SV Creditline
Performance on key parameters
One of the fastest-growing mid-sized MFIs, with a loan portfolio of Rs.113 crore as on September 30, 2013. The loan portfolio and borrower base have grown at CAGRs of 124 and 130 percent in the 3 years ended March 31, 2013. However, about half the business is concentrated in Uttar Pradesh Asset quality is moderate but improving. The 30+ dpd reduced to nearly 0.5 percent after increasing sharply to around 2 percent in the wake of the Andhra Pradesh crisis The resource profile is adequate; has relationships with over 15 lenders as of March 31, 2013. The cost of borrowing is comparable with peers of a similar size Capitalization is moderate; the net worth and gearing were at Rs.25.2 crore and around 5 times as on September 30, 2013. However, the company will need to raise capital on a regular basis to maintain market share.
Profitability is modest with low return on assets of around 0.6 percent over the past 2 years. The high operating expense ratio is the primary reason for low profitability. Ability to operate profitably under the revised regulatory regime will be critical
