Satin Creditcare Network Ltd · NSE:SATIN
Satin Creditcare Network — Q1 FY2021 Earnings Presentation
62 slides from Satin Creditcare Network's earnings presentation, September 2020
Slide 1: Investor Presentation September 2020
INVESTOR PRESENTATION September 2020 BUILDING A DIFFERENCE BSE: 539404 | NSE: SATIN TO MAKE A DIFFERENCE Corporate Identity No. L65991DL1990PLC041796
Slide 2: Content
Content 03 - 10 11 -15 16 - 35 COVID – 19 Business Update & New Overview and Key What makes Satin a Compelling Initiatives Performance Highlights Investment Story 36 - 39 40 - 54 55 - 60 Multiple Growth Financials of the Company & Its Subsidiaries Company Background Levers Cautionary Statement Any f
Slide 3: COVID-19 Business Update & New Initiatives
COVID-19 Business Update & New Initiatives 3
Slide 4: COVID-19 Business Update
COVID-19 Business Update • All branches were operational as on 30th June 2020, all staff has resumed work • Disbursements got impacted on account of Nationwide Lockdown during the quarter • New disbursements were majorly done to existing customers with strong repayment history • As per Central and S
Slide 5: COVID-19 Business Update
COVID-19 Business Update • As of 30th June 2020, GNPA stood at 2.4% • COVID related provision of Rs. 90 crore over and above standard ECL, which is 2% of on-book portfolio Credit Cost and • We have made adequate provisions against default risk of our book under moratorium and other exigencies Provis
Slide 6: Collection Efficiency and Moratorium
Collection Efficiency and Moratorium Improvement in Collection Trend 15% 15% 38% 83% 97% 85% 85% 62% 3% 17% Apr-20 May-20 Jun-20 Jul-20 Aug-20 Collected Not collected • 89% of the clients are activated, 11% opting for complete moratorium • For SHFL, the complete moratorium book stands at 6% • For SF
Slide 7: Taking further steps to achieve completely digital ecosystem
Taking further steps to achieve completely digital ecosystem Modes enabled during COVID-19 for Under progress - Addition of Satin on contactless repayments via popular BBPS (Bharat Bill Payment System) :: UPI apps like Google pay, Paytm, Phonepe One Stop Solution by NPCI for recurring etc. payments
Slide 8: Steps taken to improve connect with customers during COVID-19
Steps taken to improve connect with customers during COVID-19 Connect with Customers Purpose of new product: New “Customer Service App” New Product launched Tele-collection activity by CSS in • Rebuild income generation activities launched to increase digital as COVID-19 containment zones impacted d
Slide 9: Customer Service App (CSA)
Customer Service App (CSA) Provides latest updates to customer on Company’s Policies, Products & Services, Loans Availed, Contact Details etc. Future of CSA… Acts a platform for digital payments, hence Push notification is available to provide updates to clients by ensuring digital literacy in Custo
Slide 10: Socially Responsible At The Time of COVID-19
Socially Responsible At The Time of COVID – 19 Activities done during COVID-19: Contribution to PM Cares Fund and CM Relied Fund in Assam Distribution of Ration Kits and other essential items for Covid and Flood affected districts in Bihar Distribution of Masks and other safety items 10
Slide 11: Overview and Key Performance Highlights
Overview and Key Performance Highlights 11
Slide 12: Key Business Performance Highlights (1/2)
Key Business Performance Highlights (1/2) India’s leading NBFC-MFI with 33.2 lacs customers, 1,355 branches, 393 districts and 23 states, with Assets Under Management (AUM) of Rs. 8,119 crore for Q1FY21 Successfully closed Rights Issue of Rs. 120 crore in Aug’20, great response with oversubscription
Slide 13: Key Business Performance Highlights (2/2)
Key Business Performance Highlights (2/2) Long term Credit Rating CARE A-(stable ) and ICRA A-(stable); Short term rating CARE A1 and ICRA A1, Grading MFI1 (highest order) Social rating sA from Microfinanza, C1 Code of Conduct Assessment (COCA) from ICRA, the highest grade - Implemented cashless dis
Slide 14: Corporate Overview Standalone – Q1FY21
Corporate Overview Standalone – Q1FY21 Rs. 13 crore 0.7% 3.5% 31.09% PAT ROA ROE CRAR Rs. 7,181 crore 54 crore Rs. 23.3 ‘000 1,117 GLP Disbursement No. of Loans disbursed Branches Rs. 16,000 23 34.3 lacs Average Ticket Size States & UTs Loan Accounts Outstanding Data for Q1FY21, RoA and RoE are calc
Slide 15: Corporate Overview Consolidated – Q1FY21
Corporate Overview Consolidated – Q1FY21 Rs. 13 crore 0.7% 3.5% PAT ROA ROE Rs. 8,119 crore 311 crore Rs. 150 crore Rs. GLP Revenue NII 1,355 23 33.2 lacs Branches States & UTs Clients Data for Q1FY21, RoA and RoE are calculated on annualized basis 15
Slide 16: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story 16
Slide 17: What makes Satin a Compelling Investment Story
What makes Satin a Compelling Investment Story 1. Leading MFI player with differentiated Product Offerings 2. Diversified Geographical Reach 3. Technology Prowess 4. Robust Underwriting Processes 5. Well-diversified Liability Profile 6. Ample Liquidity & Positive ALM 7. Strong & Experienced Manageme
Slide 18: Who we are
Who we are Microfinance is primarily based on the Joint Liability Group (JLG) model, to provide financial assistance and enable women from rural and semi-urban areas to achieve self sustainability CREATING A NICHE BY BEING A ONE STOP FINANCIAL SERVICES PROVIDER FOR OUR CUSTOMERS Social impact financ
Slide 19: Awarded excellence in clean energy finance
Awarded excellence in clean energy finance Awarded Certificate of Excellence in Clean Energy Finance Satin is one of the newest partners of Microenergy Credits 01 – (MEC) Satin’s clean energy programme is an illustration of its 02 dedication to serve the bottom of pyramid section of society by provi
Slide 20: Leading MFI player with differentiated Product Offerings
1. Leading MFI player with differentiated Product Offerings Business Correspondent SCNL Housing Finance SME Services Product features Taraashna Financial Services MFI(1) Satin Housing Finance Limited(3) Satin Finserv Limited (SFL)(4) as on Jun’20 Limited(2) Start Date May’08 (JLG) May’12 Feb’18 Mar’
Slide 21: With Focus Only on Micro-Finance Products
… With focus only on Micro-Finance Products Income Generation Loan Product Financing/Wash Emergency Loan Long Term Loan (Prarambh) Festival Loan Loan (Pragati) (Vriddhi) Ticket Size : Ticket Size : Ticket Size : Ticket Size : Ticket Size : Rs. 8,000 – Rs. 30,000 Rs. 6,000 Rs. 1,099 – Rs. 15,000 Rs.
Slide 22: With opportunities to leverage our customer reach
… With opportunities to leverage our customer reach Satin finances product purchase of solar lamps, bicycles etc. and grants loan for safe water and sanitation facilities Financing ~Rs. 100 crore during FY20 Product Financing Benefits Bicycle Loan Solar Products ▪ Enhances the productivity and incom
Slide 23: Diversified Geographical Presence
2. Diversified Geographical Presence …serving ~33 lacs Customers across India 58% 33.2 lacs 37.9 lacs Clients with Satin as Only No. Of Active Clients No. of Loan Accounts Lender* 393 87,000+ No. of Districts No. of Villages 68 2.6 lacs No. of Regional Offices No. of Centres 43% 7,475 11,700 No. of
Slide 24: Increasing exposure to newer states
… Leading to increasing footprints % of total GLP GLP (Rs. crore) States FY16 Q1FY21 Q1FY21 UTTAR PRADESH 40.9% 23.0% 1,863 BIHAR 17.7% 16.2% 1,318 PUNJAB 12.7% 9.5% 771 MADHYA PRADESH 15.5% 9.1% 735 2. Reducing exposure to traditional regions UTTARAKHAND 3.2% 2.0% 163 MAHARASHTRA 1.6% 1.0% 82 TOTAL
Slide 25: And de-risking geographical concentration
… And de-risking geographical concentration To have become a PAN India Player Share of Top 4 States Reduced from 77% to 58% over 4 years Limiting Exposure per district 77.3 Average exposure per district % % of Top 10 Districts to AUM 12.7 67.7 10.1 56.3 -19% 15.5 58.6 57.7 0.45 10.2 19.2 21 12.9 8.4
Slide 26: A Difference Powered by Technological Prowess & Processes
3. A Difference Powered by Technological Prowess & Processes… Turn Around Time of Customer Acquisition Game Changing Help us to be ahead of the curve to better to disbursement journey Digital Transformation Technology respond to the ever-changing business Reduced from 18 days to a few (LMS) scenario
Slide 27: Centralized Shared Services (Vision, Scope & Task Criteria)
Centralized Shared Services (Vision, Scope & Task Criteria) Aimed to maximize the effectiveness of the business process and policies by providing and ensuring high quality services to our clients as well as our stakeholders Credit Risk Management and Data Customer Services Quality Maintenance Loan a
Slide 28: Centralized Shared Services
Centralized Shared Services Branch n1 Centralized Shared Branch n1 Psychometric Service Center Test Loan CB Check Branch n2 Application Branch n2 ABM – n1 ABM – n2 & KYC Collection In case of rejection, transaction In case of Rejection, transaction Operations at Branch would re-flow to Branch for re
Slide 29: Leading to Operating Efficiency & Scalability
… leading to Operating Efficiency & Scalability New initiatives… ..leading to improved processes Centralized processes Reduced TAT KYC Compliance & Real- time Credit Bureau checks Real-time Decision Making Auto bank reconciliation Faster Book Closing using API Enhanced Productivity Penny drop verifi
Slide 30: Robust Underwriting Processes
4. Robust Underwriting Processes Real-time Credit Bureau checks to track loan history of the prospective clients, also created own Credit Bureau scorecard for individual clients for better screening Rotating responsibility Shuffling CSOs every 9 months and transferring every 18 months to reduce huma
Slide 31: Full-fledged in-house Internal Audit
…Full-fledged in-house Internal Audit Full-fledged in-house Internal Audit Feedback based 101 Compliance Audit Zonal Auditors & Regional Auditors 3,876 Audits completed in FY20 100% Digital on Audit Reports and Findings Quarterly Audit 18 man-days field audit per auditor per month Regional Office, B
Slide 32: Well-diversified Liability Profile
5. We have a well-diversified Liability Profile… … insulated from Capital Market Turbulence Product-wise Jun’20 Large Lender Base 3% 61 Active Lenders 0% 27% Term Loan Top 10 Funders % Share as on 30th Jun’20 NCD NABARD 14% 54% Buyout Commercial paper State Bank of India 10% 15% ECB Indian Bank 7% S
Slide 33: Strong Capitalization with Ample Liquidity
6. Strong Capitalization with Ample Liquidity Healthy CRAR to support Growth Opportunities Benefit of positive ALM continues 26.3 25.5 30.45% 31.09% 21.5 22.3 22.1 28.49% 18.4 21.18% 15.5 14.4 11.7 8.4 8.5 9.0 FY18 FY19 FY20 Q1FY21 FY16 FY17 FY18 FY19 FY20 Q1FY21 Avg. maturity of Assets Avg. maturit
Slide 34: With improving asset quality
… With improving asset quality GNPA, Provisions & NNPA on AUM (Rs. crore) GNPA, Provisions & NNPA on AUM (%) 522.5 14.4% 348.6 9.6% 225.7 211.8 184.5 173.5 4.4% 105.6 164.1 2.9% 2.9% 2.4% 212.7 154.5 4.2% 173.9 4.8% 1.7% 2.3% 78.8 0.3% 2.2% 13.0 47.7 1.2% 0.6% 19.1 0.2% Mar-17 Mar-18 Mar-19 Mar-20 J
Slide 35: With improving asset quality – Quarterly
… With improving asset quality – Quarterly On- book GNPA, Provisions & NNPA (%) Provision Coverage Ratio (%) 3.9% 4.4% 4.3% 130.0 3.3% 2.4% 103.2 2.3 2.6 76.9 3.3 60.0 59.4 3.4 3.2 1.6 1.8 1.0 -0.1 -0.8 Q1FY20 Q2FY20 Q2FY20 Q4FY20 Q1FY21 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 PCR % Provisions % NNPA % O
Slide 36: Multiple Growth Levers
Dospan MULTIPLE GROWTH LEVERS..
Slide 37: Industry Growth Drivers
Industry Growth Drivers Massive growth Healthy growth in Increased Government focus potential of MSME Large unmet affordable housing penetration of on digitisation and BC sectors demand in the finance segment technology in industry rural areas 37
Slide 38: Industry Performance
Industry Performance 14,275 (+22% Y-o-Y) 116,738 (+25% Y-o-Y) 3.2 crore (+19% Y-o-Y) Branch Network Employee Base Total Clients 3.9 crore (+24% Y-o-Y) Rs. 27,754 (+15% Y-o-Y) Rs. 74,371 crore (+31% Y-o-Y) Total Loan Accounts Average Ticket Size Assets Under Management (AUM) Off Balance Sheet Balance
Slide 39: Diversification with allied product offerings
Diversification with allied product offerings Taraashna Financial Services Ltd - TFSL Satin Housing Finance Ltd (SHFL) Satin Finserv Limited (SFL) » 100% retail book comprising of: » Incorporated in Aug’18, got license from RBI to » Acting as a business correspondent, TFSL provides » Affordable home
Slide 40: Key Financial & Operational Metrics
KEY FINANCIAL & OPERATIONAL METRICS 40
Slide 41: Key Operation Metrics
Key Operation Metrics Districts, States and Branches Employees & Loan Officers 1,3551 1,383 8,152 7,4752 1,163 6,382 6,296 767 995 23 23 4,481 13,005 11,7003 22 11,831 1,495 18 1,325 1,353 16 9,004 6,910 1,344 383 393 340 1,109 302 10,419 11,148 235 10,040 7,653 5,801 FY17 FY18 FY19 FY20 Q1FY21 FY17
Slide 42: Key Standalone Financials
Key Standalone Financials Gross Income (Rs. crore) Cost to Income Ratio (%) 1,373 1,401 63.3% 54.3% 50.8% 49.7% 44.8% 376 290 333 Q1FY20 Q4FY20 Q1FY21 FY19 FY20 Q1FY20 Q4FY20 Q1FY21 FY19 FY20 NII and PAT (Rs. crore) Opex to GLP (%) 6.3% 6.5% 824 6.1% 6.0% 734 NII 4.7% PAT 240 181 195 134 156 41 12 1
Slide 43: Financial & Operational Details (Consolidated)
FINANCIAL & OPERATIONAL DETAILS (Consolidated) 43
Slide 44: Annexure – Business Details – Consolidated
Annexure – Business Details – Consolidated Particulars Q1FY21 Q1FY20 YoY% Q4FY20 QoQ% AUM (Rs. crore) 8,119 7,139 13.7% 8,174 -0.7% On-Book AUM* 4,653 4,344 7.1% 4,621 0.7% Securitization 46 246 -81.3% 46 -0.1% Assignment 2,009 1,475 36.2% 2,056 -2.3% Business Correspondence 519 648 -19.9% 543 -4.5%
Slide 45: Annexure – Business Details – Consolidated
Annexure – Business Details – Consolidated Particulars Q1FY21 Q1FY20 YoY% Q4FY20 QoQ% No. of Employees 11,700 11,085 5.5% 13,005 -10.0% SCNL 10,040 9,555 5.1% 11,148 -9.9% TFSL 1,353 1,342 0.8% 1,495 -9.5% SHFL 185 106 74.5% 216 -14.4% SFL 122 82 48.8% 146 -16.4% No. of Loan Officers 7,475 7,023 6.4
Slide 46: Annexure – P&L Statement – Consolidated
Annexure – P&L Statement – Consolidated Particulars (Rs. crore) Q1FY21 Q1FY20 YoY% Q4FY20 QoQ % FY20 FY19 YoY% Revenue Interest and Fee Income 258 249 3.6% 257 0.4% 994 1,116 -11.0% DA Income 14 39 -64.9% 85 -83.9% 236 133 76.9% Treasury Income 20 30 -34.0% 23 -12.8% 117 95 23.7% BC Fees 12 31 -61.7
Slide 47: Financial & Operational Details (Standalone)
FINANCIAL & OPERATIONAL DETAILS (Standalone) 47
Slide 48: Annexure - Operational Details – Standalone (Quarterly)
Annexure - Operational Details – Standalone (Quarterly) Particulars Q1FY21 Q1FY20 YoY% Q4FY20 QoQ % Gross AUM (Rs. crore) 7,181 6,467 11.0% 7,220 -0.5% No. of districts 305 350 -12.9% 383 -20.4% No. of branches 1,117 1,024 9.1% 1,140 -2.0% No. of States of operation 23 22 4.5% 23 0.0% No. of Employe
Slide 49: Annexure - Financial Performance – Standalone
Annexure - Financial Performance – Standalone Particulars (Rs. crore) Q1FY21 Q1FY20 Q4FY20 FY20 FY19 Gross yield (1) 16.08% 20.74% 22.07% 20.61% 23.97% Financial Cost Ratio(2) 8.64% 9.45% 7.95% 8.49% 11.15% Net Interest Margin(3) 7.44% 11.29% 14.12% 12.12% 12.81% Operating Expense ratio(4) 4.72% 6.1
Slide 50: Annexure - P&L Statement – Standalone
Annexure - P&L Statement– Standalone Particulars (Rs. crore) Q1FY21 Q1FY20 YoY% Q4FY20 QoQ % FY20 FY19 YoY% Revenue Interest and Fee Income 248 245 1.1% 247 0.4% 966 1,113 -13.2% DA Income 14 39 -64.9% 85 -83.9% 236 133 76.9% Treasury Income 19 28 -31.2% 21 -8.4% 112 91 22.0% BC Income 3 16 -79.9% 1
Slide 51: Financial & Operational Details (Subsidiaries)
FINANCIAL & OPERATIONAL DETAILS (Subsidiaries) 51
Slide 52: Annexure - P&L Statement – TFSL
Annexure - P&L Statement – TFSL Particulars (Rs. crore) Q1FY21 Q1FY20 YoY% Q4FY20 QoQ % FY20 FY19 YoY% Revenue Total Revenue 10.4 16.2 -35.7% 22.2 -53.0% 69.8 68.3 2.2% Expenses Finance Cost 0.9 0.5 87.7% 0.8 21.9% 3.2 2.5 28.4% Employee Benefit Expenses 8.5 9.9 -14.3% 9.4 -9.0% 38.3 35.3 8.3% Credi
Slide 53: Annexure - P&L Statement – SHFL
Annexure - P&L Statement – SHFL Particulars (Rs. crore) Q1FY21 Q1FY20 YoY% Q4FY20 QoQ % FY20 FY19 YoY% Revenue Interest and Fee Income 5.1 3.2 56.0% 5.1 -1.0% 16.8 4.5 277.4% Treasury Income 0.4 0.3 42.9% 0.6 -26.2% 1.9 1.0 83.4% Other income 0.1 0.2 -4.1% 0.8 -81.5% 2.3 1.6 43.1% Total Revenue 5.7
Slide 54: Annexure - P&L Statement – SFL
Annexure - P&L Statement – SFL Particulars (Rs. crore) Q1FY21 Q1FY20 YoY% Q4FY20 QoQ % FY20 Revenue Interest and Fee Income 5.78 1.11 418.9% 5.72 1.1% 13.59 Treasury Income 0.15 0.04 334.9% 0.06 158.2% 0.24 Other income 0.06 0.02 152.6% 0.08 -30.6% 0.18 Total Revenue 5.99 1.17 411.3% 5.86 2.3% 14.02
Slide 55: Company Background
Dospan COMPANY BACKGROUND
Slide 56: Key milestones: Business Timeline
Key milestones: Crossed the USD 1 billion AUM mark Business Timeline 2016 2017 2018 2019 2020 Received NBFC license for SHFL commenced lending in Started MSME Lending in Reaches 27.1 lacs active Satin Finserv Ltd for MSME Received the Award of Feb18; BC agreement with FY17; Acquired TFSL in clients
Slide 57: Key milestones: Fund Raising Timeline
Key milestones: Crossed the USD 1 billion AUM mark Fund Raising Timeline 2015 2016 2017 2018 2019/20 ▪ Raised Rs. 41.5 crore ▪ Raised Rs. 250 crore ▪ In Apr’17, raised $10 ▪ Pref. Allotment: ▪ Exit of MV Mauritius from SBI FMO(3) via QIP in Oct’16; mn from ADB(4) ; Equity funding by (including warra
Slide 58: Differentiated Investment Choice
Differentiated Investment Choice... Investor confidence Marquee Shareholder Base As on Jun 30, 2020 ▪ 7 rounds of equity capital raised with marquee investors ▪ Profitable exit to 4 investors ▪ QIP: Rs. 250 crore from marquee institutions in Oct 2016, Rs. 150 crore from large domestic MFs in Oct 201
Slide 59: Making a Difference to the Community
Making a Difference to the Community Women Financial Empowerment Health Check-up Camps Financial Awareness Camps Skill Development Training Workshops 5 Free health check-up camps for the 9 Awareness camps in Sivasagar region 6 Skill development trainings in 6 Workshops for our clients in 5 states wi
Slide 60: Awards and Accolades
Awards and Accolades ▪ Mr. HP Singh, CMD, was conferred the ‘Golden Globe Tiger Awards’ at an awards ceremony in Malaysia ▪ Mr. HP Singh received the ‘Exemplary Leader’ Award ▪ Mr. HP Singh received Business Leader of the Year Award in NBFC Sector at World HRD Congress by ET Now November 2018 Decemb
Slide 61: Contact information
Contact information Company (Investors & Media) : Ms. Aditi Singh Head – Investor Relations & Corporate Communication E: aditi.singh@satincreditcare.com T: +91 124 4715 400 (Ext – 222) www.satincreditcare.com 61
Slide 62: Thank You
Thank You SATIN CREDITCARE NETWORK LTD. Reaching out!
Satin Creditcare Network — Q1 FY2021 Earnings Presentation on 6ix