Capital Small Finance Bank Limited · NSE:CAPITALSFB
Capital Small Finance Bank — Q4 FY2024 Earnings Presentation
28 slides from Capital Small Finance Bank's earnings presentation, May 10, 2024
Slide 1: Exchange filing cover letter for earnings call presentation
CSFB. 2024-25/69 May 10, 2024 To, BSE Limited National Stock Exchange of India Limited Listing Compliance The Listing Department, Phiroze Jeejeebhoy Towers Exchange Plaza, Dalal Street Bandra Kurla Complex, Mumbai 400 001 Mumbai - 400 051 Maharashtra Maharashtra Scrip Code: 544120, 951995 & 953739 S
Slide 2: Investor Presentation Quarter and Year Ended March 2024
Investor Presentation Quarter and Year Ended March 2024
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Capital Small Finance Bank Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe f
Slide 4: Differentiated Bank focused on middle-income segment
Differentiated Bank focused on middle-income segment Experience of over 2 decades in the Banking Industry* Diversified Credit Targeted towards Middle- Embracing Retail Consistent Profitability Portfolio with Zero direct Robust Asset Quality income customer Liability Strategy Growth Microfinance Expo
Slide 5: Highlights of our Progress in FY24
Highlights of our Progress in FY24 Gross Advances Profit After Tax CASA Ratio Retail Deposit Ratio Rs. 6,160 crores Rs. 112 crores(FY24) as of March 2024 Rs. 28 crores(Q4FY24) 38.3% 92.9% +19% CAGR^ +42% CAGR ^ as of March 2024 as of March 2024 +12% YoY +19% YoY +8% QoQ +16% QoQ Deposits ROA Asset Q
Slide 6: Retail Focused Liability Franchise with High Share of CASA
Retail Focused Liability Franchise with High Share of CASA Total Deposits QoQ In INR Crores 7,478 +15.3% 6,561 7,482 7,478 6,046 5,221 4,447 3,667 CASA Ratio 39% 38% Q3FY24 Q4FY24 CASA Ratio 40.0% 38.0% 40.1% 42.2% 41.9% 38.3% FY19 FY20 FY21 FY22 FY23 FY24 • Consciously calibrated deposit growth owi
Slide 7: Diversified & Secured Advance Portfolio
Diversified & Secured Advance Portfolio Gross Loan Book QoQ In INR Crores +7.7% 6,160 5,507 6,160 +18.7% 5,718 4,689 3,763 3,326 2,609 Q3FY24 Q4FY24 FY19 FY20 FY21 FY22 FY23 FY24 Diversified Portfolio & non Emphasis on Secured lending Granular loan book • Focus on middle income customer segment, rel
Slide 8: Industry Leading Asset Quality signifying underwriting strength
Industry Leading Asset Quality signifying underwriting strength Asset Quality QoQ -20 bps 2.8% 2.8% 3.0% 2.8% 2.5% 2.1% 1.8% 1.5% 1.4% 1.3% 1.3% 1.4% 1.4% 1.4% 1.1% 0.9% Q3FY24 Q4FY24 FY19 FY20 FY21 FY22 FY23 FY24 Almost NIL write-offs1 & Credit Cost2 SMA 1 & 2 Portfolio3 • Focus on secured products
Slide 9: Consistently Improving Profitability
Consistently Improving Profitability Profit After Tax QoQ In INR Crores 111.5 16.3% 93.6 28.2 24.3 +41.9% 62.6 40.8 25.4 Q4FY23 Q4FY24 19.4 FY19 FY20 FY21 FY22 FY23 FY24 • Demonstrated consistent improvement in return metrices: ROA 2.5x and ROE 1.8x (since RoA1 RoE2 Opex Ratio%3 FY19) • Growth drive
Slide 10: …..And Return Ratios
…..And Return Ratios As of / For the CRAR Key business parameters FY21 FY22 FY23 FY24 Credit to Deposit ratio (Avg) (%) 67.5 70.6 78.0 79.0 27.4% Interest Spread1 5.6 5.9 5.9 5.6 CRAR Ratio 19.8% 18.6% 18.9% Core CRAR Cost to Income ratio (%) 70.7 63.4 60.0 62.5 22.8% Return Ratios(%) 14.3% 13.2% 13
Slide 11: Strategic Focus and Outlook for FY25
Strategic Focus and Outlook for FY25 • Targeting existing segments – MSME & Trading, • Utilizing brand strength to bolster retail Mortgages, and Agriculture. deposit growth. Key Outcomes • Capitalizing on anticipated tailwinds in • Sustaining the CASA ratio middle-income segments. • Focus on deepeni
Slide 12: Company Overview
Capital Small Finance Bank $% Company Overview
Slide 13: From LAB to India's first SFB and towards India's most trusted Bank
From LAB to India’s first SFB and towards India’s most trusted Bank 2016 2019 - 2020 2022 2024 Small Finance Bank Total business of the Bank Net Profit of the Bank zoomed Successfully listed on NSE crossed ₹6,000 crores to ₹63 crores registering a and BSE on 14th February Conversion to India’s First
Slide 14: ..executed by an experienced Management Team
..executed by an experienced Management Team SARVJIT SINGH SAMRA MUNISH JAIN PROMOTER, MANAGING DIRECTOR & CEO EXECUTIVE DIRECTOR 36+ years of experience across banking & 23+ years of experience in the banking financial industry across various roles. sector across finance, compliance, Associated wit
Slide 15: …and guided by seasoned members of the Board
…and guided by seasoned members of the Board NAVIN KUMAR MAINI SARVJIT SINGH SAMRA MUNISH JAIN PART TIME CHAIRMAN & MANAGING DIRECTOR & EXECUTIVE DIRECTOR NON-EXECUTIVE CEO INDEPENDENT DIRECTOR • 40+ years of experience in the • 36+ years of experience across • ~23+ years of experience in the bankin
Slide 16: Providing a wide Range of Products and Services
Providing a wide Range of Products and Services Comprehensive bouquet of Services under one-roof Loan Portfolio Deposit Portfolio Fee-based Products Other Services Agricultural Savings Account Insurance Products Branches Kisan Credit Card Capital Savings A/c Agricultural Term Loan Capital Super Savi
Slide 17: ..with an Increasing presence to enhance accessibility
..with an Increasing presence to enhance accessibility Geographical Mix Rural-Urban Mix Punjab 152 Rural Areas 41.4% UT Chandigarh 2 Haryana 16 Semi-Urban Areas 33.3% Rajasthan 3 NCR 3 Urban Areas 19.5% Himachal Pradesh 1 Total 177 Total 100.0% Highest branch concentration towards rural and semi-urb
Slide 18: Our 'Strengths' built over 20 years by focusing on our customers
Our ‘Strengths’ built over 20 years by focusing on our customers Retail focused liability Customer centric approach and 01 deep understanding of target 04 franchise with high CASA share customers • High CASA1 ratio 38% with 92.9% retail deposits • Serving financial needs of middle-income segment wit
Slide 19: Delivering Digital Empowerment to Our Customers
Delivering Digital Empowerment to Our Customers Share of Digital Transactions Personalised Data-Driven Processes in non-cash Transactions • Leverage technology and data analytics for scalability and profitable growth • Improve collection efficiency through data driven early warning systems FY24 • Cr
Slide 20: Assets and Liabilities Overview
Assets and Liabilities Overview
Slide 21: Well-Diversified Credit Portfolio
Well-Diversified Credit Portfolio Agricultural Loans Mortgage Loans MSME & Trading Loans Other Loans 26% 19% 17% 37% • Working Capital facility Consumption & other loans: Corporate loans: • Kisan Credit Card • Housing Loan (CC / OD/WCTL) • Auto Loans • Term loans to NBFCs • Agricultural Term Loan •
Slide 22: Our Robust Credit Assessment and Risk Management Practices
Our Robust Credit Assessment and Risk Management Practices …have led to Industry leading Asset Quality Dedicated customer relationship team to maintain healthy customer engagement 2.8% Well-defined credit assessment matrix based on risk profile of the borrowers GNPA as of Mar-24 Secured lending prim
Slide 23: Retail-focused Liability Franchise & Diversified Advance Book
Retail-focused Liability Franchise & Diversified Advance Book Total Deposits FY22 FY23 FY24 In INR Crores 15.3% 7,478 6,059 6,046 6,700 7,482 7,478 6,561 5,571 6,162 6,185 6,561 7,064 7,000 6,046 5,483 5,221 4,447 3,667 CASA 40% 38% 40% 42% 42% 38% CASA 40% 40% 43% 42% 43% 42% 44% 42% 40% 38% 39% 38
Slide 24: Annexures
Capital Small Finance Bank $3 Annexures
Slide 25: Statement of Assets and Liabilities
Statement of Assets and Liabilities Particulars (INR cr) FY21 FY22 FY23 FY24 CAGR1% YoY2% Q3FY24 QoQ3 Capital & Liabilities Net Worth 451 516 611 1,197 37% 96% 743 61% Deposits 5,221 6,046 6,561 7,478 15% 14% 7,482 - Borrowings 617 498 721 472 530 Other Liabilities and Provisions 83 93 98 148 94 Tot
Slide 26: Statement of Profit and Loss
Statement of Profit and Loss Particulars (INR cr) FY21 FY22 FY23 FY24 CAGR1% YoY2% Q4FY23 Q4FY24 QoQ3 Interest Earned 511 578 676 794 179 204 Other Income 46 54 50 67 14% 36% 16 20 30% Gross Total Income 557 632 726 861 18% 19% 195 224 15% Interest Expended 313 323 354 449 94 117 Operating Expenses
Slide 27: Listing Snapshot
Listing Snapshot Listing completed on NSE and BSE • IPO Date: February 7, 2024, to February 9, 2024 • Listing Date: February 14, 2024 • Funds Raised: Rs. 523 crores including a Fresh Issue of Rs. 450 crores • Funds Utilization Plan: • Augmenting the Tier-I capital and • Growth capital required for b
Slide 28: THANK YOU !
THANK YOU ! Company: Capital Small Finance Bank Limited Investor Relation Advisors: Strategic Growth Advisors Pvt. Ltd. CIN: L65110PB1999PLC022634 CIN: U74140MH2010PTC204285 Mr. Sahil Vijay / Ms. Bharti Babutta Mr. Aakash S Mehta / Mr. Jeet Parmar investorrelations@capitalbank.co.in aakash.s.m@sgapl
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