CreditAccess Grameen Ltd. · NSE:CREDITACC
CreditAccess Grameen — Shareholder Meeting (August 2023)
26 slides from CreditAccess Grameen's shareholder meeting presentation, Aug 25, 2023
Slide 1: CreditAccess Grameen Limited FY23 AGM Presentation
CreditAccess Grameen Limited FY23 AGM Presentation 25th August 2023 www.creditaccessgrameen.in
Slide 2: Disclaimer
Disclaimer By accessing this presentation, you agree to be bound by the following terms and conditions. This presentation (which may reflect some price-sensitive information in terms of SEBI regulations and Companies Act, 2013, as amended from time to time) has been prepared by CreditAccess Grameen
Slide 3: Discussion Summary
Discussion Summary Company Overview Share Price Performance Business Outlook www.creditaccessgrameen.in 3
Slide 4: Industry Leader: Expanding Scale & Footprint (1/2)
Industry Leader: Expanding Scale & Footprint (1/2) Solidifying Leadership Position with INR 21,031 Cr Portfolio A Loyal Borrower Base of 42.6 lakh GLP (INR Cr) Borrowers (‘000) CAGR 31% CAGR 15% 21,031 4,264 4,055 3,912 3,824 16,599 13,587 11,996 2,470 7,159 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 F
Slide 5: Industry Leader: Expanding Scale & Footprint (2/2)
Industry Leader: Expanding Scale & Footprint (2/2) Pan India Branch Network & Human Capital to Steer Future Direction Branches Loan Officers Employees CAGR 28% CAGR 19% CAGR 20% 1,786 1,635 11,490 16,759 10,770 15,667 1,393 1,424 14,496 14,399 9,688 9,559 5,768 8,064 670 FY19 FY20 FY21 FY22 FY23 FY1
Slide 6: Spread Across Length & Breadth of the Country
Spread Across Length & Breadth of the Country Our Presence as on Mar-23 Branch Network FY23 % Share FY22 % Share 14 States & 1 UT Karnataka 311 17.4% 308 18.8% 352 Districts 1,786 Branches Maharashtra 301 16.9% 285 17.4% Uttar Pradesh 75 Tamil Nadu 378 21.2% 382 23.4% Madhya Pradesh 148 8.3% 140 8.6
Slide 7: FY23 Performance Highlights
FY23 Performance Highlights NIM Cost/Income Ratio 11.6% 35.6% PPOP GLP: INR 21,031 Cr INR 1,506 Cr (+26.7% YoY) Weighted Avg. COB Opex/GLP Ratio (+39.8% YoY) 9.4% 4.7% ROA Capital Adequacy Ratio Total Equity 4.2% 23.6% INR 5,107 Cr PAT: INR 826 Cr (+134.0% YoY) ROE Tier 1 Ratio D/E Ratio 18.0% 22.7%
Slide 8: FY23 P&L Statement (PAT up 134.0% YoY)
FY23 P&L Statement (PAT up 134.0% YoY) Profit & Loss Statement (INR Cr) FY23 FY22 YoY% Interest Income 3,327.1 2,567.3 29.6% - Interest on Loans 3,277.4 2,533.0 29.4% - Income from Securitisation 0.1 0.6 - - Interest on Deposits with Banks and FIs 49.7 33.7 47.3% Income from Direct Assignment 119.7
Slide 9: FY23 Balance Sheet (Assets up 25.0% YoY)
FY23 Balance Sheet (Assets up 25.0% YoY) Balance Sheet (INR Cr) FY23 FY22 YoY% Cash & Other Bank Balances 1,436.4 1,761.4 -18.4% Investments 454.5 0.5 - Loans - (Net of Impairment Loss Allowance) 18,939.8 14,765.3 28.3% Loans - Securitised Assets 103.6 0.0 - Property, Plant and Equipment 32.1 31.8 0
Slide 10: Best-In-Class Cross-Cyclical Performance in the Last 7 Financial Years
Best-In-Class Cross-Cyclical Performance in the Last 7 Financial Years Consistently Delivering Best-In-Class Cross Cycle Return Metrics Cross-Cycle ROA (%) Cross-Cycle ROE (%) 5.1% 22.2% 5.0% 4.2% 18.0% 16.3% 3.6% Avg: 13.5% Avg: 3.3% 12.9% 12.3% 2.3% 2.2% 9.1% 0.9% 4.0% FY17 FY18 FY19 FY20 FY21 FY2
Slide 11: Strong Liability Franchise & Highest Standalone Rating in the Industry
Strong Liability Franchise & Highest Standalone Rating in the Industry Liability Mix - Institution / Instrument Wise (%) Rating Instrument Rating Agency Rating/Grading Ind-Ra AA- (Stable) Banks - NCD 1.2% NBFCs - TL Bank Facilities ICRA AA- (Stable) 3.4% CRISIL A+ (Positive) FIs - TL Banks - TL 8.5%
Slide 12: Liability Strategy – Progress In FY23
Liability Strategy – Progress In FY23 Significant Progress In Mobilisation Of Successful Completion of Maiden Foreign Funds Public NCD Issuance USD 245 Mn Foreign Funding Mobilized in FY23 INR 500 Cr Raised In Tranche I In Nov-22 • Overwhelming Response with subscription of 3.03x times • USD 20 Mn,
Slide 13: FY23: A Historic Year! Scaling New Heights! Setting New Benchmarks
FY23: A Historic Year ! Scaling New Heights ! Setting New Benchmarks Credit Rating USD 35 million Maiden Public Credit Rating Upgraded to Funding from NCD Issue Worth Upgraded to AA- (Stable) (Ind-Ra) U.S.A. DFC INR 500 crore AA- (Stable) (ICRA) Credit Rating Completion of Legal First MFI to cross O
Slide 14: FY23 Awards & Recognitions
FY23 Awards & Recognitions www.creditaccessgrameen.in 14
Slide 15: Discussion Summary
Discussion Summary Company Overview Share Price Performance Business Outlook www.creditaccessgrameen.in 15
Slide 16: Share Price Performance During FY23 (April-22 to March-23)
Share Price Performance During FY23 (April-22 to March-23) CA Grameen stock has outperformed both the indices during the financial year 2023 CA Grameen: +4% YoY Nifty 50: -2% YoY Nifty Financial Services: +3% YoY 1100 20000 19000 1000 18000 17000 900 16000 800 15000 Apr-22 May-22 Jun-22 Jul-22 Aug-2
Slide 17: Share Price Performance: Comparison With Peers During FY23
Share Price Performance: Comparison With Peers During FY23 CA Grameen stock has remained firm during the financial year 2023 200 Share price performance normalised to base of 100 155.4 150 134.3 127.7 123.4 118.6 100 104.3 101.5 61.1 50 Apr-22 May-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22
Slide 18: Shareholding Structure
Shareholding Structure Shareholding Pattern (%) – March 2023 Top 10 Institutional Investors – March 2023 Edelweiss Mutual Fund Government Pension Fund Global ICICI Prudential Life Insurance Others, 4.37 MF, AIF, Nippon Mutual Fund Insurance, 12.28 PGIM India Mutual Fund Promoter Group, 73.68 SBI Mut
Slide 19: Discussion Summary
Discussion Summary Company Overview Share Price Performance Business Outlook www.creditaccessgrameen.in 19
Slide 20: Where Do We Stand Today
Where Do We Stand Today 2 3 Continuous Technology Strong Parentage Of Enhancement To Drive CreditAccess India B.V. Efficiency & Scalability 1 4 Unique Business Model Integrating Risk High Customer & Our Key Differentiators Management In Employee Loyalty Every Operating Process 6 5 Access To Growth E
Slide 21: CA Grameen's Right to Win in Microfinance
CA Grameen’s Right to Win in Microfinance One Of The Lowest Loan Pricing In The Microfinance Industry Why Is CA Grameen Able To Offer One Of the Lowest Interest Rates To Our Customers Low LowCost Cost Of Borrowing Of Borrowing 150 – 200 bps belowcompetition 150 – 200 bps below competition Low Operat
Slide 22: Conducive MFI Regulatory Environment
Conducive MFI Regulatory Environment Uniform Regulations: Level Playing Field • Improved customer protection and consistent practices across all lenders Tighter Risk Control: Household Leverage • 50% FOIR ensures sufficient cushion to Key manage household expenses and savings Regulatory Tailwinds Pr
Slide 23: FY24 Performance Guidance: Key Indicators
FY24 Performance Guidance: Key Indicators Key Indicators FY24 Guidance GLP Growth % 24.0% - 25.0% NIM % 12.0% - 12.2% Cost-to-Income Ratio % 35% - 36% Credit Cost (Provisions + Write-offs) – 1.6% - 1.8% % of Avg. On-Book Loan Portfolio (non annualized) Return on Assets % 4.7% - 4.9% Return on Equity
Slide 24: What Makes Us Think Beyond Microfinance
What Makes Us Think Beyond Microfinance To Be The Preferred Financial Partner The Head Room Of 25% Assets Under Of Indian Households Lacking Non-microfinance As Provided By The Access To Formal Credit, Regulator, Provides Us The Opportunity Providing Convenient And Reliable Our To Diversify Our Lend
Slide 25: Aiming 20-25% CAGR To Cross INR 50,000 Crore GLP over Next 4-5 Years
Aiming 20-25% CAGR To Cross INR 50,000 Crore GLP over Next 4-5 Years • Microfinance: 85-90% • Non-Microfinance: 10-15% (60-65% secured book) • Growth: 8-10% Branch, 10-15% Customer, 20-25% GLP 1 Asset Strategy • Diversify across domestic & foreign sources • Diversify across institutional & retail so
Slide 26: Thank You!
Thank You Thank You! 26 www.creditaccessgrameen.in www.creditaccessgrameen.in
CreditAccess Grameen — Shareholder Meeting (August 2023) on 6ix