Chairman’s Message

Dear Shareholders

The past year has seen more milestones crossed for Satin Creditcare – we began operations in Assam in Q1 and Orissa in Q2 of 2018, with the goal of expanding our presence across East India and today, we are the second largest microfinance NBFC-MFI in terms of Gross Loan Portfolio, a figure amounting to Rs.57,568 mn on consolidated basis. We also launched our Housing Finance subsidiary in early 2018 and see huge potential for this segment to grow and expand, offering clients a quality value added service with regard to their requirements for affordable housing.

During the demonetization phase, we were one of the most impacted MFIs with 70% of our portfolio being in the geographies that were hardest hit. However, the turnaround in collection has served to prove not only the true strength of the JLG business model but also showcased Satin Creditcare’s commitment to boost financial inclusion in India. Not only has the company successfully managed to overcome the effects of demonetization and return to profitability from Q2 and Q3 FY18, but have also managed to further build on that momentum with our PAT doubling in Q4 FY18, as compared to the previous quarter. The credit for this goes to our operations team, who has worked relentlessly to make this possible. And it shows in the numbers.

The overall collections on our new portfolio, disbursed from January 2017 onwards, stands at 98%; along with collection on our portfolio created via sourcing the new clients at 99.7%; the UP concentration being reduced from 34.7% to 29.7% as of March 2018. During FY2017-18, Satin Creditcare raised Rs.643 million in equity via preferential allotment from ADB, Rs.450 million equity from promoters, Rs.350 million TIER II via OCRPS from a large NBFC, Rs.1,500 million equity via QIP in October 2017, Rs.1,000 million equity via preferred allotment and Rs.450 million Tier II OCCRPS from IndusInd Bank.

As we take our first step towards becoming a fully digitized financial services firm, we are  set to go completely cashless on disbursements this financial year. In this endeavor, we are glad to be joined by New York-based investment firm Kora Management LP, which has recently picked up 4.6% equity stake in Satin Creditcare for an amount of Rs.800 mn, as they have a lot of on-ground experience in Fintech across Latin America and China.

Resolved to take on the competitive challenges that lie before us, we remain committed to our responsibility towards India’s urban and rural poor and how we can make their lives better, who lack access to funds from other financial institutions to break free from the clutches of poverty. With the demonetization impact behind us, we are hoping for a good year ahead, where we will continue to work hard for our shareholders.

Thanking You.

With warm regards,

H P Singh