INVESTOR PRESENTATION Q4 FY20 COMPANY OVERVIEW 1 ABOUT CAPITAL - PowerPoint PPT Presentation

INVESTOR PRESENTATION Q4 FY20

COMPANY OVERVIEW 1

ABOUT CAPITAL TRUST STORY VISION ORIGINS MISSION Capital Trust pioneers the To become the first fully digital Capital Trust is a publicly listed To provide financial assistance digitalization of the rural and cashless, technology-enabled Systematically Important Non to India’s unbanked population financing model. lending model in rural India Banking Finance Company with using state of the art technology 35 years of rich legacy . and 100% digital processes While maintaining the robustness of a decade-old disciplined Initial promoters of the company lending model, CTL supplements include former Governor Reserve it with advanced technologies to Bank of India, Deputy Governor create a one-of-a-kind business Reserve Bank of India and the that finds the perfect balance Chief Justice of India between technology and traditional financing 2

PERFORMANCE MILESTONES ₹ 600Cr Co -Lending Partnership with a NBFC - Capital Digital Loans Initiative - Lending Partnership with IDFC Bank - ₹ 65Cr PE investment - ₹ 35Cr Promoter infusion through warrants - Acquisition of Microfinance subsidiary - Listing on NSE Ventured into MSME funding Started rural lending operations - Incorporation - Advisory to foreign banks - Listing on BSE 1985 2008 2012 2016 2019 2020 Company Position as on 31.03.2020 Shareholding: Public FY20 PBT: Employees: States: Portfolio: Clients: Branches: 15.68% 1923 ₹ 14 Cr 10 ₹ 471 Cr 155,584 241 FII Promoter 17.27% 66.17% 3

COVID-19 UPDATE 4

COVID-19 BUSINESS UPDATE With the Government of India declaring a National Lockdown on 25 March 2020 to tackle the global pandemic, update on key company parameters is provided below: • Have touched 66% collection efficiency in 2nd week of June • Up from 13% collection efficiency in April and 25% collection efficiency in May Collections * • All 241 branches open 99% 99% 100% 90% 80% 74% 66% 70% 60% 50% 40% 34% 25% 30% 20% 13% 10% 0% January 20 February 20 March 20 April 20 May 20 June 20 1st Week June 20 2nd Week 5 * Without factoring Moratorium given to clients

COVID-19 BUSINESS UPDATE • High Liquidity Buffers (actual and systematic) • ₹ 33Cr Opening Cash Balance in June Liquidity • Positive ALM • Business Correspondent Relationship with IDFC First Bank • Signed ₹600Cr Co -Lending Agreement with Poonawalla Finance during pandemic times (In ₹ Cr) 50 100% 47 46 45 90% 39 40 80% 36 33 35 70% 32 30 30 29 29 28 28 28 30 60% 27 26 25 24 25 50% 22 22 21 21 21 20 19 18 20 18 40% 17 15 14 13 15 30% 11 10 10 10 9 8 8 10 8 20% 5 5 10% 2 0 0% June July August September October November December January February March Due from Clients (Assuming No Moratorium)* Expected Collection Repayments (Assuming No Moratorium) Surplus Estimated Collection Efficiency 6 * Assuming no incremental disbursements

COVID-19 BUSINESS UPDATE: FUNDAMENTAL STRENGTHS • 47% Capital Adequacy • 1.76x Leverage Strong Solvency • Positive Asset Liability Position And Liquidity • Adequate Loan Pricing • Support from lenders in Moratorium (89% of lenders provided Moratorium 1.0) Inherently Strong • 73% of borrowers in Essential Services and majority linked to Rural Economy • 79% Client Base seasoned with over 12 Months on Board Customer Base • Early Mover into Rural Digital Collection since January 19 • Client Facing Application unique in MSME segment with direct client access Capital Digital Initiative • Enabled all forms of online payment modes: NACH + Payment Gateway • 28% portfolio with digital collection 7

COVID 19-BUSINESS UPDATE: TACTICAL PLANNING AND THOROUGH EXECUTION • 15 Lakh calls made to 1.5 Lakh clients using in-house developed Calling Application Constant Client Contact • Frequent messages, notifications and videos sent through Client Facing Application • Client profiling and collection follow up done • Increase of last mile field staff strength from 798 to 1266 for same client base Building Buffer Staff • Reduction of allocation per staff from 250 clients to 125 clients • Extensive daily monitoring on company, cluster and branch level. Covering areas of collection, staffing, frauds and liquidity Extensive Monitoring • Standardized reporting with daily Zoom meetings • Planned Branch Opening with proper social distancing norms 8

COVID-19 BUSINESS UPDATE: PLAN AHEAD • Provisioning Covid-19 Provisioning of 5% of overdue standard assets • Active client profiling exercise to identify portfolio risk and plan a response mix of collection Client Profiling strategy, new loans and provision buffers • Automated Engines Implementation of Automated Analytical Credit, Disbursement, Branch and Staff Engines Data Analytics and • Further strengthening of Alternative Data Analysis Business Intelligence 9

TARGET SEGMENT 10

SERVING THE UNSERVED Annual Income > ₹ 17Lakh Banks and Large NBFCs ₹ 10-17 Lakh ₹ 3.4-10 Lakh Capital Trust Limited ₹ 2 - 3.4 Lakh < ₹ 2 Lakh Capital Trust Microfinance Debt Shortfall in Microfinance + Micro of MSME: 11.1 Lac Crore** *NCAER-CMCR Annual Income Data 11 **IFC Report on MSMEs (Nov 2018)

FINANCIAL INCLUSION? Formal Income Income Proof Filing Taxes Debt 12

TARGET CLIENTELE Microfinance Through Capital Trust Microfinance, its 100% owned subsidiary Graduated from Microfinance 8% of the Microfinance clients graduate from the Microfinance sector each year and come and hit a wall New to Organized Credit Replacing traditional informal sources of MISSING financing (local moneylenders) which MIDDLE currently account for 84% of all financing to MSMEs ‘Micro’ of the MSME Clients who cannot be served by Microfinance institutions (owing to RBI guidelines) and are unable to be served by banks / large NBFCs (owing to lack of formal income documentation) 13

TYPICAL CLIENTELE Handloom Units Diary and Livestock Farmers General Stores Small Eateries Textile Stores Local Handicraft Producers Sewing Stores Hair Salons Utensil Stores 14

UNIQUE SELLING PROPOSITION 15

UNIQUE SELLING PROPOSITION Hybrid Fintech Model With Dual Credit Automated credit (QR scanning of Aadhaar card, immediate credit bureau check, algorithmic credit rule score) is supplemented with traditional safeguards of branch banking (physical verification of residence and business premise, cash flow analysis of business, telephonic verification) Revolutionary Digital Loans Pioneer in Cashless Transactions Spearheading digitalization in the rural sector, Among the first NBFCs in the sector to undertake 100% company offers 100% digital loans cashless disbursement since 2016 and conduct 100% cashless repayments for loans disbursed post Jan 2019 Extensive Rural Branch Network Data Analytics and Business Intelligence 241 branches in 63 districts and 10 states Use of credit engine, disbursement engine, staff engine encapsulating ‘feet on street’ model with perfect and portfolio risk monitoring engine to help understand Tech-Touch balance client creditworthiness before sanctioning of a loan and staff performance post disbursement Technology Quick Disbursement Paperless on-boarding process with instant in- Automated systems and processes from on-boarding to principle loan approval disbursement with no exceptions. Auto-generation of branch cash books through collation of issued Digital Receipts. First rural NBFC with client facing application 16

CAPITAL TRUST DIFFERENTIATORS Collection Disbursement Collection Credit Check Client Interface Documentation Method Cash Credit Bureau Joint Liability with Physical Cash / Digital Physical Paper Traditional MFI / MSME Funders Center Meeting Passbook Capital Digital Loans Initiative Physical Cash Flow 100% Digital Individual 100% Digital Automated through Client Facing (Since January 2019) Analysis Of Business Automated NACH E-Sign and E-NACH Application + Alternate Data + Psychometric Analysis + Credit Bureau 17

BUSINESS MODEL 18

BRANCH NETWORK 39 13 6 62 33 26 10 24 8 20 Branches: 241 Districts: 63 19 States: 10

EVOLUTION OF PRODUCTS With loans to over 800,000 clients, company has experience of lending to Micro Enterprises in Rural India since 2008 MOVE TO DIGITAL COLLECTION Group Loan Individual Loan DISBURSEMENT - One of the first rural NBFCs to start 100% cashless disbursement in 2015 Safety COLLECTION Efficiency - Pioneered online collection in rural lending - Loans given since January 2019 have online collection mode Cash Collection Digital Collection - Enabled all forms of online payment modes: NACH + Payment Gateway TRADITIONAL LENDING PLUS TECHNOLOGICAL INNOVATION Digital on-boarding through QR code scan Direct sourcing Algorithmic credit rule engine and bureau check Feet-on-street Digital receipt on repayment Physical cash flow credit verification Client facing mobile application Brick and mortar approach PRODUCT OPTIMIZATION 1. Small ticket size 2. Short tenure 3. Optimal EMI amount 4. Short Turn-Around-Time 20