Esaf Small Finance Bank Limited · NSE:ESAFSFB
Esaf Small Finance Bank — Q3 FY2024 Earnings Presentation
36 slides from Esaf Small Finance Bank's earnings presentation, February 2024
Slide 1: Investor Presentation | February 2024
Investor Presentation | February 2024
Slide 2: 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 3: Company Overview
Company Overview
Slide 4: Company Overview
Company Overview Structure as on Dec 31, 2023 o ESAF Small Finance Bank Limited commenced its operation on 10th March 2017 ESAF Financial o Mr. Kadambelil Paul Thomas and ESAF Financial Holdings Private Limited promoted the Bank. Kadambelil Paul Dia Vikas* Holdings Private Thomas (19.99%) Limited o
Slide 5: Journey So Far
Journey So Far ESAF Small Finance Bank Limited ("ESAF SFB") is one of the 12 awardees of Over the years it has expanded its geographical coverage and product the SFB licenses as of Dec 31, 2023 offerings (both assets & deposits) o 1992 - ESAF Foundation o ESAF SFB included in the founded by Mr. seco
Slide 6: Successful IPO Listing
Successful IPO Listing Overwhelming subscription of 77 times with a listing day gain of ~19% November 2023 o Listing done on BSE & NSE o IPO Price: ₹ 60 per share o Listing Price: NSE ₹ 71.0 per share BSE ₹ 71.9 per share o Listing day gain: ~19% o Net Proceeds of the Issue: ₹ 348.3 crs (Gross Proce
Slide 7: 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 8: 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 (i) the protection of the environment and ensuring sustainable development (ii) promoting financial inclusion and gender equality through specialised financial services (iii) e
Slide 9: Business Snapshot
Business Snapshot 79.4 lakh Total Customers 5,823 Employees 30 Business Correspondents Operational 21 States and 2 UTs 731 Banking Outlets 600 ATMs 917 Customer Service Centers 4,003 Banking agents 723 Business facilitators AUM: ₹ 18,149 cr Yield on Advances: Advance Micro Loans: 72.2% AUM Growth (Y
Slide 10: Extensive Geographical Footprint
Extensive Geographical Footprint Reduced Home State Concentration ESAF SFB has a large national footprint with presence in 21 states & 2 UT Banking Outlets (Nos.) (% of Gross Advances) Name of the State/ Union BOs ATMs CSC Territory Mar-21 Dec-23 Andhra Pradesh 4 3 11 Assam 3 2 10 Bihar 10 10 25 39.
Slide 11: Financial Performance
Financial Performance
Slide 12: AUM & Disbursement Mix
AUM & Disbursement Mix AUM Mix (₹ Crs) Disbursements Mix (₹ Crs) 23.0 23.3 24.6 25 25 6.1 8.6 6.4 4.8 5.3 18,149 6,043 17,204 17,490 935 250 16,331 784 849 917 330 688 770 816 774 3,201 2,798 2,978 1,421 13,351 4,509 2,615 513 198 542 132 3,893 2,216 3,521 222 1,221 3,345 227 133 136 185 189 892 1,1
Slide 13: Key Profitability Metrics
Key Profitability Metrics Net Interest Income (₹ Crs) Non-Interest Income (₹ Crs) 585 597 597 120 499 94 451 93 81 79 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Pre-Provision Operating Profit (₹ Crs) Profit After Tax (₹ Crs) 301 290 288 140 130 239 112 219 101 37 Q3FY23 Q4
Slide 14: Key Profitability Ratios
Key Profitability Ratios Margins# (%) Cost to Income (%) 21.0% 21.1% 21.1% 58.0% 57.6% 19.6% 19.8% 55.9% 55.7% 56.4% 10.4% 11.3% 11.0% 10.6% 9.9% 6.2% 6.4% 6.9% 7.3% 7.3% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Yield on Advances NIMs Cost of Funds ROA* (%) ROE* (%) 2.5%
Slide 15: Asset Quality
Asset Quality GNPA & NNPA (%) PCR (%) 74.4% 70.5% 7.2% 69.6% 56.7% 59.5% 4.2% 3.7% 2.5% 2.6% 2.2% 1.7% 1.1% 0.8% 1.2% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 GNPA NNPA NPA Movement (₹ Crs) Description Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Opening balance of Gross NPAs at t
Slide 16: Capital Adequacy
Capital Adequacy Total Assets & Risk Weighted Assets (₹ Crs) Capital Adequacy (%) 24,300 22,368 20,224 20,796 21.0% 20.3% 20.6% 20.6% 19.8% 18,345 19.0% 18.9% 18.0% 18.1% 18.2% 11,669 9,705 10,085 9,347 8,444 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Total Assets Risk Wei
Slide 17: Key Balance Sheet Metrics
Key Balance Sheet Metrics Shareholders Funds (₹ Crs) Gross Advances (₹ Crs) 17,153 2,442 14,444 15,123 14,118 1,979 12,544 1,839 1,608 1,709 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Total Deposits (₹ Crs) CASA Deposits (₹ Crs) 18,860 3,291 17,416 2,761 2,874 2,878 14,666
Slide 18: Key Strengths
Key Strengths
Slide 19: Key Strengths
Key Strengths Rapid Asset Growth with Strong Rural And Semi-Urban Multi-Nodal Delivery Channels continuous focus on Core Banking Franchise Segment & Retail Growth Technology Driven Model With Robust Funding Profile and Best-In Class Banking Products An Advanced Digital Technology Customer Centric Ap
Slide 20: Multi-Nodal Delivery Channels
Multi-Nodal Delivery Channels Banking Outlets Digital Banking o Provision for full-fledged o Application (compatible with Android banking product & services and iOS) that connects with the National o Branch Operations Payments Corporation of India’s unified o Multiple channels for servicing the paym
Slide 21: Strong Rural And Semi-Urban Banking Franchise
Strong Rural And Semi-Urban Banking Franchise Low penetration of banking credit in rural areas Focus on increasing credit in the rural & semi-urban areas has remained low Rural share of GDP contribution (Mar-23) Rural share of Credit outstanding (Q1FY24) Rural share of Credit outstanding (Q1FY24) 66
Slide 22: Rapid Asset Growth with continuous focus on Core Segment & Retail Growth
Rapid Asset Growth with continuous focus on Core Segment & Retail Growth As of December 31, 2023, ESAF SFB had over 79.4 lakh customers Continued focus on Micro Loans segment with Increased Retail Gross Advances have grown rapidly (₹ Crs) Diversification 0.1% 2.6% 4.2% 5.2% +103.8% 3.7% 4.3% 17,153
Slide 23: 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) 98% 94% 91% 90% +109.6% 15.9% 18,860 14,666 16,994 12,815 9.1% 9.8% 9.1% 13,346 12,046 8,999 8,819 +92.7% Mar-21 Mar-22 Mar-23 Dec-23 Mar-21 Mar-22 M
Slide 24: 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 25: Customer Centric Approach
Customer Centric Approach Customer service measures Products to meet customers’ life-cycle needs • Home loans • Vehicle Loans 24*7 CALL CENTRE DOOR-STEP BANKING • Agri-loans • Gold Loans • Multi-lingual assistance • Facilitate regular door-step from agents collection from • Loan against property • M
Slide 26: Best-In Class Banking Products and Services
Best-In Class Banking Products and Services Loan & Advances Microfinance Loans Retail Loans Other Loans o Current Accounts Liability o Savings Accounts o ESAF Income Generation Loan o ESAF Dream Home Loan o MSME Loans Products o Recurring Deposits o ESAF General Loan o ESAF Clean Energy Product Loan
Slide 27: Prudent Risk Management
Prudent Risk Management ESAF SFB has a well-defined risk management architecture with: o Active board and senior management oversight o Appropriate policies, procedures and limits o Comprehensive and timely identification, measurement, mitigation, controlling, monitoring and reporting of risks o App
Slide 28: Experienced Management Team
Experienced Management Team Ravimohan Periyakavil Ramakrishnan Supported by a highly experienced team of qualified & experienced professionals Part time Chairman & Non-Executive Independent Director o Bachelor’s and master’s degree in science from Kerala University, master’s degree in business admin
Slide 29: High Quality Board At The Helm Of The Organization
High Quality Board At The Helm Of The Organization Biju Varkkey Thomas Jacob Kalappila Vinod Vijayalekshmi Vasudevan Ravi Venkatraman Additional Non-Executive Independent Director Non-Executive Independent Director Non-Executive Independent Director Non-Executive Independent Director o Bachelor’s de
Slide 30: Clearly Articulated Strategy
Clearly Articulated Strategy 1 Increase Deposits 2 Increase Advances o Target new & existing customers for CASA, fixed deposits and o Micro Loan Business: • Cross selling and up-selling to its customer base recurring deposits by focusing on customer service & offering • Appoint new BCs and have its
Slide 31: Annexures
Annexures
Slide 32: Profit & Loss Statement – Q3 & 9M FY24
Profit & Loss Statement – Q3 & 9M FY24 Particulars (₹ Crs) Q3 FY24 Q3 FY23 Y-o-Y Q2 FY24 Q-o-Q 9M FY24 9M FY23 Y-o-Y Interest Income 974.4 701.3 38.9% 943.3 3.3% 2,816.4 2,079.8 35.4% Interest Expense 377.4 249.9 51.0% 346.8 8.8% 1,037.5 742.4 39.7% Net Interest Income 597.0 451.4 32.3% 596.5 0.1% 1
Slide 33: Profit & Loss Statement
Profit & Loss Statement Particulars (₹ Crs) FY23 FY22 FY21 Interest Income 2,854 1,940 1,641 Interest Expense 1,017 793 720 Net Interest Income 1,836 1,147 922 Other Income 288 208 127 Net Total Income 2,124 1,355 1,049 Employee Benefits Expense 278 232 188 Depreciation and Amortization Expense 42 3
Slide 34: Balance Sheet
Balance Sheet Particulars (₹ Crs) Dec-23 Mar-23 Mar-22 Mar-21 CAPITAL AND LIABILITIES Capital 515 449 449 449 Employee Stock Option Outstanding 6 6 5 - Reserves and Surplus 1,967 1,260 957 903 Deposits 18,860 14,666 12,815 8,999 Borrowings 2,406 3,354 2,953 1,694 Other Liabilities and Provisions 546
Slide 35: Awards & Recognitions
Awards & Recognitions 2018 2019 2020 2021 2022 2023 o MSME Banking Excellence 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 Awards ‘Special Jury Award for Year – 2019’ award 2020’ for outstanding Award
Slide 36: Company and Investor Relations Contacts
COMPANY : ESAF Small Finance Bank Limited Mr. Ranjith Raj P Email: investor.relations@esafbank.com Website: www.esafbank.com CIN : U65990KL2016PLC045669 INVESTOR RELATIONS ADVISORS : Orient Capital (a division of Link Group) Mr. Nikunj Jain Mr. Amar Yardi +91 9769060608 +91 7045121239 nikunj.jain@li
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