BFIL ANALYST MEET Sab se Sastha loan BFIL’s lowest interest rate benefits 50 lakh women in 1 lakh villages AUG 2016 BHARAT FINANCIAL INCLUSION LIMITED (Formerly known as ‘SKS Microfinance Limited’) BSE: 533228 ● NSE: BHARATFIN Corporate Identity No. L65999MH2003PLC250504 www.bfil.co.in This presentation is solely for viewing. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from BHARAT Financial Inclusion Limited.
CONTENTS Particulars Slide No. OPERATIONS 3 INFORMATION TECHNOLOGY & ORGANIZATION EXCELLENCE AND SERVICE QUALITY 8 INTERNAL AUDIT 12 RISK MANAGEMENT 14 HUMAN RESOURCES 16 MEDIUM TERM PLAN 18 CORE MANAGEMENT TEAM 20 Figures rounded off to the nearest digit across the presentation. Figures and ratios have been regrouped wherever necessary. 2
OPERATIONS 3
BFIL USES GRAMEEN MODEL TO PROVIDE UNSECURED CREDIT AT THE DOORSTEP OF LOW INCOME HOUSEHOLDS Recruit Members Survey a village Conduct projection • Number of Households • meetings Political situation and • Lend only to women Communal sensitivity • Group of 5 • Road Accessibility • Lend • only for income Activities in Village generating activities • Number of MFI Lenders • Joint Liability • Weekly instalments • Primarily Non-Agri Deliver Doorstep Provide Training • CGT* and GRT* are service • conducted Conduct Centre • Group formation policy meetings at a common (avoid relatives and stay public location • closely) Centre meetings • Financial literacy training conducted between 7 on products, interest A.M to 10 A.M to avoid rates disturbance to work schedule 4 *CGT: Compulsory Group Training, GRT: Group Recognition Test, Loans are given primarily for non-agri activities
OUR RELENTLESS FOCUS ON OPERATING MODEL IS THE KEY DIFFERENTIATOR Parameter Status Women Customers 100% Group Lending - JLG 100% Grameen Operating Model Loans for Income generating activities 99% Rural customer base ~75% Loans for Non-Agri activities 92% We grew slower than sector in 6 out of top 10 states. Geographic Focus Nil exposure in top 3 SHG concentrated states. Growth Anatomy We remain rural focused (75%) while Industry growth Rural Focus is skewed towards urban (60%) Borrower growth higher than Ticket Size Growth 21% & 10% (3 yrs. CAGR) Rs. 15,024 (FY16) lowest in Industry Loan Offtake 314 (Highest in Industry). Present in No. of districts 210 out of 296 underbanked districts defined by RBI Extensive Reach* No. of customers 5.7 Mn (Highest in Industry) Average Vintage of Branches 7.1 Yrs 690 (Highest in Industry for Weekly model) Borrowers managed per Sangam Manager Efficiency* Lowest interest rate of 19.75% among global Interest rate Lowest Cost private sector MFI Producer 5 *As on 30 th June 2016
OPERATING MODEL VAILIDITY ESTABLISHED Collection efficiency of 97% during wind-down mode dispels ever greening myth INR crs Non-AP 3,942 Loan 3,526 Portfolio 2,706 2,101 1,635 1,320 1,229 1,185 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 1.9 million borrowers repaid loans Internal generation -- and not incremental debt -- without incremental lending aids prompt repayment in Millions MFI Industry non- AP Portfolio Outstanding (Rs Cr) No. of non-AP borrowers who repaid on-time 5.2 Oct’10 28,300 during this period No. of non-AP members who availed loans 3.3 June’12 14,600 during this period No. of non-AP members who didn’t receive any incremental credit from BFIL 1.9 during this period 6
LEVERAGING THE DISTRIBUTION STRENGTH Distribution Strength Defined framework Revenue opportunity FY16 • • Asset: 1.3%* Asset: 5% Medium Term plan • • Revenue: 3.8%* Revenue: 10% • • Earning: 9.3%* Earning: 15% GOVERNANCE MODEL DEFINING THE FRAMEWORK: Cumulative units facilitated^ (Lakhs) Mobile Phone 16 Product Price / value Perceived need vs Scale creates Solar Lamps definition equation 12 conspicuous price advantage consumption Bicycle 2 Sewing Machine 2 Credit Bureau check, Satisfaction, Performance No co-origination Bio-Mass Stove 0.7 Process & 4 weeks gap, Standard, focus Risk Max 2 cross sells Delivery Concentration risk Water Purifier 0.4 mgt. 0 10 20 7 * % contribution of Cross-sell, ^FY12 onwards
INFORMATION TECHNOLOGY & ORGANIZATION EXCELLENCE AND SERVICE QUALITY (OESQ) 8
PROCESS AND TECHNOLOGY EVOLUTION • Solution with Store/forward mode. Coupled • Platform ready to with Device mgt. build solutions on • 8,000 TABS rolled • New systems (Cross- -demand out in 4 months – sell/Member Helpline) Largest mobility • Elastic Cloud infra deployment • • In-house built solution Millions of • Configurable workflows Transactions/day Mobile/ eKYC / • • Integration On-demand Zero down time digital/ cashless • • Secured Reporting timelines transactions, GPS • Equipped Loan Loads of features for shrunk to hours based movement Officers with tablets productivity gains & tracking (SKS Smart TAB) Compliance adherence Leveraged Connectivity and rolled • Consortium of out CRM and ERP Network providers solutions for efficiency • gains. Real-time data • Visibility for Rolled out a robust & multi featured Operations and lending platform beginning (SKS Smart) productivity gains All branch connectivity with daily data receipt (1,215 remote locations) 2012 2014-15 2014 -15 2015 -16 2016 -17 9
OESQ*: MINIMIZING RISK, MAXIMIZING CUSTOMER SATISFACTION AND EFFICIENCIES • Best in class Inbound call center which services more than 50K inbound enquiries and service requests per month Maximizing customer • Out bound VOC^ program which connects to 10K clients per month for satisfaction through feedback and suggestions customer connect • Only MFI to have an Ombudsman who oversees the client protection framework • Paperless transactions through tablets • Moving from dual data entry to single data entry • Saving one man-day per week per person • Center meeting time reduction Maximizing Efficiencies • Distance travel optimization through digital route mapping (first phase of roll out in 56 branches) • Reduction in travel time • Improvement in Sangam Manager time utilization • Cashless disbursement into Bank accounts (first phase of roll out in 50 branches) • Meeting the maximum norms on KYC, data quality and credit bureau Minimizing risk compliances • Operational safeguards • Supervisory monitoring being tracked centrally • Checkers in branch ensuring 100% KYC compliance • Currently piloting Aadhaar biometric EKYC • To identify the client using biometrics • Instant loan approval • Further reduces center meeting time by 10 minute, Sangam Manager Pilot initiatives can handle one additional center per day • High quality KYC data for Credit Bureau enquiries • Resultant customer delight on instant approval and possibility of same day credit into bank account 10 * Organization Excellence and Service Quality, ^Voice of Customer
SETTING BENCHMARKS ON KYC AND CREDIT BUREAU COMPLIANCES • All enquiries are with either Voter ID or with Aadhaar which are two most reliable IDs for this segment (Maximum among the large MFIs, as Robust KYC norms per MFIN) • 100% loan clients have either Aadhaar (82%) or Voter ID (81%), 64% clients have both • Consider all lenders (incl. Banks BC portfolio, NBFCs, MFIs) for the 2 MFI criteria • Setting benchmarks in 100% bureau enquiries sent with 2 IDs: First in the industry (started in Oct’14) credit compliance • Weekly submission to all 4 bureaus (Equifax, Highmark, CIBIL, Experian) CB REJE JECTIONS S TREND CB Rejection % 57% of credit Mandatory enquiry with submission Aadhaar as primary KYC 28% 29% of 2 KYCs 22% 24% 22% 23% 25% 25% 25% 24% 24% 23% 18% 20% 19% 19% 21% 23% 23% 21% 14% 15% 80% of credit Limit of Rs 60K 9% 9% 9% enquiry with 8% 8% instituted Aadhaar as primary KYC 11
INTERNAL AUDIT 12
INTERNAL AUDIT PLAYS A CRITICAL ROLE IN ASSESSING PROCESS CONTROLS • 219 strong headcount • ISO 9001:2008 certified process Strengths • All branches are inspected monthly based on a 4 tier grading system • Grading linked to incentives/appraisals of field staff • Special audits viz. headcount, fixed assets verification, 100% document check etc. • Independent function Governance • Reports to the Audit Committee of the Board of Directors model • Head Office audit by KPMG Scope of Audit Statutory Document Adheren Requirement High Center Monitoring Fixed Client verification ce to s Client Risk Meeting process by Assets Audit area Frequency Acqui (KYC, Loan Process (Credit Visits items Proces supervisor verific sition utilization check / bureau, Fair * (Fraud s s ation^ etc.) Policies practices s etc.) etc.) √ √ √ √ √ √ √ √ √ IGL Branches Monthly Once in a Regional quarter, √ √ √ √ - - - - - Offices distributed monthly √ √ √ Head office Quarterly - - - - - - Note: * Approximately 30% of the clients are covered by Internal Audit in an year during the branch audits. Clients visited on a sample basis to check for Loan confirmations, Loan utilization (LUC) , arrears and awareness on Client Protection Principles (CPP) ^ Fixed Assets are verified on Annual basis 13
Recommend
More recommend
