Paisalo Digital Ltd. · NSE:PAISALO
Paisalo Digital — Investor Presentation (2023)
35 slides from Paisalo Digital's investor presentation, 2023
Slide 1: Corporate Presentation FY 2023
PAISALO DIGITAL LIMITED Corporate Presentation FY 2023 A Systemically Important Non Deposit Accepting Non Banking Finance Company 1
Slide 2: Safe Harbor Statement
» This document contains certain forward – looking statements based on current expectations of Paisalo Digital Limited ’s management. Actual Results may vary significantly from the forward - looking statements in this document due to various risks and uncertainties. These risks and uncertainties inc
Slide 3: Presentation Path
Presentation Path Financial About Paisalo Why Paisalo Summary Transformation Financial Board of Update Performance Directors 3 Click on the Section to View
Slide 4: About Us
≈ Best Practices for execution and serving of loans ≈ Safe, Cost Effective and Scalable About Us Business Model with Risk Mitigation ≈ Full disclosure of information by using Algorithms for efficient 31-year-old leading Systemically elimination and selection process Important Non deposit Accepting ≈
Slide 5: Why PAISALO?
Why PAISALO? Co-Lending of Priority Sector Loan Agreement 5
Slide 6: Financial inclusion quote
” In the pyramid of development the bottom most layer needs to be strengthened through financial inclusion of ” purchasing power of the poor 6
Slide 7: Problem?
Problem? ≈ Low Availability of Small Loans from Financial Institutions ≈ High Operational Cost of Banks, inhibits lending volumes on small loans ≈ High Borrowing Rate of NBFCs, restricts focus on small loans 7
Slide 8: Solution
Solution Bank’s Low Cost of Funds, And PAISALO’s Low Cost of Operations Results in Lowest Borrowing Cost Offering to the Bottom of Pyramid Customer 8
Slide 9: How?
How? 1 2 3 Bank to contribute PAISALO to Risk and 80% of Loan Value contribute 20% of Reward Sharing under the Co – Loan Value under in 80:20 ratio Lending Model the Co – Lending under the model Model ≈ PAISALO to source and service customers ≈ PAISALO and Bank’s Agreement is in conformity with pres
Slide 10: Paisalo Co-Lending: Most Efficient Offering
Paisalo Co-Lending : Most Efficient Offering More convenient Competitor 2 PAISALO Co-Lending Product Less expensive More expensive Competitor 3 Competitor 1 Competitor 4 Less convenient 10
Slide 11: Market Opportunity
1.3 62 75 440 365 Billion Million Million Million Million Indian Individual Individual Number of Target Population Income Tax Credit Income Tax Market MARKET Payee History Pan Holders Population OPPORTUNITY ₹25,000 ₹8,000 Bn Estimated Ticket Size Estimated Annual Market Size 11
Slide 12: Transformation Update
Transformation Update 12
Slide 13: Purpose of business transformation
At Paisalo we believe that the purpose of any business transformation is that it should result in stronger growth momentum, better customer experience, additional cross sell, lower credit risk, lower ALM risk and improved liquidity 13
Slide 14: Business Transformation objectives
We are Pursuing our Business Transformation with these objective’s 14
Slide 15: Transformation Phase 2 achieved
Phase 2 : We achieved Phase 2 in the month of March 2023. Next target is to stabilise Phase 2 with focused credit underwriting feature set, disciplined execution, rapid adoption in all processes of the company and continued progress on all metrics, before initiating Phase 3 (5000 disbursements) Next
Slide 16: Financial Summary FY 2023
Financial Summary FY 2023 16
Slide 17: Paisalo Snapshot FY 2023
Paisalo Snapshot FY 2023 ₹ 34,928 mn ₹ 4,732 mn ₹ 11,610 mn AUM Revenue Networth YoY Growth ~ 29% YoY Growth ~ 21% YoY Growth ~ 13% Excellent year across all financial and portfolio metrics. Given the momentum, and robust portfolio metrics, we are confident about growth and portfolio metrics for FY2
Slide 18: Paisalo Snapshot FY 2023
Paisalo Snapshot FY 2023 ₹ 936 mn 40.34 % 0.02 % PAT CAR NNPA YoY Growth ~ 18% Excellent year across all financial and portfolio metrics. Given the momentum, and robust portfolio metrics, we are confident about growth and portfolio metrics for FY24. 18
Slide 19: Paisalo Snapshot FY 2023
Paisalo Snapshot FY 2023 » Highest ever AUM of ₹ 34,928 Mn. » AUM as at Q4 FY 2023 was up 29.49% at ₹ 34,928 mn as against Q4 FY 2022 at ₹ 26,973 mn. » Total geographic footprint stood at to 1052 touchpoints* (220 Branches + 432 Business Correspondent CSPs + 400 Distribution Points) across 18 states
Slide 20: Paisalo Snapshot FY 2023
Paisalo Snapshot FY 2023 » Paisalo has written off bad debts totaling to INR 441 mn and has recovered old written off bad debts worth INR 177 mn in Q4 FY 2023. » The Tangible Networth is INR 11,610 mn versus Bank Borrowings (secured) INR 13,018 mn , i.e., 1.12 times » Capital Adequacy remained very
Slide 21: Paisalo Snapshot FY 2023
Paisalo Snapshot FY 2023 » The company had signed Co-Lending with Karnataka Bank in Q4 FY 2023, the same is expected to being roll out in Q2 FY 2024 in some locations. » INR 1,840 mn infused by Promoters through equity in FY 2023. » Fresh Debt Sanction cumulatively amounting to INR 5,250 mn received
Slide 22: Financial Performance
Financial Performance 22
Slide 23: Financials: Quarterly
Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY PARTICULARS 2022* 2023 2023* 2023* 2023* AUM ₹26,973 ₹27,174 ₹29,767 ₹30,107 ₹34,928 Disbursements ₹16,343 ₹4,752 ₹10,810 ₹16,239 ₹25,996 Revenue ₹3,922 ₹1,126 ₹2,329 ₹3,552 ₹4,732 PBT ₹1,071 ₹287 ₹613 ₹984 ₹1,262 PAT ₹793 ₹209 ₹451 ₹730 ₹936 FINANCIALS Net Worth Total
Slide 24: Financials: Annual
PARTICULARS FY 2020 FY 2021 FY 2022 FY 2023 AUM ₹21,119 ₹23,178 ₹26,973 ₹34,928 Interest Income ₹3,375 ₹3,115 ₹3,922 ₹4,732 NIM 6.47% 4.05% 4.03% 5.50% PAT ₹540 ₹609 ₹793 ₹936 Cash Accrual ₹580 ₹646 ₹819 ₹950 FINANCIALS Net worth ₹7,603 ₹8,619 ₹10,241 ₹11,610 Total Debt ₹10,701 ₹14,814 ₹15,989 ₹18,5
Slide 25: Financials: Critical Ratios
Particulars FY 2020 FY 2021 FY 2022 FY 2023 Tangible Net Worth ₹7,603 ₹8,619 ₹10,241 ₹11,610 (TNW) Bank Borrowings FINANCIALS (BB) ₹7,983 ₹7,412 ₹9,588 ₹13,018 Critical Ratios Total Outside ₹13,738 ₹14,814 ₹15,989 ₹18,567 Liabilities (TOL) BB / TNW 1.05 0.86 0.94 1.12 INR in Millions (Times) TOL / T
Slide 26: AUM and Revenue
AUM Revenue ₹4,732 ₹34,928 ₹3,922 ₹26,973 ₹3,177 ₹3,375 ₹3,115 ₹23,178 ₹21,119 ₹19,253 FY 2019 FY 2020 FY 2021 FY2022 FY2023 FY 2019 FY 2020 FY 2021 FY2022 FY2023 ₹ in Millions ₹ in Millions 26
Slide 27: Net Worth and CAR
Net Worth CAR 43.06% 44.47% 42.92% ₹11,610 40.34% ₹10,241 34.04% ₹8,619 ₹7,603 ₹6,447 FY 2019 FY 2020 FY 2021 FY2022 FY2023 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 ₹ in Millions 27
Slide 28: ROE and ROA
ROE ROA 8.81% 3.09% 7.78% 7.90% 3.02% 7.15% 7.07% 2.91% 2.61% 2.66% FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 ₹ in Millions 28
Slide 29: Shareholding Pattern
Shareholding Pattern NSE: PAISALO BSE: PAISALO Bloomberg: PAISALO:IN 32.18% 23.56% 44.26% Promoter FIIs and DIIs Public & Promoters Group 29
Slide 30: Credit Rating
Credit Rating IVR ‘AA- (Stable Outlook)’ IVR ’A1+’ (for Commercial Paper) 30
Slide 31: Board of Directors
Board of Directors 31
Slide 32: Board of Directors
Sunil Agarwal Harish Singh Anoop Krishna Managing Director Executive Director Whole Time Director 30 years of experience, MBA, Chartered Accountant, Veteran Banker with over 30 incorporated Paisalo and took 30 years+ experience in the years of experience with BOARD OF it from Private Entity to field
Slide 33: Board of Directors
Naresh Kumar Gauri Shankar Vijuy Ronjan Jain Independent Director Independent Director Independent Director 30 years+ experience in 30 years+ experience in 30 years+ experience in the field of Banking, the field of Banking, the field of Corporate and held position of CEO retired as CGM Delhi of Lega
Slide 34: Board of Directors
Raman Aggarwal Nirmal Chand Nisha Jolly Independent Director Independent Director Independent Director Co-Chairman of Finance 30 years+ of experience in 30 years+ of experience in Industry Development the field of Regulation, the field of Banking, held Council (FIDC), member held position of Chief p
Slide 35: Thank You
THANK YOU Phone: Email: Website: +91 11 43-51-8888 ir@paisalo.in www.paisalo.in 35