Creditaccess Grameen Ltd. · NSE:CREDITACC
Creditaccess Grameen — Q4 FY2021 Earnings Presentation
65 slides from Creditaccess Grameen's earnings presentation, May 2021
Slide 1: CreditAccess Grameen Limited Q4 & FY21 Investor Presentation
CreditAccess Grameen Limited Q4 & FY21 Investor Presentation May 2021 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 Results Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Investment Rationale Annexure www.creditaccessgrameen.in 3
Slide 4: Organisational Excellence Awards – Two Consecutive Years
Organisational Excellence Awards – Two Consecutive Years Microfinance Organisation of the Year India’s 30 Best Workplaces in BFSI – 2021 The award conferred at the 12th Inclusive Finance India Awards 2020 Great Place to Work Institute India www.creditaccessgrameen.in 4
Slide 5: Balancing Robust Business Growth and Early Risk Recognition
Balancing Robust Business Growth and Early Risk Recognition Business Growth Momentum Maintained in Q4 FY21 Early Risk Recognition and Conservative Provisioning GLP grew by 13% YoY and 10% QoQ to INR 13,587 Cr CAGL: Continued focus on early risk recognition & provisioning • New Disbursals (Jun-Mar):
Slide 6: Consistent Improvement in Monthly Collections (CAGL)
Consistent Improvement in Monthly Collections (CAGL) MoM Improvement in Collection Efficiency 96% 96% 96% 97% 93% 93% 94% Reduction in % Portfolio of Non-Paying Customers 91% Full Payment Partial Payment No Payment Mar-21 94.8% 3.3% 1.9% Dec-20 88.1% 6.8% 5.1% Dec-20 Jan-21 Feb-21 Mar-21 CE% (excl.
Slide 7: Significant Containment of Asset Quality Stress (CAGL)
Significant Containment of Asset Quality Stress (CAGL) MoM Reduction in PAR PAR 0 PAR 30 PAR 60 PAR 90 18.1% 18.8% 16.1% 11.5% 11.8% 11.5% 10.3% 8.9% 8.9% 8.2% 7.0% 8.1% 7.4% 5.2% 6.9% 6.5% 1.8% 4.1% 1.9% 2.5% 1.7% 1.6% 5.2% 5.7% 5.7% 3.5% 1.5% 2.2% 2.9% 1.2% 1.4% 1.6% Mar-20 Sep-20 Oct-20 Nov-20 De
Slide 8: Early Risk Recognition & Conservative Provisioning (CAGL)
Early Risk Recognition & Conservative Provisioning (CAGL) Q4 FY21 Q3 FY21 Asset Classification (dpd) EAD (INR Cr) EAD% ECL% EAD (INR Cr) EAD% ECL% Stage 1 0-15 (GL), 0-30 (RF) 9,748.0 94.5% 1.8%2 9,007.1 90.2% 0.7% Stage 2 16-60 (GL), 31-90 (RF) 114.8 1.1% 24.2% 298.8 3.0% 16.8% Stage 3 60+ (GL), 90
Slide 9: New Disbursements Back on Pre-COVID Growth Path (CAGL)
New Disbursements Back on Pre-COVID Growth Path (CAGL) Significant Pickup in Loan Disbursements, back to Pre-COVID Growth Trend… (INR Cr) 1,560 1,504 1,577 1,320 1,247 1,064 1,046 968 806 525 498 396 0 0 46 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Fe
Slide 10: Update on Collections & Provisioning at MMFL
Update on Collections & Provisioning at MMFL Improvement in Monthly Collections Building Adequate Provisioning 90% 91% Asset Q4 FY21 Q3 FY21 88% 88% 86% 86% 86% 86% Classification (dpd) EAD (INR Cr) EAD% ECL% EAD (INR Cr) EAD% ECL% Stage 1 0-30 1,901.9 90.2% 1.1% 1,890.6 90.8% 2.0% Stage 2 31-90 108
Slide 11: Discussion Summary
Discussion Summary Key Business Updates Consolidated Results Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Business Overview Annexure www.creditaccessgrameen.in 11
Slide 12: Q4 FY21: Consolidated Performance Highlights
Q4 FY21: Consolidated Performance Highlights Branches 1,424 GLP Active Borrowers (+2.2% YoY) INR 13,587 Cr 39.12 Lakh (+13.3% YoY) (-3.5%) Employees 14,399 (-0.7% YoY) PAT: INR 56 Cr ROA/ Adj. ROA 1 PPOP (+82.8% YoY) 1.5%/ 4.8% INR 329 Cr (+83.3% YoY) Adj. PAT: INR 183 Cr 1 ROE/ Adj. ROE 1 (+94.9% Y
Slide 13: FY21: Consolidated Performance Highlights
FY21: Consolidated Performance Highlights Branches 1,424 GLP Active Borrowers (+2.2% YoY) INR 13,587 Cr 39.12 Lakh (+13.3% YoY) (-3.5%) Employees 14,399 (-0.7% YoY) PAT: INR 131 Cr ROA/ Adj. ROA 1 PPOP (-60.8% YoY) 0.9%/ 1.8% INR 952 Cr (+36.2% YoY) Adj. PAT: INR 260 Cr 1 ROE/ Adj. ROE 1 (-34.3% YoY
Slide 14: Q4 & FY21: Consolidated P&L Statement
Q4 & FY21: Consolidated P&L Statement Profit & Loss Statement (INR Cr) Q4 FY21 Q4 FY20 YoY% Q3 FY21 QoQ% FY21 FY20 YoY% Interest income 612.0 466.5 31.2% 513.2 19.2% 2,290.0 1,629.3 40.6% - Interest on Loans 602.1 462.5 30.2% 502.2 19.9% 2,251.5 1,595.4 41.1% - Income from Securitisation 1.0 1.4 -29
Slide 15: Q4 & FY21: Consolidated Balance Sheet
Q4 & FY21: Consolidated Balance Sheet Balance Sheet (INR Cr) Q4 FY21 Q4 FY20 YoY% Q3 FY21 QoQ% Cash & Other Bank Balances 2,484.4 717.6 246.2% 1,586.9 56.6% Loans - Balance sheet assets (Net of Impairment Loss Allowance) 11,707.4 11,004.3 6.4% 11,221.0 4.3% - Securitised assets 13.1 94.6 -86.1% 32.6
Slide 16: Q4 & FY21: Understanding the Credit Cost Impact
Q4 & FY21: Understanding the Credit Cost Impact CAGL Q4 FY21 FY21 MMFL Q4 FY21 FY21 Opening ECL - (A) 594.3 265.7 Opening ECL - (A) 95.9 46.6 Additions (B) 135.9 554.2 Additions (B) 36.1 101.3 - Provisions as per ECL 32.5 450.8 - Provisions as per ECL 27.3 92.6 - COVID Buffer for FY22 103.4 103.4 -
Slide 17: Discussion Summary
Discussion Summary Key Business Updates Consolidated Results Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Investment Rationale Annexure www.creditaccessgrameen.in 17
Slide 18: Q4 FY21: CAGL Standalone Performance Highlights
Q4 FY21: CAGL Standalone Performance Highlights GLP: INR 11,341 Cr NIM Cost/Income Ratio (+14.6% YoY) 11.3%/ 11.9%1/ 12.5%2 29.2% PPOP INR 300 Cr Proforma GLP5: Weighted Avg. COB Opex/GLP Ratio (+75.7% YoY) INR 11,637 8.9% 4.6% (+17.6% YoY) PAT: INR 72 Cr ROA/ Adj. ROA3 Capital Adequacy Ratio Total
Slide 19: FY21: CAGL Standalone Performance Highlights
FY21: CAGL Standalone Performance Highlights GLP: INR 11,341 Cr NIM Cost/Income Ratio (+14.6% YoY) 10.8%/ 11.7%1/ 12.1%2 34.8% PPOP INR 841 Cr Proforma GLP5: Weighted Avg. COB Opex/GLP Ratio (+21.9% YoY) INR 11,637 9.3% 4.5% (+17.6% YoY) PAT: INR 142 Cr ROA/ Adj. ROA3 Capital Adequacy Ratio Total Eq
Slide 20: Q4 & FY21: CAGL Standalone P&L Statement
Q4 & FY21: CAGL Standalone P&L Statement Profit & Loss Statement (INR Cr) Q4 FY21 Q4 FY20 YoY% Q3 FY21 QoQ% FY21 FY20 YoY% Interest income 510.6 454.4 12.4% 413.0 23.6% 1,877.1 1,617.2 16.1% - Interest on Loans 1 504.3 452.0 11.6% 406.8 23.9% 1,858.2 1,611.1 15.3% - Income from Securitisation 0.0 0.
Slide 21: Q4 & FY21: CAGL Standalone Balance Sheet
Q4 & FY21: CAGL Standalone Balance Sheet Balance Sheet (INR Cr) Q4 FY21 Q4 FY20 YoY% Q3 FY21 QoQ% FY21 FY20 Cash & Other Bank Balances 1,946.0 580.4 235.3% 1,322.6 47.1% 1,946.0 580.4 Loans - Balance sheet assets (Net of Impairment Loss Allowance) 9,717.8 9,172.6 5.9% 9,273.7 4.8% 9,717.8 9,172.6 -
Slide 22: Q4 FY21: Well-Diversified Liability Mix
Q4 FY21: Well-Diversified Liability Mix Liability Mix - Institution / Instrument Wise (%) Focus on dynamic liability management Bank - SD Bank - NCD • Focus on long-term funding with a mix of domestic & foreign sources 0.3% NBFCs - TL 8.0% 1.3% • Target to meet funding requirement through foreign/lo
Slide 23: Q4 FY21: Stable Liquidity / ALM Position Backed by Continued Support from Lenders
Q4 FY21: Stable Liquidity / ALM Position Backed by Continued Support from Lenders Static Liquidity / ALM Position For the month For Financial Year Particulars (INR Cr) Apr-21 May-21 Jun-21 FY22 FY23 Opening Cash & Equivalents (A) 1,937.8 2,103.6 2,308.9 2,367.1 3,253.0 Loan recovery [Principal] (B)
Slide 24: Q4 FY21: Positive ALM Continues To Contribute Growth
Q4 FY21: Positive ALM Continues To Contribute Growth Positive ALM Mismatch (in Months) 27.3 27.3 26.6 25.3 23.7 22.7 22.7 21.5 18.6 18.4 18.5 18.4 18.0 18.5 16.1 16.0 15.5 14.1 FY17 FY18 FY19 FY20 FY21 Q3 FY20 Q4 FY20 Q3 FY21 Q4 FY21 Average Maturity of Assets Average Maturity of Liabilities www.cre
Slide 25: Q4 FY21: Stable Credit Ratings
Q4 FY21: Stable Credit Ratings Q4 FY20 Q4 FY21 Rating Instrument Rating Agency Rating/Grading Rating/Grading CRISIL - A+ (Stable) Bank facilities ICRA A+ (Stable) A+ (Stable) Ind-Ra - A+ (Stable) CRISIL - A+ (Stable) ICRA A+ (Stable) A+ (Stable) Non-convertible debentures Ind-Ra - A+ (Stable) BWR -
Slide 26: Q4 FY21: Robust Quarterly Performance Trend (1/2)
Q4 FY21: Robust Quarterly Performance Trend (1/2) Gross Loan Portfolio (GLP) (INR Cr) Disbursements (INR Cr) 14.6% 42.1% 11,341 9,896 9,680 10,203 4,032 4,143 9,207 2,916 1,420 46 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Margin Analysis (%) Operating Efficiency
Slide 27: Q4 FY21: Robust Quarterly Performance Trend (2/2)
Q4 FY21: Robust Quarterly Performance Trend (2/2) Asset Quality (%) PAT (INR Cr) 6.84% 5.18% 5.00% 78 72 4.30% 64 2.78% 5.94% 23 4.38% 1.49% 1.51% 1.64% -72 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 GNPA Provisioning (ECL) Total Equity (INR Cr) & Debt/Equity Rat
Slide 28: Q4 FY21: Strong Business Traction With Rural Focus...
Q4 FY21: Strong Business Traction With Rural Focus... Gross Loan Portfolio (GLP) (INR Cr) Borrowers (‘000) 14.6% -1.2% 11,341 2,905 2,876 2,802 2,837 2,871 9,896 10,203 413 9,680 9,207 74 74 69 66 393 72 499 492 429 10,928 2,831 2,802 2,730 2,768 2,805 9,397 9,188 9,810 8,778 Q4 FY20 Q1 FY21 Q2 FY21
Slide 29: Q4 FY21: ...Backed by Consistent Growth In Infrastructure
Q4 FY21: ...Backed by Consistent Growth In Infrastructure Branches Kendras (Group Lending) (‘000) 5.0% 964 929 929 929 929 71 206 71 71 71 71 200 196 195 195 893 858 858 858 858 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Group Lending Retail Finance Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Employees Loa
Slide 30: Q4 FY21: …Along With Sustainable Productivity
Q4 FY21: …Along With Sustainable Productivity GLP / Branch (INR Cr) GLP / Loan Officer (INR Cr) 7.0 5.8 6.9 5.5 0.7 6.0 0.7 0.7 0.6 0.6 11.0 10.7 11.4 12.2 1.6 10.2 1.3 1.4 1.3 1.4 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Group Lending Retail Finance Group Lend
Slide 31: Q4 FY21: … Product Range To Meet Diverse Customer Needs
Q4 FY21: …Product Range To Meet Diverse Customer Needs GLP - Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Product Mix (INR Cr) % of Total (INR Cr) % of Total (INR Cr) % of Total (INR Cr) % of Total (INR Cr) % of Total IGL 8,447 85% 8,278 86% 8,096 88% 9,381 92% 10,593 93% Family Welfare 168 2% 146 2% 67
Slide 32: Q4 FY21: District Wise Exposure Trend
Q4 FY21: District Wise Exposure Trend Portfolio Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Exposure of Districts No. of % of Total No. of % of Total No. of % of Total No. of % of Total No. of % of Total (% of Portfolio) Districts Districts Districts Districts Districts Districts Districts Districts Dis
Slide 33: Discussion Summary
Discussion Summary Key Business Updates Consolidated Results Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Investment Rationale Annexure www.creditaccessgrameen.in 33
Slide 34: Q4 FY21: MMFL Performance Highlights
Q4 FY21: MMFL Performance Highlights NIM Cost/Income Ratio GLP 8.3%/ 9.0%1/ 10.1%2 50.4% PPOP INR 2,246 Cr INR 33 Cr (+7.0% YoY) Weighted Avg. COB Opex/GLP Ratio (-28.3%) 10.7% 6.1% PAT: INR -14 Cr ROA/ Adj. ROA3 Capital Adequacy Ratio Total Equity (-154.1% YoY) -2.1%/ -1.1% 20.9% INR 401 Cr Adj. PA
Slide 35: FY21: MMFL Performance Highlights
FY21: MMFL Performance Highlights NIM Cost/Income Ratio GLP 10.2%/ 10.8%1/ 11.3%2 49.0% PPOP INR 2,246 Cr INR 125 Cr (+7.0% YoY) Weighted Avg. COB Opex/GLP Ratio (-23.6%) 10.9% 5.7% PAT: INR -0.2 Cr ROA/ Adj. ROA3 Capital Adequacy Ratio Total Equity (-100.2% YoY) -0.01%/ 0.3% 20.9% INR 401 Cr Adj. P
Slide 36: Q4 & FY21: MMFL P&L Statement
Q4 & FY21: MMFL P&L Statement Profit & Loss Statement (INR Cr) Q4 FY21 Q4 FY20 YoY% Q3 FY21 QoQ% FY21 FY20 YoY% Interest income 101.4 118.0 -14.1% 100.3 1.1% 412.6 454.9 -9.3% - Interest on Loans 1 97.9 108.0 -9.4% 96.4 1.6% 393.0 422.3 -6.9% - Income from Securitisation 1.0 8.8 -88.7% 2.2 -54.8% 13
Slide 37: Q4 & FY21: MMFL Balance Sheet
Q4 & FY21: MMFL Balance Sheet Balance Sheet (INR Cr) Q4 FY21 Q4 FY20 YoY% Q3 FY21 QoQ% FY21 FY20 Cash & Other Bank Balances 538.4 137.2 292.5% 264.3 103.7% 538.4 137.2 Investment in Mutual Funds 0.0 45.0 - 0.0 - 0.0 45.0 Loans - Balance sheet assets (Net of Impairment Loss Allowance) 1,989.5 1,832.0
Slide 38: Q4 FY21: Quarterly Performance Trend (1/4)
Q4 FY21: Quarterly Performance Trend (1/4) Gross Loan Portfolio (GLP) (INR Cr) Disbursements (INR Cr) 7.0% 40.6% 2,100 2,118 2,246 2,044 1,975 583 558 415 228 0.4 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 PAT (INR Cr) Total Equity (INR Cr) & Debt/Equity Ratio 5.
Slide 39: Q4 FY21: Quarterly Performance Trend (2/4)
Q4 FY21: Quarterly Performance Trend (2/4) Margin Analysis (%) Operating Efficiency (%) 22.3% 5.9% 5.9% 5.9% 6.1% 21.3% 20.8% 19.4% 18.4% 5.1% 49.9% 52.6% 50.4% 12.4% 11.5% 11.2% 40.6% 43.0% 10.8% 10.7% 11.7% 11.2% 10.9% 10.2% 8.3% Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 F
Slide 40: Q4 FY21: Quarterly Performance Trend (3/4)
Q4 FY21: Quarterly Performance Trend (3/4) Borrowers (‘000) Branches -9.7% -0.9% 1,215 1,198 1,139 1,131 464 459 459 460 460 1,098 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Employees Loan Officers 2.8% 6.9% 3,756 3,792 3,774 2,056 2,142 2,108 3,672 3,637 1,972 1
Slide 41: Q4 FY21: Quarterly Performance Trend (4/4)
Q4 FY21: Quarterly Performance Trend (4/4) GLP / Branch (INR Cr) GLP / Loan Officer (INR Cr) 4.5 4.5 4.6 4.6 1.1 1.1 4.3 1.0 1.0 1.0 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Borrowers / Branch Borrowers / Loan Officer 2,619 2,611 2,481 616 609 2,459 2,387 554 5
Slide 42: Q4 FY21: District Wise Exposure
Q4 FY21: District Wise Exposure Portfolio Q4 FY20 Q4 FY21 Exposure of % of % of Districts No. of No. of Total Total Districts Districts (% of Portfolio) Districts Districts < 0.5% 31 33% 29 30% 0.5% - 1% 23 24% 27 28% 1% - 2% 27 28% 28 29% Q4 FY20 Q4 FY21 2% - 4% 12 13% 11 11% District in terms of G
Slide 43: Q4 FY21: Diversified Liability, Stable Liquidity, Positive ALM
Q4 FY21: Diversified Liability, Stable Liquidity, Positive ALM Liability Mix – Static Liquidity / ALM Position For the month Q4 FY21 Institution / Instrument Wise Particulars (INR Cr) Apr-21 May-21 Jun-21 Banks – Term Loan 49.5% Opening Cash & Equivalents (A) 538.4 571.0 618.6 FIs – Term Loan 14.8%
Slide 44: Discussion Summary
Discussion Summary Key Business Updates Consolidated Results Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Investment Rationale Annexure www.creditaccessgrameen.in 44
Slide 45: Investment Rationale
Investment Rationale 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) Aud
Slide 46: Leading MFI with Expanded Scale & Footprint (1/2)
Leading MFI with Expanded Scale & Footprint (1/2) Strengthened Leadership Position with ~ INR 13,587 Cr Portfolio Augmented Borrower Base of ~ 3.9 Mn GLP (INR Cr) Borrowers (‘000) CAGR 45.0% CAGR 28.2% -3.5% 13.3% 13,587 4,055* 3,912* 11,996 2,246 1,215 1,098 2,100 2,470 7,159 1,851 4,975 11,341 1,4
Slide 47: 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 38.0% CAGR 27.1% CAGR 30.6% 2.2% -0.7% 1,424 -1.3% 1,393 14,496 14,399 9,688 9,559 464 460 1,972 3,672 3,774 2,108 5,768 8,064 670 4,544 6,306
Slide 48: 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 Cr) Disbursements (INR Cr) CAGR 38.6% CAGR 29.7% 11,341 10,389 9,896 9,641 413 8,221 7,159 499 4,975 6,082 3,075 325 51 9,397 10,928 3,403 1 6,834 3,075 4,923 FY17 FY1
Slide 49: 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 Cr) 5.00% 322 328 2.78% 1.14% 4.38% 212 143 1.49% 0.75% 0.59% 75 0.08% FY17* FY18 FY19 FY20 FY21 FY17* FY18 FY19 FY20 FY21 GNPA Provisioning (ECL) Total Equity (INR Cr) & D
Slide 50: Consistent Organic (Standalone) Growth Trend (3/3)
Consistent Organic (Standalone) Growth Trend (3/3) Branches Borrowers (‘000) & Retention Rate (%) 86% 84% 87% 85% 87% 929 964 2,905 2,871 2,470 670 71 71 74 66 1,851 41 516 1,450 393 60 6 30 858 893 0 2,831 2,805 5 2,429 486 610 1,845 388 1,450 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Group
Slide 51: 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 52: 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 rates among- suite catering to entire customer life cycle the lowest in the industry 19.15% Customer flexibility - Even in a group, borrowers members can canhave havedif
Slide 53: Customer Centric Business Model (2/2)
Customer Centric Business Model (2/2) Loan Customer Centric Ticket Size Tenure Cashless shift based Purpose Type Products (INR) (months) on customer’s preference Business Investments and Income Group Income Generation Loan(IGL) 5,000 - 80,000 12-24 • Small loans: Enhancement activities Cash/Cashless
Slide 54: 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 55: …Leading To Geographic Diversification
…Leading To Geographic Diversification Our Presence Branch Network Q4 FY21 Q4 FY21 CAGL + MMFL % Share 14 States / 1 UT Karnataka 298 20.9% 265 Districts Maharashtra 279 19.6% 1,424 Branches Uttar Pradesh Tamil Nadu 381 26.8% 20 Madhya Pradesh 120 8.4% Other States & UTs 346 24.3% Rajasthan Bihar 30
Slide 56: …And Deeper Presence with Rural Focus
…And Deeper Presence with Rural Focus CAGL Districts MMFL Districts Common Districts Q1 FY21 Combined Presence 247 96 78 Districts: 265 Higher District Penetration: Branches Per District Higher Proportion of Rural Borrowers 5.4 82% 85% 4.0 FY20 (CAGL) FY21 (CAGL + MMFL) FY20 (CAGL) FY21 (CAGL + MMFL
Slide 57: 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 58: 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 59: Discussion Summary
Discussion Summary Key Business Updates Consolidated Results Overview CAGL: Financial & Operational Metrics MMFL: Financial & Operational Metrics Investment Rationale Annexure www.creditaccessgrameen.in 59
Slide 60: Shareholding Structure
Shareholding Structure Shareholding Pattern – March 2021 Top 10 Institutional Investors – March 2021 HDFC Life Insurance Company ICICI Prudential Life Insurance Company Others, 3.37 QIB, 3.48 ICICI Prudential MF IIFL AMC MF & AIF, 9.02 Nippon MF T Rowe Price FPI, 10.14 Taiyo Pacific Partners Promote
Slide 61: 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. Marginal COB = (Borrowings availed during
Slide 62: COVID-19 CSR Initiatives (Directly Managed By CAGL Team): FY21
COVID-19 CSR Initiatives (Directly Managed By CAGL Team): FY21 In the backdrop of COVID-19 pandemic situation in India, CAGL has decided to focus its CSR activities in towards following activities – Number of Number of Number Type Of Activity Target Beneficiaries Institutions Beneficiaries of Kits •
Slide 63: COVID-19 CSR Initiatives (Directly Managed By CAGL Team): FY21
COVID-19 CSR Initiatives (Directly Managed By CAGL Team): FY21 Estimated Total Amount (INR) State Expenditures (As on 31st Mar, 2021) Karnataka 76,57,000 87,47,918 Maharashtra 44,20,000 46,49,178 Tamil Nadu 26,20,000 23,38,157 Madhya Pradesh 12,65,000 11,87,841 Chhattisgarh 4,51,000 5,04,775 Odisha
Slide 64: COVID-19 CSR Initiatives (Through Navya Disha): FY21
COVID-19 CSR Initiatives (Through Navya Disha): FY21 Number of Type Of Number of Number Total Amount (INR) Target Beneficiaries Institutions State Activity Beneficiaries of Kits (As on 31st March, 2021) / Locations Karnataka 50,58,096 Grocery Kits 460 1,707 1,644 Flood affected members, Covid-19 Mah
Slide 65: For Further Queries:
For Further Queries: Nilesh Dalvi Head – Investor Relations Contact No – 9819289131 Email ID – nilesh.dalvi@cagrameen.in www.creditaccessgrameen.in 65
CreditAccess Grameen — Q4 FY2021 Earnings Presentation on 6ix