Fusion Finance Limited
7,477words
10turns
0analyst exchanges
0executives
Key numbers — 40 extracted
rs,
₹800
1.5x
₹253
₹571
₹693
0.57%
2.98%
22.4%
30%
₹ 800
₹1,000
Risks & concerns — 3 flagged
Key Strengths : Strong Governance Creating Opportunities… Independent Risk Management Function Extensive use of Data Analytics Continuous process re-engineering Comprehensive coverage & continuous Risk Monitoring
— Mission
two women directors, ensuring diversity including Robust Risk Management: The Risk Management Committee actively reviews management policies related to risk mitigation and regulatory compliance.
— Strong Risk governance structure
Dedicated ALM Committee continuously monitors the maturity schedule of financial liabilities and assets, ensuring financial stability and risk mitigation.
— Strong Risk governance structure
Speaking time
2
1
1
1
1
1
1
1
1
Opening remarks
Prudent Lending Approach
Calibrated growth in disbursements with enhanced focus on borrower resilience Early vintage (6M) portfolio showing good performance on quality metrics
Continued improvement in Credit Cost
Sustained quarter over quarter reduction in credit cost (₹253 Cr in Q4’25 Vs ₹571 Cr in Q3’25 & ₹693 Cr in Q2’25) despite accelerated write offs and increase in provision coverage Meaningful reduction in flow rates with 0.57% flow into PAR 0-30 in Q4’25 Vs 2.98% Q2’25 Strong Financial Position & Lenders’ Support: CRAR of 22.4% (30%+proforma for ₹ 800* Cr partly paid rights issue) & robust liquidity of ₹1,000 Cr, as of 23rd May’25 Successfully obtained covenant waiver covering ~86% of total breached limit Raised ₹ 5,040 Cr. through fresh borrowings in FY2025 *First tranche of INR 400 Cr completed in May’25 & remaining INR 400 Cr callable at Company’s discretion 5 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com Fusion Finance – FY25 Snapshot Creating Opportunities… AUM ₹ 8,980 Cr Disbursement ₹ 6,971 Cr Total Income ₹ 2,369 Cr PPOP ₹ 736 Cr GNPA 7.92% NNPA 0.30% NIM 10.21% CRAR 22.42% (30% + proforma for ₹800* Cr partly paid rights issue) Branches 1,571 Active Client Net wor
Key Impact
• Strengthens compliance • Reduces operational fraud • Accelerates onboarding with fully digital customer journeys • Aligns with a field-friendly, frictionless execution mindset 21 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com Geo-Fencing & Location Intelligence → Village level geo-fencing and monitored route planning → Distance-based policies for smarter resource deployment → Event-based tagging throughout loan lifecycle AI/ML-Driven Credit Operations → Intelligent KYC valida(cid:415)on and live face recogni(cid:415)on → Automated credit decisioning with traffic-light model (e.g., risk grading) → Minimizes human bias and enhances underwriting consistency Omni-Channel Collections Enablement → Unified collec(cid:415)on interface across digital, tele-calling, and field teams → AI/ML to identify high-risk customers and guide outreach → Personalized nudges via SMS/WhatsApp to improve recovery rates
Key Impact
• Boosts operational productivity Enhances credit discipline Enables proactive customer engagement • Drives down costs with intelligent automation • • It’s All About People Creating Opportunities… Robust Business Team Experienced Field Team 85% team engaged in direct business across Fusion Majority of the field leadership with 3 years or more vintage in the Company Full-fledged Collection Vertical Separate Collection verticals within MFI and MSME to focus on higher buckets Developing Homegrown Talent Stable Fusion Leadership 70% of the field leadership internally promoted Core management team with average vintage of 6 years. Dedicated Process Quality Vertical Added Process & Quality vertical to further strengthen process adherence & oversee quality in sourcing Established Governance Structure Average One resource for every branch; Ensuring healthy field presence of governance teams Improving Gender Diversity Ratio Over 30% increase in women workforce from March 2024 to March 2025 22 |M
Vision
“Fusion Finance with a social vision and business orientation aims to provide underprivileged women with economic opportunities to transform the quality of their lives.” 24 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com
Mission
“A self-sustainable financial institution which leverages the distribution network to channel other products and services.” Creating Opportunities… Our Presence 4 25 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com Our Presence J & K (2) Punjab (55) Himachal Pradesh (9) Haryana (48) Rajasthan (117) Delhi (5) Uttarakhand (21) Uttar Pradesh (300) Assam (33) Madhya Pradesh (132) Bihar(210) Jharkhand (71) Gujarat (59) Chhattisgarh (35) Maharashtra (45) Telangana (42) West Bengal (36) Odisha (135) Karnataka (53) Andhra Pradesh (48) Puducherry (3) Tamil Nadu (112) 26 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com Creating Opportunities… States Districts Villages Branches AUM (₹ Cr) FY15 5 38 7,289 75 295 FY 16 9 88 FY24 22 453 FY 25 22 497 15,218 1,42,083 1,60,585 173 647 1,297 11,476 1,571 8,980 Creating Opportunities… Key Strengths 5 27 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com Key Strengths Creating Opportunities… Diversification Liability Mana