Sources

1) http://www.capitalmarket.com/Company-Information/Information/About-
Company/CreditAccess-Grameen-Ltd/37419
2) https://in.linkedin.com/in/udaya-kumar-hebbar-84b6a3b7
3) https://www.bloomberg.com/profile/person/18844472
4) https://www.hdfcsec.com/hsl.docs//Credit%20Access%20Grameen%20Limited%20IPO%20Note
-201808071226511901045.pdf

Opportunities

1)Expansion

2)

TThreats\

Slowdown

Competition: The rise of digital platforms and payment solutions may adversely impact the business
model and there may be disintermediation in the loan market by fintech companies:

Business is particularly vulnerable to interest rate risk, and volatility in interest rates could have a
material adverse effect on net interest income, net interest margin and financial performance: C
 Credit Access Grameen Limited

General Overview of Company

CreditAccess Grameen Limited was incorporated as a private limited company

with the name 'Sanni Collection Private Limited (SCPL)' on June 12, 1991 at
Calcutta, West Bengal, India. It is (formerly known as Grameen Koota Financial
Services Pvt. Ltd.) is a microfinance institution providing a wide range of financial
services to the rural poor and low-income households, particularly women. It is
registered with the Reserve Bank of India under the NBFC-MFI category. The
company provides loans primarily under the joint liability group (JLG) model. Its
primary focus is to provide income generation loans which comprised 87.02% of
its total JLG loan portfolio, as of March 31, 2018. It also provides other categories
of loans such as family welfare loans, home improvement loans and emergency
loans to existing customers. CreditAccess Grameen is also an aggregator of the
National Pension Scheme (NPS) of the Government of India. As of March 31,
2018, CreditAccess Grameen had 516 branches across 132 districts in the states of
Karnataka, Maharashtra, Madhya Pradesh, Chhattisgarh, Tamil Nadu, Odisha,
Kerala, Goa, and the union territory of Puducherry.

Management of the company:

Name Designation
M N Gopinath Chairman(NonExe.&Ind.Director)
Anal Kumar Jain Non Exe. & Ind. Director
George Joseph Non Exe. & Ind. Director
Massimo Vita Nominee Director
Sumit Kumar Nominee Director
Name Designation
Udaya Kumar Hebbar Managing Director & CEO
Prabha Raveendranathan Non Exe. & Ind. Director
Sucharita Mukherjee Non Exe. & Ind. Director
Paolo Brichetti Nominee Director
B R Diwakar Director – Finance

Key Managerial Persons

Udaya Kumar Hebbar(Manafing Director and CEO) ,: Udaya Kumar Hebbar is

a commercial banker with over 35 years of experience in the financial
services sector. Hailed from Coastal Karnataka town Kundapur, Udaya
is a Commerce graduate, Post graduate in Commerce with
professional qualifications of Associate of Indian Institute of
Bankers(CAIIB). He is associated with bank since 2010.

B R Diwakar(Chief financial Officer) : He is associated with bank since 2011 and

holdinf the post of CFO since 2014. He has completed his graduation from
Osmania University.

Syam Kumar R(Company Secretory) : He has joined the company just couple of
years back i.e. in start of 2018 as company secetary. He has a LLB degree from
university of Kerela.

SWOT Analysis
Strength

Customer centric model: Its model is based on high customer engagement and
quick grievance resolution which helps to create loyalty amongst the customer and
hence increases retention rate.

Efficient risk management system: It keeps into mind things such as PAR% ,
socio-economic condition etc before opening a new branch in a district. Its
effective credit risk management is reflected in its portfolio quality indicators such
as robust repayment rates, stable PAR and low rates of GNPA and NNPA.

Diversified sources of borrowings: CAGL’s funding sources are varied, as that a

diversified debt profile ensures that it is not overly dependent on any one type or
source for funding. Its diversified sources of borrowing, stable credit history,
improved credit ratings and effective asset-liability management has allowed it to
gain better access to cost-effective debt financing.

Weakness
Operates in a highly regulated environment: As it operates under licences or registrations obtained from
appropriate regulators, it is subject to actions that may be taken by such regulators in the event of any
non-compliance with any applicable policies, guidelines, circular, notifications and regulations issued by
the relevant regulators. Any change to the existing legal or regulatory framework will require CAGL to
allocate additional resources, which may increase its regulatory compliance costs and direct
management attention and consequently affect its business

Unsecured Loans: Microfinance loans are unsecured and are susceptible to various operational and
credit risks002EThe focus customer segment for CAGL’s micro-loan is women with an annual household
income of Rs160,000 or less in Urban Areas and Rs100,000 or less in Rural Areas (as required under the
Master Directions). Its customers typically has limited sources of income, savings and credit histories
and as a result, are usually adversely affected by declining economic conditions.

Concentrated operations: Operations are concentrated in Karnataka and Maharashtra and any adverse
developments in these states could have an adverse effect on its business, results of operations,
financial condition and cash flows: As of March 31, 2018 CAGL conducted its operations through 516
branches in India, of which 191 branches were located in Karnataka and 144 branches were located in
Maharashtra. As of March 31, 2018, 58.08% of its Gross AUM originated in Karnataka and 26.73% of its
Gross AUM originated in Maharashtra.
Opportunities
Expansion of network and consumer base: Its rural centric business
model has huge potential to grow considering the credit needs of people
. Rural areas account for half of GDP, but less than 10% of banking creditAlso most of its
competitors are focusing on rural area thus it is a great opportunity for
CAGL.

Digitalization and technology: The technology can play huge

role in increasing the operating efficiency and making the
system more robust. The technology like block chain ,big data
etc will be a huge opportunity if explored and implemented
properly.

Threats

Slowdown and recession like conditions: This sector is the one which is most effected by
performance of economy and this time of slowdown posses threat to the performance of bank.

Competition from digital platforms: The rise of digital platforms and payment solutions may
adversely impact the business model and there may be disintermediation in the loan market by fintech
companies.

Volatility in macroeconomic factors :Business is particularly vulnerable to interest rate risk, and volatility
in interest rates could have a material adverse effect on net interest income, net interest margin and
financial performance: C
Competitive analysis