Equitas Small Finance Bank Limited
5,313words
19turns
0analyst exchanges
0executives
Key numbers — 40 extracted
Rs. 32,776
42%
25%
14%
12%
4%
2%
Rs. 5,142
Rs. 4,740
33%
29%
22%
Guidance — 1 items
Our Mission
opening
“100% JLG Loans Spread Across 10 States 400+ Branches Spread Across 12 States & UTs Contd… Housing Finance Vehicle Finance • • Loans are specifically designed to cater to individuals aiming to purchase their first affordable housing property Includes Affordable Housing, LAP and Loans for self construction.”
Advertisement
Risks & concerns — 3 flagged
Model Factors impacting stability Building Scalability • Robust growth through well • Recurring stress in MFI lending • Reducing exposure to MFI – Journey diversified secured loan portfolio environment.
— CASA Ratio
Till Dec’24, the bank has disbursed ~Rs 960 Crs through the Selfe Loan App • Yields on Gross Advances remained stable QoQ (up 6 bps) despite slowdown in Microfinance • Yield on Disbursements improved by 33 bps as the bank continues to focus on high yield products like UCV and MLAP.
— CASA Ratio
46 Crs and one time additional stress sector provisioning of ~Rs.
— CASA Ratio
Speaking time
2
1
1
1
1
1
1
1
1
1
Advertisement
Opening remarks
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 representation or warranty, express implied, is made as to the accuracy, completeness or fairness of the presentation and the information contained herein and no reliance should be placed on such information. The Bank or any other parties whose name appears herein shall not be liable for any statements made herein or any event or circumstances arising therefrom. This presentation or any part of it or the fact of its, form the basis of, or be relied on in connection with, any contract or commitment therefore. This document has not been and will not be reviewed or approved by any statutory or regulatory authority in India or any other jurisdiction or by any stock exchanges in India or elsewhere This document and the cont
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 suggested by the forward looking statements, due to a number of risks or uncertainties associated with the expectations. These risks and uncertainties include, but not limited to, our ability to successfully implement our strategies, change in government policies etc. The Bank may, from time to time, make additional written and oral forward looking statements, including statements contained in the Bank’s filings with the stock exchanges and our reports to shareholders. The Bank does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the Bank. GNPA ,NNPA & Gross Advances across the presentation refers to GNPA, NNPA & Gross Advances including IBPC sold 2 Table of Contents 1.
Gross Advances
Rs. ^37,344 Cr [Rs. 32,776 Cr] SBL - 42%, VF - 25%, MFI - 14%, HF - 12% MSE - 4%, NBFC - 2% Disbursements for Q3FY25: Rs. 5,142 Cr [Rs. 4,740 Cr] SBL - 33%, VF - 29%, MFI - 22%, HF - 7% , MSE - 4%
Third Party Products
LI & GI Premium- Rs. 36.5 Cr [Rs. 31 Cr] Mutual Fund AUM- Rs. 460 Cr [Rs. 281 Cr] Cost of Funds for Q3FY25: 7.49% [7.36%] SA – 5.92%, TD – 8.42%
CASA Ratio
29% [33%] RoA: Q3FY25 at 0.53% [1.98%] RoE: Q3FY25 at 4.44% [14.44%] Figures in [] represent Q3FY24 data|*Advance for the purpose of GNPA/NNPA calculation includes Securitization book|^ Gross Advances includes IBPC & Securitization #Including 371 onsite and 4 offsite ATMs 5 Equitas - Stable, Sustainable & Scalable Model Strength in the Biz. Model Factors impacting stability Building Scalability • Robust growth through well • Recurring stress in MFI lending • Reducing exposure to MFI – Journey diversified secured loan portfolio environment. started from 2010 • • • • Time tested credit assessment model for lending to the informal economy • Significant profit contribution from micro finance • Offsetting profitability impact of reduction in MFI advances, through growth in M-LAP term growth opportunities Long across customers/products segments • Geography Nadu concentration in Tamil Stable Management Scaling up liability franchise 86% Secured Book with 7yr average credit cost of ~1.4% 37% C
Less
i. Upgradations & Recoveries ii. Write-offs Closing GNPA Balance Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 660.50 312.19 172.48 49.95 750.26 750.26 355.93 217.52 67.39 821.28 821.28 385.38 180.66 136.96 889.04 889.04 505.79 216.87 155.14 1022.82 585.76 301.91 234.80 1022.82 1071.87 3.5 0% 3.0 0% 2.5 0% 2.0 0% 1.5 0% 1.0 0% 0.5 0% 0.0 0% -0.50% -1.00% 36 Key Ratios - Annual Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 8.06% 7.34% 6.58%6.38% 7.26% 7.48% 9.11% 9.00% 8.44%8.54% 8.36% 6.75% 5.52% 6.00% 6.34%6.05% 5.72% 7.64% 2.00% 1.89% 1.70% 1.39% 1.10% 0.29% FY20 FY21 FY22 FY23 FY24 9MFY25 FY20 FY21 FY22 FY23 FY24 9MFY25 FY20 FY21 FY22 FY23 FY24 9MFY25 FY20 FY21 FY22 FY23 FY24 9MFY25 Credit Cost 3.28% *2.61% 2.26% 2.60% 1.79% 1.56% 1.01% GNPA & NNPA GNPA NNPA Provision Coverage Ratio RoE 4.06% 3.59% 2.72% 2.60% 2.52% 2.97% 58.59% 56.90% 56.06% 45.22% 42.73% 68.28% 12.70% 9.84% 14.43% 12.55% 7.75% 1.67% 1.52% 2.37% 1.14% 1.12% 0.96% 2.34% FY20 FY21 FY22 FY23 FY24 9MFY25 FY20 FY21 FY
Advertisement