Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — Investor Presentation (December 2015)
27 slides from Satin Creditcare Network's investor presentation, December 2015
Slide 1: Satin Creditcare Network Limited Investor Presentation
SATIN CREDITCARE NETWORK LIMITED INVESTOR PRESENTATION DECEMBER 2015 BSE: 539404 | NSE: SATIN | CSE: 30024 Corporate Identity No. L65991DL1990PLC041796 STRICTLY PRIVATE AND CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer This presentation (which may reflect some price sensitive information in terms of SEBI laws and Companies Act, 2013, as amended from time to time) has been prepared by Satin Creditcare Network Limited (the “Company”) solely for your information and for your use and may not be taken away,
Slide 3: Satin - Company Overview
Satin - Company Overview Company Snapshot Shareholding Pattern – YTD Dec’15* Satin is North India’s largest and India’s 5th largest MFI with presence across NMI , 9% Public, 16% 16 states with 364 branches (YTD Dec’15) Listed on NSE, BSE and CSE* DMP, 8% Led by Mr. H P Singh, who has experienc
Slide 4: Key Milestones
Key Milestones Starts SHG bank linkage program in Reaches 1 lakh clients and Rs. 100 Crores Rewa, MP portfolio Receives 83% in microfinance COCA One of the first MFI to a multi-originator audit -amongst the best in the 2015 securitization country Raised INR 25mn from Lok Capital and INR 21
Slide 5: Accolades & Key Highlights
Accolades & Key Highlights Award by MF Transparency Organization First MFI to raise Equity after AP crisis First company to do a Multi-Originator securitization transaction First NBFC-MFI to raise funds from a domestic bank against guarantee by Asian Development Bank and IFMR Capital Raised
Slide 6: Strong Presence in States with High Potential
Strong Presence in States with High Potential Satin is Present Mostly in States of Low MFI Penetration Areas of operations Presence in 16 states – 5 states of Chhatisgarh, Jharkhand, GLP – YTD Dec 15 FY13- Dec State % mix 15 CAGR Himachal Pradesh, West Bangal and Gujarat have been recently (INR mn)
Slide 7: Product Portfolio
Product Portfolio Started operations in 1990 with Individual Lending and Small Business Loans Started the JLG model in May 2008 to diversify its portfolio, expand across geographies and broad base its outreach MFI Presently JLG portfolio accounts for >95% of total loan portfolio operations P
Slide 8: Core Operations: MFI Operations under JLG model
Core Operations: MFI Operations under JLG model Product & Structure Highlights Product Features <= Rs. 60,000 in the first cycle Average loan size <= Rs. 1,00,000 in subsequent cycles < Rs. 1,00,000 p.a. in rural areas Target income segment < Rs. 1,60,000 p.a. in non-rural areas Repayment Every 2 we
Slide 9: Core Operations: MFI Operations under JLG model
Core Operations: MFI Operations under JLG model Strong and Robust Process Flow Area selection is done on the basis of a detailed survey report using a set of variables like population, poverty level, Area Selection income, employment & sent to the COO for approval Village is selected based on th
Slide 10: Diversified Loan Book and Strong Client Relationship
Diversified Loan Book and Strong Client Relationship Trend in Loan Cycle First & second time borrowers form ~80% of GLP and volume, indicating high growth in borrower addition over the years Gross Loan Portfolio (INR mn) Clients Outreach Cycles FY13 FY14 FY15 YTD Dec-15 Cycles FY13 FY14 FY15 YTD Dec
Slide 11: Strong and Diversified Lending Relationships
Strong and Diversified Lending Relationships Diversified Lending Portfolio Disbursement by Banks/ FIs (INR mn) Highest number of lenders in the MFI space – 66 relationships 25,000 23,511 Spread across Public Sector Banks, Private Banks, Foreign Banks, NBFCs and Foreign Institutions 19,160 20,000
Slide 12: Other Businesses – Business Correspondent Services
Other Businesses – Business Correspondent Services Under this business, Satin capitalizes on its existing geographical reach while furthering financial inclusion in remote areas Taraashna Services, a group company of Satin provides BC services Satin gets 10% of Taraashna’s gross receipts for tec
Slide 13: Strong Operational Performance
Strong Operational Performance.. No. of Villages Branch Network 40,000 400 364 37% CAGR 350 33% CAGR 29,038 30,000 300 267 22,499 250 199 20,000 16,135 200 161 11,945 150 10,000 100 50 0 0 FY13 FY14 FY15 YTD Dec 15 FY13 FY14 FY15 YTD Dec 15 No. of Borrowers Disbursements Trend (INR mn) 20,00,000 25,
Slide 14: Improving Productivity and High Quality Portfolio
..Improving Productivity and High Quality Portfolio.. Disbursement/ branch (INR mn) Disbursement/ employee (#) 100 10 9.5 89 51% CAGR 47% CAGR 80 8 62 6.3 6.0 56 60 6 4.4 39 40 4 20 2 0 0 FY13 FY14 FY15 YTD Dec 15 FY13 FY14 FY15 YTD Dec 15 Opex/ Avg. AUM PAR 90 9.0% 7.7% 7.6% O/S amount (INR mn) No.
Slide 15: Has Resulted in Robust Financial Performance
..Has Resulted in Robust Financial Performance RoE Tree FY13 FY14 FY15 Total Income1 21.0% 23.4% 20.3% Interest expense 12.1% 13.0% 11.1% Net Interest Income 8.9% 10.5% 9.2% Opex 7.7% 7.6% 6.3% Provision for Tax 0.3% 1.0% 0.9% RoA2 0.7% 1.7% 2.0% Avg Assets/ Avg Net worth 6.5x 8.6x 12.3x RoE 3.8% 11
Slide 16: Financial Summary – Balance Sheet
Financial Summary – Balance Sheet Figures in INR mn Particulars FY13 FY14 FY15 YTD Dec 14 YTD Dec 15 Net Worth (Including Share warrants)* 1,237 1,384 1,935 1,837 2796 Preference shares - 60 60 60 - Total Borrowings 5,898 9,087 16,301 14,284 22,754 Total Liabilities 7,135 10,531 18,296 16,181 25,550
Slide 17: Financial Summary – P&L Statement
Financial Summary – P&L Statement Figures in INR mn Particulars FY13 FY14 FY15 YTD Dec 14 YTD Dec 15 Total Revenue Interest income on Portfolio Loans 698 1467 2374 1,730 2747 Income from securitization 88 116 330 193 563 Processing Fee income 55 112 225 107 198 Interest on FD 98 208 288 193 313 Othe
Slide 18: Experienced Management Team
Experienced Management Team H P Singh, Chairman, MD & Promoter >25 years of experience in microfinance Pioneered the unique concept of daily collection of repayments of loans Experience in the field of auditing, accounts, project financing, microfinance, advisory services and company law matte
Slide 19: Highly Diversified and Experienced Board
Highly Diversified and Experienced Board Satvinder Singh, Director Rakesh Sachdeva, Independent Director Has extensive consumer marketing and finance experience and has Actively involved in evaluating the company's macro issues developed new methods of credit appraisal and marketing Is a Fello
Slide 20: Annexure
Annexure
Slide 21: Microfinance – The Largest BoP Financial Services Sub-Sector
Microfinance – The Largest BoP Financial Services Sub-Sector Industry Snapshot Sector has seen high growth in loan portfolio and client reach FY13- September 15 CAGR India is one of the most active MFI markets in the world 450 30.5 35.0 GLP 28% 400 30.0 The Indian MFI industry has 26mn borrowers
Slide 22: Consolidation around Top Players
Consolidation around Top Players RBI Regulations Indirectly Favor Stronger MFIs Increasing share of large MFIs RBI prescribed that one borrower can borrow from a maximum of two GLP>5bn GLP>1-5 bn GLP<INR 1 bn MFIs, which acts as a high entry barrier 100% 1.9% 2.4% 2.3% 3.0% – Large portion of the
Slide 23: Lenders Have Turned Optimistic
Lenders Have Turned Optimistic Higher debt funding Debt funding during the period (INR bn) Banks have shown greater confidence in the sector and have 300 277 increased their funding to MFIs 250 200 – MFI continues to enjoy Priority Sector status 150 150 119 * – Greater monitoring and regulations f
Slide 24: Positive Regulatory Developments have brought Stability & Growth
Positive Regulatory Developments have brought Stability & Growth Allegations of malpractices like coercive collection methods, high interest rates resulting in farmer 2010 Andhra MFI Act suicides in Andhra Pradesh Andhra Pradesh passes the MFI act – collection efficiencies drop to <20% Guideline
Slide 25: Positive Regulatory Developments have brought Stability & Growth
Positive Regulatory Developments have brought Stability & Growth Comprehensive national-level Financial Inclusion scheme launched - Pradhan Mantri Jan Dhan Jan Dhan Yojna Yojana The scheme includes universal access to banking facilities starting with Basic Banking Accounts with inbuilt overdraft
Slide 26: Thank You
Thank You
Slide 27: Contact Information
Contact Information For Any Queries, Contact Amit Kumar Gupta VP – Accounts & Finance Satin Creditcare Network Limited E: amit.gupta@satincreditcare.com T: +91 11 4754 5000 (Ext – 253) 26
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