Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q4 FY2025 Earnings Presentation
51 slides from Equitas Small Finance Bank's earnings presentation, April 2025
Slide 1: Investor Presentation Q4FY25
Investor Presentation Q4FY25
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 4. Asset Quality 5. Liabilities & Branch Banking 6. Financials 7. Other Updates 8. Beyond Banking 3
Slide 4: Key Highlights
(Be) Equitas Equitas Small Finance Bank Key Highlights
Slide 5: Snapshot
Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: Total Deposits: PAT for Q4FY25: 18 States and UTs Rs. ^37,986 Cr [Rs. 34,337 Cr] Rs. 43,107 Cr [Rs. 36,129 Cr] Rs. 42 Cr [Rs. 208 Cr] SBL - 43%, VF - 25%, CASA – 29%, TD – 71% MFI - 12%, HF - 13% MSE - 4%, NBFC - 1% Di
Slide 6: 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 7: 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 8: Road to profitability improvement
Road to profitability improvement Gross Asset Quality Slippages Q1FY25 Q2FY25 Q3FY25 Q4FY25 CV 7.52% 9.38% 9.62% 6.27% • We are seeing sequential improvement in micro finance collections indicating the asset quality MF 5.43% 8.67% 14.83% 14.37% cycle may turn positive by Q3FY26; Impact of TN debt co
Slide 9: Road to profitability improvement
Road to profitability improvement Operating Ratios • We are focusing on growth in secured loans with comparable yields to Microfinance (like Micro LAP, Used Vehicle loans) to support margins – The volatility in portfolio quality should reduce going forward. • Expenditure in long term strategic initi
Slide 10: Impact of Interest rate cycles
Impact of Interest rate cycles NIM declined largely due to the reduction in MFI portfolio 9.05% 9.01% 9.10% 9.00% 8.76% 8.43% 8.37% 8.17% 7.97% 7.69% 7.49% 7.46% 7.50% 7.54% 7.36% 7.44% 7.39% 7.21% 7.13% 6.94% 6.61% 6.41% 6.20% 6.25% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.25% 6.25% 6% 5.9
Slide 11: Key Highlights
Key Highlights Assets • Gross Advances growth remained muted at 11% YoY and 2% QoQ as Microfinance loan book contracts • Non MFI book grew 19% YoY, led by 25% growth in SBL over previous year. Within SBL , MLAP witnessed strong growth of 50% YoY. • Used Car Advances closed at Rs. 1873 Crs, registere
Slide 12: Key Highlights
Key Highlights Liabilities • Overall deposits grew by 19% YoY & 6% QoQ led by strong growth in Retail TD of 25% YoY • CASA ratio stable at 29%; CA balances grew 36% YoY • Total Retail Deposits (Retail TD+CASA) forms 72% of the overall deposits • CD ratio improved to 85.65% in Q4FY25 as compared to 8
Slide 13: Highlights
Highlights Asset Quality & Provisioning • Gross slippages for MFI remained stable at 14.37% despite crisis in Karnataka; similarly, Gross slippages for VF improved by ~335 bps sequentially. • Net slippages remains flat at 3.16% in Q4FY25 as compared to 3.15% in Q3FY25. Gross Slippages improved by 56
Slide 14: Financial Performance – Quarterly Trends
Financial Performance – Quarterly Trends 14
Slide 15: Key Ratios
Key Ratios Daily Avg Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 7.44% 7.46% 7.50% 7.49% 7.54% 8.17% 7.97% 7.69% 5.83% 5.70% 5.74% 5.77% 5.68% 7.39% 1.91% 7.13% 0.53% 0.22% 0.11% 0.32% Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4
Slide 16: Income Evolution
Income Evolution Net Income Evolution (Rs. Cr) PPoP / Assets (%) 786 802 802 818 829 3.45% 2.97% 2.94% 2.68% ^ 229 232 2.40% 222 192 218 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 NII Other Income (Net) Other Income [Net] Contribution (%) Liability Fee Income (Rs .Cr) TPP
Slide 17: Opex evolution
Opex evolution Rs. Cr Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Employee expenses 363 375 402 425 418 Other expenses (net of digital expenses) 234 243 245 253 279 Depreciation 37 36 34 39 39 Total Operating expenses 634 654 681 717 736 No. of employees 22,854 22,585 23,233 24,238 25,409 Cost to Income 70.2
Slide 18: Advances
Equitas Small Finance Bank Advances
Slide 19: Advances evolution
Advances evolution Rs Cr Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 YoY % Contribution % Micro Finance & Micro Loans (MFI)* 6265 5973 5636 5,370 4,527 -28% 12% Small Business Loans (SBL) 13152 13747 14678 15,564 16,383 25% 43% Housing Finance 4184 4342 4389 4,565 4,769 14% 13% Vehicle Finance 8324 8472 8877
Slide 20: Disbursements evolution
Disbursements evolution Rs Cr Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 YoY % Micro Finance & Micro Loans 1,466 1,035 949 1,145 355 -76% Small Business Loans (SBL) 1,627 1,305 1,591 1,713 1,684 4% Housing Finance 470 317 383 366 417 -11% Vehicle Finance 1,254 1,061 1,485 1,512 1,321 5% Used CV 637 572 887
Slide 21: 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 0.54 0.31 5.24% 87.27% Small Business Loans (SBL) 3,12,545 7.35 5.20 2.54% 25.97% Housing Finance 43,712 11.44 10.12 1.38% 27.92% Vehicle Fin
Slide 22: Asset Quality
(Be) Equitas Equitas Small Finance Bank Asset Quality
Slide 23: Asset Quality Trend
Asset Quality Trend GNPA Movement (Rs. Cr) Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 6.50% Opening GNPA Balance (A) 750.26 821.28 889.04 1022.82 1071.87 5.94% 5.80% Net Slippages (B) 138.41 204.72 288.92 283.85 295.31 - Net Slippages MFI Book 63.27 77.97 124.12 199.49 172.44 4.34% 4.49% - Net Slippages Non
Slide 24: Contd…
Contd… • Positive signs of improvement seen in SMA-0 across portfolios. 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% 4.51% 4.34% 3.37% 3.77% 3.61% 3.89% 3.44% 3.65% 2.73% 2.51% 2.76% 2.69% 2.87% 2.52% 2.80% 2.17% 2.69% 2.65% 2.30% 2.04% 2.03
Slide 25: 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% 25% 67.71%* 68.28% 66.83% Unsecured 25% 87% Doubtful-1 Secured 25% 57% 100 Unsecured 100% 100% 56.06% Doubtful-2 Secured 40% 61% Unsecured 10
Slide 26: Liabilities & Branch Banking
Liabilities & Branch Banking 26
Slide 27: Deposits Evolution
Deposits Evolution CA SA CASA TD CASA+TD as on 31st Mar 2025 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 1648 10,762 12,410 30,696 43,107 as a % of total borrowings (Rs. 45,244 Cr) 4% 24% 27% 68% 95% as a % of total deposits (Rs. 43,107 Cr
Slide 28: Customer Deposit Profile
Customer Deposit Profile Elite Book (Rs. Cr) Savings Slab Wise (%) Deposit Category 13% 8% Upto 1 Lac OTHERS 8% 16,375 16,516 17,241 14,921 15,635 7% 1 Lac to 1 Cr 1 Cr to 3 Cr 6% TRUSTS 2% 3 Cr to 10 Cr 10% 10 Cr to 100 Cr 56% 100 Cr + GOVT./LOCAL Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 BODIES 8% Retail
Slide 29: Funding Profile
Funding Profile Funding Profile Mix Book Value (In Rs Cr) Q2FY25 Q3FY25 Q4FY25 TD 25,040 26,888 27,969 4% 2% Certificate of Deposits 2,635 2,182 2,727 1% CASA Refinance 1,085 1,927 1,637 27% TD* Tier – II Bond 0 500 500 Refinance CASA 12,184 11,668 12,410 Tier-II Bond Securitisation/Assignment Secur
Slide 30: Treasury Update
Treasury Update The Bank’s total net Investment portfolio of Rs. 9,289 Crore comprises of SLR and Non-SLR securities Category ( In Rs. Cr) Q4FY25 SLR 8,446 Non SLR 843 Total 9,289 Borrowings & Liquidity • The Bank’s Certificate of Deposits (CD) programme has highest rating at A1+ from India Ratings,
Slide 31: Financials
(Be) Equitas Equitas Small Finance Bank Financials
Slide 32: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Mar-25 Mar-24 YoY % Dec-24 QoQ% Capital & Liabilities Capital 1,140 1135 0% 1,139 0% Reserves & Surplus 4,933 4834 2% 4,868 1% Networth 6,073 5969 2% 6,007 1% Deposits 43,107 36129 19% 40,738 6% Borrowings 2,137 1788 20% 2,427 -12% Other Liabilities & Provision 1
Slide 33: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q4FY25 Q4FY24 YoY% Q3FY25 QoQ% FY25 FY24 YoY% Interest Income from Loans 1,448 1,279 13% 1,425 2% 5,563 4,921 13% Income on Investments 159 157 2% 164 -3% 647 540 20% Interest on balances with RBI and other inter bank funds 37 9 325% 23 59% 101 26 293% To
Slide 34: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q4FY25 Q4FY24 YoY% Q3FY25 QoQ% FY25 FY24 YoY% Net Income 1,047 1,008 4% 1,050 0% 4,123 3,799 9% Employee Cost 418 363 15% 425 -2% 1,621 1,369 18% Opex 318 270 18% 292 9% 1,168 1,052 11% Total Operating Expenditure 736 634 16% 717 3% 2,789 2,421 15% PBT be
Slide 35: GNPA Movement
GNPA Movement 1,25 0 2.95% 2.97% 2.89% 3.5 0% 2.52% 2.67% 3.0 0% 1,05 0 2.5 0% 850 2.0 0% 1.12% 0.97% 0.96% 0.98% 1.5 0% 650 0.81% 1.0 0% 450 0.5 0% 0.0 0% 250 821 361 889 264 1,023 330 1,072 340 1,068 354 -0.50% 50 -1.00% Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 GNPA (Rs. Cr) NNPA (Rs. Cr) GNPA % NNPA %
Slide 36: Key Ratios - Annual
Key Ratios - Annual Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 8.06% 9.11% 9.00% 8.44% 8.54% 8.36% 6.75% 7.34% 7.26% 7.50% 6.34% 6.05% 2.00% 6.58% 6.38% 7.51% 5.52% 6.00% 5.71% 1.70% 1.89% 1.39% 1.10% 0.30% FY20 FY21 FY22 FY23 FY24 FY25 FY20 FY21 FY22 FY23 FY24 FY25 FY20 FY21 FY22 FY
Slide 37: Other Updates
(Be) Equitas Equitas Small Finance Bank Other Updates
Slide 38: 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. ~₹ 1250 Crs* of Loans Disbursed *3 Lakh+ Registrations *5 Lakh+ Downlo
Slide 39: 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 40: 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 40
Slide 41: 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 42: Building the Equitas Brand
Building the Equitas Brand
Slide 43: 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 44: Our Presence
Our Presence Map not to scale . Districts present in | Branch network States Advances (%) Deposits (%) Andhra Pradesh 5% 3% Chandigarh - 2% Chhattisgarh 1% 2% 27 Punjab Himachal Pradesh 3 1 Chandigarh Uttarakhand 2 Delhi 2% 8% 30 Haryana Gujarat 4% 6% Delhi 17 Haryana 2% 4% 68 Rajasthan Himachal Pra
Slide 45: 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 43% of our entire advance practices. portfolio • Focusing
Slide 46: Contd…
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 47: Contd…
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 48: 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 49: Beyond Banking
(Be) Equitas Equitas Small Finance Bank Beyond Banking
Slide 50: CSR Initiatives
CSR Initiatives SKILL TRAINING Women Trained: Inception Year - 2008 Q4FY25 - 8763 CHILDREN SCHOLARSHIP FREE CATARACT SURGERIES Cumulative - 705588 Beneficiaries:- Beneficiaries:- Q4FY25 – 110 Q4FY25 – 1567 Cumulative - 2729 Cumulative - 41317 DIFFERENTLY ABLED WOMEN EMPOWERMENT Financial help: Exhib
Slide 51: 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 51
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