FY19 has been an exceptional year for your Company which crossed the uS$1 billion AuMmark to join the Ivy League of Companies in the Billion Dollar Club. This feat is a matterof immense pride and satisfaction for all of us at SCNL and a clear endorsement of thesuccess of our strategic focus on inclusive financial growth.
A major indicator of the success of our business strategy is our financial performancewhich continues to improve year after year. For FY19 the Company's consolidated GLp stoodat ' 7068 Crores with consolidated PAT at ' 201 Crores - an increase of169.4% over the previous year. Coupled with a collection efficiency level ofPre-demonetization times of ~99.5% these numbers highlight the performance excellence ofour business operations whose efficiencies we are continuously maximizing throughdigitization and other initiatives. Going forward we expect the GLP to rise further atthe back of our wide operations which now span 22 states and union territories alongwith our market leading position in some states. As we continue to increase our geographicfootprint we see the growth parameters scaling up significantly in the coming quarters.
SCNL has distinguished itself as a pioneer in bringing new initiatives in its systemsand processes and this year was no exception. Our Risk Management Systems proactivepolicies along with our core values and excellent customer relationships saw us through.We have brought in differentiated endeavours such as real-time credit bureau check andreal-time bank account verification while disbursing the loans to our clients. We usheredPsychometric Tool as a part of onboarding verification which is unprecedented in themicrofinance industry. SCNL in close association with a credit bureau has introducedcredit score cards for the customer and center which is a remarkable innovation in ourprocesses.
A major breakthrough for cost optimization and enhanced efficiency has been thesuccessful completion of pilot for Cashless Collection which will bring more transparencyin operations reduce time of center meetings de-risk cash handling challenges andslippages. This will contribute to increased productivity for our Community Serviceofficers (CSOs) leading to better NIM.
Our foray into the South Indian markets where we see a multitude of excitingpossibilities for growth is in line with our strategic approach to expand into newmarkets of greater potential. With this expansion we shall be able to bring more and morepeople from low-income groups into the ambit of our inclusive charter. The move has alsogiven a fillip to our ambitions to become a truly pan-India Company with footprints inthe most excluded markets of the country.
We have also during the year further diversified our product offerings to make themmore encompassing and suited to the diverse needs of our growing customer base. Given thedynamically evolving nature of today's credit culture keeping pace with customers' uniqueaspirations and needs can be quite challenging. At SCNL we are continuously expanding thevistas of our business to deliver customized products and services to our customers. Ournewly launched digital lending app "LoanDost" seeks to target the new millennialcustomers and address their need for faster turnaround with simplicity of procedure.
Another exciting development that we would like to share with you here is the receiptof NBFC license for your Company's MSME arm Satin Finserv Limited. We see an excellentopportunity for growth in MSME lending and will continue to strengthen our offerings inthis domain.
Your Company had entered into Business Correspondent (BC) partnership with IndusIndBank Ltd in order to add a new source of raising funds. This relationship has built upover last year and proved very advantageous in terms of on-tap funding highly capitalefficient business no liquidity cost as well as validation of our processes by aninstitution like IndusInd. Another notable achievement notched by your Company during FY19was the completion of 5 Securitization and 4 Direct Assignment transactions of '1710 Crores.
SCNL has also evolved its business model to be a more broad- based financial servicesprovider and capitalize on its distribution reach built over the years. With this visionthe two subsidiaries of your Company Housing and MSME are taking good shape. Thesesubsidiaries have the potential to tap the SCNL customers who have completed multiplecycles with us and now require a loan of higher ticket size. The portfolio of SatinHousing Finance Limited has touched ' 79.01 Crores with excellent portfolio qualitywith no delinquency.
These numbers tell a great story but more importantly they are an indicator to theway the future is mapping out for your Company and all its stakeholders. As your Companymoves ahead with even greater commitment in its mission of inclusion we look ahead at afuture that is even more exciting and promising for each one of us.
With warm regards
H P Singh.