Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q4 FY2023 Earnings Presentation
35 slides from Equitas Small Finance Bank's earnings presentation, May 5, 2023
Slide 1: Submission letter to stock exchanges
May 05, 2023 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 Sirs Sub: Submission of Investors /Analysts presentation Pursuant to Regulation
Slide 2: Investor Presentation Q4FY23
Investor Presentation Q4FY23 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 Liabilities & 4. Branch Banking 5. Digital Banking 6. Financials 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 Q4FY23: 18 States and UTs Rs. 27,861 Cr [Rs.20,597 Cr] Rs. 25,381 Cr [Rs. 18,951 Cr] Rs. 190 Cr [Rs. 120 Cr] SBL- 36%, VF - 25%, CASA – 42%, TD – 58 % MFI- 19%, HF-10% MSE – 4%, NBFC – 4% Disbur
Slide 7: Key Highlights
Key Highlights Key message • Core operating performance remained strong despite the rise in interest rate • Highest ever broad-based disbursements of Rs. 5,917 Crs with new products continuing to scale-up. Growth of 80% YoY and 23% QoQ • Gross advances at Rs. 27,861 Crs with a growth of 35% YoY and
Slide 8: Key Highlights
Key Highlights Liability Update • Acquisition scale up and Customized Digital Solutions helped the Bank to grow the CA book, CA witnessed a growth of 26% YoY and 22% QoQ • Savings & Term Deposits from “Elite” the mass affluent customer segment crossed 11,550 Crs. Bank witnessing positive traction in
Slide 9: Highlights
Highlights Asset Quality & Provisioning • Annualized gross slippages at 3.06% for Q4FY23 as compared to 5.03% in Q3FY23 and 8.30% in Q4FY22 • GNPA improved by 147bps YoY to 2.60% in Q4FY23 as compared to 3.46% in Q3FY23 and 4.06% in Q4FY22 • NNPA improved by 123bps YoY to 1.14% in Q4FY23 as compared
Slide 10: Update on scheme of amalgamation
Update on scheme of amalgamation • Appointed date 1st January 2023 and Effective date 2nd February 2023 • The shareholders of EHL, on February 8, 2023, were allotted 231 equity Shares of Rs.10/- each credited as fully paid up of Bank, in respect of every 100 Equity Shares of Rs.10/- each held by the
Slide 11: Provision Details
Provision Details Additional Provisions: • Management decided to make additional provisions of Rs. 90 Crs to strengthen Provision Coverage Ratio (PCR) and total provisions for the quarter is Rs. 85 Crs Particulars Rs. Crs NPA Provision and Write-off for the quarter 11.90 Standard Asset Provision -5.
Slide 12: SMA-1, SMA-2, NPA & Restructured Book movement
SMA-1, SMA-2, NPA & Restructured Book movement SMA-1 and SMA-2 NPA Movement Restructured book Movement 4.06% movement (Rs. Crs) 3.59% 2,00 0 1,881 12% 1,80 0 10% 10% 2.86% 1,60 0 1,499 2.72% 1.98% 1,40 0 2.37% 8% 2.60% 1,20 0 7% 1.73% 1.67% 1,00 0 6% 1.52% 800 1.13% 4% 1.14% 600 0.73% 3.64% 400 235
Slide 13: Financial Performance – Quarterly Trends
Financial Performance – Quarterly Trends 12
Slide 14: Key Ratios
Key Ratios Daily Avg Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 6.61% 9.12% 6.63% 6.42% 6.42% 6.41% 9.10% 2.20% 2.28% 9.05% 5.73% 5.97% 1.83% 6.25% 6.20% 6.20% 9.00% 9.01% 1.40% 1.60% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4
Slide 15: Income Evolution
Income Evolution Net Income Evolution^ (Rs. Cr) Core PPoP*/ Assets (%) 707 4.35% 610 647 3.87% 552 581 3.62% 3.79%* 3.33% 215 104 100 115 127 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 NII Other Income (Net) Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Other Income [Net] Contribution^ (%) Liability Fee Income (Rs .Cr
Slide 16: Opex evolution
Opex evolution Rs. Cr Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Employee expenses 209* 225# 275 292 304 Other expenses (net of digital expenses) 148 169 187 182 207 Depreciation 17 18 21 21 25 Total Operating expenses 374 412 483 495 536 No. of employees 17,607 17,936 18,962 20,005 20,563 Cost to Income (%
Slide 17: Advances
Advances BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 18: Advances evolution
Advances evolution Rs Cr Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 YoY % Contribution % Micro Finance 3,907 4,007 4,144 4,600 5,225 34% 19% Small Business Loans (SBL) 7,881 8,234 8,725 9,312 10,083 28% 36% Housing Finance 1,641 1,821 2,121 2,463 2,873 75% 10% Vehicle Finance 5,047 5,279 5,641 6,203 6,971 3
Slide 19: Disbursements evolution
Disbursements evolution Rs Cr Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 YoY % Micro Finance 972 939 971 1,340 1,676 72% Small Business Loans (SBL) 940 978 1,096 1,260 1,464 56% Housing Finance 267 266 388 427 557 109% Vehicle Finance 940 889 1,098 1,334 1,591 69% Used CV 514 474 589 699 635 24% New CV 323
Slide 20: Segmental Details
Segmental Details Number of Live ATS @ ATS @ Product Segment GNPA (%) PCR (%) Loans Disbursement (Lacs) Portfolio (Lacs) Micro Finance 19,87,970 0.46 0.26 2.31% 74.80% Small Business Loans (SBL) 2,46,466 6.72 4.09 3.38% 50.49% Housing Finance 31,337 13.05 9.17 0.90% 32.14% Vehicle Finance 2,01,095 5
Slide 21: Asset Quality Trend
Asset Quality Trend 950 3.95% 5.0 0% 850 4.06% 3.82% 4.0 0% 750 3.46% 2.60% 650 2.37% 2.07% 3.0 0% 550 1.93% 1.73% 2.0 0% 1.14% 450 350 479 1.0 0% 250 0.0 0% 150 837 856 441 870 431 861 423 724 312 50 -1.00% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 GNPA (Rs. Cr) NNPA (Rs. Cr) GNPA % NNPA % GNPA Movement (
Slide 22: Liabilities & Branch Banking
Liabilities & Branch Banking 21
Slide 23: Deposits Evolution
Deposits Evolution CA SA CASA TD CASA+TD as on 31 Mar 2023 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 974 9,758 10,732 14,649 25,381 as a % of total borrowings (Rs. 30,004 Cr) 3% 33% 36% 49% 85% as a % of total deposits (Rs. 25,381 Cr) 4%
Slide 24: Customer Deposit Profile
Customer Deposit Profile Elite Book (Rs. Cr) Savings Slab Wise (%) Deposit Category 4% 7% 6% OTHERS 9% 11,071 11,550 Upto 1 Lac 10,122 8,119 8,988 1 Lac to 1 Cr 20% 1 Cr to 10 Cr TRUSTS 3% 10 Cr to 100 Cr 63% 100 Cr + GOVT./LOCAL Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 BODIES 6% Retail & Bulk TD Mix Term
Slide 25: Acquiring & Issuance Business
Acquiring & Issuance Business Acquiring Business Issuance Business • Debit card spends increased 37% YoY to Rs. 953 Crs in FY23 • Ranked first among the Small Finance Banks and among top from Rs. 694 in FY22 25 Banks in POS sourcing • Interchange gross income increased by 65% YoY to Rs 4.34 Crs • Ba
Slide 26: Funding Profile
Funding Profile Funding Profile Mix In Rs Cr Mar 2022 Dec 2022 Mar 2023 5% TD 9,095 12,576 14,649 10% CASA Refinance 2,466 2,410 2,974 36% TD CASA 9,855 10,817 10,732 Refinance Sub Debt 150 - - IBPC IBPC 865 1200 1650 49% RBI Borrowing - 330 - Total Borrowings 22,431 27,333 30,005 Daily Average Cost
Slide 27: Treasury Update
Treasury Update The Bank’s total investment portfolio of Rs. 6,665 Crore comprises of SLR and Non-SLR securities Category (Rs. Cr) Book Value SLR 6,536 Non SLR 129 Total 6,665 Borrowings & Liquidity • The Bank’s Certificate of Deposit (CD) programme has highest rating at A1+ from CRISIL and India Ra
Slide 28: Digital Banking
Digital Banking BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 29: Digital Banking – Key Highlights
Digital Banking – Key Highlights Neo Banking Digital Products overview for Q4 Total Deposits Equitas Selfe • 2.15 Lacs Cards issued Own digital platform Prepaid Cards • 61 Lacs+ Transactions • 618 Crs+ Txn value processed Rs. 601 Crs • 319 Lacs+ Transactions Total Deposits Micro ATM • 10,767 Crs + T
Slide 30: Financials
Financials BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 31: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Mar-23 Mar-22 YoY % Dec-22 QoQ% Capital & Liabilities Capital 1,111 1,252 -11% 1,254 -11% Reserves & Surplus 4,047 2,994 35% 3,386 20% Networth 5,158 4,246 21% 4,640 11% Deposits 25,381 18,951 34% 23,394 8% Borrowings 2,974 2,616 14% 2,740 9% Other Liabilities &
Slide 32: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q4FY23 Q4FY22 YoY% Q3FY23 QoQ% FY23 FY22 YoY% Interest Income from Loans 1,047 811 29% 959 9% 3,765 3,139 20% Income on Investments 101 66 53% 81 25% 316 246 28% Interest on balances with Reserve Bank 8 19 -55% 23 -64% 81 75 8% of India and other inter ba
Slide 33: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q4FY23 Q4FY22 YoY% Q3FY23 QoQ% FY23 FY22 YoY% Net Income 922 658 32% 774 19% 3,102 2,404 29% Employee Cost 304 209 46% 292 4% 1,097 898 22% Opex* 232 165 41% 203 14% 829 634 31% Total Operating Expenditure 536 374 43% 495 8% 1,926 1,532 26% PBT before pro
Slide 34: Key Ratios - Annual
Key Ratios - Annual Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 8.13% 8.06% 9.11% 6.96% 6.75% 1.89% 7.34% 9.00% 1.70% 6.58% 6.38% 5.52% 6.00% 6.34% 1.45% 1.39% 1.10% 8.55% 8.54% 8.44% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 C
Slide 35: 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
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