small loan big dreams… - digamber finance · by providing them income generating loans and...

DIGAMBER CAPFIN LTD (RBI Registered Non-Banking Finance Company-Microfinance Institution)

Private & Confidential

Mission Statement

“Our motto is to empowering the no credit access poor with financial support at reasonable cost and in a transparent manner with the help of technology and aim

to achieve acceptable returns on our investments.”

Small loan big dreams…

Digamber |Finance

DIGAMBER CAPFIN LIMITED is a Rajasthan’s first regulated Non-Banking Financial Company (NBFC-MFI) (Company Registered in 1995 providing

financial and support services to the marginalized sections in society, particularly to poor rural and urban women. The creation of social value

includes poverty alleviation and the broader impact of improving livelihood opportunities through the provision of capital for micro enterprises, and

insurance for risk mitigation and consumption smoothing. Systematically, by providing them income generating loans and business development

services, DCL reaches out to help these women build productive microenterprises, thereby contributing to the development of sustainable

communities.

Focus of the company is on micro finance market only, and specially is on

Rural Market which is negligibly explored. Rural poor most of them are

landless or marginal land owners dependent upon traditional farming

practices. They are more dependent on Monsoon. In absence of Human

Capital (Education and relevant skills) their employability in non farming

jobs is very low.

ABOUT US:

Organization Name:

DIGAMBER CAPFIN LIMITED

Legal Structure: NBFC-MFI

Microfinance operations: Since 2009

Rating : BBB Outlook: Stable

Comprehensive MFI Grading: M2C1 from CARE

Date Of Registration: 17.04.1995

Date of Business Com. Certificate: 23.07.1996

Date of first Working: 14.10.1996

Methodology: On lending to Joint Liability

Groups (JLG),Individual

RAJIV JAIN

WHOLE TIME DIRECTOR

B. Sc, M.C.A

Mr. Rajiv Jain, the Executive Chairman of the Company, having 24 years of

progressive management experience in finance field. He has been associated

with the Company since inception as promoter & responsible for the overall

working of the Company and is instrumental in making strategic decisions for the

Company & his strategic direction leads to achieve SBI excellence award in

2010.

He is expert in assessing problem situations to identify causes, gather and

process relevant information, generate possible solutions, and make

recommendations and resolve the problem. His mastery in the mathematic

subject for which the institution get the benefits for designing of new finance

schemes and financial workflows.

MR. AMIT JAIN

WHOLE TIME DIRECTOR

B. Sc, LLB

Mr. Amit Jain, Co founder of the company has spent 24 years in the retail

finance. His willingness to be flexible, versatile and tolerant in a changing work

environment while maintaining effectiveness and efficiency, are the major

strength which helped the organization in completing 24 years successfully.

He mainly establishes and maintains positive working relationships with others,

both internally and externally, to achieve the goals of the organization. Further

his inquisitiveness and zeal towards adoption of new technology leads the

company towards digitalization & significant over the others. He is active

member of MIFOS Initiatives (USA) and acting as an advisor in developing

RuPie app “a brand of Wepact technologies P ltd” for developing world class

digital lending platform.

ABOUT FOUNDERS

NUMBERS

States 7

Branches 141

Total Active Loans

Loan Disbursements (Cr.)

208255

338.88

Gross Portfolio (Cr.) 556.39

Debt outstanding (Cr.)

FD Against Margin (Cr.)

397.89

46.57

NOF

Target Disbursements for

FY19-20

84.87

671.00

RATIOS

CAR 19.86%

Current Ratio 1.26

Leverage (Adjusted) 4.69

Debt Equity (Adjusted) 2.20

OSS (%) 142.70%

OCR (%) 4.40%

TCR (%) 10.50%

About Business: Sep-19

JOINT LIABILITY GROUP LOAN

INDIVIDUAL MICRO LOAN

This type of loan we offer only for women in groups for their Income generating activities. This is a first time relationship loan

The Group size will be minimum 5 and maximum 20 women

This is an individual unsecured loan which we give to

men and women both for their expansion in business.

Generally we offer to small shopkeepers who have some

inventories in their shops

Borrower Women only Both Members: Min:5 Max:20 Min:1 Max: 1 Amount Rs.15000-50000 Rs.60000-100000 Tenor 12-48 M/BiW/W 12-48 M/BiW/W Effective Rate* 22-26 % 22-26 % Processing fee 1.0 % + GST 2.0 % + GST Insurance Charge As Actual As Actual Collateral NIL NIL

ABOUT PRODUCTS



DETAILED INFORMATIONS

FINANCIAL HIGHLIGHTS

Particulars Units Audited Provisional

FY 17 FY 18 FY19 Q2'FY20

Loan Portfolio (On balance sheet) Rs in Cr 137.06 274.78 345.34 435.32

Loan Portfolio (Off balance sheet) Rs in Cr - - 69.70 121.07

Total Portfolio Rs in Cr 137.06 274.78 415.04 556.39

Disbursement Rs in Cr 193.03 268.56 432.08 338.88

Total Income Rs in Cr 27.01 53.95 83.00 64.22

PAT Rs in Cr 1.50 8.32 15.22 14.38

Net worth (including tier II) Rs in Cr 27.02 52.14 70.49 84.87

PROFITABILITY ANALYSIS


FY 17 FY 18 FY19 Q2'FY20

Total Income Rs in Cr 27.01 53.95 83.00 64.22

Operating expenses Rs in Cr 10.60 14.10 20.47 18.86

Finance Cost Rs in Cr 12.58 24.46 36.93 26.14


FY 17 FY 18 FY19 Q2'FY20

States No’s 5 5 6 7

Branches No’s 71 82 87 141

Employees No’s 397 563 905 1474

Loan officers No’s 288 389 674 1046

Total Active borrowers No’s 91798 107449 174923 208255

New borrowers No’s 67613 83306 122400 90424

Particulars Units Audited Pro. FY 17 FY 18 FY19 Q2'FY20

AUM per Branch Rs in lakh 193.04 335.10 477.06 394.60

AUM per loan officer Rs in lakh 47.59 70.64 61.58 53.19

AUM per Employee Rs in lakh 34.52 48.81 45.86 37.75

OPERATIONAL HIGHLIGHTS

ANALYSIS OF HIGHLIGHTS



GROWTH IN OPERATIONAL TERMS

EXPANDING RESOURCE PROFILE AND ABILITY TO RAISE FUNDS AT REGULAR INTERVALS:

The company has already started diversifying its resource base by way of raising long term debt and Tier II

capital in FY17. Further in FY19 company has started creating off balance sheet portfolio by way of Direct

Assignment and PTC Transaction. These borrowings, together with cash generated from operations, are used

for lending operations. The company’s excellent fund management ensured a very comfortable funding

position at all times, ably supporting the massive growth in business volumes during the year.

(Rs in Crs)

Name of Lender Facility Type

Amount Sanctioned

Amount Disbursed

O/s Amount 30.09.2019

State Bank of India CC 60.00 60.00 30.88

Punjab National Bank CC 25.00 25.00 14.29

UCO Bank TL 32.50 32.50 17.71

Bank of Baroda TL 25.00 25.00 18.14

Indian Bank TL 30.00 30.00 19.44

Union Bank of India TL 35.00 35.00 23.26

Andhra Bank TL 15.00 15.00 7.50

KEY RATIOS

Particulars Audited Provisional

FY17 FY 18 FY19 Q2'FY20

Operating self sufficiency % (OSS) 110.14 126.55 134.86 142.70 Operating cost Ratio % (on average of AUM) (OCR) 9.68 6.85 5.94 4.40 Total cost Ratio % (on average of AUM) (TCR) 22.40 20.70 17.84 10.50 Capital adequacy Ratio (CAR) 18.65% 18.47% 20.29% 19.86% Adjusted leverage ratio 4.96 4.83 4.42 4.69 Adjt. Debt equity Ratio 0.99 2.39 2.51 2.20 Current Ratio 1.43 1.61 1.71 1.26

Particulars Unit Audited Provisional

FY 17 FY 18 FY19 Q2'FY20

States No’s 5 5 6 7

District No’s 38 41 55 75

Branches No’s 71 82 87 141

No. of Active JLGs No’s 8730 14507 21350 26363

No. of active Borrowers No’s 91798 107449 174923 208255

Total Staff No’s 397 563 905 1474

The loan portfolio of DCL is fully diversified with concentration in 7 states as on Sep 30, 2019. The

company has increased penetration by way of increased branch network in Rajasthan, Madhya

Pradesh, Haryana, Uttarakhand, Punjab, Himachal Pradesh and Uttar Pradesh.



Funding From Public sector banks (A) 222.50 222.50 131.22

Capital Small Finance Bank TL 16.00 16.00 12.15

IDFC First Bank Secured TL 87.00 87.00 56.50

Bandhan Bank TL 30.00 20.00 20.23

Funding From Private sector banks (B) 133.00 123.00 88.88

MAS financial Services Ltd TL 80.00 80.00 48.06

Muthoot Capital Services Ltd TL 30.00 30.00 17.38

Maanaveeya Development & Finance Private Limited

TL 15.00 15.00 12.50

Hinduja Leyland Finance TL 30.00 30.00 20.60

Mahindra Finance Ltd. TL 10.00 5.00 2.04

Moneywise Financial Services TL 10.00 10.00 6.04

Centrum Financial Services Ltd. TL 10.00 10.00 5.00

Avanse Financial Services Ltd. TL 7.50 7.50 3.37

SIDBI TL 20.00 20.00 19.33

MUDRA TL 10.00 10.00 8.92

Proud Securities & Credits Pvt Ltd TL 20.00 20.00 18.55

NABSAMRUDDHI Finance Limited TL 10.00 10.00 10.00

Hero FinCorp Limited TL 5.00 5.00 5.00

Funding from FIs-(C) 257.50 252.50 176.79

Total funding (Banks & FIs) (A+B+C) 613.00 598.00 396.89

FUNDING IN THE FORM OF QUASI CAPITAL/SUB DEBT:

In order to make balance in Debt funding and owned fund, DCL has raised subordinate debt to the tune of

10.00 Cr with aggregate of Rs 15 Crs to support liquidity requirement taken as tier II capital as per RBI

Guideline from Mas finance and IDFC first bank repayable at the end of 84th month as per terms specified

in its loan documents. Normalizing for subordinate debt as equity at the end of the year, would further

strengthen the debt equity. However, Sub Debt from IDFC First Bank shall be discounted by 20% for

calculation of CRAR in terms of RBI Guidelines in FY19.

Apart from above, DCL has raised its share capital by subscribing Rs 3.00 Cr (including premium) in FY2019.

Further SIDBI has invested Rs.3 crore in the company by subscribing to 9% Optionally Convertible

Preference Shares in the FY 15. Additionally expected internal accruals forming part of tier I capital is higher

over previous year because of constant decline in operational cost.

Particulars Units FY 2016 FY 2017 FY 2018 FY 2019 Q2'FY20

A. Share Capital Rs in Cr 4.89 6.31 8.08 8.68 8.68

B. Reserve & Surplus Rs in Cr 5.24 9.96 22.51 39.80 54.19

C. Share Application

Money

Rs in Cr 0.34 1.19 0.00 0.00 0.00

Tier I (A+B+C) Rs in Cr 10.48 17.46 30.59 48.48 62.87

D. Optionally Convertible Preference Shares

Rs in Cr 3.00 3.00 3.00 3.00 3.00

E. Subordinate Debts Rs in Cr 0.00 5.00 15.00 14.00 14.00

F. Long Term Provision (Provision for Portfolio)

G.

Rs in Cr 1.01 1.56 3.55 5.00 5.00

Tier II (D+E+F) Rs in Cr 4.01 9.56 21.55 22.00 22.00

Total Rs in Cr 14.49 27.02 52.14 70.49 84.87



Shareholding pattern:

Latest Shareholding Pattern Status Share holding % of Share holding (Equity)

Director /Promoters 5576447 64.21%

Relatives 2195801 25.28%

Friends & others 912682 10.52%

SIDBI (9% OCPS) 3000000

Total (Equity) 8684930

Total (Equity +OCPS) 11684930 100.00%

NEW ACHIEVEMENT& PROGRESS TOWARDS TECHNOLOGY/ DIGITALIZATION:

UP GRADATION IN MFI GRADING: -

Comprehensive MFI grading of organization has upgraded as M2C1 (M Two C one) from M3C2 (M Three C

Two). Grading has been assigned by CARE raging agency. This signifies above high capacity of the MFI to

manage its operations in a sustainable manner and excellent performance on code of conduct dimensions.

GRADING RATIONAL:-

Micro finance

grading

DCL has been assigned “M2” as its performance grade which signifies ‘high’

capacity of the organization to carry out its activities in a sustainable manner. The

organization has sound management, good portfolio quality, standard operating

processes, diversified operations and management information system but it has a

relatively moderate size of operations.

Code of conduct

assessment grade

DCL has been assigned “C1” as its Code of Conduct Assessment Grade which

signifies ‘excellent’ performance on COCA dimensions.

UP GRADTION IN BANK LOAN RATING:-

Bank Loan Rating of the company has upgraded from “BBB-“; Outlook: Stable to “BBB”; Outlook: Stable.

FUNDING RECEIVED THROUGH DIRECT ASSIGNMENT AND SECURITIZATION:-

During 2018-19, the company has started securitization & direct assignment of its assets. With

securitization, the company ensures broad basing of the borrowing profile and reduced cost of funds as the

underlying assets rank for classification under priority sector lending by the Banks.

Transaction Type Fund Received(in Crores)

Direct Assignment 23.55

PTC transaction-1 56.71

PTC transaction-2 99.97

PARTNERSHIP WITH SIDBI FOR DIRECT CREDIT TO CLIENTS:-

Recently company has entered into partnership agreement with SIDBI under scheme of direct credit to clients

named "PRAYAAS Scheme". Scheme has been launched in support of RBI fund with intention to support micro

Finance. Only 7 MFls has been selected by SIDBI out of 110 MFls over PAN India, Digamber capfin ltd is one

of them.



It is significant to understand that only Digamber is a company out of those 7 MFls having asset size below Rs

500.00 Crs due to healthy portfolio created by its unique & digitalized operational procedures. We have

received our first sanction of Rs 25.00 Crs from SIDBI under this scheme wide sanction letter dated june 17,

2019.

Benefit to customers: Against the loans extended by MFls in between 22-26% ROJ. Customer will get fund @

14.06% PA.

Benefit of Company: Digamber will get fees @ 7.95% PA. Fund is available against security of 6% of facility

amount.

PROMOTION OF “JAN DHAN SCHEME” OF GOI:

DCL has given loan to the customers only those having banks accounts; we educate and help them in opening

of bank accounts by promoting the “JAN DHAN SCHEME” of GOI. Company has funded more than 2,00,000

bank accounts in just a less than two and half years. Today our customers may deposit their SBNs in their

bank accounts and give the EMI through bank transfers, cheque etc, also we will start piloting the collections

through NACH and some AADHAR based POS systems.

AWARDS AND ACCOLADES

(a) Eco-Technology Savvy NBFC-MFI Award– Winner under NBFC-MFI Category FROM SHRI SURESH

PRABHAKAR PRABHU, HON’BLE MINISTER OF RAILWAYS, Government of India conducted by

Chamber of Indian Micro, Small & Medium Enterprises (CIMSME)

(b) Company was given Certificate of Excellence (SBI Excellence Awards-2010) by SBI on 10.06.2010 for

their outstanding contribution in supporting JLGs in association with SBI.

small loan big dreams… - digamber finance · by providing them income generating loans and...

Documents