Creditaccess Grameen Ltd. · NSE:CREDITACC
Creditaccess Grameen — Q2 FY20 Earnings Presentation
43 slides from Creditaccess Grameen's earnings presentation, Oct 30, 2019
Slide 1: Intimation of Investor Presentation to Stock Exchanges
October 30, 2019 The General Manager The Vice President, Listing Department National Department of Corporate Services – Listing Dept. Stock Exchange of India Limited The Exchange BSE Limited Plaza Phiroze Jeejeebhoy Towers Dalal Bandra Kurla Complex Bandra Street (East) Mumbai 400051 Mumbai 400001 S
Slide 2: Q2 & H1 FY20 Investor Presentation
CreditAccess Grameen Limited Q2 & H1 FY20 Investor Presentation October 2019 www.grameenkoota.org
Slide 3: Disclaimer
Disclaimer By accessing this presentation, you agree to be bound by the following terms and conditions. This presentation (which may reflect some price sensitive information in terms of SEBI regulations and Companies Act, 2013, as amended from time to time) has been prepared by CreditAccess Grameen
Slide 4: Discussion Summary
Discussion Summary Q2 & H1 FY20 Result Update Investment Rationale Business Outlook Annexure www.grameenkoota.org 3
Slide 5: Q2 FY20: Key Performance Highlights
Q2 FY20: Key Performance Highlights Weighted Avg. COB Cost/Income Ratio GLP Disbursements 10.3% 39.8% Rs 7,905 Cr Rs 2,186 Cr (+36.4% YoY) (+39.2% YoY) Marginal COB Opex/GLP Ratio 10.0% 5.3% Capital Adequacy Ratio ROA Total Equity 34.2% 4.8% PAT Rs 2,555 Cr Rs 101 Cr Tier 1 Ratio ROE (+37.3% YoY) D/
Slide 6: Q2 FY20: Awards & Recognitions
Q2 FY20: Awards & Recognitions Awarded with ‘Water.org and Sa-dhan Awards’ for Awarded Winner in NBFC Category Water and Sanitation Credit Financing – 2019 for FY18 by FE India’s Best Banks under ‘Large NBFC-MFI category’ www.grameenkoota.org 5
Slide 7: Q2 & H1 FY20: Profit & Loss Statement
Q2 & H1 FY20: Profit & Loss Statement Profit & Loss Statement (Rs. Cr) Q2 FY20 Q2 FY19 YoY% Q1 FY20 QoQ% H1 FY20 H1 FY19 YoY% FY19 Interest income 381.5 302.3 26.2% 364.2 4.7% 745.7 586.3 27.2% 1,218.3 - Interest on Loans 372.7 278.5 33.9% 352.5 5.7% 725.3 558.5 29.9% 1,156.1 - Income from Securitis
Slide 8: Q2 & H1 FY20: Balance Sheet
Q2 & H1 FY20: Balance Sheet Balance Sheet (Rs. Cr) Q2 FY20 Q2 FY19 YoY% Q1 FY20 QoQ% H1 FY20 H1 FY19 FY19 Cash & Other Bank Balances 678.0 411.3 64.9% 526.4 28.8% 678.0 411.3 615.5 Loans - Balance sheet assets (Net of Impairment Loss Allowance) 7,315.1 5,262.6 39.0% 6,902.2 6.0% 7,315.1 5,262.6 6,40
Slide 9: Q2 FY20: Well-Diversified Liability Mix
Q2 FY20: Well-Diversified Liability Mix Liability Mix - Institution Wise (%) Focus on dynamic liability management 12%, • Focus on long-term funding with a mix of domestic & foreign sources FPIs - Foreign • Target to meet 40%-50% of funding requirement through foreign 23%, sources over medium term F
Slide 10: Q2 FY20: Comfortable Liquidity Position
Q2 FY20: Comfortable Liquidity Position To Meet Obligations And Fulfil Growth Requirements For the month For the Financial year 2019-2020 Particulars (Rs Cr) Oct-19 Nov-19 Dec-19 2021 (Oct-19 to Mar-20) Opening Cash & Equivalents* (A) 678.0 1,017.4 1,135.1 678.0 1,848.9 Loan recovery [Principal] (B)
Slide 11: Q2 FY20: Positive ALM Continues To Contribute Growth
Q2 FY20: Positive ALM Continues To Contribute Growth Positive ALM Mismatch (in Months) 25.3 23.4 23.7 21.5 21.2 20.3 19.4 19.0 18.6 16.0 16.1 16.0 15.7 15.0 15.3 14.7 13.6 14.1 FY15 FY16 FY17 FY18 FY19 Q1 FY19 Q2 FY19 Q1 FY20 Q2 FY20 Average Maturity of Assets Average Maturity of Liabilities www.gra
Slide 12: Q2 FY20: Rating Upgrade & Reaffirmations
Q2 FY20: Rating Upgrade & Reaffirmations Q2 FY19 Q2 FY20 Rating Instrument Rating Agency Rating/Grading Rating/Grading Bank facilities ICRA ICRA A+ (Stable) ICRA A+ (Stable) Non-convertible debentures ICRA ICRA A+ (Stable) ICRA A+ (Stable) Subordinated debt ICRA ICRA A+ (Stable) ICRA A+ (Stable) Com
Slide 13: Q2 FY20: Robust Quarterly Performance Trend (1/2)
Q2 FY20: Robust Quarterly Performance Trend (1/2) Gross Loan Portfolio (GLP) (Rs Cr) Disbursements (Rs Cr) 36.4% 39.2% 3,272 7,619 7,905 7,159 5,794 6,085 2,310 2,186 1,571 1,762 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Margin Analysis (%) Operating Efficiency
Slide 14: Q2 FY20: Robust Quarterly Performance Trend (2/2)
Q2 FY20: Robust Quarterly Performance Trend (2/2) Asset Quality (%) PAT (Rs Cr) 37.3% 1.19% 1.01% 0.61% 0.55% 0.52% 100 96 101 73 76 0.05% 0.00% 0.00% 0.00% 0.00% # Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 GNPA NNPA Total Equity (Rs Cr) & Debt/Equity Ratio Retu
Slide 15: Q2 FY20: Strong Business Traction With Rural Focus
Q2 FY20: Strong Business Traction With Rural Focus... Gross Loan Portfolio (GLP) (Rs Cr) Borrowers (‘000) 36.4% 27.1% 7,905 2,564 2,640 7,619 2,470 7,159 2,261 59 373 426 50 6,085 2,078 41 325 26 5,794 200 19 156 7,246 7,479 2,429 2,514 2,581 6,834 2,058 2,235 5,638 5,885 Q2 FY19 Q3 FY19 Q4 FY19 Q1
Slide 16: Backed by Consistent Growth In Infrastructure
Q2 FY20: ...Backed by Consistent Growth In Infrastructure Branches Kendras (Group Lending) (‘000) 35.2% 27.2% 887 175 753 164 169 656 659 670 65 138 150 60 60 46 49 693 822 610 610 610 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Group Lending Retail Finance Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Employ
Slide 17: Along With Sustainable Productivity
Q2 FY20: …Along With Sustainable Productivity GLP / Branch (Rs Cr) GLP / Loan Officer (Rs Cr) 5.4 6.2 0.5 0.6 0.6 4.1 6.5 0.4 0.4 3.4 11.2 10.5 1.2 1.1 1.3 1.3 1.2 9.2 9.6 9.1 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Group Lending Retail Finance Group Lending R
Slide 18: Product Range To Meet Diverse Customer Needs
Q2 FY20: …Product Range To Meet Diverse Customer Needs GLP - Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Product Mix (Rs Cr) % of Total (Rs Cr) % of Total (Rs Cr) % of Total (Rs Cr) % of Total (Rs Cr) % of Total IGL 4,509 78% 4,725 78% 6,088 85% 6,454 85% 6,660 84% Family Welfare 378 7% 261 4% 93 1% 264
Slide 19: District Wise Exposure Trend
Q2 FY20: District Wise Exposure Trend Portfolio Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Exposure of Districts No. of % of Total No. of % of Total No. of % of Total No. of % of Total No. of % of Total (% of Portfolio) Districts Districts Districts Districts Districts Districts Districts Districts Dis
Slide 20: Discussion Summary
Discussion Summary Q2 & H1 FY20 Result Update Investment Rationale Business Outlook Annexure www.grameenkoota.org 19
Slide 21: Investment Rationale
Investment Rationale 2 3 Contiguous District Customer Centric Based Expansion Business Model With Rural Focus 1 4 Strong Parentage Classical Joint of CreditAccess Key Differentiators Lending (JLG) Asia N.V. Model 6 5 Consistent Growth Unique Human Along With Strong Capital & Internal Asset Quality A
Slide 22: Strong Parentage of CreditAccess Asia N.V.
Strong Parentage of CreditAccess Asia N.V. Committed to Micro Finance Business Strong Financial Support • CreditAccess Asia N.V. (CAA) specialises in Micro and Small • Invested through multiple rounds of capital funding along with Enterprises financing secondary purchase during 2009 to 2017 • Operat
Slide 23: Customer Centric Business Model (1/2)
Customer Centric Business Model (1/2) Partnering in growth with diverse product 64% of GLP Lending ratehas of 18%-22%, interest rate among of suite catering to entire customer life cycle the lowest in the industry 18%-19% Customer flexibility - Even in a group, borrowers members can canhave havediff
Slide 24: Customer Centric Business Model (2/2)
Customer Centric Business Model (2/2) Loan Customer Centric Ticket Size Tenure % of Cashless shift based Purpose Yield Type Products (Rs.) (months) GLP on customer’s Business Investments and 21% 31.1% preference Income Generation Group Income Enhancement 5,000 - 80,000 12-24 Loan(IGL) 19% 53.2% • Sm
Slide 25: Calibrated, Contiguous District Based Expansion Strategy
Calibrated, Contiguous District Based Expansion Strategy Focusing on Deep Rural Penetration Presence New states entered in 13 States/UT Q2 FY20 Focus on achieving deep penetration within a particular district 213 Districts within three years of commencement of operations 887 Branches Rajasthan Uttar
Slide 26: Classical JLG Lending Model
Classical JLG Lending Model Group Formation Data Entry & CB Check Group Confirmation Kendra Meetings • Group: 5-10 members • Data entry into CBS at RPCs • CGT by LO for 5 days • Weekly / Fortnightly meetings • Kendra: 2-6 groups • Credit Bureau check • Re-interviews by BM followed by • Duration: 30-
Slide 27: Unique Human Capital, Internal Audit & Controls
Unique Human Capital, Internal Audit & Controls Unique Human Capital Internal Audit & Controls Well-established Operational Structure Sound Understanding of Rural Market • Strong internal audit team of 142 people • ~90% of employees are hired fresh Business Heads from rural communities • Internal au
Slide 28: Strong Performance Track Record (1/3)
Strong Performance Track Record (1/3) Gross Loan Portfolio (GLP) (Rs Cr) Disbursements (Rs Cr) 49.1% 44.3% 7,159 8,221 4,975 325 6,082 2,539 3,075 51 1,447 6,834 3,349 3,403 0 1 4,923 1,894 0 2,539 3,075 1,447 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Group Lending Retail Finance Margin Anal
Slide 29: Strong Performance Track Record (2/3)
Strong Performance Track Record (2/3) Asset Quality (%) PAT (Rs Cr) 322 0.82% 0.61% 212 0.04% 0.08% 0.08% 0.00% 0.00% 0.00% 0.00% 0.00% 84 75 49 FY15* FY16* FY17* FY18 FY19 # FY15* FY16* FY17* FY18 FY19 GNPA NNPA Total Equity (Rs Cr) & Debt/Equity Ratio Return Ratios & Capital Adequacy (%) 4.8 3.4 3
Slide 30: Strong Performance Track Record (3/3)
Strong Performance Track Record (3/3) Branches Borrowers (‘000) & Retention Rate (%) 86% 86% 86% 87% 84% 670 516 60 2,470 393 1,851 41 298 30 1,450 238 5 1,196 6 0 610 845 0 0 486 0 2,429 298 388 0 1,450 1,845 238 845 1,196 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Group Lending Retail Finan
Slide 31: Discussion Summary
Discussion Summary Q2 & H1 FY20 Result Update Investment Rationale Business Outlook Annexure www.grameenkoota.org 30
Slide 32: NBFC-MFIs Best Placed To Address Rural Credit Needs
NBFC-MFIs Best Placed To Address Rural Credit Needs 75% Unbanked Households in Rural Areas1- Large Untapped Opportunity • Massive Govt. thrust to boost financial Low penetration of banking credit inclusion - NBFC-MFIs to play a key role Total in rural areas in furthering this Households (247 Mn) 90%
Slide 33: FY20 Guidance
FY20 Guidance PAT (Rs Cr) 425 – 450 www.grameenkoota.org 32
Slide 34: Discussion Summary
Discussion Summary Q2 & H1 FY20 Result Update Investment Rationale Business Outlook Annexure www.grameenkoota.org 33
Slide 35: Quarterly Disbursement Trend
Quarterly Disbursement Trend FY16 – Rs 3,349 Cr FY17 – Rs 3,403 Cr FY18 – Rs 6,082 Cr FY 19 - Rs 8,221 Cr 3,272 1,911 1,762 1,680 1,616 1,571 1,368 1,296 Impact of 1,195 Demonetisation 1,011 967 832 709 716 611 538 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY
Slide 36: Provisioning Policy
Provisioning Policy CAGL Policy (Revised w.e.f. RBI Norms IND-AS (Earlier) Q4 FY19) Standard 0-90 days Stage I 0-30 days 0-30 days 0-15 days Assets Asset Sub-Standard 91-180 days Stage II 31-90 days 31-90 days 16-60 days Classification Assets Loss >180 days Stage III >90 days >90 days >60 days Asset
Slide 37: Shareholding Structure
Shareholding Structure Shareholding Pattern (%) – September 2019 Top 10 Investors – September 2019 Bodies Eastspring Investments India Corporate Individuals, & Others, ICICI Prudential Banking & Financial Services Fund 2.35 3.24 MF & AIF, ICICI Prudential Life Insurance Company 6.61 IIFL AMC FPI, 7.
Slide 38: Information Technology
Information Technology Key Technology Partners Key Technology Initiatives (Data Centre & Disaster (Core Banking Solution) Recovery SMS engine Paperless Infrastructure) Field transactions with integration process reduced TAT automation (Email and Collaboration) (Mobility solution) Event based Custome
Slide 39: Community Focus
Community Focus Awarded Winner in NBFC Category for FY 2017-18 by FE • Company aims to meet its responsibility towards society India’s Best Banks through: Comprehensive Awarded Micro Finance with ‘Water.org and Grading Sa-dhan –Awards’ for Water • Diligently follow responsible financing practices &
Slide 40: Effective Use of CSR Funds
Effective Use of CSR Funds Conducts various activities spread across states of Karnataka, Maharashtra, Tamil Nadu and Madhya Pradesh which complement its regular microfinance operations by contributing to improving living conditions of the customer/s. Events Conducted Beneficiaries WASH (Water Sanit
Slide 41: Donation Towards Educating the Slum Children
Donation Towards Educating the Slum Children Donated Rs. 100,000 towards ‘Build Blocks’ program executed by ‘Family Development Services’ an NGO ‘Building Blocks’ Program » Program to empower children living in city slums with best possible education facility » Provides free pre-school education to
Slide 42: Flood Relief Support
Flood Relief Support Amount Date of Type State Districts covered Details (Rs.) Disbursement » Flood Relief fund to Government of Donation Odisha - 500,000 Jun 2019 Odisha Flood Relief MP East Nimar » 60 CAGL families supported 79,312 Sep 2019 » 1029 customers provided with grocery items, blankets an
Slide 43: Thank You
Thank You For any investor related queries , please mail to investorrelations@grameenkoota.org www.grameenkoota.org 42