Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q4 FY21 Earnings Presentation
38 slides from Equitas Small Finance Bank's earnings presentation, Apr 29, 2021
Slide 1: Exchange intimation letter for investor presentation
April 29, 2021 The Secretary The Secretary National Stock Exchange of India Limited BSE Limited Exchange Plaza Phiroze Jeejeebhoy Towers BandraKurla Complex (BKC) Dalal Street Bandra (East) Mumbai – 400001 Mumbai – 400051 Symbol: EQUITASBNK Scrip Code No-543243 F Group – Debt Instruments listed in B
Slide 2: Q4FY21 Investor Presentation
Q4FY21 Investor Presentation
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 01 KEY HIGHLIGHTS PAGE 05 02 FINANCIAL PERFORMANCE PAGE 10 03 ADVANCES PAGE 14 04 LIABILITIES & BRANCH BANKING PAGE 22 05 DIGITAL BANKING PAGE 30 06 FINANCIALS PAGE 33
Slide 5: Liability Franchise Evolution
Liability Franchise Evolution 100% 160 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 9.63% 8.76% 90% 9.12% 8.27% 141 140 8.14% 8.18% 8.23% 136 8.05% 7.96% 7.96% 7.82% 7.77% 80% 7.63% 7.39% 7.43% 118 7.10% 120 70% 105 100 101 101 109 100 60% 99 98 94
Slide 6: Key Highlights
Key Highlights 5
Slide 7: Quarterly Snapshot
Quarterly Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: Total Deposits: PAT: 17 States and UTs Rs. 17,925 Cr [Rs. 15,367 Cr] Rs. 16,392 Cr Q4FY21 Rs. 113 Cr [Rs. 43 Cr] SBL- 44%, VF - 25%, MFI- 18%, [Rs. 10,788 Cr] FY21 Rs 384 Cr [Rs. 244 Cr] MSE – 7%, NBFC – 4% T
Slide 8: Highlights
Highlights Advances: • Advances as of Q4FY21 was at Rs. 17,925 Cr, Advances growth of 17% YoY • Disbursed Rs. 2,535 Cr in Q4FY21 • 81.37% of advances is secured loans • New Product - Used Car Advances cross Rs. 120 Cr • Collection & Billing efficiency for the month of March 2021 at 108.51% and 91.12
Slide 9: Highlights
Highlights Profit & Loss: • Net Interest Income for Q4FY21 at Rs. 449 Cr as against Rs. 424 Cr in Q4FY20. NIM at 7.57% • Core Income (Net Income other than PSL Fees, Treasury & Others) at 84% • PBT before provisions and write off for Q4FY21 at Rs. 250 Cr as against Rs. 188 Cr in Q4FY20, growth of 33
Slide 10: Highlights
Highlights Treasury & Liquidity: • The Bank’s Certificate of Deposit (CD) programme for Rs. 1,000 Cr has highest rating from at CRISIL A1+ • The Bank has adequate room available to avail refinance or raise funds through IBPC (with mix of PSL / Non-PSL) whenever required which provides strong cushion
Slide 11: Financial Performance
> equibas Financial Performance
Slide 12: Key Ratios
Key Ratios Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 7.77% 1.88% 1.83% 1.80% 9.54% 8.63% 9.02% 8.47% 6.54% 7.56% 7.57% 5.81% 5.58% 5.89% 6.02% 1.15% 7.36% 0.91% 7.27% 7.20% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY2
Slide 13: Income Evolution
Income Evolution Movement in NIM Net income evolution (in Rs. Cr) Q3 & Q3FY21 Q4FY21 7.57% 461 484 449 424 404 146 178 74 30 64 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 NII Other Income Non-interest income * evolution Other Income Break-up (Rs. Cr) 3.5 0% 28.45% 30. 00% 1% Banking Fees & 3.0 0% 23.22% 25.
Slide 14: Opex Evolution
Opex Evolution Rs Cr Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Employee expenses 187 194 188 205 204 Other expenses 100 78 99 131 153 Switching fee and other expenses 0.02 0.01 5 12 30 (Prepaid Card) Depreciation 22 19 19 19 19 Total Operating expenses 309 292 305 355 377 No. of employees 16,104 15,843 15,
Slide 15: Advances
> equibas Advances
Slide 16: Advances Evolution & Diversified Book
Advances Evolution & Diversified Book Rs Cr Q4FY21 Q4FY20 YoY Growth % 783 , 225 , 4% 1% 1,180 , 3,236 , Micro Finance 3,236 3,616 -11% 7% 18% Small Business Loans 7,971 6,279 27% (Incl. HF) 4,530 , Vehicle Finance 4,530 3,760 20% 25% MSE Finance 1,180 669 76% 7,971 , NBFC 783 818 -4% 45% Others † 2
Slide 17: Advances Evolution & Diversified Book
Advances Evolution & Diversified Book Rs Cr Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Micro Finance 3,616 3,618 3,641 3,491 3,236 Small Business Loans (Incl. HF) 6,279 6,484 7,052 7,496 7,971 Small Business Loans 4,995 5,152 5,580 5,890 6,229 Housing Finance 604 629 715 834 959 Agri Loans 680 703 757 772 7
Slide 18: Micro Finance Industry Comparison
Micro Finance Industry Comparison Average loan O/S per Unique Borrower For Select States Average Ticket Size at Disbursement Tamil Madhya Karnataka Maharashtra (Rs.) Q2FY21 Q3FY21 Q4FY21 Nadu Pradesh Not Industry 36,906 37,177 36,787 35,330 Industry 35,652 33,245 Reported Equitas Small 19,260 15,314
Slide 19: Product Segment Details
Product Segment Details Number of ATS @ ATS @ PCR Product Segment GNPA (%) Live Loans Disbursement (Lacs) Portfolio (Lacs) (%) Micro Finance 18,36,400 0.30 0.18 3.41% 84.55% Small Business Loans (Incl. HF) 2,33,928 5.74 3.41 3.34% 36.65% Vehicle Finance 1,36,121 4.10 3.33 3.75% 60.79% MSE Finance 1,
Slide 20: Disbursements Product Wise
Disbursements Product Wise Rs Cr Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Micro Finance 814 132 390 596 655 Disbursement (Rs. Cr) Small Business Loans (Incl. HF) 682 266 708 873 960 2,535 2,405 2,461 Small Business Loans 532 204 523 654 703 Housing Finance 92 30 115 151 189 1,902 Agri Loans 58 32 70 68 68
Slide 21: Asset Quality Trend
Asset Quality Trend 850 .00 5.0 0% 4.16% 750 .00 4.0 0% 3.59% 2.72% 650 .00 2.68% 550 .00 2.39% 3.0 0% 1.50% 1.71% 1.52% 450 .00 1.39% 2.0 0% 350 .00 1.09% 1.0 0% 250 .00 150 .00 266.17 0.0 0% 417.32 228.61 416.67 213.37 399.65 179.92 722.62 289.90 642.78 50.0 0 -1.00% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4
Slide 22: Collection Efficiency
Collection Efficiency Collection Efficiency Billing Efficiency Collection Efficiency Billing Efficiency Product Segments December 2020 December 2020 March 2021 March 2021 Micro Finance 97.98% 91.29% 93.44% 91.90% Small Business Loans 104.56% 90.56% 106.56% 91.48% Vehicle Finance 108.39% 82.25% 113.8
Slide 23: Liabilities & Branch Banking
Liabilities & Branch Banking 22
Slide 24: Customer Deposits Evolution
Customer Deposits Evolution Update for Q4Y21 CA SA CASA TD CASA+TD as on 31 March 2021 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 520 5,094 5,614 10,705 16,319 as a % of total borrowings (Rs. 21,257 Cr) 2% 24% 26% 50% 77% as a % of total
Slide 25: Customer Deposit Profile
Customer Deposit Profile Deposits by Category Mass Affluent Customer* (Deposit in Rs. Cr) Savings Account Value Slabs 6% 27% 2,107 22% OTHERS 4% 1,906 1,703 1,526 16% 1,392 3,262 2,378 TRUSTS 5% 1,188 1,786 930 28% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 < 1L 1L to < 10L 10L to < 1Cr 1Cr to < 10Cr 10Cr +
Slide 26: Overview of TPP Business
Overview of TPP Business MF AUM (Rs. Cr) Premium Collected (Rs. Cr) LI 138.41 GI 9.76 132.27 127.16 121.51 8.92 26.06 7.40 6.88 6.84 9.82 8.88 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Life Insurance General Insurance # Of Policies Issued Policies Sold in Q4FY21 Policies Sold in Q4FY21
Slide 27: Debit Card & Spends Snapshot
Debit Card & Spends Snapshot Cards Issued Debit Card Transaction Trend 4,07,675 1.90 1.80 2.00 1.70 1.80 1.80 45 2.20 2.00 40 35 1.50 1.50 1.50 1.50 1.80 1.20 1.30 1.30 1.60 30 1.40 2,44,021 25 42 0.70 0.80 1.20 20 35 37 40 38 32 1.00 1,58,528 15 26 27 25 22 23 25 28 0.80 1,15,073 10 15 0.60 95,278
Slide 28: Funding Profile
Funding Profile As on 31 March 2021 In Rs Cr December 2020 March 2021 1% 3% 0.3% TD 11,724 10,705 0.1% TD Refinance 5,047 3,934 19% CASA CASA 3,967 5,614 Refinance CD 171 73 50% IBPC Sub-ordinated Debt Sub Debt 220 220 26% Certificate of Deposit IBPC 300 700 RBI Borrowing RBI Borrowing - 11 Total Bo
Slide 29: Treasury
Treasury Investments The Bank’s total investment portfolio of Rs. 3,705 Crore comprises of SLR and Non-SLR securities as given below: Category (Rs. Cr) Book Value SLR 3,631 Non SLR 74 Total 3,705 During the quarter, the Bank participated in equity primary market. Profits realised in those equity IPO
Slide 30: Pan India Presence
Pan India Presence State Wise Advances State Wise Deposits Banking Outlets Uttar… 0.13% Pondichery 0.34% Chandigarh 0.32% Telangana 2% Pondicherry 0.34% Andhra… 2% Chattisgarh 1% Uttar… 2% Punjab 1% Chattisgarh 4% Andhra… 2% Madhya… 4% Delhi 2% Gujarat 4% Telangana 2% Chandigarh 5% Haryana 2% Rajast
Slide 31: Digital Banking
Digital Banking 30
Slide 32: 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 33: Key Highlights for Q4FY21
Key Highlights for Q4FY21 Prepaid Digital Payments & Digital Transaction Digital Neobanking Digital Channels Engagements Acquisitions Banking Transformation • Gift Cards • Fastag Acquiring • Corporate • Mobile Banking • Launched Video KYC • 100 Mn+ transaction • 78,000+ tags issued Payment Services
Slide 34: Financials
> equibas Financials
Slide 35: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Mar-21 Mar-20 YoY% Dec-20 QoQ% Capital & Liabilities Capital 1,139 1,053 8% 1,138 - Reserves & Surplus 2,257 1,691 33% 2,143 5% Networth 3,396 2,744 24% 3,281 4% Deposits 16,392 10,788 52% 15,862 3% Borrowings 4,165 5,135 -19% 5,266 -21% Other Liabilities & Provi
Slide 36: Profit & Loss Statement
Profit & Loss Statement Particulars (in Rs Cr) Q4FY21 Q4FY20 YoY% Q3FY21 QoQ% Interest Income from Loans 736 668 10% 773 -5% Income on Investments 59 37 59% 60 -2% Interest on balances with Reserve Bank of India and other inter bank funds 23 20 15% 24 -4% Total Interest Income 818 726 13% 857 -5% Fi
Slide 37: Profit & Loss Statement
Profit & Loss Statement Particulars (in Rs Cr) Q4FY21 Q4FY20 YoY% Q3FY21 QoQ% Net Income 627 498 26% 630 - Employee Cost 204 187 9% 205 - Opex 173 122 42% 150 15% Total Operating Expenditure 377 309 22% 355 6% PBT before provision & Write-off 250 188 33% 275 -9% Credit Cost 97 130 -25% 126 -23% PBT
Slide 38: 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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