Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q3 FY2021 Earnings Presentation
39 slides from Equitas Small Finance Bank's earnings presentation, Jan 28, 2021
Slide 1: Regulation 30 intimation letter to stock exchanges
January 28, 2021 The Secretary The Secretary National Stock Exchange of India Limited BSE Limited Exchange Plaza, Phiroze jeejeebhoy Towers Bandra Kurla Complex Dalai Street Mumbai - 400051 Symbol : EQU1TASBNK - Mumbai 400 001 Scrip Code : 543243 Dear Sir / Madam Sub: Intimation under Regulation 30
Slide 2: Q3FY21 Investor Presentation
Q3FY21 Investor Presentation
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: Contents
Contents 01 02 03 04 05 Key Highlights Financial Advances Liabilities & Financials Performance Branch Banking Page : 06 Page : 11 Page : 15 Page : 24 Page : 34 3
Slide 5: Journey of building a Stable, Sustainable and Scalable Bank
Journey of building a Stable, Sustainable and Scalable Bank Covid-19 FY15 - FY21 Indicators 20,0 00 Change 85.00% Yield -4.02 Cyclone Gaja 79.21% 75.39% NIM 18,0 00 -2.23 17,373 75.00% 70.72% CoF 4.67 16,0 00 66.33% 15,367 Cost to Assets 1.87 65.00% Net positive impact 14,0 00 0.29 Demonetisation 53
Slide 6: Road to profitability
Road to profitability SFB Operating COVID - 19 NBFC NBFC Demonetization Conversion Leverage 11.30% 3.09% 12.10% 2.96% 2.02% Cost of Funds 10.10% 1.64% 1.45% 1.39% RoA 8.49% 8.21% 7.97% 0.30% 7.39% FY15 FY16 FY17 FY18 FY19 FY20 9MFY21 FY15 FY16 FY17 FY18 FY19 FY20 9MFY21 12.34% 79.97% Cost to Income
Slide 7: Key Highlights
Key Highlights 6
Slide 8: Snapshot
Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: Total Deposits: PAT: 17 States and UTs Rs. 17,373 Cr [Rs. 14,615 Cr] Rs. 15,862 Cr Q3FY21 Rs. 111 Cr [Rs. 94 Cr] SBL- 43%, VF - 25%, MFI- 20%, [Rs. 10,493 Cr] 9MFY21 Rs 271 Cr [Rs. 201 Cr] MSE – 6%, NBFC – 5% Third Par
Slide 9: Highlights – Q3FY21
Highlights – Q3FY21 Advances: • Advances as of Q3FY21 was at Rs. 17,373 Cr, Advances growth of 19% YoY • Disbursement at 80% pre-Covid level, disbursed Rs. 2,461 Cr in Q3FY21 • 79.21% of advances is secured loans, Microfinance loans constitute 20% with no exposure in Assam and West Bengal • Collecti
Slide 10: Highlights – Q3FY21
Highlights – Q3FY21 Profit & Loss: • Net Interest Income for Q3FY21 at Rs. 484 Cr as against Rs. 384 Cr in Q3FY20, growth of 26% YoY. NIM at 8.47% • Core Income (Net Income other than PSL Fees, Treasury & Others) at 87% • PBT before provisions and write off for Q3FY21 at Rs. 275 Cr as against Rs. 15
Slide 11: Highlights – Q3FY21
Highlights – Q3FY21 Treasury & Liquidity: • The Bank currently maintains ‘excess’ liquidity in the form High Quality Liquid Assets (HQLA). Liquidity Coverage Ratio (LCR) as on 31.12.2020 at 196%. The Bank intends to revert to ‘adequate surplus liquidity’ of ~130% • During the quarter, Bank repaid TL
Slide 12: Financial Performance
> equibas Financial Performance
Slide 13: Key Ratios
Key Ratios Cost of Funds Net Interest Margin (NIM)^ Cost to Assets RoA 8.01% 9.54% 2.11% 6.96% 7.77% 6.54% 1.88% 1.83% 9.17% 9.02% 5.81% 5.58% 5.89% 7.56% 7.36% 8.63% 1.15% 7.27% 8.47% 0.91% Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q3FY
Slide 14: Income Evolution
Income Evolution Net income evolution (in Rs. Cr) 461 484 384 424 404 146 86 74 64 30 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 NII Other Income Other Income Break-up (Rs. Cr) Non-interest income * evolution 2.5 0% 23.22% 25. 00% 2.3 0% 2.1 0% 18.26% 2.30% 20. 00% 12% Banking Fees & 27% Other Charges 1.9 0
Slide 15: Opex Evolution
Opex Evolution Rs Cr Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Employee expenses 184 187 194 188 205 Other expenses 101 100 78 99 131 Depreciation 26 22 19 19 19 Total Operating expenses 311 309 292 305 355 No. of employees 15,836 16,104 15,843 15,879 16,036 Opex evolution 7.5 0% 70. 00% 67.27% 68. 00% 6.5
Slide 16: Advances
> equibas Advances
Slide 17: Advances Evolution & Diversified Book
Advances Evolution & Diversified Book Rs Cr Q3FY21 Q3FY20 YoY Growth % 898 , 225 , 5% 1% 988 , Micro Finance 3,491 3,504 -0.37% 3,491 , 6% 20% Small Business Loans 7,496 5,931 26% (Incl. HF) 4,275 , Vehicle Finance 4,275 3,591 19% 25% MSE Finance 988 563 75% 7,496 , NBFC 898 760 18% 43% Others † 225
Slide 18: Advances Evolution & Diversified Book
Advances Evolution & Diversified Book Rs Cr Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Micro Finance 3,504 3,616 3,618 3,641 3,491 Small Business Loans (Incl. HF) 5,939 6,279 6,484 7,052 7,496 Small Business Loans 4,739 4,995 5,152 5,580 5,890 Housing Finance 536 604 629 715 834 Agri Loans 664 680 703 757 7
Slide 19: Product Segment Details
Product Segment Details Number of ATS @ ATS @ GNPA* PCR Product Segment Live Loans Disbursement (Lacs) Portfolio (Lacs) (%) (%) Micro Finance 21,31,905 0.26 0.16 5.22% 89.60% Small Business Loans (Incl. HF) 2,28,962 5.52 3.27 3.02% 35.71% Vehicle Finance 1,29,911 4.06 3.29 5.49% 47.43% MSE Finance 1
Slide 20: Disbursements Product Wise
Disbursements Product Wise Rs Cr Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Micro Finance 1,022 814 132 390 596 Disbursement (Rs. Cr) Small Business Loans (Incl. HF) 943 682 266 708 873 Small Business Loans 744 532 204 523 654 3,080 Housing Finance 107 92 30 115 151 2,461 Agri Loans 92 58 32 70 68 2,405 Veh
Slide 21: Asset Quality Trend
Asset Quality Trend 450 .00 3.5 0% 2.86% 2.72% 2.68% 3.0 0% 2.39% 400 .00 2.23% 2.5 0% 350 .00 1.64% 1.50% 2.0 0% 300 .00 1.39% 1.00% 1.5 0% 0.65% 250 .00 1.0 0% 200 .00 0.5 0% 150 .00 0.0 0% 387.60 130.86 100 .00 417.96 255.40 417.32 247.61 416.67 232.37 399.65 198.92 -0.50% 50.0 0 -1.00% Q3FY20 Q4
Slide 22: Collection Efficiency
Collection Efficiency Collection Efficiency Billing Efficiency Product Segments December 2020 December 2020 Micro Finance 97.98% 91.29% Small Business Loans 104.56% 90.56% Vehicle Finance 108.39% 82.25% MSE Finance 192.55% 88.88% Corporate 149.36% 94.51% Total 105.36% 88.73% 1. Collection efficiency
Slide 23: Asset Quality (Proforma)
Asset Quality (Proforma) As of Sep 30, 2020 As of Dec 31, 2020 Particulars (Rs. Cr) MF Non MF Bank MF Non MF Bank GNPA 46 415 461 182 540 723 NPA provision 31 180 211 163 250 414 Floating Provision - - 19 19 Net NPA 15 235 250 19 290 309 Gross Advance[Including IBPC] 3,641 13,085 16,726 3,491 13,882
Slide 24: Provisions & Contingency
Provisions & Contingency Sr. No Provisions and Contingencies for the Q3FY21 Rs. Cr 1 NPA Provision for the quarter 20.68 Add: Loan assets written off 18.29 38.97 2 Contingency Provision [Standstill]* 85.99 3 Additional Contingency Provision [Standstill due to Acceleration of Provisioning Rates] 78.8
Slide 25: Liabilities & Branch Banking
Liabilities & Branch Banking 24
Slide 26: Customer Deposits Evolution
Customer Deposits Evolution Update for Q3Y21 CA SA CASA TD CASA+TD as on 31 December 2020 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 442 3,524 3,967 11,724 15,691 as a % of total borrowings (Rs. 21,429 Cr) 2% {11%} 16% 18% 55% 73% as a %
Slide 27: Customer Deposit Profile
Customer Deposit Profile Deposits by Category Mass Affluent Customer* (Deposit in Rs. Cr) Savings Account Value Slabs 8.04% 22.02% PENSION/PROVIDENT 1,906 1% 25.71% FUNDS/ INSURANCE 1,703 1,526 15.52% 1,392 2,378 OTHERS 4% 1,786 930 1,188 28.71% Q4FY20 Q1FY21 Q2FY21 Q3FY21 TRUSTS 4% < 1L 1L to < 10L
Slide 28: Update on Channels, Acquisition & Product Initiatives
Update on Channels, Acquisition & Product Initiatives CASA Account High Variant Account Acquisition Acquisition • In partnership with Aditya Birla Securities Ltd 3 in 1 • Launched in Nov’20 1,33,902 Account 1,19,790 9,898 • 5,000+ Accounts opened 9,778 82,793 51,076 3,380 3,949 • Equitas Eva - Exclu
Slide 29: Alliances and Partnerships
Alliances and Partnerships Other Digital Opportunities Sponsorship/ Monetisation of Payments Services Major Fintech Partnerships • Sub membership for Co-operative Banks • Looking to onboard a few Medium/Small cooperative Banks • Wealth Management Platform • FD as an investment option to customers •
Slide 30: Overview of TPP Business
Overview of TPP Business MF AUM (Rs. Cr) Premium Collected (Rs. Cr) LI 138.41 GI 8.92 7.40 127.16 6.88 121.51 9.82 8.88 6.84 Q1FY21 Q2FY21 Q3FY21 Q1FY21 Q2FY21 Q3FY21 Life Insurance General Insurance # Of Policies Issued Policies Sold in Q3FY21 Policies Sold in Q3FY21 ULIP Others 5.0% 2.0% Fire GI 3
Slide 31: Debit Card & Spends Snapshot
Debit Card & Spends Snapshot Cards Issued Debit Card Transaction Trend 40 1.70 1.80 1.80 2.00 3,93,130 1.50 1.50 1.50 1.50 1.80 35 1.30 1.30 1.60 30 25 1.20 1.40 1.20 1,84,021 20 0.80 35 37 0.70 1.00 28 32 1,11,629 27 15 85,751 92,962 1,04,383 10 26 25 22 23 25 0.80 45,652 15 0.60 5 11 0.40 0 0.20 O
Slide 32: Funding Profile
Funding Profile As on 31 December 2020 In Rs Cr September 2020 December 2020 1% 1% 1% TD 9,342 11,724 Refinance 5,571 5,047 19% TD CASA 3,246 3,967 Refinance CD 312 171 CASA Sub Debt 220 220 55% IBPC Term Borrowing 260 - Certificate of Deposit 24% Sub-ordinated Debt IBPC 600 300 Repo Borrowing 124 -
Slide 33: Treasury
Treasury Investments Total Investment Portfolio of Rs. 3,765 Crore comprises of SLR and Non SLR as given below: Category (Rs. Cr) Book Value • During the quarter, Bank opted to repay TLTRO borrowings of Rs. 124 Crs to RBI. Associated Non-SLR securities were shifted out of HTM and SLR 3,691 partially
Slide 34: Pan India Presence
Pan India Presence State Wise Advances State Wise Deposits Banking Outlets Uttar… 0.10% Pondichery 0.32% Pondicherry 0.35% Telangana 1% Chandigarh 0.34% Andhra… 1% Chattisgarh 1% Uttar… 1% Andhra… 1% Chattisgarh 2% Punjab 2% Madhya… 2% Delhi 2% Gujarat 3% Telangana 2% Chandigarh 6% Haryana 2% Rajast
Slide 35: Financials
> equibas Financials
Slide 36: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Dec-20 Dec-19 YoY% Sept-20 QoQ% Capital & Liabilities Capital 1,138 1,053 8% 1,053 8% Reserves & Surplus 2,143 1,652 30% 1,852 16% Networth 3,280 2,705 21% 2,905 13% Deposits 15,862 10,493 51% 12,901 23% Borrowings 5,266 4,663 13% 6,174 -15% Other Liabilities & P
Slide 37: Profit & Loss Statement
Profit & Loss Statement Particulars (in Rs Cr) Q3FY21 Q3FY20 YoY% Q2FY21 QoQ% Interest Income from Loans 773 621 24% 730 6% Income on Investments 60 41 46% 57 5% Interest on balances with Reserve Bank of India and other inter bank funds 24 15 60% 11 118% Total Interest Income 857 677 27% 798 7% Fina
Slide 38: Profit & Loss Statement
Profit & Loss Statement Particulars (in Rs Cr) Q3FY21 Q3FY20 YoY% Q2FY21 QoQ% Net Income 630 469 34% 525 20% Employee Cost 205 184 11% 188 9% Opex 150 127 18% 117 28% Total Operating Expenditure 355 311 14% 305 16% PBT before provision & Write-off 275 158 74% 220 25% Credit Cost 126 40 215% 84 50% P
Slide 39: Thank You
Thank You 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. 769, Mount Road, Anna Salai, Chennai 600 002, Tamil Nadu
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