SATINNSE8 May 2019

Satin Creditcare Network Limited has informed the Exchange regarding Investor Presentation

Satin Creditcare Network Limited

To,

The Manager, National Stock Exchange of India Ltd. Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra East, Mumbai-400051

Scrip Code: SATIN

Dear Sir/Madam,

Sub: Investor Presentation;

May 8, 2019

The Manager BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400023

Scrip Code: 539404

Pursuant to Regulation 30 and 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in terms of other applicable laws, if any, please find the Investor Presentation for the financial year ended on March 31, 2019, as approved by the Board of Directors in their meeting held on May 8, 2019.

We request you to make this presentation public by disclosing the same on your website.

The above information is also available on the website of the Company: www.satincreditcare.com

Thanking You,

Yours Sincerely, For Satin Creditcare Network Limited

(Choudhary Runveer Krishanan) Company Secretary & Compliance Officer

Encl: a/a

Corporate Office: 1st and 3rd Floor, Plot No 97, Sector‐44, Gurugram ‐ 122003 Haryana, India

Registered Office: 5th Floor, Kundan Bhawan Azadpur Commercial Complex, Azadpur, New Delhi ‐ 110033, India

CIN

Landline No E‐Mail ID Website

: L65991DL1990PLC041796 : 0124‐4715400 : info@satincreditcare.com : www.satincreditcare.com

INVESTOR PRESENTATION March 2019

BUILDING A DIFFERENCE TO MAKE A DIFFERENCE

BSE: 539404 | NSE: SATIN Corporate Identity No. L65991DL1990PLC041796

Contents

Key Business Performance Highlights

Strong Risk and Audit Procedure

Differentiated Product Offerings

Key Financial and Operational Charts

Our Guidance

Operation and Financial Annexures

Industry

Making a Difference to the Community

Cautionary Statement Any forward-looking statements about expected future events, financial and operating results of the Company are based on certain assumptions which the Company does not guarantee the fulfilment of. These statements are subject to risks and uncertainties. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Company’s operations include a downtrend in the industry, global or domestic or both, significant changes in political and economic environment in India or key markets abroad, tax laws, litigation, labour relations, exchange rate fluctuations, technological changes, investment and business income, cash flow projections, interest and other costs. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

Key Business Performance Highlights

India’s leading NBFC-MFI in terms of Assets Under Management (AUM), with higher-than-industry CAGR of 37.3% over last 6 years

Crossed the USD 1-Billion AUM mark, improved operational metrics – RoA 3.1%, RoE 19.8%, CRAR 28.5% & Cost to Income Ratio 54.3% in FY 2019 on consolidated basis

Business Correspondent (BC) business with IndusInd Bank reached ~Rs. 633 crores AUM

Expanded geographical footprints to 5 new states, adding 168 branches

Stable portfolio quality, with substantial improvement from FY18

Long term Credit Rating upgraded to CARE A- (Stable); Short term rating at A1 from CRISIL and CARE ; Grading of MFI 1

Received social rating upgrade to sA from Microfinanza, C1 Code of Conduct Assessment (COCA) from ICRA, the highest grade

Cashless :

- disbursement enabled at 100% of branches - collection pilot successful

Amongst the First MFIs to foray in digital lending by launching “Loan Dost” with no human intervention, tapping the millennials

Subsidiaries: - RoE of Taraashna Services Ltd for FY19 stood at ~23%

- Nil Delinquency in portfolio of Satin Housing Finance Ltd

- Commenced business in Satin Finserv Ltd, Satin’s MSME arm

Key Performance Indicators(1)

CROSSED USD 1-BILLION MARK - NEW FEATHER IN CAP

Particulars

AUM

Revenue

FY19

FY18

YoY

Particulars

Q4FY19

Q4FY18

Q3FY19

YoY

QoQ

(Rs cr)

7,068

5,757

22.8%

AUM

(Rs cr)

7,068

5,757

6,208

22.8%

13.9%

(Rs cr)

1,448

1,031

40.4%

Revenue

(Rs cr)

350

295

400

18.6%

(12.5%)

NII

(Rs cr)

806

497

PAT

(Rs cr)

201

RoA

(%)

3.1

1.4

RoE

(%)

19.8

11.2

62.0%

169.4%

128.2%

76.2%

NII

(Rs cr)

197

150

233

31.7%

(15.4%)

PAT

(Rs cr)

49.5%

(20.9%)

RoA

(%)

3.3

2.5

4.2

RoE

(%)

20.4

17.4

27.5

31.1%

(21.2%)

17.0%

(26.1%)

CRAR

(%)

28.49

21.18

34.5%

CRAR

(%)

28.49

21.18

30.07

34.5%

(5.3%)

(1) On consolidated basis; RoA and RoE are calculated on annualized basis for quarterly data

Cost/ Inc

(%)

54.3

67.8

(19.9%)

Cost/ Inc

(%)

62.1

61.9

45.9

0.4%

35.4%

Corporate Overview

PURSUING EXCELLENCE IN EVERY PARAMETER(1)...

Rs.195 crores

PAT, 137.3% up YoY

3.0%

ROA, 101.1% up YoY

19.1%

ROE, 56.0% up YoY

Rs.6,374 crores

GLP, 25.3% up YoY

Rs.6,252 crores

Disbursements, 12.2% up YoY

23.4 lacs

No. of Loans disbursed, 28.8% up YoY

Rs.26,000

Average ticket size

States & UTs, 22.2% up YoY

(1) On a standalone basis (2) On portfolio disbursed since Jan’18, comprising 89% of portfolio

977

Branches, 20.8% up YoY

99.5%(2)

Collection efficiency

36.0 lacs

Loan accounts outstanding, 47.7% up YoY

“SATIN’S TRANSFORMATION”

THE JOURNEY OF DIFFERENCE…

KEEP FOLLOWING

A Difference Powered by Technological Prowess & Processes

Game changing digital transformation technology (LMS) has made operations quick & easy wherein we have been able to turn around the customer acquisition to disbursement journey from the traditional 18 days to few minutes. With this digital transformation we have completely step changed the way we look at the business dynamics today and are ahead of the curve to better respond to the ever changing business scenarios

LMS

Online real-time system

Last Mile Connectivity on Tabs

Greener (paperless environment)

Event based mapping of Geo Location & Tracking Penetration

Instant Bank Account Verification

Core Accounting & Financial System

Cashless Disbursement @100% branches

Real-time Dashboards

Real-time CB Checks.

Features enabling brand recall value (SMS, OTP, QR Code)



Technology footprint at Subsidiaries



BC subsidiary also using the same technology & leveraging the same benefits

Centralized Shared Service centre introduced within SATIN & Taraashna to create unified support model across Business Reporting / End User Applications Support & Managed Infrastructure

Strategic Direction for newer subsidiaries like Housing & MSME on industry best technology platform “OMNIFIN”

Gold Standard Information Security



Our company has become the first MFI to be certified with ISO 27001:2013, which affirms the prevalence of robust ISMS specifying for requirements the implementing, maintaining establishing, and continually improving ISMS within the organisation

This certification indicates SATIN has integrated a robust ISMS in its business processes & exemplifies that information security and client confidentiality are part of the cornerstones of SATIN’s strategic objectives.

LoanDost – New Initiative in Digital Lending Amongst the First MFIs to foray in digital lending with no human intervention, tapping the millennials

“A Digital Lending Platform”



Satin has also taken a big leap & has come up with a step changing digital lending platform named “Loan Dost”, this has been done with a vision of being future ready catering to salaried class consumers. The future of lending without any human intervention is the way forward, leveraging the new innovative technologies fully integrated through API’s & powered by AI, ML & DevOps. Loan Dost has capability to make underwriting decision in 25 minutes without any human intervention. It is robust and secure, and makes different kind of checks to protect against any fraudsters and clients not worthy of credit.

 App based platform available on Google Play Store for Android users,



instant loans from Rs. 10,000-1,50,000. LoanDost leverages unique features like psychometric evaluation of customers, underwriting without human intervention & repayment via NEFT / IMPS / UPI. LoanDost brings exciting future roadmap through extending its reach towards self-employed consumers, integrations with Amazon for gift cards and rolling out dynamic offers based on customer profiling.

Process to Create a Difference

Strong Process to deliver Quality with enhanced customer experience

• Robust due diligence with strict compliance of KYC, real time credit bureau checks

• Disbursement control through cashless transaction – real time bank account verification by penny drop verification

• Creating new score cards for clients (individuals and group) for better screening. This will also prove beneficial while offering

housing or MSME loans to 2

cycle customers and above

• Better informed decision in new branch opening through credit bureau data analysis after shortlisting by business development

team

• Digitized the business correspondence documentation and approval process for seamless operations

• Moving to Centralized Sharing Services which will prove as game changer in ensuring control, quality and information security

•

Initiative to move towards 50+% of cash less collections across all geographies by end of FY20

Strong Risk and Audit Procedures

Internal audit processes and systems design an annual audit plan to ensure optimum portfolio quality

Full-fledged in-house Internal Audit department includes:



88-member team of Zonal Auditors and Regional Auditors with Head Office support with 20 man-days audit per auditor

 Digitization of the complete Audit process has started and next few months we will be 100% digital on Audit Reports and Findings



The team did 3,074 audits in last 12 months and 100% compliance in FY19

Regional Office Audit and Social Audit takes place on a quarterly basis

Compliance Audit is done on the basis of feedback from other audits

Risk management team has a clear focus on Quality of Portfolio and mitigation of Risk Risk team comprises of 28 people working across the country



Fixing an exposure limit of Risk across all geographies to the total industry exposure

 All the new geographies are now cleared with industry portfolio data from Credit Bureau Data



Surprise visit with center verifications to have better field control

 Geo Tagging of all centers and customers mapping to reduce the dependence on Loan officers



Regional Risk Officers are visiting the customers regularly

A Values-led Culture

Values are the bedrock of business culture, a key driver of differential approach

Success is rooted in core values and powered by quality credentials, enabled by the passion of our people

Seeking excellence

Accountability & ownership

Talent Management

Training Interventions

Teamwork & collaboration

Nurturing lives

Integrity

New-age HRMS software

Better workplace

Keeping employees engaged

Corporate connections

A People Oriented Culture

Value driven Culture : Core values were reworked and aligned to our belief as a team

Talent Management : Building a Talent pipeline and identifying the high potentials (HI Pots) on the 9 Grid matrix as a key imperative to succession planning

Learning initiatives : -12,603 Man-days of functional training for field staff

-5 new E-learning modules and 530 man-days of soft skills training to middle & senior management

-Introduction of certificate course in Microfinance with BSE Institute

-Conducted Gallop strengths analysis and coaching for top 60 executives of the company

HR MIS : Introduced state of the art HR-MIS software for managing employee life Cycle

Driving the engagement agenda : Create a healthy and better workplace with new employee benefit programs, compensation benchmarking with industry, scientific appraisal system, meritocratic culture, creating a culture of trust

Corporate Overview

CREATING A NICHE BY BEING A ONE STOP FINANCIAL SERVICES PROVIDER FOR OUR CUSTOMERS



Business primarily based on the Joint Liability Group (JLG) model, to enable women from rural and semi-urban areas to achieve self sustainability Providing credit facilities for

Income Generating Loans (IGL)

• • Mid Term Loans (MTL) • Long Term Loans (LTL) • Micro Small & Medium Enterprises (MSME) • Housing finance •

Social impact financing of products like solar lamps, bicycles, water and sanitation facilities

Visionary Management backed by Professional Team

Established track record of delivery through vast branch network

Strong client relationship built on transparent practices & internal controls

Low-risk lending aimed at income generation

Diversified product & geographical portfolio

Proprietary IT platform & Technology prowess

Large marquee institutional investor base

Comfortable liquidity and CRAR

Large marquee institutional investor base

Differentiated Business Structure

Expanding scope of business through subsidiaries

SATIN CREDITCARE NETWORK LIMITED

Taraashna Services Ltd (TSL)

Satin Housing Finance Ltd (SHFL)

Satin Finserv Limited (SFL)



Subsidiaries are also rooted in the same values as pursued by Satin

Taraashna Services Ltd (TSL)

 Acting as a business correspondent for Banks & NBFCs, TSL provides credit and other related facilities to clients in rural and semi-urban

areas



‘Digitization and Cashless’ focus has helped in achieving superior operational control down to the last business unit, thus increasing the efficiencies

The cashless disbursement percentage has reached almost 59% of TSL’s total disbursement as at the end of FY19

TSL has a low risk business model which is highly capital efficient and yields elevated RoEs. RoE for FY19 stood at ~23%

 AUM stood at Rs. 604 crores, with presence across 8 states



TSL’s board has approved the proposal to convert TSL into an NBFC, to explore opportunities in co-lending space, and other financial products not offered within the group

180

No. of Branches

3,96,887

No. of Active Loan Clients

2,32,124

No. of Loans Disbursed in FY19

Satin Housing Finance Ltd (SHFL)

Main Ethos Principle of PPT – People, Process and Technology



Engaged in providing long-term finance

 

Home loans for retail segment – 88% of business for FY19 Loans against residential property

 Boasts of excellent portfolio quality with NIL delinquency since inception

 Mainly caters to customers belonging to the Middle and Low Income Groups in peripherals of Tier II and below cities

 During FY19, the company successfully channelized subsidy from NHB under the Pradhan Mantri Awas Yojna (PMAY) scheme to the eligible

customers

 BBB+ (SO) Stable rating from CARE

 Building a technological framework to enable a paperless environment

<60%

Average LTV (of total portfolio)

Rs. 83 crores

Disbursements

Rs. 79 crores

AUM

630

No. of customers

No. of states

Satin Finserv Limited (SFL)



Incorporated in Aug’18

 Got license from RBI to start the business in Jan’19



First loan successfully disbursed in Mar’19

 Gross Loan Portfolio of Rs. 11.4 crores in FY19

 CRAR for FY19 is 187.37%

 Business will focus on retail MSME lending, wholesale lending to small NBFC MFI and others

Differentiated Investment Choice...

Investor confidence   

7 rounds of equity capital raised with marquee investors Profitable exit to 4 investors QIP: Rs. 250 crores from marquee institutions in Oct 2016,

Rs. 150 crores from large domestic MFs in Oct 2017

Promoter Commitment 

Promoter stake quite high among MFIs, having invested at regular intervals at par with incoming PE Adequate board representation – 2 Nominee Directors representing the Investors



Marquee Shareholder Base As on March 31, 2019

16.38%

27.94%

19.15%

6.89%

6.78%

14.82%

3.16%

4.88%

Key Shareholders

Promoter

NMI

SBI-FMO

Kora Cap

ADB

FPIs

MFs

Others

Key Market Statistics

Particulars

BV Jun’18

BV Sep’18

BV Dec’18

BV Mar’19

CMP ( as on 3 May’19)

Book value is on consolidated basis

Value (Rs.)

196.65

205.79

218.62

235.22

340.45

Mutual Funds  DSP  Aditya Birla  UTI

Foreign Portfolio Investor  Morgan Stanley  Government Pension Fund Global  Massachusetts Institute of Technology

Financial Institutions  IDFC First Bank Ltd  IndusInd Bank Ltd

Foreign Bank  Asian Development Bank

A Difference in Way of Doing Business

Business Correspondent (BC) Partnership with IndusInd Bank

 Entered into BC partnership with IndusInd Bank in H2 FY18



Share of BC portfolio(1) to total AUM has grown from ~1% in Q1 FY19 to ~10% in Q4 FY19 at Rs. 633 crores

 Advantages from the agreement are on-tap funding, low capital requirement, contained cost of liquidity among others

Quarter-wise AUM in Rs. in crore

Quarter-wise Disbursement in Rs. in crore

T N U O M A

M U A

215.0

47.4

633.2

407.5

T N U O M A T N E M E S R U B S I D

48.8

319.1

234.0

181.2

Q1 FY19

Q2 FY19

Q3 FY19

Q4 FY19

Q1 FY19

Q2 FY19

Q3 FY19

Q4 FY19

1On standalone basis

A Difference Manifested in A PAN-India Customer Base



Pan India presence, which has a growing distribution network to service the unique over 35 lac customers on needs of consolidated basis

 Remain aggressively focused on deepening presence in the rural and semi-urban areas, particularly those unserved or underserved, across 22 states and union territories



Expanded footprints in North East and Southern India, with the addition of Meghalaya, Tripura, Tamil Nadu, Karnataka and Pondicherry to Satin map in FY19

 Added 168 branches during FY19

Successfully Reduced Concentration

Share of Top 4 States Reduced from 87% to 56% over 4 years

Focus on limiting concentration per state <20% by 2020

GLP (RS. cr)

3,270.8

4,066.5

5,756.8

7,068.4

13.20%

12.70%

15.50%

17.70%

40%

22.70%

10.10%

19.20%

18.10%

32.30%

10.20%

12.90%

18.30%

29.90%

26.30%

43.60%

8.40%

8.80%

17.50%

21.60%

FY 16

FY 17

FY 18

FY 19

Bihar MP

Punjab

Others

On consolidated basis

States

UTTAR PRADESH BIHAR

MADHYA PRADESH PUNJAB ASSAM RAJASTHAN WEST BENGAL ORRISA HARYANA GUJARAT DELHI & NCR JHARKHAND MAHARASHTRA UTTARAKHAND TAMIL NADU CHHATTISGARH TRIPURA JAMMU & KASHMIR HIMACHAL PRADESH KARNATAKA MEGHALAYA PONDICHERRY TOTAL

GLP - Q4 FY19 Rs cr

Q4 FY19 % mix

FY15 % mix

Change

1527.6 1236.9

620.5 597.0 547.1 493.3 424.6 348.6 257.6 227.0 208.8 122.5 119.5 100.9 87.8 71.9 48.7 6.3 6.1 5.6 5.1 4.9 7068.4

21.6% 17.5%

8.8% 8.4% 7.7% 7.0% 6.0% 4.9% 3.6% 3.2% 3.0% 1.7% 1.7% 1.4% 1.2% 1.0% 0.7% 0.1% 0.1% 0.1% 0.1% 0.1% 100.0%

43.3% 17.2%

18.5% 8.2% 0.0% 1.6% 0.0% 0.0% 1.1% 0.0% 5.1% 0.0% 0.9% 4.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 100.0%

Reduced Risk Through Limiting Exposure Per District % (JLG consolidated)

Average exposure per district %

% of Top 10 Districts to AUM

% of Top 10 Districts to Networth

0.50%

0.45%

27%

0.35%

0.28%

21%

19%

FY16

FY17

FY18

FY19

FY16

FY17

FY18

267%

188%

120%

88%

16%

FY19

FY16

FY17

FY18

FY19

Particulars

No. of Districts - JLG

Average exposure per district %

Top 3 district with highest exposure %

J.P. NAGAR

BULANDSHAHR

FY16

180

0.50%

U.P.

FY17

236

0.45%

FY18

306

0.35%

4.28% BULANDSHAHR

U.P.

3.21% BULANDSHAHR

U.P.

2.86% SAMASTIPUR

2.62% SAMASTIPUR

BIHAR

2.63% SAMASTIPUR

BIHAR

2.58% BEGUSARAI

FY19

359

0.28%

BIHAR

2.36%

2.00%

BEGUSARAI

BIHAR

2.40% BEGUSARAI

BIHAR

2.38% BEGUSARAI

BIHAR

2.34% BULANDSHAHR

UTTAR PRADESH

1.86%

% of Districts with <1% exposure

% of Districts with <1-1.5% exposure

% of Districts with <1.5%-2% exposure

% of Districts with >2%

85.0%

6.7%

2.8%

5.6%

88.1%

6.8%

3.0%

2.1%

92.5%

4.6%

2.0%

1.0%

96.4%

2.5%

0.6%

Rural Focus of Operations

Break-up of operations

Purpose-wise details

23.0%

7.8%

16.4%

2.9%

77.0%

72.9%

Rural

Urban

Agriculture & allied

Production

Trading

Others

For MFI portfolio excluding MSME

Differentiated Product Offerings

Product features as on Mar’19

Start Date

Ticket Size Range

SCNL

Business Correspondent services

MFI(1)

Loans to MSME(2)

Taraashna Services Ltd(3)

May’08 (JLG)

Apr’16

Upto Rs. 50,000

Rs. 100,000 – 100,000,000

May’12(3)

Upto Rs. 50,000 (JLG - Microfinance)

Housing Finance

SME

Satin Housing Finance Ltd(4) Satin Finserv Limited (SFL)(5) Mar’19

Feb’18

Rs. 100,000 – 4,000,000

Rs. 100,000 – 100,000,000

Tenure

12 - 24 months

12 - 120 months

12 - 24 months

24 - 240 months

12 - 120 months

Frequency of Collection

Bi-Weekly

Monthly

Bi-Weekly / 2 Bi-Weekly

Monthly

No. of States/UTs

No. of Branches

Gross Loan Portfolio (Rs. cr)

971

6,113

No. of loan accounts

3,602,898

261

1,748

180

604

396,887

630

Avg. Ticket Size for FY19

Rs. 26,000 (JLG)

Rs. 2,350,000

Rs. 27,400 (JLG)

Rs. 1,453,000

Rs. 28,700,000

Notes (1) As on Mar’19, included MFI Lending (loans under JLG model, IndusInd BC, water & sanitation loans and loans to individual businesses) and Product Financing (Loans for solar lamps, cycles); (2) MSME: Micro, Small & Medium Enterprises; (3) TSL acquisition is effective Sep 1, 2016; (4) Satin Housing Finance Ltd was incorporated on April 17, 2017 (5) SFL was incorporated on August 10, 2018 *As of FY19, there were 971 branches with Microfinance operations & 34 branches with MSME operations. Out of the 34 MSME branches, 28 of them also had microfinance operations & 6 were unique.

“RESILIENT SATIN”

Improved Collection Efficiency

Robust collection efficiency reflecting high credit discipline in disbursement

Period of disbursement

Jan’17 to Dec'17

Jan’18 onwards

99.5 %

67%

97.7 %

33%

Demand (Rs cr)

4,413.95

3,264.22

% of AUM

99.5 %

78%

98.2 %

22%

Collection (Rs cr)

4,327.34

3,246.49

99.5 %

89%

Q2 FY19

Q3 FY19

Q4 FY19

% of AUM

Cumulative CE%

11%

89%

Jan'18 onwards

Jan'17 to Dec'17

98.0 %

11%

98.0%

99.5%

Back to pre demon levels

PAR Trends

35.8

26.6

14.4

19.1

15.3

11.4

6.7

5.9

4.4

5.4

5.0

4.1

3.6

3.4

2.9

Mar'17

Sep'17

PAR 1%

Mar'18

PAR 30%

PAR 90%

Sep'18

Mar'19

Strong Liquidity and ALM

Strong Liquidity Position to Sustain Growth Amount raised in last 7 days of Mar’19: Rs. 618 crores

Benefit of positive ALM continues

21.5

22.3

22.1

9 3 6 1

18.4

8 0 1 1

11.7

0 1 7

7 8 7

8.4

8.5

9.0

Mar'16

Mar'17

Mar'18

Mar'19

Liquidity (Rs. In crore)

FY16

FY17

FY18

FY19

Avg. maturity of Assets

Avg. maturity of Liabilities

A Difference in Way of Doing Business

Strong liquidity position

Amount In Cr

Static ALM as on 31st Mar 2019

Apr-19

May-19

Jun-19

Jul-19

Aug-19

Sep-19

Total

Inflows

Liquidity at the beginning of month*

1,639

1,764

1,900

1,914

1,883

1,975

Principal - Loan portfolio

Interest - Loan portfolio

Total (A)

Outflows

Principal repayments

Interest repayments

Total (B)

299

319

270

294

270

246

2,005

2,148

2,223

2,263

2,199

2,263

205

241

216

249

269

309

349

380

152

224

259

289

Cumulative Mismatch (A-B)

1,764

1,900

1,914

1,883

1,975

1,974

*Excluding margin money deposits Rs. ~323 crores lien with lenders and undrawn sanction in hand Rs. 1,256.25 crores as on 31st March 2019; differences due to round off

1,639

1,698

328

3,665

1,449

243

1,692

1,974

Improving Liability Profile

Diversified mix of funding Source of funds raised during the period

Large Lender Base 77 Active Lenders

Top 10 Funders

% Share as on 31-Mar-19

21.3%

5.4%

10.9%

24.9%

39.7%

1.4%

7.6%

13.6%

37.7%

37.5%

28.6%

6.4%

12.2%

19.3%

33.5%

39.6%

1.7% 7.5%

23.8%

27.5%

FY16

FY17

FY18

FY19

TL (Bank)

TL (Others)

NCD

ECB

Securitization/Assignment

NABARD

State Bank of India

IDFC First Bank Limited

Bandhan Bank Limited

HSBC

FMO Netherlands

SIDBI

Axis Bank Ltd

Bank of Baroda

MAS Financial Services Ltd

Total of Top 10 Lenders

14%

13%

58%

Dynamic Liability Profile Insulated from Capital Market Turbulence

Product-wise Mar’19

26%

18%

54%

Product-wise Mar’18

15%

21%

61%

Term Loan NCD

Assignment / Securitization

Commercial paper

ECB

Term Loan

NCD

ECB

Securitisation/Assignment

 No dependence on funding from commercial papers  NCDs are primarily subscribed by overseas investors (FPIs) 

~59% of borrowings are on fixed rates

Dynamic Liability Profile Insulated from Capital Market Turbulence

Category of Lender Mar’19

Category of Lender Mar’18

13%

12%

17%

12%

57%

13%

27%

47%

Banks Domestic Financial Institution Domestic Fund

NBFC Overseas Fund

Banks

NBFC

DFI

Overseas Fund

Domestic Fund

Low dependence on PSL funding

  No dependence on mutual funds to meet funding requirement

Strong Capitalization

Healthy CRAR to support Growth Opportunities

Tie-up with bank and renewed interest of banks for Direct Assignment are reducing the requirement of capital for growth

28.49%

21.18%

FY18

FY19

A Difference in the Way We Disburse

Growth While Focusing on Quality

Average monthly disbursement in (Rs. in crores)

383

444

397

422

419

446

771

658

FY18

FY19

Data on standalone basis

Key Standalone Financials

Gross Income (Rs. in crores)

1,373

977

Cost to Income Ratio (%)

53.4%

42.3%

59.5%

61.6%

51.3%

381

330

278

Q4 FY18

Q3 FY19

Q4 FY19

FY18

FY19

Q4FY18

Q3FY19

Q4FY19

FY18

FY19

NII and PAT (Rs. in crores)

NII

PAT

734

445

134

214

179

195

Opex to GLP (%)

7.1%

6.5%

6.1%

6.6%

6.3%

Q4FY18

Q3FY19

Q4FY19

FY18

FY19

Q4 FY18

Q3 FY19

Q4 FY19

FY18

FY19

Key Operation Metrics

Districts, States and Branches

Employees & Loan Officers

431

215

FY16

767

235

995

302

1,1631

340

FY17

FY18

Districts

States

FY19 Branches

2,684

3,918

FY16

4,481

6910 1,109

5,801

6,382

9004 1344

7,653

6,9262

11,8313 1325

10,419

FY17

FY18

FY19

Satin Employees

TSL Employees

Loan Officers

Clients (lacs)

Gross Loan Portfolio (Rs. in crore)

26.5 3.5

22.9

28.2 4.1

24.0

35.5 1.9

31.5

FY16

FY17

FY18

FY19

4,067 450

3,617

3,271

5,757 670

5,085

7,0683 604

6,374

FY16

FY17

FY18

FY19

SATIN

TSL

Note: (1) Data on Consolidated basis - On a standalone basis, the number of branches were 977 ; (2) Data on a consolidated basis - On a standalone basis the number of loan officers were 5,991 ; (3) Consolidated figures includes Satin Housing Finance Limited and Satin Finserv Ltd.

A Difference Visible in Key Financials

Steady growth seen in disbursement

Disbursement1 (Rs. in crore) & No. of Loans1 (‘000)

Satin JLG loans - Average Ticket Size (Rs.)

1,816

2,339

1,689

1,566

3,606

3,594

5,572

6,252

24,000

23,000

30,000

26,000

FY16

FY17

FY18

FY19

No. of Loans

Note: 1)

Standalone basis;

FY16

FY17

FY18

FY19

Credit Bureau Data for Screening Loan Applications

Hit Rate for all Products-Q4 FY19

CB Rejection Reason-Q4 FY19

13%

87%

No Hit

Hit

SCNL Guidelines

Limit

RBI Guidelines

MFIN Guidelines

Indebtedness Limit (INR)

Maximum No. of MFIs

80,000

Yes

34%

14%

52%

>2 MFI

Ticket Size

Defaulters

Over Indebtedness

Rejection Rate for all products is ~17% for Q4FY19

Note:  Rejections are done based on data derived from CB report  Rejection detail belongs to JLG customers

Re-engineered Future

Core operations (MFI Lending)

 Focus on Portfolio Quality  Aim to achieve per state exposure to <20% by 2020  Increase penetration through existing branches and by establishing new branches  Scale up BC operations with IndusInd Bank  Diversify revenue sources by increasing share of cross-sell income  Credit scores for individuals and groups  Cashless collections to reach >50% of total collections by Mar’20  Psychometric analysis to be rolled out across branches  Digital lending app to be instrumental in future growth

Allied Businesses through wholly owned subsidiaries

MSME

SHFL – Housing Finance

 Expand operations to new geographies –

Presently operating in Delhi NCR, Haryana, Punjab, MP and Maharashtra

 Focus on portfolio quality



Aspire to be a niche housing III finance player in tier II, and IV cities and towns Focus on portfolio quality

Business Correspondent  Entering into BC arrangement with a leading bank, will help in scaling operations

 Plan to broad base offerings besides

microfinance

Our Guidance

Guidance FY19

Actual FY19

Guidance FY20

260

201

165

On consolidated basis

PAT (Rs cr)

Annexure – Business Details – Consolidated

Particulars

AUM (Rs. cr)

On-Book AUM *

Securitization

Assignment

Business Correspondence - IBL

TSL - Business Correspondence

SHFL - Housing Finance

SFL

AUM Mix (Rs. cr)

MFI Lending

Product Financing

MSME

Business Correspondence - IndusInd Bank

TSL - Business Correspondence

SHFL - Housing Finance

SFL

No. of branches

SCNL

TSL

SHFL

SFL

Q4 FY19

7,068

4,459

429

1,281

633

604

7,068

5,473

261

633

604

1,163

977

180

Q4FY18

5,757

4,303

773

670

5,757

5,010

670

995

809

184

*includes securitization, differences due to rounding off

YoY%

22.8%

3.6%

-44.5%

-9.8%

22.8%

9.2%

249.7%

-9.8%

16.9%

20.8%

-2.2%

150.0%

Q3FY19

6,208

4,293

446

889

407

573

6,208

5,005

171

407

573

1,118

937

178

QoQ%

13.9%

3.9%

-3.9%

44.1%

55.4%

5.4%

73.7%

13.9%

9.3%

0.9%

52.6%

55.4%

5.4%

73.7%

4.0%

4.3%

1.1%

66.7%

Annexure – Business Details – Consolidated

Particulars

No. of Employees

SCNL

TSL

SHFL

SFL

No. of Loan Officers

SCNL

TSL

SHFL

SFL

No. of Active Clients

SCNL

TSL

SHFL

SFL

Average Ticket Size

MFI Lending (SCNL)

Product Financing (SCNL)

MSME (SCNL)

TSL

SHFL

SFL

Q4 FY19

11,831

10,419

1,325

6,959

5,991

922

3,547,128

3,149,607

396,887

630

26,000

3,666

4,000,000

28,400

1,453,000

28,700,000

Q4FY18

9,004

7,653

1,344

6,382

5,493

888

2,815,582

2,401,701

413,865

30,000

2,434

870,000

24,000

1,300,000

YoY%

31.4%

36.1%

-1.4%

9.0%

9.1%

3.8%

26.0%

31.1%

-4.1%

-13.3%

50.6%

359.8%

18.3%

11.8%

Q3FY19

11,940

10,538

1,335

6,874

5,937

906

3,283,501

2,877,090

406,042

369

25,000

2,884

2,260,000

26,900

1,380,000

QoQ%

-0.9%

-1.1%

-0.7%

23.9%

1.2%

0.9%

1.8%

48.4%

8.0%

9.5%

-2.3%

70.7%

4.0%

27.1%

77.0%

5.6%

5.3%

Annexure – P&L Statement – Consolidated (Quarterly)

Particulars (Rs cr)

Revenue

Interest and Fee Income

Net Gain On Derecognition of Financial Instruments

Treasury Income

Service Charges

Other Operating Income

Total Revenue

Expenses

Finance Cost

Employee Benefit Expenses

Credit Cost

Other Expenses

Depreciation and amortization expense

Total Expenses

Profit before tax

Tax expense

Profit after tax

Other comprehensive income net of taxes

Total comprehensive income

Q4 FY19

Q4 FY18

Q3 FY19

239

350

153

-12

263

257

295

145

238

284

400

167

284

116

YoY%

-7.0%

52.3%

64.0%

353.3%

18.6%

5.1%

53.3%

3.4%

-10.0%

10.7%

51.2%

54.5%

49.5%

116.3%

QoQ %

-15.9%

-30.1%

20.7%

21.8%

-12.5%

-8.6%

3.8%

-219.2%

53.6%

9.2%

-7.3%

-25.3%

-32.4%

-20.9%

14.7%

Annexure – P&L Statement – Consolidated (Full year)

Particulars (Rs cr)

Revenue

Interest and Fee Income

Net Gain On Derecognition of Financial Instruments

Treasury Income

Service Charges

Other Operating Income

Total Revenue

Expenses

Finance Cost

Employee Benefit Expenses

Credit Cost

Other Expenses

Depreciation and amortization expense

Total Expenses

Profit before tax

Tax expense

Profit after tax

Other comprehensive income net of taxes

Total comprehensive income

FY19

1,116

133

1,448

642

305

119

1,132

316

114

201

227

FY18

905

1,031

534

220

102

915

116

YoY %

23.3%

33.1%

68.8%

437.7%

40.4%

20.3%

38.6%

17.9%

17.4%

-15.1%

23.7%

172.6%

178.4%

169.4%

202.6%

Annexure - Operational Details – Standalone (Quarterly)

PARTICULARS

Gross AUM (Rs. cr)

No. of districts

No. of branches

No. of States of operation

No. of Employees

No. of Loan Officers

No. of Loan accounts

Disbursement during the period (Rs. cr)

No. of loans disbursed during the period

Q4 FY19

6,374

340

977

10,419

5,991

3,604,646

2,314

857,224

Q4 FY18

5,085

302

809

7,653

5,493

2,439,981

1,973

633,379

Q3 FY19

5,590

340

937

10,538

5,937

3,124,344

1,338

545,415

PARTICULARS

Q4 FY19

Q4 FY18

Q3 FY19

MFI Lending (excl. Prod. Financing & MSME)

Gross AUM (Rs. cr)

No. of branches

No. of Employees

No. of Loan Accounts

Disbursement during the period (Rs. cr)

No. of loans disbursed during the period (cr)

6,106

971

10,298

3,572,524

2,171

841,191

5,010

804

7,578

2,438,278

1,957

632,591

5,412

931

10,420

3,091,205

1255

512,745

YoY %

25.3%

12.6%

20.8%

22.2%

36.1%

9.1%

47.7%

17.3%

35.3%

YoY %

21.9%

20.8%

35.9%

46.5%

11.0%

33.0%

QoQ %

14.0%

0.0%

4.3%

-4.3%

-1.1%

0.9%

15.4%

72.9%

57.2%

QoQ %

12.8%

4.3%

-1.2%

15.6%

73.1%

64.1%

Annexure - Operational Details – Standalone (Quarterly)

PARTICULARS Productivity Metrics for MFI lending Gross AUM/ Branch (Rs. cr) Gross AUM/ Loan Officer (Rs. cr) Disbursement/ Branch (Rs. cr) Disbursement/ Loan Officer (Rs. cr) No. of Clients/ Branch No. of Clients/ Loan Officer Average Ticket Size (Rs.)

PARTICULARS

Product Financing

Gross AUM (Rs. cr)

No. of Loans Accounts

Disbursement during the period (Rs. cr)

No. of loans disbursed during the period

Ticket Size for the period (Rs.)

PARTICULARS MSME Gross AUM (Rs. cr) No. of branches No. of employees No. of Loans Accounts Disbursement during the period (Rs. cr) No. of loans disbursed during the period Average Ticket size

Q4 FY19

Q4 FY18

Q3 FY19

YoY %

QoQ %

6.3 1.0 2.2 0.4 3,211 520 26,000

6.2 0.9 2.4 0.4 2,986 437 30,000

5.8 0.9 1.3 0.2 3,055 479 25,000

Q4 FY19

Q4 FY18

Q3 FY19

6.5

30,374

5.7

15,657

3,666

1.3

732

0.18

581

2,434

6.5

31,677

9.3

32,341

2,884

Q4 FY19

Q4 FY18

Q3 FY19

261 34 121 1,748 136.8 342 4,000,000

75 29 75 971 16 207 870,000

171 33 118 1,447 74 329 2,260,000

0.9% 11.7% -8.1% 1.7% 7.5% 19.0% -13.3%

YoY %

383.8%

50.6%

YoY %

249.7% 17.2% 61.3% 80.0% 745.7% 65.2% 361.6%

8.1% 11.8% 66.0% 71.5% 5.1% 8.6% 4.0%

QoQ %

0.9%

-4.1%

-38.5%

-51.6%

27.1%

QoQ %

52.6% 3.0% 2.5% 20.8% 84.3% 4.0% 77.3%

Annexure - Operational Details – Standalone (Full year)

PARTICULARS

Gross AUM (Rs. cr)

No. of districts

No. of branches

No. of States of operation

No. of Employees

No. of Loan Officers

No. of Loan Accounts

Disbursement during the period (Rs. cr)

No. of loans disbursed during the period

MFI Lending (excl. Prod. Financing & MSME)

Gross AUM (Rs. cr)

No. of branches

No. of Employees

No. of Loan Accounts

Disbursement during the period (Rs. cr)

No. of loans disbursed during the period

Productivity Metrics for MFI Lending

Gross AUM/ Branch (Rs. Cr)

Gross AUM/ Loan Officer (Rs. cr)

Disbursement/ Branch (Rs. cr)

Disbursement/ Loan Officer (Rs. cr)

No. of Clients/ Branch

No. of Clients/ Loan Officer

Average Ticket Size (Rs.)

FY19

6,374

340

977

10,419

5,991

3,604,646

6,252

2,339,494

6,106

971

10,298

3,572,524

5,980

2,284,514

6.3

1.0

6.2

1.0

3,242

525

26,000

FY18

5,085

302

809

7,653

5,493

2,439,981

5,572

1,816,335

5,010

804

7,578

2,438,278 5,509

1,814,884

6.2

0.9

6.9

1.0

2,986

437

30,000

YoY %

25.4%

12.9%

20.8%

22.2%

36.1%

9.1%

47.7%

12.2%

28.8%

21.9%

20.8%

35.9%

46.5% 8.6%

25.9%

0.9%

11.7%

-10.1%

-0.5%

8.6%

20.1%

-13.3%

Annexure - Operational Details – Standalone (Full year)

PARTICULARS

Product Financing

Gross AUM (Rs. cr)

No. of Loans Accounts

Disbursement during the period (Rs. cr)

No. of loans disbursed during the period

Ticket Size for the period (Rs.)

MSME

Gross AUM (Rs. cr)

No. of branches

No. of employees

No. of Loans Accounts

Disbursement during the period (Rs. cr)

No. of loans disbursed during the period

Average Ticket size

FY19

6.5

30,374

18.2

53,901

3,381

261

121

1,748

253

1,045

FY18

0.1

732

0.2

732

2,432

971

719

2,420,000

870,000

YoY %

39.0%

249.7%

17.2%

61.3%

80.0%

306.7%

45.3%

178.2%

Annexure - Financial Performance – Standalone

Particulars (Rs cr)

Gross yield (1)

Financial Cost Ratio(2)

Net Interest Margin(3)

Operating Expense ratio(4)

Loan Loss Ratio(5)

RoA(6)

RoE(8)

Leverage (Total Debt(7) / Total Net Worth)

Cost to Income Ratio

Asset Quality

GNPA %

ECL as % of AUM

FY19

23.97%

11.15%

12.81%

6.57%

0.91%

3.01%

19.08%

4.55

51.27%

FY19

2.9

1.6

FY18

22.45%

12.22%

10.23%

6.30%

1.02%

1.49%

12.24%

5.78

61.56%

FY18

4.4

4.2

Q4 FY19

Q4 FY18

Q3 FY19

22.07%

10.10%

11.98%

7.12%

-0.81%

3.30%

19.97%

4.55

59.46%

23.66%

12.27%

11.39%

6.08%

-0.02%

2.78%

18.89%

5.78

53.40%

27.35%

11.95%

15.40%

6.51%

0.71%

4.17%

26.92%

5.05

42.29%

Q4 FY19

Q4 FY18

Q3 FY19

2.9

1.6

4.4

4.2

3.2

2.0

1. 2. 3. 4. 5. 6. 7. 8.

Gross Yield represents the ratio of total Income in the relevant period to the average AUM Financial Cost Ratio represents the ratio of interest Expense in the relevant period to the Average AUM Net Interest Margin represents the difference between the Gross Yield and the Financial Cost Ratio Operating Expenses Ratio represents the ratio of the Operating Expenses (expenses including depreciation but excluding Credit Cost and interest Expense) to the Average AUM Loon Loss Ratio represents the ratio of credit cost to the Average AUM RoA is annualized and represents ratio of PAT to the Average Total Assets Total Debt includes Securitization and preference shares considered as debt in accordance of IndAS RoE is annualized and represents PAT(Post Preference Dividend) to the average equity (i.e., net worth excluding preference share capital)

Annexure – P&L Statement– Standalone (Quarterly)

Particulars (Rs cr)

Revenue

Interest and Fee Income

Net Gain On Derecognition of Financial Instruments

Treasury Income

Service Charges

Other Operating Income

Total Revenue

Expenses

Finance Cost

Employee Benefit Expenses

Credit Cost

Other Expenses

Depreciation and amortization expense

Total Expenses

Profit before tax

Tax expense

Profit after tax

Other comprehensive income net of taxes

Total comprehensive income

Q4 FY19

Q4 FY18

Q3 FY19

237

330

151

-12

245

258

278

144

215

282

381

167

267

114

YoY%

-8.1%

50.2%

412.1%

18.9%

4.9%

54.3%

48.1%

-9.4%

14.0%

35.6%

37.0%

34.8%

96.2%

QoQ %

-15.9%

-30.1%

21.7%

68.6%

-727.8%

-13.4%

-9.4%

4.0%

-221.9%

71.0%

15.9%

-8.2%

-25.7%

-33.4%

-20.8%

15.1%

Annexure – P&L Statement – Standalone (Full year)

Particulars (Rs cr)

Revenue

Interest and Fee Income

Net Gain On Derecognition of Financial Instruments

Treasury Income

Service Charges

Other Operating Income

Total Revenue

Expenses

Finance Cost

Employee Benefit Expenses

Credit Cost

Other Expenses

Depreciation and amortization expense

Total Expenses

Profit before tax

Tax expense

Profit after tax

Other comprehensive income net of taxes

Total comprehensive income

FY19

1,113

133

1,373

639

265

100

1,067

306

111

195

220

FY18

905

977

532

189

850

127

YoY %

22.9%

32.4%

339.1%

40.6%

20.2%

40.0%

17.1%

41.6%

-19.5%

25.6%

141.4%

148.9%

137.3%

167.8%

Annexure - Operational Details – TSL

Particulars

Gross AUM (Rs. cr)

Disbursement during the period (Rs. Cr)

No. of loans disbursed during the period

No. of Active Customers

No. of Employees

No. of Loan Officers

No. of States of operation

No. of districts

No. of branches

No. of Regional Offices (RO)

Productivity Metrics

Gross AUM/ Branch (Rs. cr)

Gross AUM/ Loan Officer (Rs. cr)

Disbursement/ Branch (Rs. cr)

Disbursement/ Employee (Rs. cr)

No. of Clients/ Branch

No. of Clients/ Loan Officer

Average Ticket size (Rs.)

Q4 FY19

604

206

72,115

396,887

1,325

922

180

3.4

0.7

1.1

0.2

2,205

430

28,400

Q4 FY18

670

259

99,106

413,865

1,344

888

184

3.6

0.8

1.4

0.2

2,249

466

26,000

YoY %

-9.8%

-20.5%

-27.2%

-4.1%

-1.4%

3.8%

0.0%

-4.2%

-2.2%

14.3%

-7.8%

-13.1%

-18.7%

-19.4%

-2.0%

-7.6%

9.2%

Q3 FY19

573

152

54,023

406,042

1,335

906

103

178

3.2

0.6

0.9

0.1

2,281

448

27,800

QoQ %

5.4%

35.4%

33.5%

-2.3%

-0.7%

1.8%

0.0%

-11.7%

1.1%

0.0%

4.3%

3.6%

33.9%

36.5%

-3.3%

-4.0%

2.2%

Annexure - P&L Statement– TSL

Particulars (Rs cr)

Revenue

Total Revenue

Expenses

Finance Cost

Employee Benefit Expenses

Credit Cost

Other Expenses

Depreciation and amortization expense

Total Expenses

Profit before tax

Tax expense

Profit after tax

Other comprehensive income net of taxes

Total comprehensive income

Q4 FY19

Q4 FY18

Q3 FY19

16.4

1.1

8.7

2.0

2.3

0.1

14.2

2.2

1.0

1.2

-0.2

1.0

17.2

1.5

6.9

11.5

2.1

0.2

22.2

-5.0

-1.8

-3.2

-0.1

-3.3

16.9

0.4

9.0

1.9

3.0

0.3

14.6

2.3

0.7

1.7

0.2

1.8

YoY%

-4.9%

-24.5%

26.1%

-82.3%

6.6%

-38.1%

-36.0%

-142.7%

-153.0%

-136.9%

47.0%

-130.0%

QoQ %

-3.2%

210.3%

-3.3%

6.8%

-24.9%

-55.3%

-2.4%

-8.4%

40.6%

-28.4%

-203.7%

-45.5%

Annexure – P&L Statement – TSL

Particulars (Rs cr)

Revenue

Total Revenue

Expenses

Finance Cost

Employee Benefit Expenses

Credit Cost

Other Expenses

Depreciation and amortization expense

Total Expenses

Profit before tax

Tax expense

Profit after tax

Other comprehensive income net of taxes

Total comprehensive income

FY19

FY18

68.3

2.5

35.3

5.7

11.1

1.1

55.7

12.6

4.1

8.4

0.1

8.5

53.9

2.4

30.4

21.0

9.5

0.7

63.9

-10.1

-3.2

-6.8

0.1

-6.7

YoY %

26.8%

4.4%

16.2%

-72.7%

17.1%

60.8%

-12.8%

-224.6%

-228.4%

-222.8%

-225.5%

Annexure - Financial & Operational Details – SHFL

Particulars

Gross AUM (Rs. cr)

Average Ticket Size (Rs)

Disbursement (Rs. cr)

CRAR (%)

No. of Branches

No. of States

No. of Total Staff

No. of Loan Officers

Particulars

Gross AUM (Rs. cr)

Average Ticket Size (Rs)

Disbursement (Rs. cr)

CRAR (%)

No. of Branches

No. of States

No. of Total Staff

No. of Loan Officers

Q4FY19

Q3FY19

1,453,000

1,380,000

111.1%

94.65%

FY19

QoQ%

73.7%

5.3%

60.5%

17.4%

66.7%

0.0%

23.9%

48.4%

FY18

1,453,000

1,3000,000

111.10%

685.96%

Particulars (Rs cr)

Revenue

Interest and Fee Income

Treasury Income

Other income

Total Revenue

Expenses

Finance cost

Employee benefit expenses

Credit Cost

Other expenses

Depreciation and amortization expenses

Total Expenses

Profit before tax

Tax expense

Profit after tax

Other comprehensive income

Total comprehensive income

FY19

FY18

4.5

1.0

1.6

7.1

1.1

4.8

0.3

2.3

0.1

8.6

(1.5)

(0.3)

(1.2)

0.0

0.6

0.9

0.0

0.4

1.3

(0.7)

(0.2)

(0.5)

Annexure - Financial & Operational Details – SFL

Particulars

Gross AUM (Rs. cr)

Average Ticket Size (Rs)

Disbursment (Rs. cr)

No. of Loan Disbursed

No. of Branches

No. of States

No. of Total Staff

FY19

11.4

28,700,000

11.5

Particulars (Rs lacs)

Revenue

Interest and Fee Income

Treasury Income

Other income

Total Revenue

Expenses

Finance cost

Employee benefit expenses

Credit Cost

Other expenses

Depreciation and amortization expenses

Total Expenses

Profit before tax

Tax expense (DTA)

Profit after tax

Other comprehensive income

Total comprehensive income

FY19

10.34

0.04

10.38

0.36

48.53

4.56

42.28

95.73

(85.35)

(22.18)

(63.17)

Industry Performance

11,747

1 lacs

2.94 crores

Branch network, up 34% Y-o-Y

employee base, up 38% Y-o-Y

Clients, up 34% Y-o-Y

3.60 crores

Loan accounts, up 35% Y-o-Y

Rs.29,733

60,549 crores

Average ticket size, up 14% Y-o-Y

AUM, up 52% YoY

Source: MFIN Micrometer December 2018, Data is for Microfinance companies

Industry Performance

 

As of December 31st 2018, GLP of NBFC-MFIs was estimated at Rs. 60,549 crores Top 10 MFIs, in terms of loan amount disbursed, accounted for 78% of total industry disbursements

Loan Portfolio (Rs. in crore)

Breakup of GLP geography (31st Dec 2018)

Breakup of GLP purpose (31st Dec 2018)

56,785

11,129

60,549

15,705

45,656

44,843

39,917

6,831

33,086

31-Dec-17

30-Sep-18

31-Dec-18

Balance sheet

Off-balance sheet

Gross

Source: MFIN Micrometer December 2018

28%

72%

39%

57%

Rural

Urban

Agriculture/allied

Non-agriculture

Household finance

Industry - Growth Drivers

Government initiatives such as Micro Units Development and Refinance Agency (MUDRA), Pradhan Mantri Jan Dhan Yojana (PMJDY), etc

Government focus on digitisation

Massive growth potential of MSME and Business Correspondence (BC) sectors

Healthy growth in affordable housing finance segment

Increased penetration of technology in rural areas

Large unmet demand in the industry

Satin Surging Ahead, Faster than Industry

Industry is growing at a CAGR of ~26%

Satin maintained a healthy growth momentum

90,818

78,230

7,068

5,757

61,623

50,535

38,386

24,499

4,067

3,271

2,141

1,056

Mar'14 Mar'15 Mar'16 Mar'17 Mar'18

Dec'18

Industry GLP Rs cr

Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19

Satin GLP Rs cr

• •

Data for the industry is compiled from MFIN Micrometer reports and includes MFIs and SFBs Satin GLP is taken on consolidated basis

BC Operations of NBFC-MFIs

BC portfolio to witness healthy growth as overall banking credit growth recovers, MFI industry stabilizes and competition from SFBs reduces

  Micro-lending through BCs have attracted banks due to several benefits such as:

o Meeting of PSL targets without any direct involvement as loans are sourced by MFIs o o

Better resource utilisation for banks as rural branches get relieved from a significant part of low-ticket size micro-lending obligations Improved portfolio quality - NBFC-MFIs have expertise in micro-lending as part of their core portfolio, unlike banks who primarily focus on industrial and other higher ticket-size lending BCs model benefits NBFC MFIs as :



o MFIs can offer a much wider range of products - savings, credit, insurance, pension and remittances, leading to higher degree of client satisfaction, improved loyalty

and reduced default risks Savings history of clients to enable better credit appraisal and help in addressing multiple borrowing problem

o o MFIs can insulate themselves from political and operational risks, as they will fall under the purview of RBI, avoiding Government interference

Number of BC transactions to soar given lower cost of operations BC Transactions – Value (Rs. Bn) and Volume (Mn)

BC portfolio of NBFC-MFIs on the rise

BC Portfolio of NBFC – MFI (Rs. Bn)

Higher margins and attractive ROA makes BC business lucrative even for MFIs Estimated Costs and Ratios BC Business

23,858

5,720

14,911

4,014

9,037

2,768

5,316

1,909

33%

31% 22%

24%

25%

27%

32%

8.9%

5.6%

23%

12%

16.1

11.6

5.4

8.4

27.0

29.3

27.3

29.8

24.8

0.8 – 1.1 %

2 – 3 %

FY18P

FY19P

FY20P

FY21P

Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17EQ2FY17EQ3FY17EQ4FY17E

524

329

860

477

FY14

FY15

1,687

3,038

827

FY16

1,317

FY17E

No. of Transaction through BCs

Amount Transacted through BCs

BC Portfolio of NBFC – MFI

As % of total off-balance sheet portfolio

Gross Spread

Operating Cost

Credit Cost

Net Profit Margin

Small Ticket Housing Finance Companies (HFCs)

Key Growth Drivers include     

Thrust on low ticket housing with Government initiatives like Housing for All, Pradhan Mantri Awas Yojana, Infra status to affordable housing companies etc Revision of interest spread cap to 3.5% for Rural Housing Fund (RHF) Lower risk-weights and higher LTV for low ticket loans to boost disbursements LTV on loans between Rs 30-75L increased to 80% from 75% and risk weights reduced to 35% from 50% Urbanisation to increase at 2.0-2.5% CAGR between 2017-2022

Loan book – less than Rs. 2.5 Miilion

Rise in finance penetration to drive industry growth

Profitability of HFCs

9 3 5

5 1

41.2%

41.5%

42.2%

42.7%

43.2%

44.5%

44.8%

39.0%

12.3%

8.9%

6 8 7 6

2 8 7 5

5 0 8 7

4 6 5 4

3 1 0 5

7 9 9 3

8.2%

8.4%

8.9%

9.0%

9.2%

9.4%

9.7%

1.9%

0.7%

0.4%

1.8%

FY12E

FY13E

FY14E

FY15E

FY16E

FY17E

FY21P

FY12E

FY13E

FY14E

FY15E

FY16E

FY17E

FY18E

FY19P

UrbanPenetration

RuralPenetration

Yield on Advances

Cost of Borrowings

Operating Expenses

FeeIncome

CreditCosts

NetProfit

Micro, small and medium enterprise (MSME) finance

Share of and private banks to increase in MSMSE credit

NBFCs’ MSME credit to sustain impressive growth

Share of MSME Finance By Institutions

GLP (Rs. Bn)

5.3%

2.5%

6.4%

3.0%

24.8%

26.0%

7.2%

27.0%

2.9%

8.1%

2.9%

8.9%

3.0%

9.5%

3.0%

28.0%

28.9%

30.0%

67.4%

64.6%

63.0%

61.0%

59.2%

57.5%

7 9 5

6 4 7

4 2 4

1 2 8 1

5 0 5 1

4 0 2 1

8 4 9

FY16E

FY17E

FY18P

FY19P

FY20P

FY21P

FY15E

FY16E

FY17E

FY18P

FY19P

FY20P

FY21P

Public Sector Banks

Private Sector Banks

Foreign Banks

NBFCs

Southern, western states contributing to majority of MSME loan outstanding with banks Statewise FY17 GLP (Rs. Bn)

11%

38%

11%

Profitability of NBFC lending Profitability of NBFC SME Lending

16.5%

1.0%

9.3%

2.3%

2.7%

3.2%

Tamil Nadu

Maharasthra Gujarat

West Bengal

Karnataka

Haryana

Kerala

Punjab

Odisha

Chattisgarh MP

Others

Yield

FeeIncome

Cost ofFunds

Operating Expenses

CreditCosts

NetProfit

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. Dev Verma, Chief Operating Officer, was presented the ‘Leader of the Year’ Award  ‘Digital Innovation in Microfinance’ Award in 4th Eastern India Microfinance Summit

July 2018 Was featured in “Fortune The Next 500”

September 2018

Won the “Rural Champions of The Year” Award by ET Edge

November 2018 Won the “Excellence Award” by B2B Info Media

November 2018

Got sA social rating from Microfinanza

December 2018 Won the “SKOCH Award” for Digital Transformation

January 2019

Received “C1" grade in Code of Conduct Assessment from ICRA

Corporate Overview

HIGHLY PROFICIENT MANAGEMENT TEAM

Mr. HP Singh, Chairman and Managing Director

Mr. Jugal Kataria, Chief Financial Officer

Mr. Dev Verma, Chief Operating Officer

Mr. Sanjay Mahajan, Chief Information Officer

 Has over 3 decades of lending

experience

 Law graduate and a fellow of the

Institute of Chartered Accountants of India since 1984

 Cost Accountant, Chartered Accountant and Company Secretary along with 28+ years of experience in the field of accounts, finance, audit, taxation and compliance etc.

 First generation entrepreneur who founded and led Satin to its present status

 Worked with Apollo Tyres Limited,

Berger Paints (India) Limited before joining SCNL in 2000

 22+ years of experience in various

 Experience of 28+ years in

industries

 Worked with National Panasonic India Ltd, Citi Financial Consumer Finance India Ltd, Max Life Insurance and SKS Microfinance prior to joining SCNL

Information Technology across the Globe

 Previously worked with Bata International Group , Yum Restaurants, Procter & Gamble for India & Singapore, Gillete India Ltd. and Eicher Tractors Limited

Corporate Overview

HIGHLY PROFICIENT MANAGEMENT TEAM

Mr. Subir Roy Chowdhury, Chief Human Resource Officer

Mr. Partho Sengupta, Chief Process & Risk Officer

Mr. Amit Sharma, WTD & CEO, Satin Housing Finance Limited

Mr. Sanjeev Vij, WTD & CEO, Taraashna Services Limited

Mr. Sumit Mukherjee WTD & CEO, Satin Finserv Ltd

 Experience of 22+ years in

 Experience of 23+ years

HR functions

 Previously worked with Magma Fincorp, ICICI Securities Ltd, ICICI Prudential Life Insurance Company Ltd, Magma Leasing Ltd, Wacker Metroark Chemicals Ltd. and Kotak Securities.

 Previously worked with Alpic

Finance , HDFC Bank, ICICI bank Ltd , Barclays bank PLC , Bharath Matrimony.com and Jana Small Finance Bank.

 Alumina of IIM Ahmedabad,

ICWAI , PG In Taxation Laws from Punjab University Chandigarh.

 18+ years of experience;

 30+ years of experience

 Experience of 26+ years in

previously worked at Karvy, Religare Group, P.N.Vijay Financial Services, Abhipra Capital, Association of National Exchange Members of India

having previously worked at Tata Motor Finance Sols., Bajaj Finance, RBS, Citicorp Finance India Limited, Alpic Finance, 20th Century Finance etc.

 CS from ICSI, B.Com (Hons)

 Rank holder Chartered

and LLB from Delhi University, DIFC ( Dubai) Certification

Accountant, Bachelor of Commerce and Master of Commerce degrees from University of Delhi

the NBFC space, primarily in Sales and Business, with a versatile experience in Collections, Credit, Risk & Product Management.

 Previously worked with Magma Fincorp, CITI Fincorp, Ashok Leyland Finance, Barota Finance and Neo growth .

Key milestones: Crossed the USD 1 billion AUM mark

20 years to reach AUM of Rs 100 Cr; next 9 years to reach AUM of Rs. 7,000 Cr

Business Timeline

2015

2016

2017

2018

2019

Listing on NSE, BSE and CSE(2);

Received top MFI grading of MFI 1

Started MSME Lending in FY17; Acquired TSL in Sep’16

Reaches 27.1 lac active clients and gross AUM of Rs.4,882 cr by Dec’17;

SHFL commenced lending in Feb18; BC agreement with IndusInd Bank, reached gross AUM of Rs 5,757 cr by Mar’18

Received NBFC license for Satin Finserv Ltd for MSME business; reached AUM of 1 Billion USD; TSL became wholly owned subsidiary

2014

2013

2012

2011

2010

Reaches 8 lac active clients and gross AUM of Rs. 1,056 cr as on Mar’14;

Reaches 4.9 lac active clients & gross AUM of ~Rs. 580 cr as on Mar’13; Converts to NBFC- MFI in Nov’13; Received ‘MFI 2+’rating by CARE

Starts SHG bank linkage program in Rewa, MP; Receives 83% in microfinance COCA audit

Receives MIX Social Performance Reporting Award at Silver level

Reaches 1.7 lac active clients and gross AUM of Rs. 169 cr as on Mar’10

1990

1996

1998

2008

2009

Date of inception of Satin- October 16, 1990

IPO and listing on DSE, JSE and LSE(1)

Registers as NBFC with the RBI

Started JLG Model in May 2008

JLG business shows strong asset quality and large potential to scale up

Note: 1. Regional Stock Exchanges (DSE – Delhi Stock Exchange, JSE – Jaipur Stock Exchange, LSE- Ludhiana Stock Exchange); (2) BSE - BSE Limited, NSE - National Stock Exchange of India Limited, CSE - The Calcutta Stock Exchange Limited

Key milestones: Crossed the USD 1 billion AUM mark

20 years to reach AUM of Rs 100 Cr; next 8 years to reach AUM of Rs. 5,000 Cr

Fund Raising Timeline

2015

2016

2017

2018

2019

 Raised Rs. 41.5 cr from SBI FMO(3) (including warrants); Rs. 37.9 cr infused by Promoter Group

 Raised Rs. 250 cr via QIP in Oct’16; Exit of DMP in Jul'16 and ShoreCap in Aug’16

 In Apr’17, raised $10 mn from ADB(4) ; Investment of Rs. 35 cr by IDFC First Bank (then Capital First); Raised Rs. 150 cr via QIP in Oct’17

 Pref. Allotment:

 Exit of MV Mauritius

Equity funding by NMI (Rs 20 cr), and Kora Cap (Rs. 80 cr); Promoters invested via FCW (Rs 60 cr), IndusInd invested Rs (45 cr) via OCCRPS

2013

2012

2011

2010

2009

2008

 Raised Rs. 30 cr from DMP, ShoreCap and MV Mauritius Ltd; Rs. 11 cr infused by Promoter Group; Exit of Lok Capital

 Raised floating rate

 Raised Rs. 18 cr from

 Raised Rs. 2.5 cr

long term unsecured Tier II debt in Jul’14; Raised Rs. 28.4 cr of equity from NMI and $10 mn of debt from World Business Capital in the form of ECB

Danish Micro Finance Partners K/S (DMP) in Feb’11

from Lok Capital in Nov’10 and Rs. 21.8 cr from ShoreCap II in Dec’10; Rs. 7.7 cr infused by Promoter Group

 Raised Rs. 1.9 cr from Lok Capital

 First private equity

investment

 Raised Rs. 4.87 cr

from Lok Capital; Rs. 1 cr infused by Promoter Group

Note: (3) SBI FMO Emerging Asia Financial Sector Fund Pte. Limited; (4) ADB – Asian Development Bank

Making a Difference to the Community

As part of its CSR efforts, SCNL has been supporting Maharaja Agrasen Hospital Charitable Trust (MAHCT)

During FY 19, the Company contributed Rs. 85.75 lacs to the Trust for setting up of Maharaja Agrasen Medical University at Bahadurgarh (Jhajjar, Haryana)

The construction work of phase I and Phase II has been completed to the extent of 87.62% and 40.42% respectively

Making a Difference to the Community

Our financial services improve the lives of financially excluded clients and their families. We also engage in socially relevant services to reach out to and empower, the most disadvantaged sections of the society

Women Leadership Empowerment Workshops During FY19, we joined hands with Nordic Microfinance Initiative (NMI) to organise eight ‘Women Leadership Empowerment Workshops’

Health Check-up Camps We regularly organise health check-up camps along with campaigns focusing on health and hygiene. . On an average, around 300-350 villagers attended each of these camps

Flood Relief Camps We organised relief activities and distribution of ration to flood-hit villages in Assam and Bihar during the monsoons

Loan Products  Clean Energy Loans: In FY19,

we disbursed a total of 35,550 clean energy loans

 Water and Sanitation Loans: In FY19, we supported a total of 68,941 families in securing safe or sanitation facility at their homes

 Bicycle Loans: A total of

17,355 bicycle loans were disbursed to women clients in Assam and Bihar

Contact information

For any queries, please contact :

For media queries, please contact :

Aditi Singh Head – Capital Markets

Asleen Kaur PR & Corporate Communications

Satin Creditcare Network Limited

E: Aditi.singh@satincreditcare.com T: +91 124 4715 400 (Ext – 222)

E: asleen.kaur@satincreditcare.com T: +91 124 4715 400 (Ext – 224)

Thank You

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