Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q2 FY24 Earnings Presentation
33 slides from Equitas Small Finance Bank's earnings presentation, Oct 19, 2023
Slide 1: Submission of Investors/Analysts presentation cover letter
October 19, 2023 National Stock Exchange of India Limited BSE Limited Exchange Plaza Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street Mumbai – 400 051 Mumbai – 400 001 Symbol : EQUITASBNK Scrip Code : 543243 Dear Sir Sub: Submission of Investors /Analysts presentation Pursuant to Regulati
Slide 2: Investor Presentation Q2FY24
Investor Presentation Q2FY24 BEYOND BANKING When you bank with us, you contribute towards a better society
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 1. Key Highlights 2. Financial Performance 3. Advances Liabilities & 4. Branch Banking 5. Digital Banking 6. Financials 3
Slide 5: Key Highlights
Key Highlights BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 6: Snapshot
Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: Total Deposits: PAT for Q2FY24: 18 States and UTs Rs. 31,229 Cr [Rs.22,779 Cr] Rs. 30,839 Cr [Rs. 21,726 Cr] Rs. 198 Cr [Rs. 116 Cr] SBL- 37%, VF - 25%, CASA – 34%, TD – 66 % MFI- 19%, HF-11% MSE – 3%, NBFC – 3% Disbur
Slide 7: Key Highlights
Key Highlights Key message • Sustained Credit growth with advances growing at 37% YoY and 6% QoQ • TD grows healthy at 82 % YoY supported by 58% YoY growth in retail TD; CASA remains flat as money moves towards TD • Bank sold Rs 162Crs of NPA assets to ARC during Q2FY24 • Asset quality remains under
Slide 8: Highlights
Highlights Asset Quality & Provisioning • GNPA improved by 170 bps YoY to 2.12% in Q2FY24 as compared to 3.82% in Q2FY23 and improved by 48 bps as compared to 2.60% in Q1FY24 • NNPA improved by 102 bps YoY to 0.91 % in Q1FY24 as compared to 1.93% in Q2FY23 and improved by 21 bps QoQ as compared to 1
Slide 9: Our Presence
Our Presence Map not to scale . Districts present in | Branch network States Advances (%) Deposits (%) Andhra Pradesh 2% 3% Chandigarh - 3% Chhattisgarh 1% 27 Punjab Himachal Pradesh 3 2% Delhi 1% 1 Chandigarh 8% Uttarakhand 1 30 Haryana Gujarat 5% 5% Delhi 14 68 Rajasthan Haryana 2% 5% Himachal Pra
Slide 10: Financial Performance – Quarterly Trends
Financial Performance – Quarterly Trends 9
Slide 11: Key Ratios
Key Ratios Daily Avg Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 7.21% 6.94% 9.00% 9.01% 9.10% 8.76% 6.61% 8.43% 6.63% 6.25% 6.41% 6.42% 6.42% 6.37% 2.21% 2.28% 2.10% 2.03% 6.10% 1.60% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2
Slide 12: Income Evolution
Income Evolution Net Income Evolution^ (Rs. Cr) PPoP / Assets (%) 743 766 707 3.79%* 610 647 3.62% 3.42% 3.33% 3.38% 215 115 127 150 161 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 NII Other Income (Net) Other Income [Net] Contribution^ (%) Liability Fee Income (Rs .Cr) 23
Slide 13: Opex evolution
Opex evolution Rs. Cr Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Employee expenses 275 292 304 328 332 Other expenses (net of digital expenses) 187 182 207 224 232 Depreciation 21 21 25 29 33 Total Operating expenses 483 495 536 581 597 No. of employees 18,962 20,005 20,563 20,996 21,862 Cost to Income 66.5
Slide 14: Advances
Advances BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 15: Advances evolution
Advances evolution Rs Cr Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 YoY % Contribution % Micro Finance 4,144 4,600 5,225 5,626 5,878 42% 19% Small Business Loans (SBL) 8,725 9,312 10,083 10,787 11,550 32% 37% Housing Finance 2,121 2,463 2,873 3,206 3,582 69% 11% Vehicle Finance 5,641 6,203 6,971 7,342 7,777
Slide 16: Disbursements evolution
Disbursements evolution Rs Cr Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 YoY % Micro Finance 971 1,340 1,676 1,464 1,406 45% Small Business Loans (SBL) 1,096 1,260 1,464 1,361 1,494 36% Housing Finance 388 427 557 438 500 29% Vehicle Finance 1,098 1,334 1,591 1,168 1,341 22% Used CV 589 699 743 551 668 13%
Slide 17: Segmental Details
Segmental Details Number of Live ATS @ ATS @ Product Segment GNPA (%) PCR (%) Loans Disbursement (Lacs) Portfolio (Lacs) Micro Finance 20,28,854 0.49 0.29 2.72% 81.00% Small Business Loans (SBL) 2,56,007 6.74 4.49 1.70% 32.50% Housing Finance 36,814 11.74 9.73 0.86% 29.39% Vehicle Finance 2,21,691 5
Slide 18: Used Car Financing – Scale up
Used Car Financing – Scale up Advance Growth (In Cr) Key factors Pilot launch in June 2020; Spread across 347 branches; 13 States 984 Focus on High Resale Value Manufacturer -70% portfolio is from Maruti, Hyundai, Honda and Toyota. 715 Small Ticket loans - Average ticket size of Rs 3.50 lacs.
Slide 19: Asset Quality Trend
Asset Quality Trend 950 5.0 0% 850 3.82% 4.0 0% 750 3.46% 650 2.60% 2.60% 2.12% 3.0 0% 550 1.93% 1.73% 1.12% 2.0 0% 1.14% 450 350 0.91% 1.0 0% 250 0.0 0% 150 870 431 861 423 724 312 770 325 660 279 50 -1.00% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 GNPA (Rs. Cr) NNPA (Rs. Cr) GNPA % NNPA % GNPA Movement (
Slide 20: Liabilities & Branch Banking
Liabilities & Branch Banking 19
Slide 21: Deposits Evolution
Deposits Evolution CA SA CASA TD CASA+TD as on 30 Sept 2023 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 814 9,535 10,349 20,490 30,839 as a % of total borrowings (Rs. 35,40 Cr) 2% 29% 31% 61% 93% as a % of total deposits (Rs. 30,839 Cr) 3%
Slide 22: Customer Deposit Profile
Customer Deposit Profile Elite Book (Rs. Cr) Savings Slab Wise (%) Deposit Category 5% 6% 7% OTHERS 11% 12,617 13,393 Upto 1 Lac 11,071 11,550 10,122 1 Lac to 1 Cr 19% 1 Cr to 10 Cr TRUSTS 2% 10 Cr to 100 Cr 62% 100 Cr + GOVT./LOCAL Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 BODIES 6% Retail & Bulk TD Mix T
Slide 23: Funding Profile
Funding Profile Funding Profile Mix In Rs Cr Sep 2022 Jun 2023 Sep 2023 6% TD 11,270 17,067 20,490 Refinance 2,023 2,971 2,481 7% CASA 29% CASA 10,423 10,642 10,350 TD Sub Debt - - - Refinance IBPC 500 1630 2080 IBPC 58% Others (Repo & Market Repo) 316 681 - Total Borrowings 24,532 32,991 35,401 Dai
Slide 24: Treasury Update
Treasury Update The Bank’s total investment portfolio of Rs. 8,551 Crore comprises of SLR and Non-SLR securities Category ( In Rs. Cr) Q2FY24 Q1FY24 Q2FY23 SLR 7,892 7,148 5,729 Non SLR 659 43 17 Total 8,551 7,191 5,746 Borrowings & Liquidity • The Bank’s Certificate of Deposits (CD) programme has h
Slide 25: Digital Banking
Digital Banking BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 26: Digital Banking – Key Highlights
Digital Banking – Key Highlights Neo Banking Digital Products overview for Q2 FY24 Total Deposits Equitas Selfe • 18 K+ Transactions Own digital platform Prepaid Cards • 60 Crs+ Txn value processed Rs 822.2 Crs • 82 Lacs+ Transactions Total Deposits Micro ATM • 2777 Crs + Txn value processed • 45 K+
Slide 27: Financials
Financials BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 28: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Sept-23 Sept-22 YoY % June-23 QoQ% Capital & Liabilities Capital 1,122 1,254 -11% 1,113 1% Reserves & Surplus 4,357 3,213 36% 4,247 3% Networth 5,479 4,467 23% 5,360 2% Deposits 30,839 21,693 42% 27,709 11% Borrowings 2,481 2,339 6% 3,652 -32% Other Liabilities &
Slide 29: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q2FY24 Q2FY23 YoY% Q1FY24 QoQ% Interest Income from Loans 1,225 904 35% 1,142 7% Income on Investments 126 73 74% 108 16% Interest on balances with RBI and other inter bank funds 8 25 -70% 4 111% Total Interest Income 1,359 1,002 36% 1,254 8% Finance Cost
Slide 30: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q2FY24 Q2FY23 YoY% Q1FY24 QoQ% Net Income 927 725 28% 893 4% Employee Cost 332 275 20% 328 1% Opex* 265 208 28% 253 5% Total Operating Expenditure 597 483 24% 581 3% PBT before provision & Write-off 330 242 36% 312 6% Credit Cost 63 90 -30% 60 5% PBT 267
Slide 31: Key Ratios - Annual
Key Ratios - Annual Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 8.13% 8.06% 9.11% 6.96%6.75% 7.34% 7.08% 9.00% 6.34% 6.24% 2.06% 6.58% 6.38% 5.52%6.00% 1.70% 1.89% 8.61% 1.45%1.39% 8.55% 8.54% 1.10% 8.44% FY19 FY20 FY21 FY22 FY23 H1FY24 FY19 FY20 FY21 FY22 FY23 H1FY24 FY19 FY20 FY21 F
Slide 32: Social Impact Health care-Hospital
Social Impact Health care-Hospital 41,78,786 1,23,381 35,960 General & other Spectacles Cataract • Equitas Healthcare camp distributed for Operations Foundation, as a part of CSR participants free Sponsored initiative, has recently inaugurated Sringeri Sharada Equitas Hospital (SSEH) in JV 80,029 6,
Slide 33: 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 32
Equitas Small Finance Bank — Q2 FY24 Earnings Presentation on 6ix