Esaf Small Finance Bank Limited · NSE:ESAFSFB
Esaf Small Finance Bank — Q2 FY2025 Earnings Presentation
37 slides from Esaf Small Finance Bank's earnings presentation, Nov 14, 2024
Slide 1: Stock exchange intimation letter
Ref No: 08/SE/CS/NOV/2024-25 Date: November 14, 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),
Slide 2: Investor Presentation | November 2024
Investor Presentation | November 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 September 30, 2024 o ESAF Small Finance Bank Limited commenced its operation on 10th March 2017 & became Scheduled ESAF Financial Kadambelil Paul Dia Vikas* commercial bank on December 2018. Holdings Private Thomas (19.99%) Limited o Mr. Kadambelil Paul Thomas, and E
Slide 6: Business Snapshot
Business Snapshot Other Touch Points 89.4 lakh Total Customers 24 States and 2 UTs 1,097 Customer Service Operational 756 Banking Outlets 12,782 Employees 8,834 Total Customer Centers 646 ATMs 35 Institutional Business Touch Points 5,765 Banking Agents Correspondents 570 Business Facilitators Total
Slide 7: Enhancing Risk Management
Enhancing Risk Management Pre -Transition - Business Distribution (EOD 30th June 2024) Post-Transition - Business Distribution (as on 30th Sep 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,
Slide 8: Extensive Geographical Footprint
Extensive Geographical Footprint ESAF SFB has a large national footprint with presence in 24 states & 2 UTs Banking Outlets (Nos.) Split of banking outlets across locations Name of the State/ BOs ATMs CSC Ladakh Union Territory Andhra Pradesh 6 5 34 10% Jammu & Assam 5 2 17 Kashmir 11% Himachal Prad
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) 23.1 24.0 26.0 26.0 25.4 4.4 5.2 7.0 6.0 5.4 19,659 19,664 5,266 19,216 1,045 1,038 257 18,149 227 234 1,020 72 17,490 921 1,018 303 304 935 849 231 1,138 4,503 158 698 135 674 2,889 63 3,240 206 4,058 2,513 3,7
Slide 11: Key Profitability Metrics
Key Profitability Metrics Net Interest Income (₹ Crs) Non-Interest Income (₹ Crs) 597 597 591 588 150 540 120 115 97 79 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Pre-Provision Operating Profit (₹ Crs) Profit /Loss After Tax (₹ Crs) 290 288 285 140 254 112 63 43 143 Q2FY24
Slide 12: Key Profitability Ratios
Key Profitability Ratios Margins* (%) Cost to Income (%) 21.1% 21.1% 20.6% 20.2% 74.7% 19.7% 64.0% 56.4% 57.6% 58.6% 11.0% 10.6% 10.0% 9.4% 8.6% 7.3% 7.3% 7.4% 7.4% 7.7% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Yield on Advances NIMs Cost of Funds ROA* (%) ROE* (%) 2.5%
Slide 13: Asset Quality
Asset Quality GNPA & NNPA (%) PCR (%) 70.5% 73.7% 6.6% 6.9% 65.2% 61.9% 59.5% 4.8% 4.2% 3.2% 2.9% 2.6% 2.3% 2.2% 1.2% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 GNPA NNPA NPA Movement (₹ Crs) Description Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Opening balance of Gross NPAs at t
Slide 14: Capital Adequacy
Capital Adequacy Total Assets & Risk Weighted Assets (₹ Crs) Capital Adequacy (%) 26,835 26,646 26,087 23.3% 23.5% 23.2% 24,300 22,368 20.6% 21.0% 19.7% 20.1% 19.6% 18.9% 18.2% 12,684 12,464 12,002 11,669 10,085 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Total Assets Risk
Slide 15: Key Balance Sheet Metrics
Key Balance Sheet Metrics Shareholders Funds (₹ Crs) Gross Advances (₹ Crs) 18,772 18,783 18,340 2,482 2,486 2,558 17,153 2,333 15,123 1,979 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Total Deposits (₹ Crs) CASA Deposits (₹ Crs) 21,613 5,025 19,868 20,887 4,649 18,860 4,17
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 Digital Banking Banking Outlets o Application (compatible with Android and iOS) that connects with the National o Provision for full-fledged Payments Corporation of India’s unified o Multiple channels for servicing the banking product & services payments interface platf
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 September 30, 2024, ESAF SFB had over 55.6 lakh customers with Micro Loans, the majority of whom were women Growth in Gross Advances (₹ Crs) Continued focus on Loan Diversification 19% 25% 30% 38% 18,772 3% 4% 5% 5% 18,340 1% 4% 1% 5% 1% 6% 2% 9% 3% 3% 1
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) 21,613 94% 91% 92% 92% 19,868 15.9% 14,666 69% 18,368 19,891 12,815 9.8% 7.3% 7.7% 12,046 13,346 65% Mar-22 Mar-23 Mar-24 Sep-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 Assets 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 FIBD 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 Devel
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 Target new & existing customers for o Micro Loan Business: o Open additional Branches, ATMs CASA, fixed deposits and recurring • Cross selling and up-selling to its customer base along with engaging existing
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 – Q2 & H1FY25
Profit & Loss Statement – Q2 & H1FY25 Particulars (₹ Crs) Q2FY25 Q2 FY24 Y-o-Y Q1 FY25 Q-o-Q H1FY25 H1FY24 Y-o-Y Interest Income 996.38 943.35 5.6% 1,022.45 -2.5% 2,018.83 1,842.09 9.6% Interest Expense 456.06 346.78 31.5% 434.10 5.1% 890.17 660.08 34.9% Net Interest Income 540.32 596.57 -9.4% 588.3
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) Sep-24 Mar-24 Mar-23 Mar-22 CAPITAL AND LIABILITIES Capital 514.87 514.78 449.47 449.47 Employee Stock Option Outstanding 6.94 5.68 5.88 4.81 Reserves and Surplus 1,818.12 1,971.33 1,259.66 957.32 Deposits 21,613.50 19,867.80 14,665.63 12,815.07 Borrowings 2,141.13
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 Won the Best Performance on Year – 2019’ award 2020’ for outstanding Award 2021 in the category Year’
Slide 37: ESAF Small Finance Bank Limited contact details
COMPANY : ESAF Small Finance Bank Limited Mr. Ranjith Raj P investor.relations@esafbank.com Email: investor.relations@esafbank.com www.esafbank.com Website: www.esafbank.com CIN : U65990KL2016PLC045669 INVESTOR RELATIONS ADVISORS : Orient Capital (a division of Link Group) Mr. Nikunj Jain Mr. Viral
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