Chairman’s Message

The Company witnessed a steady progress during the FY 2019-20 with continued execution of its strategic objectives of sustainable growth and improving efficiencies. Even though the external environment turned increasingly volatile, we remained resilient on the back of strong fundamentals and steadfast leadership. The Indian economy continued to face headwinds in the first half of the year due to subdued private consumption and liquidity crisis which got severe in the second half and the unprecedented Covid-2019 outbreak. This resulted in complete halt to the economic activities with significant impact on the incomes and livelihood of people. However, constant support from the Government and Central banks in the form of fiscal stimulus packages and policy rate cuts and improved farm sector performance are expected to revive growth in the future.

According to the MFIN’s Micrometer report for the March 2020, the industry served ₹ 5.89 Crores unique borrowers, with total loan portfolio standing at ₹ 10.54 Crores, with operations across 36 states and union territories. All through 2019-20, we have significantly invested in developing state-of-the-art in-house digital platform, covering all the business processes i.e. credit underwriting, credit monitoring and collection, which will enable us to provide enhanced customer experience. We have successfully initiated centralized processes, KYC compliance, MFI scorecards and real-time credit bureau checks for greater productivity and supplemented security. During the year we have also implemented auto bank reconciliation using API and geotagged all our borrower’s houses. In another initiative, the Company has already started working on digitizing collections which is currently at 37% after reaching 100% cashless disbursements last year. During the lockdown period, we successfully launched a new ‘Customer Service App’ to increase digital and financial awareness among customers and helped them getting connected with brand ‘SATIN’.

Even amid challenging environment, we remained resilient underpinned by a strong digital edge, new client acquisitions, small ticket size loans, product financing and operating leverage. We are exploring opportunities in Southern India as well as in states like Rajasthan, Madhya Pradesh and Haryana. Comprehensively, the new avenues seem immensely promising, thus opening up several new vectors for the Company, going forward.

During the year 2019-20, the consolidated GLP stood at ₹ 8,174 Crores, while consolidated PAT was ₹ 155 Crores in 2019-20. Also, the collection efficiency level was reported at ~98.8%. All these figures hold the testimony of a strong and coherent operating efficiency and scalability. Business correspondent services under Taraashna Financial Services Limited reached an AUM of ₹ 704 Crores through 213 operating branches. Satin Housing Finance Limited reached an AUM of ₹ 139 Crores with 100% retail book comprising of 87% affordable housing loans and 13% of LAP. Focused on secured retail MSME lending, wholesale lending to small NBFC MFI, Satin Finserv Limited made good progress as well with an AUM of ₹ 111 Crores. We launched a new product called ‘Pragati Loan’ to rebuild borrowers’ income generation activities impacted due to Covid-2019 and Cyclone Amphan.

Our field employees are the mainstay of the Company who contribute in keeping up the consistent growth and thus being the reason behind SCNL’s success story. The monthly productivity evaluation done via ‘Udaan’, constantly helps in improving the proficiency. Also, we have been certified as ‘Great Place to Work’ for building and sustaining high performance culture, won ‘National Best Employer Brand’, ‘Dream Companies to Work For’ which results in a healthy growth rate and higher customer satisfaction. We are committed to be a responsible corporate that also emphasizes on building healthy and safe environment.

I would like to conclude by thanking my industrious team at SCNL, our esteemed customers, bankers, channel partners and all the other stakeholders for their unwavering support and we look forward to strengthening our relationship in the future.

Thanking You.

With warm regards,

H P Singh