Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q2 FY2023 Earnings Presentation
46 slides from Equitas Small Finance Bank's earnings presentation, Oct 31, 2022
Slide 1: Exchange cover letter on board meeting outcome
October 31, 2022 The Secretary The Secretary National Stock Exchange of India Limited BSE Limited Exchange Plaza Phiroze Jeejeebhoy Towers BandraKurla Complex (BKC) Dalai Street Bandra (East ) Mumbai - 400001 Mumbai - 400051 Symbol: EQU 1TASBNK Scrip Code No-543243 F Group - Debt Instruments listed
Slide 2: Statement of Unaudited Financial Results
i t EQUITAS SMALL FINANCE BANK LIMITED CIN: L65191TN1993PLC 025280 [ Subsidiary of Equitas Holdings Limited] Rogd. Office: 4th Floor , Phase II, Spencer Plaza, No. 769, Mount Road, Anna Salai, Chennai 600 002 Website: www .equitasbank.com 1. Statement of Unaudited Financial Rosults for the quarter a
Slide 3: Segment information
2. Segment information in accordance with the Accounting Standard on Segment Reporting ( AS -17) of the operating segments of the Bank is as under: (? in Lakh ) Quarter ended Half Year ended Year ended 30- Sep- 22 30-Jun- 22 30- Sep- 21 30- Sep- 22 30-Sep- 21 31- Mar - 22 SI No Particulars Unaudited
Slide 4: Statement of Cash Flow
4 Statement of Cash Flow for the half year ended September 30 ,2022 is given below : (T in Lakh) Half Year ended Year ended Particulars 30- Sep- 22 30- Sep- 21 31- Mar- 22 Unaudited Unaudited Audited Cash Flow from Operating activities Profit Before Tax 27,880.67 7,107.14 37,811.00 Adjustments for D
Slide 5: Notes to financial results
Notes 5 The above unaudited financial results ( along with the notes given below) hereafter described as " Statement” of Equitas Small Finance Bank Limited (“Bank” or “ESFBL") ' for the quarter and half year ended September 30, 2022 were reviewed by the Audit Committee and approved by the Board of D
Slide 6: Notes to financial results (continued)
13 The Bank has granted 1, 78,01,704 options under the ESFB Employees Stock Option Scheme 2019 ( ESFB ESOP Scheme) to eligible employees of the Bank and employees of the Holding company ( Equitas Holdings Limited) as defined during the half year ended September 30, 2022. Out of total 7,70,67,094 opt
Slide 7: Independent Auditors Review Report
T R Chadha & Co LLP Varma & Varma Chartered Accountants Chartered Accountants Door No. 5D, V Floor, Sreela Terrace, Level 4, Unit -D Mount Chambers 105, 1st Main Road, 758, Anna Salai Gandhi Nagar Adyar Chennai - 600 002, Tamil Nadu Chennai - 600 020, Tamil Nadu Independent Auditors Review Report on
Slide 8: Independent Auditors Review Report (continued)
T R Chadha & Co LLP Varma & Varma Chartered Accountants Chartered Accountants Door No. 5D, V Floor, Sreela Terrace, Level 4, Unit -D Mount Chambers 105, 1st Main Road, 758, Anna Salai Gandhi Nagar Adyar Chennai - 600 002, Tamil Nadu Chennai - 600 020, Tamil Nadu including Leverage Ratio Liquidity Co
Slide 9: Press Release
EQUITAS SMALL FINANCE BANK LIMITED FOR IMMEDIATE PUBLICATION PRESS RELEASE Oct 31, 2022 Chennai, Oct 31, 2022: The Board of Directors of Equitas Small Finance Bank Limited at its meeting held today, approved the unaudited financial results for quarter ended September 30, 2022 PAT for the quarter at
Slide 10: Press release: key ratios, capital and P&L
Key Ratios: o Cost to Income at 66.58% in Q2FY23 as compared to 60.60% in Q1FY23 as compared and 66.27% in Q2FY22 o RoA and RoE for Q2FY23 at 1.60% and 10.57% Capital: o As of Sept 30, 2022 Total CRAR at 23.08% | Tier I at 22.55% and Tier II at 0.53% Treasury & Liquidity: o The Bank’s Certific
Slide 11: About Equitas Small Finance Bank Limited
About Equitas Small Finance Bank Limited [ESFB] Equitas Small Finance Bank is one of the largest small finance banks in India. As a new-age bank, we offer a bouquet of products and services tailored to meet the needs of our customers – individuals with limited access to formal financing channels, as
Slide 12: Investor Presentation Q2FY23
Investor Presentation Q2FY23 BEYOND BANKING When you bank with us, you contribute towards a better society.
Slide 13: 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 14: Table of Contents
Table of Contents A k k A BEYOND BANKING k k k A k 1. A A The more you save in k V Key Highlights i i A your account, the more i i 2. Financial Performance i we contribute together. When you bank with us 3. Advances we invest up to 5 % of our net / r profit every year back to the f f communities. r
Slide 15: Key Highlights
Key Highlights BEYOND BANKING When you bank with us, you contribute towards a better society. 4
Slide 16: Snapshot
Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: Total Deposits: PAT for Q2FY23: 18 States and UTs Rs. 22,779 Cr [Rs. 18,978 Cr] Rs. 21,726 Cr [Rs. 18,094 Cr] Rs. 116 Cr [Rs. 41 Cr] SBL- 38%, VF - 25%, CASA – 48%, TD – 52% MFI- 18%, HF- 9% , MSE – 5%, NBFC – 3% Disbu
Slide 17: Business Highlights
Business Highlights Asset Updates Liabilities Updates Small Business Loans • Elite book consisting of Savings account plus Term Deposits crossed Rs. • Piloted new age Loan Origination System (LOS) for Small 10,000 Crs with 75,000+ accounts from 60,000+ Family relationships Business Loans in select b
Slide 18: Highlights
Highlights Profit & Loss • Net Interest Income for Q2FY23 at Rs. 610 Cr as against Rs. 484 Cr in Q2FY22.Growth of 26% YoY. NIM at 9.00% • PPoP as a % of assets expanded to 3.33% from 3.14% YoY • PAT for Q2FY23 at Rs. 116 cr as against Rs. 41 Cr in Q2FY22 fls EO } Asset Quality, Provisioning & Restru
Slide 19: Restructured Loans - Update
Restructured Loans - Update As of 30th Sept 2022 Rs. Cr • Restructured loans as a % of gross advances down Buckets MF CV SBL & HF MSE Total from 9.76% in Q3FY22 to 4.33% in Q2FY23 Standard 44 125 135 16 320 • X Bucket Restructured Loans at 1.40% of 1 to 30 Days 8 76 30 8 121 gross advances • NPA out
Slide 20: Our Presence
Our Presence States Andhra Pradesh Advances (%) 2% Deposits (%) 2% Chandigarh 0.04% 3% Chhattisgarh 1% 2% Delhi 1% 8% Himachal Pradesh 3 27 Punjab a 0 D Gujarat 5% 6% 1 Chandigarh a a ° Uttarakhand 1 0 " ° B 27 Haryana Haryana 3% 5% 0 Delhi 14 Himachal Pradesh 0.09% - 65 Rajasthan Uttar Pradesh 9 °D
Slide 21: Financial Performance – Quarterly Trends
Financial Performance – Quarterly Trends BEYOND BANKING When you bank with us, you contribute towards a better society. 10
Slide 22: Key Ratios
Key Ratios Daily Avg Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA ll 1 1 1 Mil Hill .Mil 6.81% 9.10% 9.12% 9.05% 9.00% 6.63% 6.47% 6.16% 6.45% 1.70% 1.83% 5.73% 5.97% 1.40% 1.60% 6.20% 6.20% 6.25% 8.14% 0.65% Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 J Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY2
Slide 23: Income Evolution
Income Evolution Net Income Evolution (Rs. Cr) PPoP/ Assets (%) 4.35% 3.87% 581 610 3.52% 3.33% 541 552 3.14% 484 100 95 104 100 119 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 NII Other Income (Net) PPoP as a % of assets L 2.0 0% Other Income [Net] Contribution (%) Other I
Slide 24: Opex evolution
Opex evolution Rs. Cr Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Employee expenses 228 240 209* 225# 275 Other expenses (net of digital expenses) 144 152 148 169 187 Depreciation 19 19 17 18 21 Total Operating expenses 391 411 374 412 483 No. of employees 17,441 17,509 17,607 17,936 18,962 Cost to Income(%)
Slide 25: Advances
Advances BEYOND BANKING When you bank with us, you contribute towards a better society. 14
Slide 26: Advances evolution
Advances evolution Rs Cr Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 YoY % Contribution % Micro Finance 3,438 3,695 3,907 4,007 4,144 21% 18% Small Business & Agri Loans 7,421 7,609 7,881 8,234 8,725 18% 38% Housing Finance 1,175 1,310 1,641 1,821 2,121 80% 9% Vehicle Finance 4,670 4,846 5,047 5,279 5,641 21
Slide 27: Disbursements evolution
Disbursements evolution Rs Cr Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 YoY % Micro Finance 938 1,010 972 939 971 4% Small Business and Agri Loans 951 728 940 978 1,096 15% Housing Finance 203 177 267 266 388 91% Vehicle Finance 782 778 940 889 1,098 40% Used CV 523 512 617 579 717 37% New CV 259 266 323 3
Slide 28: Segmental Details
Segmental Details Number of Live ATS @ ATS @ Product Segment GNPA (%) PCR (%) Loans Disbursement (Lacs) Portfolio (Lacs) Micro Finance 18,54,906 0.40 0.22 4.63% 55.14% Small Business Loans 2,31,380 6.30 3.77 4.19% 37.81% Housing Finance 25,102 11.15 8.45 1.17% 33.25% Vehicle Finance 1,76,442 5.20 3.
Slide 29: Asset Quality Trend
Asset Quality Trend 950 .00 4.64% 4.39% 5.0 0% 3.95% 3.82% 850 .00 4.06% 4.0 0% 750 .00 650 .00 2.37% 2.38% 2.37% 2.07% 3.0 0% 550 .00 1.93% 2.0 0% 450 .00 350 .00 479.47 1.0 0% 250 .00 0.0 0% 150 .00 880.82 439.64 863.82 459.42 837.18 856.00 441.22 870.26 430.88 50.0 0 -1.00% Q2FY22 Q3FY22 Q4FY22 Q
Slide 30: Liabilities & Branch Banking
Liabilities & Branch Banking BEYOND BANKING When you bank with us, you contribute towards a better society. 19
Slide 31: Deposits Evolution
Deposits Evolution CA SA CASA TD CASA+TD as on 30 Sept 2022 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 659 9,797 10,456 11,270 21,726 as a % of total borrowings (Rs. 24,065 Cr) 3% 41% 43% 47% 91% as a % of total deposits (Rs. 21,726 Cr) 3
Slide 32: Customer Deposit Profile
Customer Deposit Profile Elite Book (Rs. Cr) r Savings Slab Wise (%) l Deposit Category 8,119 8,988 10,122 3% 1% 5% Upto 1 Lac OTHERS i 6% 23% 1 Lac to 1 Cr 5,351 6,120 1 Cr to 10 Cr TRUSTS 4% 10 Cr to 100 Cr 67% 100 Cr + GOVT./LOCAL Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 BODIES 5% L J Retail & Bulk TD
Slide 33: Funding Profile
Funding Profile Funding Profile Mix In Rs Cr Sept 2021 June 2022 Sept 2022 2% 1% TD 9,894 9,838 11,270 8% CASA Refinance 2,980 2,299 2,023 TD 43% Refinance CASA 8,200 10,548 10,456 Sub Debt 150 150 - IBPC 46% RBI Borrowing IBPC 700 795 500 RBI Borrowing - - 316 Total Borrowings 21,924 23,630 24,565
Slide 34: Treasury Update
Treasury Update The Bank’s total investment portfolio of Rs. 5,748 Crore comprises of SLR and Non-SLR securities Category (Rs. Cr) Book Value SLR 5,730 Non SLR 18 Total 5,748 fil Borrowings & Liquidity • The Bank’s Certificate of Deposit (CD) programme for Rs. 500 Crore has highest rating from at CR
Slide 35: Digital Banking
Digital Banking BEYOND BANKING When you bank with us, you contribute towards a better society. 24
Slide 36: Digital Banking – Key Highlights
Digital Banking – Key Highlights Neo Banking Digital Products overview for Q2 • 1.58 Lacs Cards issued Equitas Selfe Prepaid Cards • 55 Lacs+ Transactions • Rs. 325 Crs Txn value processed Own digital platform A EI3 Rs. 578 Crs Micro ATM • • 195 Lacs+ Transactions Rs. 6,546 Crs Txn value processed T
Slide 37: Financials
Financials BEYOND BANKING When you bank with us, you contribute towards a better society. 26
Slide 38: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Sept-22 Sept-21 YoY % Jun-22 QoQ% Capital & Liabilities Capital 1,254 1,145 9% 1,253 - Reserves & Surplus 3,213 2,321 38% 3,095 4% Networth 4,467 3,466 29% 4,348 3% Deposits 21,726 18,094 20% 20,386 7% Borrowings 2,339 3,130 -25% 2,449 -4% Other Liabilities & Pro
Slide 39: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q2FY23 Q2FY22 YoY% Q1FY23 QoQ% H1FY23 H1FY22 YoY% Interest Income from Loans 904 767 18% 855 6% 1,759 1,509 17% Income on Investments 73 60 22% 62 18% 134 117 15% Interest on balances with Reserve Bank 25 17 47% 24 4% 50 37 35% of India and other inter ba
Slide 40: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q2FY23 Q2FY22 YoY% Q1FY23 QoQ% H1FY23 H1FY22 YoY% Net Income 725 590 23% 681 6% 1,406 1,110 27% Employee Cost 275 228 21% 226 22% 501 449 12% Opex* 208 163 28% 187 11% 395 298 33% Total Operating Expenditure 483 391 24% 413 17% 875 747 17% PBT before prov
Slide 41: Sustainability at Equitas
Sustainability at Equitas UN SDG’s Governance Environment Social & Inclusion GOOD HEALTH 1 POVERTY NO 3 AND WELL-BEING • Bank has a policy on • The Equitas Development • Board of Directors with Mitt Environmental & Social Initiative Trust (EDIT) was diversified industry safeguards framework for set
Slide 42: EDIT Impact, Governance, Inclusion
EDIT Impact Governance 26,16,049 1,18,812 33,605 Eye- Camp Spectacles Cataract Equitas from the very beginning has reflected high governance Participants distributed for Operations free Sponsored standard which is reflected by the board demographics and its independence 38,80,073 6,00,420 2,40,251 M
Slide 43: Awards
Awards TECHNOLOGY EXCELLENCE AWARDS 2022 (BENGALURU EDITION ) ORGANIZED BY CkUANTIC Disruptive Technology Innovation Award ( Banking ) Equitas Small Finance Bank zAm .zAm • 2 nd ditton Circle of Life 2nd edition Equiverse • Metavarse for CSK Fans A RJ Jk IMAIF Equitas INDIAN Equitas MARKETING Equita
Slide 44: Awards
Awards »BWMarketina40under 40 BWMARI'ETING 35 - E C i E ’>« FORTY Vignesh Murali VP - Head of Marketing, Brand & Corporate 'atu/< rtw^i6 Communications, Equrtas Small F,nance Bank on joining Elite dob of BW Marketing World Future EQUITAS SMALL FINANCE BANK LTD Masters 2022 Top Performer in the Banks
Slide 45: Investor Relations
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
Slide 46: Annexure for Non-Convertible Debentures under Regulation 52(4)
EqUltlE]5 I Equitas Small Finance Bank ANNEXURE FOR NON-CONVERTIBLE DEBENTURES ISSUED ON PRIVATE PLACEMENT BASIS UNDER REGULATION 52(4) OF THE SEBI ( LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS ) REGULATIONS, 2015. a) Debt Equity Ratio: The Debt Equity Ratio of the Bank as on 30 September 2022 i
Equitas Small Finance Bank — Q2 FY2023 Earnings Presentation on 6ix