Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q3 FY2025 Earnings Presentation
53 slides from Equitas Small Finance Bank's earnings presentation, Jan 31, 2025
Slide 1: Cover letter to stock exchanges
January 31, 2025 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 and 976218 Dear Sirs / Madam Sub: Submission of Investors presentation Pursuant t
Slide 2: Investor Presentation Q3FY25
Investor Presentation Q3FY25
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 4. Asset Quality 5. Liabilities & Branch Banking 6. Financials 7. Other Updates 8. Beyond Banking 3
Slide 5: Key Highlights
(Be) Equitas Equitas Small Finance Bank Key Highlights
Slide 6: Snapshot
Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: Total Deposits: PAT for Q3FY25: 18 States and UTs Rs. ^37,344 Cr [Rs. 32,776 Cr] Rs. 40,738 Cr [Rs. 32,385 Cr] Rs. 66 Cr [Rs. 202 Cr] SBL - 42%, VF - 25%, CASA – 29%, TD – 71% MFI - 14%, HF - 12% MSE - 4%, NBFC - 2% Di
Slide 7: Equitas - Stable, Sustainable & Scalable Model
Equitas - Stable, Sustainable & Scalable Model Strength in the Biz. Model Factors impacting stability Building Scalability • Robust growth through well • Recurring stress in MFI lending • Reducing exposure to MFI – Journey diversified secured loan portfolio environment. started from 2010 • Time test
Slide 8: Strategic Initiatives
Strategic Initiatives Loan Origination CRM Super App Theme: Consolidation Theme: Upgrade & Beyond Theme: Personalisation Consolidation of various product specific Super App for customers built on a state of the origination systems into a state of the art, Enterprise CRM application to drive lead to
Slide 9: Delivering on Liability 2.0 Strategy
Delivering on Liability 2.0 Strategy Personal Loan Liability 2.0 Strategy * aims to create a competitive edge by: a) reducing the cost of mobilizing deposits through efficiency and b) narrowing the cost of funds compared to large universal banks LAP Credit and lower than AAA NBFCs. Card Investments
Slide 10: Stabilizing Yields while Downsizing MFI
Stabilizing Yields while Downsizing MFI 26% 23% • While MFI mix has dropped by 19% ~46%, the portfolio yields has 18% 19% 18% dropped by ~13%. 19.13% 18.90% 18.66% 17.62% 17.29% 14% 16.99% • The Bank aims to further reduce 16.60% MFI mix, and focus on growing secured loan portfolio to the same custo
Slide 11: Key Highlights - Assets
Key Highlights Assets • Gross Advances growth remained stable at 14% YoY and 4% QoQ aided by diversified loan book • Non MFI book grew 20% YoY, led by 27% growth in SBL over previous year. Within SBL , MLAP witnessed strong growth of 13% QoQ. Disbursement in MLAP posted a robust growth YoY • The ban
Slide 12: Key Highlights - Liabilities
Key Highlights Liabilities • Overall deposits grew by 26% YoY & 2% QoQ led by strong growth in Retail TD of 31% • CASA ratio stable at 29%; CA balances grew 56% YoY • SA costs drops by 13 bps QoQ during the quarter due to the recent revisions in SA rates during July’24 & Oct’24. Cost of SA during th
Slide 13: Highlights - Asset Quality, Profit & Loss
Highlights Asset Quality & Provisioning • Net slippages improved by 16 bps QoQ to 3.15% in Q3FY25 as compared to 3.31% in Q2FY25 • GNPA increased by 2 bps QoQ to 2.97% in Q3FY25 as compared to 2.95% in Q2FY25; including securitization book, GNPA would stand at 2.87% • NNPA improved by 1 bps QoQ to 0
Slide 14: Outlook
Outlook • Mfin Guardrails 2.0 has become operational from Jan-25. Overtime leveraging and related stress is expected to come down • At the current X bucket MFI collection efficiency, the credit cost for the first half of the next financial year is expected to remain higher than normal • However with
Slide 15: Financial Performance – Quarterly Trends
Financial Performance – Quarterly Trends
Slide 16: Key Ratios
Key Ratios Daily Avg Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 8.37% 7.36% 7.44% 7.46% 7.50% 7.49% 8.17% 7.97% 5.98% 5.83% 7.69% 5.70% 5.74% 5.77% 7.39% 1.98% 1.91% 0.53% 0.22% 0.11% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3
Slide 17: Income Evolution
Income Evolution Net Income Evolution (Rs. Cr) PPoP / Assets (%) 785 786 802 802 818 3.53% 3.45% 2.97% 2.94% ^222 229 232 185 192 2.68% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 NII Other Income (Net) Other Income [Net] Contribution (%) Liability Fee Income (Rs .Cr) TPP I
Slide 18: Opex evolution
Opex evolution Rs. Cr Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Employee expenses 346 363 375 402 425 Other expenses (net of digital expenses) 229 234 243 245 253 Depreciation 35 37 36 34 39 Total Operating expenses 610 634 654 681 717 No. of employees 21,679 22,854 22,585 23,233 24,238 Cost to Income 68.3
Slide 19: Advances
Equitas Small Finance Bank Advances
Slide 20: Advances evolution
Advances evolution Rs Cr Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 YoY % Contribution % Micro Finance & Micro Loans 6,056 6265 5973 5636 5,370 -11% 14% Small Business Loans (SBL) 12,285 13152 13747 14678 15,564 27% 42% Housing Finance 3,884 4184 4342 4389 4,565 18% 12% Vehicle Finance 8,093 8324 8472 8877
Slide 21: Disbursements evolution
Disbursements evolution Rs Cr Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 YoY % Micro Finance & Micro Loans 1,380 1,466 1,035 949 1,145 -17% Small Business Loans (SBL) 1,435 1,627 1,305 1,591 1,713 19% Housing Finance 439 470 317 383 366 -17% Vehicle Finance 1,239 1,254 1,061 1,485 1,512 22% Used CV 622 637
Slide 22: Segmental Details
Segmental Details Number of Live ATS @ ATS @ Product Segment GNPA (%) PCR (%) Loans Disbursement (Lacs) Portfolio (Lacs) Micro Finance & Micro Loans 16,86,208 0.61 0.32 5.62% 77.11% Small Business Loans (SBL) 3,06,038 7.90 5.04 2.34% 27.03% Housing Finance 41,960 12.58 10.01 1.36% 29.32% Vehicle Fin
Slide 23: Asset Quality
(Be) Equitas Equitas Small Finance Bank Asset Quality
Slide 24: Asset Quality Trend
Asset Quality Trend GNPA Movement (Rs. Cr) Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 6.50% Opening GNPA Balance (A) 660.50 750.26 821.28 889.04 1022.82 5.80% Net Slippages (B) 139.71 138.41 204.72 288.92 283.85 - Net Slippages MFI Book 47.36 63.27 77.97 124.12 199.49 4.34% 4.49% 4.00% - Net Slippages Non M
Slide 25: Provisioning as of Dec-24
Provisioning as of Dec-24 Amount In Rs Cr Segment GNPA% GNPA PCR % PCR Amount NNPA % NNPA MFI 5.62% 302 77.11% 233 1.35% 69 Non MFI 2.50% 770 41.43% 319 1.48% 451 Floating Provision 180 (180) Bank 2.97% 1072 732 0.96% 340 • In Q2FY25 the Bank had created an additional stress sector provision of Rs.1
Slide 26: Contd… DPD trends
Contd… • Positive signs of improvement seen in SMA-0 & SMA-1 across portfolios. • 1-90 DPD improved by 47 bps QoQ for the Bank DPD - MICROFINANCE DPD – NON MFI DPD - BANK SMA-0 SMA-1 SMA-2 SMA-0 SMA-1 SMA-2 SMA-0 SMA-1 SMA-2 4.13% 2.73% 4.51% 4.34% 3.77% 3.61% 3.89% 2.17% 2.04% 2.03% 2.69% 2.87% 1.7
Slide 27: Strengthening Provision Coverage
Strengthening Provision Coverage Asset Classification Nature Provisioning Provisioning PCR MOVEMENT as per IRAC as per Equitas 70.29% Sub-standard Secured 15% 24% 67.71%* 68.28% Unsecured 25% 77% Doubtful-1 Secured 25% 62% 100 Unsecured 100% 100% 55.97% 56.06% Doubtful-2 Secured 40% 69% Unsecured 10
Slide 28: Liabilities & Branch Banking
Liabilities & Branch Banking
Slide 29: Deposits Evolution
Deposits Evolution CA SA CASA TD CASA+TD as on 31 Dec 2024 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 1492 10,176 11,668 29,070 40,738 as a % of total borrowings (Rs. 43,165 Cr) 3% 24% 27% 67% 94% as a % of total deposits (Rs. 40,738 Cr)
Slide 30: Customer Deposit Profile
Customer Deposit Profile Elite Book (Rs. Cr) Savings Slab Wise (%) Deposit Category 10% 8% Upto 1 Lac OTHERS 9% 16,375 16,516 6% 14,921 15,635 1 Lac to 1 Cr 14,156 6% 1 Cr to 3 Cr 3 Cr to 10 Cr TRUSTS 2% 10% 10 Cr to 100 Cr 60% 100 Cr + GOVT./LOCAL Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 BODIES 7% Retail
Slide 31: Funding Profile
Funding Profile Funding Profile Mix Book Value (In Rs Cr) Q1FY25 Q2FY25 Q3FY25 TD 23,545 25,040 26,888 4% 3% Certificate of Deposits 2255 2635 2182 1% CASA Refinance 1,403 1,085 1,927 26% TD* Tier – II Bond 0 0 500 Refinance CASA 11,724 12,184 11,668 Tier-II Bond Securitisation/Assignment Securitiza
Slide 32: Treasury Update
Treasury Update The Bank’s total net Investment portfolio of Rs. 9,415 Crore comprises of SLR and Non-SLR securities Category ( In Rs. Cr) Q3FY25 SLR 8,316 Non SLR 1,099 Total 9,415 Borrowings & Liquidity • The Bank’s Certificate of Deposits (CD) programme has highest rating at A1+ from India Rating
Slide 33: Financials
(Be) Equitas Equitas Small Finance Bank Financials
Slide 34: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Dec-24 Dec-23 YoY % Sep-24 QoQ% Capital & Liabilities Capital 1,139 1,131 1% 1,138 0% Reserves & Surplus 4,868 4,584 6% 4,809 1% Networth 6,007 5,715 5% 5,947 1% Deposits 40,738 32,385 26% 39,859 2% Borrowings 2,427 2,113 15% 1,085 124% Other Liabilities & Provis
Slide 35: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q3FY25 Q3FY24 YoY% Q2FY25 QoQ% Interest Income from Loans 1,425 1,274 12% 1,366 4% Income on Investments 164 149 10% 170 -4% Interest on balances with RBI and other inter bank funds 23 6 302% 19 23% Total Interest Income 1,612 1,429 13% 1,555 4% Finance C
Slide 36: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q3FY25 Q3FY24 YoY% Q2FY25 QoQ% Net Income 1,050 970 8% 1,031 2% Employee Cost 425 346 23% 402 6% Opex 292 264 10% 279 4% Total Operating Expenditure 717 610 18% 681 5% PBT before provision & Write-off 333 360 -8% 350 -5% Credit Cost 243 84 188% 330 -26% P
Slide 37: GNPA Movement
GNPA Movement 1,25 0 2.95% 2.97% 3.5 0% 2.38% 2.52% 2.67% 3.0 0% 1,05 0 2.5 0% 850 2.0 0% 1.06% 1.12% 0.97% 0.96% 1.5 0% 650 0.81% 1.0 0% 450 0.5 0% 0.0 0% 250 750 330 821 361 889 264 1,023 330 1,072 340 -0.50% 50 -1.00% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 GNPA (Rs. Cr) NNPA (Rs. Cr) GNPA % NNPA % GN
Slide 38: Key Ratios - Annual
Key Ratios - Annual Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 8.06% 9.11% 9.00% 6.75% 7.34% 7.26% 7.48% 6.34% 6.05% 2.00% 6.58% 6.38% 8.44% 8.54% 5.52% 6.00% 5.72% 1.70% 1.89% 8.36% 1.39% 7.64% 1.10% 0.29% FY20 FY21 FY22 FY23 FY24 9MFY25 FY20 FY21 FY22 FY23 FY24 9MFY25 FY20 FY21 FY2
Slide 39: Other Updates
(Be) Equitas Equitas Small Finance Bank Other Updates
Slide 40: Equitas Selfe Loans
Equitas Selfe Loans Selfe Loans - One App, Many Loans… The go to App targeted at tiny entrepreneurs across cities and towns for loan enquiries. Built with the latest technology architecture to support scale and agile development. ~₹ 960 Crs* of Loans Disbursed *3 Lakh+ Registrations *5 Lakh+ Downloa
Slide 41: Loan Origination Customized for Informal Lending
Loan Origination Customized for Informal Lending WORKFLOW Lead LOGIN Channeling from Selfe • Customer onboarding via E-KYC Capability to App / Direct host 2500 Independence • Bureau score Generation concurrent between • Customer 360O & Loan 360O users; Scope Credit & Sales • RE/RC Checks to increase
Slide 42: Equitas Mobile Banking App 2.0
Equitas Mobile Banking App 2.0 Next Generation Cloud Native, future ready platform with: Completely New User Interface, Hassle free Experience, Built with enhanced security, and many more… • New UPI Platform • BBPS • Face Recognition Integrations • App Protect • User Experior • ASBA IPO
Slide 43: Insta banking Services – Tech Led CX
Insta banking Services – Tech Led CX Insta Banking aims to eliminate the use of paper based requests by customers by leveraging micro service based technology, biometrics, etc. Over 40 service journeys envisaged Leveraging Aadhar biometric for authentication Insta Banking Tab/own device based servic
Slide 44: Building the Equitas Brand
Building the Equitas Brand
Slide 45: A Stable, Sustainable & Scalable Bank
Our Philosophy: A Stable, Sustainable Customer Pride of Performan & Scalable Bank First ce Core Fair and Our Mission: To create the most Values Transparent valuable bank for all stakeholders through Respect Ownership happy employees for People
Slide 46: Our Presence
Our Presence Map not to scale . Districts present in | Branch network States Advances (%) Deposits (%) Andhra Pradesh 5% 3% Chandigarh - 3% Chhattisgarh 1% 2% 27 Punjab Himachal Pradesh 3 1 Chandigarh Uttarakhand 2 Delhi 2% 9% 30 Haryana Gujarat 4% 6% Delhi 17 Haryana 2% 4% 68 Rajasthan Himachal Pra
Slide 47: Product Suite - Assets
Product Suite - Assets MicroFinance & Micro Loans Small Business Loans (SBL) • Addressing the unbanked and underserved market • Small Business Loans (SBL) is the Bank’s flagship segments with fair and transparent lending product, representing 42% of our entire advance practices. portfolio • Focusing
Slide 48: Contd… Housing Finance and Vehicle Finance
Contd… Housing Finance Vehicle Finance • Loans are specifically designed to cater to • Portfolio comprises of tailor-made loans individuals aiming to purchase their first affordable empowering skilled drivers to become vehicle housing property owners and business operators, thereby elevating their s
Slide 49: Contd… MSE Finance and NBFC
Contd… MSE Finance NBFC • Focusing on the organised segment of the • The Bank offers Term Loans to Non-Banking economy by providing working capital loans Financial Companies (NBFCs), enabling them to (CCOD) and term loans for capex. offer retail customers services such as microfinance, vehicle finan
Slide 50: Product Suite - Liabilities
Product Suite - Liabilities The Bank through its liability products serves a wide range of mass and mass affluent clientele via physical and digital channels… Physical Channels Current / Mutual Funds Savings A/C • Banking Outlets • ATMs Term Deposits Insurance Digital Channels (FD/RD) Pool of • Mobi
Slide 51: Beyond Banking
(Be) Equitas Equitas Small Finance Bank Beyond Banking
Slide 52: CSR Initiatives
CSR Initiatives SKILL TRAINING Women Trained: Inception Year - 2008 Q3FY25 - 11881 CHILDREN SCHOLARSHIP FREE CATARACT SURGERIES Cumulative - 696825 Beneficiaries:- Beneficiaries:- Q3FY25 – Nil Q3FY25 – 1043 Cumulative - 2619 Cumulative - 39750 DIFFERENTLY ABLED WOMEN EMPOWERMENT Financial help: Exhi
Slide 53: Investor Relations
Investor Relations Equitas Small Finance Bank Limited Website – https://ir.equitasbank.com/ Email – ir@equitasbank.com 4th Floor, Phase II, Spencer Plaza, No. 769, Mount Road, Anna Salai, Chennai 600 002, Tamil Nadu 52
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