Chairman’s Message

The year 2020-2021 was exceptional by all measures. Despite the various ups and downs, we were able to face and overcome all challenges by ‘Doing it RIGHT’. We navigated our path with a vision of driving financial inclusion. The right mix of strategies and principles helped us preserve our financial integrity and empower the underserved sections of the society.

The onset of the pandemic and subsequent lockdown had an adverse impact on communities, businesses, and economies alike. But the phased easing of the lockdown restrictions helped in improving the situation gradually. With a series of measures in the form of a stimulus package, lower interest rates, loan moratorium, TLTRO, to name a few, the government supported in mitigating the damage and injected essential liquidity which provided immediate relief to the pandemic hit sectors. The focus for SCNL has always been on ensuring the health and safety of our employees, business partners, clients, and communities. We implemented comprehensive safety standards by complying with all the measures prescribed by the authorities as well as seamlessly transitioned to remote working.

The pandemic presented new challenges for the MFI sector in the form of reduced loan disbursements, repayment, and collection efficiency. Despite adopting cashless disbursements, loan collections are still cash intensive. Difficulty in making loan repayments further led to a significant proportion of microfinance borrowers to avail loan moratorium. With the gradual easing of lockdown restrictions and improved employment situation, a recovery in collection efficiency and disbursements across the sector was witnessed.

We leveraged our years of experience and digital infrastructure to strengthen cash collection, digital payments and introduce customized loans. We maintained a consistent portfolio by tightening credit assessment criteria. We witnessed improved disbursement, collections and steady AUM, quarter-on-quarter. Disbursements reached ₹ 2,376 Crores during Q4 2021 closer to the pre-COVID levels. Consolidated AUM stood at ₹ 8,379 Crores as on March 31, 2021, registering a growth of 2.5% year-on-year. Improved collection efficiency to 98% and 105% in December 2020 and March 2021, respectively.

On liquidity front, we maintained a comfortable position with a positive Asset-Liability Management. Our capital base continued being strong with a capital adequacy ratio of 25.3%. Additionally, we took proactive steps to augment our capital position by successfully raising ₹ 120 Crores (₹ 90 Crores already received during 2020-21 and remaining to be received by the second quarter of 2021-22) through Rights Issue of approximately 2 Crores partly paid equity shares in 2020-21. Out of this, we have successfully called approx. ₹ 90 Crores and balance ₹ 30 Crores will be called in 2021-22.

The technological integration across the board, is helping us reduce the overall turnaround time (TAT), providing real-time analytical data, enhancing productivity, and helping improve monitoring and control, in addition to other benefits. We successfully developed an in-house ‘Customer Service Application’ with user-friendly interface – a one-stop solution addressing customers’ post-loan requirements. Further, to facilitate easy repayment, we added digital payment alternative on our website and UPI 2.0 with an auto-debit option to scale up cashless collections. We also geo-tagged 92% of our clients’ homes for further control and centralized monitoring.

What makes me stop in my track and awe with disbelief is the sheer amount of courage and determination that each employee has showcased. They say unprecedented times require unprecedented efforts. I salute every Satin member who has worked tirelessly during this intense period of need. Assuring their safety and health is more important than ever now. During the year, we introduced COVID Mediclaim policy for all our employees. Through our ‘Satin Sahyog Policy’ we stood by our people, offering term life insurance, including pension, education assistance, job for family member and mediclaim cover for the entire family, as applicable. SCNL, once again, was identified and certified as a ‘Great Place to Work’, highlighting our continual investments in people-first and inclusive work culture. We were also featured among India’s Best Workplaces in BFSI 2021.

Despite such a dull and timid year, there has been a silver lining in the form of our own workplace, at Udyog Vihar, Gurugram, Haryana. The new distinguished landmark for us is representative of our commitment to the environment, with a very eco-friendly structure – solar panels, rainwater harvesting, sewage treatment plants, and radiant cooling, among others, being some of the marquee features.

Our sustainable business strategy ensures integration of Environment, Social and Governance (ESG) reporting practices across people, planet, and processes. Our social initiatives aim at empowering women through skill development, education, and health awareness. We also try mitigating environmental impact by financing clean energy loans, reducing our carbon footprint, and installing solar panels in our corporate office building. SCNL has been appreciated for its efforts and certified for excellence in clean energy finance. Our sustainable initiative, ‘Satin Carbon Program’, was eventually incorporated as a part of the UNFCCC’s Clean Development Program (CDM). We stepped up in the nation’s fight against pandemic by contributing ₹ 10 lakhs to the PM CARES Fund and ₹ 5 lakhs to the Assam State Health Department. We also donated masks, ration and hygiene kits across various states for taking care of our communities.

We are cautiously optimistic about 2021. SCNL, with its 30+ year heritage, will continue drawing strength from its robust customer base, digitized processes, thoughtful product portfolio, resilient business model and sound balance sheet.

I am deeply grateful to our people, valued customers, bankers, channel partners and other stakeholders for their continued faith in our Company. We are confident and positive on delivering sustainable value to all our stakeholders.

Thanking You.

With warm regards,

HP Singh