Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — Investor Presentation (November 2023)
46 slides from Satin Creditcare Network's investor presentation, Nov 20, 2023
Slide 1: Submission of Investor Presentation under Regulation 30 (cover letter)
November 20, 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: Submission of Investor Presen
Slide 2: Corporate Presentation November 2023
Corporate Presentation November 2023
Slide 3: Presentation Path
Presentation Path Company Background 05 - 14 Satin – a Compelling Growth Story 15 - 31 Key Financial & Operational Metrics 33 - 37 Awards & Accolades 38 - 44 2
Slide 4: Disclaimer
Disclaimer This presentation and the accompanying slides have been prepared by and are the sole responsibility of Satin Creditcare Network Limited (“Company”). This presentation contains selected information about the activities of the Company and its subsidiaries as at the date of this presentation
Slide 5: Company Background
Company Background
Slide 6: Key Milestones – Business
Key Milestones – Business Reached 4.9 Lacs active Started JLG Date of incorporation of Satin- IPO and listing on DSE, Registered as NBFC customers & AUM of ~Rs. 580 Model in May October 16, 1990 JSE and LSE(1) with the RBI crore as on Mar’13; Converts 2008 to NBFC-MFI in Nov’13; It begins 1990 1996
Slide 7: Key Milestones – Fund Raising
Key Milestones – Fund Raising First private equity Raised Rs. 2.5 crore from Raised Rs. 30 crore from Lok Capital in Nov’10 and Raised Rs. 18 crore investment; DMP, ShoreCap and MV Rs. 21.8 crore from from Danish Micro Raised Rs. 28.4 crore Rs.37.9 crore infused Raised Rs. 4.87 crore from Mauritius
Slide 8: Capital Structure
Capital Structure 21.2% Promoter Group Market Cap of Book Value^ * 40.0% Florintree Ventures LLP ~Rs. 2,285 crore* Rs. 191/ share Key Institutional Investors 16.6% Bodies Corporate No. of Equity No. of Shareholders Shares# * ~24,000 * Retail & Others 9.96 crore 9.8% 12.4% As of Sep 30, 2023 Market •
Slide 9: Financing Rural India | Leveraging Outreach
Financing Rural India | Leveraging Outreach ✓ Microfinance Loans ✓ Impact Financing viz product loans, WASH loans etc. ✓ ATS: Rs. 45,000 Satin Creditcare Network Ltd ✓ Secured retail MSME lending 100% Subsidiaries ✓ ATS: Rs. 1.53 Lacs Satin Housing Satin Finserv Ltd Finance Ltd ✓ Loans to own, purch
Slide 10: Fostering Inclusive Growth
Fostering Inclusive Growth The history of SCNL goes back to 1990 when it started providing low-ticket finance After more than three decades of experience, we are a financial services group with diversified product portfolio and geographical presence catering to rural India through microfinance, hous
Slide 11: Our Business Model
Our Business Model Sound customer Experienced relationship built Management 1 2 on comprehensive backed by Income understanding of Professional Generating the industry Team Loans (IGL) Housing Long Term Purpose driven Finance Loans (LTL) lending aimed at Diversification by MICROFINANCE & product & 4
Slide 12: Process Flow for the New Members Acquisition
Process Flow for the New Members Acquisition Village Survey Village Selection Open General Meeting KYC Collection Credit Bureau Client Bank by CSO by BM (OGM) Enquiry Account Validation *Applications cannot be disbursed, need to be manually rejected, if documents are rejected 3 times by CSS. KYC Ver
Slide 13: …With Customised Products as per Customer Needs
…With Customised Products as per Customer Needs Income Generation Loan Long Term Loan Mid-Term Loan (Prarambh) (Vriddhi) (Madhya Vriddhi) Ticket Size : Ticket Size : Ticket Size : Rs. 10,000 – Rs. 45,000 Rs. 31,000 – Rs. 75,000 Rs. 10,000 – Rs. 15,000 Tenure: 12 - 24 months Tenure: 24 - 30 months Te
Slide 14: Reaching Far and Wide. Serving Lakhs.
Reaching Far and Wide. Serving Lakhs. (YoY Change) 32.1 Lacs Rs. 10,100 crore 1,335 12,727 Pan-India ACTIVE CUSTOMERS AUM BRANCHES NO. OF EMPLOYEES PRESENCE YoY 20% YoY 33% Added 93 Branches YoY 20% Data as on Sep 30, 2023 / for H1FY24 unless specifically mentioned (YoY data is compared to Sep 30, 2
Slide 15: SCNL (Standalone) - Sustainable AUM Growth
SCNL (Standalone) - Sustainable AUM Growth (Rs. crore) AUM (Standalone) Net customer addition of 4.1 Lacs in H1FY24 on a standalone basis YoY +39% 8,894 7,275 7,929 6,409 6,417 25.6 Lacs Active Customers 29.7 Lacs FY23 H1FY24 FY21 FY22 FY23 H1FY23 H1FY24 Disbursement (Standalone) • Avg monthly disbu
Slide 16: What makes Satin a Compelling Growth Story
What makes Satin a Compelling Growth Story
Slide 17: What makes Satin a Compelling Growth Story
What makes Satin a Compelling Growth Story 01 Widespread and Diversified Geographical Presence 02 Innovative and Scalable Digital Infrastructure. 03 Effective Underwriting Capability 04 Diverse Funding Sources Positive ALM with Sufficient Liquidity 05 Experienced Management Team 06 07 Navigated Cris
Slide 18: 1. Business Trends – Expansion to Secured Asset Class
1. Business Trends – Expansion to Secured Asset Class (Rs. crore) Rs. 10,100 AUM* Rs. 4,525 / DISBURSEMENT ACTIVE CUSTOMERS (As of crore (As of Sep 30, 2023) (H1FY24 / FY23) 32.1 Lacs Sep 30, 2023) 8,087 crore NO. OF BRANCHES (As of NO. OF EMPLOYEES (As of Sep NO. OF LOAN OFFICERS (As of 1,335 Sep 3
Slide 19: 1. Diversified Product Offerings
1. Diversified Product Offerings Satin Housing Finance SCNL Satin Finserv Limited (3) Limited (2) Business Correspondent Product features as on Sep’23 MFI(1) Housing Finance MSME Services Avg. Ticket Size for H1FY24 Rs. 45,000 (JLG) Rs. 11,71,000 Rs. 39,600 Rs. 1,53,000 (Retail) Tenure 6 - 30 months
Slide 20: 1. …Deepening Impact through Enhanced Value Creation
1. …Deepening Impact through Enhanced Value Creation Satin finances product purchase of solar lamps, bicycles, consumer durables etc. and grants loan for safe water and sanitation facilities Financed ~Rs. 80 crore during H1FY24 Enriching Lives Benefits Green Loans Consumer Durables ▪ Enhances the pr
Slide 21: 1. Diversified Geographical Presence
1. Diversified Geographical Presence …serving 32.1 Lacs customers across India Presence across 24 States and UTs 96,000 No. of Villages 1,335 No. of Branches 412 No. of Districts 85 No. of Regional Offices 3.0 Lacs No. of Centers 76% Portfolio in rural India 96.4% Districts with <1% exposure Top 4 S
Slide 22: 1. …Leading to increasing footprints
1. …Leading to increasing footprints % of total AUM AUM H1FY24 States FY16 H1FY24 (Rs. crore) UTTAR PRADESH 40.9% 26.6% 2,682 BIHAR 17.7% 13.8% 1,398 MADHYA PRADESH 15.5% 6.4% 650 2. Reducing exposure to traditional regions PUNJAB 12.7% 6.5% 653 UTTARAKHAND 3.2% 1.5% 148 JAMMU & KASHMIR 0.1% 0.1% 7
Slide 23: 2. Impact of Digital Transformation @Satin
2. Impact of Digital Transformation @Satin Mobile Technology Platform 01 Reduced TAT 02 Organization Impact 03 Go Green 04 • Introduced technology to our 8,000+ • Same day Disbursement • New platform provides • Digitization of the following loan- workforce in Tier 4 & 5 villages to − Process Control
Slide 24: 2. Technology Prowess
2. Technology Prowess 01 In house developed Loan Management System (LMS) CSA Aadhaar E-Sign 04 UPI 2.0 All Your Need, At Your Finger Tip Website 02 Pay Now Improving the loan origination journey QR Code 03 Tightened field level monitoring mechanisms ISO 27001:2013 certified Loan Management System (L
Slide 25: 2. Challenges Vs Solution
2. Challenges Vs Solution Offline KYC & Network Hybrid Application Issue works Online & Offline Customer & Staff Tracking Geo-Tagging Challenges Loan Fraud E-KYC/E-SIGN Solution Cloud computing Application Scalability through AWS & Performance Cash Collection & Cashless Collection & Disbursement Iss
Slide 26: 3. Pillars Upholding the Portfolio Quality
3. Pillars Upholding the Portfolio Quality • Credit bureau • Digitized • Branch and center • Daily reviews on • Branch & Loan • Teams dedicated report for loan onboarding wise PAR reports collection officer grading to address approval delinquency in • Sound pre & post • Periodic Center • Supervisory
Slide 27: 3. PROCESS: The Core of Satin
3. PROCESS: The Core of Satin ❑ Comprehensive customer acquisition journey with CGT, GRT, House Survey & LUC P ❑ Flexible repayment schedule for customer R ❑ Centralized Shared Service O ❑ SOPs on Branch opening & day-end closures and product launches C ❑ Dedicated team in the field to review, track
Slide 28: 3. Improving Asset Quality; Better than Industry Portfolio
3. Improving Asset Quality; Better than Industry Portfolio PAR 1 PAR 90 & ECL Player group-wise asset quality (PAR>90 days) Banks NBFC MFIs Other NBFCs SFBs 8.4% 8.0% PAR 90 13.2% 13.2% 11.8% 11.4% 11.3% ECL % 10.3% 10.1% 9.4% 5.1% 8.8% 8.4% 8.4% 8.3% 8.1% 6.7% 7.7% 6.2% 3.3% 4.1% 3.7% 3.8% 3.2% 2.4
Slide 29: 4. We have a well-diversified Liability Profile…
4. We have a well-diversified Liability Profile… Product-wise Sep’23 Lender-wise Sep’23 1.1% 7.2% 15.8% Term Loan & PTC Banks 24.5% NCD 8.7% NBFC Direct Assignment Domestic Financial Institution 57.5% 11.7% ECB 63.9% Overseas Fund 9.7% Commercial Paper Large Lender Base Bank Loans (Long term) Short
Slide 30: 5. Optimal Liquidity and Robust Capitalization
5. Optimal Liquidity and Robust Capitalization 93% YoY growth in funds raised during the period; • Maintained CRAR above 25% in each of FY21, FY22, FY23 ~76% on-book borrowing • CRAR of 25.7% as of September 30, 2023; well above regulatory requirement Funds Raised during the half 2,512 4,848 • Book
Slide 31: 6. Experienced Management Team
6. Experienced Management Team HP Singh Chairman cum Managing Director Jugal Kataria Rakesh Sachdeva Subir Roy Chowdhury Manoj Agrawal Aditi Singh Anil Kwatra Group Controller CFO CHRO Deputy CFO Head - Strategy Head - Operational Excellence and Innovation Sunil Yadav Dhiraj Jha Bhuvnesh Khanna Amit
Slide 32: 7. Successfully Navigated Crisis During Legacy of Over Three Decades
7. Successfully Navigated Crisis During Legacy of Over Three Decades ❑ Sound Liquidity Position ❑ Implementation of Scalable technology • CRAR at 25.7% as of Sep 30, 2023 • Same day disbursement • Liquidity of around Rs. 1,400 crore as of Sep 30, 2023 • Real-time data Learnings ❑ Strategic Changes •
Slide 33: Key Financial & Operational Metrics
Key Financial & Operational Metrices
Slide 34: Key Operation Metrics
Key Operation Metrics Districts, States and Branches Employees & Loan Officers 1,266 1,232 1,286 1,3351 8,090 8,774 7,449 8,8632 12,635 12,752 12,727 23 23 24 24 11,131 2,023 2,016 2,000 1,909 388 398 405 412 10,612 10,736 10,727 9,222 FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24 Districts States Bra
Slide 35: Business Details
Business Details Particulars H1FY24 H1FY23 FY23 FY22 FY21 AUM (Rs. crore) 10,100 7,575 9,115 7,617 8,379 SCNL 8,894 6,417 7,929 6,409 7,275 On-book Portfolio* 6,588 4,996 5,650 5,145 5,660 Assignment 2,295 1,390 2,258 1,204 1,359 Business Correspondence 11 32 21 60 256 SHFL 567(1) 362 505 318 226 SF
Slide 36: Key Standalone Financials
Key Standalone Financials NII and PAT (Rs. Lakhs) Cost to Income Ratio NII PAT 1,18,552 64.8% 64.3% 57.7% 53.8% 66,033 70,172 45.6% 65,547 53,870 26,433 18,918 11,480 4,023 -1,355 FY21 FY22 FY23* H1FY23* H1FY24 FY21 FY22 FY23^ H1FY23^ H1FY24 ROA and ROE (%) Opex to Avg AUM ROA ROE 6.2% 6.3% 15.0% 5.
Slide 37: Annexure - Financial Performance - Standalone
Annexure - Financial Performance - Standalone Particulars H1FY24 H1FY23 FY23 FY22 FY21 Gross yield (1) 10.81% 9.92% 19.66% 18.44% 17.57% Financial Cost Ratio(2) 4.40% 4.45% 8.04% 8.86% 8.52% Net Interest Margin(3) 6.40% 5.47% 11.62% 9.58% 9.04% Operating Expense ratio(4) 2.92% 3.52% 6.25% 6.20% 5.22
Slide 38: Annexure - P&L Statement - Standalone
Annexure - P&L Statement - Standalone Particulars (Rs. Lakhs) H1FY24 H1FY23 FY23 FY22 FY21 Interest income 79,276 55,772 1,16,008 1,17,011 1,11,686 Dividend income 0 0 0 3 0 Rental income 63 44 117 86 0 Fees and commission income 1,066 1,055 2,140 2,389 4,169 Net gain on fair value changes 285 36,51
Slide 39: Awards and Accolades
Awards and Accolades
Slide 40: Awards and Accolades
Awards and Accolades ▪ Mr. HP Singh bestowed with the ‘India’s Most Trusted Leader’ Award by GPTW, India in 2023 ▪ Mr. HP Singh was conferred as the ‘FE Pillar of the BFSI Industry’ at the Financial Express Modern BFSI Summit 2022 ▪ Mr. HP Singh received the 'CEO of the Year - Micro Finance Company'
Slide 41: Spotlight : Prestigious Accolades
Spotlight : Prestigious Accolades Ranked 30th amongst the ‘Top 100 Won Skoch Award in the Silver India’s Best Companies to Work for Category For Loan Management 2023’ across all industries System 40
Slide 42: Environment – Minimizing Ecological Footprint while Maximizing Efficiency
Environment – Minimizing Ecological Footprint while Maximizing Efficiency Assigned “AA” ESG rating by ESG Risk Green Building Satin’s headquarters – a green building – with solar panels for generation of Assessments & Insights Ltd. electricity and other features like Sewage Treatment Plant Water and
Slide 43: 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 • SCNL customers
Slide 44: 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 45: SDGs in the Core of Our Community Connect Activities
SDGs in the Core of Our Community Connect Activities Infrastructure Development Financial Literacy Workshops In order to enrich the growth and advancement We have conducted 31 workshops* in the states – Rajasthan, Jharkhand and Chhattisgarh, aiming to In of the students, faculty, and the larger In c
Slide 46: 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
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