Creditaccess Grameen Ltd. · NSE:CREDITACC
Creditaccess Grameen — Investor Presentation (2020)
38 slides from Creditaccess Grameen's investor presentation, 2020
Slide 1: CreditAccess Grameen Limited Corporate Presentation 2020
CreditAccess Grameen Limited Corporate Presentation 2020 www.creditaccessgrameen.com
Slide 2: Disclaimer
Disclaimer By accessing this presentation, you agree to be bound by the following terms and conditions. The information in 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 Cr
Slide 3: Discussion Summary
Discussion Summary Investment Rationale Consolidated Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Annexure www.creditaccessgrameen.com 3
Slide 4: Quick Snapshot
Quick Snapshot ✓ One of the Leading NBFC-MFIs in India ✓ Joint Liability Group (JLG) based lending model focused on rural women ✓ Diverse product suite catering to entire customer life cycle ✓ Calibrated, contiguous district-based expansion strategy focusing on deep rural penetration ✓ Superior cust
Slide 5: Key Milestones
Key Milestones ✓ Strong commitment by CAI (CreditAccess India N.V.) Crossed 2.5 Mn borrowers, Entered in 5 new states – Jharkhand, 2020 − CAI became a shareholder of the company in 2009 and Rajasthan, Gujarat, Uttar Pradesh, Successfully has consistently invested into the company since then Bihar co
Slide 6: Experienced Management Team, Eminent Board of Directors
Experienced Management Team, Eminent Board of Directors Udaya Kumar Hebbar Diwakar B.R. Ganesh Narayanan Gururaj Kumar KS Rao Firoz Anam Managing Director & CEO Director – Finance & CFO Chief Business Officer Chief Audit Officer Chief Risk Officer ▪ Joined CAGL in 2010 ▪ Joined CAGL in 2011 ▪ Joined
Slide 7: Unique Business Model
Unique Business Model 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) Au
Slide 8: Leading MFI with Expanded Scale & Footprint (1/2)
Leading MFI with Expanded Scale & Footprint (1/2) Strengthened Leadership Position with ~ INR 120 Bn Portfolio Augmented Borrower Base of over 4.0 Mn GLP (INR Mn) Borrowers (‘000) CAGR 55.3% CAGR 48.0% 119,961 4,055* 20,997 67.6% 64.2% 1,215 71,593 2,470 1,851 49,747 98,964 2,905 FY18 FY19 FY20 FY18
Slide 9: 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 64.3% CAGR 46.0% CAGR 51.6% 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 7,716 10,824 929 FY18 FY19 F
Slide 10: 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 Mn) Disbursements (INR Mn) CAGR 41.0% CAGR 30.7% 1,03,892 98,964 82,212 71,593 4,991 49,747 60,817 3,255 513 93,973 68,339 49,233 FY18 FY19 FY20 FY18 FY19 FY20 Group L
Slide 11: 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 Mn) 2.86% CAGR 24.1% 1.32% 1.17% 3,218 3,275 1.57% 2,125 0.82% 0.61% FY18 FY19 FY20 FY18 FY19 FY20 GNPA Provisioning Total Equity (INR Mn) & Debt/Equity Ratio Return Ratios
Slide 12: Consistent Organic (Standalone) Growth Trend (3/3)
Consistent Organic (Standalone) Growth Trend (3/3) Branches Borrowers (‘000) & Retention Rate (%) 84% 87% 85% 929 2,905 670 71 CAGR: 25.3% 2,470 516 1,851 74 60 41 30 6 858 2,831 610 2,429 486 1,845 FY18 FY19 FY20 FY18 FY19 FY20 Group Lending Retail Finance Group Lending Retail Finance Retention Rat
Slide 13: 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
Slide 14: 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 rate, among suite catering to entire customer life cycle the loweststarting ~19.60% in the industry Q2 FY21 Customer flexibility - Even in a group, borrowers members can
Slide 15: Customer Centric Business Model (2/2)
Customer Centric Business Model (2/2) Cashless shift based Loan Customer Centric Ticket Size Tenure Purpose on customer’s Type Products (INR) (months) preference • Small loans: Business Investments and Income Cash/Cashless Group Income Generation Loan(IGL) 5,000 - 80,000 12-24 Enhancement activities
Slide 16: 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
Slide 17: Leading To Geographic Diversification
…Leading To Geographic Diversification Our Presence Branch Network Q1 FY21 Q1 FY21 CAGL + MMFL % Share 14 States / 1 UT Karnataka 298 21.5% 248 Districts Maharashtra 279 20.1% 1,388 Branches Uttar Pradesh Tamil Nadu 381 27.4% 15 Madhya Pradesh 115 8.3% Other States & UTs 315 22.7% Rajasthan Bihar 20
Slide 18: And Deeper Presence with Rural Focus
…And Deeper Presence with Rural Focus CAGL Districts MMFL Districts Common Districts Q1 FY21 Combined Presence 230 95 77 Districts: 248 Higher District Penetration: Branches Per District Higher Proportion of Rural Borrowers 5.6 96% 86% 4.0 82% FY20 (CAGL) Q1 FY21 (CAGL + MMFL) FY20 (CAGL) FY20 (MMFL
Slide 19: 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 20: 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
Slide 21: Discussion Summary
Discussion Summary Investment Rationale Consolidated Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Annexure www.creditaccessgrameen.com 21
Slide 22: Encouraging Collections Trend (CAGL) – August 2020
Encouraging Collections Trend (CAGL) – August 2020 Improvement in Cumulative Collections (INR Mn) 81% 82% 82% CE % June July August 78% 74% 76% Karnataka 78% 78% 86% 68% Maharashtra 62% 65% 72% 8,451 7,795 7,368 7,465 Tamil Nadu 75% 79% 86% 6,399 6,124 6,415 5,443 5,672 3,950 4,595 Madhya Pradesh 81
Slide 23: Encouraging Collections Trend (MMFL) – August 2020
Encouraging Collections Trend (MMFL) – August 2020 Improvement in Cumulative Collections (INR Mn) 74% 75% CE % June July August 64% 66% 58% Tamil Nadu 54% 66% 77% 54% 49% Maharashtra 45% 56% 72% 1,891 1,910 1,848 1,848 1,848 Odisha 43% 43% 63% 1,229 1,346 1,214 1,363 1,378 Bihar 66% 75% 71% 1,019 77
Slide 24: Q1 FY21: Consolidated Performance Highlights
Q1 FY21: Consolidated Performance Highlights Branches 1,388 GLP Active Borrowers INR 117.2 Bn 4.0 Mn Employees 14,213 ROA 2.2% PPOP PAT INR 2,556 Mn INR 746 Mn ROE 10.3% COVID-19 Additional GNPA 1.62% D/E Ratio Provisioning Buffer 3.3x Provisioning 4.21% 2.17% (INR 2,456 Mn) www.creditaccessgrameen.
Slide 25: Consolidated P&L Statement
Consolidated P&L Statement Profit & Loss Statement (INR Mn) Q1 FY21 FY20 FY19 Interest income 5,974 16,334 12,183 - Interest on Loans 5,886 16,040 11,561 - Income from Securitisation 64 231 552 - Interest on Deposits with Banks and FIs 25 63 70 Income from Direct Assignment 185 413 460 Finance Cost
Slide 26: Discussion Summary
Discussion Summary Investment Rationale Consolidated Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Annexure www.creditaccessgrameen.com 26
Slide 27: Q1 FY21: CAGL Standalone Performance Highlights
Q1 FY21: CAGL Standalone Performance Highlights NIM Cost/Income Ratio 12.6% 31.0% GLP PPOP INR 96.8 Bn INR 2,245 Mn Weighted Avg. COB Opex/GLP Ratio 9.4% 4.1% ROA Capital Adequacy Ratio 2.2% 23.7% PAT D/E Ratio INR 636 Mn 2.9x ROE Tier 1 Ratio 9.4% 22.4% COVID-19 Additional GNPA 1.63% (60+ dpd) Bran
Slide 28: CAGL Standalone P&L Statement
CAGL Standalone P&L Statement Profit & Loss Statement (INR Mn) Q1 FY21 FY20 FY19 FY18 Interest income 4,891 16,172 12,183 8,597 - Interest on Loans 4,878 15,888 11,561 8,531 - Income from Securitisation 0 223 552 0 - Interest on Deposits with Banks and FIs 13 61 70 65 Income from Direct Assignment 1
Slide 29: Q1 FY21: Well-Diversified Liability Mix
Q1 FY21: Well-Diversified Liability Mix Liability Mix - Institution / Instrument Wise (%) Focus on dynamic liability management Bank - Sub Debt Bank - NCD • Focus on long-term funding with a mix of domestic & foreign sources 0.3% 2.3% NBFCs - Term Loan • Target to meet funding requirement through fo
Slide 30: Q1 FY21: Positive ALM Continues To Contribute Growth
Q1 FY21: Positive ALM Continues To Contribute Growth Positive ALM Mismatch (in Months) 27.3 25.3 25.2 21.5 18.4 17.0 16.1 16.0 FY18 FY19 FY20 Q1 FY21 Average Maturity of Assets Average Maturity of Liabilities www.creditaccessgrameen.com 30
Slide 31: Q1 FY21: Stable Credit Ratings
Q1 FY21: Stable Credit Ratings Q1 FY21 Rating Instrument Rating Agency Rating/Grading CRISIL A+ (Stable) Bank facilities ICRA A+ (Stable) Ind-Ra A+ (RWN) CRISIL A+ (Stable) Non-convertible debentures ICRA A+ (Stable) Ind-Ra A+ (RWN) Subordinated debt ICRA A+ (Stable) Commercial Paper ICRA A1+ Compre
Slide 32: Discussion Summary
Discussion Summary Investment Rationale Consolidated Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Annexure www.creditaccessgrameen.com 32
Slide 33: Q1 FY21: MMFL Standalone Performance Highlights
Q1 FY21: MMFL Standalone Performance Highlights NIM Cost/Income Ratio 11.5% 43.0% GLP PPOP INR 20.4 Bn INR 350 Mn Weighted Avg. COB Opex/GLP Ratio 11.2% 5.1% ROA Capital Adequacy Ratio 2.5% 23.8% PAT D/E Ratio INR 140 Mn 3.9x ROE Tier 1 Ratio 13.7% 20.0% COVID-19 Additional GNPA 1.58% (90+ dpd) Bran
Slide 34: Q1 FY21: MMFL Standalone Financials
Q1 FY21: MMFL Standalone Financials Profit & Loss Statement (INR Mn) Q1 FY21 Interest income 1,081 - Interest on Loans 1,015 - Income from Securitisation 54 - Interest on Deposits with Banks and FIs 12 Income from Direct Assignment 0 Finance Cost on Borrowings 457 Cost on Financial Liability towards
Slide 35: Discussion Summary
Discussion Summary Investment Rationale Consolidated Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Annexure www.creditaccessgrameen.com 35
Slide 36: 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. NIM = (NII – processing fees, interest on
Slide 37: Shareholding Structure
Shareholding Structure Shareholding Pattern (%) – June 2020 Bodies Corporate Individuals, & Others, 2.30 3.23 MF & AIF, 8.40 FPI, 6.16 Promoter Group , 79.91 www.creditaccessgrameen.com 37
Slide 38: Thank You
Thank You www.creditaccessgrameen.com 38