As the trusted financial provider for millions of households, at Satin Creditcare Network Limited, we have cemented our status as the leading NBFC-MFI primarily serving rural India. We have relentlessly fortified our position by championing financial inclusion and fostering development in underserved communities. Over the past year, we have reinforced our commitment to excellence and dedication to fostering financial inclusion for women from low-income groups, empowering them to pursue their aspirations. This year has been characterized by more than just business growth; it has been defined by our determination to serve and succeed. We have significantly enhanced the quality of our services and expanded our reach to underserved communities across India, making a meaningful impact on countless lives. This year’s efforts were guided by a simple yet powerful theme: ‘Growing with Grit. Conquering with Capability.’ Throughout the year, we focused on expanding our services and refining our operations to better serve our clients. Our commitment to improving access to financial services in rural areas has helped us make a real difference in the lives of millions of households, demonstrating our role as a catalyst for positive change.
During 2023-24, SCNL achieved robust financial and operational milestones, underscoring our commitment to strategic growth and spearheading financial inclusion. Our consolidated Assets Under Management (AUM) escalated impressively to INR 11,850 Crores, marking a substantial 30% yearover-year (y-o-y) growth, driven by strong focus on new client additions and strategic expansion in new and existing geographies. This was further strengthened by our record yearly consolidated disbursement of INR 10,549 Crores, reflecting our deepened market penetration and enhanced service delivery. The addition of 6.3 Lakhs new customers on a consolidated basis in 2023-24 reflects the growing trust in our services and our expanding reach across India.
During the reporting year, we maintained a trend of healthy collection rates, while maintaining a superior asset quality. The on-book GNPA of the company stood at INR 198* Crores, representing 2.5%* of the on-book portfolio. As of March 31, 2024, we had an on-book provision of INR 164* Crores, i.e. 2.1% of our on-book portfolio, exceeding the RBI-mandated provision requirement of INR 148* Crores. Furthermore, the overall provision coverage ratio stood at 83%* as of March 31, 2024, a significant increase from the 64%* recorded in March 31, 2023. Despite facing challenges in our Punjab portfolio, where local issues affected our exposure totalling INR 369 Crores, we managed a commendable collection efficiency of 97% in the region. This not only demonstrates our robust risk management capabilities, but also our ability to maintain operational continuity in the face of adversities.
Our financial prowess was further highlighted by a significant 43% increase in consolidated net interest income, reaching INR 1,340 Crores for 2023-24. This surge was supported by an improved Net Interest Margin (NIM) of 12.8%, highlighting the effectiveness of our financial management strategies. It complements our solid financial performance, as evidenced by the significant leap in Profit After Tax (PAT) on a consolidated basis to INR 436 Crores. The profitability performance is a testament to our operational efficiencies and the effective implementation of strategic initiatives. Our financial foundation remains strong, supported by a well-capitalized balance sheet and a capital adequacy ratio of 27.7%* , ensuring our readiness for future expansions and market challenges. Our subsidiaries, Satin Housing Finance Limited (SHFL) and Satin Finserv Limited (SFL), played a pivotal role in diversifying our financial services, contributing significantly to our overall success. SHFL’s AUM, for instance, grew by 50% y-o-y to INR 756 Crores in 2023-24, whereas SFL’s MSME book grew by 45% YoY in the same period. This emphasizes our effective cross-sector integration and the synergistic benefits of our extended financial offerings in housing and MSME finance. These achievements not only reflect our operational excellence but also highlight our commitment to fostering economic empowerment across varied financial sectors. Moreover, the upgrade of our long-term credit rating to A (Stable) by ICRA from A- (Stable) reaffirms our strong risk management and sustained financial health. Both of our subsidiaries SHFL and SFL were assigned A- (stable) credit rating from ICRA. This year, we surpassed our financial targets across multiple key performance indicators, setting the stage for leveraging forthcoming opportunities. Our strategic initiatives are geared to sustain growth and enhance stakeholder value, ensuring that we continue to serve as a preferred financial ally for low-income households. This is particularly evident from the healthy proportion of first-cycle customers at 54%.
Way Forward
To navigate the constantly changing business landscape, we will continue to monitor emerging technologies and aim to adopt them early to gain a first-mover advantage. Our future strategies are firmly anchored in the bedrock of sustainability, digital empowerment, and strategic partnerships. These pillars illuminate our path ahead as we endeavour to orchestrate a profound metamorphosis in the lives of marginalized individuals and underserved communities.
The blueprint for our forthcoming endeavors involves offering our diversified offerings and strategically investing in uncharted territories. Our vision and capabilities are set to shape the trajectory of our industry in the coming years. Our goal is clear – to become the premier one-stop financial services provider, particularly in rural India.
Let us march onward, united by the aspiration to sculpt a future where economic empowerment knows no confines, and where every individual possesses the means to carve their own destiny.
I would like to extend my heartfelt gratitude to each and every one of you for your undying support. Thank you for your time and dedication. Together, let us pledge to nurture well-being, ensure safety, and make meaningful contributions to our nation and the global community. A promising future awaits us! Stay well, stay secure, and embrace the day ahead with optimism and determination.
Thank you for your continued support and trust in SCNL.
With warm regards,
Dr. HP Singh