Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q2 FY25 Earnings Presentation
40 slides from Equitas Small Finance Bank's earnings presentation, Nov 8, 2024
Slide 1: Exchange filing cover letter: Submission of Investors presentation
November 08, 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 Q2FY25
Investor Presentation Q2FY25 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 4. Asset Quality 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 Q2FY25: 18 States and UTs Rs. ^36,053 Cr [Rs. 31,229 Cr] Rs. 39,859 Cr [Rs. 30,839 Cr] Rs. 13 Cr [Rs. 198 Cr] SBL - 41%, VF - 25%, CASA – 31%, TD – 69% PAT impacted due to Rs.146 crs of addition
Slide 7: Half Yearly Credit Cost Summary
Half Yearly Credit Cost Summary Particulars – H1FY25 Credit Cost % Rs Crores Microfinance & Micro Loans including one time provision buffer 10.18% 303.23 Rest of the portfolio 1.04% 151.07 Total credit cost for the bank excluding one time floating provision 2.59% 454.30 One time Floating provision c
Slide 8: Key Highlights
Key Highlights Assets • Gross Advances growth at 15% YoY and 3% QoQ • Non MF book grew 20% YoY, led by 23% growth in Housing Finance and 28% growth in SBL over previous year. Within SBL , MLAP witnessed strong growth of 12% QoQ. Disbursement in MLAP grew 156% YoY • The Bank continued to realign grow
Slide 9: Key Highlights
Key Highlights Liabilities • Overall deposits grew by 29% YoY & 6% QoQ led by strong growth Retail TD of 39% • CASA ratio stable at 31%; CA balances grew 72% YoY • SA costs drops by 13 bps QoQ during the quarter. Cost of SA during the quarter was 6.05% • Total Retail Deposits (Retail TD+CASA) forms
Slide 10: Highlights
Highlights Asset Quality & Provisioning • GNPA increased by 28 bps QoQ to 2.95% in Q2FY25 as compared to 2.67% in Q1FY25; including securitization book, GNPA would stand at 2.84% • NNPA increased by 16 bps QoQ to 0.97% in Q2FY25 as compared to 0.81% in Q1FY25 • Bank further accelerated provisions; M
Slide 11: Financial Performance – Quarterly Trends
Financial Performance – Quarterly Trends 10
Slide 12: Key Ratios
Key Ratios Daily Avg Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 7.44% 7.46% 7.50% 7.21% 7.36% 8.43% 8.37% 8.17% 6.10% 5.98% 5.83% 5.70% 5.74% 7.97% 7.69% 2.03% 1.98% 1.91% 0.22% 0.11% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2
Slide 13: Income Evolution
Income Evolution Net Income Evolution (Rs. Cr) PPoP / Assets (%) 766 785 786 802 802 3.53% 3.45% 3.38% 2.97% 2.94% ^ 222 229 161 185 192 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 NII Other Income (Net) Other Income [Net] Contribution (%) Liability Fee Income (Rs .Cr) TPP
Slide 14: Yield & Cost of Funds Trend
Yield & Cost of Funds Trend Yield & COF Sept Dec March June Sept Particulars 2023 2023 2024 2024 2024 16.50% 16.45% 16.45% 16.49% CD Ratio % 94.52 91.49 86.98 86.75 86.94 16.34% CD Ratio % 86.47 84.97 82.03 83.01 84.22 (after reducing refinance borrowings from advances) 7.50% 7.21% 7.36% 7.44% 7.46%
Slide 15: Opex evolution
Opex evolution Rs. Cr Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Employee expenses 332 346 363 375 402 Other expenses (net of digital expenses) 232 229 234 243 245 Depreciation 33 35 37 36 34 Total Operating expenses 597 610 634 653 681 No. of employees 21,862 21,679 22,854 22,585 23,233 Cost to Income 66.0
Slide 16: Advances
Advances BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 17: Advances evolution
Advances evolution Rs Cr Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 YoY % Contribution % Micro Finance & Micro Loans 5,878 6,056 6265 5973 5636 -4% 16% Small Business Loans (SBL) 11,493 12,285 13152 13747 14678 28% 41% Housing Finance 3,582 3,884 4184 4342 4389 23% 12% Vehicle Finance 7,777 8,093 8324 8472
Slide 18: Disbursements evolution
Disbursements evolution Rs Cr Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 YoY % Micro Finance & Micro Loans 1,406 1,380 1,466 1,035 949 -33% Small Business Loans (SBL) 1,494 1,435 1,627 1,305 1,591 7% Housing Finance 500 439 470 317 383 -24% Vehicle Finance 1,341 1,239 1,254 1,061 1,484 11% Used CV 669 622 6
Slide 19: Segmental Details
Segmental Details Number of Live ATS @ ATS @ Product Segment GNPA (%) PCR (%) Loans Disbursement (Lacs) Portfolio (Lacs) Micro Finance 18,42,000 0.57 0.31 4.83% 80.38% Small Business Loans (SBL) 2,91,894 7.42 5.03 2.19% 27.14% Housing Finance 40,391 10.99 10.87 1.29% 29.04% Vehicle Finance 2,24,357
Slide 20: Asset Quality
Asset Quality BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 21: Asset Quality Trend
Asset Quality Trend 1,25 0 2.95% 3.5 0% 2.38% 2.52% 2.67% 3.0 0% 1,05 0 2.12% 2.5 0% 850 2.0 0% 0.91% 1.06% 1.12% 0.97% 1.5 0% 650 0.81% 1.0 0% 450 0.5 0% 0.0 0% 250 660 279 750 330 821 361 889 264 1,023 330 -0.50% 50 -1.00% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 GNPA (Rs. Cr) NNPA (Rs. Cr) GNPA % NNPA
Slide 22: Slippages Trend
Slippages Trend COVID Cycle Normalised Credit Cycle Benign Credit Cycle Current Cycle 17.52% 17.26% 12.67% 8.91% 8.67% 8.36% 8.30% 7.60% Fresh Slippage for Non MFI is well within the Normalized Credit Cycle 7.29% 7.02% 6.35% 6.34% 5.80% 5.79% 5.75% 5.67% 5.62% 5.55% 5.45% 5.43% 5.23% 5.21% 5.03% 4.9
Slide 23: Industry Vs Equitas
Industry Vs Equitas • Equitas puts brakes on MFI disbursement momentum ahead of industry. • Our DPD buckets are similar to SFB Industry levels. ATS in Rs. Lakhs - SFB Industry MFI Portfolio - SFB Industry Vs MFI Industry Vs Equitas Vs Equitas Disbursements Trend* Equitas 1.43% 8.80% 8.80% 1.37% 0.56
Slide 24: DPD trends
Q4FY22 3.83% 2.75% 3.18% Q1FY23 3.34% 1.96% 3.16% Q2FY23 2.21% 1.33% 2.27% Q3FY23 1.09% 0.94% 1.89% Q4FY23 0.92% SMA-0 0.59% 1.42% DPD trends Q1FY24 0.85% 0.49% 0.99% SMA-1 Q2FY24 0.75% 0.57% 0.88% Q3FY24 0.92% MICROFINANCE SMA-2 0.67% 0.95% Q4FY24 0.70% 0.71% 1.13% Q1FY25 1.34% 1.05% 1.27% Q2FY25 2
Slide 25: Additional Provisioning in Microfinance
Additional Provisioning in Microfinance • 31-90 DPD for MFI portfolio has increased to 3.75% in Q2FY25 from 2.32% in Q1FY25 and 3.98% as on Oct2024 • Provisioning of ~ Rs. 146 Crs towards Microfinance made during the quarter • Bank has further strengthened its IRAC provisioning in Microfinance. This
Slide 26: Strengthening Provision Coverage
Strengthening Provision Coverage Provisioning Provisioning PCR MOVEMENT Asset Classification Nature as per IRAC as per Equitas 70.29% Sub-standard Secured 15% 24% 67.71%* Unsecured 25% 80% Doubtful-1 Secured 25% 60% 57.79% 57.72% 100 56.90% Unsecured 100% 100% 55.97% 56.06% Doubtful-2 Secured 40% 70
Slide 27: Liabilities & Branch Banking
Liabilities & Branch Banking 26
Slide 28: Deposits Evolution
Deposits Evolution CA SA CASA TD CASA+TD as on 30 Sep 2024 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 1456 10,728 12,184 27,675 39,859 as a % of total borrowings (Rs. 40,944 Cr) 4% 26% 30% 68% 97% as a % of total deposits (Rs. 39,859 Cr)
Slide 29: Customer Deposit Profile
Customer Deposit Profile Elite Book (Rs. Cr) Savings Slab Wise (%) Deposit Category 11% 7% Upto 1 Lac OTHERS 9% 15,635 16,375 7% 14,156 14,921 1 Lac to 1 Cr 13,393 6% 1 Cr to 3 Cr 3 Cr to 10 Cr TRUSTS 2% 10% 59% 10 Cr to 100 Cr 100 Cr + GOVT./LOCAL Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 BODIES 7% Retail
Slide 30: Funding Profile
Funding Profile Book Value (In Rs Cr) Q4FY24 Q1FY25 Q2FY25 Funding Profile Mix TD 22,937 23,545 25,040 3% 3% Certificate of Deposits 1640 2255 2635 Refinance 1,788 1,403 1,085 29% CASA CASA TD * 11,552 11,724 12,184 Securitization/Assignment Refinance 1732 1570 1398 Securitisation/Aassignment IBPC 1
Slide 31: Treasury Update
Treasury Update The Bank’s total net Investment portfolio of Rs. 9,987 Crore comprises of SLR and Non-SLR securities Category ( In Rs. Cr) Q2FY25 SLR 8,547 Non SLR 1,440 Total 9,987 Borrowings & Liquidity • The Bank’s Certificate of Deposits (CD) programme has highest rating at A1+ from India Rating
Slide 32: Financials
Financials BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 33: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Sep-24 Sep-23 YoY % Jun-24 QoQ% Capital & Liabilities Capital 1,138 1,122 1% 1,136 0% Reserves & Surplus 4,809 4,357 10% 4,872 -1% Networth 5,947 5,479 9% 6,008 -1% Deposits 39,859 30,839 29% 37,524 6% Borrowings 1,085 2,481 -56% 1,403 -23% Other Liabilities & Pr
Slide 34: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q2FY25 Q2FY24 YoY% Q1FY25 QoQ% Interest Income from Loans 1,366 1,225 11% 1,325 3% Income on Investments 170 126 35% 154 10% Interest on balances with RBI and other inter bank funds 19 8 148% 22 -14% Total Interest Income 1,555 1,359 14% 1,501 4% Finance
Slide 35: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q2FY25 Q2FY24 YoY% Q1FY25 QoQ% Net Income 1,031 927 11% 994 4% Employee Cost 402 332 21% 375 7% Opex* 279 265 5% 278 0% Total Operating Expenditure 681 597 14% 653 4% PBT before provision & Write-off 350 330 6% 341 3% Credit Cost 330 63 422% 305 8% PBT 20
Slide 36: Key Ratios - Annual
Key Ratios - Annual Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 8.06% 9.11% 6.75% 7.34% 7.48% 9.00% 6.34% 6.05% 2.00% 6.58% 6.38% 7.26% 5.52% 6.00% 5.71% 1.89% 1.70% 8.44% 8.54% 8.36% 1.39% 1.10% 7.79% 0.17% FY20 FY21 FY22 FY23 FY24 H1FY25 FY20 FY21 FY22 FY23 FY24 H1FY25 FY20 FY21 FY2
Slide 37: Our Presence
Our Presence Map not to scale . Districts present in | Branch network States Advances (%) Deposits (%) Andhra Pradesh 4% 3% Chandigarh - 2% Chhattisgarh 1% 2% 27 Punjab Himachal Pradesh 3 Delhi 2% 8% 1 Chandigarh Uttarakhand 2 30 Haryana Gujarat 4% 6% Delhi 17 68 Rajasthan Haryana 2% 4% Himachal Pra
Slide 38: Beyond Banking
Beyond Banking BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 39: CSR Initiatives
CSR Initiatives SKILL TRAINING Women Trained: Inception Year - 2008 Q2FY25 - 10021 CHILDREN SCHOLARSHIP FREE CATARACT SURGERIES Cumulative - 684944 Beneficiaries:- Beneficiaries:- Q2FY25 – 15 Q2FY25 – 722 Cumulative - 2619 Cumulative - 38707 DIFFERENTLY ABLED WOMEN EMPOWERMENT Financial help: Exhibi
Slide 40: Beyond Banking 100K+ Reach
Beyond Banking 100K+ Reach Circle of Life – A bitter beginning made Sweeter https://youtu.be/lLOnnbATuJ4?si=Dc10ldSetpGVcDL Investor Relations Equitas Small Finance Bank Limited Website – https://ir.equitasbank.com/ Email – ir@equitasbank.com 4th Floor, Phase II, Spencer Plaza, No. 769, Mount Road,
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