Savings = Prosperity October 2011 C
Our Vision Sub-K makes day-to-day transactions accessible, affordable and trust-filled , to facilitate inclusive growth of the under-reached and create a more prosperous society C
What Sub-K Means (or why we are ‘ Sab kay liye ’ and ‘less than 1000’) • < 1000 m from the customer Accessibility • Cost of < 1000 paisa(Rs. 10) per Affordability transaction • Each transaction up to Rs. 1000 Adequacy • Each BCO to serve up to 1000 Outreach customers C
The Evolution BASIX Group / IGS (a Section 25 company of the group) since 2007 • Pioneer in FI; SHG-Bank linkages • Executed Project Bhamasha – a rapid scale-up; enrolled over 4 million people • Operated FI on a pilot scale with State Bank of India and Central Bank of India • Currently operating a successful Business Correspondent operation with KBS Bank • Awarded a pilot project in June 2010 with Syndicate Bank (leading Indian nationalized bank having 2494 branches; Global Business at Rs.243,436 crore as on June 2011) to do financial inclusion in 117 villages in and around Anantapur district in Andhra Pradesh Changes in RBI guidelines and the environment in 2010 • For-profit companies permitted entry as Business Correspondents • Government focus on Aadhaar (UID) and Swabhimaan • Formation of National Payments Corporation of India (NPCI) for interoperability in banking – brining in ability to for customer to transact at any bank’s BC outlet • Sub-K incorporated as an independent company offering full-spectrum services • Created and patented a robust transaction engine – ViTranSP – addressing issues in all current processes C
The Evolution - continued Sub-K : Incubation Phase (August 2010 – March 2011) • Built a scalable technology platform for multiple banking services extension • Designed and established ground processes – piloted in 3 districts in India • Established BC relationship with Ratnakar Bank (a scheduled commercial bank in India, in growth mode aiming to double its network by setting 100 more branches in next two years) • Continued service to IGS on Syndicate bank implementation • Sub-K cut its teeth operationally; 47,000 customers across 216 BCOs in 5 districts across 3 States • Inducted senior leadership team and tested systems, certified ISO 9001:2008 • Experimented with alternative revenue sharing and operating models Sub-K : Stabilization Phase (April 2011 - July 2011) • Syndicate Bank awarded contract for 172 additional villages based on success of pilot • Optimized business model for being a true banking services extension for partner banks • Launched mobile top-ups as an additional revenue for the BCSA • Expanded customer base to approximately 65,000 across 320 BCSAs as of June 30th • Signed up nationwide contract with Axis Bank • Currently pursuing relationships with 12 additional banks Sub-K launch – 1, August 2011 – 12 months from inception C
Sub- K’s Strategy • Bring banking and other services to the under-reached through a Sub-K Agent who connects them to the larger world using a simple mobile / Internet-based technology device • Why the strategy works: – There is a large a growing need in semi-urban and rural households to save… and easy banking access through Sub-K makes it possible – Sub-K appoints general stores as Agents. They are omnipresent so reach is large and a trust -relationship with customers is prebuilt – Transactions are on an online platform making them affordable . They are reconciled instantly using all-pervasive mobile connectivity and Sub- K’s patented technology, to the delight of service providers C
Cater to Financial Needs++ Saving Subsidy Facilitation Management Electronic Benefits Remittances Transfer* Sub-K Micro Utility Bill Insurance, Payments Pensions Under- Reached HH Mobile, Credit (Home Satellite Top- loans, Edu ups loans) * Government employment guarantee C and social payments, does electronically
With a Customer Centric Approach Universally Integrated • Subsidy payments BCOs Services • Welfare schemes • NREGA Payments EBT Payments Sub- K’s • Social Security goal is to payments • Other Social transfers serve the such as SGSY, Indira needs of a Awas Yojana, etc. rural Financial household Inclusion Sub-K Banking starting • Savings Banks with accounts Financial • RD, GCC, KCC, etc. Inclusion, EBTs and ultimately Non Banking • Mobile Top-ups UID • Utility Payments Services • Micro-Insurance Banks Govt. C 8
… Experienced Leadership Team Mr. Vijay Mahajan, Co-Founder Sub-K, Chairman BASIX Group • Vijay Mahajan is a social entrepreneur and Chairman of BASIX. He was also the Chairman of CGAP for 2010-11 • He started work in rural economic development in 1981.In 1983, he founded an NGO – Pradan. In 1996, realizing the need to attract mainstream financial resources, he conceptualised Basix, institution devoted solely to promoting rural livelihoods • He was a member of the Committee on Financial Sector Reforms, chaired by Raghuram Rajan and also of the C. Rangarajan Committee on Financial Inclusion. He also serves on the board of Insurance Regulatory Development Authority (“IRDA”), and the Micro Finance Development and Equity Fund • On numerous boards and advisor to several State Governments and Planning Commission of India • Author and industry icon; winner of numerous awards and recognitions Mr. Amit Mehta, Co-Founder Sub-K, Managing Director & CEO Sub-K • Head sales and Marketing – VAS , SDP, and Mobility at Tata Consultancy Services , In charge of promoting and developing the VAS solutions,, was also responsible for launching and promoting RFID based solutions for various industry segments • Founder and Conceptualizer , Intelligent Security Solutions SBU at Danlaw Technologies India Ltd • Vice President and Co founder of Bartronics India Limited, he was a part of the founding team at Bartronics and was responsible for identifying partners, building and promoting bar code based solutions • Chief Technology Officer, IRIS Smart Cards, the first Smart Card Manufacturing Company in India (later acquired by Bartronics India Ltd C
& Experienced Leadership Ratnakumar M Babla Sharan Sandeep Nath Dinesh Sarvodey Head, BC Acquisition Head, Marketing & Head, Projects & Quality ED & Head, Transactions • 20 years in Sales • & Operations Empowerment 11 years in quality & Distribution, • • 21 years of IT 22 years in Branding management Merchant Banking experience including & Marketing as (certified black belt), & Insurance as founder and head consulting company six-sigma, process CEO outsourcing of Mobility Solutions • • & VAS at TCS Engineer from IIT Graduate in Binu Raj Pillai • Varanasi; MBA from Computer Science & Engineer from BIT Head, Human Mesra IIM Kozhikode Statistics Resources • 18 years in HR Management and Visweswar V Girish Narkhede Ramesh Baswa Recruitment at Head, Bank Relations Airtel & TCS Head, Strategic Planning Head, Technology • 30 years as Senior • • 13 years in FI, 15 years in IT Banking Executive Telecom VAS, industry involving Suryanarayana S spearheading Software System Telecom and Technology Head, Accounts Products, Telecom Financial domains • Implementation and 25 years in • OSS, and Retail Electronics and CBS Integration Accounts, Internal domains Communications • B.Sc, B.Tech, AMIE, Audit and Finance • PG in Mathematics Engineer from Cert.Course IPR in BSFL and other from IIT Mumbai REC/NIT, Warangal (WIPO-Geneva) organizations C
Key Achievements YTD 1st Quarter For the Month Since Parameters Till Mar-2011 Apr – Jun Inception till Jul-2011 Aug-2011 Sep-2011 2011 Sep-2011 No of banks /telcos/service providers signed up 2+1 1 1 1 - 5+1 No of Districts Sub-K went active in during the 5 2 1 10 4 22 given period TRANSACTIONS No of BCSA appointed 253 85 11 43 36 428 No of BCSA transaction enabled 102 75 36 16 26 257 No of BCSA that have transacted within the given 51 period 123 144 166 172 200 No of Customer applications submitted to the 46,439 11,880 3,206 5,833 9,043 76,401 Bank No of Customers registered by Sub-K 40,372 8,773 7,505 4,125 2,753 63,528 No of Transaction enabled Customers 16,014 17,571 2,486 6,464 3,772 46,307 Total Deposits Rs. 587,682 Rs. 937,028 Rs. 820,343 Rs. 1,242,036 Rs. 1,536,700 Rs. 5,123,789 Total Withdrawals Rs. 239,252 Rs. 472,598 Rs. 340,688 Rs. 523,782 Rs. 743,650 Rs. 2,319,970 Amount of savings collected (INR) (Tot Deposits – Rs. 348,430 Tot Withdrawals) Rs. 464,430 Rs. 479,655 Rs. 718,254 Rs. 793,050 Rs. 2,803,819 Total Amount of banking transactions (INR) Rs. 826,934 Rs. 1,409,626 Rs. 1,161,031 Rs. 1,766,138 Rs. 2,280,350 Rs. 7,443,759 Mobile Top-Up Transactions (INR) Rs. 424,503 Rs. 224,411 Rs. 4,479 Rs. 45,452 Rs. 49,526 Rs. 748,371 C
Key Achievements YTD 1st Quarter For the Month Since Inception Parameters Till Mar-2011 Apr – Jun 2011 Jul-2011 Aug-2011 Sep-2011 till Sep-2011 FINANCIALS & HR Income for Sub-K (INR) Rs. 3,127,010 Rs. 2,501,320 Rs. 394,772 Rs. 1,366,274 Rs. 1,880,294 Rs. 9,290,670 Expenditure for Sub-K (INR) Rs. 10,837,522 Rs. 14,831,534 Rs. 4,325,151 Rs. 5,652,569 Rs. 4,963,000 Rs. 40,557,776 Net profit / (loss) for Sub- K (INR) Rs. -7,710,512 Rs. -12,330,214 Rs. -3,930,379 Rs. -4,286,295 Rs. -2,957,706 Rs. -31,267,106 CAPEX on Sub-K (INR) Rs. 646,732 Rs. 1,106,188 Rs. 12,991 Rs. 0 Rs. 23,023 Rs. 1,788,934 No of employees in Sub-K (Cumulative) 69 67 66 85 103 103 C
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