At SCNL we are on a path of moving from good to great.
Ours is a story of great continuity and progress. With many new talents joining ourmanagement team the unwavering support of our seasoned board members along the way ourcommitment and determination remain uncompromised and the value we deliver to our clientscontinues to rise.
Financial Year 2016-2017 was yet another action-packed year for us at SCNL. We acquiredTaraashna Services Limited (TSL) and started MSME Lending. In April 2017 we haveincorporated a wholly owned housing finance subsidiary for providing loans to theaffordable housing segment.
During the year we raised close to Rs. 500 crore from NABARD as re finance facilityout of which Rs. 300 crore was raised post demonetization which is a strong validation ofthe faith our lenders have in us and especially for the work that SCNL has been doing inthe field of financial inclusion. We also raised Rs. 250 crore of fresh equity capitalthrough a QIP transaction which saw strong participation from both domestic and foreigninstitutional investors. Besides this in April 2017 we have raised equity capital of USD10 million from the Asian Development Bank (ADB) which has been a proud moment for all ofus and has given us fresh impetus to continue with our financial inclusion agenda.
SCNL has long demonstrated a commitment to client protection. In July 2016 the SmartCampaign a global initiative aimed at incorporating strong client-protection practicesinto the micro finance industry publicly recognized SCNL as Client Protection Certifiedfor meeting strong standards of client care. The award of Smart Certificate from aninternationally recognized institution not only validates that SCNL meets all of theclient protection standards but motivates us further to establish best practices ofclient protection and care in the micro finance sector in India.
In August 2016 SCNL won the 'The Best Micro Finance Company in India' award by theWorldwide Achievers in association with IBN7. More recently in January 2017 SCNL won the'Best NBFC-MFI' award and the runners-up award for 'CSR Initiatives & BusinessResponsibility' by CIMSME. We feel elated for being acknowledged for our exemplaryperformance and our unrelenting client focus but at the same time we are humbled becauseof the great responsibility entrusted upon us by virtue of being the third largest microfinance institution in the country.
Financial year 2016-2017 was a transformational year in more ways than one. We all sawthe impact of demonetization on each and every one of us. While navigating a challengingbusiness environment we remained focused on performing our core role as a financialservices provider in accordance with clear principles and values. This was particularlydemonstrated by our commitment to operate responsibly and sustainably during tough timesin the interest of both our clients and stakeholders.
SCNL today continues to recover from the impact of demonetization. With the worstclearly behind us we have grown into a much stronger company. We wouldn't have been ableto achieve this without the support of our four pillars i.e. our staff stakeholdersboard members and most importantly our customers. Thank you all for being with us and aswe move forward we invite you to follow our progress along the way.
Our ambition is always to do better. We know that in everything we do there willalways be room for improvement. Ambition and discipline will take us there propelled bythe power of our strategy and the passion of our people to serve our clients. We strivetowards making SCNL the preferred financial services partner for our clients and thepreferred place for our employees to work.
On behalf of SCNL I would like to wish you all the best as we begin another journey ofchallenges victories lessons and changes in the scal year 2017 - 2018.
H P Singh
(Chairman cum Managing Director)