Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q1 FY2023 Earnings Presentation
42 slides from Equitas Small Finance Bank's earnings presentation, Jul 29, 2022
Slide 1: Intimation to stock exchanges under Regulation 30
July 28, 2022 The Secretary The Secretary National Stock Exchange of India Limited BSE Limited Exchange Plaza, Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalai Street Mumbai - 400051 Mumbai 400 001- Symbol : EQUITASBNK Scrip Code : 543243 Dear Sir / Madam Sub: Intimation under Regulation 30 of S
Slide 2: Press Release: Q1FY23 unaudited financial results
EQUITAS SMALL FINANCE BANK LIMITED FOR IMMEDIATE PUBLICATION PRESS RELEASE July 28, 2022 Chennai, July 28, 2022: The Board of Directors of Equitas Small Finance Bank Limited at its meeting held today, approved the unaudited financial results for quarter ended June 30, 2022 PAT for the quarter at Rs
Slide 3: Press Release: Key highlights continued
o Retail Term Deposits grew 14% YoY to Rs. 7,083 Crs. Retail Term Deposits contribute 72% of total term deposits. o Elite SA book crossed Rs. 8,000 Crs with 70,000+ Customers o NR Book crossed Rs. 1,000 Crs Key Ratios: o Cost to Income at 60.60% in Q1FY23 as compared to 56.85% in Q4FY22 as compare
Slide 4: About Equitas Small Finance Bank Limited
About Equitas Small Finance Bank Limited [ESFB] Equitas Small Finance Bank is one of the largest small finance banks in India. As a new-age bank, we offer a bouquet of products and services tailored to meet the needs of our customers – individuals with limited access to formal financing channels, as
Slide 5: Investor Presentation Q1FY23
Investor Presentation Q1FY23 BEYOND BANKING When you bank with us, you contribute towards a better society.
Slide 6: 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 7: Table of Contents
Table of Contents 1. Key Highlights 2. Financial Performance 3. Advances 4. Liabilities & Branch Banking 5. Digital Banking 6. Financials 3
Slide 8: Key Highlights
Key Highlights BEYOND BANKING | When you bank with us, you contribute towards a better society. 4
Slide 9: Snapshot
Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: Total Deposits: PAT for Q1FY23: 18 States and UTs Rs. 21,688 Cr [Rs. 17,837 Cr] Rs. 20,386 Cr [Rs. 17,095 Cr] Rs. 97 Cr [Rs. 12 Cr] SBL- 38%, VF - 24%, MFI- CASA – 52%, TD – 48% 18%, HF- 8% , MSE – 5%, NBFC – 3% Disbur
Slide 10: Highlights
Highlights Credit growth continues to be healthy • Q1FY23 disbursement at Rs. 3,238 Crs, strong growth of 156% YoY on account of a low base due to covid led lockdowns • Advances as of Q1FY23 was at Rs. 21,688 Cr, growth of 22% YoY • Yields stable at 17.15% on a sequential basis Strong retail deposit
Slide 11: Highlights: Profit & Loss, Asset Quality
Highlights Profit & Loss • Net Interest Income for Q1FY23 at Rs. 581 Cr as against Rs. 461 Cr in Q1FY22.Growth of 26% Y0Y. NIM at 9.05% • PPoP as a % of assets expanded to 3.87% from 2.65% YoY • The Bank during the quarter has made higher provisions of Rs. 76 Cr towards the restructured loans which
Slide 12: Business Highlights
Business Highlights Asset Updates Liabilities Updates • Launched Merchant Over Draft loans for SBL • Expanded the Banks savings account product customers to help meet their working capital offering with the introduction of “Enjoi” – a kid’s requirements, early signs are encouraging savings account •
Slide 13: Restructured Loans - Update
Restructured Loans - Update Restructured Book Summary of EMI collections* status as of Jun’22 As of 30th June 2022 Rs. Cr 1-60 DPD EMI Status Buckets MF CV SBL & HF MSE Total 1-60 DPD Standard 68 156 159 27 410 1 EMI 2 EMI 3 EMI 1 to 30 Days 13 93 35 16 157 CV 207 17 78 112 31 to 60 Days 15 114 52 2
Slide 14: Provisions on Restructured Loans
Provisions on Restructured Loans Particulars Rs. Cr Total Provisions 276 Restructured Standard Provisions 114 Restructured NPA Provisions 162 (incl) Higher Provisioning made towards Vehicle Finance & Small Business Loans 76 Management overlay provisions 13 • 100% provisions made on Micro Finance Cov
Slide 15: Progress & Timelines on Scheme of Amalgamation
Progress & Timelines on Scheme of Amalgamation Filed join EHL divests it’s NCLT order for NOC No observation Board Approval RBI NOC application for entire convening Application letter from received the scheme of shareholding in meeting Stock Exchanges amalgamation ETPL NCLT ordered The Board of Bank
Slide 16: Financial Performance – Quarterly Trends
Financial Performance – Quarterly Trends 12
Slide 17: Key Ratios
Key Ratios Daily Avg Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 6.93% 6.81% 9.10% 9.12% 9.05% 6.16% 6.45% 1.70% 1.83% 6.47% 5.73% 5.73% 5.97% 1.40% 8.14% 6.20% 6.20% 7.87% 0.65% 0.19% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1
Slide 18: Income Evolution
Income Evolution Net Income Evolution (Rs. Cr) PPoP/ Assets (%) 4.35% 3.87% 581 3.52% 541 552 3.14% 461 484 2.65% 53 100 95 104 100 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 NII Other Income (Net) PPoP as a % of assets 2.0 0% Other Income [Net] Contribution (%) Other Inco
Slide 19: Opex evolution
Opex evolution Rs. Cr Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Employee expenses 222 228 240 209* 225# Other expenses (net of digital expenses) 115 144 152 148 169 Depreciation 20 19 19 17 18 Total Operating expenses 356 391 411 374 412 No. of employees 16,770 17,441 17,509 17,607 17,936 Cost to Income(%)
Slide 20: Advances
Advances BEYOND BANKING | When you bank with us, you contribute towards a better society. 16
Slide 21: Advances evolution
Advances evolution Rs Cr Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 YoY % Contribution % Micro Finance 3,128 3,438 3,695 3,907 4,007 28% 18% Small Business & Agri Loans 6,998 7,421 7,609 7,881 8,234 18% 38% Housing Finance 1,017 1,175 1,310 1,641 1,821 79% 8% Vehicle Finance 4,377 4,670 4,846 5,047 5,279 21
Slide 22: Disbursements evolution
Disbursements evolution Rs Cr Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 YoY % Micro Finance 393 938 1,010 972 939 139% Small Business and Agri Loans 232 951 728 940 978 322% Housing Finance 83 203 177 267 266 220% Vehicle Finance 177 782 778 940 889 402% Used CV 106 523 512 617 579 446% New CV 72 259 266 3
Slide 23: Segmental Details
Segmental Details Number of Live ATS @ ATS @ Product Segment GNPA (%) PCR (%) Loans Disbursement (Lacs) Portfolio (Lacs) Micro Finance 18,45,786 0.41 0.21 4.70% 47.84% Small Business Loans 2,27,339 6.45 3.47 4.23% 39.63% Housing Finance 22,878 9.44 7.96 1.39% 34.94% Vehicle Finance 1,73,189 4.93 3.0
Slide 24: Asset Quality Trend
Asset Quality Trend 950 .00 4.58% 4.64% 4.39% 5.0 0% 3.95% 850 .00 4.06% 4.0 0% 750 .00 650 .00 2.29% 2.37% 2.38% 2.37% 2.07% 3.0 0% 550 .00 2.0 0% 450 .00 350 .00 479.47 1.0 0% 250 .00 0.0 0% 150 .00 816.17 398.22 880.82 439.64 863.82 459.42 837.18 856.00 441.22 50.0 0 -1.00% Q1FY22 Q2FY22 Q3FY22 Q
Slide 25: Liabilities & Branch Banking
Liabilities & Branch Banking 21
Slide 26: Deposits Evolution
Deposits Evolution CA SA CASA TD CASA+TD as on 30 June 2022 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 685 9,863 10,548 9,838 20,386 as a % of total borrowings (Rs. 23,630 Cr) 3% 42% 45% 42% 86% as a % of total deposits (Rs. 20,386 Cr) 3%
Slide 27: Customer Deposit Profile
Customer Deposit Profile Elite Balance (Rs. Cr) Savings Slab Wise (%) Deposit Category 3% 5% 5% OTHERS 8% 8,988 Upto 1 Lac 8,119 1 Lac to 1 Cr 6,120 20% 5,351 1 Cr to 10 Cr 4,155 TRUSTS 4% 10 Cr to 100 Cr 67% 100 Cr + GOVT./LOCAL Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 BODIES 7% Retail & Bulk TD Mix Term
Slide 28: Funding Profile
Funding Profile Funding Profile Mix In Rs Cr June 2021 March 2022 June 2022 3% 1% TD 10,227 9,095 9,838 10% CASA Refinance 3,413 2,466 2,299 TD CASA 6,794 9,855 10,548 44% Refinance Sub Debt 150 150 150 IBPC 42% Sub-ordinated Debt IBPC 700 865 795 Others (CD + RBI Borrowing) 189 - - Total Borrowings
Slide 29: Treasury Update
Treasury Update The Bank’s total investment portfolio of Rs. 4,853 Crore comprises of SLR and Non-SLR securities Category (Rs. Cr) Book Value SLR 4,850 Non SLR 3 Total 4,853 Borrowings & Liquidity • The Bank’s Certificate of Deposit (CD) program for ₹ 500 Crore has highest rating from CRISIL at A1+
Slide 30: Digital Banking
Digital Banking BEYOND BANKING | When you bank with us, you contribute towards a better society. 26
Slide 31: Digital Banking – Key Highlights
Digital Banking – Key Highlights Prepaid Engagements NeoBanking – Live Partnerships • Over 25K cards issued (Virtual) • NiyoX • 50 Lakh+ Transactions o 15.5 lac Accounts till date • 85 Crs+ Transactions value processed o CASA Balance of Rs 438 Crs+ • Programs under integration: • FreoSave o BankIT |
Slide 32: Digital Transactions and Omni Channel Customer Outreach
Digital Transactions and Omni Channel Customer Outreach Digital Transactions Digital Relationship Management Transactions Per Minute Acquisition 1,000+ 2,800+ 584 ATM/Micro ATM 3+ Accounts per minute Virtual meetings per day Physical Customer meetings per day 90 Virtual (VRM) Physical 76 Point of Sa
Slide 33: Financials
Financials BEYOND BANKING | When you bank with us, you contribute towards a better society. 29
Slide 34: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Jun-22 Jun-21 YoY % Mar-22 QoQ% Capital & Liabilities Capital 1,253 1,142 10% 1,252 - Reserves & Surplus 3,095 2,274 36% 2,994 3% Networth 4,348 3,416 27% 4,246 2% Deposits 20,386 17,095 19% 18,951 8% Borrowings 2,449 3,678 -33% 2,616 -6% Other Liabilities & Prov
Slide 35: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q1FY23 Q1FY22 YoY% Q4FY22 QoQ% Interest Income from Loans 855 742 15% 811 5% Income on Investments 62 57 9% 66 -6% Interest on balances with Reserve Bank of India and 24 20 21% 19 29% other inter bank funds Total Interest Income 941 819 15% 896 5% Finance
Slide 36: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q1FY23 Q1FY22 YoY% Q4FY22 QoQ% Net Income 681 520 31% 658 3% Employee Cost 225 222 1% 209 8% Opex* 187 134 40% 165 13% Total Operating Expenditure 412 356 16% 374 10% PBT before provision & Write-off 269 164 63% 284 -5% Credit Cost 142 150 -5% 123 15% PBT
Slide 37: Journey of building a Stable, Sustainable and Scalable Bank
Journey of building a Stable, Sustainable and Scalable Bank 33
Slide 38: Diversifying across the informal segment
Diversifying across the informal segment 25,0 00 25. 00% 22.90% 21.80% 23. 00% 21.50% 20,597 20,0 00 21. 00% 19.70% 19.22% 18.90% 17,925 19. 00% 17.62% 15,367 18.66% 15,0 00 17. 00% 11,704 15. 00% 10,0 00 13. 00% 6,125 7,176 8,238 10.70% 10.10% 11. 00% 9.40% 9.02% 9.11% 8.55% 8.44% 8.54% 4,010 5,00
Slide 39: Liability franchise evolution
Liability franchise evolution 2,372 3,323 5,097 4,769 4,909 2,002 7,093 7.34% 5,869 8.36% 8.13% 7.97% 643 6.58% 1,636 3,811 476 502 365 368 400 401 232 231 73 159 64 32 1,638 57 2,274 632,208 5,614 9,855 FY18 FY19 FY20 FY21 FY22 CASA (Cr) Retail TD (Cr) Bulk TD (Cr) Cost of Funds % Liability Fee Inc
Slide 40: Key Ratios - Annual
Key Ratios - Annual Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 8.36% 8.13% 8.06% 9.11% 8.33% 1.70% 7.34% 9.02% 1.45% 1.39% 6.58% 6.96% 6.75% 5.52% 6.00% 1.10% 8.55% 8.54% 8.44% 0.30% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 C
Slide 41: Investor Relations
Investor Relations Equitas Small Finance Bank Limited Website – https://ir.equitasbank.com/ Email – [email protected] Twitter - @EquitasIR 4th Floor, Phase II, Spencer Plaza, No. 769, Mount Road, Anna Salai, Chennai 600 002, Tamil Nadu
Slide 42: Annexure for Non-Convertible Debentures under Regulation 52(4)
ANNEXURE FOR NON-CONVERTIBLE DEBENTURES ISSUED ON PRIVATE PLACEMENT BASIS UNDER REGULATION 52(4) OF THE SEBI ( LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS ) REGULATIONS, 2015. a ) Debt Equity Ratio (for the quarter ended on 30th lune 2022): 0.25 times (Debt represents borrowings with residual ma
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