Annual Report For Vehicle Finance - Ujjivan Small Finance Bank

Business Segment: Vehicle Finance

Ramping up vehicle financing

Vehicle finance saw a good year in terms of higher business numbers and overall portfolio growth with 5x increase in our disbursals and portfolio.

The first quarter of FY 2020-21 saw lockdowns and the vertical faced several challenges. We offered moratorium in line with the regulatory guidelines to all our customers of which ~1,400 customers availed the option. By the end of August, the portfolio was brought back to normal. Our vehicle loans segment grew rapidly in the last two quarters of the financial year with revival in credit demand and opening up of the economy.

QUICK FACTS

₹67Cr

Total disbursement

449% y-o-y

₹73Cr

Outstanding principal (OSP)

482% y-o-y

99%

Collection efficiency

10,301

Customers

461% y-o-y

y-o-y growth

y-o-y de-growth

HIGHLIGHTS OF FY 2020-21

Revamped our existing processes to shift from manual to digital by leveraging systems and processes akin to the fintechs during Q1 FY21
Launched Mini and Micro Commercial Cargo Vehicle Loans (Electric and ICE Engine) for both our existing and new customers to leverage the market opportunity of a demand upswing for commercial cargo vehicles
Diversified sourcing channel mix by building internal and external pipelines, partnering with digital aggregators and signing Memoranda of Understanding with Original Equipment Manufacturers (OEMs) that have a good base, to deepen our customer reach and penetration
Used digital marketing tools to generate leads and support our front-end sales team

OUTLOOK

We will focus on strengthening our vehicle financing business - in rural and semi-urban India and build a stronger portfolio. The emphasis will be on Electric three-wheeler (E-3W) segment which is part of mini and micro commercial vehicle category and broaden our scope to include electric-two-wheeler (E-2W) category and used cars. We would be continuing our tie ups with OEM partners to better our offerings.