small loan big dreams… - digamber finance

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

8

Branches 149

Total Active Loans

Loan Disbursements (Cr.)

250813

733.62

Gross Portfolio (Cr.) 726.83

Debt outstanding (Cr.)

FD Against Margin (Cr.)

476.42

63.90

NOF

103.25

RATIOS

CAR 19.84%

Current Ratio 1.71

Leverage (Adjusted) 4.66

Debt Equity (Adjusted) 2.64

OSS (%) 133.57%

OCR (%) 8.07%

TCR (%) 18.88%

About Business: March-2020

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 Audited

FY 17 FY 18 FY19 FY20

Loan Portfolio (On balance sheet) Rs in Cr 137.06 274.78 345.34 487.30

Loan Portfolio (Off balance sheet) Rs in Cr - - 69.70 238.45

Total Portfolio Rs in Cr 137.06 274.78 415.04 726.83

Disbursement Rs in Cr 193.03 268.56 432.08 733.62

Total Income Rs in Cr 27.01 53.95 83.00 143.99

PAT Rs in Cr 1.50 8.32 15.22 26.86

Net worth (including tier II) Rs in Cr 27.02 52.14 70.49 103.25

PROFITABILITY ANALYSIS


FY 17 FY 18 FY19 FY20

Total Income Rs in Cr 27.01 53.95 83.00 143.99

Operating expenses Rs in Cr 10.60 14.10 20.47 46.09

Finance Cost Rs in Cr 12.58 24.46 36.93 56.37


FY 17 FY 18 FY19 FY20

States No’s 5 5 6 8

Branches No’s 71 82 87 149

Employees No’s 397 563 905 1394

Loan officers No’s 288 389 674 976

Total Active borrowers No’s 91798 107449 174923 250813

New borrowers No’s 67613 83306 122400 191136


FY 17 FY 18 FY19 FY20

AUM per Branch Rs in lakh 193.04 335.10 477.06 487.81

AUM per loan officer Rs in lakh 47.59 70.64 61.58 74.47

AUM per Employee Rs in lakh 34.52 48.81 45.86 52.14

OPERATIONAL HIGHLIGHTS

ANALYSIS OF HIGHLIGHTS



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 Balance O/s Amount 31.03.2020

State Bank of India CC 60.00 60.00 33.12

Punjab National Bank CC 25.00 25.00 0.09

UCO Bank TL 47.50 47.50 28.65

Bank of Baroda TL 25.00 25.00 13.87

Indian Bank TL 55.00 55.00 40.73

Union Bank of India TL 60.00 60.00 44.23

KEY RATIOS

Particulars Audited Audited

FY17 FY 18 FY19 FY20

Operating self sufficiency % (OSS) 110.14 126.55 134.86 133.57

Operating cost Ratio % (on average of AUM) (OCR) 9.68 6.85 5.94 8.07

Total cost Ratio % (on average of AUM) (TCR) 22.40 20.70 17.84 18.88

Capital adequacy Ratio (CAR) 18.65% 18.47% 20.29% 19.84%

Adjusted leverage ratio 4.96 4.83 4.42 4.66

Adjt. Debt equity Ratio 0.99 2.39 2.51 2.64

Current Ratio 1.43 1.61 1.71 1.53

GROWTH IN OPERATIONAL TERMS

Particulars Unit Audited Audited

FY 17 FY 18 FY19 FY20

States No’s 5 5 6 8

District No’s 38 41 55 79

Branches No’s 71 82 87 149

No. of Active JLGs No’s 8730 14507 21350 34673

No. of active Borrowers No’s 91798 107449 174923 250813 Total Staff No’s 397 563 905 1394

The loan portfolio of DCL is fully diversified with concentration in 8 states as on March 31, 2020.The company has increased

penetration by way of increased branch network in Rajasthan, Madhya Pradesh, Haryana, Uttrakhand, Punjab, Himachal Pradesh

,Uttar Pradesh and Jammu Kashmir.



Andhra Bank TL 15.00 15.00 3.75

United Bank of India TL 10.00 10.00 9.82

Funding From Public sector banks (A)

297.50 297.50 174.26

Capital Small Finance Bank TL 16.00 16.00 9.57

IDFC First Bank Secured TL 87.00 87.00 43.33

Bandhan Bank TL 30.00 30.00 27.35

Funding From Private sector banks (B)

133.00 133.00 80.25

MAS financial Services Ltd TL 90.00 90.00 41.63

Muthoot Capital Services Ltd TL 20.00 20.00 12.88

Maanaveeya Development & Finance Private Limited TL 15.00 15.00 10.01

Hinduja Leyland Finance TL 48.00 48.00 31.27

Mahindra Finance Ltd. TL 10.00 5.00 1.13

Moneywise Financial Services TL 10.00 10.00 5.05

Avanse Financial Services Ltd. TL 7.50 7.50 1.40

SIDBI TL 60.00 60.00 55.77

MUDRA TL 10.00 10.00 6.79

Proud Securities & Credits Pvt Ltd TL 20.00 20.00 14.06

NABSAMRUDDHI Finance Limited TL 10.00 10.00 8.33

Hero FinCorp Limited TL 5.00 5.00 4.16

NABFINS Limited TL 10.00 10.00 9.22

NABKISAN Finance Limited TL 20.00 20.00 20.21

Funding from FIs-(C)

335.50 330.50 221.91

Total funding (Banks & FIs) (A+B+C)

766.00 761.00 476.42

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 and MAS shall

be discounted by 20% for calculation of CRAR in terms of RBI Guidelines in FY20.

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 FY2020

A. Share Capital Rs in Cr 4.89 6.31 8.08 8.68 9.88

B. Reserve & Surplus Rs in Cr 5.24 9.96 22.51 39.80 72.35

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 82.23

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 11.00

F. Long Term Provision (Provision for Portfolio)

Rs in Cr 1.01 1.56 3.55 5.00 7.02

Tier II (D+E+F) Rs in Cr 4.01 9.56 21.55 22.00 21.02

Total Rs in Cr 14.49 27.02 52.14 70.49 103.25

Shareholding pattern:

Latest Shareholding Pattern

Status Share holding % of Share holding (Equity)

Director /Promoters 5590732 56.60%

Relatives 2195801 22.24%

Friends & others 2090397 21.16%

SIDBI (9% OCPS) 3000000

Total (Equity) 9876930

Total (Equity +OCPS) 12876930 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 200.07

PTC transaction 197.02



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.

OUR PRESENCE IN DIGITAL WORLD:-

We have an established online presence, as you can see on our website www.digamberfinance.com and Facebook, Instagram,

Twitter, Linkedin and other social media platform. We also developed our “App” (Available on play store as “Digamber –Finflux

Fieldforce”) which help us to reach the low density population area majorly focus on remote areas to providing financial service for

income generating activities at lower cost.

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.

http://www.digamberfinance.com/

small loan big dreams… - digamber finance

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