Table Of Content72.7 Lakh
Women Members in
Over 1 Lakh Villages
Kirana Point 2.8 Lakh
Local ATM for a Range CSR Benefciaries in
of Banking Services 12 Indian States
Touching
Annual Report
Lives 2017-18
Bharat Financial Inclusion Limited
(Formerly known as ‘SKS Microfnance Limited’)
Contents
ABOUT US MANAGEMENT DISCUSSION
AND ANALYSIS 22
TOUCHING LIVES 01
OUR BOARD OF DIRECTORS 02 DIRECTORS’ REPORT 51
OUR CORE EXECUTIVE TEAM 03
REPORT ON CORPORATE
WE ARE BHARAT FINANCIAL GOVERNANCE 90
INCLUSION LIMITED 04
OUR GROWTH MOMENTUM 06
HOW ARE WE BUILDING FINANCIAL STATEMENTS
SCALE ACROSS INDIA 10
INDEPENDENT AUDITOR’S
PERFORMING WITH PASSION 12 REPORT 112
IMPACTING MORE LIVES 14 BALANCE SHEET 120
FAST-TRACKING THE KIRANA STATEMENT OF
POINT PILOT 16 PROFIT AND LOSS 121
2.8 LAKH CSR BENEFICIARIES CASH FLOW STATEMENT 122
IN 12 INDIAN STATES 18
NOTES TO
PROPOSED MERGER WITH FINANCIAL STATEMENTS 124
INDUSIND BANK 20
Corporate Information
AUDITORS REGISTERED OFFICE
B S R & Associates LLP Unit No. 410, ‘Madhava’,
Salarpuria Knowledge City, Bandra-Kurla Complex,
Orwell, 6th Floor, Unit – 3, Bandra (East), Mumbai – 400 051.
Sy. No. 83/1, Plot No. 2, Raidurg, Phone No.: 022-26592375
Hyderabad – 500 081, India. Fax No.: 022-26592375
REGISTRAR & SHARE HEAD OFFICE
TRANSFER AGENT 3rd Floor, My Home Tycoon,
Karvy Computershare Pvt. Ltd. Block A, 6-3-1192,
Selenium Tower B, Plot 31-32, Kundanbagh, Begumpet,
Gachibowli Financial District, Hyderabad – 500 016.
Nanakramguda, Phone No.: 040-44526000
Hyderabad – 500 032. Fax No.: 040-44526001
Email:
Contents
ABOUT US MANAGEMENT DISCUSSION
AND ANALYSIS 22
TOUCHING LIVES 01
OUR BOARD OF DIRECTORS 02 DIRECTORS’ REPORT 51
OUR CORE EXECUTIVE TEAM 03
REPORT ON CORPORATE
WE ARE BHARAT FINANCIAL GOVERNANCE 90
INCLUSION LIMITED 04
OUR GROWTH MOMENTUM 06
HOW ARE WE BUILDING FINANCIAL STATEMENTS
SCALE ACROSS INDIA 10
INDEPENDENT AUDITOR’S
PERFORMING WITH PASSION 12 REPORT 112
IMPACTING MORE LIVES 14 BALANCE SHEET 120
FAST-TRACKING THE KIRANA STATEMENT OF
POINT PILOT 16 PROFIT AND LOSS 121
2.8 LAKH CSR BENEFICIARIES CASH FLOW STATEMENT 122
IN 12 INDIAN STATES 18
NOTES TO
PROPOSED MERGER WITH FINANCIAL STATEMENTS 124
INDUSIND BANK 20
Corporate Information
AUDITORS REGISTERED OFFICE
B S R & Associates LLP Unit No. 410, ‘Madhava’,
Salarpuria Knowledge City, Bandra-Kurla Complex,
Orwell, 6th Floor, Unit – 3, Bandra (East), Mumbai – 400 051.
Sy. No. 83/1, Plot No. 2, Raidurg, Phone No.: 022-26592375
Hyderabad – 500 081, India. Fax No.: 022-26592375
REGISTRAR & SHARE HEAD OFFICE
TRANSFER AGENT 3rd Floor, My Home Tycoon,
Karvy Computershare Pvt. Ltd. Block A, 6-3-1192,
Selenium Tower B, Plot 31-32, Kundanbagh, Begumpet,
Gachibowli Financial District, Hyderabad – 500 016.
Nanakramguda, Phone No.: 040-44526000
Hyderabad – 500 032. Fax No.: 040-44526001
Email:
1
Touching Lives
At Bharat Financial Inclusion Limited (BFIL), we
are touching the lives of low-income women
borrowers from under-served households in
significant ways. With a historical legacy of more
than 15 years in providing financial services
to the economically weaker sections, we have
emerged as the largest community-based micro-
finance institution with 72.7 lakh low-income
women members, covering more than 100,000
villages. We are supporting those excluded
from the formal financial marketplace in taking
control of their own economic destiny.
We are touching the lives of low-income women at the bottom of the socio-economic pyramid in
diferent ways. Our tailor-made and afordable loans, priced at one of the lowest interest rates
among NBFCs, provide them with financial sustainability and augmenting economic opportunities
for them and in turn help them to improve their lives. Over the years, we have established a strong
and wide-spread reach with presence in 342 districts, covering around half of India’s total districts
(excluding Andhra Pradesh and Telangana).
We touch their lives by facilitating them to conduct banking and financial transactions at the local
Kirana shop. We also enable them to enjoy better customer service through our cashless and
paperless loan disbursals. Another significant way in which we touch the lives of people is through
our CSR projects, thus making a meaningful contribution to the society.
At BFIL, we are significantly impacting India’s financial fabric by enabling customers meaningfully
invest the loans accessed and create stable and sustainable livelihoods for themselves. Based on
our sensitive, deep understanding of our customer base, we are working towards our larger vision of
touching people’s lives, nurturing them and enabling them to achieve a better quality of life.
We provide them with income-generation loans, paving way for them to evolve and climb up the
economic ladder.
About Us
2
Our Board of Directors
P. H. Ravikumar M. R. Rao Ashish Lakhanpal
Non-Executive Chairman & Managing Director & CEO Non-Executive Director
Independent Director
S. Balachandran Geoffrey Tanner K. G. Alai
Independent Director Woolley Nominee Director - SIDBI
Independent Director
Dr. Punita Kumar-Sinha R. M. Malla Dr. Tarun Khanna
Independent Director Independent Director Independent Director
BHARAT F I NAN C IAL I N CUL S I O N L I M I T E D
3
Our Core Executive Team
Ashish Damani Ashish Pipaliya J. S. Sai
Chief Financial Offcer Senior Executive Vice President, Chief Marketing &
Investor Relations & New Initiatives Communications Offcer
Kanchan Pandhre Pratap R Rajendra Patil
Chief, Internal Audit Chief Risk Offcer & Deputy Chief Senior Executive Vice President,
Financial Offcer Legal & Company Secretary
Ritesh Chatterjee Shalabh Saxena Srinivas Peddada
Chief, Organizational Excellence Chief Distribution Offcer Chief Information Offcer
& Service Quality
Srinivas Reddy Vudumula Vikas Muttoo
Chief People Offcer Chief Business Offcer
Annual Report 2017-18
About Us
4
We are
Bharat Financial Inclusion Limited
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)ana gnale T & 765,1 bsehcna r . eW e ra t eh om st tneici�e orcim e cnanif sni tti utoi n )IFM(
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We have established ourselves in the industry Our Mission
with best-in-class return ratios and superior
asset quality. We remain focused on providing Our mission is to provide fnancial services to the
innovative solutions to our customers while economically weaker sections.
leveraging our disciplined risk management
culture and increasing operational effciencies. Our Vision
Our vision is to serve 50 million households
across India and other parts of the world and
also create a commercial microfnance model
that delivers high value to our customers.
Key Highlights of the Year
`12,594.4 Crore 72.7 Lakh 1,567
Gross Loan Total Number of Number of
Portfolio Members Branches
(Excluding Andhra across India
Pradesh and
Telangana)
19.75% `2,998.8 Crore `85,179 Crore
One of the Networth Cumulative
Lowest Lending Disbursement
Rates among
NBFC-MFIs
`20,316 95% 33.2%
Average Ticket Size Cashless Capital
Disbursement Adequacy Ratio
(For the period
FY2018)
BHARAT F I NAN C IAL I N CUL S I O N L I M I T E D
5
Growth in Assets Under Management (AUM)
12,594
5 Years AUM
9,150
7,677
CAGR is
CAGR: 44.3% 4,171
2,016 2,837 44.3%
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
Assets Under Management (` Crore)
Our Market Diferentiators
• Most effcient and one of the lowest cost lenders • Pan - India presence with balanced geographic
amongst NBFC-MFIs (Interest rate at sub-20%) exposure
• Extensive reach in 342 districts in India • Suffcient capital adequacy and liquidity
• 80% Rural Customer Base
Key Highlights
Operational Eficiency Credit Quality Financial Eficiency Balance Sheet
• 95% Cashless • Cumulative collection • Marginal cost of • AUM of Rs 12,594.4
disbursement effciency of 99.8% borrowings reduced to Crore
• Gross addition of ~30.6 for loans disbursed 8.6%* in Q4FY18 • Networth of
Lakh customers between • Weighted average cost Rs 2,998.8 Crore
•
gLoreawn d25is.b9%ur steom ents JMaanrucahr y3 11,, 22001187 and toof b9.o3r%ro*w* iinng Qs 4reFdYu1c8ed • 3C3a.p2%ita l Adequacy at
Rs 18,472 crore • N
0.e1%t NPA reduced to • Cash & Cash Equivalents
of Rs 1,858 Crore
*On & Off Balance Sheet borrowings, including processing fees
**On & Off Balance Sheet (daily average), including processing fees
Annual Report 2017-18
About Us
6
Our Growth Momentum
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tneilc uqca si ti oi ,n urce r ti dna ter nia s delik olpme sey , otp simi e st �a orp ud tc tivi , y
ter nia sixe t gni boor srew dna dna px e tni o en rew oige r sn si sla o gnipleh us sust nia
org tw ,h sa ew oc tn uni e to of uc s o n seicneici�e to tniam nia dna orpmi ev ou r
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One of the Lowest Lending
We remain Rural Focused Rates among NBFC-MFIs (%)
URBAN 29.25%
RURAL 24.55% 23.55% 22.00% 20.75% 19.75%
20% 80%
tcO 01- 1-naJ tcO 41- uJ 51-l tcO 51- 51- ceD
Cost to Income Ratio (%) Marginal Cost of Borrowing* (%)
74.5% 12.6% 11.9%
61.1%
48.3% 50.0% %4.05 10.2% 9.4% %7.8
4102YF 5102YF 6102YF 7102YF 8102YF 4102YF 5102YF 6102YF 7102YF 8102YF
*On & Off Balance Sheet loans, including processing fees
BHARAT F I NAN C IAL I N CUL S I O N L I M I T E D
