Cover Story

Emerging stronger. Together.

There comes a time when dramatic changes disrupt the very way of life, throwing open unprecedented challenges and testing our abilities to survive and thrive. The COVID-19 pandemic is one such crisis that brought to the fore the resilient spirit of humanity as a whole.

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98%

Customers availed moratorium benefits during the first phase

35%

Customers at the end of the moratorium period

2.26%

Full year credit cost

Operational Highlights

Reflecting on a year like no other

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Q1

Focus on employees and customers

Q2

Customer engagement and ramping up digital initiatives

Q3

Collections

Q4

Emergence out of COVID

Chairman’s Insights

We owe our resilience to our customers

Dear Stakeholders,

I am happy to present to you the second Integrated Annual Report of Equitas Small Finance Bank Limited (ESFBL) and trace our progress towards building a stable, scalable and sustainable Bank.

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

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02

MD & CEO’S COMMUNIQUÉ

MD & CEO Insights

Expanding horizons with conviction

Dear Stakeholders,

We have emerged stronger every time, aided by our strong belief in building a stable, sustainable and scalable organisation, backed by our core values of fairness and transparency, customer first, pride of performance, and respect for people.

P. N. Vasudevan MD & CEO

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01

Chairman’s Insights

Who
We Are

Tough times never last, but tough people do. Our belief in this adage remains unchanged as we navigate through a once-in-a-century global crisis.

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Customer centricity

Enriching customer lifecycle

Investor relations

Robust visibility among market participants

Business intelligence unit

Augmenting data-led decision-making
  • Value creation model
  • Strategic focus areas
  • Stakeholder engagement
  • Risk management

How we create value

Value creation model

Value creation model

Financial

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Input

  • Deposits
  • Loans
  • Shareholders’ funds

Core business activities

Out offerings/ segments

  • Inclusive Banking
  • Emerging Enterprise Banking
  • MSE Finance
  • NBFC Finance
  • Consumer Banking

Outcomes

Net interest income

`384.22 crores

RoA

1.70%

GNPA

3.59%

RoE

12.70%

NNPA

1.52%

Manufactured

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Input

Banking outlets

Business correspondents

ATMs

Corporate Office and data centres

Outcomes

The largest network of banking outlets in the SFB sector with an equally large ATM network

Over 96.37% of transactions were done through digital channels in FY21

Mobile app offers over 18 DIY/Assisted Services

Enhanced customer-centricity page 14

Human

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Input

Employee base

Employee benefits

Learning & Development

Employee engagement initiatives

Outcomes

Employee base of 16,556 as on March 31, 2

2,762 man days of classroom learning programmes conducted in FY21

2,97,450 man hours of e-learning programmes in FY21

12,823 man days of VC learning programmes conducted in FY21

Women employees constitute 10.27% of the total workforce of the bank

Intellectual

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Input

RPA Bots

API libraries

Data analytics and Business intelligence

Underwriting model

Outcomes

Employee base of 16,556 as on March 31, 2

Launched Video KYC for account opening

Launched video banking and DIY services on IB & MB as part of contactless and safe banking initiatives

Bank has 317 API libraries

Migrated to new platform for Micro Finance

In-house development of lead management system

Launched India’s 1st FASTag enabled truck terminal at Khalapur

Social and relationship

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Input

Customer base

CSR beneficiaries

Business Correspondent (BC)

Fintech partners

Outcomes

2,88,750 CSR beneficiaries

Supported 22,305 persons with disabilities in FY21 under the Micro Finance loan programmes

2,51,886 beneficiaries from health & eye check-up camps

Over 5,700 students enrolled across 8 schools

1,638 candidates placed through job placement fairs

12,617 participants in skill training programmes

Natural

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Input

Natural resources consumed in the operation of business: electricity, fuel, water, etc.

Outcomes

  • 1,660 online training programmes for employees
  • 3,07,058 paperless account opening

Strategic focus areas

Progressing with unwavering confidence

At Equitas, we have put in a place a roadmap to build a stable, scalable and sustainable bank. Our strategic focus areas are a result of our deep understanding of the chosen customer segments and markets where we operate. We constantly scan the external environment to calibrate our strategy, with prudence at the core of decision-making.

STRATEGY 1

Leveraging on our existing network for deepening penetration and driving operational efficiency

STRATEGY 2

Strengthen liability franchise and focus on increasing our retail base to further improve cost of funds

STRATEGY 3

Leverage data for analytics to drive operational efficiency

STRATEGY 4

Continue to focus on digital products and technology to grow operations

STRATEGY 5

Continue to diversify product offerings and leverage cross-selling opportunities

STRATEGY 6

Increasingly focus on non-interest income sources

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Stakeholder engagement

Creating enduring bonds

Customers

Shareholders/ Investors

Employees

Regulators

Society & Community

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Risk management

Countering risks with agility

At Equitas, we have adopted an integrated and balanced approach to risk and reward, mitigating potential loss or damage while optimising financial growth opportunities. Our risk management framework aims at aligning capital to business strategy to protect the Bank’s financial strength, reputation and ensure support to various business activities while enhancing stakeholder value.

Our risk management comprises ‘three lines of defence’, which ensures that risk management is part of the culture, and effectively cascaded throughout the organisation. This multi-layered structure augments our risk evaluation and management capabilities while providing the flexibility to adapt effectively and efficiently to the changing business and regulatory environment.

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How we integrate
sustainability

People practices

Demonstrating care and compassion

Happy employees are at the core of our growth. The year of the pandemic not only necessitated an immediate shift to ‘home office’, but also posed significant challenges while adapting to the new normal.

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Community initiatives

Driving sustainable development agenda

Focus areas

Health

Education

Employment

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Governance framework

Steering in the right direction

  • Board of Directors
  • Leadership team

Board of Directors

Arun Ramanathan

Part-time Chairman and Non-Executive Independent Director (AR)

Vasudevan Pathangi Narasimhan

MD & CEO (VPN)

Arun Kumar Verma

Non-Executive Independent Director (AKV)

Narayanaswamy Balakrishnan

Non-Executive Independent Director (NB)

Navin Avinashchander Puri

Non-Executive Independent Director (NAP)

Sridhar Ganesh

Non-Executive Independent Director (SG)

Narasimhan Srinivasan

Non-Executive Independent Director (NS)

Tabassum Abdulla Inamdar

Non-Executive Independent Director (TAI)

Vinod Kumar Sharma

Non-Executive Independent Director (VKS)

Ramesh Rangan

Non-Executive Independent Director (RR)

Leadership team

P. N. Vasudevan

Managing Director & Chief Executive Officer

Sridharan N

Chief Financial Officer

H.K.N Raghavan

Senior President - Retail Assets

Rohit Gangadharrao Phadke

President & Head - Retail Assets

Ramasubramanian K

President - MSE & Corporate Banking

Murali Vaidyanathan

President & Country Head – Liabilities, Wealth Management & Marketing

Natarajan Muthusubramanian

Executive Vice President & Head - Treasury

Dheeraj Mohan

Senior Vice President & Head - Strategy, Investor Relations, Business Intelligence & Customer Experience

Narayanan E

Chief Technology Officer

Prabhakaran A

Executive Vice President & Head - Centralised Processing Centre & Customer Service

Pallab Mukherji

Chief People Officer

Sethupathy S

President - Process & Quality Assurance

Srinivasan Purohit

Chief Compliance Officer

Sathyananda Prabhu

Executive Vice President & Head - Internal Audit

Siby Sebastian

Executive Vice President - Centralised Processing Centre

Sampathkumar K. Raghunathan

Company Secretary and Compliance Officer

© 2021, Equitas Small Finance Bank Ltd.