Esaf Small Finance Bank Limited · NSE:ESAFSFB
Esaf Small Finance Bank — Q2 FY2024 Earnings Presentation
36 slides from Esaf Small Finance Bank's earnings presentation, Nov 20, 2023
Slide 1: Exchange filing cover letter
Date: November 20, 2023 To, Listing Department Listing & Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor Dalal Street, Mumbai – 400001 Plot No. C/1, “G” Block Bandra-Kurla Complex Bandra (E), Mumbai – 400 051 BSE Scrip C
Slide 2: Investor Presentation | November 2023
Investor Presentation | November 2023
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by ESAF 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 for a
Slide 4: Company Overview
Company Overview
Slide 5: Company Overview
Company Overview Structure as on Sep 30, 2023 o ESAF Foundation (formerly known as Evangelical Social Action Forum) was founded by ESAF SFB’s individual promoter, Mr. Kadambelil Paul Thomas, along with others, in 1992 ESAF Financial Kadambelil Paul Dia Vikas* Holdings Private o With roots of micro-f
Slide 6: Journey So Far
Journey So Far ESAF Small Finance Bank Limited ("ESAF SFB") is one of the 12 awardees of Over the years it has expanded its geographical coverage and product the SFB licenses as of Sept 30, 2023 offerings (both assets & deposits) o 1992 - ESAF Foundation o ESAF SFB included in the founded by Mr. sec
Slide 7: Successful IPO Listing
Successful IPO Listing Shareholding Pattern As on 9th November 2023 (Post Issue) Overwhelming subscription of 77 times with a listing day gain of ~19% 21.3% November 2023 2.2% 13.1% 63.4% o Listing done on BSE & NSE o IPO Price: ₹ 60 per share o Listing Price: NSE ₹ 71.0 per share BSE ₹ 71.9 per sha
Slide 8: A social business driven by providing “Joy of Banking” to customers
A social business driven by providing “Joy of Banking” to customers ESAF SFB has adopted a triple bottom line approach towards business in line with the motto – ‘fighting the partiality of prosperity’. The triple bottom line approach of ESAF ESAF SFBs main focus is on unbanked and under- banked cust
Slide 9: Sustainability & ESG Performance – ESAF SFB’s social business strategy
Sustainability & ESG Performance – ESAF SFB’s social business strategy Pursuant to the ESG policy, ESAF SFB is committed to (i) the protection of the environment and ensuring sustainable development (ii) promoting financial inclusion and gender equality through specialised financial services (iii) e
Slide 10: Business Snapshot
Business Snapshot 7.51mn Total Customers 5,505 Employees 25 Business Correspondents Operational 21 States and 2 UTs 700 Banking Outlets 579 ATMs 854 Customer Service Centers 2,332 Banking agents 615 Business facilitators AUM: ₹ 17,490 cr Yield on Advances: AUM Growth (YoY) Asset Quality Asset Profil
Slide 11: Extensive Geographical Footprint
Extensive Geographical Footprint Reduced Home State Concentration ESAF SFB has a large national footprint with presence in 21 states & 2 UT Banking Outlets (Nos.) (% of Gross Advances) Name of the State/ Union BOs ATMs CSC Territory Mar-21 Sep-23 Andhra Pradesh 3 3 6 Assam 3 2 10 Bihar 10 10 22 Chha
Slide 12: Financial Performance
Financial Performance
Slide 13: AUM & Disbursement Mix
AUM & Disbursement Mix AUM Mix (₹ Crs) Disbursements Mix (₹ Crs) 23.0 23.0 23.3 24.6 25 4.1 6.1 8.6 6.4 4.8 17,204 17,490 6,043 849 250 16,331 784 770 816 330 688 774 +37.0% 2,798 2,978 13,351 2,615 1,421 12,764 4,509 513 433 542 198 530 132 2,216 1,953 3,521 1,221 3,345 133 136 185 189 892 +46.0% 2
Slide 14: Key Profitability Metrics
Key Profitability Metrics Net Interest Income (₹ Crs) Non-Interest Income (₹ Crs) 585 597 94 93 499 81 79 437 451 +36.4% 65 +21.5% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Pre-Provision Operating Profit (₹ Crs) Profit After Tax (₹ Crs) 301 290 140 130 239 211 219 +37.4%
Slide 15: Key Profitability Ratios
Key Profitability Ratios Margins* (%) Cost to Income (%) 21.0% 21.1% 58.0% 19.5% 19.6% 19.8% 56.4% 55.9% 55.7% 56.4% 10.4% 11.3% 11.0% 9.7% 9.9% 6.3% 6.2% 6.4% 6.9% 7.3% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Yield on Advances NIMs Cost of Funds ROA* (%) ROE* (%) 2.5%
Slide 16: Asset Quality & Capital Adequacy
Asset Quality & Capital Adequacy GNPA & NNPA (%) Total Assets & Risk Weighted Assets (₹ Crs) 22,368 8.1% 20,224 20,796 7.2% 18,248 18,345 4.3% 9,705 10,085 3.7% 8,444 9,347 8,087 2.5% 2.6% 1.7% 1.2% 1.1% 0.8% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 GNPA NNPA Total Asset
Slide 17: Key Balance Sheet Metrics
Key Balance Sheet Metrics Shareholders Funds (₹ Crs) Gross Advances (₹ Crs) 14,444 15,123 1,979 14,118 1,839 12,544 1,709 11,856 +27.6% 1,570 1,608 +26.0% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Total Deposits (₹ Crs) CASA Deposits (₹ Crs) 17,416 3,069 2,761 2,874 2,878
Slide 18: Key Strengths
Key Strengths
Slide 19: Key Strengths
Key Strengths Rapid Asset Growth with Strong Rural And Semi-Urban Multi-Nodal Delivery Channels continuous focus on Core Banking Franchise Segment & Retail Growth Technology Driven Model With Robust Funding Profile and Best-In Class Banking Products An Advanced Digital Technology Customer Centric Ap
Slide 20: Multi-Nodal Delivery Channels
Multi-Nodal Delivery Channels Banking Outlets Digital Banking o Provision for full-fledged o Application (compatible with Android banking product & services and iOS) that connects with the National o Branch Operations Payments Corporation of India’s unified o Multiple channels for servicing the paym
Slide 21: Strong Rural And Semi-Urban Banking Franchise
Strong Rural And Semi-Urban Banking Franchise Low penetration of banking credit in rural areas Focus on increasing credit in the rural & semi-urban areas has remained low Rural share of GDP contribution (Mar-23) Rural share of Credit outstanding (Q1FY24) Rural share of Credit outstanding (Q1FY24) 66
Slide 22: Rapid Asset Growth with continuous focus on Core Segment & Retail Growth
Rapid Asset Growth with continuous focus on Core Segment & Retail Growth As of September 30, 2023, ESAF SFB had over 7.51 mn customers with Micro Loans, the majority of whom were women Continued focus on Micro Loans segment with Increased Retail Gross Advances have grown rapidly (₹ Crs) Diversificat
Slide 23: Robust Funding Profile and Healthy Capital Adequacy
Robust Funding Profile and Healthy Capital Adequacy Deposits growth (₹ Crs) % deposits from top 20 largest depositors Retail share of deposits (₹ Crs) 98% 94% 91% 89% 15.9% 17,416 +93.5% 14,666 15,485 12,815 9.1% 9.8% 9.9% 12,046 13,346 8,999 8,819 +75.6% Mar-21 Mar-22 Mar-23 Sep-23 Mar-21 Mar-22 Ma
Slide 24: Technology Driven Model With An Advanced Digital Technology Platform
Technology Driven Model With An Advanced Digital Technology Platform ESAF SFB has continuously worked towards improving its customers’ experience through the use of technology. Such initiatives have enabled the Bank to deliver improved customer service in a cost effective manner CASHLESS DISBURSEMEN
Slide 25: Customer Centric Approach
Customer Centric Approach Customer service measures Products to meet customers’ life-cycle needs • Home loans • Vehicle Loans 24*7 CALL CENTRE DOOR-STEP BANKING • Agri-loans • Gold Loans • Multi-lingual assistance • Facilitate regular door-step from agents collection from • Loan against property • M
Slide 26: Best-In Class Banking Products and Services
Best-In Class Banking Products and Services Loan & Advances Microfinance Loans Retail Loans Other Loans o ESAF Income Generation Loan o ESAF General Loan Liability o MSME Loans o ESAF Vidyajyoti Loan o ESAF Income Generation Loan o ESAF Dream Home Loan Products o ESAF Jeevadhara Loan o ESAF General
Slide 27: Prudent Risk Management
Prudent Risk Management ESAF SFB has a well-defined risk management architecture with: o Active board and senior management oversight o Appropriate policies, procedures and limits o Comprehensive and timely identification, measurement, mitigation, controlling, monitoring and reporting of risks o App
Slide 28: Experienced Management Team
Experienced Management Team Ravimohan Periyakavil Ramakrishnan Supported by a highly experienced team of qualified & experienced professionals Part time Chairman & Non-Executive Independent Director o Bachelor’s and master’s degree in science from Kerala University, master’s degree in business admin
Slide 29: High Quality Board At The Helm Of The Organization
High Quality Board At The Helm Of The Organization Biju Varkkey Thomas Jacob Kalappila Vinod Vijayalekshmi Vasudevan Ravi Venkatraman Additional Non-Executive Independent Director Non-Executive Independent Director Non-Executive Independent Director Non-Executive Independent Director o Bachelor’s de
Slide 30: Clearly Articulated Strategy
Clearly Articulated Strategy 1 Increase Deposits 2 Increase Advances o Micro Loan Business: o Target new & existing customers for CASA, fixed deposits and • Cross selling and up-selling to its customer base recurring deposits by focusing on customer service & offering • Appoint new BCs and have its
Slide 31: Annexures
Annexures
Slide 32: Profit & Loss Statement – Q2 & H1 FY24
Profit & Loss Statement – Q2 & H1 FY24 Particulars (₹ Crs) Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Q-o-Q H1 FY24 H1 FY23 Y-o-Y Interest Income 943.3 688.2 37.1% 898.8 5.0% 1,842.0 1,378.5 33.6% Interest Expense 346.8 250.9 38.2% 313.3 10.7% 660.1 492.5 34.0% Net of Interest Income 596.5 437.3 36.4% 585.5 1.9%
Slide 33: Profit & Loss Statement
Profit & Loss Statement Particulars (₹ Crs) FY23 FY22 FY21 Interest Income 2,854 1,940 1,641 Interest Expense 1,017 793 720 Net of Interest Income 1,836 1,147 922 Other Income 288 208 127 Total Income, Net of Interest Expense 2,124 1,355 1,049 Employee Benefits Expense 278 232 188 Depreciation and A
Slide 34: Balance Sheet
Balance Sheet Particulars (₹ Crs) Sep-23 Mar-23 Mar-22 Mar-21 CAPITAL AND LIABILITIES Capital 449.5 449.5 449.5 449.5 Employee Stock Option Outstanding 5.7 5.9 4.8 - Reserves and Surplus 1,529.7 1,259.7 957.3 902.6 Deposits 17,416.3 14,665.6 12,815.1 8,999.4 Borrowings 2,441.9 3,354.2 2,952.8 1,694.
Slide 35: Awards & Recognitions
Awards & Recognitions 2018 2019 2020 2021 2022 2023 o MSME Ba nking Excellence o Dha nam ‘Kerala Bank of o ‘Global Sustainability o Semi Finalist a t the SKOCH o ‘Small Finance Bank of the o ‘Excellence in Customer Awa rds ‘Special Jury Award for The Year – 2019’ a ward Award 2020’ for Awa rd 2021 i
Slide 36: Contact details
COMPANY : ESAF Small Finance Bank Limited Mr. Ranjith Raj P Email: ranjith.raj@esafbank.com Website: www.esafbank.com CIN : U65990KL2016PLC045669 INVESTOR RELATIONS ADVISORS : Orient Capital (a division of Link Group) Mr. Nikunj Jain Mr. Amar Yardi +91 9769060608 +91 7045121239 nikunj.jain@linkintim
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