Icra Limited · NSE:ICRA
Icra — Investor Presentation (July 2022)
12 slides from Icra's investor presentation, July 2022
Slide 1: Micro Loan Securitisation Market
MICRO LOAN SECURITISATION MARKET Rising securitisation volumes for microfinance asset class signals return of investor confidence; rising share of upgrade in rated pools JULY 2022 1
Slide 2: Highlights
Highlights Securitisation of micro loans has a long track record with the share in overall securitisation volumes being in the range of 10-15%. However, post-pandemic, the share of micro loan securitisation had declined to 10% due to wariness around the asset quality in FY2021. Click to Provide Feed
Slide 3: Share of MFI loan securitisation dipped in FY2021 but bounce-back seen in FY2022
Share of MFI loan securitisation dipped in FY2021 but bounce-back seen in FY2022 Exhibit: Micro loan volume and share in overall securitisation market since Exhibit: Quarterly trend of micro loan volume and share for FY2022 + FY2017 Q1FY2023 36,000 16% 10,000 20% 27,000 12% 7,500 15% Rs. crore Rs. c
Slide 4: Shift towards DA seen with higher participation in Q4 FY2022
Shift towards DA seen with higher participation in Q4 FY2022 Exhibit: PTC vs DA market and number of participating entities since FY2017 Exhibit: PTC vs DA market and number of participating entities for FY2022 25,000 60 8,000 30 20,000 43 48 50 25 6,000 27 Rs crore 40 20 Rs crore 15,000 28 10,646 3
Slide 5: Securitisation to remain a key funding tool for NBFC-MFIs
Securitisation to remain a key funding tool for NBFC - MFIs Exhibit: Securitisation volumes and reliance on securitisation for funding 12,000 60.00% 10,000 50.00% 8,000 40.00% 6,000 30.00% 4,000 20.00% 2,000 10.00% - 0.00% Q4 FY2019 Q1 FY2020 Q2 FY2020 Q3 FY2020 Q4 FY2020 Q1 FY2021 Q2 FY2021 Q3 FY20
Slide 6: Limited downgrades seen in senior tranches
Limited downgrades seen in senior tranches Exhibit: Rating transition for senior tranche in ICRA-rated pools Matured Live 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Upgrade Downgrade Stable Source: ICRA Research ▪ ICRA has rated 504 micro pools since CY2010 and most MFI pools have a single tranche
Slide 7: Rising share of upgrades as improving collections and market outlook gives comfort
Rising share of upgrades as improving collections and market outlook gives comfort Exhibit: Annual rating transaction in micro loan pools 80 100.00% 60 75.00% 40 50.00% 20 25.00% 0 0.00% FY2019 FY2020 FY2021 FY2022 Q1FY2023 Downgrade Reaffirm Upgrade Share of upgrades Source: ICRA Research ▪ Histori
Slide 8: Click to Provide Feedback
Click to Provide Feedback 88 www.icra.in
Slide 9: Analytical Contact Details
Analytical Contact Details Abhishek Dafria Samriddhi Chowdhary Gaurav Mashalkar Vice President & Vice President & Assistant Vice President & Group Head Co-Group Head Sector Head [email protected] [email protected] [email protected] +91 22 6114 3440 +91 22 611
Slide 10: Business Development/Media Contact Details
Business Development/Media Contact Details L. Shivakumar Jayanta Chatterjee Naznin Prodhani Executive Vice President Executive Vice President Head Media & Communications [email protected] [email protected] [email protected] +9122- 6114 3406 +9180 – 4332 6401 +91124 – 4545 860
Slide 11: Copyright, 2022 ICRA Limited. All Rights Reserved.
© Copyright, 2022 ICRA Limited. All Rights Reserved. All information contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable. Although reasonable care has been taken to ensure that the information herein is true, such information is provided 'as is' without
Slide 12: Thank You!
GY crs Thank You! ey