Creditaccess Grameen Ltd. · NSE:CREDITACC
Creditaccess Grameen — Q2 FY2018-19 Earnings Presentation
56 slides from Creditaccess Grameen's earnings presentation, October 2018
Slide 1: Investor Presentation Q2FY2018-19
Investor Presentation Q2FY2018-19 October 2018 CreditAccess Grameen Limited BSE: 541770 NSE: CREDITACC Corporate Identity No. U51216KA1991PLC053425 www.grameenkooota.org www.grameenkoota.org 1
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: Executive Summary
Executive Summary www.grameenkoota.org 3
Slide 4: Performance driven by strong fundamentals
Performance driven by strong fundamentals Overview Growth in Gross Loan Portfolio (GLP) (INR Cr) » Leading NBFC-MFI in India with gross loan portfolio of INR 5,794 Cr, 23.71 lakhs customers and 656 Branches 5,794 » Predominantly offers micro loans under group liability (MFI loans) 4,975 at 18% to 21
Slide 5: Strong rebound in business performance
Strong rebound in business performance Q2FY19 5,794 Cr 1,571 Cr 310.08 Cr 181.46 Cr 73.46 Cr 0.05% 47.17% 31.5% 44.83% 64.19% 20.69% (0.15)% Q2FY18 3,937 Cr 1,195 Cr 214.10 Cr 110.42 Cr 61.03 Cr 0.2% GLP Disbursement Total Income NII[1] PAT NNPA[2] H1FY19 5,794 Cr 3,187 Cr 596.15 Cr 353.7 Cr 145.68
Slide 6: Update on Liquidity
Update on Liquidity www.grameenkoota.org 6
Slide 7: NBFC-MFIs well placed on liquidity position
NBFC-MFIs well placed on liquidity position Type of Institutions Asset Tenure ALM Mismatch Lenders Profile Majority exposure to CPs, NCDs & debt market For most NBFCs average asset Medium to Long Term instruments and borrowing from Mutual Funds NBFCs maturity tenure is higher than (>=2 to > 10 years
Slide 8: Comfortable liquidity to meet obligations and fulfil growth requirements
Comfortable liquidity to meet obligations and fulfil growth requirements INR in Crore For the month For the Financial year Particulars Oct‐18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 2019-20 Opening Cash & Equivalents* (A) 411 550 706 829 937 1,098 1,228 Loan recovery [Principal](B) 461 442 416 452 383 39
Slide 9: Positive ALM continues to contribute growth
Positive ALM continues to contribute growth Positive ALM Mismatch*( in Months) 21.5 21.2 19.77 19.85 20.34 19.43 19.02 18.55 15.97 16.12 15.74 14.84 14.82 15.03 13.60 14.12 FY15 FY16 FY17 FY18 Q1FY18 Q2FY18 Q1FY19 Q2FY19 Average Maturity of Assets Average Maturity of Liabilities Note: As per IGAAP w
Slide 10: Company Overview
Company Overview www.grameenkoota.org 10
Slide 11: Proven track record of retaining and strengthening fundamentals of micro-credit model in rural areas
Proven track record of retaining and strengthening fundamentals of micro-credit model in rural areas 01 Rural focus enabling the Company to operate in a segment with low competitive intensity 82% Rural Borrower base 02 Experienced & stable management team with strong promoter group backing Key Manag
Slide 12: Industry Fundamentals
Industry Fundamentals www.grameenkoota.org 12
Slide 13: 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 Low penetration of banking credit in rural areas 90% » Massive Govt. thrust to boost financial Total inclusion - NBFC-MFIs to play a key role in Households furthering this. (247 Mn
Slide 14: Operational Highlights
Operational Highlights www.grameenkoota.org 14
Slide 15: Strong rural growth story
Strong rural growth story Outreach 50 656 700 45 600 40 516 35 500 393 400 30 298 23.71 25 21.87 20.78 238 18.51 300 20 16.54 176 13.87 14.5 15 11.96 200 9.23 8.44 5.68 10 5.04 100 5 0 0 FY -14 FY- 15 FY- 16 FY- 17 FY- 18 Q2FY- 19 Customers (Lakhs) Borrowers (Lakhs) Branches Borrower Base » 656 bran
Slide 16: Demonstrated robust growth
Demonstrated robust growth Kendras ('000) Borrowers ('000) 1,941 2,078 134 143 1,530 1,606 99 103 Q1FY18 Q1FY19 Q2FY18 Q2FY19 Q1FY18 Q1FY19 Q2FY18 Q2FY19 Disbursement(Cr) Gross Loan Portfolio (Cr) 1,680 1,616 1,571 5,468 5,794 1,195 3,937 3,741 Q1FY18 Q1FY19 Q2FY18 Q2FY19 Q1FY18 Q1FY19 Q2FY18 Q2FY19
Slide 17: Infrastructure in place to fuel further growth
Infrastructure in place to fuel further growth Branches Employees(‘000) 656 573 7,355 6,575 440 5,267 393 4,871 Q1FY18 Q1FY19 Q2FY18 Q2FY19 Q1FY18 Q1FY19 Q2FY18 Q2FY19 Borrowers / Branch Borrowers/ Loan Officers 3,892 3,650 434 3,388 417 425 395 3,167 Q1FY18 Q1FY19 Q2FY18 Q2FY19 Q1FY18 Q1FY19 Q2FY18
Slide 18: Cashless shift based on customer's preference
Cashless shift based on customer’s preference Long term strategy is to move to cashless disbursement mode in phased manner based on customers’ preference. Preference for cashless disbursement given to customers: Small loans: Cash/Cashless based on customers’ preference Larger Loans: Cashless 100% of
Slide 19: 82% portfolio growth in Q2FY19 came from districts outside the Top 10
82% portfolio growth in Q2FY19 came from districts outside the Top 10 » District is the unit of risk in microfinance business, therefore our unit of expansion is district » Geographical expansion strategy: » Penetrate through district centric approach » Expansion through contiguous district approach
Slide 20: Update on Retail Finance Business
Update on Retail Finance Business www.grameenkoota.org 20
Slide 21: Launched retail finance vertical to support customers' growing needs
Launched retail finance vertical to support customers’ growing needs Key drivers Key numbers » Focus on captive and graduated 178 Cr+ Disbursement group lending customers 156 Cr+ Portfolio Group Individual » Separate vertical - Separate Lending lending 19,000+ Customers team , structure and processe
Slide 22: Retail finance contributes 2.69% of total portfolio
Retail finance contributes 2.69% of total portfolio Branches Borrowers (‘000) 19 12 6 46 1 32 0.4 30 5 8 2,195 2,352 2,181 541 610 1,863 432 486 1,529 388 Q1FY18 Q1FY19 Q2FY18 Q2FY19 FY18 Q1FY18 Q1FY19 Q2FY18 Q2FY19 FY18 GL RF GL RF Staff Portfolio (INR Cr) 682 532 416 97 156 77 110 51 4 10 6,043 6,
Slide 23: Product Offerings
Product Offerings www.grameenkoota.org 23
Slide 24: Customer centric product suite
Customer centric product suite Ticket Size Tenure Loan Type Product Purpose Yield (INR) (months) Income Generation Business Investments and Income Enhancement Group 5,000 - 60,000 19%-21% 12-24 Loan(IGL) activities Home Improvement Water Connections, Sanitation and Home Group 5,000 - 50,000 18% 12-4
Slide 25: Financial Highlights
Financial Highlights www.grameenkoota.org 25
Slide 26: Adoption of Ind As Accounting Standards
Adoption of Ind As Accounting Standards » The company has adopted Indian Accounting Standards (Ind AS) with effect from April 2018 » Consolidated figures for Q1 FY19 and Q2 FY19 are compliant with Ind AS » Corresponding figures for Q1 FY18 and Q2 FY18 have been restated to be compliant with Ind AS »
Slide 27: ROA for H1FY19 is 5.1%
ROA for H1FY19 is 5.1% Particulars Q1FY18 Q1FY19 Q2FY18 Q2FY19 H1FY18 H1FY19 Spread Analysis (as % of Avg. Quarterly Gross Loan Portfolio) Gross Yield 20.9% 21.9% 22.3% 22.0% 21.9% 22.0% Portfolio Yield 19.4% 20.7% 20.7% 20.5% 20.3% 20.6% Finance Cost 9.9% 7.5% 9.2% 7.6% 9.6% 7.5% NII 9.5% 13.2% 11.
Slide 28: Profit for H1FY19 grew by 94% YoY
Profit for H1FY19 grew by 94% YoY Profit & Loss Statement (INR Cr) Q1FY18 Q1FY19 YoY% Q2FY18 Q2FY19 YoY% H1FY18 H1FY19 YoY% Interest Income (A) 177.01 284.00 60% 211.99 302.27 43% 389.00 586.27 51% Dividend Income (B) - - - 0.09 - -100% 0.09 - -100% Net gain on Fair Value Changes (C) 0.49 0.91 83% 1
Slide 29: Strong balance sheet supported by high capital base and robust liquidity
Strong balance sheet supported by high capital base and robust liquidity Balance Sheet (INR Cr) Q1FY18 Q1FY19 YoY% Q2FY18 Q2FY19 YoY% Equity Share Capital 85.68 128.43 50% 90.57 143.36 58% Other Equity 541.79 1,404.82 159% 654.06 2,069.78 216% Total Equity 627.47 1,533.25 144% 744.63 2,213.14 197% D
Slide 30: Q1FY18 Ind AS Vs Previous Indian GAAP
Q1FY18 Ind AS Vs Previous Indian GAAP Particulars (INR Cr) Ind AS (A) IGAAP (B) Variance (A-B) Remark Interest Income (A) 177.01 167.04 9.96Under Ind AS: Interest Income is based on effective interest rate Securitisation is considered On-Balance Sheet and hence income is considered under interest in
Slide 31: Q2FY18 Ind AS Vs Previous Indian GAAP
Q2FY18 Ind AS Vs Previous Indian GAAP Particulars (INR Cr) Ind AS (A) IGAAP (B) Variance (A-B) Remark Interest Income (A) 211.99 215.61 (3.62)Under Ind AS: Interest Income is based on effective interest rate Securitisation is considered On-Balance Sheet and hence income is considered under interest
Slide 32: Q1FY19 Ind AS Vs Previous Indian GAAP
Q1FY19 Ind AS Vs Previous Indian GAAP Particulars (INR Cr) Ind AS (A) IGAAP (B) Variance (A-B) Remark Interest Income (A) 284.00 283.29 0.72Under Ind AS: Interest Income is based on effective interest rate Securitisation is considered On-Balance Sheet and hence income is considered under interest in
Slide 33: Q2FY19 Ind AS Vs Previous Indian GAAP
Q2FY19 Ind AS Vs Previous Indian GAAP Particulars (INR Cr) Ind AS (A) IGAAP (B) Variance (A-B) Remark Interest Income (A) 302.27 280.37 21.90Under Ind AS: Interest Income is based on effective interest rate Securitisation is considered On-Balance Sheet and hence income is considered under interest i
Slide 34: Impact on Networth on Transition Date
Impact on Networth on Transition Date Particulars (INR Cr) 01-04-2017 Remarks Net worth as per previous GAAP 690.80 Ind AS adjustments increase /(decrease) Net worth Expected Credit Loss Impact (118.28) Provisioning based on ECL methodology Effective Interest Rate impact on financial assets (18.54)
Slide 35: Well diversified borrowing mix
Well diversified borrowing mix INR Cr Q1 FY 18 Q1 FY 19 Q2 FY 18 Q2 FY 19 Banks 1,426.88 46.09% 2,451.43 59.94% 1,559.01 46.22% 2,094.83 53.09% NBFCs 128.20 4.14% 267.13 6.53% 104.61 3.10% 285.57 7.24% FIs 641.55 20.72% 504.15 12.33% 671.47 19.91% 371.22 9.41% Foreign Sources 899.28 29.05% 725.53 17
Slide 36: Sub 9% Marginal Cost of Borrowings for Q2FY19
Sub 9% Marginal Cost of Borrowings for Q2FY19 Metrics Q1FY18 Q1FY19 Q2FY18 Q2FY19 Marginal Cost of Borrowings 10.2% 9.5% 10.7% 8.9% (on and off b/s loans including processing fees*) Weighted Avg. Cost of Borrowings 11.5% 10.2% 11.6% 9.9% (on and off b/s loans including processing fees and other char
Slide 37: ICRA upgraded long term rating from A to A+ and short term rating from A1 to A1+
ICRA upgraded long term rating from A to A+ and short term rating from A1 to A1+ Q2 FY18 Q2 FY19 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 IC
Slide 38: Guidance
Guidance www.grameenkoota.org 38
Slide 39: Guidance FY19
Guidance FY19 Gross Loan Portfolio 7,500 – 7,750 Cr PAT 270 – 285 Cr www.grameenkoota.org 39
Slide 40: Annexures
Annexures www.grameenkoota.org 40
Slide 41: Disbursement Trend
Disbursement Trend www.grameenkoota.org 41
Slide 42: Disbursement Trend
Disbursement Trend FY16 – INR 3,349 Cr. FY17 – INR 3,403 Cr. FY18 – INR 6,082 Cr. H1 FY19 – INR 3,187 Cr. 1,911 1,680 1,616 1,571 1,368 1,296 1,195 1,011 967 832 709 716 611 538 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 18% 16% 25% 41% 30% 28%
Slide 43: District and State wise diversification
District and State wise diversification www.grameenkoota.org 43
Slide 44: District-wise Exposure Trend (1/2)
District-wise Exposure Trend (1/2) Portfolio FY16 FY17 FY18 Q1FY19 Q2FY19 Exposure of No. of % of Total No. of % of Total No. of % of Total No. of % of Total No. of % of Total Districts Districts Districts Districts Districts Districts Districts Districts Districts Districts Districts < 0.5% 28 38%
Slide 45: District-wise Exposure Trend (2/2)
District-wise Exposure Trend (2/2) FY16 FY17 FY 18 Q1FY19 Q2FY19 District in Contribution % of Total Contribution to % of Total Contribution to % of Total Contribution to % of Total Contribution to % of Total terms of to overall Portfolio overall growth % Portfolio overall growth % Portfolio overall
Slide 46: Geographical Diversification
Geographical Diversification States/UT » Karnataka GLP 1447 2539 3075 4975 5794 » Tamil Nadu (Rs Cr) » Madhya Pradesh Portfolio Mix » Chhattisgarh 3% 3% » Odisha 6% » Kerala 4% 8% 9% 6% » Maharashtra 7% 8% » Goa 28% » Puducherry 30% 28% 27% 26% 69% 63% 60% 58% 57% FY 15 FY16 FY17 FY18 Q2 FY19 Karnat
Slide 47: Product Mix
Product Mix www.grameenkoota.org 47
Slide 48: Product Category Mix
Product Category Mix Group Lending Period Parameters Retail Finance Total IGL Family Welfare Home Improvement Emergency No. of Loans Disb ('000) 374.14 171.85 32.33 70.03 0.84 649.19 %Mix 57.63% 26.47% 4.98% 10.79% 0.13% 100.00% Amount Disbursed (INR Cr.) 1,000.67 137.28 43.40 7.00 7.08 1,195.44 Q2F
Slide 49: Risk Management
Risk Management www.grameenkoota.org 49
Slide 50: Prudent risk management and control framework
Prudent risk management and control framework ✓ Annual risk management plan formulated ✓ Annual risk management plan formulated Board Oversight comprising major risks identified by management comprising major risks identified by management ✓ Board and Risk Management Committee oversight on ✓ Free an
Slide 51: Information Technology
Information Technology www.grameenkoota.org 51
Slide 52: Information Technology
Information Technology Key Technology Initiatives Key Technology Partners Paperless transactions (Core Banking Solution) (Data Centre & Disaster Recovery SMS engine Field with reduced TAT Infrastructure) integration process automation (Email and Collaboration) (Mobility solution) Event based Custome
Slide 53: Credit Plus Activities
Credit Plus Activities www.grameenkoota.org 53
Slide 54: Community Focus
Community Focus » Company aims to meet its responsibility towards society SKOCH Resilient India Award 2017 for ‘Sanitation Loan’ through: » Diligently follow responsible financing practices & client 2017 ISC FICCI Sanitation protection principles Awards for Best Financial » Ensure transparency with
Slide 55: 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 56: Thank You
Thank You For any investor related queries , please mail to email id csinvestors@grameenkoota.org www.grameenkoota.org 56
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