Chairman’s Message

At Satin Creditcare Network Limited (SCNL), we continue to evolve with changing times, relentlessly exploring prospects and growing our footprint. However, in the midst of all this transformation, we remain anchored to our core values, which have always held us in good stead for well over three decades. Just like most of our core customers, we have emerged from humble beginnings to being one of the leading and trusted Indian microfinance companies catering to rural India, empowering millions from the grassroots, who languish outside the periphery of traditional channels of financing.

Over the last two decades, India’s microfinance sector has witnessed remarkable growth. The rising demand for financial services from low-income households and micro-enterprises has propelled the industry on an upward trajectory. The adoption of digital technology has played a significant role in expanding its reach to financially underserved regions, fostering further growth.

The credit growth has been remarkable, with the Gross Loan Portfolio (GLP) reaching INR 3,48,339 Crores as of March 31, 2023, reflecting a growth rate of 22.0%. Despite the challenges posed by the pandemic and the implementation of a new regulatory framework, the microfinance industry has witnessed a shift in market share. This growth not only allows leading players in the microfinance segment to expand their presence, but it gives them the ability to succeed in a highly competitive environment.

The fiscal year 2022-23 been a remarkable year for us, marked by achievements and milestones that reflect our commitment to financial inclusion, responsible governance, and sustainable growth. We implemented strategic measures to ensure business continuity and profitability in a dynamic operating environment.

During the year, I am delighted to report that our annual revenue reached INR 1,762 Crores, showcasing a robust growth of 40% compared to the previous year. This achievement is a testament to our strategic focus, operational excellence, and the dedication of our team.

Our pre-provisioning operating profit has shown significant improvement, reaching INR 737 Crores, demonstrating our ability to enhance profitability while maintaining prudent risk management practices. The profit after tax (PAT) for the period stood at INR 264 Crores, further emphasizing our commitment to delivering value to our stakeholders.

In keeping with our efforts to escalate financial inclusion for the emancipation of bottom of pyramid, we opened 67 branches, added around 5,000 villages on a consolidated basis and one new state to our portfolio. We are proud to serve a customer base of 2.83 Million individuals through our extensive network of 1,287 branches spread across 405 districts as of March 2023.

During the year, we have demonstrated the resilience of our business model and our ability to deliver value to all stakeholders. As of March 31, 2023, we are proud to share that our Assets Under Management (AUM) reached an impressive milestone of crossing INR 9,000 Crores on a consolidated basis, indicating strong financial position and a sound trajectory of growth. In terms of disbursements, we have experienced a remarkable year on year growth of 67% amounting to INR 8,087 Crores, recording highest ever disbursement. This growth highlights our continuous efforts to reach underserved communities and provide them with access to much-needed financial services.

We have successfully managed risk through effective underwriting and risk management practices. The new portfolio, originating from July 2021 onwards, exhibited exceptional performance with low Portfolio at Risk (PAR) figures. PAR 1 was reported at 0.7%, while PAR 90 impressively remained at 0.3%, underscoring our commitment to maintaining a healthy loan portfolio.

The commendable asset quality and collection efficiency are a testament to the strength of our on-ground team and meticulous assessment methodology. Our Gross Non-Performing Assets (GNPA) ratio improved from 8.01% in March 2022 to 3.28% in March 2023, showcasing the effectiveness of our underwriting procedures and collection processes.

Through the collective efforts of our subsidiaries, we extend a spectrum of financial services that effectively bridge the gaps left by the formalized systems of finance and employment, leveraging our outreach in microfinance to offer Affordable Housing and retail MSME loans to clients who have completed more than two loan cycles with the Company and have higher credit requirements.

Having said that, I would like to share a key development that took place in the year 2023, which is the merger of our two wholly owned subsidiaries, Taraashna Financial Services Limited with Satin Finserv Limited. The merger got effective from 1st March 2023.

It is also important to note that our subsidiaries have delivered profitable growth during the fiscal year 2023 with Satin Housing Finance Limited achieving AUM of INR 505 Crores, representing an impressive year-on year growth of 59% and Satin Finserv Limited AUM stood at INR 682 Crores.

The fiscal year 2022-23 has etched a chapter of exceptional milestones and remarkable achievements, each one a testament to the trust, collaboration, and shared commitment of our stakeholders. As we chart our course toward the future, we are well on track to achieve our guided growth of 25%+ and RoA of 3.5% +. Our resolve remains high in upholding the tenets of financial inclusion, responsible governance, and lasting societal impact.

I thank all our people for believing in us. I am grateful to all our investors for backing us. I am inspired by all our clients for showing unflinching commitment and resilience.
Thanking You.

With warm regards,

HP Singh