Esaf Small Finance Bank Limited · NSE:ESAFSFB
Esaf Small Finance Bank — Q3 FY2025 Earnings Presentation
36 slides from Esaf Small Finance Bank's earnings presentation, Feb 10, 2025
Slide 1: Exchange intimation letter for investor presentation
Ref No: 06/SE/CS/FEB/2024-25 Date: February 10, 2025 To, Listing Department Listing & Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor Dalal Street, Mumbai – 400001 Plot No. C/1, “G” Block Bandra- Kurla Complex Bandra(E),
Slide 2: Investor Presentation | February 2025
Investor Presentation | February 2025
Slide 3: 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 4: Company Overview
Company Overview
Slide 5: Company Overview
Company Overview Structure as on December 31, 2024 o ESAF Small Finance Bank, promoted by Mr. Kadambelil Paul Thomas and ESAF Financial Holdings ESAF Financial Kadambelil Paul Private Limited, commenced operations on March 10, 2017, became a Scheduled Commercial Bank Holdings Private Thomas in Decem
Slide 6: Business Snapshot
Business Snapshot Other Touch Points 91.9 lakh Total Customers 24 States and 2 UTs 1,106 Customer Service Operational 770 Banking Outlets 12,919 Employees 9,005 Total Customer Centers 669 ATMs 35 Institutional Business Touch Points 6,274 Banking Agents Correspondents 186 Business Facilitators Total
Slide 7: Extensive Geographical Footprint
Extensive Geographical Footprint ESAF SFB has a large national footprint with presence in 24 states & 2 UTs Banking Outlets (Nos.) Split of banking outlets across locations Name of the State/ BOs ATMs CSC Ladakh Union Territory Andhra Pradesh 6 6 33 10% Jammu & Assam 5 2 17 Kashmir 11% Himachal Prad
Slide 8: Financial Performance
Financial Performance
Slide 9: Total Loan Book & Disbursement Mix
Total Loan Book & Disbursement Mix Total Loan Book Mix (₹ Crs) Disbursements Mix (₹ Crs) 5,266 5,544 24.0 26.0 26.0 25.4 24.9 4,503 3,893 2,187 4,058 1,554 (42%) 4,226 2,872 (40%) 2,798 (76%) 19,659 19,664 (64%) 3,080 (69%) 19,216 19,161 2,338 1,045 1,038 (58%) 1,632 1,260 1,318 18,149 1,020 1,004 (
Slide 10: Key Profitability Metrics
Key Profitability Metrics Net Interest Income (₹ Crs) Non-Interest Income (₹ Crs) 597 591 588 150 540 487 120 115 112 97 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Pre-Provision Operating Profit (₹ Crs) Profit /Loss After Tax (₹ Crs) 288 285 112 254 63 43 143 127 -190 Q3FY
Slide 11: Key Profitability Ratios
Key Profitability Ratios Margins* (%) Cost to Income (%) 21.1% 20.6% 20.2% 75.9% 19.7% 19.0% 74.7% 64.0% 57.6% 58.6% 10.6% 10.0% 9.4% 8.6% 7.7% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Yield on Advances NIMs ROA* (%) ROE* (%) 2.3% 25.5% 1.9% 20.3% 0.9% 9.9% -0.9% -10.3%
Slide 12: Asset Quality
Asset Quality GNPA & NNPA (%) PCR (%) 6.9% 6.9% 78.6% 6.6% 73.7% 65.2% 61.9% 59.5% 4.8% 4.2% 3.9% 3.2% 2.9% 2.2% 2.3% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 GNPA NNPA NPA Movement (₹ Crs) Description Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Opening balance of Gross NPAs at t
Slide 13: Capital Adequacy
Capital Adequacy Total Assets & Risk Weighted Assets (₹ Crs) Capital Adequacy (%) 26,835 26,646 26,747 26,087 23.3% 23.5% 23.2% 24,300 22.7% 21.0% 19.7% 20.1% 19.6% 18.9% 18.7% 12,684 12,464 12,002 11,669 10,873 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Total Assets Risk
Slide 14: Key Balance Sheet Metrics
Key Balance Sheet Metrics Shareholders Funds (₹ Crs) Gross Advances (₹ Crs) 18,772 18,783 18,340 18,291 2,482 2,486 2,558 17,153 2,333 2,154 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Total Deposits (₹ Crs) CASA Deposits (₹ Crs) 22,415 5,025 5,283 20,887 21,613 4,649 18,86
Slide 15: Key Strengths
Key Strengths
Slide 16: Key Strengths
Key Strengths Strong Rural And Semi-Urban Continued focus on Loan Multi-Nodal Delivery Channels Banking Franchise Diversification Technology Driven Model With Robust Funding Profile and An Advanced Digital Technology Customer Centric Approach Competitive Product Lineup Healthy Capital Adequacy Platf
Slide 17: Multi-Nodal Delivery Channels
Multi-Nodal Delivery Channels Digital Banking Banking Outlets o Application (compatible with Android and iOS) that connects with the National o Provision for full-fledged Payments Corporation of India’s unified o Multiple channels for servicing the banking product & services payments interface platf
Slide 18: Strong Rural And Semi-Urban Banking Franchise
Strong Rural And Semi-Urban Banking Franchise Strong rural and semi-urban franchise of ESAF to take advantage of the growth opportunity in the under-penetrated rural and semi-urban market Majority of advances in rural & semi-urban regions Focusing on rural & semi-urban areas in the liabilities profi
Slide 19: Continued focus on Loan Diversification
Continued focus on Loan Diversification As of December 31, 2024, ESAF SFB had over 56.2 lakh loan customers, the majority of whom were women Growth in Total Loan Book (₹ Crs) Continued focus on Loan Diversification 19% 25% 30% 43% 19,659 19,161 3% 4% 5% 5% 1% 4% 1% 5% 1% 6% 2% 16,331 9% 3% 3% 13% 15
Slide 20: 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) 22,415 94% 91% 92% 92% 19,868 15.9% 14,666 75% 20,737 9.8% 18,368 12,815 7.3% 7.1% 12,046 13,346 72% Mar-22 Mar-23 Mar-24 Dec-24 Mar-22 Mar-23 Mar-24
Slide 21: 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 22: Customer Centric Approach
Customer Centric Approach Products to meet customers’ life-cycle needs Home loans Agri-loans Loan against property Personal Loans Vehicle Loans Gold Loans MSME Micro Assets Customer service measures CUSTOMER SERVICE COMMUNITY 24*7 CALL CENTRE DOOR-STEP BANKING QUALITY DEPARTMENT BUILDING PROGRAMME •
Slide 23: Competitive Product Lineup
Competitive Product Lineup Agri-Lending MSME Micro Assets Retail Assets FIBD Retail Liability Third Party Products Other Services Loan & Advances o Current Accounts Retail o Savings Accounts Agri-Lending Products MSME Retail Assets o Recurring Deposits Liabilities o Fixed Deposits o ESAF Dairy Devel
Slide 24: High Quality Board At The Helm Of The Organization
High Quality Board At The Helm Of The Organization Ravimohan Periyakavil Ramakrishnan Kadambelil Paul Thomas George Kalaparambil John Part time Chairman & Non-Executive Independent Director Managing Director and Chief Executive Officer Executive Director o Bachelor’s and master’s degree in science f
Slide 25: High Quality Board At The Helm Of The Organization
High Quality Board At The Helm Of The Organization Ravi Venkatraman Thomas Jacob Kalappila Vinod Vijayalekshmi Vasudevan Non-Executive Independent Director Non-Executive Independent Director Non-Executive Independent Director o Associate member of the Institute of Chartered Accountants of o Fellow m
Slide 26: Experienced Management Team
Experienced Management Team Supported by a highly experienced team of qualified & experienced professionals Name & Designation Education Prior Associations George Thomas o Senior agriculture officer (assistant director agriculture) - Department o Master’s degree of science in ecology & environment f
Slide 27: Clearly Articulated Strategy
Clearly Articulated Strategy 1 Increase Deposits 2 Increase Advances 3 Deeper Penetration o Target new & existing customers for o Micro Loan Business: o Open additional Branches, ATMs CASA, fixed deposits and recurring • Cross selling and up-selling to its customer base along with engaging existing
Slide 28: 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 29: 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 The Bank received ISO 26000:2010 certification during FY 23-24. It is a recognition for the Bank’s (i) the protection of the environment and ensuring sustainable development ra
Slide 30: Annexures
Annexures
Slide 31: Profit & Loss Statement – Q3 & 9MFY25
Profit & Loss Statement – Q3 & 9MFY25 Particulars (₹ Crs) Q3FY25 Q3FY24 Y-o-Y Q2FY25 Q-o-Q 9MFY25 9MFY24 Y-o-Y Interest Income 949.89 974.40 -2.5% 996.43 -4.7% 2,968.78 2,816.54 5.4% Interest Expense 462.87 377.40 22.6% 456.07 1.5% 1,353.04 1,037.48 30.4% Net Interest Income 487.02 597.00 -18.4% 540
Slide 32: Profit & Loss Statement
Profit & Loss Statement Particulars (₹ Crs) FY24 FY23 FY22 Interest Income 3,818 2,854 1,940 Interest Expense 1,449 1,017 793 Net Interest Income 2,370 1,836 1,147 Other Income 442 288 208 Net Total Income 2,812 2,124 1,355 Employee Benefits Expense 363 278 232 Depreciation and Amortization Expense
Slide 33: Balance Sheet
Balance Sheet Particulars (₹ Crs) Dec-24 Mar-24 Mar-23 Mar-22 CAPITAL AND LIABILITIES Capital 515.08 514.78 449.47 449.47 Employee Stock Option Outstanding 6.93 5.68 5.88 4.81 Reserves and Surplus 1,608.57 1,971.33 1,259.66 957.32 Deposits 22,415.44 19,867.80 14,665.63 12,815.07 Borrowings 1,693.43
Slide 34: Awards & Recognitions
Awards & Recognitions 2019 2020 2021 2022 2023 2024 o Outstanding Achievement Award 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 at the Outreach Programme Year – 2019’ award 2020’ for outstanding Award
Slide 35: Journey So Far
Journey So Far 2024 • Operationalisation of Authorised Dealer Category 1 Licence (Foreign Exchange operations) • Tied up with Edelweiss Life Insurance to broaden the range of insurance products • Entered into a corporate agency partnership with Care Health Insurance Company to provide health coverag
Slide 36: Company and Investor Relations Contacts
COMPANY : ESAF Small Finance Bank Limited Mr. Ranjith Raj P Email: investor.relations@esafbank.com Website: www.esafbank.com CIN : L65990KL2016PLC045669 INVESTOR RELATIONS ADVISORS : MUFG Intime India Private Limited A part of MUFG Corporate Markets, a division of MUFG Pension & Market Services Mr.
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