Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q3 FY2023 Earnings Presentation
48 slides from Equitas Small Finance Bank's earnings presentation, Feb 8, 2023
Slide 1: Outcome of Board Meeting cover letter
February 08, 2023 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 : EQUITASBNK Scrip Code No: 543243 Dear Sir / Madam, Sub: Disclosure under Regulations 30 & 33
Slide 2: Statement of Audited Financial Results
EQUITAS SMALL FINANCE BANK LIMITED CIN: L65191TN1993 PLC025280 Regd . Office: 4 th Floor , Phase II , Spencer Plaza, No. 769, Mount Road, Anna Salal , Chennai 600 002 Website: www . equltasbanh.com 1. Statement of Audited Financial Results for the quarter and nine months period ended December 31, 20
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 ii (? in Lakh) Quarter ended Nine months ended Year ended SI No Particulars - 31 Dec-22 30-8ep-22 - 31-Dec 21 - - 31 Dec 22 - - 31 Dec 21 - - 31 Mar 22 Audited Unaudi
Slide 4: Statement of Cash Flow
4 Statement of Cash Flow for the period ended December 31,2022 is given below: (T In Lakh ) Period ended Year Ended Particulars 31-Dec- 22 31-Dec- 21 31-Mar- 22 Audited Unaudited Audited Cash Flow from Operating activities Profit Before Tax 50,801.75 21 ,737.78 37,811.00 Adjustments for Depreciation
Slide 5: Notes to financial results
Notes 5 The above audited 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 nine months ended December 31, 2022 were reviewed by the Audit Committee and approved by the Board of Dire
Slide 6: Notes to financial results (continued)
17 As per RBI Circular DOR.AUT.REC.12/ 22.01.001/ 2022-23 dated April 07, 2022, for the purpose of disclosure under Accounting Standard 17, Segment - reporting, 'Digital Banking’ has been identified as a sub segment under Retail Banking by Reserve Bank of India (RBI) . However, as the proposed Digit
Slide 7: Independent Auditors Report
T R Chadha & Co LLP Varma & Varma Chartered Accountants Chartered Accountants Door No. 5 D, 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 Report on the q
Slide 8: Auditors Report: Basis for Opinion
T R Chadha & Co LLP Varma & Varma Chartered Accountants Chartered Accountants Door No. 5 D, 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 Basis for Opinion 3. We conducted ou
Slide 9: Auditor's Responsibilities for the Audit
T R Chadha & Co LLP Varma & Varma Chartered Accountants Chartered Accountants Door No. 5 D, 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 7. The Board of Directors of the Ban
Slide 10: Auditors Report: Other Matters
T R Chadha & Co LLP Varma & Varma Chartered Accountants Chartered Accountants Door No. 5 D, 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 10. We communicate with those charge
Slide 11: Press Release Feb 08, 2023
EQUITAS SMALL FINANCE BANK LIMITED FOR IMMEDIATE PUBLICATION PRESS RELEASE Feb 08, 2023 Chennai, Feb 08, 2023: The Board of Directors of Equitas Small Finance Bank Limited at its meeting held today, approved the audited financial results for quarter and nine months ended December 31, 2022 Highest qu
Slide 12: Press release: advances, liabilities, key ratios
Advances as of Q3FY23 was at Rs. 24,915 Cr, growth of 27% YoY Liabilities: Total deposits grew 31% YoY to Rs. 23,393 Crs CASA deposit grew 19% YoY to Rs. 10,817 Crs. CASA ratio stood at 46% as of December 2022 Term Deposits grew 43% YoY to Rs. 12,576 Crs Retail Term Deposits grew 18% YoY t
Slide 13: CEO commentary and About Equitas
Commenting on the quarterly performance, Mr. P N Vasudevan, Managing Director and CEO of Equitas Small Finance Bank said: “The effect of Covid on the bank’s financials has waned. Many initiatives of the Bank to create a stable, sustainable and scalable bank have started yielding results and the perf
Slide 14: Investor Presentation Q3FY23
Investor Presentation Q3FY23 BEYOND BANKING When you bank with us, you contribute towards a better society
Slide 15: 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 16: 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 17: Key Highlights
Key Highlights BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 18: Snapshot
Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: Total Deposits: PAT for Q3FY23: 18 States and UTs Rs. 24,915 Cr [Rs. 19,687 Cr] Rs. 23,393 Cr [Rs. 17,884 Cr] Rs. 170 Cr [Rs. 108 Cr] SBL- 37%, VF - 25%, CASA – 46%, TD – 54 % MFI- 18%, HF-10% MSE – 5%, NBFC – 4% Disbu
Slide 19: Key Highlights
Key Highlights Key Messages • Q3FY23 was a strong quarter across key performance indicators delivering sustainable loan and deposit growth, stable margins, improving asset quality • Loan Growth – 27% YoY | Deposit Growth – 31% YoY • 93bps improvement in GNPA YoY • Highest ever PAT at Rs. 170 Crs • I
Slide 20: Business Highlights: Asset Updates
Business Highlights Asset Updates Equitas Shakthi Small Business Loans • New sub product line - Merchant Overdraft continues to scale up; gross advances crossed Rs. 150 Crs. New limits set up for the quarter at Rs. 100 Crs Vehicle Finance • A revamped proprietary Loan origination system was launched
Slide 21: Shifting gears for sustainable asset growth
Shifting gears for sustainable asset growth Strengthening new geographies and new products • Manpower strengthened across emerging states like AP & Telangana , Kerala • Disbursement in New Products at 12% for the quarter (Affordable Housing, Used Car loans and Merchant OD) Digitization in bottom of
Slide 22: Business Highlights: Liabilities Updates
Business Highlights Liabilities Updates Insurtech Platform “ENVI” Premium Liabilities Branches • Savings & Term Deposits from “Elite” the mass affluent customer segment crossed Rs. 11,500 Crs. The program now services about 68,000+ Families • Savings account balances from individuals continue to rem
Slide 23: Potential of SBL in informal economy
Potential of SBL in informal economy Estimated number of Estimated share of self- households in India employed (non-agri) 271 Million 56 million Estimated number of self- Estimated self-employed with employed households with self Pucca house occupied residential property 44 million 46 million Addres
Slide 24: Building moats around small business lending space
Building moats around small business lending space Equitas Vintage Benefits of a Bank addressing this segment Proven business model since 2013 in SBL Unique advantage of Equitas: Ability to lend like an NBFC; capability to address end to end needs unlike an NBFC. Equitas as a sole banker Gross Advan
Slide 25: Merger Updates
Merger Updates Impact of Merger Merger Timeline Particulars Particulars Dates ESFB Networth (Rs. Crs) 4,640 Record Date 03-02-2023 EHL Networth (Rs. Crs) 325* ESFB Board Meeting for allotment 08-02-2023 ESFB Networth Post Merger (Rs. Crs) 4,965 Filing of PAS-3 form with MCA# 09-02-2023 Listing appro
Slide 26: Journey of building a stable, scalable & sustainable Bank
Journey of building a stable, scalable & sustainable Bank 13
Slide 27: Bank Performance Over the Cycles
Bank Performance Over the Cycles Loan CAGR (FY18-22) 26% 56% of the book 100% of the book Qtr. Avg PPoP 3.19% impacted, 0.30% RoA impacted, 1.10% RoA 30,0 00 3.0 0% 2.65% 2.60% During demonetization, 53% of our 25,0 00 2.5 0% advances representing Micro 2.26% Finance was impacted while the rest 2.13
Slide 28: Financial Performance – Quarterly Trends
Financial Performance – Quarterly Trends 15
Slide 29: Key Ratios
Key Ratios Daily Avg Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 6.47% 9.12% 6.41% 9.10% 6.45% 6.63% 6.42% 2.21% 9.05% 5.73% 5.97% 6.25% 1.70% 1.83% 1.40% 1.60% 6.20% 6.20% 9.00% 9.01% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3
Slide 30: Income Evolution
Income Evolution Net Income Evolution (Rs. Cr) PPoP/ Assets (%) 4.35% 610 647 3.87% 541 552 581 3.62% 3.52% 3.33% 95 104 100 115 127 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 NII Other Income (Net) Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 2.0 0% Other Income [Net] Contribution (%) Liability Fee Income (%) 14 15
Slide 31: Opex evolution
Opex evolution Rs. Cr Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Employee expenses 240 209* 225# 275 292 Other expenses (net of digital expenses) 152 148 169 187 182 Depreciation 19 17 18 21 21 Total Operating expenses 411 374 412 483 495 No. of employees 17,509 17,607 17,936 18,962 20,005 Cost to Income(%)
Slide 32: Advances
Advances BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 33: Advances evolution
Advances evolution Rs Cr Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 YoY % Contribution % Micro Finance 3,695 3,907 4,007 4,144 4,600 24% 18% Small Business Loans (SBL) 7,609 7,881 8,234 8,725 9,312 22% 37% Housing Finance 1,310 1,641 1,821 2,121 2,463 88% 10% Vehicle Finance 4,845 5,047 5,279 5,641 6,203 28
Slide 34: Disbursements evolution
Disbursements evolution Rs Cr Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 YoY % Micro Finance 1,010 972 939 971 1,340 33% Small Business Loans (SBL) 728 940 978 1,096 1,260 73% Housing Finance 177 267 266 388 427 141% Vehicle Finance 778 940 889 1,098 1,334 72% Used CV 425 514 474 589 699 65% New CV 266 323
Slide 35: Segmental Details
Segmental Details Number of Live ATS @ ATS @ Product Segment GNPA (%) PCR (%) Loans Disbursement (Lacs) Portfolio (Lacs) Micro Finance 19,30,803 0.43 0.24 4.15% 56.88% Small Business Loans (SBL) 2,37,811 6.45 3.92 3.97% 42.00% Housing Finance 27,842 11.95 8.85 1.13% 32.30% Vehicle Finance 1,87,760 5
Slide 36: Asset Quality Trend
Asset Quality Trend 950 .00 4.39% 3.95% 5.0 0% 850 .00 4.06% 3.82% 4.0 0% 750 .00 3.46% 650 .00 2.38% 2.37% 2.07% 3.0 0% 550 .00 1.93% 1.73% 2.0 0% 450 .00 350 .00 479.47 1.0 0% 250 .00 0.0 0% 150 .00 863.82 459.42 837.18 856.00 441.22 870.26 430.88 861.36 423.44 50.0 0 -1.00% Q3FY22 Q4FY22 Q1FY23 Q
Slide 37: Liabilities & Branch Banking
Liabilities & Branch Banking 24
Slide 38: Deposits Evolution
Deposits Evolution CA SA CASA TD CASA+TD as on 31 Dec 2022 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 796 10,021 10,817 12,576 23,393 as a % of total borrowings (Rs. 27,333 Cr) 3% 37% 40% 46% 86% as a % of total deposits (Rs. 23,393 Cr) 3
Slide 39: Customer Deposit Profile
Customer Deposit Profile Elite Book (Rs. Cr) Savings Slab Wise (%) Deposit Category 2% 6% 6% OTHERS 8% 11,623 Upto 1 Lac 10,122 8,119 8,988 1 Lac to 1 Cr 6,120 23% 1 Cr to 10 Cr TRUSTS 3% 10 Cr to 100 Cr 64% 100 Cr + GOVT./LOCAL Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 BODIES 5% Retail & Bulk TD Mix Term
Slide 40: Funding Profile
Funding Profile Funding Profile Mix In Rs Cr Dec 2021 Sept 2022 Dec 2022 4% 1% TD 8,799 11,270 12,576 9% CASA Refinance 2,635 2,023 2,410 TD 40% CASA 9,085 10,456 10,817 Refinance Sub Debt 150 - - IBPC 46% RBI Borrowing IBPC 968 500 1200 RBI Borrowing - 316 330 Total Borrowings 21,637 24,565 27,333
Slide 41: Treasury Update
Treasury Update The Bank’s total investment portfolio of Rs. 6,181 Crore comprises of SLR and Non-SLR securities Category (Rs. Cr) Book Value SLR 6,160 Non SLR 21 Total 6,181 Borrowings & Liquidity • The Bank’s Certificate of Deposit (CD) programme has highest rating at A1+ from CRISIL and India Rat
Slide 42: Digital Banking
Digital Banking BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 43: Digital Banking – Key Highlights
Digital Banking – Key Highlights Neo Banking Digital Products overview for Q3 WhatsApp Banking Total Deposits Equitas Selfe FAQ Bot + Live agent chat during Banking hours for assistance Own digital platform Rs. 592 Crs Total Deposits • 2.1 Lacs Cards issued Prepaid Cards • 58 Lacs+ Transactions • 44
Slide 44: Financials
Financials BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 45: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Dec-22 Dec-21 YoY % Sept-22 QoQ% Capital & Liabilities Capital 1,254 1,148 9% 1,254 - Reserves & Surplus 3,386 2,435 39% 3,213 5% Networth 4,640 3,583 30% 4,467 4% Deposits 23,393 17,884 31% 21,726 8% Borrowings 2,740 2,785 -2% 2,339 17% Other Liabilities & Provi
Slide 46: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q3FY23 Q3FY22 YoY% Q2FY23 QoQ% 9MFY23 9MFY22 YoY% Interest Income from Loans 959 819 17% 904 6% 2,718 2,328 17% Income on Investments 81 64 26% 73 11% 215 180 19% Interest on balances with Reserve Bank 23 18 30% 25 -8% 73 56 30% of India and other inter b
Slide 47: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q3FY23 Q3FY22 YoY% Q2FY23 QoQ% 9MFY23 9MFY22 YoY% Net Income 774 636 22% 725 7% 2,180 1,746 25% Employee Cost 292 240 21% 275 6% 793 670 15% Opex* 203 171 19% 208 -2% 597 468 28% Total Operating Expenditure 495 411 20% 483 2% 1,390 1,158 20% PBT before pr
Slide 48: 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
Equitas Small Finance Bank — Q3 FY2023 Earnings Presentation on 6ix