Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q1 FY2025 Earnings Presentation
36 slides from Equitas Small Finance Bank's earnings presentation, Jul 26, 2024
Slide 1: Submission of Investors presentation to stock exchanges
July 26, 2024 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 presentation Pursuant to Regulation 30 and oth
Slide 2: Investor Presentation Q1FY25
Investor Presentation Q1FY25 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. Long Term Initiatives 3. Financial Performance 4. Advances 5. Liabilities & Branch Banking 6. Financials 7. Beyond Banking 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 Q1FY25: 18 States and UTs Rs. ^34,871 Cr [Rs. 29,601 Cr] Rs. 37,524 Cr [Rs. 27,709 Cr] Rs. 26 Cr [Rs. 191 Cr] SBL - 39%, VF - 24%, CASA – 31%, TD – 69% MFI - 17%, HF - 12% MSE - 4%, NBFC - 2% Di
Slide 7: Key Highlights
Key Highlights Assets • Gross Advances growth at 18% YoY and 2% QoQ. Non MF book grew 21% YoY, led by 35% growth in Housing Finance and 27% growth in SBL. • Disbursement growth of 78% YoY in Micro-LAP (part of SBL) as portfolio indicators turn favourable • New products scale up well. Merchant OD and
Slide 8: Key Highlights
Key Highlights Liabilities • Overall deposits grew by 35% YoY & 4% QoQ led by strong growth Retail TD of 47% • CASA ratio stable at 31%; CA balances grew 32% YoY • During the quarter 5 new liability branches opened in Gujarat, Delhi, Mumbai, Karnataka & Uttarakhand • Relationship value from “Elite”
Slide 9: Highlights
Highlights Asset Quality & Provisioning • GNPA increased by 7 bps YoY to 2.67% in Q1FY25 as compared to 2.60% in Q1FY24 ; including securitization book, GNPA would stand at 2.55% • NNPA improved by 31 bps YoY to 0.81% in Q1FY25 as compared to 1.12% in Q1FY24 • Gross Slippages Stands at 4.49%* for Q1
Slide 10: Long Term Initiatives – Annual Update
Long Term Initiatives – Annual Update 9
Slide 11: Loan Origination, CRM and Super App initiatives
Loan Origination CRM Super App Theme: Consolidation Theme: Upgrade Theme: Personalisation • Personal Loans & Credit card LOS • Development of Super App consolidation on single platform • Phase 1 of revamped CRM expected foundation nearing completion to go live during Q2FY25 underway • New Mobile App
Slide 12: Financial Performance – Quarterly Trends
Financial Performance – Quarterly Trends 11
Slide 13: Key Ratios
Key Ratios Daily Avg Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 8.76% 7.44% 7.46% 6.37% 7.21% 7.36% 8.43% 8.37% 8.17% 6.10% 5.98% 6.94% 5.83% 5.70% 7.97% 2.10% 2.03% 1.98% 1.91% 0.22% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1
Slide 14: Income Evolution
Income Evolution Net Income Evolution (Rs. Cr) PPoP / Assets (%) 766 785 786 802 743 3.53% 3.45% 3.42% 3.38% 2.97% ^ 222 150 161 185 192 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 NII Other Income (Net) Other Income [Net] Contribution (%) Liability Fee Income (Rs .Cr) TPP
Slide 15: Yield & Cost of Funds Trend
Yield & Cost of Funds Trend Yield & COF 18.77% 18.74% June Sept Dec March June 18.49% Particulars 2023 2023 2023 2024 2024 18.34% 18.30% 7.44% 7.46% CD Ratio % 100.95 94.52 91.49 86.98 86.75 7.21% 7.36% 6.94% CD Ratio % 90.22 86.47 84.97 82.03 83.01 (after reducing refinance borrowings from advances
Slide 16: Opex evolution
Opex evolution Rs. Cr Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Employee expenses 328 332 346 363 375 Other expenses (net of digital expenses) 224 232 229 234 243 Depreciation 29 33 35 37 36 Total Operating expenses 581 597 610 634 654 No. of employees 20,996 21,862 21,679 22,854 22,585 Cost to Income 65.7
Slide 17: Advances
Advances BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 18: Advances evolution
Advances evolution Rs Cr Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 YoY % Contribution % Micro Finance & Micro Loans 5,626 5,878 6,056 6265 5973 6% 17% Small Business Loans (SBL) 10,787 11,493 12,285 13152 13747 27% 39% Housing Finance 3,206 3,582 3,884 4184 4342 35% 12% Vehicle Finance 7,342 7,777 8,093 83
Slide 19: Disbursements evolution
Disbursements evolution Rs Cr Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 YoY % Micro Finance & Micro Loans 1,464 1,406 1,380 1,466 1,035 -29% Small Business Loans (SBL) 1,361 1,494 1,435 1,627 1,305 -4% Housing Finance 438 500 439 470 317 -28% Vehicle Finance 1,168 1,341 1,239 1,254 1,061 -9% Used CV 550 66
Slide 20: Segmental Details
Segmental Details Number of Live ATS @ ATS @ Product Segment GNPA (%) PCR (%) Loans Disbursement (Lacs) Portfolio (Lacs) Micro Finance 19,13,682 0.56 0.31 3.82% 69.45% Small Business Loans (SBL) 2,94,456 7.07 4.67 2.03% 28.18% Housing Finance 27,946 9.59 15.54 1.13% 31.43% Vehicle Finance 2,15,887 5
Slide 21: Asset Quality Trend
Asset Quality Trend 950 2.60% 2.38% 2.52% 2.67% 3.0 0% 850 2.12% 2.5 0% 750 2.0 0% 1.06% 1.12% 650 1.12% 0.91% 1.5 0% 550 0.81% 1.0 0% 450 0.5 0% 350 0.0 0% 250 770 325 660 279 750 330 821 361 889 264 -0.50% 150 50 -1.00% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 GNPA (Rs. Cr) NNPA (Rs. Cr) GNPA % NNPA % G
Slide 22: Strengthening Provision Coverage
Strengthening Provision Coverage Provisioning Provisioning PCR MOVEMENT Asset Classification Nature as per IRAC as per Equitas 70.29%* Sub-standard Secured 15% 25% Unsecured 25% 70% Doubtful-1 Secured 25% 64% 57.79% 57.72% 56.90% Unsecured 100% 100% 55.97% 56.06% Doubtful-2 Secured 40% 75% 50.49% 50
Slide 23: Liabilities & Branch Banking
Liabilities & Branch Banking 22
Slide 24: Deposits Evolution
Deposits Evolution CA SA CASA TD CASA+TD as on 30 Jun 2024 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 1173 10,551 11,724 ^25,800 37,524 as a % of total borrowings (Rs. 38,928 Cr) 3% 27% 30% 66% 96% as a % of total deposits (Rs. 37,524 Cr)
Slide 25: Customer Deposit Profile
Customer Deposit Profile Elite Book (Rs. Cr) Savings Slab Wise (%) Deposit Category 12% 7% OTHERS 8% 14,921 15,635 5% Upto 1 Lac 13,393 14,156 12,617 1 Lac to 1 Cr 1 Cr to 10 Cr 16% TRUSTS 3% 10 Cr to 100 Cr 59% 100 Cr + GOVT./LOCAL Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 BODIES 7% Retail & Bulk ^TD Mix
Slide 26: Funding Profile
Funding Profile Book Value (In Rs Cr) Q3FY24 Q4FY24 Q1FY25 Funding Profile Mix TD 21,390 22,937 23,545 3% 2% Certificate of Deposits 367 1640 2255 4% CASA Refinance 2,113 1,788 1,403 28% TD * CASA 10,628 11,552 11,724 Refinance Securitization/Assignment 1317 1732 1570 IBPC IBPC 1830 1180 750 Securit
Slide 27: Treasury Update
Treasury Update The Bank’s total net Investment portfolio of Rs. 9,492 Crore comprises of SLR and Non-SLR securities Category ( In Rs. Cr) Q1FY25 SLR 8,561 Non SLR 931 Total 9,492 Borrowings & Liquidity • The Bank’s Certificate of Deposits (CD) programme has highest rating at A1+ from India Ratings,
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-24 June-23 YoY % Mar-24 QoQ% Capital & Liabilities Capital 1,136 1,113 2% 1,135 0% Reserves & Surplus 4,872 4,247 15% 4,834 1% Networth 6,008 5,360 12% 5,969 1% Deposits 37,524 27,709 35% 36,129 4% Borrowings 1,403 3,652 -62% 1,788 -22% Other Liabilities & P
Slide 30: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q1FY25 Q1FY24 YoY% Q4FY24 QoQ% Interest Income from Loans 1,325 1,142 16% 1,279 4% Income on Investments 154 108 42% 157 -1% Interest on balances with RBI and other inter bank funds 22 4 510% 9 154% Total Interest Income 1,501 1,254 20% 1,445 4% Finance C
Slide 31: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q1FY25 Q1FY24 YoY% Q4FY24 QoQ% Net Income 994 893 11% 1,008 -1% Employee Cost 375 328 14% 363 3% Opex* 279 253 10% 271 3% Total Operating Expenditure 654 581 13% 634 3% PBT before provision & Write-off 340 312 9% 375 -9% Credit Cost 304 60 407% 107 186% P
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% 9.00% 6.96% 6.75% 7.34% 7.26% 6.34% 6.05% 2.00% 6.58% 6.38% 5.52% 6.00% 1.70% 1.89% 8.55% 8.54% 1.45% 1.39% 8.44% 8.36% 1.10% FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY
Slide 33: Our Presence
Our Presence Map not to scale . Districts present in | Branch network States Advances (%) Deposits (%) Andhra Pradesh 4% 3% Chandigarh 0% 2% Chhattisgarh 1% 2% 27 Punjab Himachal Pradesh 3 Delhi 2% 8% 1 Chandigarh Uttarakhand 2 30 Haryana Gujarat 5% 6% Delhi 17 68 Rajasthan Haryana 2% 4% Himachal Pr
Slide 34: Beyond Banking
Beyond Banking BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 35: CSR Initiatives
CSR Initiatives SKILL TRAINING Women Trained: Inception Year - 2008 Q1FY25 - 7048 CHILDREN SCHOLARSHIP FREE CATARACT SURGERIES Cumulative - 674923 Beneficiaries:- Beneficiaries:- Q1FY25 – NA Q1FY25 – 593 Cumulative - 2604 Cumulative - 37985 DIFFERENTLY ABLED WOMEN EMPOWERMENT Financial help: Exhibit
Slide 36: Beyond Banking 100K+ Reach
Beyond Banking 100K+ Reach Circle of Life – A bitter beginning made Sweeter https://youtu.be/lLOnnbATuJ4?si=Dc10ldSetpGVcDL 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,
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