Creditaccess Grameen Ltd. · NSE:CREDITACC
Creditaccess Grameen — Q1 FY20 Earnings Presentation
39 slides from Creditaccess Grameen's earnings presentation, July 2019
Slide 1: CreditAccess Grameen Limited Q1 FY20 Investor Presentation
CreditAccess Grameen Limited Q1 FY20 Investor Presentation July 2019 www.grameenkoota.org
Slide 2: 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 3: Discussion Summary
Discussion Summary Q1 FY20 Result Update Investment Rationale Business Outlook Annexure www.grameenkoota.org 3
Slide 4: Q1 FY20: Key Performance Highlights
Q1 FY20: Key Performance Highlights Weighted Avg. COB Cost/Income Ratio GLP Disbursements 10.2% 35.4% Rs 7,619 Cr Rs 2,310 Cr (+39.4% YoY) (+42.9% YoY) Marginal COB Opex/GLP Ratio 9.4% 4.8% Capital Adequacy Ratio ROA Total Equity 34.6% 4.8% PAT Rs 2,459 Cr Rs 96 Cr Tier 1 Ratio ROE (+32.7% YoY) D/E
Slide 5: Q1 FY20: Profit & Loss Statement
Q1 FY20: Profit & Loss Statement Profit & Loss Statement (Rs. Cr) Q1 FY20 Q1 FY19 YoY% Q4 FY19 QoQ% FY19 Interest income 364.2 284.0 28.2% 312.4 16.6% 1,218.3 - Interest on Loans 352.5 280.1 25.9% 297.8 18.4% 1,156.1 - Income from Securitisation 10.2 3.5 192.8% 11.6 -11.4% 55.2 - Interest on Deposit
Slide 6: Q1 FY20: Balance Sheet
Q1 FY20: Balance Sheet Balance Sheet (Rs. Cr) Q1 FY20 Q1 FY19 YoY% Q4 FY19 QoQ% Cash & Other Bank Balances 526.4 205.9 155.6% 615.5 -14.5% Loans - Balance sheet assets (Net of Impairment Loss Allowance) 6,902.2 5,275.5 30.8% 6,404.2 7.8% - Securitised assets 194.4 139.5 39.4% 198.6 -2.1% Property, p
Slide 7: Well-Diversified Liability Mix
Q1 FY20: Well-Diversified Liability Mix Liability Mix - Institution Wise (%) Focus on dynamic liability management 14%, • Focus on long-term funding with a mix of domestic & foreign sources FPIs - Foreign • Target to meet 40%-50% of funding requirement through foreign 22%, sources FIs - Domestic • D
Slide 8: Comfortable Liquidity Position To Meet Obligations And Fulfil Growth Requirements
Q1 FY20: Comfortable Liquidity Position To Meet Obligations And Fulfil Growth Requirements For the month For the Financial year 2019-2020 Particulars (Rs Cr) Jul-19 Aug-19 Sep-19 2021 (July-19 to Mar-20) Opening Cash & Equivalents* (A) 525.5 710.7 953.5 525.5 1,976.0 Loan recovery [Principal] (B) 57
Slide 9: Positive ALM Continues To Contribute Growth
Q1 FY20: Positive ALM Continues To Contribute Growth Positive ALM Mismatch (in Months) 25.3 25.3 23.4 21.5 21.5 20.3 19.4 19.0 18.6 16.0 16.1 16.0 16.1 15.7 16.0 15.3 13.6 14.1 FY15 FY16 FY17 FY18 FY19 Q4FY18 Q1FY19 Q4FY19 Q1FY20 Average Maturity of Assets Average Maturity of Liabilities www.grameen
Slide 10: Rating Upgrade & Reaffirmations
Q1 FY20: Rating Upgrade & Reaffirmations Q1 FY19 Q1 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) Commer
Slide 11: Robust Quarterly Performance Trend (1/2)
Q1 FY20: Robust Quarterly Performance Trend (1/2) Gross Loan Portfolio (GLP) (Rs Cr) Disbursements (Rs Cr) 39.4% 42.9% 3,272 7,159 7,619 5,794 6,085 2,310 5,468 1,616 1,571 1,762 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Margin Analysis (%) Operating Efficiency
Slide 12: Robust Quarterly Performance Trend (2/2)
Q1 FY20: Robust Quarterly Performance Trend (2/2) Asset Quality (%) PAT (Rs Cr) 1.19% 32.7% 0.88% 1.01% 0.61% 0.55% 100 96 72 73 76 0.05% 0.05% 0.00% 0.00% 0.00% # Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 GNPA NNPA Total Equity (Rs Cr) & Debt/Equity Ratio Retur
Slide 13: Strong Business Traction With Rural Focus
Q1 FY20: Strong Business Traction With Rural Focus... Gross Loan Portfolio (GLP) (Rs Cr) Borrowers (‘000) 39.4% 32.1% 7,619 2,564 2,470 7,159 2,261 373 41 50 6,085 325 2,078 5,794 1,941 26 5,468 19 156 200 12 97 7,246 2,429 2,514 6,834 2,058 2,235 5,371 5,638 5,885 1,930 Q1 FY19 Q2 FY19 Q3 FY19 Q4 F
Slide 14: Backed by Consistent Growth In Infrastructure
Q1 FY20: ...Backed by Consistent Growth In Infrastructure Branches Kendras (Group Lending) (‘000) 31.4% 30.7% 753 656 659 670 164 169 573 60 150 46 49 60 129 138 32 610 610 610 693 541 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Group Lending Retail Finance Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Employ
Slide 15: Along With Sustainable Productivity
Q1 FY20: …Along With Sustainable Productivity GLP / Branch (Rs Cr) GLP / Loan Officer (Rs Cr) 5.4 6.2 0.5 0.6 4.1 0.3 0.4 0.4 3.0 3.4 11.2 10.5 1.2 1.2 1.1 1.3 1.3 9.9 9.2 9.6 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Group Lending Retail Finance Group Lending R
Slide 16: Product Range To Meet Diverse Customer Needs
Q1 FY20: …Product Range To Meet Diverse Customer Needs GLP - Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Product Mix (Rs Cr) % of Total (Rs Cr) % of Total (Rs Cr) % of Total (Rs Cr) % of Total (Rs Cr) % of Total IGL 4,364 80% 4,509 78% 4,725 78% 6,088 85% 6,454 85% Family Welfare 380 7% 378 7% 261 4% 93
Slide 17: District Wise Exposure Trend
Q1 FY20: District Wise Exposure Trend Portfolio Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 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 18: Discussion Summary
Discussion Summary Q1 FY20 Result Update Investment Rationale Business Outlook Annexure www.grameenkoota.org 18
Slide 19: Investment Rationale Key Differentiators
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 20: 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 21: Customer Centric Business Model (1/2)
Customer Centric Business Model (1/2) Partnering in growth with diverse product 59% 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 22: 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% 36.2% preference Income Generation Group Income Enhancement 5,000 - 80,000 12-24 Loan(IGL) 19% 48.5% • Sm
Slide 23: Calibrated, Contiguous District Based Expansion Strategy
Calibrated, Contiguous District Based Expansion Strategy Focusing on Deep Rural Penetration Presence 10 States/UT Focus on achieving deep penetration within a particular district Entered Rajasthan within three years of commencement of operations & Gujarat in July 170 Districts 2019 753 Branches Ente
Slide 24: 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 25: 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 137 people • ~90% of employees are hired fresh Business Heads from rural communities • Internal au
Slide 26: Strong Performance Track Record (1/3)
Strong Performance Track Record (1/3) Gross Loan Portfolio (GLP) (Rs Cr) Disbursements (Rs Cr) 5x 4.3x 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 Analysis
Slide 27: 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 28: 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 29: Discussion Summary
Discussion Summary Q1 FY20 Result Update Investment Rationale Business Outlook Annexure www.grameenkoota.org 29
Slide 30: 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 Households in furthering this 90% (247 Mn)
Slide 31: FY20 Guidance
FY20 Guidance PAT (Rs Cr) 425 - 450 www.grameenkoota.org 31
Slide 32: Discussion Summary
Discussion Summary Q1 FY20 Result Update Investment Rationale Business Outlook Annexure www.grameenkoota.org 32
Slide 33: 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 34: 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 35: Shareholding Structure
Shareholding Structure Shareholding Pattern (%) – June 2019 Top 10 Investors – June 2019 Canara Robeco MF Corporate Bodies, Eastspring Investments India Individuals, 2.41 3.23 Others, 0.21 HDFC Life Insurance Co. MF & AIF, 5.49 ICICI Prudential Life Insurance Co. FPI, 8.52 ICICI Prudential MF IIFL A
Slide 36: 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 37: Community Focus
Community Focus Social Rating - ∑α (retained) • Company aims to meet its responsibility towards society through: Client Protection Certification • Diligently follow responsible financing practices & client protection principles • Ensure transparency with all stakeholders Comprehensive Micro Finance
Slide 38: 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 39: Thank You
Thank You For any investor related queries , please mail to csinvestors@grameenkoota.org www.grameenkoota.org 39