#1equitas Equitas Small Finance Bank April 29, 2021 The Secretary National Stock Exchange of India Limited Exchange Plaza Bandra Kurla Complex (BKC) Bandra (East) Mumbai-400051 Symbol: EQUITASBNK Dear Sirs, The Secretary BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai-400001 Scrip Code No-543243 F Group - Debt Instruments listed in BSE Ref: Scrip Codes - 951930, 951924, 952815 and 952812 Sub: Intimation under Regulation 30 & 52 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 –Investor Presentation -Q4 Pursuant to Regulations 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Investor presentation on the Audited financial results for the quarter and year ended 31st March 2021 is enclosed. The above information will be made available on the Bank's website www.equitasbank.com. Kindly take the above information on record. Thanking you, Yours truly, for Equitas Small Finance Bank Limited But he Sampathkumar K R Company Secretary FINANCE SMALL Chennai 600 002. EQUITAS BANK KLTD fun banking! Equitas Small Finance Bank Limited (Previously known as Equitas Finance Limited) 4th Floor, Phase II, Spencer Plaza, No.769, Mount Road, Anna Salai, Chennai, Tamil Nadu, India - 600 002 T: +91 44 4299 5000 | F: +91 44 4299 5050 | [email protected] | www.equitasbank.com Toll Free: 1800 103 1222 | CIN No.: U65191TN1993PLC025280#2Q4FY21 Investor Presentation équitas Equitas Small Finance Bank#3Disclaimer equitas Equitas Small Finance Bank 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 contents hereof are restricted for only the intended recipient(s). This document and the contents hereof should not be (forwarded or delivered or transmitted in any manner whatsoever, to any other person, other than the intended recipients(s) or reproduced in any manner whatsoever. Any forwarding, distribution or reproducing of this document in whole or in part is unauthorized. 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. 2#4Table of Contents 01 KEY HIGHLIGHTS equitas PAGE 05 quta THE BANK BEHIND EVERY 02 FINANCIAL PERFORMANCE PAGE 10 CHAMPION CHENNAI SUPER KING PL Gulf THALA 03 ADVANCES PAGE 14 04 LIABILITIES & BRANCH BANKING PAGE 22 05 DIGITAL BANKING SIPL Myntra 06 FINANCIALS PAGE 30 PAGE 33#5Liability Franchise Evolution equitas 1,124 2,401 2,729 3,323 4,311 9.63% 4,135 8.76% 4,682 5,097 4,726 5,176 5,222 4,769 5,056 4,672 6,395 4,909 9.12% 8.27% 141 8.05% 8.14% 8.18% 8.23% 7.96% 7.96% 136 7.82% 7.77% 7.63% 7.39% 118 7.43% 7.10% 100 101 101 99 94 95 96 92 90 91 91 84 105 109 98 89 82 5,869 4,983 70 68 5,500 62 587 3,811 4,377 59 58 2,170 56 837 634 1,636 2,600 3,075 1,210 742 717 50 48 41 40 35 34 5,614 1,638 589 1,212 1,838 1,984 2,021 2,274 2,237 3,246 882 3,967 2,249 25 2,196 2,208 2,354 3 15 16 16 16 12 13 14 15 16 17 12 9 10 7 ¦Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Theme Team Build Out Product Development Retail Deposits Digital Initiatives CASA (Rs. Cr) Retail TD (Rs. Cr) Bulk TD (Rs. Cr) Liability Fee Income (Rs. Cr) Acquisition ('000) Liability Opex (Rs. Cr) Cost of Funds (%) 4#6Key Highlights equitas LO#7Operational Quarterly Snapshot Asset Offerings 17 States and UTs Gross Advances: Rs. 17,925 Cr [Rs. 15,367 Cr] SBL-44%, VF-25%, MFI- 18%, MSE-7%, NBFC-4% 岛 Liability Profile Total Deposits: Rs. 16,392 Cr [Rs. 10,788 Cr] equitas Equitas Small Finance Bank Financials PAT: Q4FY21 Rs. 113 Cr [Rs. 43 Cr] FY21 Rs 384 Cr [Rs. 244 Cr] ATM 861 Banking Outlets 332 ATMs III 296 Business Correspondents Disbursements: Rs. 2,535 Cr [Rs. 2,405 Cr] ***** SBL-38%, VF-29%, MFI - 26%, MSE -5%, NBFC - 2% Asset Quality: GNPA: 3.59% [2.72%] NNPA: 1.52% [1.67%] PCR: 58.59% [45.22%] Third Party Products: Insurance Premium Collected Rs. 35.82 Crs [Rs. 18.27 Cr] Mutual Fund AUM Rs. 132 Cr [Rs. 101 Cr] Daily Average Cost of Funds: 7.20% SA 6.50%, TD - 7.42% Shareholders funds CRAR 24.18% Tier-23.23% Tier II 0.95% NIM: Q4FY21-7.57% [9.54%] 39+ Lac total customers 16,556 employees Yield on Gross Advances: 17.50% [19.48%] Deposits Per Branch (branch banking outlets): Rs. 43 Cr [Rs. 28 Cr] ROA: 1.80% [0.91%] RoE: 13.52% [6.31%] Figures in [] represent Q4FY20 data SBL Small Business Loans, VF - Vehicle Finance MF - Micro Finance, MSE - Micro & Small Enterprise 6#8Highlights Advances: • Advances as of Q4FY21 was at Rs. 17,925 Cr, Advances growth of 17% YoY • Disbursed Rs. 2,535 Cr in Q4FY21 81.37% of advances is secured loans • New Product - Used Car Advances cross Rs. 120 Cr • Collection & Billing efficiency for the month of March 2021 at 108.51% and 91.12% respectively • Collection efficiency nears pre-covid levels: • equitas Equitas Small Finance Bank • • MFI X Bucket Collection efficiency for the month of March 2021, December 2020 & Feb 2020 at 98.70%, 98.30% & 98.50% respectively SBL X Bucket Collection efficiency for the month of March 2021, December 2020 & Feb 2020 at 99.60%, 99.05% & 99.41% respectively VFX Bucket Collection efficiency for the month of March 2021, December 2020 & Feb 2020 at 98.85%, 95.72% & 96.50% respectively Liabilities: • Acquired 4.76 lac liability accounts in FY21 as compared to 1.59 lac in FY20 • Deposits excluding CD at Rs. 16,319 Cr, growth of 58% YoY and 4% QoQ • • Retail TD at Rs. 5,869 Cr, growth of 54% YoY and 7% QoQ Savings Account deposits at Rs. 5,094 Cr, growth of 174% YoY and 45% QoQ CASA stood at Rs. 5,614 Cr, CASA is 34% of Total Deposits 7#9Highlights Profit & Loss: • Net Interest Income for Q4FY21 at Rs. 449 Cr as against Rs. 424 Cr in Q4FY20. NIM at 7.57% • Core Income (Net Income other than PSL Fees, Treasury & Others) at 84% • PBT before provisions and write off for Q4FY21 at Rs. 250 Cr as against Rs. 188 Cr in Q4FY20, growth of 33% PAT for Q4FY21 at Rs. 113 cr as against Rs. 43 Cr in Q4FY20, growth of 162% equitas Equitas Small Finance Bank Asset Quality, Provisioning & Restructuring: • • During the quarter the Bank has written off Rs. 171 Cr in the Micro Finance portfolio Loan loss and provision for FY21 was Rs. 375 Cr as against Rs. 247 Cr in FY20. The Bank holds a management overlay provision* of Rs. 153 Cr crore as of 31st March 2021 GNPA at 3.59% in Q4FY21 as compared to 4.16% (proforma approach) in Q3FY21 and 2.72% in Q4FY20 NNPA at 1.52% in Q4FY21 as compared to 1.71% (proforma approach) in Q3FY21 and 1.67% in Q4FY20 • Credit Cost for FY21 at 2.26% • Provision coverage ratio at 58.59% • Bank holds cumulative provision (standard asset + floating + provision for NPA) of 2.56% of advances *Management Overlay Provision - Provision carried in excess of the regulatory requirement 8#10Empty#11Financial Performance equitas Equitas Small Finance Bank 10#12Key Ratios Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 7.77% 7.56% 7.36% 7.27% 7.20% 9.54% 8.63% 9.02% 8.47% 6.54% 7.57% 5.81% 5.89% 6.02% 5.58% 1.15% 0.91% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Credit Cost GNPA & NNPA GNPA NNPA Provision Coverage Ratio equitas Equitas Small Finance Bank 1.88% 1.83% 1.80% illl Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 RoE 3.47% 1.77% 2.08% 2.96% 2.20% 2.72% 2.68% 2.39% 4.16% 3.59% 45.22% 48.79% 58.84% 59.88% 58.59% 6.31% 8.32% 14.44% 14.32% lali mli ülll üll تاتتا 1.50% 1.39% 1.40% 1.71% 1.52% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 13.52% اللت Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 11#13Net income evolution (in Rs. Cr) Income Evolution Movement in NIM 461 484 424 449 404 178 146 74 64 30 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 NII Other Income Non-interest income * evolution 28.45% 23.22% 2.89% 14.79% 12.13% 2.30% 6.83% 1.11% 1.52% 0.57% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 8.47% equitas Equitas Small Finance Bank Q3FY21 Q3 & Q4FY21 -0.33% 0.30% 7.57% -0.63% -0.24% Q3FY21 NIM Ex-Gratia NPA impact Yield on Advances Cost of funds Q4FY21 NIM Other Income Break-up (Rs. Cr) 1% 25% 86% 39% 34% Banking Fees & Other Charges 14% Distribution Fee Income Non Interest Income as a % of assets Non Interest Income as a % of Net Income * Non Interest Income = Other income + PSLC fee income | Net Income is NII + Other Income + PSLC | Liabitlities Segment Fee Income PSLC Fee Income Asset Segment Fee Income Treasury Gain/Loss [Net] 12#14Opex Evolution equitas Rs Cr Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Employee expenses 187 194 188 205 204 Other expenses 100 78 99 131 153 Switching fee and other expenses 0.02 0.01 5 12 30 (Prepaid Card) Depreciation 22 19 19 19 19 Total Operating expenses No. of employees Opex evolution 309 292 305 355 377 16,104 15,843 15,879 16,036 16,556 6.54% 67.27% 6.02% 5.89% 5.58% 62.14% 5.81% 58.15% Λ 58.10% 56.35% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 -Cost to Assets % -Cost to Income % Cost to income (%) Opex / Net Income [ Total Income- Finance Cost]| Cost to assets (%) - Opex/ Total Assets, ^ Income considering net-off switching fees & prepaid card expense 13#15Advances equita Cas Equitas Small Finance Bank 14#164,530, 25% Advances Evolution & Diversified Book Rs Cr equitas Equitas Small Finance Bank Q4FY21 Q4FY20 YoY Growth % 783, 4% 225, 1% 1,180, Micro Finance 3,236 3,616 -11% 3,236, 7% 18% Small Business Loans (Incl. HF) 7,971 6,279 27% Vehicle Finance 4,530 3,760 20% MSE Finance 7,971, 45% NBFC Others + | Micro Finance MSE Finance Small Business Loans Vehicle Finance INBFC Others Gross Advances 1,180 669 76% 783 818 -4% 225 224 1% 17,925 15,367 17% t Others includes loan-against-gold, unsecured business loans, overdrafts against fixed deposits and staff loans | Housing Finance (HF) | Micro Small Enterprises (MSE) 15#17t Advances Evolution & Diversified Book equitas Equitas Small Finance Bank Rs Cr Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Micro Finance 3,616 3,618 3,641 3,491 3,236 Small Business Loans (Incl. HF) 6,279 6,484 7,052 7,496 7,971 Small Business Loans 4,995 5,152 5,580 5,890 6,229 Housing Finance 604 629 715 834 959 Agri Loans 680 703 757 772 785 Vehicle Finance 3,760 3,777 4,137 4,275 4,530 Used CV 2,625 2,628 2,835 2,862 2,971 New CV 1,135 1,149 1,302 1,413 1,559 MSE Finance 669 712 936 988 1,180 NBFC 818 772 734 898 783 Others+ 225 210 231 225 225 Gross Advances 15,367 15,573 16,731 17,373 17,925 16 Others includes loan-against-gold, unsecured business loans, overdrafts against fixed deposits and staff loans | Housing Finance (HF) | Micro Small Enterprises (MSE)#18Micro Finance Industry Comparison Average loan O/S per Unique Borrower For Select States Average Ticket Size at Disbursement equitas Equitas Small Finance Bank Tamil Nadu Karnataka Maharashtra Madhya Pradesh (Rs.) Q2FY21 Q3FY21 Q4FY21 Industry 36,906 37,177 36,787 35,330 Industry 35,652 33,245 Not Reported Equitas Small 19,260 15,314 15,802 16,491 Equitas Small Finance Bank 20,000 26,000 30,000 Finance Bank Industry PAR and Equitas As on Dec 2020 As on Mar 2021 PAR >30 PAR >60 PAR >90 PAR >30 PAR >60 PAR >90 Industry 12.93% 8.31% 4.88% Not Reported Equitas Small Finance Bank 9.67% 6.99% 5.22% 6.46% 4.78% 3.41% Source: Micrometer as on 31st December 2020 17#19Product Segment Details equitas Equitas Small Finance Bank Number of Product Segment Live Loans ATS @ Disbursement (Lacs) ATS @ Portfolio (Lacs) PCR GNPA (%) (%) Micro Finance 18,36,400 0.30 0.18 3.41% 84.55% Small Business Loans (Incl. HF) 2,33,928 5.74 3.41 3.34% 36.65% Vehicle Finance 1,36,121 4.10 3.33 3.75% 60.79% MSE Finance 1,750 51.98 67.41 2.83% 24.19% NBFC 245 2,002 319.45 0.70% 15.00% NBFC Exposure Mix MSE Finance Small Business Loans Ticket Size Split Vehicle Finance Ticket Size Split 13% 32% 38% 40% 32% 29% 25% 58% 17% 51% 35% 30% Manufacturing Trading Less than Rs.5 lakhs MFI AFC HFC Services Rs. 5 to Rs. 10 lakhs Above Rs. 10 lakhs ATS stands for Average Ticket Size Less than Rs.5 lakhs | Rs. 5 to Rs. 10 lakhs | Above Rs. 10 lakhs 18#20Disbursements Product Wise Rs Cr equitas Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Micro Finance 814 132 390 596 655 Disbursement (Rs. Cr) Small Business Loans (Incl. HF) 682 266 708 873 960 2,535 2,461 2,405 Small Business Loans 532 204 523 654 703 Housing Finance 92 30 115 151 189 Agri Loans 58 32 70 68 68 1,902 Vehicle Finance 592 104 508 621 723 Used CV 419 70 309 392 460 New CV 173 34 199 229 263 MSE Finance 135 36 85 100 123 NBFC 171 19 166 245 51 564 Others 11 7 45 26 23 Total Disbursements 2,405 564 1,902 2,461 2,535 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 19#21Asset Quality Trend equitas 4.16% 3.59% 2.72% 2.68% 2.39% 1.50% 1.39% 1.71% 1.09% 1.52% 266.17 417.32 228.61 416.67 213.37 399.65 179.92 722.62 289.90 642.78 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 GNPA (Rs. Cr) INNPA (Rs. Cr) GNPA % NNPA % Gross NPA Movement (Rs Cr) Opening GNPA Balance Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 417.96 417.32 416.67 399.65 387.60 94.13 15.39 22.92 36.47 514.59 Add: Additions during the period Less: i. Upgradations 39.73 3.19 10.62 11.57 12.63 ii. Recoveries (excluding recoveries made from upgraded accounts) 33.26 4.69 15.82 18.65 42.01 iii. Technical or Prudential write-offs 4.79 5.21 5.54 5.28 175.81 Write-offs other than those under (iii) above 16.99 2.95 7.96 13.02 28.95 Closing GNPA Balance 417.32 416.67 399.65 387.60 642.78 20#22Product Segments Collection Efficiency equitas Equitas Small Finance Bank Collection Efficiency December 2020 Billing Efficiency December 2020 Collection Efficiency March 2021 Billing Efficiency March 2021 Micro Finance 97.98% 91.29% 93.44% 91.90% Small Business Loans 104.56% 90.56% 106.56% 91.48% Vehicle Finance 108.39% 82.25% 113.84% 87.74% MSE Finance 192.55% 88.88% 180.26% 89.04% Corporate Total 149.36% 94.51% 174.91% 99.91% 105.36% 88.73% 108.51% 91.12% 1. 2. Collection efficiency represents total collections during the month as a percentage of March months total EMIs due Billing efficiency represents only the EMIs of March alone collected as a percentage of March months total EMIs due. The March month total EMIs includes EMIs of accounts which are in NPA also and not just standard assets Major Product Segments X Bucket Collection Efficiency X Bucket Collection Efficiency X Bucket Collection Efficiency March 2021 December 2020 Feb 2020 Collections touch pre-Covid levels Small Business Loans Vehicle Finance 99.60% 99.05% 99.41% 98.85% 95.72% 96.50% Micro Finance 98.70% 98.30% 98.50% 21#23Liabilities & Branch Banking equita Cas Equitas Small Finance Bank 22#24Update for Q4Y21 Customer Deposits Evolution as on 31 March 2021 Balance (Cr) as a % of total borrowings (Rs. 21,257 Cr) as a % of total deposits (Rs. 16,392 Cr) Avg. balance (Branch Banking Customers) Customer Deposits evolution (Rs. Cr) equitas Equitas Small Finance Bank CA SA CASA TD [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] CASA+TD [Customer Deposits] 520 5,094 5,614 10,705 16,319 2% 24% 26% 50% 77% 3% 31% 34% 65% 99.6% 94,188 75,144 7,33,521 Daily Average Cost of Deposits (%) 7.58% 11,724 7.49% 10,705 7.39% 9,117 9,342 7.53% 7.47% 8,092 7.38% 7.17% 5,094 3,524 7.16% 6.98% 6.98% 2,845 1,859 2,024 350 330 401 442 Q4FY20 Q1FY21 Q2FY21 Q3FY21 CA SA TD 520 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Cost of Customer Deposits -Cost of Deposits + Cost of Customer Deposits = Interest paid on Customer Deposits as a % of Average Customer Deposits | Customer Deposits = CASA + Term Deposits Cost of Deposits Interest paid on Total Deposits as a % of Average Total Deposits | Total Deposits = Customer Deposits + Certificate of Deposits [CDs] Figures in {} represent CA as a % of CASA = 23#25Customer Deposit Profile Mass Affluent Customer* (Deposit in Rs. Cr) Savings Account Value Slabs Deposits by Category 27% 2,107 1,906 1,703 1,526 1,392 3,262 16% 2,378 1,786 930 1,188 6% O 22% OTHERS 4% TRUSTS 5% 28% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 < 1L 1L to <10L 10L to <1Cr 1Cr to <10Cr 10Cr + Elite Wings GOVT./LOCAL BODIES 7% Term Deposits (TD) % 63% 53% 52% 53% 55% 35% 53% 47% 45% 47% 48% 47% 37% Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Retail TD Bulk TD Term Deposits Value Slabs O 10% |< 2Cr 2Cr to <10Cr 10Cr+ *CASA and TD balances of Premium (Wings & Elite) CASA account holders | Retail TD as defined by RBI PVT.CORPORATES 8% equitas Equitas Small Finance Bank BANKS 27% 55% INDIVIDUALS + PARTNERSHIP FIRMS + PROPRIETORSHIP 50% FIRMS + HUF 24#26Term 12.0% 121.51 Q1FY21 Overview of TPP Business MF AUM (Rs. Cr) Premium Collected (Rs. Cr) 127.16 138.41 132.27 Q2FY21 Q3FY21 Q4FY21 Life Insurance Policies Sold in Q4FY21 ULIP 10.0% Others 1.0% Traditional 77.0% General Insurance Policies Sold in Q4FY21 I GI 9.76 8.92 7.40 26.06 6.88 9.82 6.84 8.88 Q1FY21 Q2FY21 Q3FY21 # Of Policies Issued Others 11.0% Motor 9.0% ΟΙ Grp H&PA 80.0% Q4FY21 GI equitas Equitas Small Finance Bank 29,606 16,520 14,923 11,609 2,590 3,512 3,058 4,993 Q1FY21 Q2FY21 Q3FY21 Q4FY21 25#27Debit Card & Spends Snapshot Cards Issued 2,44,021 1,58,528 95,278 93,890 1,15,073 58,863 Debit Card Transaction Trend equitas Equitas Small Finance Bank 4,07,675 1.50 1.50 1.50 1.70 1.80 1.80 1.90 2.00 1.80 1.50 1.20 1.30 1.30 0.80 0.70 26 27 25 22 23 25 28 32 35 37 40 38 42 11 15 Others Rupay Platinum Visa Visa Signature Platinum Visa Classic Visa Virtual Debit Rupay Classic Month on Month FasTag Issuance 28,860 26,668 24,037 22,623 18,247 16,289 15,323 10,725 7,443 7,847 2,828 May June July Aug Sept Oct Nov Dec Jan Feb March Month on Month FasTag Issuance Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Spends (Rs. Cr) Jul-20 Aug-20 Sep-20 Transaction Count (in Lakhs) Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Unique Card Transactions - ATM 96,858 79,840 83,352 88,740 86,408 88,972 74,635 66,145 59,598 55,226 45,501 35,214 April May June July Aug Sept Oct Nov Dec Jan Feb March 26#28As on 31 March 2021 3% 1% 0.3% Funding Profile 0.1% 19% 26% equitas In Rs Cr December 2020 March 2021 TD 11,724 10,705 Refinance 5,047 3,934 TD CASA CASA 3,967 5,614 Refinance CD 171 73 50% IBPC Sub Debt 220 220 Sub-ordinated Debt Certificate of Deposit IBPC 300 700 RBI Borrowing RBI Borrowing 11 Total Borrowings 21,429 21,257 7.77% 7.56% Daily Average Cost of Funds 7.39% 7.27% 7.20% 6.43% 6.49% 6.50% 6.03% 5.86% 8.23% 8.06% 7.90% 7.62% 7.42% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 IDeposit cost - SA Deposit cost- TD Cost of Funds 27#29Investments Treasury The Bank's total investment portfolio of Rs. 3,705 Crore comprises of SLR and Non-SLR securities as given below: Category (Rs. Cr) SLR Non SLR Total Book Value 3,631 74 equitas 3,705 During the quarter, the Bank participated in equity primary market. Profits realised in those equity IPOs amounted to Rs. 2 Crore PSLCS: . During the quarter, Bank sold PSLCs worth Rs 3,000 Crore . Income booked on sale of PSLCS for this quarter amounted to Rs. 44.6 Cr which includes Rs. 5.8 Cr received in Q3FY21 Borrowings & Liquidity: • The Bank's Certificate of Deposit (CD) programme for Rs. 1,000 Crore has highest rating from at CRISIL A1+ • The Bank has adequate room available to avail refinance or raise funds through IBPC (with mix of PSL / Non-PSL) whenever required which provides strong cushion to ALM position of the Bank. • The Bank has currently maintains 'surplus' liquidity in the form of High Quality Liquid Assets (HQLA) 28#30State Wise Advances Pan India Presence State Wise Deposits Banking Outlets Uttar... 0.13% Chandigarh 0.32% Pondicherry | 0.34% Pondichery 0.34% Telangana 2% 01 Himachal Pradesh Andhra... 2% . 26 Punjab 01 Chandigarh 01 Uttarkhand Chattisgarh 1% Uttar... 2% 25 Haryana Delhi .14 Punjab 1% Chattisgarh 4% 62 Rajasthan 06 Uttar Pradesh Andhra... 2% Madhya... 4% 58 Delhi 2% Gujarat 4% 53 Gujarat Madhya Pradesh 24 Chattisgarh Telangana 2% Chandigarh 5% Haryana 2% Rajasthan 5% 148 Maharashtra 14 Telengana Madhya... 3% Haryana 6% 17 80 Andhra Pradesh Karnataka Gujarat 4% Delhi 6% 04 Rajasthan 4% Karnataka 9% 327 Puducherry Tamil Nadu Karnataka 10% Punjab 9% Maharashtra 13% Maharash... 17% 54% 25% Tamil Nadu Tamil Nadu equitas Equitas Small Finance Bank#31Digital Banking equita Cas Equitas Small Finance Bank 30#32Partnering with Neo Banks Digital 2.0 Digital Banking setup as a separate Business Unit Digital Banking Focus Areas Collaboration via Fintech Programs Building up of Digital Assets Digital Payments, Acquiring & Prepaid Dedicated Digital Banking Sales & Relationship Team Strengthing of Digital Channel equitas Equitas Small Finance Bank Digital Financial Inclusion through Business Correspondents Developing Digital Transaction Banking Digital Transformation & Digital Garages (internal digitization projects, digital journey, process enhancements etc.) 31#33Key Highlights for Q4FY21 equitas Equitas Small Finance Bank Neobanking Niyox • 2 in 1 Wealth + Savings A/c • Launched in Mar'21 • 100,000+ downloads • 30,000+ accounts Groww • Online FD Opening • Pilot program in progress Prepaid Engagements • Gift Cards • 100 Mn+ transaction throughput • Prepaid Cards to Cooperative Societies • Virtual Cards • Virtual card program initiated •Cashless Campus Programs • Digital Payments & Acquisitions • Fastag Acquiring • 78,000+ tags issued • 1.3 Bn+ transaction throughput • Multiple Toll Plazas and Parking Terminals being acquired • Micro-ATM Services • 37 Bn+ transaction throughput • 10 Mn+ transactions processed • UPI QR Acquiring • 92 Mn+ transaction throughput • 100,000+ transactions • POS Acquiring • 3.4 Bn+ transaction throughput Digital Transaction Banking • Corporate Payment Services • 6.6 Bn+ transaction throughput 200,000+ transactions processed • Aadhaar Enrolment & eKYC • 60,000+ enrolments across 75 branches ~300,000 successful Auth and eKYC transactions Digital Channels •Mobile Banking • ~40% Registration rate • UPI enabled • Internet Banking • 30% penetration of FDs • Video Banking ⚫ 9 Services Live • Same services to be exposed to Neo banking partners • BOT Banking • FAQs Bot implemented • IVR Integration Digital Transformation • Launched Video KYC • Launched Video- Banking and DIY . services on IB & MB Revamped UI/UX for MB • Online Lead Generation for Account Opening • 680,000+ transactions 32#34Financials equitas Equitas Small Finance Bank 33#35Particulars (in Rs Cr) Capital & Liabilities Balance Sheet equitas Equitas Small Finance Bank Mar-21 Mar-20 YOY% Dec-20 QoQ% Capital 1,139 1,053 8% 1,138 Reserves & Surplus 2,257 1,691 33% 2,143 5% Networth 3,396 2,744 24% 3,281 4% Deposits 16,392 10,788 52% 15,862 3% Borrowings 4,165 5,135 -19% 5,266 -21% Other Liabilities & Provision 762 628 21% 986 -23% 24,715 19,296 28% 25,395 -3% Total Assets Cash and Balances With Reserve Bank of India 515 381 35% 502 3% Balances With Banks and Money At Call and Short Notice 2,864 2,156 33% 3,547 -19% Investments 3,705 2,343 58% 3,766 -2% Advances 16,848 13,728 23% 16,797 Fixed Assets 185 213 -13% 188 -2% Other Assets 598 475 26% 595 1% Total 24,715 19,296 28% 25,395 -3% AUM [On Book + Off Book] 17,925 15,367 17% 17,373 3% 34#36Profit & Loss Statement equitas Equitas Small Finance Bank Particulars (in Rs Cr) Q4FY21 Q4FY20 YOY% Q3FY21 QoQ% Interest Income from Loans 736 668 10% 773 -5% Income on Investments 59 37 59% 60 -2% Interest on balances with Reserve Bank of India and other inter bank funds 23 20 15% 24 -4% Total Interest Income 818 726 13% 857 -5% Finance Cost Interest on deposits Interest on RBI / inter-bank borrowings Other interest Total Finance Cost Net Interest Income 275 201 37% 259 6% 1 6 -83% 2 -50% 94 94 112 -16% 370 302 23% 373 -1% 449 424 6% 484 -7% Other Income Processing and Other Fees 61 44 39% 50 22% Interest on Securitization / Assignment 0 1 -100% 3 PSLC Fee Income 45 9 400% 17 165% Gain on Sale of G-Secs 2 2 38 -95% ATM Acquirer Fee Income & TPP Income 15 10 10 50% 17 -12% Others 55 8 588% 22 150% Total Other Income 178 74 141% 146 22% 35#37Profit & Loss Statement equitas Equitas Small Finance Bank Particulars (in Rs Cr) Net Income Employee Cost Opex Q4FY21 Q4FY20 YoY% Q3FY21 QoQ% 627 498 26% 630 204 187 9% 205 173 122 42% 150 15% Total Operating Expenditure 377 309 22% 355 6% PBT before provision & Write-off 250 188 33% 275 -9% Credit Cost 97 130 -25% 126 -23% PBT 153 58 164% 149 3% Taxes 40 15 167% 38 5% PAT 113 43 163% 111 2% 36#38Thank You equitas Equitas Small Finance Bank 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