Accomplishments of 2019-20

Introducing our capitals
for value creation

Financial Capital

Customer deposits, loans and advances, shareholder equity, retained earnings, among others, constitute our financial capital.

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`19,315 crores

Balance Sheet Size

`15,367 crores

Advances

`10,788 crores

Deposits (including CD)

HUMAN CAPITAL

Our people, their diverse skill sets, proven expertise, and deep industry knowledge constitute our human capital.

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16,106

Employees

97

Culture Workshop

45,043

Man Hours of E-Learning Programmes

SOCIAL AND RELATIONSHIP CAPITAL

We take a holistic approach to sustainable value creation by nurturing our long-standing relationships, which constitutes our social and relationship capital.

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24,19,063

Customer Base

3,838

Merchants/Partners

5,94,777

CSR Beneficiaries

MANUFACTURED CAPITAL

Our pan-India distribution network comprising banking outlets, ATMs, and other customer touchpoints constitute our manufactured capital. It also includes our IT infrastructure.

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854

Banking Outlets

322

ATMs

242

Business Correspondents

INTELLECTUAL CAPITAL

The knowledge and expertise embedded within our systems, processes and procedures, along with the Equitas brand, constitute our intellectual capital.

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26

RPA Bots

21

API Libraries

1,71,861

Mobile Banking Users

NATURAL CAPITAL

Although banking by nature of operations is considered environment friendly, our operations do require direct and indirect utilisation of natural capital. We undertake a host of initiatives to minimise our impact on natural capital.

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50,000

Saplings Distributed

96,758

Paperless Account Opening

Chairman’s Insights

Taking confident strides
into an inclusive future


In FY20, ESFB sustained its growth momentum, despite a set back to depositor confidence due to worrying events in certain co-operative and private sector banks and a slowing economy.

Arun Ramanathan
Part-Time Chairman and
Non-Executive Independent Director

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MD & CEO Communiqué

Leveraging our robust
fundamentals to deliver
sustainable value


As a modern, technology-driven bank, we remain steadfast in our commitment to finance the underbanked segment by channelling deposits generated from affluent and mass affluent segments.

P. N. Vasudevan
MD & CEO

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Key Performance Indicators

Reflecting our strong fundamentals

Balance Sheet Size

(` crores)


23%
Net Worth*

(` crores)


22%
Capital Adequacy Ratio

(%)

* Net Worth represents sum of capital and reserve and surplus

Comprehensive Offerings

Tailored to meet customers’ evolving needs

Micro Finance

Agri Loan

Small Business Loans

Loan Against Property

Affordable Housing Loan

Micro Finance

We are developing a banking relationship with our members by extending more savings and protection solutions apart from financing their dreams products that they require.

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Small Business Loans

The Bank licence gave us the opportunity to provide Working Capital Loans, apart from Term Loans to enterprises. We aspire to become the sole banker for these MSMEs and address their working capital needs backed by technology-driven services.

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Used Commercial Vehicle Finance

New Commercial Vehicle Finance

Used Passenger Cars

Vehicle Finance

We focused on growing new commercial vehicle finance by leveraging the existing team and emphasised on Light Commercial Vehicles (LCVs) as we anticipated this segment to have limited impact due to the economic slowdown.

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Term Loans

Working Capital Loans

Micro and Small Finance (MSE) Finance

The Bank licence gave us the opportunity to provide Working Capital Loans, apart from Term Loans to enterprises.

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Corporate and NBFC Finance

Being an NBFC that focused on the informal segments for over 10 years, we have developed an understanding of this sector. Our mid-corporate and NBFC financing helps us leverage this insight and relationships built to better leverage our capital.

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Business Correspondents

Doorstep Services

Retail Deposits and Third-party products

Elite – Premium Banking Services

NRI Services

Wealth Management

Gold Loans

Liabilities

We are growing our retail deposit base through differentiated ‘value for money’ banking products and services. We have emerged as a strong alternative for customers banking with a traditional regional bank in their locality.

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Third Party Products

Customers enjoy a one-stop shop for all their investment and insurance needs with us.

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Strategic Focus

Building a robust banking franchise

Investment Thesis

A proxy to ‘self-reliant’ India theme

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Return Ratio Trends (%)

Social Impact

Empowering through inclusion

We have developed a wide range of ecosystem initiatives towards
improving the quality of life of people belonging to the Economically
Weaker Sections (EWS) and Low Income Groups (LIG).

Business Model

Designed to deliver
quality growth

The segment we operate in is full of exciting opportunities for us to lead in energising communities. Capitalising on our strengths, we focus on creating value for our stakeholders.

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Financial Capital

Net Profit: `243.64 crores

Human Capital

Employee base of 16,104 as on March 31, 2020

Social & Relationship Capital

5,94,777 CSR beneficiaries

Manufactured Capital

Extensive network of branches and ATMs among Small Finance Banks

Intellectual Capital

Industry first features like ‘Facial Recognition on mobile banking app’ introduced to provide enhanced security

Natural Capital

50,000 saplings distributed

Technology Initiatives

Adopting a ‘digital first’ approach

We have achieved significant scale over the past three years through prudent deployment of technology to provide superior experiences to our customers. Besides building efficiency through automation, digital technologies have widened our reach and helped us grow at a faster pace without increasing our operating costs.

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In line with our ‘digital first’ approach, we relaunched the Selfe platform during the year under review to provide customers an even faster digital onboarding option from the comfort of their homes. A customer can now open a savings account or a fixed deposit account in under 5 minutes using their Aadhaar and PAN numbers. We also introduced a Tab-based onboarding facility for bank personnel, to meet prospective customers and complete their onboarding digitally, in minutes. Encouraged by the success of this initiative, we plan to further elevate delivery experience with customer lifecycle management featuring video-enabled KYC fulfilment and virtual relationship manager (RM) interactions.

We are live on various National Payments Corporation of India (NPCI) payment products, offering services like Micro ATM (AePS/Card+PIN enabled), and UPI/IMPS/ eNACH, prepaid cards and ETC‑enabled through API plugins for partners and clients to avail payment services through direct (host to host) integration, lending greater flexibility and scale of business. We set up our own Data Exchange Model (DEM) for Cheque Truncation System (CTS) with enhanced security, replacing the existing Clearing House Interface (CHI). We implemented a Data Mart for centralised MIS reporting and analytics.

Marketing Initiatives

Creating top of the mind recall

Our marketing strategy is focused on creating a strong community connect. We utilise multiple channels for digital communication with granular targeting to win customers across geographies.

We have launched several initiatives in recent years to build the brand of our Bank and increase recognition in the communities we serve. These initiatives include Equitas Gurubhyo Namah, Equitas Tour A Bank, Equitas Go Green, Equitas Banking Golu, and Doctor on Wheels; these initiatives have typically been centred around religious festivities and other occasions. In addition, we believe our ongoing social initiatives in certain communities have resulted in strong brand equity for the ‘Equitas’ brand. We have done on an average 1,600 activity on month on month basis in branch catchment.

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Environmental Initiatives

Towards a sustainable future

Although banking operations have limited negative impact on the environment, we constantly endeavour to adopt eco-friendly processes and create awareness on sustainable practices among our stakeholders. At every CSR event, we ask our guests to plant two saplings near the event premises; 5,182 saplings were planted in 2019-20.

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We partnered with EXNORA INTERNATIONAL, an environmental services organisation, to spread awareness on solid waste management in our schools.

We optimise our energy consumption by keeping a close eye on Heating, Ventilation and Air Conditioning (HVAC) run-time, installing CFL and other low energy consuming office equipment, and limiting the use of printers and copiers.

Our liability team ran two campaigns:

1) 50,000 saplings were distributed for each new account opened

2) 25,000 tulasi plants were distributed

We are leveraging technology to reduce paper consumption in our operations. Tab-based loan processing in Microfinance, Selfe FD and Selfe savings account opening are among a host of initiatives undertaken for paperless banking.