Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q1 FY2022 Earnings Presentation
43 slides from Equitas Small Finance Bank's earnings presentation, Jul 30, 2021
Slide 1: Q1FY22 Investor Presentation
Q1FY22 Investor Presentation
Slide 2: 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 3: Table of Contents
Table of Contents 01 KEY HIGHLIGHTS PAGE 09 02 FINANCIAL PERFORMANCE PAGE 14 03 ADVANCES PAGE 18 04 LIABILITIES & BRANCH BANKING PAGE 25 05 DIGITAL BANKING PAGE 34 06 FINANCIALS PAGE 37
Slide 4: Scheme of Amalgamation
Scheme of Amalgamation • The Board in their meeting held on July 26th 2021 approved the scheme of amalgamation between Equitas Holdings Limited (EHL - Transferor Company) and Equitas Small Finance Bank Limited (ESFB - Transferee Company) • The scheme is subject to following approvals: • Receipt of a
Slide 5: Quantifying Covid wave 2.0 impact
Quantifying Covid wave 2.0 impact Highlights: Advances Advances NPA Accounts Products Segments • We estimate to restructure in corridor of Rs. ~1,400 to Rs. (Rs. Cr) Restructured Restructured in Restructured ~1,700 Crs during FY22 during Q1FY22 July 2021 • FY22 provisions would include provisions fo
Slide 6: Journey of building a Stable, Sustainable and Scalable Bank
Journey of building a Stable, Sustainable and Scalable Bank 6
Slide 7: Diversifying across the informal segment
Diversifying across the informal segment 20,0 00 25. 00% 22.90% 18,0 00 17,925 17,837 23. 00% 21.80% 21.50% 16,0 00 15,367 21. 00% 19.70% 19.22% 14,0 00 18.66% 19. 00% 17.69% 18.90% 12,0 00 11,704 17. 00% 10,0 00 15. 00% 8,238 8,00 0 13. 00% 7,176 10.70% 6,125 10.10% 6,00 0 11. 00% 9.40% 9.11% 9.02%
Slide 8: Liability franchise evolution
Liability franchise evolution 100 % 600 1,124 2,401 2,729 3,323 4,311 4,135 4,682 5,097 4,726 5,176 5,222 4,769 5,056 4,672 6,395 4,909 3,996 538 90% 9.63% 9.12% 8.76% 8.27% 8.23% 500 8.05% 8.14% 8.18% 80% 7.82% 7.96% 7.96% 7.77% 7.56% 7.36% 7.27% 7.20% 70% 6.97% 400 60% 6,231 50% 5,869 300 4,983 5,
Slide 9: Key Highlights
Key Highlights 9
Slide 10: Quarterly Snapshot
Quarterly Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: 15% YoY Total Deposits: 48% YoY PPoP: 17 States and UTs Rs. 17,837 Cr [Rs. 15,573 Cr] Rs. 17,095 Cr [Rs. 11,787 Cr] Q1FY22 Rs. 164 Cr [Rs. 142 Cr] SBL- 45%, VF - 25%, MFI- 18%, MSE –7%, NBFC – 5% PAT: Q1FY22
Slide 11: Highlights
Highlights Advances: • Advances as of Q1FY22 was at Rs. 17,837 Cr, Advances growth of 15% YoY • Disbursed Rs. 1,265 Cr in Q1FY22 • 81.95% of advances is secured loans • Collection and Billing efficiency for the month of June 2021 at 83.49% & 69.52% respectively Liabilities: • Acquired ~5 lac custome
Slide 12: Highlights
Highlights Profit & Loss: • Net Interest Income for Q1FY22 at Rs. 461 Cr as against Rs. 404 Cr in Q1FY21. NIM at 7.87% • Core Income (Net Income other than PSL Fees, Treasury & Others) at 87% • Pre Provisioning Operating Profit (PPoP) for Q1FY22 at Rs. 164 Cr as against Rs. 142 Cr in Q1FY21, growth
Slide 13: Highlights
Highlights Key Ratios: • Cost to Income^ at 66.98% as compared to 59.11% in Q4FY21 and 67.27% in Q1FY21 • RoA and RoE for Q1FY22 at 0.19% and 1.40% respectively Capital: • As of March 31, 2021 Total CRAR at 24.07%, Tier-I CRAR of 22.6% and Tier II CRAR at 1.47% Treasury: • The Bank’s Certificate of
Slide 14: Financial Performance – Quarterly trends
Financial Performance – Quarterly trends 14
Slide 15: Key Ratios
Key Ratios Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 7.56% 9.02% 7.36% 8.63% 8.47% 6.44% 7.27% 5.81% 5.58% 5.89% 6.02% 1.88% 1.83% 1.80% 7.20% 7.87% 1.15% 6.97% 7.57% 0.19% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY2
Slide 16: Income Evolution
Income Evolution Net income evolution (in Rs. Cr) 461 484 449 461 404 146 178 64 104 30 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 NII Other Income Non-interest income * evolution Other Income Break-up (Rs. Cr) 3.5 0% 28.45% 30. 00% Banking Fees & 3.0 0% 23.22% 25. 00% Other Charges 2.5 0% 2.89% 15% 18.35%
Slide 17: Opex Evolution
Opex Evolution Rs Cr Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Employee expenses 194 188 205 204 222 Other expenses 74 88 111 114 116 Depreciation 19 19 19 19 20 Total Operating expenses 287 295 335 337 358 No. of employees 15,843 15,879 16,036 16,556 16,770 Opex evolution 67.27% 7.0 0% 70. 00% 66.98% 68.
Slide 18: Advances
> equibas Advances
Slide 19: Advances Evolution & Diversified Book
Advances Evolution & Diversified Book Rs Cr Q1FY21 Q1FY22 YoY Growth % 914 , 195 , 5% 1% 1,208 , 3,128 , Micro Finance 3,618 3,128 -14% 7% 17% Small Business & Home Loans 6,484 8,015 24% 4,377 , Vehicle Finance 3,776 4,377 16% 25% MSE Finance 712 1,208 70% 8,015 , NBFC 772 914 18% 45% Others † 211 1
Slide 20: Advances Evolution & Diversified Book
Advances Evolution & Diversified Book Rs Cr Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Micro Finance 3,618 3,641 3,491 3,236 3,128 Small Business and Home Loans 6,484 7,052 7,496 7,971 8,015 Small Business Loans 5,152 5,580 5,890 6,227 6,227 Housing Finance 629 715 834 959 1,017 Agri Loans 703 757 772 785 7
Slide 21: Product Segment Details
Product Segment Details Number of ATS @ ATS @ PCR Product Segment GNPA (%) Live Loans Disbursement (Lacs) Portfolio (Lacs) (%) Micro Finance 17,26,634 0.38 0.18 6.60% 56.87% Small Business Loans (Incl. HF) 2,33,342 5.69 3.43 3.49% 38.33% Vehicle Finance 1,35,401 4.25 3.23 4.26% 54.53% MSE Finance 1,
Slide 22: Disbursements Product Wise
Disbursements Product Wise Rs Cr Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Micro Finance 132 390 596 655 393 Disbursement (Rs. Cr) Small Business Loans (Incl. HF) 266 708 873 960 315 2,535 2,461 Small Business Loans 204 523 654 703 207 Housing Finance 30 115 151 189 83 1,902 Agri Loans 32 70 68 68 25 Vehic
Slide 23: Asset Quality Trend
Asset Quality Trend 950 .00 5.0 0% 4.16% 4.58% 3.59% 850 .00 4.0 0% 750 .00 2.68% 650 .00 2.39% 2.29% 3.0 0% 550 .00 1.71% 1.52% 1.39% 2.0 0% 450 .00 1.09% 398.22 350 .00 1.0 0% 250 .00 0.0 0% 416.67 213.37 399.65 179.92 722.62 289.90 642.78 266.17 816.17 150 .00 50.0 0 -1.00% Q1FY21 Q2FY21 Q3FY21 Q
Slide 24: Collection Efficiency
Collection Efficiency Collection Efficiency Billing Efficiency Product Segments March 2021 April 2021 May 2021 June 2021 March 2021 April 2021 May 2021 June 2021 Micro Finance 93.44% 88.85% 63.60% 66.90% 91.90% 88.05% 63.12% 63.02% Small Business 106.56% 97.17% 76.76% 85.14% 91.48% 86.08% 70.91% 73.
Slide 25: Liabilities & Branch Banking
Liabilities & Branch Banking 25
Slide 26: Customer Deposits Evolution
Customer Deposits Evolution Update for Q1Y22 CA SA CASA TD CASA+TD as on 30 June 2021 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 401 6,392 6,794 10,227 17,021 as a % of total borrowings (Rs. 21,473 Cr) 2% 30% 32% 48% 79% as a % of total d
Slide 27: Customer Deposit Profile
Customer Deposit Profile Mass Affluent Customer* (Deposit in Rs. Cr) Savings Account Value Slabs Deposits by Category 5% 21% 2,279 21% OTHERS 5% 2,107 1,906 17% 1,703 1,526 4,155 3,262 TRUSTS 4% 1,786 2,378 1,188 35% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 < 1L 1L to < 10L 10L to < 1Cr 1Cr to < 10Cr 10Cr
Slide 28: Overview of TPP Business
Overview of TPP Business MF AUM (Rs. Cr) Premium Collected (Rs. Cr) LI 143.37 138.41 GI 9.76 132.27 127.16 121.51 8.92 26.06 10.29 7.40 6.88 6.84 9.82 8.88 8.73 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Life Insurance General Insurance # Of Policies Issued Policies Sold i
Slide 29: Debit Card & Spends Snapshot
Debit Card & Spends Snapshot Cards Issued Debit Card Transaction Trend 734.10 Total 17.3 Lakh Cards Issued 1.90 1.80 2.00 1.70 1.80 1.80 1.80 45 2.20 40 1.70 2.00 35 1.50 1.80 1.20 1.30 1.30 1.30 1.60 30 1.40 413.60 25 42 0.70 0.80 1.20 20 35 37 40 38 35 32 32 1.00 15 10 22 23 25 28 28 0.80 15 0.60
Slide 30: Funding Profile
Funding Profile As on 30 June 2021 In Rs Cr March 2021 June 2021 1% 0.5% 3% 0.3% TD 10,705 10,227 0.1% TD Refinance 3,934 3,413 16% CASA CASA 5,614 6,794 Refinance CD 73 74 48% IBPC Sub Debt 220 150 Sub-ordinated Debt Certificate of Deposit IBPC 700 700 32% RBI Borrowing RBI Borrowing 11 15 Tri Part
Slide 31: Treasury
Treasury Investments The Bank’s total investment portfolio of Rs. 5,787 Crore comprises of SLR and Non-SLR securities as given below: Category (Rs. Cr) Book Value SLR 5,738 Non SLR 49 Total 5,787 During the quarter, the Bank participated in equity primary market. Profits realised in those equity IPO
Slide 32: Pan India Presence
Pan India Presence State Wise Advances State Wise Deposits Banking Outlets Uttar… 0.10% Pondichery 0.35% Chandigarh 0.30% Telangana 2% Pondicherry 0.30% Andhra… 2% Chattisgarh 1% Uttar… 2% Punjab 1% Chattisgarh 3% Andhra… 2% Madhya… 4% Delhi 2% Gujarat 4% Telangana 2% Chandigarh 5% Haryana 2% Rajast
Slide 33: Digital Banking
Digital Banking 33
Slide 34: Digital 2.0
Digital 2.0 Digital Banking setup as a separate Business Unit Digital Banking Focus Areas Partnering with Dedicated Digital Collaboration via Strengthing of Banking Sales & Neo Banks Fintech Programs Digital Channel Relationship Team Digital Financial Building up of Digital Digital Payments, Inclusi
Slide 35: Digital Banking
Digital Banking Equitas Selfe No of Accounts Acquired in Q1FY22 2.18 Lacs Digital Channels and Transformation • Enabled BBPS based collections for Retail Loans • Integrated UPI payments for Greater Chennai Corporation • Enabled Micro Finance Loan Collections through UPI 35
Slide 36: Digital Banking – Partnerships
Digital Banking – Partnerships NeoBanking • NiyoX Program: o 2.8 lac Accounts Opened o CASA Balance of ~Rs. 112 Crs • Groww Digital Payments and Acquisitions o 1,700+ FDs with balance of ~Rs. 8 • NETC - FASTag Crs o Launched India’s 1st FASTag enabled • Programs under integration: truck terminal at
Slide 37: Financials
> equibas Financials
Slide 38: Balance Sheet
Balance Sheet Particulars (in Rs Cr) June-22 June-21 YoY% Mar-21 QoQ% Capital & Liabilities Capital 1,142 1,053 8% 1,139 - Reserves & Surplus 2,274 1,748 30% 2,257 1% Networth 3,416 2,802 22% 3,396 1% Deposits 17,095 11,787 45% 16,392 4% Borrowings 3,678 5,526 -33% 4,165 -12% Other Liabilities & Pro
Slide 39: Profit & Loss Statement
Profit & Loss Statement Particulars (in Rs Cr) Q1FY22 Q1FY21 YoY% Q4FY21 QoQ% Interest Income from Loans 742 662 12% 736 1% Income on Investments 57 44 30% 59 -3% Interest on balances with Reserve Bank of India and other inter bank funds 20 16 25% 23 -13% Total Interest Income 819 721 14% 818 - Fina
Slide 40: Profit & Loss Statement
Profit & Loss Statement Particulars (in Rs Cr) Q1FY22 Q1FY21 YoY% Q4FY21 QoQ% Net Income 565 434 30% 627 -10% Employee Cost 222 194 14% 204 9% Opex 180 98 85% 173 3% Total Operating Expenditure 400 292 37% 377 6% PBT before provision & Write-off 164 142 15% 250 -34% Credit Cost 150 68 121% 97 55% PB
Slide 41: Financial Performance – Yearly trends
Financial Performance – Yearly trends 41
Slide 42: Key Ratios
Key Ratios Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 10.00% 9.52% 7.84% 8.33% 7.83% 1.60% 1.70% 6.97% 6.75% 1.45% 1.39% 8.36% 8.13% 7.97% 9.11% 7.34% 9.02% 8.55% 8.44% 0.30% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Credit Co
Slide 43: Thank You
Thank You 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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