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Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
Sanchetna Presentation
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Sanchetna Presentation

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  • 1. Introduction to Sanchetna Financial Services Pvt. Ltd. January 2009 This Document is CONFIDENTIAL and its circulation and use are RESTRICTED
  • 2. 1. Executive Summary 2. Mission & Vision 3. Management Team 4. Board 5. The Market 6. Expansion Strategy 7. The Clients 8. Loan Product 9. Systems & Processes 10. Projections
  • 3. Sanchetna Financial Services Private Limited (Sanchetna) is an NBFC started by young, dynamic, passionate & professionally qualified individuals having more than 21 years of microfinance experience. The mandate of the organization is to reach poor unbanked clients in some of the most poor states of India. The organisation was founded in June 2008 and the field operations started in October 2008 in Barabanki, Uttar Pradesh (UP). Sanchetna plans to move to other districts of UP and Uttarakhand in the next 3 years and to Bihar, Madhya Pradesh and Rajasthan in the next 5 years.   Key Metrics as on 30 th Nov 2009 1. Executive Summary 2. Mission & Vision 3. Management Team 4. Board 5. The Market 6. Expansion Strategy 7. The Client 8. Loan Product 9. Systems & Processes 10. Current & Projected Info Particulars Detail Date of formation 8 th June 2008 Areas of Operation Uttar Pradesh Portfolio outstanding Rs. 1,14,48,328 Number of members 1914 Number of branches 3 PAR (outstanding > 30 days) 0%
  • 4. <ul><li>MISSION STATEMENT </li></ul><ul><li>“ To increase the productive capacity of the underserved people by providing sustainable financial and market led business services, in a socially responsible manner” </li></ul><ul><li>VISION STATEMENT </li></ul><ul><li>“ To be the most preferred MFI to the stakeholders by reaching 3 lakhs clients by the year 2013” </li></ul>1. Executive Summary 2. Mission & Vision 3. Management Team 4. Board 5. The Market 6 Expansion Strategy 7. The Client 8. Loan Product 9. Systems & Processes 10. Current & Projected Info
  • 5. <ul><li>Lokesh Kumar Singh- Managing Partner:   </li></ul><ul><li>Over 5 years of professional experience in different fields. </li></ul><ul><li>Led operational expansion at SKS Microfinance Pvt. Ltd. (India’s largest NBFC-MFI) between 2004 and 2007 in 12 states including UP, MP, Rajasthan & Bihar </li></ul><ul><li>Built and managed a loan portfolio of over Rs. 200 crores with 100% repayment rate </li></ul><ul><li>Recruited and managed over 1200 staff from field assistants to senior management MBAs </li></ul><ul><li>Postgraduate Diploma in Rural Management from IRMA, 2004. </li></ul><ul><li>Niraj Pareek – Manager Human Resources: </li></ul><ul><li>Worked as HR Analyst at Accenture India in Bangalore, between 2005 & 2007. </li></ul><ul><li>As part of the core recruitment team, recruited 2000 staff/month, totaling 24,000 in two years </li></ul><ul><li>Recruited for over 150 different skill sets </li></ul><ul><li>Graduate in Business Management from Bangalore University </li></ul>1. Executive Summary 2. Mission & Vision 3. Management Team 4. Board 5. The Market 6. Expansion Strategy 7. The Client 8. Loan Product 9. Systems & Processes 10. Current & Projected Info
  • 6. <ul><li>Biswanath Swain – Manager Operations: </li></ul><ul><li>6 years of experience in microfinance operations in various geographies </li></ul><ul><li>Prior to Sanchetna, Biswanath worked as City Manager with Nirmaan Bharati (NB) (Nov ‘06 - June ’08) </li></ul><ul><li>Set up NB’s Varanasi operations acquiring 11,000 members, managing a loan portfolio of Rs. 8 crores & recruiting over 40 staff </li></ul><ul><li>Reporting to Mr. Mohammed Amin, CEO, Biswanath worked with Adhikar Microfinance (Bhubenshwar, Orissa) since inception in 2003 to 2006 </li></ul><ul><li>As Area Manager at Adhikar, helped acquire over 15,000 clients with loan portfolio of Rs. 2 crores & 99.9% repayment rate </li></ul><ul><li>Ashutosh Kumar Singh – Manager Information Technology: </li></ul><ul><li>9 years of experience in IT & microfinance in various geographies </li></ul><ul><li>Prior to Sanchetna, Ashutosh worked as Manager of IT at Bandhan between 2007 & 2008 reporting directly to Mr. Chandra Shekhar Ghosh </li></ul><ul><li>Implemented BRAC software across 40 branches & recruited over 40 IT personnel at Bandhan </li></ul><ul><li>Worked as Asst. Manager of IT at SKS between 2004 & 2007 during which branches grew from 17 to 900 </li></ul>1. Executive Summary 2. Mission & Vision 3. Management Team 4. Board 5. The Market 6. Expansion Strategy 7. The Client 8. Loan Product 9. Systems & Processes 10. Current & Projected Info
  • 7. <ul><li>Prabal K Sen – Professor - Economics, XLRI : Prof. Prabal Sen has served as a senior public sector banker for over two decades. He has offered consultancy services, among others, to the Ministry of Rural Development, Government of India. </li></ul><ul><li>Rajesh K Aithal – Assistant Professor - Marketing, IIML, Rajesh is Fellow-IRMA. Rajesh has close to four years of professional experience, in which three years are in sales and distribution and the remaining in teaching. </li></ul><ul><li>Mohammad Amin – CEO – Adhikar: He has vast experience in the field of development and has so far authored 4 books on Microfinance. Amin is also currently serving as Executive board member of Sanhati (Network of NGO) in Orissa. </li></ul><ul><li>Deepak Amin, co-founder & CEO, Covelix : Covelix is a Seattle based software consulting company. Prior to Covelix, Deepak also worked at Microsoft for many years as at Microsoft, Redmond-USA. Deepak is also an advisor to Grameen Foundation. </li></ul><ul><li>Sachi Shenoy, Innovations Manager – Unitus: - Sachi holds a B.A. in Economics and an M.B.A. in Finance and Entrepreneurship from the University of Chicago. Sachi has also worked at New York-based CDVCA, JP Morgan Chase, and Price Waterhouse LLP. </li></ul>1. Executive Summary 2. Mission & Vision 3. Management Team 4. Board 5. The Market 6. Expansion Strategy 7. The Client 8. Loan Product 9. Systems & Processes 10. Current & Projected Info
  • 8. <ul><li>Manoj Sharma: Deputy Program Director MicroSave India - Manoj is a development finance and SME specialist with more than 15 years of experience, and coordinates the India operations. During his time at SIDBI, Manoj was part of the SME financing team which negotiated a USD 225 million assistance package </li></ul><ul><li>Krishnan Rajaram - Krishnan has over 8 years of experience in the IT and financial services industry focused on institution building, change management and managing business operations. Krishnan is a Chartered Accountant, Certified Financial Planner and an alumnus of the Indian Institute of Management, Bangalore. He currently lives in London. </li></ul><ul><li>Krishna Tiwary – Lead Partner in Krishna Anurag and Company firm based in NOIDA. Providing advisory services to ICICI Bank, Power-Grid Corporation of India, and Sphere Partners. </li></ul>1. Executive Summary 2. Mission & Vision 3. Management Team 4. Board 5. The Market 6. Expansion Strategy 7. The Client 8. Loan Product 9. Systems & Processes 10. Current & Projected Info
  • 9. <ul><li>Western & Central UP </li></ul><ul><li>Population:4,49,87,00 </li></ul><ul><li>Maximum of 3 other MFIs operating in these areas </li></ul>Source: Sa-Dhan Microfinance Report 2008 Microfinance Outreach in Uttar Pradesh Clients outreach 533,041 Portfolio outstanding Rs. 347 crore Number of districts served 36 Number of poorest districts 15 1. Executive Summary 2. Mission & Vision 3. Management Team 4. Board 5. The Market 6. Expansion Strategy 7. The Client 8. Loan Product 9. Systems & Processes 10. Current & Projected Info
  • 10. <ul><li>UP, Uttarakhand, Rajasthan, Bihar & MP are the most populous states in India </li></ul><ul><li>They are also some of the poorest – almost 45% of India’s poor are in these states </li></ul><ul><li>In spite of the above facts, microfinance penetration in these states is amongst the lowest in India </li></ul>Source: Sa-Dhan Microfinance Report 2008 State Total Microfinance Clients Share of state to total clients State Population % share of population Number of Poor (2004-05) % share of poor Microfinance Penetration Index Microfinance Poverty Penetration Index Uttar Pradesh 3,613,118 6.10 180,990,000 16.43 59,003,000 19.56 0.37 0.31 Uttarakhand 337,625 0.60 9,123,000 0.83 3,596,000 1.19 0.69 0.48 Rajasthan 2,335,369 3.90 61,525,000 5.59 13,489,000 4.47 0.70 0.88 Bihar 1,455,981 2.50 89,776,000 8.15 36,915,000 12.24 0.30 0.20 Madhya Pradesh 1,312,668 2.20 65,605,000 5.96 24,968,000 8.28 0.37 0.27 Total 15.30 36.96 45.74 Comparison                 Andhra Pradesh 13,061,436 22.00 80,147,000 7.28 12,610,000 4.18 3.03 5.27 1. Executive Summary 2. Mission & Vision 3. Management Team 4. Board 5. The Market 6. Expansion Strategy 7. The Client 8. Loan Product 9. Systems & Processes 10. Current & Projected Info
  • 11. <ul><li>Given the aforesaid statistics, Sanchetna’s expansion strategy is as follows: </li></ul><ul><li>Expansion in UP </li></ul>Sanchetna’s footprint Sanchetna’s footprint June 2010 Sanchetna’s footprint Sanchetna’s footprint June 2011 June 2012 June 2009 Expansion to other states Districts in UP Competitors Sa-Dhan classification Barabanki Margadarshak, SKS, Yuva Poorest District Sitapur None Poorest District with no MFI Sahjahanpur None No MFI district Bareilly SKS District with MFI presence 1. Executive Summary 2. Mission & Vision 3. Management Team 4. Board 5. The Market 6. Expansion Strategy 7. The Client 8. Loan Product 9. Systems & Processes 10. Current & Projected Info
  • 12. <ul><li>Married females between 18 & 55 years old </li></ul><ul><li>Rural and semi urban areas </li></ul><ul><li>Clients must have 1-3 earning members per household </li></ul><ul><li>Economically active but belong to low income category </li></ul><ul><li>Most clients operate businesses with low stock volumes </li></ul><ul><li>Engage in multiple livelihood activities, each with differing seasonal & market fluctuations </li></ul>1. Executive Summary 2. Mission & Vision 3. Management Team 4. Board 5. The Market 6. Expansion Strategy 7. The Client 8. Loan Product 9. Systems & Processes 10. Current & Projected Info
  • 13. Loan Purpose Design Group Loans Group based loan for providing working capital Rs. 4,000 – 12,000 @ 15% flat 46 weeks repayment Increasing by Rs. 2000 every loan cycle Top Up Loans To meet additional fund requirements after successful repayment for 23 weeks Upto Rs 6,000 Increasing by Rs 1,000 every loan cycle Individual After minimum two loan cycles to individuals for enterprise development Rs. 30,000 and above Monthly repayment @ 24% per annum Loan cover insurance Cover the client and spouse against death for the loan amount @ Rs. 5.35/1000 Rs. Among the best deals in the microfinance space 1. Executive Summary 2. Mission & Vision 3. Management Team 4. Board 5. The Market 6. Expansion Strategy 7. The Client 8. Loan Product 9. Systems & Processes 10. Current & Projected Info
  • 14. SANCHETNA Integrated Microfinance Financial and Non-financial services OTHER MFIs IN THE REGION Minimalist Microfinance Missing Piece – Credit Financial Intermediation Working Capital Asset Purchase Social Intermediation Financial Literacy Leadership Co-operation Business Development Marketing Production Training Competitor Analysis Preparatory BDS Setting of Business Activity Capacity Building Support 1. Executive Summary 2. Mission & Vision 3. Management Team 4. Board 5. The Market 6. Expansion Strategy 7. The Client 8. Loan Product 9. Systems & Processes 10. Current & Projected Info
  • 15. 1. Executive Summary 2. Mission & Vision 3. Management Team 4. Board 5. The Market 6. Expansion Strategy 7. The Client 8. Loan Product 9. Systems & Processes 10. Current & Projected Info
  • 16.  
  • 17. 1. Executive Summary 2. Mission & Vision 3. Management Team 4. Board 5. The Market 6. Expansion Strategy 7. The Client 8. Loan Product 9. Systems & Processes 10. Current & Projected Info   Financial Year 2009-10 2010-11 2011-12 Outreach       Number of Active clients 3,701 25,485 92,340 Average Loan size outstanding 6,713 6,566 6,997 Loan Outstanding portfolio 24,843,384 167,343,835 646,130,764 Number Of Branches 4 16 32 Number of Loan Officers 18 92 251 Caseload per loan officer 206 277 368 Loan outstanding per loan officer 1,380,188 1,818,955 2,574,226 Financial Performance       Operational Expenses Ratio (wrt portfolio) 17 8 5 Net Income (after taxes and before grants) -1,436,327 5,698,792 53,724,356 Operational Sustainability 122% 164% 180% Total Liability 23,333,117 169,237,356 678,500,017 Total Equity 5,606,863 27,170,536 111,520,259 Debt:Equity 4 6 6 CAR 28 16 15
  • 18. Thank You! Please visit us @ www.sanchetnaindia.com

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