Esaf Small Finance Bank Limited · NSE:ESAFSFB
Esaf Small Finance Bank — FY2024 Earnings Presentation
35 slides from Esaf Small Finance Bank's earnings presentation, May 2024
Slide 1: Investor Presentation | May 2024
Investor Presentation | May 2024
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by ESAF Small Finance Bank Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 3: Company Overview
Company Overview
Slide 4: Company Overview
Company Overview Structure as on March 31, 2024 o ESAF Small Finance Bank Limited commenced its operation on 10th March 2017 ESAF Financial Kadambelil Paul Dia Vikas* Holdings Private Thomas (20.51%) o Mr. Kadambelil Paul Thomas, and ESAF Financial Holdings Private Limited promoted the Bank. Limited
Slide 5: Business Snapshot
Business Snapshot 83.7 lakh Total Customers 5,967 Employees 35 Business Correspondents Operational 23 States and 2 UTs 753 Banking Outlets 614 ATMs 930 Customer Service Centers 5,024 Banking agents 772 Business facilitators AUM: ₹ 19,659 cr Yield on Advances: Advance Micro Loans: 70% AUM Growth (YoY
Slide 6: Extensive Geographical Footprint
Extensive Geographical Footprint Reduced Home State Concentration ESAF SFB has a large national footprint with presence in 23 states & 2 UT Banking Outlets (Nos.) (% of Gross Advances) Name of the State/ Union BOs ATMs CSC Territory Mar-21 Mar-24 Andhra Pradesh 6 3 15 Assam 5 2 13 Bihar 10 10 25 Chh
Slide 7: Financial Performance
Financial Performance
Slide 8: AUM & Disbursement Mix
AUM & Disbursement Mix AUM Mix (₹ Crs) Disbursements Mix (₹ Crs) 23.3 24.6 25.0 24.8 26.1 8.6 6.4 4.8 5.3 7.0 19,659 6,043 1,045 250 18,149 17,490 1,148 330 17,204 935 5,266 16,331 784 849 917 257 688 770 816 3,700 1,421 383 774 4,509 3,201 2,798 2,978 198 2,615 132 3,893 222 1,557 1,221 3,345 227 1
Slide 9: Key Profitability Metrics
Key Profitability Metrics Net Interest Income (₹ Crs) Non-Interest Income (₹ Crs) 585 597 597 591 150 499 120 94 93 79 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Pre-Provision Operating Profit (₹ Crs) Profit After Tax (₹ Crs) 301 290 288 285 140 130 112 219 101 43 Q4FY23 Q
Slide 10: Key Profitability Ratios
Key Profitability Ratios Margins* (%) Cost to Income (%) 21.0% 21.1% 21.1% 20.6% 58.6% 19.8% 58.0% 55.7% 56.4% 57.6% 10.4% 11.3% 11.0% 10.6% 10.0% 6.4% 6.9% 7.3% 7.3% 7.4% Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Yield on Advances NIMs Cost of Funds ROA* (%) ROE* (%) 2.5
Slide 11: Asset Quality
Asset Quality GNPA & NNPA (%) PCR (%) 4.8% 74.4% 70.5% 4.2% 65.2% 56.7% 59.5% 2.5% 2.6% 2.2% 2.3% 1.7% 1.1% 1.2% 0.8% Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 GNPA NNPA NPA Movement (₹ Crs) Description Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Opening balance of Gross NPAs at t
Slide 12: Capital Adequacy
Capital Adequacy Total Assets & Risk Weighted Assets (₹ Crs) Capital Adequacy (%) 26,087 24,300 23.3% 22,368 21.0% 20.6% 20.6% 20,224 20,796 19.8% 19.7% 19.0% 18.9% 18.1% 18.2% 12,684 11,669 9,705 10,085 9,347 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY24 Total Assets Risk We
Slide 13: Key Balance Sheet Metrics
Key Balance Sheet Metrics Shareholders Funds (₹ Crs) Gross Advances (₹ Crs) 18,772 2,482 2,486 17,153 14,444 15,123 1,979 14,118 1,839 1,709 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Total Deposits (₹ Crs) CASA Deposits (₹ Crs) 19,868 4,170 18,860 17,416 15,656 3,291 14,6
Slide 14: Key Strengths
Key Strengths
Slide 15: Key Strengths
Key Strengths Rapid Asset Growth with Strong Rural And Semi-Urban Multi-Nodal Delivery Channels continuous focus on Core Banking Franchise Segment & Retail Growth Technology Driven Model With Robust Funding Profile and Best-In Class Banking Products An Advanced Digital Technology Customer Centric Ap
Slide 16: Multi-Nodal Delivery Channels
Multi-Nodal Delivery Channels Banking Outlets Digital Banking o Provision for full-fledged o Application (compatible with Android banking product & services and iOS) that connects with the National o Branch Operations Payments Corporation of India’s unified o Multiple channels for servicing the o Cu
Slide 17: Strong Rural And Semi-Urban Banking Franchise
Strong Rural And Semi-Urban Banking Franchise Low penetration of banking credit in rural areas Focus on increasing credit in the rural & semi-urban areas has remained low Rural share of GDP contribution (Mar-23) Rural share of Credit outstanding (Q1FY24) Rural share of Credit outstanding (Q1FY24) 66
Slide 18: Rapid Asset Growth with continuous focus on Core Segment & Retail Growth
Rapid Asset Growth with continuous focus on Core Segment & Retail Growth As of March 31, 2024, ESAF SFB had over 83.7 lakh customers with Micro Loans, the majority of whom were women Continued focus on Micro Loans segment with Increased Retail Gross Advances have grown rapidly (₹ Crs) Diversificatio
Slide 19: Robust Funding Profile and Healthy Capital Adequacy
Robust Funding Profile and Healthy Capital Adequacy Deposits growth (₹ Crs) % deposits from top 20 largest depositors Retail share of deposits (₹ Crs) 98% 94% 91% 92% 19,868 +120.8% 15.9% 14,666 18,368 12,815 9.1% 9.8% 12,046 13,346 8,999 7.3% +108.3% 8,819 Mar-21 Mar-22 Mar-23 Mar-24 Mar-21 Mar-22
Slide 20: Technology Driven Model With An Advanced Digital Technology Platform
Technology Driven Model With An Advanced Digital Technology Platform ESAF SFB has continuously worked towards improving its customers’ experience through the use of technology. Such initiatives have enabled the Bank to deliver improved customer service in a cost effective manner DIGITAL MEASURES DIG
Slide 21: Customer Centric Approach
Customer Centric Approach Customer service measures Products to meet customers’ life-cycle needs • Home loans • Vehicle Loans 24*7 CALL CENTRE DOOR-STEP BANKING • Agri-loans • Gold Loans • Multi-lingual assistance • Facilitate regular door-step from agents collection from • Loan against property • M
Slide 22: Best-In Class Banking Products and Services
Best-In Class Banking Products and Services Loan & Advances Microfinance Loans Retail Loans Other Loans o Current Accounts Liability o Savings Accounts o ESAF Income Generation Loan o ESAF Dream Home Loan o MSME Loans Products o Recurring Deposits o ESAF General Loan o ESAF Clean Energy Product Loan
Slide 23: Prudent Risk Management
Prudent Risk Management ESAF SFB has a well-defined risk management architecture with: o Active board and senior management oversight o Appropriate policies, procedures and limits o Comprehensive and timely identification, measurement, mitigation, controlling, monitoring and reporting of risks o App
Slide 24: Experienced Management Team
Experienced Management Team Ravimohan Periyakavil Ramakrishnan Supported by a highly experienced team of qualified & experienced professionals Part time Chairman & Non-Executive Independent Director o Bachelor’s and master’s degree in science from Kerala University, master’s degree in business admin
Slide 25: High Quality Board At The Helm Of The Organization
High Quality Board At The Helm Of The Organization Biju Varkkey Ms. Kolasseril Chandramohanan Ranjani Ravi Venkatraman Thomas Jacob Kalappila Additional Non-Executive Independent Director Non-Executive Independent Director Non-Executive Independent Director Non-Executive Independent Director o Bache
Slide 26: Clearly Articulated Strategy
Clearly Articulated Strategy 1 Increase Deposits 2 Increase Advances o Micro Loan Business: o Target new & existing customers for CASA, fixed deposits and • Cross selling and up-selling to its customer base recurring deposits by focusing on customer service & offering • Appoint new BCs and have its
Slide 27: Annexures
Annexures
Slide 28: Journey So Far
Journey So Far ESAF Small Finance Bank Limited ("ESAF SFB") is one of the 12 awardees of Over the years it has expanded its geographical coverage and product the SFB licenses as of March 31, 2024 offerings (both assets & deposits) o 1992 - ESAF Foundation o ESAF SFB included in the founded by Mr. se
Slide 29: A social business driven by providing “Joy of Banking” to customers
A social business driven by providing “Joy of Banking” to customers ESAF SFB has adopted a triple bottom line approach towards business in line with the motto – ‘fighting the partiality of prosperity’. The triple bottom line approach of ESAF ESAF SFBs main focus is on unbanked and under- banked cust
Slide 30: Sustainability & ESG Performance – ESAF SFB’s social business strategy
Sustainability & ESG Performance – ESAF SFB’s social business strategy Pursuant to the ESG policy, ESAF SFB is committed to (i) the protection of the environment and ensuring sustainable development (ii) promoting financial inclusion and gender equality through specialised financial services (iii) e
Slide 31: Profit & Loss Statement – Q4 & FY24
Profit & Loss Statement – Q4 & FY24 Particulars (₹ Crs) Q4 FY24 Q4 FY23 Y-o-Y Q3 FY24 Q-o-Q FY24 FY23 Y-o-Y Interest Income 1,002.00 773.81 29.5% 974.37 2.8% 3,818.43 2,853.60 33.8% Interest Expense 411.25 274.91 49.6% 377.41 9.0% 1,448.73 1,017.32 42.4% Net Interest Income 590.75 498.90 18.4% 596.9
Slide 32: Profit & Loss Statement
Profit & Loss Statement Particulars (₹ Crs) FY24 FY23 FY22 FY21 Interest Income 3,818 2,854 1,940 1,641 Interest Expense 1,449 1,017 793 720 Net Interest Income 2,370 1,836 1,147 922 Other Income 442 288 208 127 Net Total Income 2,812 2,124 1,355 1,049 Employee Benefits Expense 363 278 232 188 Depre
Slide 33: Balance Sheet
Balance Sheet Particulars (₹ Crs) Mar-24 Mar-23 Mar-22 Mar-21 CAPITAL AND LIABILITIES Capital 514.78 449.47 449.47 449.47 Employee Stock Option Outstanding 5.68 5.88 4.81 - Reserves and Surplus 1,971.33 1,259.66 957.32 902.59 Deposits 19,867.80 14,665.63 12,815.07 8,999.43 Borrowings 3,222.53 3,354.
Slide 34: Awards & Recognitions
Awards & Recognitions 2019 2020 2021 2022 2023 2024 o Dhanam ‘Kerala Bank of The o ‘Global Sustainability Award o Semi Finalist at the SKOCH o ‘Small Finance Bank of the o ‘Excellence in Customer o Received award for Best Year – 2019’ award 2020’ for outstanding Award 2021 in the category Year’ cert
Slide 35: Contact
COMPANY : ESAF Small Finance Bank Limited Mr. Ranjith Raj P Email: investor.relations@esafbank.com Website: www.esafbank.com CIN : U65990KL2016PLC045669 INVESTOR RELATIONS ADVISORS : Orient Capital (a division of Link Group) Mr. Nikunj Jain Mr. Viral Sanklecha +91 9769060608 +91 9987123158 nikunj.ja
ESAF Small Finance Bank — FY2024 Earnings Presentation on 6ix