Equitas — Q1 FY21 Earnings Presentation
48 slides from Equitas's earnings presentation, Aug 10, 2020
Slide 1: Exchange intimation cover letter
August 10, 2020 The Secretary The Secretary BSE Limited National Stock Exchange of India Limited PhirozeJeejeebhoy Towers Exchange Plaza Dalal Street BandraKurla Complex (BKC) Mumbai – 400001 Bandra (east) Mumbai – 400051 Scrip Code No: 539844 Symbol: EQUITAS Dear Sirs, Sub: Intimation under Regulat
Slide 2: Equitas Holdings Limited Investor Presentation Q1FY21
Equitas Holdings Limited Investor Presentation Q1FY21 30th June 2020 1
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: Disclaimer – Forward Looking Statements
Disclaimer Forward Looking Statements: Certain statements in this document with words or phrases such as “ will”,“ etc. and similar expressions or variation of these expressions or those concerning our future prospects are forward looking statements. Actual results may differ materially from those s
Slide 5: Contents
Contents 01 Moratorium 02 Key Highlights 03 Financial 04 Advances 05 Liabilities & 06 Financials Update Performance Branch Banking Page : 06 Page : 12 Page : 17 Page : 24 Page : 32 Page : 39 4
Slide 6: Equitas Small Finance Bank Limited
Equitas Small Finance Bank Limited Note: All ESFBL numbers in this presentation are on iGAAP basis unless specified. 5
Slide 7: HR Initiatives
HR Initiatives 6
Slide 8: HR Initiatives
HR Initiatives • Performance Appraisal: Appraisal for all staff completed in the first quarter • Incentive: Incentive for field staff for first quarter paid out based on the average of 4th quarter of last year since first quarter was mostly locked out • Work from home: The Bank has rolled out a comp
Slide 9: Moratorium Update
Moratorium Update 8
Slide 10: Moratorium 2.0
Moratorium 2.0 % of Gross Advances which % of Gross Advances which has Asset Products has availed moratorium availed moratorium (Data as on 30th June 2020) (Data as on 31st July 2020) Micro Finance 59% 42% Small Business Loans 42% 40% New Commercial Vehicle Finance 65% 54% Used Commercial Vehicle Fi
Slide 11: Collections
Collections +Collections Efficiency Customers (in POS terms) who have had made no Product March April May June July payments for the period Vehicle Finance 81% 13% 14% 42% 47% Period MFI SBL VF Small Business March'20 to July'20 12% 13% 16% 73% 17% 16% 61% 66% Loans April'20 to July'20 41% 32% 48% M
Slide 12: Micro Finance
Micro Finance Micro Finance Collection Efficiency State Wise State March April May June July Chhattisgarh 76.4% 2.1% 26.7% 65.4% 80.7% Gujarat 73.7% 0.4% 1.7% 65.0% 86.5% Haryana 70.5% 0.0% 12.4% 69.9% 96.8% Karnataka 75.5% 0.1% 7.1% 50.7% 62.7% Madhya Pradesh 73.9% 0.2% 12.5% 53.3% 48.5% Maharashtr
Slide 13: Small Business Loans
Small Business Loans Percentage of customers who have paid their July 20 EMI % of Gross Advance which State have availed Moratorium 2,50 0 80% Andhra Pradesh 64% 72% 2,042 70% Tamil Nadu 44% 63% 2,00 0 1,725 60% Chharrisgarh 43% 1,585 53% 1,50 0 1,467 50% Karnataka 38% 44% Maharashtra 34% 40% 1,085
Slide 14: Vehicle Finance
Vehicle Finance Product Risk Category Gross Advances (Rs. Cr) Gross Advances (Rs. Cr) under Moratorium % Moratorium Low Risk 348 153 44.07% UCV Medium Risk 1,359 828 60.92% High Risk 888 566 63.80% UCV Total 2,595 1,548 59.64% Low Risk 159 61 38.40% NCV Medium Risk 706 368 52.18% High Risk 277 186 6
Slide 15: Vehicle Finance Collection Efficiency State Wise
Vehicle Finance Collection Efficiency State Wise State % Mix % Moratorium Tamil Nadu 26.78% 58.15% Maharashtra 23.41% 63.74% Karnataka 11.89% 56.33% Haryana 5.40% 54.70% Rajasthan 5.23% 59.93% Gujarat 5.06% 51.18% Madhya Pradesh 4.16% 44.24% Delhi 4.09% 60.51% Punjab 3.92% 59.08% Chhattisgarh 3.66%
Slide 16: Key Highlights
Key Highlights 15
Slide 17: Snapshot
Snapshot Rs. 15,573 Cr Rs. 11,471 Cr 8.63% 2.68% Advances * Deposits # NIM! GNPA# Q1FY21 1.20% 20.61% ROA Tier I CRAR % 7.63% Rs. 60 Cr PAT 8.72% Tier II CRAR % Cost of Funds$ ROE 0.98% * Advances = Gross Advances including IBPC issued| !NIM = Net interest income [excluding securitization] as a % of
Slide 18: Highlights – Q1FY21
Highlights – Q1FY21 Advances*: • Advances* as of Q1FY21 was at Rs. 15,573 Cr, Advances* growth of 27% YoY • The Bank disbursed Rs. 564 Cr in Q1FY21 • 76% of advances* is secured loans Liabilities: • Deposits excluding CD at Rs. 11,471 Cr as on 30th June 2020, growth of 30% YoY and 11% QoQ • Retail T
Slide 19: Highlights – Q1FY21
Highlights – Q1FY21 Digital initiatives: • 57,044 accounts (Selfe SA + Selfe FD) acquired between April 2020 to June 2020 • Equitas SFB among very few banks in India to go live with Video KYC. With video KYC, the Bank can now cater to customers outside its branch catchment area also with all service
Slide 20: Highlights – Q1FY21
Highlights – Q1FY21 Key Ratios: • Cost to Income* at 66.41% in Q1FY21 as compared to 69.09% in Q1FY20 • RoA^ and RoE# for Q1FY21 at 1.20% and 8.72% respectively Capital: • As of June 30, 2020 Total CRAR at 21.59% and Tier-I CRAR of 20.61%; Well above minimum regulatory requirements of 15% and 7.5% •
Slide 21: Financial Performance
Financial Performance 20
Slide 22: Financial Overview
Financial Overview Rs. 15,573 Cr Rs. 20,868 Cr Rs. 11,471 Cr Rs. 404 Cr [12,253] [16,663] [8,851] [337] Advances Assets Deposits* NII 27% YoY 25% YoY 30% YoY 20% YoY Q1FY21 Rs. 30 Cr Rs. 288 Cr Rs. 68 Cr Rs. 60 Cr [59] [274] [31] [59] Other Income Opex Provisions PAT -50% YoY 5% YoY NA 3% YoY [] fig
Slide 23: Key Ratios
Key Ratios Return on Assets (ROA) Return on Avg. Equity (ROAE) 1.46% 1.39% 10.33% 9.84% 1.20% 8.72% 0.91% 6.31% Q1FY20 Q4FY20 2020 Q1FY21 Q1FY20 Q4FY20 2020 Q1FY21 Cost to Income Operating Expenses to Total Average Assets 69.09% 6.76% 6.75% 66.41% 6.54% 66.38% 62.14% 5.74% Q1FY20 Q4FY20 2020 Q1FY21
Slide 24: Key Ratios
Key Ratios Net Interest Margin * (NIM) Lending spreads * 9.54% 11.71% 9.11% 8.88% 11.18% 10.93% 8.63% 10.67% Q1FY20 Q4FY20 2020 Q1FY21 Q1FY20 Q4FY20 2020 Q1FY21 Credit cost * Asset Quality – Gross NPA* 3.79% 2.73% 2.72% 2.72% 2.68% 1.93% 1.94% 1.04% Q1FY20 Q4FY20 2020 Q1FY21 Q1FY20 Q4FY20 2020 Q1FY2
Slide 25: Income Evolution
Income Evolution Net income evolution (in Rs. Cr) 498 434 396 74 30 59 337 424 404 Q1FY20 Q4FY20 Q1FY21 NII Other Income Net Income Non-interest income * evolution Net income composition (%) –Q1FY21 1.9 0% 1.81% 1.79% 25. 00% 7.0% 1.7 0% 1.46% 20. 00% 1.5 0% 21.89% 19.72% 15. 00% 1.3 0% 15.88% NII 1
Slide 26: Opex Evolution
Opex Evolution Rs Cr Q1FY20 Q4FY20 Q1FY21 Employee expenses 166 187 191 Other expenses 85 100 78 Depreciation 23 22 19 Total Operating expenses 274 309 288 No. of employees 15,261 16,104 15,843 Opex evolution 70.00% 6.76% 7.00% 6.54% 68.00% 69.09% 66.41% 6.50% 66.00% 6.00% 64.00% 5.74% 5.50% 62.00%
Slide 27: Capital Adequacy
Capital Adequacy Rs. Cr June 2020 Total Risk Weighted Assets 12138.31 Tier I Capital 2501.68 Tier II Capital 118.70 Total Capital 2620.38 CRAR Tier I CRAR 20.61% Tier II CRAR 0.98% 26
Slide 28: Advances
Advances 27
Slide 29: Advances evolution and Diversified book
Advances evolution and Diversified book 772 , 210 , Rs Cr Q1FY21 Q1FY20 YoY Growth % 5% 1% 712 , 5% 3,618 , Micro Finance 3,618 3,124 16% 23% Small Business Loans (Incl. HF) 6,484 4,926 32% 3,776 , 24% Total Advances Rs 15,573 Cr Vehicle Finance 3,777 3,027 25% MSE Finance 712 280 154% 6,484 , Corpo
Slide 30: Advances Evolution – Product-wise
Advances Evolution – Product-wise YoY Rs Cr Q1FY21 Q1FY20 growth % Micro Finance 3,618 3,124 16% Small Business Loans (Incl. HF) 6,484 4,926 32% Small Business Loans 5,151 3,944 31% Housing Finance 629 411 53% Agri Loans 704 571 23% Vehicle Finance 3,777 3,027 25% Used CV 2,628 2,250 17% New CV 1,14
Slide 31: Asset Products - Details
Asset Products - Details GNPA (%) GNPA (%) GNPA (%) Product Segment (as on 30th June 2020) 2019 2020 Q1FY21 Micro Finance 0.86% 1.16% 1.18% Small Business Loans (Incl. HF) 2.63% 2.73% 2.65% Vehicle Finance 4.00% 4.03% 3.78% MSE Finance 1.75% 1.19% 1.12% Corporate Loans 0.00% 0.00% 0.84% GNPA 2.53% 2
Slide 32: Disbursements Product-wise
Disbursements Product-wise Rs Cr Q1FY20 Q1FY21 YoY Growth % Micro Finance 631 132 -79% Small Business Loans (Incl. HF) 638 265 -58% Small Business Loans 508 204 -60% Housing Finance 54 29 -46% Agri Loans 76 32 -59% Vehicle Finance 506 105 -80% Used CV 370 71 -82% New CV 136 34 -75% MSE Finance 127 3
Slide 33: Asset Landscape
Asset Landscape State Wise Advances (as of June 30, 2020) Uttar Pradesh 0.10% Pondicherry 0.20% Chandigarh 0.37% Chattisgarh 1.09% Punjab 1.20% Andhra Pradesh 1.22% Delhi 1.51% Telangana 1.66% Haryana 1.88% Gujarat 2.73% Madhya Pradesh 2.84% Rajasthan 3.03% Karnataka 9.22% Maharashtra 11.04% Tamil N
Slide 34: Loan Profile Mix
Loan Profile Mix Corporate Loans (as of June 30, 2020) MSE Finance (as of June 30, 2020) NBFC Exposure Mix 34% 26% 23% 17% Working Capital Loans MFI AFC HFC Non NBFC 20% 75% 5% Ratings Exposure Manufacturing Trading Services 5% 65% 15% 15% 33 AA A BBB Unrated
Slide 35: Asset quality trend
Asset quality trend 450.00 2.73% 2.72% 3.0 0% 2.68% 400.00 2.8 0% 2.6 0% 350.00 2.4 0% 300.00 2.2 0% 250.00 2.0 0% 200.00 1.54% 1.8 0% 1.50% 150.00 1.39% 1.6 0% 1.4 0% 100.00 334.30 187.21 417.32 228.61 416.67 213.37 1.2 0% 50.00 1.0 0% Q1FY20 Q4FY20 Q1FY21 GNPA (Rs. Cr) NNPA (Rs. Cr) GNPA % NNPA %
Slide 36: Liabilities & Branch Banking
Liabilities & Branch Banking 35
Slide 37: Customer deposits evolution
Customer deposits evolution Update for Q1FY21 CA SA CASA TD CASA+TD as on 30 June 2020 [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] [Customer Deposits] Balance (Cr) 330 2,024 2,354 9,117 11,471 as a % of total borrowings (Rs. 18,313 Cr) 2% 11% 13% 50% 63% Customer Deposits
Slide 38: Customer Deposit Profile
Customer Deposit Profile (as of June 30, 2020) Value Slabs Value Slabs 43.50% 12.98% 19.67% 48.01% 26.83% 16.47% 24.05% 8.49% < 2Cr 2Cr to < 10Cr 10Cr + < 1L 1L to < 10L 10L to < 1Cr 1Cr to < 10Cr 10Cr + Term Deposit Mix CASA Mix 37
Slide 39: Liabilities Landscape
Liabilities Landscape State Wise Deposits (as of June 30, 2020) Pondichery 0.25% Telangana 0.86% Chattisgarh 1.34% Andhra Pradesh 1.84% Uttar Pradesh 1.84% Gujarat 3.09% Madhya Pradesh 3.25% Rajasthan 5.03% Haryana 6.36% Chandigarh 6.54% Delhi 7.11% Karnataka 7.21% Punjab 7.58% Maharashtra 17.61% Ta
Slide 40: Overview of TPP Business
Overview of TPP Business Revenue (Rs. Cr) Premium Collected (Rs. Cr) LI 33% LI 40% GI 187% 9.9 GI 176% 68.8 3.5 25.4 137.2 25.0 15.1 15.5 11.6 73.8 68.4 48.8 Q1FY20 Q1FY21 Q1FY20 Q1FY21 Life Insurance General Insurance ULIP Rural Health PA& # Of Policies Issued 9.7% 0.4% 5.1% Others LI 78% 29,606 2.
Slide 41: Funding profile
Funding profile As on 30 June 2020 In Rs Cr June 2020 2% 1% 1% 1% 5% TD 9,117 TD Refinance 4,963 Refinance 13% CASA 2,354 CASA CD 316 IBPC 50% Sub Debt 220 Certificate of Deposit Term Borrowing Term Borrowing 110 27% Sub-ordinated Debt IBPC 1,000 RBI Borrowing RBI Borrowing 233 Total Borrowings 18,3
Slide 42: Treasury
Treasury Investments (As on 30 June 2020) Borrowings & Liquidity Borrowings: SLR Portfolio • Our Bank’s Certificate of Deposit (CD) programme for Rs. 2,000 Crore has highest rating from at CRISIL A1+ Portfolio Category Book Value (Rs. Cr) • Availed refinance of Rs. 685 Crore during Q1FY21 (Rs. 1,000
Slide 43: Financials
Financials 42
Slide 44: Balance Sheet
Balance Sheet Particulars (in Rs Cr) June-20 June-19 YoY% March-20 QoQ% Capital & Liabilities Capital 1,053 1,006 5% 1,053 - Reserves & Surplus 1,751 1,307 34% 1,691 4% Networth 2,804 2,313 21% 2,744 2% Deposits 11,787 9,133 29% 10,788 9% Borrowings 5,526 4,645 19% 5,135 8% Other Liabilities & Provi
Slide 45: Profit & Loss Statement
Profit & Loss Statement Particulars (in Rs Cr) Q1FY21 Q1FY20 YoY% Q4FY20 QoQ% Interest Income from Loans 661 550 20% 668 -1% Interest Income on Fixed Deposits with Banks 44 39 13% 37 19% Interest Income on SLR & Non SLR Investment and Call Money 16 14 14% 21 -20% Total Interest Income 721 603 20% 72
Slide 46: Profit & Loss Statement
Profit & Loss Statement Particulars (in Rs Cr) Q1FY21 Q1FY20 YoY% Q4FY20 QoQ% Net Income 434 396 10% 498 -13% Employee Cost 191 166 15% 187 2% Opex 97 107 -9% 123 -20% Total Operating Expenditure 288 273 5% 310 -7% PBT before provision & Write-off 146 123 19% 188 -22% Credit Cost 68 31 119% 130 -48%
Slide 47: Key Ratio
Key Ratio Key Ratio 2018 2019 2020 Q1FY21 Yield on "On book" Advances 20.47% 19.13% 18.90% 18.81% Cost of funds 8.36% 8.13% 7.97% 7.63% Lending spread 12.11% 11.00% 10.93% 11.18% NIM on Interest Earning assets 9.02% 8.55% 9.11% 8.63% GNPA 2.68% 2.53% 2.72% 2.68% Credit Cost 2.65% 1.07% 1.93% 1.94% P
Slide 48: Investor Relations
Investor Relations Equitas Holdings Limited 4th Floor, Phase II, Spencer Plaza, No. 769, Mount Road, Anna Salai, Chennai 600 002, Tamil Nadu [email protected] Twitter - @EquitasIR 47