Esaf Small Finance Bank Limited · NSE:ESAFSFB
Esaf Small Finance Bank — Q1 FY25 Earnings Presentation
37 slides from Esaf Small Finance Bank's earnings presentation, Jul 28, 2024
Slide 1: Exchange filing cover letter
Ref No: 24/SE/CS/JULY/2024-25 Date: July 28, 2024 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), Mu
Slide 2: Investor Presentation | July 2024
Investor Presentation | July 2024
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 June 30, 2024 o ESAF Small Finance Bank Limited commenced its operation on 10th March 2017 ESAF Financial Kadambelil Paul Dia Vikas* Holdings Private Thomas (19.99%) o Mr. Kadambelil Paul Thomas, and ESAF Financial Holdings Private Limited promoted the Bank. Limited
Slide 6: Business Snapshot
Business Snapshot Other Touch Points 86.7 lakh Total Customers 23 States and 2 UTs 1,065 Customer Service 755 Banking Outlets 6,283 Employees Operational 8,481 Total Customer Centers 627 ATMs 35 Institutional Business Touch Points 5,386 Banking Agents Correspondents 648 Business Facilitators Total L
Slide 7: Enhancing Risk Management
Enhancing Risk Management Pre -Transition - Business Distribution (EOD 30th June 2024) Post-Transition - Business Distribution (SOM 01st July 2024) Board of Directors of ESAF Small Finance Bank Limited (“the Bank”) at its meeting held on June 14, Gross Advances - 18,783 (₹ Cr.) Gross Advances - 18,7
Slide 8: Extensive Geographical Footprint
Extensive Geographical Footprint ESAF SFB has a large national footprint with presence in 23 states & 2 UTs Reduced Home State Concentration Banking Outlets (Nos.) (% of Gross Advances) Name of the State/ BOs ATMs CSC Ladakh Union Territory Andhra Pradesh 6 3 32 Jammu & Mar-21 Jun-24 Assam 5 2 17 Ka
Slide 9: Financial Performance
Financial Performance
Slide 10: Total Loan Book & Disbursement Mix
Total Loan Book & Disbursement Mix Total Loan Book Mix (₹ Crs) Disbursements Mix (₹ Crs) 24.6 25.0 24.8 26.1 26.0 6.4 4.8 5.3 7.0 6.0 19,659 19,664 5,266 1,045 1,038 257 18,149 17,204 17,490 1,148 1,251 383 935 4,509 849 4,503 784 917 135 816 198 770 132 274 3,700 4,136 3,893 3,201 1,557 2,798 2,978
Slide 11: Key Profitability Metrics
Key Profitability Metrics Net Interest Income (₹ Crs) Non-Interest Income (₹ Crs) 585 597 597 591 588 150 120 115 93 79 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Pre-Provision Operating Profit (₹ Crs) Profit After Tax (₹ Crs) 301 290 288 285 140 130 254 112 63 43 Q1FY24 Q
Slide 12: Key Profitability Ratios
Key Profitability Ratios Margins* (%) Cost to Income (%) 21.0% 21.1% 21.1% 20.6% 20.2% 64.0% 55.7% 56.4% 57.6% 58.6% 11.3% 11.0% 10.6% 10.0% 9.4% 6.9% 7.3% 7.3% 7.4% 7.4% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Yield on Advances NIMs Cost of Funds ROA* (%) ROE* (%) 2.5%
Slide 13: Asset Quality
Asset Quality GNPA & NNPA (%) PCR (%) 74.4% 70.5% 6.6% 65.2% 61.9% 59.5% 4.8% 4.2% 3.2% 2.6% 2.3% 2.2% 1.7% 0.8% 1.2% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 GNPA NNPA NPA Movement (₹ Crs) Description Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Opening balance of Gross NPAs at t
Slide 14: Capital Adequacy
Capital Adequacy Total Assets & Risk Weighted Assets (₹ Crs) Capital Adequacy (%) 26,835 26,087 23.3% 23.5% 24,300 22,368 20.6% 20.6% 21.0% 19.7% 20.1% 20,796 19.0% 18.9% 18.2% 12,684 12,464 11,669 9,705 10,085 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Total Assets Risk W
Slide 15: Key Balance Sheet Metrics
Key Balance Sheet Metrics Shareholders Funds (₹ Crs) Gross Advances (₹ Crs) 18,772 18,783 2,482 2,486 2,558 17,153 14,444 15,123 1,979 1,839 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Total Deposits (₹ Crs) CASA Deposits (₹ Crs) 20,887 4,649 18,860 19,868 4,170 17,416 15,6
Slide 16: Key Strengths
Key Strengths
Slide 17: Key Strengths
Key Strengths Strong Rural And Semi-Urban Continued focus on Loan Multi-Nodal Delivery Channels Banking Franchise Diversification Technology Driven Model With Robust Funding Profile and An Advanced Digital Technology Customer Centric Approach Competitive Product Lineup Healthy Capital Adequacy Platf
Slide 18: 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 o Cu
Slide 19: Strong Rural And Semi-Urban Banking Franchise
Strong Rural And Semi-Urban Banking Franchise Strong rural and semi-urban franchise of ESAF to take advantage of the growth opportunity in the under-penetrated rural and semi-urban market Majority of advances in rural & semi-urban regions Focusing on rural & semi-urban areas in the liabilities profi
Slide 20: Continued focus on Loan Diversification
Continued focus on Loan Diversification As of June 30, 2024, ESAF SFB had over 55.1 lakh customers with Micro Loans, the majority of whom were women Growth in Gross Advances (₹ Crs) Continued focus on Loan Diversification 19% 25% 30% 33% 18,772 18,783 2.6% 4.2% 5.3% 5.3% 4.3% 4.7% 5.8% 6.4% 11.9% 16
Slide 21: 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% 92% 19,868 20,887 15.9% 14,666 18,368 19,231 63% 9.8% 12,815 13,346 7.3% 7.9% 12,046 60% Mar-22 Mar-23 Mar-24 Jun-24 Mar-22 Mar-23 Mar-24
Slide 22: 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 DIGITAL MEASURES DIG
Slide 23: Customer Centric Approach
Customer Centric Approach Products to meet customers’ life-cycle needs Home loans Agri-loans Loan against property Personal Loans Vehicle Loans Gold Loans MSME Micro Loans Customer service measures CUSTOMER SERVICE COMMUNITY 24*7 CALL CENTRE DOOR-STEP BANKING QUALITY DEPARTMENT BUILDING PROGRAMME •
Slide 24: Competitive Product Lineup
Competitive Product Lineup Agri-Lending MSME Micro Assets Retail Assets Retail Liability Third Party Products Other Services Loan & Advances o Current Accounts Retail o Savings Accounts Agri-Lending Products MSME Retail Assets o Recurring Deposits Liabilities o Fixed Deposits o ESAF Dairy Developmen
Slide 25: High Quality Board At The Helm Of The Organization
High Quality Board At The Helm Of The Organization Ravimohan Periyakavil Ramakrishnan Kadambelil Paul Thomas George Kalaparambil John Part time Chairman & Non-Executive Independent Director Managing Director and Chief Executive Officer Executive Director o Bachelor’s and master’s degree in science f
Slide 26: High Quality Board At The Helm Of The Organization
High Quality Board At The Helm Of The Organization Ravi Venkatraman Thomas Jacob Kalappila Vinod Vijayalekshmi Vasudevan Non-Executive Independent Director Non-Executive Independent Director Non-Executive Independent Director o Associate member of the Institute of Chartered Accountants of o Fellow m
Slide 27: Experienced Management Team
Experienced Management Team Supported by a highly experienced team of qualified & experienced professionals Name & Designation Education Prior Associations George Thomas o Senior agriculture officer (assistant director agriculture) - Department o Master’s degree of science in ecology & environment f
Slide 28: Clearly Articulated Strategy
Clearly Articulated Strategy 1 Increase Deposits 2 Increase Advances 3 Deeper Penetration o Micro Loan Business: o Target new & existing customers for CASA, • Cross selling and up-selling to its customer base o Open additional Branches, ATMs fixed deposits and recurring deposits by • Appoint new BCs
Slide 29: Annexures
Annexures
Slide 30: Journey So Far
Journey So Far 2024 • Operationalisation of Authorised Dealer Category 1 Licence (Foreign Exchange operations) • Tied up with Edelweiss Life Insurance to broaden the range of insurance products • Entered into a corporate agency partnership with Care Health Insurance Company to provide health coverag
Slide 31: 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 32: 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 The Bank received ISO 26000:2010 certification during FY 23-24. It is a recognition for the Bank’s (i) the protection of the environment and ensuring sustainable development ra
Slide 33: Profit & Loss Statement – Q1 FY25
Profit & Loss Statement – Q1 FY25 Particulars (₹ Crs) Q1 FY25 Q1 FY24 Y-o-Y Q4 FY24 Q-o-Q Interest Income 1,022.49 898.72 13.8% 1,002.00 2.0% Interest Expense 434.10 313.29 38.6% 411.25 5.6% Net Interest Income 588.39 585.43 0.5% 590.75 -0.4% Other Income 115.25 93.06 23.9% 149.84 -23.1% Net Total I
Slide 34: Profit & Loss Statement
Profit & Loss Statement Particulars (₹ Crs) FY24 FY23 FY22 Interest Income 3,818 2,854 1,940 Interest Expense 1,449 1,017 793 Net Interest Income 2,370 1,836 1,147 Other Income 442 288 208 Net Total Income 2,812 2,124 1,355 Employee Benefits Expense 363 278 232 Depreciation and Amortization Expense
Slide 35: Balance Sheet
Balance Sheet Particulars (₹ Crs) Jun-24 Mar-24 Mar-23 Mar-22 CAPITAL AND LIABILITIES Capital 514.78 514.78 449.47 449.47 Employee Stock Option Outstanding 6.31 5.68 5.88 4.81 Reserves and Surplus 2,043.62 1,971.33 1,259.66 957.32 Deposits 20,887.04 19,867.80 14,665.63 12,815.07 Borrowings 2,868.83
Slide 36: Awards & Recognitions
Awards & Recognitions 2019 2020 2021 2022 2023 2024 o Dhanam ‘Kerala Bank of The o ‘Global Sustainability Award o Semi Finalist at the SKOCH o ‘Small Finance Bank of the o ‘Excellence in Customer o Received award for Best Year – 2019’ award 2020’ for outstanding Award 2021 in the category Year’ cert
Slide 37: Company and Investor Relations contacts
COMPANY : ESAF Small Finance Bank Limited Mr. Ranjith Raj P Email: investor.relations@esafbank.com Website: www.esafbank.com CIN : U65990KL2016PLC045669 INVESTOR RELATIONS ADVISORS : Orient Capital (a division of Link Group) Mr. Nikunj Jain Mr. Viral Sanklecha +91 9769060608 +91 9987123158 nikunj.ja
ESAF Small Finance Bank — Q1 FY25 Earnings Presentation on 6ix