Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q3 FY24 Earnings Presentation
33 slides from Equitas Small Finance Bank's earnings presentation, Jan 25, 2024
Slide 1: Exchange submission cover letter
January 25, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street Mumbai – 400 051 Mumbai – 400 001 Symbol : EQUITASBNK Scrip Code : 543243 Dear Sir Sub: Submission of Investors presentation Pursuant to Regulation 30 and
Slide 2: Investor Presentation Q3FY24
Investor Presentation Q3FY24 BEYOND BANKING When you bank with us, you contribute towards a better society
Slide 3: Disclaimer
Disclaimer Disclaimer: The information in this document, including facts and figures, is being provided by Equitas Small Finance Bank Limited (the “Bank”) for informational purposes only and could be subject to change without notice. The information has also not been independently verified. No repre
Slide 4: Table of Contents
Table of Contents 1. Key Highlights 2. Financial Performance 3. Advances Liabilities & 4. Branch Banking 5. Digital Banking 6. Financials 3
Slide 5: Key Highlights
Key Highlights eB BEYOND BANKING | When you bank with us, you contribute towards a better society. 4
Slide 6: Snapshot
Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: Total Deposits: PAT for Q3FY24: 18 States and UTs Rs. ^32,776 Cr [Rs.24,915 Cr] Rs. 32,385 Cr [Rs. 23,362 Cr] Rs. 202 Cr [Rs. 170 Cr] SBL- 37%, VF - 25%, CASA – 33%, TD – 67% MFI- 18%, HF-12% MSE – 4%, NBFC – 3% Disbur
Slide 7: Key Highlights
Key Highlights Key message • Robust Gross Advances growth at 32% YoY and 5% QoQ . Net of IBPC and securitization, net advances growth at 25% YoY • Yield on disbursement improved by 120 bps to 18.77% in Q3FY24 Vis a Vis 17.57% in Q3FY23 • Robust TD growth of 73 % YoY supported by 61% YoY growth in re
Slide 8: Highlights
Highlights Asset Quality & Provisioning • GNPA improved by 108 bps YoY to 2.38% in Q3FY24 as compared to 3.46% in Q3FY23 ; including securitization book, GNPA would stand at 2.29% • NNPA improved by 67 bps YoY to 1.06 % in Q3FY24 as compared to 1.73% in Q3FY23 • Gross Slippages Stands at 3.99% for Q
Slide 9: Our Presence
Our Presence Map not to scale . Districts present in | Branch network States Advances (%) Deposits (%) Andhra Pradesh 2% 3% Chandigarh - 3% Chhattisgarh 1% 2% 27 Punjab Himachal Pradesh 3 Delhi 1% 8% 1 Chandigarh Uttarakhand 1 30 Haryana Gujarat 5% 6% Delhi 15 68 Rajasthan Haryana 2% 5% Himachal Pra
Slide 10: Financial Performance – Quarterly Trends
Financial Performance – Quarterly Trends 9
Slide 11: Key Ratios
Key Ratios Daily Avg Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 7.36% 7.21% 6.94% 9.01% 9.10% 6.42% 6.42% 6.37% 8.76% 6.10% 5.98% 6.61% 8.43% 8.37% 6.41% 2.21% 2.28% 2.10% 2.03% 1.98% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3
Slide 12: Income Evolution
Income Evolution Net Income Evolution (Rs. Cr) PPoP / Assets (%) 743 766 785 707 647 3.79%* 3.62% 3.53% 3.42% 3.38% ^ 215 185 127 150 161 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 NII Other Income (Net) Other Income [Net] Contribution^ (%) Liability Fee Income (Rs .Cr) 23
Slide 13: Yield & Cost of Funds Trend
Yield & Cost of Funds Trend 18.77% June Particulars March 2023 Sept 2023 Dec 2023 2023 18.34% 18.30% CD Ratio 103.27 100.95 94.52 91.49 CD Ratio 91.55 90.22 86.47 84.97 17.59% (after reducing 17.57% refinance 17.39% 17.41% borrowings from advances) 17.13% 17.01% 17.06% 7.36% 7.21% • ~ 85% of the por
Slide 14: Opex evolution
Opex evolution Rs. Cr Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Employee expenses 275 292 304 328 332 346 Other expenses (net of digital 187 182 207 224 232 229 expenses) Depreciation 21 21 25 29 33 35 Total Operating expenses 483 495 536 581 597 610 No. of employees 18,962 20,005 20,563 20,996 21,8
Slide 15: Advances
Advances eB BEYOND BANKING | When you bank with us, you contribute towards a better society. a
Slide 16: Advances evolution
Advances evolution Rs Cr Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 YoY % Contribution % Micro Finance & Micro Loans 4,600 5,225 5,626 5,878 6,056 32% 18% Small Business Loans (SBL) 9,312 10,083 10,787 11,493 12,285 32% 37% Housing Finance 2,463 2,873 3,206 3,582 3,884 58% 12% Vehicle Finance 6,203 6,971 7,
Slide 17: Disbursements evolution
Disbursements evolution Rs Cr Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 YoY % Micro Finance & Micro Loans 1,340 1,676 1,464 1,406 1,380 3% Small Business Loans (SBL) 1,260 1,464 1,361 1,494 1,435 14% Housing Finance 427 557 438 500 439 3% Vehicle Finance 1,334 1,591 1,169 1,341 1,238 -7% Used CV 699 743 55
Slide 18: Segmental Details
Segmental Details Number of Live ATS @ ATS @ Product Segment GNPA (%) PCR (%) Loans Disbursement (Lacs) Portfolio (Lacs) Micro Finance 20,13,573 0.49 0.30 3.26% 78.77% Small Business Loans (SBL) 2,63,709 7.07 4.66 1.76% 26.59% Housing Finance 36,963 11.80 10.51 1.00% 30.13% Vehicle Finance 2,09,391
Slide 19: Asset Quality Trend
Asset Quality Trend 950 4.00% 3.46% 2.60% 3.50% 2.60% 850 750 2.12% 2.38% 3.00% 2.50% 1.73% 650 1.12% 2.00% 0.91% 1.06% 550 450 1.14% 1.50% 1.00% 350 0.50% 250 0.00% 150 861 423 724 312 770 325 660 279 750 330 -0.50% 50 -1.00% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 GNPA (Rs. Cr) NNPA (Rs. Cr) GNPA % NNP
Slide 20: Strengthening Provision Coverage
Strengthening Provision Coverage Asset Classification Nature Provisioning Provisioning PCR as per IRAC as per Equitas Sub-standard Secured 15% 24% 57.79% 57.72% 56.90% Unsecured 25% 69% 55.97% Doubtful-1 Secured 25% 61% 50.84% Unsecured 100% 100% 50.49% Doubtful-2 Secured 40% 86% 48.46% Unsecured 10
Slide 21: Liabilities & Branch Banking
Liabilities & Branch Banking 20
Slide 22: Deposits Evolution
Deposits Evolution CA SA CASA TD CASA+TD as on 31 Dec 2023 [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] [Customer Deposits] Balance (Cr) 921 9,672 10,593 ^21,792 32,385 as a % of total borrowings (Rs. 34,498 Cr) 3% 28% 31% 63% 94% as a % of total deposits (Rs. 32,385 Cr) 3
Slide 23: Customer Deposit Profile
Customer Deposit Profile Elite Book (Rs. Cr) Savings Slab Wise (%) Deposit Category 5% 7% 7% OTHERS 9% 13,393 14,156 Upto 1 Lac 11,550 12,617 11,071 1 Lac to 1 Cr 18% 1 Cr to 10 Cr TRUSTS 2% 10 Cr to 100 Cr 62% 100 Cr + GOVT./LOCAL Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 BODIES 6% Retail & Bulk ^TD Mix T
Slide 24: Funding Profile
Funding Profile In Rs Cr Q3FY23 Q2FY24 Q3FY24 Funding Profile Mix TD 12,576 19,706 21,425 5% Certificate of Deposits - 784 367 4% CASA Refinance 2,410 2,481 2,113 6% 28% TD * CASA 10,817 10,350 10,593 Refinance Securitization/Assignment - - 1390 IBPC IBPC 1200 2080 1830 Securitisation/Aassignment 58
Slide 25: Treasury Update
Treasury Update The Bank’s total net Investment portfolio of Rs. 8,475 Crore comprises of SLR and Non-SLR securities Category ( In Rs. Cr) Q3FY24 SLR 7,756 Non SLR 719 Total 8,475 Borrowings & Liquidity • The Bank’s Certificate of Deposits (CD) programme has highest rating at A1+ from India Rating,
Slide 26: Financials
Financials eB BEYOND BANKING | When you bank with us, you contribute towards a better society. 25
Slide 27: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Dec-23 Dec-22 YoY % Sept-23 QoQ% Capital & Liabilities Capital 1,131 1,254 -10% 1,122 1% Reserves & Surplus 4,584 3,386 35% 4,357 5% Networth 5,715 4,640 23% 5,479 4% Deposits 32,385 23,362 39% 30,839 5% Borrowings 2,113 2,740 -23% 2,481 -15% Other Liabilities &
Slide 28: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q3FY24 Q3FY23 YoY% Q2FY24 QoQ% Interest Income from Loans 1,274 959 33% 1,225 4% Income on Investments 149 81 84% 126 18% Interest on balances with RBI and other inter bank funds 6 23 -75% 8 -25% Total Interest Income 1,429 1,063 34% 1,359 5% Finance Cost
Slide 29: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q3FY24 Q3FY23 YoY% Q2FY24 QoQ% Net Income 971 774 25% 927 5% Employee Cost 346 292 19% 332 4% Opex* 264 203 30% 265 0% Total Operating Expenditure 610 495 23% 597 2% PBT before provision & Write-off 360 279 29% 330 9% Credit Cost 84 50 69% 63 34% PBT 276
Slide 30: Key Ratios - Annual
Key Ratios - Annual Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 8.13% 8.06% 9.11% 6.96% 6.75% 7.34% 7.19% 9.00% 6.34% 6.16% 2.04% 6.58% 6.38% 5.52% 6.00% 1.70% 1.89% 1.45% 1.39% 8.55% 8.54% 8.56% 1.10% 8.44% FY19 FY20 FY21 FY22 FY23 9MFY24 FY19 FY20 FY21 FY22 FY23 9MFY24 FY19 FY20 FY2
Slide 31: CSR Initiatives
CSR Initiatives BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 32: CSR Initiatives
CSR Initiatives SKILL TRAINING Women Trained: Inception Year - 2008 Q3FY24 - 9874 CHILDREN SCHOLARSHIP FREE CATARACT SURGERIES Cumulative - 653152 Beneficiaries:- Beneficiaries:- Q3FY23 – 13 Q3FY24 – 871 Cumulative - 2571 Cumulative - 36630 DIFFERENTLY ABLED WOMEN EMPOWERMENT Financial help: Exhibit
Slide 33: Beyond Banking 28K+ Reach
Beyond Banking 28K+ Reach Circle of Life – Rebirth of farmer’s passion https://youtu.be/KrJ-1SWjZks?si=XnKjN4DtiLBsRriI Investor Relations Equitas Small Finance Bank Limited Website – https://ir.equitasbank.com/ Email – ir@equitasbank.com Twitter - @EquitasIR 4th Floor, Phase II, Spencer Plaza, No.
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