Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q1 FY2024 Earnings Presentation
33 slides from Equitas Small Finance Bank's earnings presentation, Jul 28, 2023
Slide 1: Investor Presentation Q1FY24
Investor Presentation Q1FY24 BEYOND BANKING When you bank with us, you contribute towards a better society
Slide 2: 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 3: 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 4: Strategic Framework
Strategic Framework Mission : Create the most valuable bank for all stake holders through happy employees Our Core Values: Customer First | Pride Of Performance | Fair And Transparent | Respect For People | Ownership Philosophy Stable Sustainable Scalable Creating a strong foundation Building long t
Slide 5: Equitas and Governance standards
Equitas and Governance standards Equitas: A Latin word meaning Equitable, meaning Fair & Transparent Equitas Governance Philosophy: • Everything that happens in Equitas to be Fair & Transparent to all When in doubt, the benefit of doubt stakeholders goes to the Regulator. Never play at the edges … a
Slide 6: Key Highlights
Key Highlights BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 7: Snapshot
Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: Total Deposits: PAT for Q1FY24: 18 States and UTs Rs. 29,601 Cr [Rs.21,688 Cr] Rs. 27,709 Cr [Rs. 20,353 Cr] Rs. 191 Cr [Rs. 97 Cr] SBL- 36%, VF - 25%, CASA – 38%, TD – 62 % MFI- 19%, HF-11% MSE – 4%, NBFC – 4% Disburs
Slide 8: Key Highlights
Key Highlights Key message • Credit Growth continues to remain strong with advances growing at 36% YOY and 6% QoQ despite Q1 seasonality • Portfolio quality remains stable with 31-90 DPD at 3.24% as compared Q4FY23 which stood at 3.23%. Slippages continue to remain healthy at 3.07% • NIM contracted
Slide 9: Highlights
Highlights Asset Quality & Provisioning • GNPA improved by 135 bps YoY to 2.60% in Q1FY24 as compared to 2.60% in Q4FY23 and 3.95% in Q1FY23 • NNPA improved by 96bps YoY to 1.12% in Q1FY24 as compared to 1.14% in Q4FY23 and 2.07% in Q1FY23 • In order to strengthen PCR, Bank has made additional provi
Slide 10: Highlights
Highlights Liability Update • New flagship tenor in Retail Term Deposit for 444 days gaining traction • Virtual Relationship Managers now managing 2 lac+ customers witnessing positive traction on relationship value. Introduced time zone-based relationship channel to further strengthen offering to No
Slide 11: 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 29 Haryana Gujarat 5% 5% Delhi 14 69 Rajasthan Haryana 2% 5% Himachal Pra
Slide 12: Financial Performance – Quarterly Trends
Financial Performance – Quarterly Trends 12
Slide 13: Key Ratios
Key Ratios Daily Avg Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 6.94% 9.05% 9.00% 9.01% 9.10% 8.76% 6.41% 6.61% 6.63% 6.42% 6.42% 6.37% 6.20% 6.25% 5.97% 2.21% 2.28% 2.10% 1.40% 1.60% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1
Slide 14: Income Evolution
Income Evolution Net Income Evolution^ (Rs. Cr) PPoP / Assets (%) 707 743 610 647 3.88% 581 3.62% 3.79%* 3.33% 3.42% 215 100 115 127 150 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 NII Other Income (Net) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Other Income [Net] Contribution^ (%) Liability Fee Income (Rs .Cr) 3.0
Slide 15: Opex evolution
Opex evolution Rs. Cr Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Employee expenses 225# 275 292 304 328 Other expenses (net of digital expenses) 169 187 182 207 224 Depreciation 18 21 21 25 29 Total Operating expenses 412 483 495 536 581 No. of employees 17,936 18,962 20,005 20,563 20,996 Cost to Income 66.
Slide 16: Advances
Advances BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 17: Disbursements evolution
Disbursements evolution Rs Cr Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 YoY % Micro Finance 939 971 1,340 1,676 1,464 56% Small Business Loans (SBL) 978 1,096 1,260 1,464 1,361 39% Housing Finance 266 388 427 557 438 65% Vehicle Finance 889 1,098 1,334 1,591 1,168 31% Used CV 474 589 699 743 551 16% New CV
Slide 18: Advances evolution
Advances evolution Rs Cr Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 YoY % Contribution % Micro Finance 4,007 4,144 4,600 5,225 5,626 40% 19% Small Business Loans (SBL) 8,234 8,725 9,312 10,083 10,787 31% 36% Housing Finance 1,821 2,121 2,463 2,873 3,206 76% 11% Vehicle Finance 5,279 5,641 6,203 6,971 7,342
Slide 19: Segmental Details
Segmental Details Number of Live ATS @ ATS @ Product Segment GNPA (%) PCR (%) Loans Disbursement (Lacs) Portfolio (Lacs) Micro Finance 20,72,356 0.48 0.27 2.46% 78.47% Small Business Loans (SBL) 2,53,842 6.61 4.25 3.19% 50.86% Housing Finance 34,051 9.72 9.42 0.97% 30.83% Vehicle Finance 2,16,456 5.
Slide 20: Asset Quality Trend
Asset Quality Trend 950 3.95% 5.0 0% 850 3.82% 4.0 0% 750 3.46% 2.60% 2.60% 2.07% 650 3.0 0% 550 1.93% 1.73% 1.12% 2.0 0% 1.14% 450 350 1.0 0% 250 0.0 0% 150 856 441 870 431 861 423 724 312 770 325 50 -1.00% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 GNPA (Rs. Cr) NNPA (Rs. Cr) GNPA % NNPA % GNPA Movement (
Slide 21: Liabilities & Branch Banking
Liabilities & Branch Banking 21
Slide 22: Deposits Evolution
Deposits Evolution CA SA CASA TD CASA+TD as on 30 June 2023 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 841 9,801 10,642 17,067 27,709 as a % of total borrowings (Rs. 32,991Cr) 3% 30% 32% 52% 84% as a % of total deposits (Rs. 27,709 Cr) 3%
Slide 23: Customer Deposit Profile
Customer Deposit Profile Elite Book (Rs. Cr) Savings Slab Wise (%) Deposit Category 4% 8% 6% OTHERS 8% 12,617 Upto 1 Lac 11,071 11,550 10,122 1 Lac to 1 Cr 8,988 21% 1 Cr to 10 Cr TRUSTS 3% 10 Cr to 100 Cr 61% 100 Cr + GOVT./LOCAL Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 BODIES 6% Retail & Bulk TD Mix Ter
Slide 24: Funding Profile
Funding Profile Funding Profile Mix In Rs Cr June 2022 Mar 2023 June 2023 2% 5% TD 9,838 14,649 17,067 CASA Refinance 2,299 2,974 2,971 9% 32% TD CASA 10,514 10,700 10,642 Refinance Sub Debt 150 - - IBPC IBPC 795 1650 1,630 Others 52% Others (Repo & Market Repo) - - 681 Total Borrowings 23,596 29,97
Slide 25: Treasury Update
Treasury Update The Bank’s total investment portfolio of Rs. 7,191 Crore comprises of SLR and Non-SLR securities Category (Rs. Cr) Book Value SLR 7,148 Non SLR 43 Total 7,191 Borrowings & Liquidity • The Bank’s Certificate of Deposit (CD) programme has highest rating at A1+ from CRISIL, CARE and Ind
Slide 26: Digital Banking
Digital Banking BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 27: Digital Banking – Key Highlights
Digital Banking – Key Highlights Neo Banking Digital Products overview for Q1FY24 Total Deposits Equitas Selfe • 27K+ Transactions Own digital platform Prepaid Cards • 55 Crs+ Txn value processed Rs. 705 Crs • 41 Lacs+ Transactions Total Deposits Micro ATM • 1425 Crs + Txn value processed • 22 K+ ne
Slide 28: Financials
Financials BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 29: Balance Sheet
Balance Sheet Particulars (in Rs Cr) June-23 June-22 YoY % Mar-23 QoQ% Capital & Liabilities Capital 1,113 1,253 -11% 1,111 0% Reserves & Surplus 4,247 3,095 37% 4,047 5% Networth 5,360 4,348 23% 5,158 4% Deposits 27,709 20,352 36% 25,349 9% Borrowings 3,652 2,449 49% 2,974 23% Other Liabilities & P
Slide 30: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q1FY24 Q1FY23 YoY% Q4FY23 QoQ% Interest Income from Loans 1,142 854 34% 1,047 9% Income on Investments 108 62 76% 101 8% Interest on balances with Reserve Bank of India and other 3 24 -85% 8 -57% inter bank funds Total Interest Income 1,254 940 33% 1,156
Slide 31: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q1FY24 Q1FY23 YoY% Q4FY23 QoQ% Net Income 893 680 31% 922 -3% Employee Cost 328 226 45% 304 8% Opex* 253 187 35% 232 9% Total Operating Expenditure 581 413 41% 536 8% PBT before provision & Write-off 312 268 16% 386 -19% Credit Cost 60 141 -58% 85 -30% Pr
Slide 32: 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% 1.89% 7.34% 9.00% 1.70% 6.58% 6.38% 5.52% 6.00% 6.34% 1.45% 1.39% 1.10% 8.55% 8.54% 8.44% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 C
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 33
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