The standard band external rotation exercise has a few drawbacks. It's easy to compensate by using the lumbar spine. Not good. It's also hard to tell if you're getting full range of motion.
These problems can be solved by doing this supine variation. It's impossible to compensate with the lower back and you'll know when you're reaching full ROM when your wrist bones touch the floor.
When you have knee or shoulder issues, this is a good alternative to a standard squat. This is the touch-and-go version with chains for overload at the top.