Creditaccess Grameen Ltd. · NSE:CREDITACC
Creditaccess Grameen — Q1 FY2023 Earnings Presentation
49 slides from Creditaccess Grameen's earnings presentation, July 2022
Slide 1: CreditAccess Grameen Limited Q1 FY23 Results Presentation
CreditAccess Grameen Limited Q1 FY23 Results Presentation July 2022 www.creditaccessgrameen.in
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 Key Business Updates Consolidated Overview CA Grameen: Financial Metrics MMFL: Financial Metrics Investment Rationale Annexure www.creditaccessgrameen.in 3
Slide 4: Key Consolidated Business Highlights (1/2)
Q1 FY23: Key Consolidated Business Highlights (1/2) Business Growth Muted in Q1 FY23 GLP: INR 15,615 Cr (+23.3% YoY, -5.9% QoQ) Key focus areas during Q1 FY23 • CA Grameen: INR 12,991 Cr (+22.3% YoY, -5.4% QoQ) • Complete alignment with new RBI guidelines well in advance – changes • MMFL: INR 2,624
Slide 5: Key Consolidated Business Highlights (2/2)
Q1 FY23: Key Consolidated Business Highlights (2/2) Consistently Improving Asset Quality Strong Balance Sheet Position CA Grameen: Adequate Liquidity & continued support from lenders • ECL: 2.73% against GNPA (GS3): 2.54% (largely @ 60+ dpd) & PAR 90+: 1.83% • INR 1,542 Cr C&CE (9.3% of total assets
Slide 6: Asset Quality Update (CA Grameen)
Asset Quality Update (CA Grameen) Collections Trend PAR Trend Adequate Provisioning Coverage INR Cr CA Grameen Policy (IND-AS) 96% 97% 97% 97% 3.6% EAD 3.0% Q1 FY23 Asset Classification (dpd) EAD% ECL% (INR Cr) 3.0% Stage 1 0 – 15 (GL), 0 – 30 (RF) 11,784.9 96.5% 0.7% 2.6% 2.5% 2.1% Stage 2 16 – 60
Slide 7: Asset Quality Update (MMFL)
Asset Quality Update (MMFL) Collections Trend PAR Trend 94% 11.1% 93% 93% 9.8% 91% 7.5% 6.9% 5.9% 5.7% 4.9% 4.8% Q4 FY22 Q1 FY23 Mar-22 Jun-22 CE% (excl. arrears) CE% (incl. arrears) PAR 0 PAR 30 PAR 60 PAR 90 Adequate Provisioning Coverage Payment wise Breakup of EAD INR Cr CA Grameen Policy (IND-A
Slide 8: Discussion Summary
Discussion Summary Key Business Updates Consolidated Results Overview CA Grameen: Financial Metrics MMFL: Financial Metrics Investment Rationale Annexure www.creditaccessgrameen.in 8
Slide 9: Consolidated Performance Highlights
Q1 FY23: Consolidated Performance Highlights NIM Cost/Income Ratio 11.2% / 11.8%1 39.7% PPOP GLP: INR 15,615 Cr INR 290 Cr (+23.3% YoY) Weighted Avg. COB Opex/GLP Ratio (+33.9% YoY) 9.0% 4.7% ROA Capital Adequacy Ratio Total Equity 3.1% 24.7% INR 4,246 Cr PAT: INR 140 Cr (+588.2% YoY) ROE Tier 1 Rat
Slide 10: Consolidated P&L Statement
Q1 FY23: Consolidated P&L Statement Profit & Loss Statement (INR Cr) Q1 FY23 Q1 FY22 YoY% Q4 FY22 QoQ% FY22 Interest Income 736.2 587.3 25.4% 728.5 1.1% 2,567.3 - Interest on Loans 1 727.6 575.6 26.4% 721.6 0.8% 2,533.0 - Income from Securitisation 0.0 0.4 - 0.0 - 0.6 - Interest on Deposits with Ban
Slide 11: Consolidated Balance Sheet
Q1 FY23: Consolidated Balance Sheet Balance Sheet (INR Cr) Q1 FY23 Q1 FY22 YoY% Q4 FY22 QoQ% FY22 Cash & Other Bank Balances 1,369.2 2,221.9 -38.4% 1,761.4 -22.3% 1,761.4 Investment in MFs 172.6 0.0 0.0 Loans - Balance Sheet Assets (Net of Impairment Loss Allowance) 14,137.6 10,813.2 30.7% 14,765.3
Slide 12: Understanding the Credit Cost Impact
Q1 FY23: Understanding the Credit Cost Impact Consolidated (INR Cr) Q1 FY23 FY22 Opening ECL - (A) 533.9 622.6 Additions (B) - Provisions as per ECL 39.0 379.9 Reversals (on account of write-off) (C) 129.2 476.8 Closing ECL (D = A+B-C) 443.7 533.9 Write-off (E) 191.1 693.6 Credit Cost (F = B-C+E) 10
Slide 13: Continued Business Traction with Rural Focus
Q1 FY23: Continued Business Traction with Rural Focus Gross Loan Portfolio (GLP) (INR Cr) Borrowers (‘000) 23.3% -2.5% 16,599 15,615 14,587 2,868 3,785* 3,751* 3,739* 3,824* 2,624 3,689* 13,333 12,664 2,406 2,148 1,050 963 930 873 1,045 2,038 13,732 12,991 12,180 10,625 11,185 2,922 2,849 2,788 2,75
Slide 14: Consistent Growth in Infrastructure
Q1 FY23: Consistent Growth in Infrastructure 257 Net Branch Additions over last Four Quarters Branches States Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Bihar 15 20 - 10 1,593 1,635 1,681 Chhattisgarh 5 - - 2 1,545 1,424 Gujarat 10 12 6 5 471 474 Jharkhand 10 - - 5 464 467 460 Madhya Pradesh 10 - 10 1 Karnatak
Slide 15: Sustainable Operational Efficiency
Q1 FY23: Sustainable Operational Efficiency GLP / Branch (INR Cr) GLP / Loan Officer (INR Cr) 6.1 1.1 4.4 5.2 5.5 1.1 4.6 0.9 1.0 0.8 11.0 10.3 10.8 11.8 10.8 1.7 1.6 1.4 1.4 1.5 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 CA Grameen MMFL CA Grameen MMFL Borrowers
Slide 16: Product Range To Meet Diverse Customer Needs
Q1 FY23: Product Range To Meet Diverse Customer Needs GLP - Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Product Mix (INR Cr) % of Total (INR Cr) % of Total (INR Cr) % of Total (INR Cr) % of Total (INR Cr) % of Total IGL (Incl. MMFL) 11,962 94% 12,613 95% 13,894 95% 15,949 96% 14,937 96% Family Welfare 3
Slide 17: Well-Diversified Presence Across India
Q1 FY23: Well-Diversified Presence Across India Our Presence as on Mar-22 14 States & 1 UT 332 Districts Consolidated Q1 FY23 1,681 Branches Uttar Pradesh Exposure of Districts No. of % of Total 60 (% of GLP) Districts Districts Rajasthan Bihar < 0.5% 271 81% 71 70 + 36 (MMFL) 0.5% - 1% 35 11% Gujar
Slide 18: Discussion Summary
Discussion Summary Key Business Updates Consolidated Results Overview CA Grameen: Financial Metrics MMFL: Financial Metrics Investment Rationale Annexure www.creditaccessgrameen.in 18
Slide 19: CA Grameen Standalone Performance Highlights
Q1 FY23: CA Grameen Standalone Performance Highlights NIM Cost/Income Ratio 11.2%/ 11.7%1 37.9% PPOP GLP: INR 12,991 Cr INR 246 Cr (+22.3% YoY) Weighted Avg. COB Opex/GLP Ratio (+24.7% YoY) 9.0% 4.5% ROA Capital Adequacy Ratio Total Equity 3.4% 28.6% INR 4,103 Cr PAT: INR 133 Cr (+348.2% YoY) ROE Ti
Slide 20: CA Grameen Standalone P&L Statement
Q1 FY23: CA Grameen Standalone P&L Statement Profit & Loss Statement (INR Cr) Q1 FY23 Q1 FY22 YoY% Q4 FY22 QoQ% FY22 Interest Income 607.3 483.6 25.6% 604.3 0.5% 2,124.8 1 - Interest on Loans 599.9 475.3 26.2% 599.2 0.1% 2,099.3 - Interest on Deposits with Banks and FIs 7.5 8.3 -9.9% 5.1 46.6% 25.5
Slide 21: CA Grameen Standalone Balance Sheet
Q1 FY23: CA Grameen Standalone Balance Sheet Balance Sheet (INR Cr) Q1 FY23 Q1 FY22 YoY% Q4 FY22 QoQ% FY22 Cash & Other Bank Balances 1,122.8 1,800.4 -37.6% 1,534.3 -26.8% 1,534.3 Investment in MFs 172.6 0.0 - 0.0 - 0.0 Loans - Balance Sheet Assets (Net of Impairment Loss Allowance) 11,865.1 8,977.2
Slide 22: Well-Diversified Liability Mix
Q1 FY23: Well-Diversified Liability Mix Liability Mix - Institution / Instrument Wise (%) Focus on dynamic liability management Banks - NCD • Focus on long-term funding with strong diversification between NBFCs - TL 2.6% domestic & foreign sources 2.7% Banks - TL FIs - TL • Target to meet funding re
Slide 23: Stable Liquidity/ ALM Position/ Credit Ratings
Q1 FY23: Stable Liquidity/ ALM Position/ Credit Ratings Static Liquidity / ALM Position For the Month For the Financial Year Debt Drawdowns (INR Cr) Q1 FY23 Particulars (INR Cr) July-22 Aug-22 Sep-22 FY23 FY24 Banks – TL 405.0 FIs 0.0 Opening Cash & Equivalents (A) 1,343.0 1,176.0 1,443.7 1,569.8 2,
Slide 24: Robust Quarterly Performance Trend (1/2)
Q1 FY23: Robust Quarterly Performance Trend (1/2) Gross Loan Portfolio (GLP) (INR Cr) Disbursements (INR Cr) 22.3% 4648 3,866 13,732 12,991 3,412 11,184 12,180 10,625 1,861 907 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Margin Analysis (%) Operating Efficiency (%
Slide 25: Robust Quarterly Performance Trend (2/2)
Q1 FY23: Robust Quarterly Performance Trend (2/2) Asset Quality (%) Total Income, NII, PPOP (INR Cr) 8.12% 694 7.18% 621 577 5.50% 511 510 6.40% 446 5.51% 349 380 4.40% 3.12% 302 309 5.06% 2.73% 4.23% 3.19% 3.85% 2.54% 331 2.26% 246 246 1.83% 197 188 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q
Slide 26: Discussion Summary
Discussion Summary Key Business Updates Consolidated Results Overview CA Grameen: Financial Metrics MMFL: Financial Metrics Investment Rationale Annexure www.creditaccessgrameen.in 26
Slide 27: MMFL Performance Highlights
Q1 FY23: MMFL Performance Highlights NIM Cost/Income Ratio GLP 9.9% / 10.61 43.4% PPOP INR 2,624 Cr INR 48 Cr (28.8% YoY) Weighted Avg. COB Opex/GLP Ratio (104.4%) 9.7% 5.4% ROA Capital Adequacy Ratio Total Equity PAT 1.4% 22.6% INR 398 Cr INR 10 Cr (262.6% YoY) ROE Tier 1 Ratio D/E Ratio 10.3% 14.4
Slide 28: MMFL P&L Statement
Q1 FY23: MMFL P&L Statement Profit & Loss Statement (INR Cr) Q1 FY23 Q1 FY22 YoY% Q4 FY22 QoQ % FY22 Interest Income 134.0 103.7 29.1% 127.8 4.9% 446.1 - Interest on Loans 132.8 100.3 32.4% 126.1 5.3% 437.3 - Income from Securitisation 0.0 0.5 -100.0% 0.0 - 0.6 - Interest on Deposits with Banks and
Slide 29: MMFL Balance Sheet
Q1 FY23: MMFL Balance Sheet Balance Sheet (INR Cr) Q1 FY23 Q1 FY22 YOY% Q4 FY22 QoQ % FY22 Cash & Other Bank Balances 244.6 421.7 -42.0% 227.0 7.7% 227.0 Balance Sheet Assets (Net of Impairment Loss Allowance) 2,422.1 1,836.1 31.9% 2,713.3 -10.7% 2,713.3 Securitised Assets 0.0 8.2 -100.0% 0.0 - 0.0
Slide 30: MMFL Quarterly Performance Trend (1/2)
Q1 FY23: MMFL Quarterly Performance Trend (1/2) Gross Loan Portfolio (GLP) (INR Cr) Disbursements (INR Cr) 28.8% 1,144 2,868 2,624 2,406 854 2,038 2,148 477 285 158 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Total Income, NII, PPOP (INR Cr) Total Equity (INR Cr)
Slide 31: MMFL Quarterly Performance Trend (2/2)
Q1 FY23: MMFL Quarterly Performance Trend (2/2) Margin Analysis (%) Operating Efficiency (%) 6.1% 6.0% 19.5% 20.0% 18.8% 5.7% 5.4% 18.7% 18.4% 5.3% 56.4% 51.8% 51.6% 10.6% 10.6% 10.1% 9.6% 9.9% 43.6% 43.4% 8.9% 10.6% 10.2% 10.0% 9.7% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4
Slide 32: MMFL Diversified Liability, Stable Liquidity, Positive ALM
Q1 FY23: MMFL Diversified Liability, Stable Liquidity, Positive ALM Static Liquidity / ALM Position For the month Liability Mix – Q1 FY23 Particulars (INR Cr) Apr-22 May-22 Jun-22 Institution / Instrument Wise Opening Cash & Equivalents (A) 221.9 242.0 258.4 Banks – Term Loan 71.6% Loan recovery [Pr
Slide 33: Discussion Summary
Discussion Summary Key Business Updates Consolidated Results Overview CA Grameen: Financial Metrics MMFL: Financial Metrics Investment Rationale Annexure www.creditaccessgrameen.in 33
Slide 34: Business Model with Inherent ESG Adherence (1/2)
Business Model with Inherent ESG Adherence (1/2) Note: All performance metrics are as on FY22 www.creditaccessgrameen.in 34
Slide 35: Business Model with Inherent ESG Adherence (2/2)
Business Model with Inherent ESG Adherence (2/2) Note: All performance metrics are as on FY22 Environmental Social Governance • Positive E & S impact: 99.9% loans • Customer Protection / Fair Practices: • Board structure: • Emissions Measurement: (Standalone) • 57% independent, 29% women Emissions I
Slide 36: Committed to Basics Through Classical JLG Lending Model
Committed to Basics Through Classical JLG Lending Model Microfinance loans are unsecured. JLG mechanism acts as security/ loan collateral Fully aligned with new harmonized guidelines in JLG Benefits: terms of - ✓ Strong group bonding ✓ Formulation of Board approved policies ✓ Mutual support – both f
Slide 37: Focus on Customer Centricity, Loyalty & Retention
Focus on Customer Centricity, Loyalty & Retention “One of the Lowest Cost Organised Financer” - One Stop Shop providing Support to Various Lifecycle Needs of the Customer One of the lowest lending rates in MFI industry Loan Customer Centric Ticket Size Tenure Purpose Type Products (INR) (months) Div
Slide 38: Calibrated Expansion Through Contiguous District-Based Approach
Calibrated Expansion Through Contiguous District-Based Approach Systematic geography selection based on availability of infrastructure, competition, historical performance trend, social/ economic/ political/ CA Grameen’s contiguous climate risk, growth potential district-based expansion Ensures cons
Slide 39: Unique Human Capital, Internal Audit & Risk Controls
Unique Human Capital, Internal Audit & Risk Controls Well-Established Operational Structure Multi-Pronged Approach For Risk Management Business Heads Sound Understanding of Rural Market Internal Audit (IA): • ~90% of employees are hired fresh from • IA frequency – 6 times in a year at branches, 4 ti
Slide 40: Continuous Technology Enhancement to Drive Operational Efficiency
Continuous Technology Enhancement to Drive Operational Efficiency Ensures Quick And Seamless Delivery of Need Based Financial Products and Services backed by Robust Technology Infrastructure High touch-high tech delivery model: Future Upgrades & Investments • Digitized all customer touchpoints • Upg
Slide 41: Integrating Risk Management in Every Operating Process
Integrating Risk Management in Every Operating Process Microfinance is a Collection Business, hence Risk Management is Integral to Core Strategy and Operating Processes Contiguous Customer Employee Target Customer Customer Employee District-based Lending Model Engagement Incentive Segment Due-Dilige
Slide 42: 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 purchases during 2009 to 2017 Enterprises financing • Dis
Slide 43: Past Five Years Performance Track Record (1/3)
Past Five Years Performance Track Record (1/3) Gross Loan Portfolio (GLP) (INR Cr) Active Borrowers (‘000) CAGR 35.2% CAGR 19.9% 16,599 4,055 * 3,912 * 2,868 3,824 * 13,587 1,215 1,098 930 11,996 2,246 2,100 2,470 7,159 1,851 13,732 4,975 11,341 2,905 2,871 2,922 9,896 2,470 7,159 1,851 4,975 FY18 F
Slide 44: Past Five Years Performance Track Record (2/3)
Past Five Years Performance Track Record (2/3) Branch Network Loan Officers Employees CAGR 33.4% CAGR 24.1% CAGR 25.5% 1,635 10,770 9,688 15,667 1,424 9,559 1,393 14,496 471 2,513 14,399 1,972 2,108 3,716 460 3,672 3,774 464 5,768 8,064 670 4,544 6,306 516 8,257 1,164 7,716 7,451 11,951 964 10,824 1
Slide 45: Past Five Years Performance Track Record (3/3)
Past Five Years Performance Track Record (3/3) Note: Refer Annexure for definition of key ratios Margin Analysis (%) Operating Efficiency (%) Asset Quality (%) 20.4% 20.0% 5.01% 19.4% 18.8% 18.3% 5.1% 5.0% 4.9% 4.8% 4.9% 3.61% 2.78% 11.5% 12.7% 12.2% 1.26% 1.14% 4.43% 10.7% 10.9% 39.2% 36.7% 38.1% 3
Slide 46: Discussion Summary
Discussion Summary Key Business Updates Consolidated Results Overview CA Grameen: Financial & Operational Metrics MMFL: Financial & Operational Metrics Investment Rationale Annexure www.creditaccessgrameen.in 46
Slide 47: Shareholding Structure
Shareholding Structure Shareholding Pattern – June 2022 Top 10 Institutional Investors – June 2022 Eastspring Investments Government Pension Fund Global Others, 3.93 QIB, 2.83 ICICI Prudential Life Insurance Company MF & AIF, Nippon MF 10.75 SBI MF T Rowe Price FPI, 8.67 Taiyo Pacific Partners Promo
Slide 48: 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) / Daily average borrowings 3. Marginal COB = (Borrowings availed during t
Slide 49: For Further Queries:
For Further Queries: Nilesh Dalvi VP – Investor Relations Contact No – 9819289131 Email Id – nilesh.dalvi@cagrameen.in Sahib Sharma AGM – Investor Relations Contact No – 7066559383 Email Id – sahib.sharma@cagrameen.in www.creditaccessgrameen.in 49
CreditAccess Grameen — Q1 FY2023 Earnings Presentation on 6ix