1.

Various insights and financial nos of Fusion Microfinance

Average portfolio yield has decreased from 21.18% to 18.82%. COB has also decreased.

2. Top 5 states: Bihar, UP, Odisha, MP and TN. (66% book in these 5 states)
Bottom 5 states: Maharashtra, HP. Puducherry, Assam, Jammu & Kashmir (1.43% book in these 5 states)

They have less branches in Odisha and Punjab, compared to rajasthan, but the AUM is much more than
Rajasthan.
They have their highest branches in UP.
3. Details covered in point no 2

4. Collection efficiency has kept on increasing and improving post covid. At 95.3% is exceptional.

5. Inhone bola ki women loan ghar chalane ke liye bhi leti hai par product me ye profile add nai ki. Which means
sirf business capture kiya hai
6. Indian map of branches
7. Journey of the company
- Started operations in 1994
- Received first funding in 2010. Started expansion in 2015.
- Breached 1000Cr AUM in 2017
- 22Lacs active loan by 2021.
8. MFI Industry

Rural area contribute 53% in GDP.

Bank credit in rural areas have grown at 14% CAGR, compared to 17% CAGR & 11% in Urban and Semi-urban
respectively.

75% of the population in Rajasthan is Rural.

9. There are 33 districts in Rajasthan with population of 6% (in India) and contribute 3% share in overall credit
of the country. % of credit in rural areas is 36%

10. Rajasthan stands at no 7 in state contribution to GDP.

11. See in revised regulations of RBI

a. Loan interest rates can be charges on “Risk Based alanysis”. Interest rate ceiling removed.
b. PF ceiling of max
c. Minimum MFI loans in NBFC-MFI stands at 75%.
d. Household income of family: Upto 3 lacs in rural and urban both. Earlier limit of 1.25L/2L removed.
e. Ticket size of loan earlier: 75000 in first cycle and 125000 in subsequent cycles has been removed.
f. Tenure limit ofn not to be less than 24 months has been removed
g. Overall borrower indebtness limit of 1.25L has been removed. FOIR shall be max 50% is the new rule.
12. Comparison of top NBFC-MFI, Banks and SFBs w.r.t. GLP, Disbursement, client per employee/branch/loan
officer, GLP per employee/customer/loan officer,
 Average Max Min
Clients per loan officer: #480 #710 #421
Clients per Branch: #2700 #3127 #1996
GLP per Loan officer: Rs. 1.1Cr Rs. 1.6 Cr Rs. 0.94 Cr
GLP per Customer: Rs 29000 Rs. 46000 Rs. 26000
GLP per Branch: Rs. 7 Cr Rs. 10.7 Cr Rs. 4.5 Cr
Avg ticket size: Rs. 34000 Rs. 54000 Rs. 29000
(disbursement)
13. Major ratios:

Average Max Min

Yield on Advance 19.5% 23.11% 13.88%
Cost of Borrowing 8.5% 11.64% 4.88%
NIM 8.5% 10.91% 6.62%
Opex 6% 6.8% 2.78%
Cost to Income 66% 66.46% 29.73%
Credit Cost 3% 6.28% 1.83%
ROA 0.8% 1.88% 0.2%
ROE 7% 12.52% 0.79%
14. Experience of Leadership Team