
- Geographical mix in microfinance: Expect a 3% to 4% reduction in Bihar and around 1% to 1.5% in UP.
- Customer mix: Approximately 25% unique customers, 40%-45% Utkarsh plus one, and 30% unique plus two or more lenders.
- Reverse merger: No decision yet, no short-term plans; medium-term uncertain.
- Collection efficiency: 97% overall, 98.5% for standard customers; expecting improvement.
- Borrower mix: About 30% new customers, 70% subsequent cycle customers.
- Reverse merger timeline: Not started yet, 15-18 months expected once initiated, but decision pending.