Affordable Housing Annual Report 2021 - Ujjivan Small Finance Bank

Business Segment: Affordable Housing

Preferred by aspiring homeowners

As a trusted player in India’s affordable home loans industry, we offer our customers three primary home loan products in a variety of ticket sizes and tenures. We primarily cater to the low-income households (EWS/ LIG & MIG) moving out of rented homes into owned places.

Our customers mostly include the middle-class/salaried-class people within the semi-formal/informal income segments buying their first home.

QUICK FACTS

₹666Cr

Total disbursement

21% y-o-y

₹2,050Cr

Gross Loan Book (OSP)

35% y-o-y

24,000+

Customers

26% y-o-y

2,100+

Customers benefited from PMAY CLSS

y-o-y growth

y-o-y de-growth

HIGHLIGHTS OF FY 2020-21

Scaled monthly disbursals from ₹16 Crores in June, 2020 to ₹125+ Crores in March, 2021 with book OSP crossing 2,000 Crores+
Recorded the highest-ever disbursement during Q4 FY21, with monthly disbursals touching 138% of pre-COVID-19 best monthly numbers
Ujjivan Small Finance Bank AHL currently has 2,100+ PMAY (U) beneficiaries
Launched online workflows for customer on-boarding, application processing, disbursal and collections to improve end-to-end turnaround time and ensure productivity in the new normal
FY 2020-21 fresh disbursals were in line with the revised policy guidelines due to COVID-19, balancing risk and reward
Training module went digital with online training, study material, test for both business and credit on core product and cross-sell products, processes for skill enhancement
Safeguarded customer and employee well-being by personally reaching out
Maintained portfolio and exited moratorium smoothly with customer learning
Ensured timely account restructuring to stay committed to our customer-first approach
Utilised the lean period to revisit, realign and optimise processes for better customer and employee experience

5-DAY LOAN APPROVAL WITH DIGITAL PROCESSES

We are empowering home buyers with the in-principle loan approval in five working days to increase their bargaining power with builders, sellers and property dealers. The service is delivered through our digital workflow in the disbursement process. Being a completely online procedure, it enables us to issue online welcome letters, provide online orientation for customer service resolution and ensure timely disbursal, besides providing online repayment/part-payment options. We are working on a platform which will enable capacity processing, delivering aspired number

₹125Cr

Affordable home loans
disbursed during March, 2021

OUTLOOK

Going forward, we will continue to grow our retail business with deeper penetration in Tier-II and Tier-III markets. We aim to create a significant presence for the Affordable Housing segment in the Ujjivan universe, with above 75% reach across our branch network. We will sharpen our focus on leveraging our existing to bank (ETB) customer base with insights from in-house analytics.

We will also launch specific offerings targeted at rural borrowers in select markets, starting with South India, besides collaborating with government bodies to concentrate on ready-to-move-in builder projects in the semi-formal income space.

With the pandemic fuelling the demand for ready-to-move-in properties on the outskirts of major cities, and reverse migration pushing this demand in Tier-III and Tier-IV markets, we will have a healthy mix of semi-formal and informal customers. Among these customers, a significant majority belong to the salaried class and small business owners buying their first house in FY 2021-22.

Collections are showing an upward trend and will continue to get better. Usage of legal tools on collection will improve efficiency further as we grow our portfolio, reduce the Gross Non-Performing Asset (GNPA) and maximise the use of digital workflows.