Equitas Small Finance Bank Ltd

- The bank's capital adequacy ratio (CRAR) has decreased to about 21.7% as of March 2024, down from a previously higher level. - Internally, the bank targets not to let capital adequacy fall below 18%-19%. - To maintain this buffer, the bank plans to raise equity capital as needed to prevent the capital adequacy from falling below approximately 20%. - There is no mention of any current or imminent debt fundraising. - The focus is on careful capital allocation without distributing capital to low-yielding products. - Overall, equity fundraising is anticipated in the medium term to support growth while maintaining regulatory capital norms.

- Equitas Small Finance Bank is investing in new product segments including **personal loans and credit cards**, with personal loans going live between April and May 2024 and credit cards expected by end of calendar year 2024. - There is a focus on technology upgrades such as **new generation Loan Origination System (LoS)** for small business loans and home loans, along with a customer app "Selfe Loan" for better engagement. - Additional investments include **digital infrastructure enhancements, brand building, and branch expansion**. - The bank is committed to the **Liability 2.0 strategy**, focusing on deepening relationships and cross-selling to deposit customers over the next 3-4 years. - Capital adequacy is targeted to be maintained above 18-19%, with plans to **raise equity as needed** to support growth. - Strategic shift away from low-yield products like lending to NBFCs and new commercial vehicle loans to focus on **higher yielding and core products**.

- Advances grew 23% YoY with key segments showing strong growth: Small Business Loans (SBL) +30%, Microfinance +20%, Vehicle Finance +19%, Affordable Home Loans +60%. - Focus on growing high-yield segments like micro LAP and used vehicle financing, with moderated growth in low-yield products (new commercial vehicle loans). - Other income drivers like liability fees, asset disbursement linkage fees, insurance, mutual funds, and broking have grown 30%-40%, expected to continue growing with bank expansion. - Liability 2.0 strategy aims to deepen customer relationships and cross-selling, supporting fee-based income growth. - Deposits growth stabilizing; focus on granular retail TD growth targeting 72%-75% retail mix to ensure stability. - Digital initiatives (e-KYC, digital books, self service apps) to support scalable growth. - Target gross advances growth around 25% annually, with a stable credit cost around 1.25% of gross advances. - Fee income has seasonality; Q4 usually peaks at 35%-40%, stable state expected ~25% lesser.

- PAT grew 9% YoY in Q4 FY24 to Rs. 208 crores, with full-year PAT growth at 39%. - ROA steady around 2%, with a target to maintain consistent 2% ROA as leverage picks up. - Cost-to-income ratio expected to be sticky in the 60%-63% range during this investment phase. - Other income drivers like liability fee income and asset disbursement fees are growing at 30%-40%, expected to continue supporting income growth. - The bank aims to improve PCR to 70% over 3 years, maintaining credit cost around pre-COVID levels of 1.25%. - Advances growth strong in key segments: SBL (30%), Affordable Home Loans (60%), Vehicle Finance and Microfinance growing steadily. - Focus on growing higher-yield micro-LAP loans and secured products to sustain margins. - EPS for FY24 reported at Rs. 7.12 with dividend of Re. 1 proposed, signaling stable earnings growth trajectory.

The provided transcript of the Equitas Small Finance Bank Limited Q4 FY24 Earnings Call does not contain any information related to current or expected order book or pending orders. The discussion primarily covers financial performance, loan portfolio growth, deposit strategies, yields, cost income ratios, product initiatives, and regulatory updates. There is no mention of order book status or pending orders in the context of banking operations or related business activities. If you are seeking details on order book or pending orders, the document does not provide this information.