Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — Investor Day (September 2023)
111 slides from Satin Creditcare Network's investor day presentation, Sep 14, 2023
Slide 1: Intimation of Analyst Day Presentation to stock exchanges
September 14, 2023 To, The Manager, The Manager, National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, C-1, Block G, 25th Floor, P. J. Towers, Bandra Kurla Complex, Dalal Street, Bandra East, Mumbai-400051 Mumbai – 400001 Symbol: SATIN Scrip Code: 539404 Sub: Analyst Day Presentation Dea
Slide 2: Analyst Day Presentation September 2023
Analyst Day Presentation September 2023 Relentless Exploring Prospects. Growing footprint.
Slide 3: Disclaimer
Disclaimer Cautionary Statement Any forward-looking statements about expected future events, financial and operating results of the Company are based on certain assumptions which the Company does not guarantee the fulfilment of. These may reflect some price-sensitive information in terms of SEBI reg
Slide 4: Aditi Singh
Aditi Singh Head – Strategy A gold medalist in Economics (Hons.) from Banasthali Vidyapith, and Management of Business Finance from IIF, she holds 15+ years of experience in the financial services industry across several functions Vast knowledge in various functions like Investment Banking, Priv
Slide 5: Satin – Building a Legacy | 33 Years
Satin – Building a Legacy | 33 Years One of the leading NBFC-MFIs Background Incorporated in 1990 • #1 in terms of presence in States/UT Leadership • #2 in terms of presence in Districts Led by Mr. HP Singh; a veteran in financial services along with diversified and experienced management team • #4
Slide 6: Diversified Geographical Presence
Diversified Geographical Presence Presence across 24 States and UT’s Top 4 States 6.5% Uttar Pradesh 6.9% 26.7% Bihar West Bengal 14.4% Punjab 96,000 1,310 No. ofAUM – 9,115 Villages No. of Branches 100% 407 96.1% Top 4 States (54%) No. of Districts Districts with <1% exposure Next 6 states (29%) 80
Slide 7: Journey Till Date…
Journey Till Date… • Date of inception of Satin – October 16, 1990 1990 • Started with individual lending to small businesses; daily collection model • IPO and listing on DSE, JSE and LSE; listed for 27 years 1996-98 • Registered as NBFC with RBI • Started JLG Model in May 2008 2008-10 • First priva
Slide 8: Journey Till Date
Journey Till Date • Reached gross AUM of ~Rs. 1,056 crore as on Mar’14 • Raised capital from SBI FMO 2014-16 • Listing on NSE, BSE and CSE • Raised Rs. 250 crore via QIP • Raised $10 mn from ADB – its first direct equity investment in a NBFC-MFI in India 2017-19 • Raised Rs. 150 crore via QIP and Rs
Slide 9: Financing Rural India | Leveraging Outreach
Financing Rural India | Leveraging Outreach Microfinance Loans Impact Financing viz green loans, WASH loans etc. ATS : Rs. 43,000 Satin Creditcare Network Ltd Secured retail MSME lending Untapped potential to cater to 100% Subsidiaries microfinance graduated clients ATS: Rs. 1.53 Lacs Sa
Slide 10: Financing Rural India | Leveraging Outreach
Financing Rural India | Leveraging Outreach Microfinance Loans Impact Financing viz green loans, WASH loans etc. ATS : Rs. 43,000 Satin Creditcare Network Ltd Secured retail MSME lending Untapped potential to cater to 100% Subsidiaries microfinance graduated clients ATS: Rs. 1.53 Lacs Sa
Slide 11: Standalone Snapshot
Standalone Snapshot Rs. 8,367 crore Rs. 1,980 crore 27.9 Lacs 2.5% 1,096 AUM DISBURSEMENT ACTIVE CLIENTS GNPA BRANCHES YoY 31% YoY 27% YoY 17% YoY 182 bps YoY +63 Operational Efficiencies Playing Out 5.8% 48.9% 25.0% 4.3% 17.5% OPEX RATIO COST TO INCOME CAPITAL ADEQUACY RETURN ON ASSETS RETURN ON EQ
Slide 12: Our Capital Journey
Our Capital Journey 21.2% Promoter Group Market Cap of Book Value^ 40.0% Florintree Ventures LLP ~ Rs. 2,100 crore* Rs. 180/ share Key Institutional Investors 16.8% No. of Equity No. of Bodies Corporate Shares Shareholders 9.96 crore 24,331 Retail & Others 9.7% 12.4% Market • 14 rounds of capital ra
Slide 13: HP Singh
HP Singh Chairman cum Managing Director A law graduate and Chartered Accountant with 40+ years of experience Also participated in Harvard Business School’s Accion Program on Strategic Leadership for Microfinance in 2009, as well as the leadership program organized by Women’s World Banking at Wha
Slide 14: Our Strengths
Our Strengths Strong & Experienced Strong Underwriting Management Team Capability State of the Art Diversified Geographical Technology backed by Reach robust IT infrastructure Diversified Financial Process Innovation Products catering to rural leading to operation India through our excellence subsid
Slide 15: Weathered Multiple Crisis Through Our Resilient Approach
Weathered Multiple Crisis Through Our Resilient Approach 01 Maintained High Liquidity 02 Diversified Geographical Presence 03 Diversified to Secured Asset Class 04 No New Client Acquisition During Pandemic Demonetization 05 No Disbursement to Delinquent Clients IL&FS Assam Crisis 06 Implemented Best
Slide 16: Emerging Stronger
Emerging Stronger AUM crossed milestone of Rs. 9,000 crore ASSET GROWTH 96% districts have exposure of <1% Lowest cumulative write-off in the last 3 years; SUPERIOR industry range b/w 14% -30% vs Satin at ~10.8%* ASSET QUALITY Best in the industry PAR for portfolio originated Jul’21 onwards Stable c
Slide 17: Strong Management Team with over 250+ years of Experience
Strong Management Team with over 250+ years of Experience HP Singh Chairman cum Managing Director Aditi Singh Anil Kwatra Sunil Yadav Dhiraj Jha Subir Roy Chowdhury Jugal Kataria Head - Strategy Head - Operations Head – IT CRO CHRO Group Controller Manoj Agrawal Bhuvnesh Khanna Amit Sharma Sachin Sh
Slide 18: Anil Kwatra
Anil Kwatra Head - Operational Excellence & Innovation An accomplished financial services professional with over 15 years of experience in the field of Sales & Operations Known for his collaborative leadership style, ability to align strategic goals with day-to-day operations, and foster a cultu
Slide 19: Satin's Success Mantra
Satin’s Success Mantra “The Business of Lending is just not about LENDING but also about COLLECTION" 18
Slide 20: Best Portfolio Quality in the Industry
Best Portfolio Quality in the Industry Portfolio originated Jul’21 onwards showing excellent performance PAR 1 PAR 90 5.4% 3.3% SCNL 4.8% 4.4% 2.6% 0.9% 2.5% PAR 1 SCNL 0.9% 0.5% 0.5% PAR 90 NBFC-MFI (excl. Satin) SFBs Banks + Others SCNL^ 19 ^Data of SCNL for JLG on-book portfolio Data available as
Slide 21: Pillars Upholding the Portfolio Quality
Pillars Upholding the Portfolio Quality • Credit bureau & • Digitized • Timely problematic • Mandatory mid-day • Branch & Loan • Dedicated teams Application based onboarding center identification reviews on officer grading to address scorecards collection delinquency in • Strong pre & post • Identif
Slide 22: Vital Pillars Holding Satin Strong
Vital Pillars Holding Satin Strong Our Human Capital Our Customers Robust Operational Structure Products & Flexibility Well thought out hierarchy Loan size & tenure flexibility Logically built spans & key control areas Products designed as per customer’s needs All possible modes of cashles
Slide 23: Improving Operational Efficiencies
Improving Operational Efficiencies Loan Accounts / Branch Loan Accounts / Loan Officer 2,664 466 YoY +11% YoY +7% 2,494 439 436 436 2,391 QoQ QoQ 2,357 +7% +6% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 GLP (Rs. crore) / Branch GLP (Rs. crore) / Loan Officer YoY +26% 7.3 7.0 YoY +21% 1.
Slide 24: PROCESS: The Core of Satin
PROCESS: The Core of Satin Well stitched customer acquisition journey with detailed modules on CGT, GRT, House Survey & LUC (all GEO tagged) P Dynamic repayment schedule for clients – Making life easy for clients & Loan officers R Centralized Shared Service – Data & documentation hygiene O S
Slide 25: Operational Capabilities Backed by Robust Processes
Operational Capabilities Backed by Robust Processes Capturing relative details at disbursement levels OTP Validations at client onboarding & disbursement level Inbuilt algorithm to calculate retail loan EMIs Validations on Bank a/c details and Mobile numbers Branch hygiene & CGRM dashboards KYC Dedu
Slide 26: Digital documentation & Authentication Journey: e-Sign
Digital documentation & Authentication Journey : e-Sign 6,89,387 Loans Disbursed using E-sign 96% 85% 79% 72% 71% 20% 8% 5% 2% Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Au`g- 25
Slide 27: Our Disbursement & Collection Enablers
Our Disbursement & Collection Enablers 2.0 CASHLESS CASHDROP to CASH DISBURSEMENT COLLECTION PICKUP 100% Cashless Disbursement post Different modes of Cashless Cash Drop partners supporting the bank validation Collections: CSA, QR Code on Loan branches in daily cash deposit Card, Website based
Slide 28: Growth Ahead for Satin: State Level Industry Penetration
Growth Ahead for Satin: State Level Industry Penetration J&K 0.61% Uttar Pradesh 14.64% HP 2.35% PB UK 14.51% HR SK 20.04% 12.74% AR 3.28% Bihar RJ 35.23% 19.01% UP AS 11.83% NG BH MG 2.92% 1.11% MN GJ JH 4.98% 14.13% MP 25.59% WB TR MZ CG 34.38% 8.69% West Bengal 19.67% OD 35.19% 22.60% MH 16.76% T
Slide 29: Growth Ahead for Satin: District Level Penetration
Growth Ahead for Satin: District Level Penetration Industry’s Presence SATIN’s Presence 729 (95%) 407 (53%) Districts Districts Total Districts in India 766 RJ, 38/50 RJ, 47/50 UP, 59/75 UP, 73/75 WB, 18/23 WB, 23/23 OD, 23/30 OD, 29/30 MP, 42/52 MP, 52/52 TS, 0/33 TS, 31/33 AP, 0/26 AP, 20/26 KA, 1
Slide 30: Building Best in Class Operational Efficiencies
Building Best in Class Operational Efficiencies Clients / Branch Clients / Loan Officer 2,800 – 3,000 510 - 550 2,548 466 2,339 401 INDUSTRY SATIN 2027-2028 INDUSTRY SATIN 2027-2028 GLP (Rs. crore) / Branch GLP (Rs. crore) / Loan Officer 10 - 11 1.75 – 2.00 8.01 1.3 1.3 7.36 INDUSTRY SATIN 2027-2028
Slide 31: Technology enabling operations
Technology enabling operations 30
Slide 32: Sunil Yadav
Sunil Yadav Head – Information Technology A Masters in Computer Science from GJU, Hisar and Advanced Post Graduate in Artificial Intelligence from IIT Roorkee, carrying over 12 years of experience in the Banking and Finance industry and across its various functions Spearheaded the digital transf
Slide 33: Legacy System (Till 2017)
Legacy System (Till 2017) lo 32
Slide 34: Technology Transformation Journey @ SATIN
Technology Transformation Journey @ SATIN 2016 2017 2018 2 33
Slide 35: Technology Transformation Journey @ SATIN
Technology Transformation Journey @ SATIN 2019 2020 2021 5 34
Slide 36: Technology Transformation Journey @ SATIN
Technology Transformation Journey @ SATIN 2022 2023 2024 8 35
Slide 37: Technology Transformation Journey @ SATIN
Technology Transformation Journey @ SATIN Loan Origination System 1 Loan Management System 2 Accounting & Finance Module 3 Expense & Vendor Management 4 36
Slide 38: Technology Transformation Journey @ SATIN
Technology Transformation Journey @ SATIN Human Resource Management 5 Funding & Borrowing Module 6 Solution Audit & Risk Module 7 Support & Learning Management 8 37
Slide 39: Customer Onboarding Process
Customer Onboarding Process 38
Slide 40: Impact of Digital Transformation @Satin
Impact of Digital Transformation @Satin Organization Impact 04 Go Green New platform provides All paper documentation related to loans • Significant Process Controls are digitized (Paperless) • Increased Operational Efficiency • Customer KYC • Information Accuracy • Digital Consent • Loan Agreement
Slide 41: Impact of Digital Transformation @Satin
Impact of Digital Transformation @Satin 08 Enabling Brand Recall Value Instant Bank Account Verifications SMS & App based Customer notification at Customer account verified on real-time basis different touch points 07 Real-time Credit Checks 06 & Customer Profiling Geo-Fencing & Tracking Real-time c
Slide 42: Impact of Digital Transformation @Satin
Impact of Digital Transformation @Satin Business Dashboards & Reporting Core Accounting & Financial System 12 • Business and Statutory KPIs are available Real-time Financial Books, P&L & Trial across all hierarchies (next day morning) Balance • Daily collection information across 24 states – 1096+ b
Slide 43: Robust Technology Stack
Robust Technology Stack 1.5 crore Monthly Transactions KYC 4.25 – 4.35 Lacs Customer KYCs Loan Application 5.50 – 5.75 Lacs Loan Applications 60 – 65 Lacs Credit Bureau Submission Credit Bureau Submission 2 – 2.25 Lacs Loan Disbursements Loan Disbursement 60 Lacs+ Loan Repayments Loan Repayments 4.2
Slide 44: Challenges Vs Solution
Challenges Vs Solution Offline KYC & Network Hybrid Application Issue works Online & Offline Client & Staff Tracking Geo-Fence & Tagging Challenges Loan Fraud E-KYC/E-SIGN/CB Cashless & Livliness Solution Micro-Service based Application Scalability Application & Public & Performance Cloud (AWS) Cash
Slide 45: AWS | Public Cloud Solution
AWS |Public Cloud Solution BCP HA DR Scalable Scalable 44
Slide 46: Application & Datacentre Security
Application & Datacentre Security 45
Slide 47: Dhiraj Jha
Dhiraj Jha Chief Risk Officer A CAIIB and certificate holder of FRM from GARP-USA, having over 17 years of experience Holds expertise in the field of Portfolio Management, Risk Analytics and Management, Project Management, Risk Assessment/Quantification and Business Process Re-engineering Poss
Slide 48: Value Addition through Effective Risk Management
Value Addition through Effective Risk Management “ The key to risk management is never putting yourself in a position where you cannot live to fight another day ‘: Richard S. Fuld, Jr. Simplified Version of our Business Model On-boarding of new customer: 1. KYC : Regulatory Risk 2. Default Risk : Bo
Slide 49: Value Addition through Effective Risk Management
Value Addition through Effective Risk Management “Information is the oil of the 21st century, and analytics is the combustion engine.”-Peter Sondergaard, Gartner, Inc. Geography & Borrower selection KYC and Transaction based monitoring Analytics at Full Swing Early warning signals in our decision ma
Slide 50: Automated Risk Analytics Framework
Value Addition through Effective Risk Management "Automation is not a thing of the future, but a thing of the present." - Brian Tracy Automated Risk Analytics Framework We have already achieved significant 1. Budgeting with Macro- factor forecast- Environmental impact analysis Milestones and all on
Slide 51: Capital Assessment (ICAAP): Quarterly Monitoring of Movement of Risk Capital
Capital Assessment (ICAAP): Quarterly Monitoring of Movement of Risk Capital Required Risk Capital Available Capital CRAR (RBI Benchmark 15%) Components of Risk Capital FY 2023 Operational Risk 27.53% Credit Concentration Risk FY 2024 Talent Risk 25.70% Compliance Risk- 97.5% VaR FY 2025 Strategic R
Slide 52: Robust and Effective Internal Audit System
Robust and Effective Internal Audit System Scope of Audit Customer Related: KYC documents, Centre Visits, Statutory Compliances, Feedback from Customers 100% coverage of branches every quarter Internal Processes Related: Bank Reconciliation, Customer’s Transaction, Tax- Compliances, Expense Audit, P
Slide 53: Value Addition through Effective Risk Management
Value Addition through Effective Risk Management We Practice and Prepare….. Black swan Events 52
Slide 54: Subir Roy Chowdhury
Subir Roy Chowdhury Chief Human Resource Officer An alumnus of INSEAD (Advanced Management Program) and PGDHRM from IISWBM – Kolkata with a B.Com. (Hons) from Kolkata University holds a vast 23 years of experience in HR function A Gallup Certified Strength Coach and a CII- certified HR Assessor
Slide 55: Our Achievements With GPTW in FY23
Our Achievements With GPTW in FY23 India’s Top 100 Best Workplaces Ranked 30th 54
Slide 56: Great Place to Work Journey
Great Place to Work Journey Ranked 30th in Top 100 Great Workplaces Top 100 workplaces across industries Top 25 in BFSI Best in MFI Best Workplaces in Building a Culture of Innovation by All Best Workplaces for Millennials FY23 Ranked 38th in Top 100 Great Workplaces Top 100 workplaces a
Slide 57: How We have Achieved in Last 5 Years
How We have Achieved in Last 5 Years Respect “I am a valued member of this organization” FY19 FY20 FY21 FY22 FY23 Respect 77 78 84 92 92 Fairness 81 80 84 92 93 Our journey Pride 85 86 88 95 94 Pride towards becoming “I contribute to Camaraderie 81 85 85 91 92 something really India’s Top 100 Best m
Slide 58: HR Cornerstones
HR Cornerstones My SATIN My PRIDE MERITOCRACY & LEARNING & EMPLOYEE CULTURE OF TRUST GROWTH CAPABILITY BUILDING WELLBEING & PRIDE Create an environment Focus on building Create an inclusive culture Create a culture of trust where performance is capabilities in our people where people value their and
Slide 59: 4P Agenda
4P Agenda PEOPLE Our Cornerstones are The 4P PRACTICE POLICY driven by 4P Agenda Agenda PROCESS 58
Slide 60: The People Agenda
The People Agenda • Talent Management & succession • Well defined carrier path for GROWTH CAPABLITY BUILDING planning framework at leadership FOS & BMs • Monthly reviews of FOS & 01 02 positions • 360 assessment for AVP & above BMs • LinkedIn Learning for all Managers • Quarterly review of RMs & & a
Slide 61: Key HR Policies
Key HR Policies Model Standing Order COC & emp. Benefits Recruitment & Comp. Policy registered with Govt. of Satin Sahyog Haryana Well defined recruitment Beneficiary scheme for fixed, variable & flexi pay deceased employees family structure Internal Job Posting Satin Suraksha Policy to ensure cross
Slide 62: Key HR Processes
Key HR Processes HR Automation- Digital Mobile App • Employee Self Service • Attendance & Leave Mgt. • Exit & Alumni Portal Payroll & Compliance • Expense Management System • 100% on time Complaint with all Labor Laws • Introduced National Apprentice Program (NAPS) Recruitment & On-boarding process
Slide 63: Key HR Practices
Key HR Practices Employee E-SAT Survey Engagement Initiatives ADC Internal Variable Promotions Pay KEY HR Leadership Instant Loan Learning PRACTICES Facility Programs Comp- Survey E-Gurukul in Every BBA & MBA Two year GPTW Assessment For last 6 years 62
Slide 64: Organization Demographics
Organization Demographics Avg. Tenure Growth - Internal Vs External Avg. Tenure of employees 6.4 5.7 reporting to CMD 7.9 Yrs 5.3 5.4 Field Corporate 5.0 4.9 4.0 4.0 3.9 3.2 2.2 Avg. Tenure of employees 79% 21% 97% 62% 38% 1.7 1.8 2.0 2.0 reporting to CXOs 4.5 Yrs Internal Internal External External
Slide 65: HR Dashboard
HR Dashboard Leveraging Technology Talent Management Attrition Trends Industry Vs Satin & Automation 59% 61% Evaluation of Middle 49% 51% 44% 46% 44% Recruitment & Onboarding Managers 42% Attendance & Leave Succession Planning up to CXO-2 level & Leadership Training 2019-20 2020-21 2021-22 2022-23 E
Slide 66: Training Dashboard
Training Dashboard Induction Training Avg. Training Man Days Corrective Training 909 869 954 1033 8 Days FY'24 Q1 710 755 FY'23 Q4 805 Total Training Sessions Total Training Sessions FY'23 Q3 2117 FY’23 Q1 FY’24 FY'23 Q2 395 2431 486 FY'23 Q1 482 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'24 Q1 Leadersh
Slide 67: Partners Associated With Us
Partners Associated With Us 66
Slide 68: Jugal Kataria
Jugal Kataria Group Controller A Cost Accountant, rank holder Chartered Accountant and Company Secretary with 32 years of experience Part of the Industry Forum, MFIN, as a member of the Enforcement Committee and Credit Bureau Task Force With strong financial acumen and leadership ability, he i
Slide 69: Manoj Agrawal
Manoj Agrawal Deputy Chief Financial Officer A rank holder Chartered Accountant, having 24 years of versatile experience Holds proficiency in various functions like Financial Operations Management, Client Service, Risk and Controls, Regulatory Compliance, and Strategic Transformation Known for
Slide 70: Financial Performance - Standalone
Financial Performance - Standalone Particulars Jul’22 to Q2FY23 Q3FY23 Q4FY23 Q1FY24 Jun’23 Gross yield 20.31% 22.85% 21.57% 20.48% 20.56% Financial Cost Ratio 8.44% 8.76% 7.93% 8.35% 8.08% Net Interest Margin 11.87% 14.09% 13.64% 12.13% 12.48% Operating Expense ratio 6.96% 6.63% 6.14% 5.81% 6.13% L
Slide 71: Portfolio Quality & Expected Credit Loss
Portfolio Quality & Expected Credit Loss Asset Quality Portfolio originated Jul’21 onwards GNPA % NNPA% 3.9% 3.9% 3.3% 0.9% Constitutes 2.5% 1.8% ~96% of on- 0.5% 1.5% 1.5% 1.1% book MFI portfolio Q2FY23 Q3FY23 Q4FY23 Q1FY24 PAR 1 PAR 90 • On-book GNPA stood at Rs. 155 crore (2.49% of on-book portfo
Slide 72: Ensuring Financial Stability
Ensuring Financial Stability Capital Adequacy Ratio Optimizing capital allocation to 31.2% 30.5% support sustainable growth 27.8% 25.3% 26.6% 25.0% while maintaining a strong CRAR Continuously monitoring capital adequacy levels; to maintain above 20% in the long run Maintained CRAR above 25% during
Slide 73: Ratings and Gradings
Ratings and Gradings C1 MFI 1 COCA (SMERA) MFI Grading (SMERA) A- / Stable CPP (Gold Level) ICRA M-CRIL 72
Slide 74: Seamlessly Raising Funds
Seamlessly Raising Funds Raised ~Rs. 31,000 crore in the last Surpassing our budgeted numbers; 01 6.3 years; absolutely clean repayment track record with no delay / default since inception raised ~25% in Q1FY24 itself, additional undrawn sanction of Rs. 897 crore in hand as on Jun’23 02 Raised Rs. 2
Slide 75: Well-diversified Liability Profile with Large Lender Base
Well-diversified Liability Profile with Large Lender Base Product-wise Jun’23 0.9% 70 60% 11.7% 6.7% Term Loan & PTC 25.1% NCD 55.5% Direct Assignment Active Lenders Share of Top 10 Lenders Avg. Borrowing Cost^ ECB 11.8% Commercial Paper Top 10 Lending Partners % Share State Bank of India 16% Bank o
Slide 76: Positive ALM with Ample Liquidity
Positive ALM with Ample Liquidity 25.9 25.0 Static ALM is showing comfortable liquidity 24.3 position 18.2 18.5 16.0 LCR as of June 30, 2023, is 102.95%, which is well above the regulatory requirement of 60% FY22 FY23 Q1FY24 Avg. maturity of Assets Avg. maturity of Liabilities Static ALM as on 30th
Slide 77: Transformation through Innovation
Transformation through Innovation Majority of the reconciliations are ~ 98% of vouchers automated are straight through Compliance focused processed organization - 0% Tolerance for non-compliance of regulations Robust MIS reporting with exception reports to take quick corrective action Integrated In-
Slide 78: Satin Report Card
Satin Report Card
Slide 79: Doing It Right
Doing It Right (Rs. crore) (YoY Change) 41.8% 59.1% 57.0% 27.4% Are we delivering Disbursement FY22 FY23 Q1 FY23 Q1 FY24 2,546 the RIGHT 1,980 1,725 1,622 Quantity? 1,103 1,564 1,085 1,554 Focus on new client acquisition Q2 Q3 Q4 Q1 (YoY Change) 1.6% 11.0% 23.7% 31.0% AUM 7,929 8,367 6,417 6,798 Con
Slide 80: Doing It Right
Doing It Right Collection 100.2% 100.0% 99.6% 99.6% Are we delivering Efficiency the RIGHT Quality? Stable QoQ Q2FY23 Q3FY23 Q4FY23 Q1FY24 GNPA 3.9% 3.9% 3.3% 2.5% Robust Underwriting Mechanism Q2FY23 Q3FY23 Q4FY23 Q1FY24 79
Slide 81: Doing It Right
Doing It Right % of on-book MFI Portfolio Portfolio originated 96.0% 94.0% Are we delivering Jul’21 onwards the RIGHT Quality? 90.0% 84.0% Consistent Performance Q2FY23 Q3FY23 Q4FY23 Q1FY24 PAR 1 PAR 90 0.9% PAR 0.7% 0.5% 0.5% 0.4% 0.3% 0.2% Best in 0.1% Industry Q2FY23 Q3FY23 Q4FY23 Q1FY24 80
Slide 82: Doing It Right
Doing It Right Particulars Q2FY23 Q3FY23 Q4FY23 Q1FY24 Are we delivering it Efficiently? Opex / AUM 6.96% 6.63% 6.14% 5.81% Cost / Income Ratio 58.67% 47.06% 45.00% 48.86% AUM/Loan Officer 1.05 1.12 1.23 1.27 (Rs. crore) AUM/Branch (Rs. crore) 5.77 6.04 6.99 7.26 Optimized Liquidity (Rs. 698 1,274 1
Slide 83: Outlook for next 5 Years
Outlook for next 5 Years Particulars Jul’22 to FY24E FY25E FY26E – FY28E Jun’23 GLP Growth (%) 30% 25%+ 25%+ 25%+ NIM (%) 12.48% 12.1% - 12.5% 12.25% - 12.75% 12.25% - 12.75% Cost-to-Income Ratio (%) 49.37% 45% - 50% 42% - 48% 40% - 45% Operating cost/AUM (%) 6.13% 5.60% - 5.75% 5.30% - 5.50% 5.00%
Slide 84: Sustainability
Sustainability
Slide 85: Environment - Minimizing Ecological Footprint while Maximizing Efficiency
Environment - Minimizing Ecological Footprint while Maximizing Efficiency Green Building Satin’s headquarters – a green building – is adorned with solar panels that generate 100 kW of electricity and innovative features including Sewage Treatment Plant that recycles 10 kiloliters of water per day an
Slide 86: Social - Committed to Impact & Inclusion
Social - Committed to Impact & Inclusion • Reaching borrowers through a suite of financial and non- financial services, tailored to meet their needs, including lending under JLG model, product financing, community level initiatives, financing household level toilet and water facility • Almost all of
Slide 87: Governance - Ensuring Fairness, Trust & Transparency
Governance - Ensuring Fairness, Trust & Transparency • Board comprises of 7 members; 5 Independent directors of which 1 is a woman director • Number of Board Meetings Conducted during the FY23: 7 • Average attendance rate at the Board and Board committee meetings (%): 91% and 95% respectively • All
Slide 88: SDGs in the Core of Our Community Connect Activities
SDGs in the Core of Our Community Connect Activities Scholarship to the Financial Literacy Workshops Health Camps Underprivileged Students In collaboration with RBI and Sa-Dhan, as of In collaboration with our partner DocOnline, With our aim to promote inclusive date, we have conducted 15 workshops
Slide 89: Spotlight: Prestigious Accolades
Spotlight : Prestigious Accolades Won Corporate Excellence Award in Won Skoch Award in the Silver the Education and Employability Category For Loan Management activity by Making India Employable System Awards 2023 88
Slide 90: Financing Rural India | Leveraging Outreach
Financing Rural India | Leveraging Outreach Microfinance Loans Impact Financing viz green loans, WASH loans etc. ATS : Rs. 43,000 Satin Creditcare Network Ltd Secured retail MSME lending Untapped potential to cater to 100% Subsidiaries microfinance graduated clients ATS: Rs. 1.53 Lacs Sa
Slide 91: Bhuvnesh Khanna
Bhuvnesh Khanna President – Satin Finserv Limited A Chartered Accountant with 25+ years of post qualification experience Worked across Investment Banking, Corporate Banking, SME Banking and Retail Banking roles Comes with experience in National, Regional and Global roles and is known for his r
Slide 92: Macro Environment & Demand
Macro Environment & Demand Microfinance customer universe There are around 218 microfinance lenders in India with a MSME Credit Demand (Rs. Lacs crore) customer base of 7 crore & AUM of Rs. 3.50 Lacs crore 69.30 58.90 Approx. 40% of these are 2nd cycle plus customers with need of larger ticket finan
Slide 93: Products Offered
Products Offered Focus on “Micro-MSME enterprise loan, informal segment with no digital footprint Loan Product Purpose Ticket Size (Rs.) Tenor Collateral Small Ticket • Income Generation activities 1 Lacs to 3.5 Lacs upto 5 year Property Business Loan (Micro MSME) • Working Capital Small Ticket Busi
Slide 94: Our Strengths
Our Strengths Secured lending against collateral (LTV offered not more than 55%) Well tested & credit stabilized customer with credit score history Use of social scoring to defined entry Level Filter Cash flow analysis based on sales & credit PD in the absence of significant banking & income documen
Slide 95: Journey so Far
Journey so Far 01 02 Incorporation & business 4 years of profitable operations, a commencement in 2018-19 testimony to proven business model 07 03 Merger of Taraashna Financial Strengthening governance – Enhancing compliances (business correspondent arm) & Internal Audit with SFL in Mar’23. Steadily
Slide 96: Key Success Parameters
Key Success Parameters Customer Bucket of the seasoned 2nd Cycle + customer of microfinance loans Composition PAR 90 < 2.5% for small ticket size loans, comprising ~90% of total Credit portfolio Industry average of 5%# Quality Direct sourcing through field enabling lower cost of acquisition Cost of
Slide 97: Opportunity (SCNL Presence vs SFL Presence)
Opportunity (SCNL Presence vs SFL Presence) Satin Creditcare SFL existing States: 24 States: 10 Branches: 1096 Branches: 28 Customer: 27.9 lacs Customer : 12,400 Untapped Potential Monthly conversion of ~2.5% on average • 2nd cycle + customer base of ~11.7 Lacs. Monthly ticket size of Rs. 2 Lacs Add
Slide 98: Key Numbers
Key Numbers Rs. 682 crore Rs. 225 crore 178 4.14% 2.79% AUM SME AUM BRANCHES GNPA NNPA Significant Promoter Base Varied Customer Segment Rs. 8 crore Rs. 6 crore 2.1% Sound Asset Quality 4.5% BBB+ PBT PAT RETURN ON ASSETS RETURN ON EQUITY CREDIT RATING 97 Data as on Mar’23 / for FY23 unless specifica
Slide 99: Outlook for next 5 years
Outlook for next 5 years Q1FY24 FY26E – Particulars FY24E FY25E (Actual) FY28E GLP Growth (%) 45% 60% 70% 50%+ 01 Product Offerings NIM (%) 12.40% 13.50% 12.75% 13.50% - 15.50% Cost-to-Income Ratio (%) 89% 85% 75% 60% - 45% 02 SHFL’s Geographical Presence Operating cost/AUM (%) 11.10% 11.60% 9.50% 8
Slide 100: Financing Rural India | Leveraging Outreach
Financing Rural India | Leveraging Outreach Microfinance Loans Impact Financing viz green loans, WASH loans etc. ATS : Rs. 43,000 Satin Creditcare Network Ltd Secured retail MSME lending Untapped potential to cater to 100% Subsidiaries microfinance graduated clients ATS: Rs. 1.53 Lacs Sa
Slide 101: Amit Sharma
Amit Sharma MD & CEO – Satin Housing Finance Limited Over 22 years of experience across BFSI sector, both in domestic and international markets Previously worked with Karvy Finance Ltd, Religare Group, P.N. Vijay Financial Services, Abhipra Capital Ltd and the Association of National Exchange Me
Slide 102: What We Are
What We Are Strong Management Team with 100+ Years of Combined Housing Finance Experience One of the few Companies getting refinance from NHB within 18 months of Operations Diversified Borrowing Profile with Top Public and Pvt. Banks with Positive ALM (BBB+ Ratings from CARE & Infomerics) Zero Non C
Slide 103: Business Building Themes
Business Building Themes Strong Portfolio Quality 1 2 3 3C’s of Credit Character Capacity Collateral Followed (Banda - Borrower) (Dhandha – (Security - Property) Strictly Business) Business Building Blocks 1 2 3 Laying Foundation Direct Customer 100% Retail Home Automated IT of Strong Acquisition Lo
Slide 104: Business Building Themes
Business Building Themes De-Risk Strategy Product Offerings What We Don’t Do Rural Market SHFL’s Geographical Presence Significant Promoter Base No Builder Financing / APF Market Varied Customer Segment Presence Semi – Sound Asset Quality Urban Big Risk Lending Urban Market Market Strong Management
Slide 105: Business Building Themes
Business Building Themes Customer Segmentation Basis Income Customer Segmentation Basis Profession Product Offerings Self-Employed Non Professional Medium Income SHFL’s Geographical Presence – Urban Entrepreneur -- Rural Entrepreneur Significant Promoter Base Varied Customer Segment Low Income Custo
Slide 106: Credit Principles
Credit Principles Physical branch model for sourcing and credit assessment, helping in better Strict FOIR & LTV policies customer connect and understanding of regional challenges and threats Hired localized and experienced Checking borrower’s work experience and credit professional from the market h
Slide 107: Macro Environment | Regulatory Support
Macro Environment | Regulatory Support Government thrust on motto of Housing for All 01 A with subsidies schemes/ tax incentives/ SARFEASI/ RERA for home loan users 02 Huge demand supply gap in the informal segment at B bottom of the pyramid and absence of formal lenders 03 Entry barriers due to reg
Slide 108: Business Leveraging Potential
Business Leveraging Potential Open Market Business Market Size of Affordable/ Rural Opportunity Housing Finance • The size of market for ticket size upto Rs. 10 Lacs is more than Rs. 4 Lacs crore 01 04 02 03 Outreach coupled with Opportunity to leverage on SCNL’s tailored loan products vast geograph
Slide 109: Key Numbers
Key Numbers Rs. 505 crore Rs. 146 crore 30 0.34% 0.27% AUM NET WORTH BRANCHES GNPA NNPA Significant Promoter Base Varied Customer Segment Rs. 8 crore Rs. 6 crore 1.7% Sound Asset Quality 5.0% BBB+ PBT PAT RETURN ON ASSETS RETURN ON EQUITY CREDIT RATING 108 Data as on Mar’23 / for FY23 unless specifi
Slide 110: Outlook for next 5 years
Outlook for next 5 years Q1FY24 Particulars FY24E FY25E FY26E – FY28E (Actual) GLP Growth (%) 6.64% 50%+ 50%+ 50%+ NIM (%) 5.44% 7.00% - 7.25% 7.00% - 7.25% 7.00% - 7.25% Cost-to-Income Ratio (%) 84.8% 70.0% - 75.0% 65.0% - 70.0% 50.0% - 55.0% Operating cost/AUM (%) 5.41% 5.00% - 5.25% 4.75% - 5.00%
Slide 111: Contact Information
Contact Information Company (Investors & Media) : Ms. Aditi Singh Ms. Shweta Bansal Head – Strategy DGM - Investor Relations E: aditi.singh@satincreditcare.com E: Shweta.bansal@satincreditcare.com T: +91 124 4715 400 T: +91 124 4715 400 www.satincreditcare.com
Satin Creditcare Network — Investor Day (September 2023) on 6ix