Creditaccess Grameen Ltd. · NSE:CREDITACC
Creditaccess Grameen — Investor Presentation (May 2021)
32 slides from Creditaccess Grameen's investor presentation, May 2021
Slide 1: CreditAccess Grameen Limited Corporate Presentation
CreditAccess Grameen Limited Corporate 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. 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 Business Overview Annexure www.creditaccessgrameen.in 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 Successfully completed the ✓ Strong commitment by CAI 76.08% Acquisition of Entered in Odisha, Goa, Kerala MMFL − CAI became a shareholder of CAGL in 2009 and has and Puducherry 2020 consistently invested into its growth story since then Listed on NSE / BSE with an IPO of INR 1,130 Cr
Slide 6: Experienced Management Team
Experienced Management Team Udaya Kumar Hebbar Kamath S B Ganesh Narayanan Gururaj Kumar KS Rao Firoz Anam Managing Director & Chief Financial Officer Chief Business Officer Chief Audit Officer Chief Risk Officer Chief Executive Officer ▪ Joined CAGL in 2020 ▪ Joined CAGL in 2020 ▪ Joined CAGL in 20
Slide 7: Unique Business Model
Unique Business Model 2 3 Classical Joint Customer Centric Lending (JLG) Model Business Model 1 4 Market Leadership, Contiguous District Expanded Scale & Key Differentiators Based Expansion With Footprint Rural Focus 6 5 Well-Diversified Unique Human Liability Profile & Capital & Internal Stable Cre
Slide 8: 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 ~ 39.12 Lakh 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
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 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 10: 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 11: 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 12: 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 13: Calibrated, Contiguous District Based Expansion Strategy
Calibrated, Contiguous District Based Expansion Strategy… CAGL’s contiguous district-based expansion over last 6 years Focus on achieving deep penetration within a particular district within three years of commencement of operations Gradual expansion into the next (typically adjoining) district Syst
Slide 14: 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 15: 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 16: 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 17: Well-Diversified Liability Profile & Stable Credit Rating
Well-Diversified Liability Profile & Stable Credit Rating Consolidated Liability Mix as on Mar-21: Consolidated Liability Mix as on Mar-21: 40 banks, 3 FIs, 10 NBFCs and 8 FIIs Tenure Wise (%) Short Term (<= Financial 1 Year) Banks Institutions 27.5% 56% 17% Medium Term (> 1 Year, <= 3 Long Term (>
Slide 18: Discussion Summary
Discussion Summary Investment Rationale Business Overview Annexure www.creditaccessgrameen.in 18
Slide 19: 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 19
Slide 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: Discussion Summary
Discussion Summary Investment Rationale Business Overview Annexure www.creditaccessgrameen.in 27
Slide 28: 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 29: 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 30: 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 31: 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 32: Thank You
Thank You www.creditaccessgrameen.in 32
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