Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q4 FY24 Earnings Presentation
44 slides from Equitas Small Finance Bank's earnings presentation, Apr 24, 2024
Slide 1: Cover letter to stock exchanges
April 24, 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 ot
Slide 2: Investor Presentation Q4FY24
Investor Presentation Q4FY24 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. Long Term Initiatives 3. Financial Performance 4. Advances 5. Liabilities & Branch Banking 6. Financials 7. Beyond Banking 3
Slide 5: Key Highlights
Key Highlights BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 6: Snapshot
Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: Total Deposits: PAT for Q4FY24: 18 States and UTs Rs. ^34,337 Cr [Rs. 27,861 Cr] Rs. 36,129 Cr [Rs. 25,348 Cr] Rs. 208 Cr [Rs. 190 Cr] SBL - 38%, VF - 24%, CASA – 32%, TD – 68% MFI - 18%, HF - 12% MSE - 3%, NBFC - 2% D
Slide 7: Key Highlights: Business Updates
Key Highlights Business Updates • Gross Advances growth stood at 23% YoY and 5% QoQ , by moderating lending to new commercial vehicles and slowing down lending to NBFC • Yield on disbursement improved by 135 bps to 18.74% in Q4FY24 over previous year • 30 to 90 DPD remains healthy at ~3% of advances
Slide 8: Key Highlights: Deposits Business Updates
Key Highlights Business Updates • Overall deposits grew by 43% YoY & 12% QoQ led by strong Term Deposit growth of 68% YoY and 65% YoY growth in retail TD. • CASA is maintained at 32% and SA grew by 6% YoY & 7% QoQ • ASBA services pick up momentum, 20k+ Customers availed ASBA services as on Q4FY24, w
Slide 9: Highlights: Digital Businesses
Highlights Digital Businesses • Live with National Common Mobility which shall enable customers to use their Debit Cards as a travel card for Metro Rail and Buses. • “ENVEST”, an In-House digital investment portal marked a growth of 40% YoY on number of registered customers. Crossed 30,000 customer
Slide 10: Highlights: Asset Quality & Provisioning
Highlights Asset Quality & Provisioning • GNPA improved by 8 bps YoY to 2.52% in Q4FY24 as compared to 2.60% in Q4FY23 ; including securitization book, GNPA would stand at 2.39% • NNPA improved by 2 bps YoY to 1.12 % in Q4FY24 as compared to 1.14% in Q4FY23 • Gross Slippages Stands at 3.87% for Q4FY
Slide 11: Key Highlights: One time P&L impact items
Key Highlights One time P&L impact items in Q4 FY4 • Increase in Fresh slippage due to NPA classification of advances involving co-borrowers: I. Based on the Bank’s request, RBI has clarified that when an account with A as borrower and B as Co-borrower becomes NPA, it would result in a chain effect
Slide 12: Long Term Initiatives
Long Term Initiatives BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 13: Long Term Investment: Technology
Long Term Investment: Technology The Bank is building tech-platforms for scale and experience. These platforms will drive consolidation of core systems, create sustainable skill sets and aid in adoption of emerging technology trends Focus Loan Origination CRM Super App Theme Theme: Consolidation The
Slide 14: Long Term Investment: Products
Long Term Investment: Products The Bank aims to tap opportunities for cross selling, deepening customer relationships and creating digital assets to enable it to remain competitive. PL & Credit Card 3 Yr Estimated Opex plan Selfe “Savings & Loans” AD1 Services Theme: Cross sell and Theme: Digital Ac
Slide 15: Long term Investments: Compliance Controls
Long term Investments: Compliance Controls Strengthening Controls and Reassessment and enhancement of system controls across various products, processes and Compliance regulatory compliances Automation to drive transparency Developing an end-to-end platform for inspection, testing and reporting to p
Slide 16: Competitive Edge through liabilities: 2025-28
Competitive Edge through liabilities: 2025-28 Liabilities 1.0 : 2016 to 2024 During the Liabilities 1.0 the Bank had a product focus to create pools of depositors across CA, SA, Retail TD and Bulk TD. Teams were segregated to drive customer acquisition across these product channels. Strategy: 1) Cus
Slide 17: Liabilities 2.0 : 2025 to 2028
Liabilities 2.0 : 2025 to 2028 Strategic focus to pivot on the Bank’s deep understanding of the customers it acquired over the past 8 years and leverage technology and platforms to drive innovations. Strategy: 1. Product centric to Customer Segment focus: Cost of Outlook a) Family Banking (Mass Affl
Slide 18: Financial Performance – Quarterly Trends
Financial Performance – Quarterly Trends 17
Slide 19: Key Ratios
Key Ratios Daily Avg Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 7.44% 9.10% 6.42% 6.37% 7.21% 7.36% 8.76% 6.10% 5.98% 6.94% 8.43% 8.37% 5.83% 8.17% 2.28% 2.10% 6.61% 2.03% 1.98% 1.91% Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4
Slide 20: Income Evolution
Income Evolution Net Income Evolution (Rs. Cr) PPoP / Assets (%) 743 766 785 786 707 3.79%* 3.53% 3.42% 3.38% 3.45% ^ 222 215 185 150 161 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 NII Other Income (Net) Other Income [Net] Contribution^ (%) Liability Fee Income (Rs .Cr) TP
Slide 21: Yield & Cost of Funds Trend
Yield & Cost of Funds Trend Yield & COF March June Sept Dec March 18.77% 18.74% Particulars 2023 2023 2023 2023 2024 18.34% 18.30% CD Ratio 103.40 100.95 94.52 91.49 86.98 7.36% 7.44% 7.21% CD Ratio 91.55 90.22 86.47 84.97 82.03 6.94% (after reducing refinance 17.59% borrowings from 17.41% advances)
Slide 22: Opex evolution
Opex evolution Rs. Cr Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Employee expenses 304 328 332 346 363 Other expenses (net of digital expenses) 207 224 232 229 234 Depreciation 25 29 33 35 37 Total Operating expenses 536 581 597 610 634 No. of employees 20,563 20,996 21,862 21,679 22,854 Cost to Income 65.0
Slide 23: Advances
Advances BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 24: Advances evolution
Advances evolution Rs Cr Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 YoY % Contribution % Micro Finance & Micro Loans 5,225 5,626 5,878 6,056 6265 20% 18% Small Business Loans (SBL) 10,083 10,787 11,550 12,285 13152 30% 38% Housing Finance 2,873 3,206 3,582 3,884 4184 46% 12% Vehicle Finance 6,971 7,342 7,77
Slide 25: Disbursements evolution
Disbursements evolution Rs Cr Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 YoY % Micro Finance & Micro Loans 1,676 1,464 1,406 1,380 1,466 -13% Small Business Loans (SBL) 1,464 1,361 1,494 1,435 1,627 11% Housing Finance 557 438 500 439 470 -16% Vehicle Finance 1,591 1,168 1,341 1,239 1,254 -21% Used CV 743 5
Slide 26: Segmental Details
Segmental Details Number of Live ATS @ ATS @ Product Segment GNPA (%) PCR (%) Loans Disbursement (Lacs) Portfolio (Lacs) Micro Finance 20,35,674 0.52 0.31 4.02% 78.88% Small Business Loans (SBL) 2,88,037 7.53 4.57 1.86% 28.67% Housing Finance 26,6740 12.70 15.71 0.97% 33.20% Vehicle Finance 2,08,355
Slide 27: Asset Quality Trend
Asset Quality Trend 950 2.60% 2.60% 2.38% 2.52% 3.0 0% 850 2.12% 2.5 0% 750 2.0 0% 650 1.12% 1.06% 1.12% 1.14% 0.91% 1.5 0% 550 1.0 0% 450 0.5 0% 350 0.0 0% 250 724 312 770 325 660 279 750 330 821 359 -0.50% 150 50 -1.00% Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 GNPA (Rs. Cr) NNPA (Rs. Cr) GNPA % NNPA % G
Slide 28: Strengthening Provision Coverage
Strengthening Provision Coverage Provisioning Provisioning Asset Classification Nature as per IRAC as per Equitas PCR Sub-standard Secured 15% 25% 57.79% 57.72% 56.90% Unsecured 25% 70% 55.97% 56.06% Doubtful-1 Secured 25% 65% 50.84% Unsecured 100% 100% 50.49% Doubtful-2 Secured 40% 80% 48.46% Unsec
Slide 29: Liabilities & Branch Banking
Liabilities & Branch Banking 28
Slide 30: Deposits Evolution
Deposits Evolution CA SA CASA TD CASA+TD as on 31 Mar 2024 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 1215 10,337 11,552 ^24,577 36,129 as a % of total borrowings (Rs. 37,917 Cr) 3% 27% 30% 65% 95% as a % of total deposits (Rs. 36,129 Cr)
Slide 31: Customer Deposit Profile
Customer Deposit Profile Elite Book (Rs. Cr) Savings Slab Wise (%) Deposit Category 9% 7% OTHERS 9% 14,921 6% Upto 1 Lac 13,393 14,156 11,550 12,617 1 Lac to 1 Cr 1 Cr to 10 Cr 17% TRUSTS 3% 10 Cr to 100 Cr 60% 100 Cr + GOVT./LOCAL Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 BODIES 7% Retail & Bulk ^TD Mix T
Slide 32: Funding Profile
Funding Profile Book Value (In Rs Cr) Q4FY23 Q3FY24 Q4FY24 Funding Profile Mix TD 14,644 21,390 22,937 4% Certificate of Deposits - 367 1640 4% 4% CASA Refinance 2,974 2,113 1,788 28% TD * CASA 10,704 10,628 11,552 Refinance Securitization/Assignment - 1317 1732 IBPC IBPC 1650 1830 1180 Securitisati
Slide 33: Treasury Update
Treasury Update The Bank’s total net Investment portfolio of Rs. 9,069 Crore comprises of SLR and Non-SLR securities Category ( In Rs. Cr) Q4Y24 SLR 8,382 Non SLR 687 Total 9,069 Borrowings & Liquidity • The Bank’s Certificate of Deposits (CD) programme has highest rating at A1+ from India Rating, C
Slide 34: Financials
Financials BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 35: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Mar-24 Mar-23 YoY % Dec-23 QoQ% Capital & Liabilities Capital 1,135 1,111 2% 1,131 0% Reserves & Surplus 4,834 4,047 19% 4,584 5% Networth 5,969 5,158 16% 5,715 4% Deposits 36,129 25,348 43% 32,385 12% Borrowings 1,788 2,974 -40% 2,113 -15% Other Liabilities & Pr
Slide 36: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q4FY24 Q4FY23 YoY% Q3FY24 QoQ% FY24 FY23 YoY% Interest Income from Loans 1,279 1,047 22% 1,274 0% 4,921 3,765 31% Income on Investments 157 101 56% 149 5% 540 316 71% Interest on balances with RBI and other inter bank 9 8 3% 6 50% 26 82 -68% funds Total I
Slide 37: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q4FY24 Q4FY23 YoY% Q3FY24 QoQ% FY24 FY23 YoY% Net Income 1,008 922 9% 971 4% 3,799 3,102 22% Employee Cost 363 304 20% 346 5% 1,369 1,097 25% Opex* 270 232 17% 264 2% 1,052 829 27% Total Operating Expenditure 634 536 18% 610 4% 2,421 1,926 26% PBT before
Slide 38: Key Ratios - Annual
Key Ratios - Annual Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 8.13% 8.06% 9.11% 9.00% 6.96% 6.75% 7.34% 7.26% 6.34% 6.05% 2.00% 6.58% 6.38% 5.52% 6.00% 1.70% 1.89% 8.55% 8.54% 1.45% 1.39% 8.44% 8.36% 1.10% FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY
Slide 39: Our Presence
Our Presence Map not to scale . Districts present in | Branch network States Advances (%) Deposits (%) Andhra Pradesh 4% 3% Chandigarh - 3% Chhattisgarh 1% 2% 27 Punjab Himachal Pradesh 3 Delhi 2% 8% 1 Chandigarh Uttarakhand 1 30 Haryana Gujarat 5% 6% Delhi 16 68 Rajasthan Haryana 2% 4% Himachal Pra
Slide 40: Beyond Banking
Beyond Banking BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 41: Equitas Development Initiatives Trust: Equitas Gurukul Schools
Equitas Development Initiatives Trust: Equitas Gurukul Schools “Nurture and empower children by 100% Pass (%) in 3 Schools; Overall (8 Schools) Pass (%) - 99% providing holistic education and transform them into responsible Total No. of Centum in 8 Schools - 60 individuals.” No. of Schools: 8 • Owne
Slide 42: Equitas Healthcare Foundation: Launched the hospital in Nov '23
Equitas Healthcare Foundation: Launched the hospital in Nov ‘23 Patient Footfalls: SRINGERI SHARDA EQUITAS CANCER CUM MULTISPECIALITY HOSPITAL Q4FY24 – 3323 Cumulative – 4600 . No. of Chemotherapies: No. of Tests - Radiology Q4FY24 – 309 Investigation: Cumulative – 425 Cumulative - 2308 No. of Surge
Slide 43: CSR Initiatives
CSR Initiatives SKILL TRAINING Women Trained: Inception Year - 2008 Q4FY24 - 14716 CHILDREN SCHOLARSHIP FREE CATARACT SURGERIES Cumulative - 667875 Beneficiaries:- Beneficiaries:- Q4FY24 – 33 Q4FY24 – 561 Cumulative - 2604 Cumulative - 37392 DIFFERENTLY ABLED WOMEN EMPOWERMENT Financial help: Exhibi
Slide 44: Beyond Banking 28K+ Reach
Beyond Banking 28K+ Reach Circle of Life – Work is Worship https://www.youtube.com/watch?v=02ul4kX-NYs?si=atq8yTYuw9fslJz1 Investor Relations Equitas Small Finance Bank Limited Website – https://ir.equitasbank.com/ Email – ir@equitasbank.com Twitter - @EquitasIR 4th Floor, Phase II, Spencer Plaza, N
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