Equitas Small Finance Bank Limited — PPTs, 31-01-2025: Investor Presentation

**Financial Highlights:** For Q3FY25, Equitas Small Finance Bank reported a total PAT of ₹66 Cr, a significant decline from ₹202 Cr in Q3FY24, impacted by rising provisions. Gross advances grew by 14% YoY to ₹37,344 Cr, with total deposits rising 26% YoY to ₹40,738 Cr. The cost of funds increased to 7.49%, while NIM decreased to 7.39%. Asset quality saw GNPA at 2.97%, improving in NNPA at 0.96%.

**Strategic Initiatives and Growth Drivers:** The bank continues to diversify its portfolio, with non-MFI loans growing 20% YoY, driven largely by a 27% rise in Small Business Loans. Equitas aims to reduce reliance on microfinance, focusing instead on higher-yield secured loans. New initiatives like the Selfe Loan app are contributing positively to loan disbursements.

**Business Developments:** The bank's capacity has been bolstered with nearly 1,000 new employees added in the quarter, enhancing collection efforts amid a cautious approach to microfinance.

**Market Position and Competitive Advantage:** Equitas maintains a strong position with a diversified loan book, enhanced by its growing digital capabilities and innovative financial products aimed at underserved market segments.

**Investor Implications:** Despite the decline in profitability, the bank's strategic shift towards secured lending and digital initiatives positions it favorably for long-term growth. Investors should watch closely for improvements in credit quality and profitability as these initiatives take shape.