Satin Creditcare Network Limited

Deepankshi Singla
&
Mallika Yadav
 About the Company
Satin Creditcare Network Limited (SCNL) was formed in 1990 but, it commenced its
microfinance operation only in 2008.
VISION: To be a financial service power-house with one stop solution for the
financially excluded community.
MISSION: To provide financial assistance to a large number of households which are
excluded from the ambit of mainstream financial service providers so as to enhance their
livelihood and promote a productive environment.

SCNL is also listed on Delhi, Jaipur and Ludhiana stock exchanges

Presence in Bihar, Chandigarh, Delhi, Haryana, Jammu, Maharashtra, Madhya Pradesh,
.

More about the company

Presence in 13 states 2 states of Chhatisgarh and Jharkhand have been recently added during FY16

Satin is North Indias largest and Indias 5th largest MFI# in terms of AUM with presence across 13
states with 329 branches (Sept 15)

Has 2,828 employees, 329 branches and 1.4mn clients as on Sep 15

Field Operational Structure

.

Board Of Directors

Mr. H P Singh is the Chairman and Mr. Satvinder Singh is the Promotor and
Executive Director of the organization. Mr. Satvinder Singh is the Director of the
company.
It has six independent directors and five investor directors and there are five
nominee directors.
 Types of Models
Joint Self-
Liability Help
Group Groups
(JLG) (SHG)
Model Model

o Compulsory Group Training (CGT) by the field staff
to the group of clients
o Training Program - product details, rules and
regulations, policies & procedures and empowers
them to access financial and social services
o Till 31st March 2014, SCNL had promoted 1256
Women Self Help Groups (15072 members) to get
credit facilities from various banks.
o WSHG members have mobilizde more than Rs. 1
crore savings and deposited it in to various banks.

o Group Recognition Test (GRT) - Test understanding o 420 WSHG's have received credit facility from UBI
about SCNLs microfinance program and identify with an amount of more than Rs. 2.3 crores.
interest in sharing voluntary-joint-liability, credit-
absorption capacity

o Credit extension
 Products
Income generating loan i.e. Bi-weekly (14 days) and Two bi-weekly (28 days)

o It is offered under the JLG model

o No upfront payment involved

o The amounts range from Rs 10,000 to Rs 50, 000 increasing by a multiple of 5 for both the
types

o The moratorium period for the first is 14 days and for the second is 28 days

o The rate of return charged is 25-26%

o The tenure of the loan is 2 years for both the types of loans.

One year loan The amounts range from Rs 9,500 to Rs 13,500 and the interest rate charged is
from 22%-23%
Products
Social Performance Management
It is an effective translation of SCNLs social mission into practice. SPM department at
SCNL is working to serve its clients more effectively, improve overall operational
performance and report to external stakeholders.

Survey for Survey for

clients employees

o Impact Assessment o Employee satisfaction

o Need assessment survey
o Exit Client interviews
o Client satisfaction survey

Engage in both internal and external assessment

 Social Initiatives
Commitment towards both financial performance as well as social performance
Following initiatives have been taken in the past:

o Sensitizing and spreading awareness amongst clients and their families

o Social Awareness
o Health Camps
o Focused Group Discussions
o Client Satisfaction Survey
o Center Leader Workshop
o Uttrakhand Disaster Relief Camp
o Cancer Awareness Camp
o Financial Literacy Program

Grievance Redressal New Product Development

o Cashless collections in Bihar &
Gujarat (first state where entire
disbursement and collection will be
through e-money)
o Sparsh
o Wash Loans from Bihar and
o Atoot Bandhan Azamgarh in October, 2015

o Clean and Safe energy loan-

commitment towards clean energy in
October, 2015.
 Employees & Clients
Social & Environmental Policy: Identify effective social and environmental practices and
provide guidance to Satins staff on undertaking activities in an environmentally responsible
manner

Client Protection Principles:

o Appropriate Product Design and Delivery Channels
o Avoidance of Over-indebtedness
o Transparency
o Fair and Respectful Treatment of Clients
o Mechanisms for Complaints Resolution
o Privacy of Client Data

Non Coercive Recovery Practice: Grahaka devo bhaba

Strategy for Multiple Lending and Over-Indebtedness

o Educated and sensitized our operation staffs to check multiple lendings
o Check the loan cards and other relevant documents To verify the borrowing and
repayment behavior.
o Weed out Defaulters and multi loans
o Cross check the credibility of the clients from EQUIFAX
o Campaigning against multiple borrowing, motivational workshops for center leaders
 Satins Financials
The stock prices saw a 52 week low on 29 August , 2015 (88.5) and reached a highest
point on 23 October, 2015 (432.70). Current stock price is Rs 380 (NSE)

Equity Debt
Partners Partners

o Danish Microfinance Partners K/S o Indian Bank

o ShoreCap II Limited o IndusInd Bank
o M V Mauritius o ING Vysya Bank
o NMI Fund III KS o L&T Finance
o SBI-FMO Emerging Asia Financial Sector Fund o Kotak Mahindra Bank
(Managed by SBI Ven Capital Pte. Ltd.) o MAS Small Industries Development Bank of India
o Standard Chartered Bank
o State Bank of India
o The Ratnakar Bank Limited
o The South Indian Bank Limited
o Union Bank of Indi
o Yes Bank
 Satins Financials

Balance Sheet
 Satins Growth
Operational Highlights

Loan Profile

Geographical Growth Company Snapshot as on 31st August , 2015

Year FY- 2010 FY- 2011 FY- 2012 FY- 2013 FY- 2014 Particular's 2015 (Rs. In Lacs)

No of No. of Loan Clients 13,73,708

8 9 9 10 11
States No. of Active Clients 13,73,617
No of Total Branches 322
163 144 160 187 267
Branches
Total Cities / Towns / Territory 124

Total Villages 25,304

Portfolio Outstanding (Including Securitized
2,01,641.40
Portfolio & net of provision)
Total Disbursement for the period 1st April,
68,417.37
2015 to 31stAugust, 2015
 Awards & Recognition
o Iconic Name in Microfinance Award - Make in India Conclave Indian Realty Award &
International Business Awards in November, 2015

o SCNL received CARE MFI 1 (MFI One) grading - the top most category in MFIs grading

o SCNL scored 'Platinum' rating and an overall rating of **** i.e. 4 stars in the Impact Busine ss
Model Rating', conducted by GIIRS (Global Impact Investing Rating System.

o SCNL was awarded with the Silver MFI Award in 2011 MIX Social Performance Reporting.

o SCNL also participated in the Transparent Pricing Initiative in India and submitted its loan
product pricing data to MF Transparency for which it received a Seal of Transparency from
MF Transparency. This seal signifies SCNL's commitment to transparent pricing

o SCNL received scoring of 83% in Microfinance Code of Conduct Compliance Assessment

(COCA) from M2i Consulting in November, 2012 which is amongst best in the industry
 Success Story
Kashifa: Aged 36 years, Kashifa is a resident of Siyana, Hapur Region and lives with her
husband and 2 children. Kashifa used to own a small egg shop in her locality. However, the income
generated through this shop was not enough to provide adequate education to her 2 children. She
then came to SCNL and her loan for Rs.20,000 got sanctioned which she invested in her shop.
Today, Kashifas shop has expanded and she is a wholesaler of eggs. Her earnings have increased
and profits are good.

Sanju: Aged 30 years from Palwal region where she lives with her husband who is a farmer and a 3
year old son. Sanju got associated with SCNL when the financial status of her family was very low
and she wanted to help her husband. With the money contributed out to her by SCNL, Sanju bought
a Buffalo with her first credit. Since then she has taken two more loans and there has been no
looking back for Sanju who today has 3 buffalos and 1 cow and supplies milk to the local
milkman.
 Future Plans
o Raised Rs.1,500 crore debt in the financial year 2014-15 and the company is planning to bring in
Rs.2,300 crore in the next six months from various banks

o Planning to sell 10-11% stake and in return earn Rs.70 crore and an additional Rs.100 crore as
tier II capital

o Unitus Capital and IFMR Capital would advise Satin Creditcare on its fund raising plans

o Objective
70% growth in business and cross Rs 5,000 crore gross loan portfolio by next year

The company wants to make at least 80% of all its transaction cashless by March
next year (Cashless transactions were initiated after a pilot in Uttar Pradesh.)
 Role Play
Role play on how they carry out the process of
checking and ensuring that no customers gets two
loans . Those who have taken loan already from some
other place shouldnt get it.

Also how they treat their customers. They call them

behenji and are extremely polite and well behaved
with them.
Thank You