Creditaccess Grameen Ltd. · NSE:CREDITACC

Creditaccess Grameen — Q3 FY21 Earnings Presentation

64 slides from Creditaccess Grameen's earnings presentation, Jan 29, 2021

  1. Slide 1: Cover letter to stock exchanges

    January 29, 2021 To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers The Exchange Plaza Dalal Street Bandra Kurla Complex Bandra (East) Mumbai- 400001 Mumbai- 400051 Scrip code: 541770 Scrip code: CREDITACC Dear Sir/ Ma’am, Sub.: Intimation -Investor Presentation We her

  2. Slide 2: Q3 & 9M FY21 Investor Presentation

    CreditAccess Grameen Limited Q3 & 9M FY21 Investor Presentation January 2021 www.creditaccessgrameen.com

  3. 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

  4. Slide 4: Discussion Summary

    Discussion Summary Key Business Updates Consolidated Results Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Investment Rationale Annexure www.creditaccessgrameen.com 3

  5. Slide 5: Microfinance Organization of the Year – Two Consecutive Years

    Microfinance Organization of the Year – Two Consecutive Years CreditAccess Grameen Consecutively Wins the Prestigious ‘Microfinance Organization of the Year’ Award The award conferred at the 12th Inclusive Finance India Awards 2020 www.creditaccessgrameen.com 4

  6. Slide 6: Balancing Robust Business Growth and Early Risk Recognition

    Balancing Robust Business Growth and Early Risk Recognition Business is Back on Pre-COVID Growth Path in Q3 FY21 Early Risk Recognition and Conservative Provisioning GLP grew by 39% YoY and 10% QoQ to INR 12,321 Cr CAGL: Ahead of the industry on risk recognition & provisioning • New Disbursals (Jun-

  7. Slide 7: Resilient Business Model Leading to Faster Recovery (CAGL) (1/3)

    Resilient Business Model Leading to Faster Recovery (CAGL) (1/3) PAR 0 PAR 30 PAR 60 PAR 90 15.9% 16.1% 14.7% 13.6% Significant 12.0% 11.3% roll-back in PAR Demonetisation 10.3% 8.9% Scenario: 8.1% was witnessed 7.3% 6.3% 6.0% 5.6% CAGL’s 9.1% 9.1% 8.5% over three 8.0% 3.7% 7.2% 6.8% PAR Movement 6.

  8. Slide 8: Resilient Business Model Leading to Faster Recovery (CAGL) (2/3)

    Resilient Business Model Leading to Faster Recovery (CAGL) (2/3) Improvement in Monthly Collections 96% 92% 91% 88% 88% 89% 89% 88% Sep-20 Oct-20 Nov-20 Dec-20 CE% (excl. arrears) CE% (incl. arrears) Reduction in % Portfolio of Non-Paying Customers Dec-20 88% 7% 5% Full Payment Nov-20 84% 9% 7% Part

  9. Slide 9: Resilient Business Model Leading to Faster Recovery (CAGL) (3/3)

    Resilient Business Model Leading to Faster Recovery (CAGL) (3/3) Absolute PAR Reduction PAR 0 Sep-20 Oct-20 Nov-20 Dec-20 Dec-20 vs. Oct-20 Karnataka 14.6% 15.2% 12.6% 8.6% -40% Tamil Nadu 10.4% 12.1% 12.2% 10.1% -8% Madhya Pradesh 14.6% 15.2% 13.5% 9.8% -26% Others 15.6% 15.0% 12.2% 8.3% -31% Total

  10. Slide 10: Early Risk Recognition & Conservative Provisioning (CAGL)

    Early Risk Recognition & Conservative Provisioning (CAGL) INR Cr CAGL Policy (IND-AS) NBFC Industry Norms (IND-AS) Additional Asset Classification Asset Classification (dpd) EAD EAD% ECL% EAD EAD% ECL% ECL vs. (dpd) NBFC Industry 0-15 (GL) Stage 1 9,007.1 90.2% 0.7% Stage 1: 0-30 9,106.2 91.2% 0.7%

  11. Slide 11: New Disbursements Back on Pre-COVID Growth Path (CAGL)

    New Disbursements Back on Pre-COVID Growth Path (CAGL) Significant Pickup in Loan Disbursements, back to Pre-COVID Growth Trend… (INR Cr) 1,560 1,504 1,012 1,084 1,064 1,046 881 968 806 525 498 396 0 46 0 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-

  12. Slide 12: Update on Collections & Provisioning at MMFL

    Update on Collections & Provisioning at MMFL Gradual Alignment of Provisioning Policy with CAGL INR Cr MMFL Policy Improvement in Monthly Collections Asset Classification (dpd) EAD EAD % ECL% Stage 1 0-30 1,890.6 90.8% 2.0% 88% 87% Stage 2 31-90 132.9 6.4% 15.6% 86% 85% 84% 84% 84% 83% Stage 3 90+ 5

  13. Slide 13: Discussion Summary

    Discussion Summary Key Business Updates Consolidated Results Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Business Overview Annexure www.creditaccessgrameen.com 12

  14. Slide 14: Q3 FY21: Consolidated Performance Highlights

    Q3 FY21: Consolidated Performance Highlights Branches 1,389 GLP Active Borrowers (+49.7% YoY) INR 12,321 Cr 39.06 Lakh (+38.9% YoY) (+41.0%) Employees 14,704 (+40.5% YoY) ROA PPOP PAT -2.3% INR 170 Cr INR -79 Cr (-15.0% YoY) (-173.3% YoY) ROE -9.4% Total Equity INR 3,702 Cr GNPA 6.14%/ 0.90% * Provi

  15. Slide 15: Q3 FY21: Consolidated P&L Statement

    Q3 FY21: Consolidated P&L Statement Profit & Loss Statement (INR Cr) Q3 FY21 Q3 FY20 YoY% Q2 FY21 QoQ% 9M FY21 9M FY20 YoY% Interest income 513.2 416.7 23.2% 567.4 -9.5% 1,678.1 1,162.8 44.3% - Interest on Loans 502.2 411.7 22.0% 556.5 -9.8% 1,649.3 1,137.4 45.0% - Income from Securitisation 3.2 3.3

  16. Slide 16: Q3 FY21: Consolidated Balance Sheet

    Q3 FY21: Consolidated Balance Sheet Balance Sheet (INR Cr) Q3 FY21 Q3 FY20 YoY% Q2 FY21 QoQ% Cash & Other Bank Balances 1,586.9 974.2 62.9% 1,855.4 -14.5% Loans - Balance sheet assets (Net of Impairment Loss Allowance) 11,221.0 8,101.5 38.5% 10,137.2 10.7% - Securitised assets 32.6 11.2 190.5% 60.3

  17. Slide 17: Discussion Summary

    Discussion Summary Key Business Updates Consolidated Results Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Investment Rationale Annexure www.creditaccessgrameen.com 16

  18. Slide 18: Q3 FY21: CAGL Standalone Performance Highlights

    Q3 FY21: CAGL Standalone Performance Highlights NIM Cost/Income Ratio 8.7 %1 (9.1% adjusted for GLP 43.5% PPOP higher liquidity impact) INR 10,203 Cr INR 147 Cr (+15.0% YoY) Opex/GLP Ratio (-26.7% YoY) Weighted Avg. COB 4.7% 9.4% ROA Capital Adequacy Ratio Total Equity PAT -2.5% 31.4% INR 3,524 Cr I

  19. Slide 19: Q3 FY21: CAGL Standalone P&L Statement

    Q3 FY21: CAGL Standalone P&L Statement Profit & Loss Statement (INR Cr) Q3 FY21 Q3 FY20 YoY% Q2 FY21 QoQ% 9M FY21 9M FY20 YoY% FY20 Interest income 413.0 416.7 -0.9% 464.5 -11.1% 1,366.6 1,162.8 17.5% 1,617.2 - Interest on Loans 406.8 411.7 -1.2% 459.3 -11.4% 1,353.9 1,137.4 19.0% 1,588.8 - Income f

  20. Slide 20: Q3 FY21: CAGL Standalone Balance Sheet

    Q3 FY21: CAGL Standalone Balance Sheet Balance Sheet (INR Cr) Q3 FY21 Q3 FY20 YoY% Q2 FY21 QoQ% 9M FY21 9M FY20 FY20 Cash & Other Bank Balances 1,322.6 974.2 35.8% 1,662.0 -20.4% 1,322.6 974.2 580.4 Loans - Balance sheet assets (Net of Impairment Loss Allowance) 9,273.7 8,101.5 14.5% 8,377.8 10.7% 9

  21. Slide 21: Q3 FY21: Well-Diversified Liability Mix

    Q3 FY21: Well-Diversified Liability Mix Liability Mix - Institution / Instrument Wise (%) Focus on dynamic liability management Bank - SD • Focus on long-term funding with a mix of domestic & foreign sources 0.3% Bank - NCD 9.4% • Target to meet funding requirement through foreign/longer term NBFCs

  22. Slide 22: Q3 FY21: Stable Liquidity / ALM Position Backed by Continued Support from Lenders

    Q3 FY21: Stable Liquidity / ALM Position Backed by Continued Support from Lenders Static Liquidity / ALM Position For the month For Financial Year Particulars (INR Cr) Jan-21 Feb-21 Mar-21 FY22 FY23 Opening Cash & Equivalents (A) 1,319.5 1,371.3 1,667.8 1,878.2 4,284.4 Loan recovery [Principal] (B)

  23. Slide 23: Q3 FY21: Positive ALM Continues To Contribute Growth

    Q3 FY21: Positive ALM Continues To Contribute Growth Positive ALM Mismatch (in Months) 27.3 26.6 25.3 23.7 23.4 23.7 21.5 19.0 18.6 18.4 18.0 16.0 16.1 16.0 16.5 15.5 14.1 14.7 FY16 FY17 FY18 FY19 FY20 Q2 FY20 Q3 FY20 Q2 FY21 Q3 FY21 Average Maturity of Assets Average Maturity of Liabilities www.cre

  24. Slide 24: Q3 FY21: Stable Credit Ratings

    Q3 FY21: Stable Credit Ratings Q3 FY20 Q3 FY21 Rating Instrument Rating Agency Rating/Grading Rating/Grading CRISIL - A+ (Stable) Bank facilities ICRA A+ (Stable) A+ (Stable) Ind-Ra - A+ (Stable) CRISIL - A+ (Stable) Non-convertible debentures ICRA A+ (Stable) A+ (Stable) Ind-Ra - A+ (Stable) Subord

  25. Slide 25: Q3 FY21: Robust Quarterly Performance Trend (1/2)

    Q3 FY21: Robust Quarterly Performance Trend (1/2) Gross Loan Portfolio (GLP) (INR Cr) Disbursements (INR Cr) 15.0% 35.4% 9,896 9,680 10,203 4,032 8,872 9,207 2,977 2,916 1,420 46 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Margin Analysis (%) Operating Efficiency

  26. Slide 26: Q3 FY21: Robust Quarterly Performance Trend (2/2)

    Q3 FY21: Robust Quarterly Performance Trend (2/2) Asset Quality (%) PAT (INR Cr) 6.84% 108 5.18% 78 4.30% 64 2.78% 5.94% 23 1.58% 1.49% 1.51% 1.64% 0.82% -72 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 GNPA Provisioning (ECL) Total Equity (INR Cr) & Debt/Equity Ra

  27. Slide 27: Q3 FY21: Strong Business Traction With Rural Focus

    Q3 FY21: Strong Business Traction With Rural Focus... Gross Loan Portfolio (GLP) (INR Cr) Borrowers (‘000) 15.0% 2.4% 10,203 9,896 9,680 2,905 2,876 2,837 9,207 2,770 2,802 8,872 499 393 492 74 74 72 69 429 66 456 9,397 9,188 9,810 2,831 2,802 2,730 2,768 8,417 8,778 2,703 Q3 FY20 Q4 FY20 Q1 FY21 Q2

  28. Slide 28: Q3 FY21: Backed by Consistent Growth In Infrastructure

    Q3 FY21: ...Backed by Consistent Growth In Infrastructure Branches Kendras (Group Lending) (‘000) 8.1% 928 929 929 929 929 200 70 71 71 71 71 196 195 195 185 858 858 858 858 858 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Group Lending Retail Finance Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Employees Loa

  29. Slide 29: Q3 FY21: Along With Sustainable Productivity

    Q3 FY21: …Along With Sustainable Productivity GLP / Branch (INR Cr) GLP / Loan Officer (INR Cr) 7.0 6.9 5.5 6.5 6.0 0.7 0.7 0.6 0.6 0.7 9.8 11.0 10.7 10.2 11.4 1.3 1.4 1.4 1.2 1.3 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Group Lending Retail Finance Group Lendi

  30. Slide 30: Q3 FY21: Product Range To Meet Diverse Customer Needs

    Q3 FY21: …Product Range To Meet Diverse Customer Needs GLP - Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Product Mix (INR Cr) % of Total (INR Cr) % of Total (INR Cr) % of Total (INR Cr) % of Total (INR Cr) % of Total IGL 7,541 85% 8,447 85% 8,278 86% 8,096 88% 9,381 92% Family Welfare 249 3% 168 2% 146

  31. Slide 31: Q3 FY21: District Wise Exposure Trend

    Q3 FY21: District Wise Exposure Trend Portfolio Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 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

  32. Slide 32: Discussion Summary

    Discussion Summary Key Business Updates Consolidated Results Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Investment Rationale Annexure www.creditaccessgrameen.com 31

  33. Slide 33: Q3 FY21: MMFL Performance Highlights

    Q3 FY21: MMFL Performance Highlights NIM Cost/Income Ratio 10.2%1 (10.6% adjusted GLP 52.6% PPOP for higher liquidity impact) INR 2,118 Cr INR 27 Cr (-0.9% YoY) Opex/GLP Ratio (-29.3%) Weighted Avg. COB 5.9% 10.8% ROA Capital Adequacy Ratio Total Equity -0.8% 23.3% INR 415 Cr PAT INR -4 Cr (-124.9%

  34. Slide 34: Q3 FY21: MMFL P&L Statement

    Q3 FY21: MMFL P&L Statement Profit & Loss Statement (INR Cr) Q3 FY21 Q3 FY20 YoY% Q2 FY21 QoQ% 9M FY21 9M FY20 YoY% FY20 Interest income 100.3 116.8 -14.2% 102.9 -2.6% 311.2 336.9 -7.6% 454.9 - Interest on Loans 96.4 110.3 -12.6% 97.3 -0.9% 295.1 314.4 -6.1% 422.3 - Income from Securitisation 2.2 5.

  35. Slide 35: Q3 FY21: MMFL Balance Sheet

    Q3 FY21: MMFL Balance Sheet Balance Sheet (INR Cr) Q3 FY21 Q3 FY20 YoY% Q2 FY21 QoQ% 9M FY21 9M FY20 FY20 Cash & Other Bank Balances 264.3 67.3 292.6% 193.4 36.6% 264.3 67.3 137.1 Investment in Mutual Funds 0.0 5.0 -100.0% 50.4 -100.0% 0.0 5.0 45.0 Loans - Balance sheet assets (Net of Impairment Los

  36. Slide 36: Q3 FY21: Quarterly Performance Trend (1/4)

    Q3 FY21: Quarterly Performance Trend (1/4) Gross Loan Portfolio (GLP) (INR Cr) Disbursements (INR Cr) -0.9% 8.7% 2,137 2,100 2,044 2,118 558 1,975 513 415 228 0.4 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 PAT (INR Cr) Total Equity (INR Cr) & Debt/Equity Ratio 4.

  37. Slide 37: Q3 FY21: Quarterly Performance Trend (2/4)

    Q3 FY21: Quarterly Performance Trend (2/4) Margin Analysis (%) Operating Efficiency (%) 21.5% 22.3% 21.3% 5.9% 5.9% 5.9% 20.8% 5.5% 19.4% 5.1% 49.9% 52.6% 11.9% 12.4% 11.5% 11.2% 40.6% 43.0% 10.2% 39.4% 11.5% 11.7% 11.2% 10.9% 10.8% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2

  38. Slide 38: Q3 FY21: Quarterly Performance Trend (3/4)

    Q3 FY21: Quarterly Performance Trend (3/4) Borrowers (‘000) Branches -3.7% 2.4% 1,175 1,215 1,198 1,139 1,131 464 459 459 460 449 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Employees Loan Officers 4.7% 8.5% 3,756 3,792 2,056 2,142 3,623 3,672 3,637 1,974 1,972 1,

  39. Slide 39: Q3 FY21: Quarterly Performance Trend (4/4)

    Q3 FY21: Quarterly Performance Trend (4/4) GLP / Branch (INR Cr) GLP / Loan Officer (INR Cr) 4.8 4.5 4.6 4.5 4.3 1.1 1.1 1.0 1.0 1.0 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Borrowers / Branch Borrowers / Loan Officer 2,617 2,619 2,611 2,481 595 616 609 2,459 5

  40. Slide 40: Q3 FY21: District Wise Exposure

    Q3 FY21: District Wise Exposure Portfolio Q4 FY20 Q3 FY21 Exposure of % of % of Districts No. of No. of Total Total Districts Districts (% of Portfolio) Districts Districts < 0.5% 31 33% 29 30% 0.5% - 1% 23 24% 29 30% 1% - 2% 27 28% 26 27% Q4 FY20 Q3 FY21 2% - 4% 12 13% 10 10% District in terms of G

  41. Slide 41: Q3 FY21: Diversified Liability, Stable Liquidity, Positive ALM

    Q3 FY21: Diversified Liability, Stable Liquidity, Positive ALM Liability Mix – Static Liquidity / ALM Position For the month Q3 FY21 Institution / Instrument Wise Particulars (INR Cr) Jan-21 Feb-21 Mar-21 Banks – Term Loan 50.7% Opening Cash & Equivalents (A) 264.6 280.4 325.3 FIs – Term Loan 18.8%

  42. Slide 42: Discussion Summary

    Discussion Summary Key Business Updates Consolidated Results Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Investment Rationale Annexure www.creditaccessgrameen.com 41

  43. Slide 43: Investment Rationale

    Investment Rationale 2 3 Strong Parentage Customer Centric of CreditAccess Business Model India N.V. 1 4 Market Leadership, Contiguous District Consistent Growth Key Differentiators Based Expansion & Asset Quality With Rural Focus 6 5 Unique Human Classical Joint Capital & Internal Lending (JLG) Aud

  44. Slide 44: Leading MFI with Expanded Scale & Footprint (1/2)

    Leading MFI with Expanded Scale & Footprint (1/2) Strengthened Leadership Position with ~ INR 12,000 Cr Portfolio Augmented Borrower Base of over 4.0 Mn GLP (INR Cr) Borrowers (‘000) CAGR 47.4% CAGR 35.7% 11,996 4,055* 2,100 67.6% 64.2% 1,215 7,159 2,470 1,851 4,975 9,896 1,450 1,196 2,905 3,075 2,5

  45. Slide 45: Leading MFI with Expanded Scale & Footprint (2/2)

    Leading MFI with Expanded Scale & Footprint (2/2) Expanded Branch Network & Human Infrastructure to Drive Future Growth Branches Loan Officers Employees CAGR 47.0% CAGR 37.2% CAGR 39.4% 1,393 14,496 9,688 464 1,972 3,672 107.9% 68.0% 79.8% 5,768 8,064 670 4,544 6,306 516 3,668 7,716 4,952 10,824 393

  46. Slide 46: Consistent Organic (Standalone) Growth Trend (1/3)

    Consistent Organic (Standalone) Growth Trend (1/3) Note: Refer Annexure for definition of key ratios Gross Loan Portfolio (GLP) (INR Cr) Disbursements (INR Cr) CAGR 40.5% CAGR 32.7% 10,389 9,896 8,221 7,159 499 4,975 6,082 3,075 325 2,539 51 3,349 3,403 9,397 0 1 6,834 3,075 4,923 2,539 FY16 FY17 FY

  47. Slide 47: Consistent Organic (Standalone) Growth Trend (2/3)

    Consistent Organic (Standalone) Growth Trend (2/3) Note: Refer Annexure for definition of key ratios Asset Quality (%) PAT (INR Cr) 2.78% CAGR 40.6% 1.26% 1.14% 322 328 1.49% 212 0.75% 0.59% 0.08% 0.08% 84 75 FY16* FY17* FY18 FY19 FY20 FY16* FY17* FY18 FY19 FY20 GNPA Provisioning (ECL) Total Equity

  48. Slide 48: Consistent Organic (Standalone) Growth Trend (3/3)

    Consistent Organic (Standalone) Growth Trend (3/3) Branches Borrowers (‘000) & Retention Rate (%) 86% 86% 84% 87% 85% 929 2,905 670 71 2,470 74 516 1,851 41 393 60 1,450 298 30 1,196 6 5 858 0 2,831 0 610 0 2,429 388 486 1,450 1,845 298 1,196 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Group L

  49. Slide 49: Strong Parentage of CreditAccess India N.V.

    Strong Parentage of CreditAccess India N.V. Committed to Micro Finance Business Strong Financial Support • Invested through multiple rounds of capital funding along with • CreditAccess India N.V. (CAI) specialises in Micro and Small secondary purchase during 2009 to 2017 Enterprises financing • Disp

  50. Slide 50: Customer Centric Business Model (1/2)

    Customer Centric Business Model (1/2) Partnering in growth with diverse product One of the Lending rate lowest of 18%-22%, lending rates among- suite catering to entire customer life cycle the lowest in the industry 19.35% Customer flexibility - Even in a group, borrowers members can canhave havedif

  51. Slide 51: Customer Centric Business Model (2/2)

    Customer Centric Business Model (2/2) Loan Customer Centric Ticket Size Tenure Cashless shift based Purpose Type Products (INR) (months) on customer’s preference Business Investments and Income Group Income Generation Loan(IGL) 5,000 - 80,000 12-24 • Small loans: Enhancement activities Cash/Cashless

  52. Slide 52: Calibrated, Contiguous District Based Expansion Strategy

    Calibrated, Contiguous District Based Expansion Strategy… Focus on achieving deep penetration within a particular district within three years of commencement of operations Gradual expansion into the next (typically adjoining) district Systematic methodology in selection of new districts based on ava

  53. Slide 53: Leading To Geographic Diversification

    …Leading To Geographic Diversification Our Presence Branch Network Q3 FY21 Q3 FY21 CAGL + MMFL % Share 14 States / 1 UT Karnataka 298 21.5% 249 Districts Maharashtra 279 20.1% 1,389 Branches Uttar Pradesh Tamil Nadu 381 27.4% 15 Madhya Pradesh 115 8.3% Other States & UTs 316 22.7% Rajasthan Bihar 20

  54. Slide 54: And Deeper Presence with Rural Focus

    …And Deeper Presence with Rural Focus CAGL Districts MMFL Districts Common Districts Q1 FY21 Combined Presence 231 96 78 Districts: 249 Higher District Penetration: Branches Per District Higher Proportion of Rural Borrowers 5.6 82% 96% 86% 4.0 FY20 (CAGL) Q3 FY21 (CAGL + MMFL) FY20 (CAGL) FY20 (MMFL

  55. Slide 55: 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-

  56. Slide 56: 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 • ~90% of employees are hired fresh • Internal audit frequency – Business Heads from rural communities 6 times in a year at branch

  57. Slide 57: Discussion Summary

    Discussion Summary Key Business Updates Consolidated Results Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Investment Rationale Annexure www.creditaccessgrameen.com 56

  58. Slide 58: Shareholding Structure

    Shareholding Structure Shareholding Pattern – December 2020 Top 10 Institutional Investors – December 2020 Nippon MF IIFL AMC Others, 3.49 QIB, 3.57 T Rowe Price Tata AIA Life Insurance MF & AIF, 9.39 ICICI Prudential MF ICICI Prudential Life Insurance Company FPI, 9.52 Kotak Funds – India Midcap Fu

  59. Slide 59: Key Ratios: Definitions

    Key Ratios: Definitions 1. Portfolio Yield = (Interest on loans – processing fees + Income from securitisation)/ Avg. quarterly on-book loans 2. Cost of Borrowings / Weighted Avg. COB = (Borrowing cost – finance lease charges) / Monthly average borrowings 3. Marginal COB = (Borrowings availed during

  60. Slide 60: Provisioning Policy

    Provisioning Policy RBI Norms IND-AS CAGL Policy MMFL Policy Standard 0-15 days (GL) 0-90 days Stage I 0-30 days 0-30 days Assets 0-30 days (RF) Asset Sub-Standard 16-60 days (GL) 91-180 days Stage II 31-90 days 31-90 days Classification Assets 31-90 days (RF) Loss >60 days (GL) >180 days Stage III

  61. Slide 61: 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

  62. Slide 62: COVID-19 CSR Initiatives (Directly Managed By CAGL Team)

    COVID-19 CSR Initiatives (Directly Managed By CAGL Team) In the backdrop of COVID-19 pandemic situation in Number of Type Of Number of Number India, CAGL has decided to focus its CSR activities in Target Beneficiaries Institutions Activity Beneficiaries of Kits towards following activities – / Locat

  63. Slide 63: COVID-19 CSR Initiatives (Directly Managed By CAGL Team)

    COVID-19 CSR Initiatives (Directly Managed By CAGL Team) Estimated Total amount State Expenditures (As on 31st Dec) Karnataka 76,57,000 87,47,918 Maharashtra 44,20,000 46,44,810 Tamil Nadu 26,20,000 23,38,157 Madhya Pradesh 12,65,000 11,87,841 Chhattisgarh 4,51,000 5,04,775 Odisha 3,85,000 5,41,586

  64. Slide 64: For Further Queries:

    For Further Queries: Nilesh Dalvi Head – Investor Relations Contact No – 9819289131 Email ID – nilesh.dalvi@grameenkoota.org www.creditaccessgrameen.com 63

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