Bharat Financial Inclusion: Financial's (BHAFIN) 1QFY17 PAT grew 286% YoY

22 July 2016

1QFY17 Results Update | Sector:

Financials

BSE SENSEX

27,711

S&P CNX

8,510

CMP: INR764



Bharat Financial Inclusion

TP: INR945 (+24%)

Buy



Bloomberg

Equity Shares (m)

M.Cap. (INR b) / (USD b)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

12M Avg Val (INR M)

Free float (%)

BHAFIN IN

126.3

96.5/1.4

800 / 369

7/45/46

1010

97.4



Financials & Valuation (INR Billion)

Y/E March

NII

PPP

PAT

EPS (INR)

BV/Sh. (INR)

RoE (%)

Valuations

P/E (x)

P/BV (x)

32.1

7.0

15.7

4.9

14.6

3.6

2016 2017E 2018E

5,796 8,116 12,665

4,325 6,056 9,660

3,030 6,214 6,684

23.8

48.8

52.5



108.6 157.4 209.9

6.3

4.5

RoA on AUM (%)

5.1

24.9

36.7

28.6

Bharat Financial’s (BHAFIN) 1QFY17 PAT grew 286% YoY and 180% QoQ to INR2.4b

(v/s est. of INR2.0b). Strong AUM growth (76%YoY), improving funding cost

(marginal CoF of 9.7%), lower cost-to-income ratio (down 670p YoY at 45.7%) and

MAT credit entitlement (INR1.3b) were the key highlights for the quarter.

AUM during the quarter grew at a notable pace of 76% YoY and 10% QoQ, driven

by 38% YoY growth in customer additions, coupled with a 25% increase in ticket

size (INR17k) to income generating loans (IGL). Notably, the RBI revised the

regulation allowing for higher ticket sizes, which led to BHAFIN focusing on short-

term loans. Long-term loans constituted 11% of disbursement in the quarter

compared to 24% in 1QFY16. Disbursements continued to grow at a robust pace of

59% YoY to INR37b.

Reported NIM increased 20bp QoQ, but was down 60bp YoY to 10.8% due to a cut

in interest rates last fiscal. However, marginal cost of borrowings now stands at

9.9% v/s 11.5% for 1QFY16. Asset quality improved as absolute GNPA declined

from INR41m to INR35m sequentially. % GNPA stood at 10bp (stable YoY) and

NNPA at 3bp. Strong PAT performance was also driven by operating leverage—

evident from the C/I ratio, which reduced 670bp YoY to 45.7%.

Valuation and view:

Large unmet demand, low competitive intensity, supportive

regulations, a strong balance sheet and best-in-class operating metrics have put

BHAFIN on a high-growth path. BHAFIN trades at 4.8x FY17E and 3.5x FY18E BV.

While valuations appear high, we believe they are justified, given its high medium-

term growth visibility, superior profitability and robust asset quality. Current

valuations should sustain and even improve, given its strong profitability (49% PAT

CAGR over FY16-18), healthy asset quality and capitalization. We increase our

FY17/FY18 estimates by 6.5%/10.5% to account for higher growth. Maintain

Buy

with a target price of INR945 (4.5x FY18E BV).

Sunesh Khanna

(Sunesh.Khanna@MotilalOswal.com); +91 22 3982 5521

Piran Engineer

(Piran.Engineer@MotilalOswal.com); +91 22 3980 4393

Investors are advised to refer through important disclosures made at the last page of the Research Report.

Motilal Oswal research is available on

www.motilaloswal.com/Institutional-Equities,

Bloomberg, Thomson Reuters, Factset and S&P Capital.

Bharat Financial Inclusion

Exhibit 1: Quarterly performance and reason for deviations

Particulars

Net Income

Operating Expenses

PPOP

Provisions

Profit before Tax

Tax Provisions

Net Profit

Int Exp/ operating inc (%)

Other Income / Total Income (%)

Cost to Income Ratio (%)

Tax Rate (%)

E: MOSt Estimates

1QFY17E

2,396

1,234

1,162

140

1,022

-970

1,992

47.6

7.6

51.5

-94.9

1QFY17A

2,780

1,269

1,511

120

1,391

-969

2,359

40.7

9.4

45.7

-69.6

v/s Est.

-14

Comments

Strong AUM growth led to NII beat

Significant improvement in C/I ratio

Lower provision charge

Healthy growth and lower opex led to PAT beat

5.8

Source: Company, MOSL

AUM growth of 76% YoY led by customer addition & increase in ticket size



AUM during the quarter grew at a scorching pace of 76% YoY and 10% QoQ,

driven by 38% YoY growth in customer additions coupled with higher

disbursements in Income Generating Loans (IGL).

Notably, RBI revised the regulation allowing for higher ticket sizes, which led to

BHAFIN focusing on the IGL product. As a result, the share of disbursement of

longer tenure loans decreased to 11% of the total loan book v/s 24% in

1QFY16.

Disbursement grew +59% YoY to INR37.7b, in line with the trend witnessed in

the past few quarters. This was driven by increase in number of customers as

well as a 25% YoY increase in the average incremental ticket size.

Operating leverage led to 670bp reduction in CI to 45.7%



BHAFIN has managed to rein in operating costs. Cost-to-income ratio has

sustained below 50% consistently over the past few quarters.

Cost-income ratio declined 180bps sequentially and 670bp YoY to 45.7%. This

was despite opening of 44 branches in the quarter as compared to 24 branches

in the prior quarter. BHAFIN has a medium-term target of reducing this ratio to

40%.

NIM broadly stable; Marginal cost of funds sub 10%



Reported NIM increased 20bps QoQ, but was down 60bp YoY to 10.8%. YoY

decline was on account of cut in interest rates last fiscal. BHAFIN is now the

lowest interest rate lender among all the MFIs. However, it also commands the

lowest cost of borrowings among all MFIs. Marginal cost of borrowings for the

quarter stood at 9.9% v/s 11.5% for 1QFYFY16. Notably post grant of SFB license,

BHAFIN is the only sizable player amongst MFIs, this resulted in bargaining

power and BHAFIN is able to sell down portfolio at 8%.

Asset quality improved as absolute GNPA declined from INR41m to INR35m

sequentially. %GNPA stood at 10bps (stable YoY) and NNPA at 3bps. Collection

efficiency (Non-AP portfolio) remains a robust 99.8%.

Other highlights:

BHAFIN benefited from a MAT credit entitlement of INR1.29b

during the quarter. Excluding this, the normalized tax rate was 23% c) RoE/RoA



22 July 2016

Bharat Financial Inclusion

for 1QFY17 stands at 28.5%/4.3% (adj. for MAT credit); CAR at 23.2% with

leverage of 3.3x.

Valuation and view



The AP-crisis had resulted in a sharp decline in AUM and concurrent increase in

GNPA for the MFI industry, leading to huge losses for the participants. However,

timely RBI intervention led to stable and uniform regulations across the country.

This de-risked the sector and provided a new lease of life to MFI companies,

especially BHAFIN (it had the largest AP portfolio at the time of crisis).

The government has clarified that RBI would continue to be the sole regulator of

the MFI sector and MUDRA, earlier envisaged as the regulator of MFIs, would

now only provide refinancing. The regulatory clarity and continuity bodes well

for the overall sector.

BHAFIN has since witnessed an impressive turnaround, led by strong

performance across operating parameters. The stock has also re-rated in the last

two years. We expect it to continue to grow at a healthy pace, driven by vast

geographic presence, experienced management and efficient operating metrics.

We believe BHAFIN will be a prime beneficiary of underlying growth in the

industry.

With most of its peers busy turning themselves into SFBs, we expect +40% CAGR

in BHAFIN’s AUM over the next 3 years. It would be the fastest growing

company in our Financials coverage – our 3-year PAT CAGR estimate is 46%.

Low competitive intensity, supportive regulations, strong balance sheet, and

best-in class operating metrics have put BHAFIN on a high growth path.

Currently, BHAFIN quotes at 4.8x FY17E and 3.5x FY18E BV. While these

valuations appear high, we note that it has traded at much higher multiples

before the Andhra Pradesh crisis. We believe current valuations are justified,

given high medium-term growth visibility, strong profitability, and superior asset

quality. Current valuations should sustain and could improve, given strong

profitability (49% PAT CAGR over FY16-18), and healthy asset quality and

capitalization. We increase our FY17/FY18 estimates by 6.5%/10.5% to account

for higher growth. Maintain Buy with target price of INR945 (4.5x FY18E BV).

Exhibit 2: We upgrade our estimates to factor in higher growth

INR B

NII

Other Income

Net Income

Operating Expenses

Operating Profits

Provisions

PBT

Tax

PAT

Spreads (%)

RoAA (%)

RoAE (%)

Old Est

FY17

7.4

3.4

10.8

5.3

5.5

0.6

4.9

-1.0

5.8

10.5

6.3

35.5

FY18

11.6

4.1

15.6

6.9

8.8

0.9

7.9

1.8

6.0

11.2

4.7

27.1

Revised Est.

FY17

FY18

8.1

12.7

3.6

4.2

11.7

16.9

5.6

7.3

6.1

9.7

0.8

1.0

5.2

8.7

-1.0

2.0

6.2

6.7

10.3

11.2

6.3

4.5

36.7

28.6

% Change

FY17

FY18

9.9

9.6

8.0

6.0

9.9

7.8

0.0

6.5

8.2

5.4

10.4

10.5

22 July 2016

Bharat Financial Inclusion

Exhibit 3: Quarterly Snapshot

FY15

FY16

FY17

1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17

Profit and Loss (INR m)

Income from operations

Other operating income

Total operating income

Other Income

Total Income

Interest expenses

Net income

Total Opex

Employees

Depreciation and Amrt

Others

Operating profits

Provisions and write offs

Profit before tax

Taxes

Profit after tax

Asset quality (Overall)

Gross NPA

Net NPA

GNPA (%)

NNPA (%)

AUM related

Overall AUM

On balance sheet

1,272

246

1,518

171

1,690

478

1,211

737

539

186

475

-19

493

1,658

243

1,901

109

2,010

671

1,339

780

548

220

560

-8

568

1,635

209

1,844

225

2,069

787

1,282

852

631

209

430

411

1,767

209

1,976

286

2,262

854

1,408

836

600

225

571

107

464

405

2,173

236

2,409

418

2,826

1,008

1,819

952

709

233

867

795

183

611

2,664

249

2,913

330

3,243

1,169

2,073

974

699

257

1,099

1,012

233

779

2,805

268

3,073

362

3,434

1,327

2,107

989

715

246

1,118

1,031

236

795

3,000

297

3,298

406

3,703

1,341

2,362

1,121

801

292

1,241

139

1,102

257

845

3,341

348

3,690

452

4,141

1,361

2,780

1,269

949

299

1,511

120

1,391

-969

2,359

Variation (%)

QoQ

YoY

-23

-14

-477

179

120

-628

286

0.10

0.05

0.20

0.10

0.04

-15

-16

-24

-27

27,830

20,410

30,430

27,930

31,950

27,250

41,710

29,110

47,970

38,520

54,620

47,530

61,770

50,350

76,770

49,650

84,630

62,270

Other details

CAR

Branches

Centers (Sangam)

Loan officers

1,268

1,300

1,324

1,368

226,856 228,494 229,172 227,125 220,485 216,723 227,214 246,647 226,307

5,124

5,094

5,104

5,286

5,656

6,066

6,415

6,884

7,914

Source: Company, MOSL

22 July 2016

Bharat Financial Inclusion

Story in charts

Exhibit 4: AUM grew at stellar 76% YoY

Gross loan portfolio (INR bn)

YoY Growth (%)

Exhibit 5: Client additions were also strong at 38%

Clients (mn)

YoY Growth (%)

84 76

23.5 23.5 23.6 28.4 27.8 30.4 32.0 41.7 48.0 54.6 61.8 76.8 84.6

2.7 2.8 3.0 3.3 3.3 3.6 3.5 3.6 3.7 3.8 4.2 4.6 5.1

Source: Company, MOSL

Exhibit 6: Ticket size spiked following RBI regulation

Avg Tkt Size (INR)

YoY Growth (%)

Exhibit 7: Cost of borrowing declined to 10.6%

Cost of borrowing (%)

(4)

(2)

(5)

Source: Company, MOSL

Exhibit 8: Operating efficiency kicking in; C/I ratio at <50%

75 76

Cost/Income Ratio (%)

Exhibit 9: Asset quality remains healthy

GNPA (%)

NNPA (%)

61 58

47 47 47 46

0.2

0.06

0.04

0.1

0.2

0.16

0.1 0.1 0.1

0.1 0.1

0.05

0.1

0.2

0.1 0.1 0.1

0.1 0.1

0.04

0.03

Source: Company, MOSL

22 July 2016

Bharat Financial Inclusion

Exhibit 10:

Financials:

Valuation metrics

Rating

ICICIBC*

HDFCB

AXSB

KMB*

YES

IIB

IDFC Bk

DCBB

JKBK

SIB

Private Aggregate

SBIN (cons)*

PNB

BOI

BOB

CBK

UNBK

OBC

INBK

ANDB

Public Aggregate

Banks Aggregate

HDFC*

LICHF

IHFL

GRHF

REPCO

DEWH

Housing Finance

RECL

POWF

Infra Finance

SHTF

MMFS

BAF

MUTH

SKSM

Asset Finance

NBFC Aggregate

Financials

Buy

1,168

317

8,710

275

764

Neutral

199

207

Buy

1,332

503

714

291

835

218

Buy

Neutral

Buy

Neutral

Buy

Neutral

Buy

226

124

107

152

252

131

112

148

Buy

Neutral

Buy

Neutral

Buy

CMP

(INR)

262

1,228

538

761

1,155

1,136

100

Mcap

(USDb)

23.1

47.1

19.4

21.1

7.4

10.2

2.6

1.6

0.4

0.5

0.4

133.9

26.5

3.7

1.4

5.3

2.1

1.4

0.5

1.1

1.8

43.8

177.6

31.9

3.8

4.6

1.6

0.8

1.0

43.6

3.0

4.1

7.1

4.0

2.7

7.1

1.7

1.5

16.9

67.7

245.3

75.5

15.5

24.9

46.2

94.2

18.8

32.0

47.9

59.2

46.8

68.6

49.1

40.1

39.5

68.2

8.3

30.3

29.4

46.3

47.3

84.0

10.7

39.0

36.2

19.3

15.7

9.3

14.7

33.1

26.8

22.1

22.2

2.9

24.3

19.9

23.5

18.7

42.4

36.7

27.9

29.1

8.2

EPS (INR)

FY17

18.1

58.4

35.0

26.1

78.9

50.5

3.0

3.7

7.4

17.6

3.1

P/E (x)

BV (INR)

FY18

159

386

285

239

468

389

162

259

220

356

173

537

351

494

320

136

P/BV (x)

RoA (%)

RoE (%)

FY18 FY17 FY18 FY17

20.8

70.3

41.0

33.7

97.3

63.8

4.1

4.5

8.6

21.2

3.7

10.7

8.0

145

332

251

207

391

334

146

240

200

337

159

505

318

473

298

129

21.0 17.5

15.4 13.1

29.1 22.6

14.6 11.9

22.5 17.8

16.9 12.2

16.3 13.6

13.5 11.6

3.8

7.0

11.7

7.9

11.6

10.4

7.6

4.9

5.1

6.7

19.8

11.5

3.2

5.8

9.3

6.2

4.6

8.2

5.9

3.6

4.0

5.1

7.1

8.5

194

213

280

179

194

336

507

119

157

153

FY17 FY18 FY17 FY18 FY17 FY18

1.25

3.70

2.14

3.68

2.96

3.40

1.19

1.22

1.45

0.46

0.72

2.59

1.00

0.62

0.32

0.96

0.50

0.41

0.24

0.50

0.45

0.75

1.61

1.05 1.19 1.22 11.1 11.8

3.18 1.89 1.86 18.9 19.6

1.89 1.45 1.43 14.7 15.2

3.18 1.50 1.70 14.2 15.4

2.47 1.81 1.83 22.0 22.7

2.92 1.92 1.96 16.2 17.6

1.10 1.09 1.12

1.14 0.64 0.65

7.2

7.7

9.4

8.7

1.29 0.98 0.93 11.3 11.7

0.42 0.99 1.05 12.7 13.7

0.66 0.61 0.64 10.7 11.7

2.29

0.92 0.49 0.54

0.56 0.44 0.50

0.30 0.12 0.27

0.88 0.48 0.54

0.47 0.31 0.36

0.37 0.43 0.53

0.23 0.28 0.32

0.46 0.49 0.56

0.43 0.15 0.39

0.70

1.47

3.53 1.89 2.10 20.0 22.1

2.00 1.49 1.51 20.1 20.9

2.27 3.84 3.78 23.4 28.2

3.90 2.14 2.17 18.2 19.8

0.99 1.18 1.20 16.1 17.4

3.67

0.51 2.63 2.55 18.9 18.9

1.94 2.69 2.35 85.1 55.0

0.90

2.01 2.17 2.27 15.7 17.1

2.39 2.14 2.26 13.7 15.0

4.45 3.14 3.02 20.6 21.2

1.55 3.29 3.47 16.7 19.2

3.80 6.28 4.69 35.5 27.1

2.78

2.62

1.67

8.3

8.2

2.8

9.6

6.7

8.7

4.8

7.7

2.3

9.7

9.5

6.8

11.2

8.1

11.0

5.8

9.4

6.2

19.1 16.0

16.5 13.2

23.0 18.4

12.7 10.6

10.5

8.5

35.0 27.3

27.6 21.4

7.4

3.4

4.4

3.9

6.0

2.9

4.2

3.5

581

133

177

201

20.6 17.4

389

107

221

251

315

214

221

4.39

2.36

2.55

4.65

1.12

4.16

0.59

2.89

1.11

2.30

2.66

5.34

1.75

4.99

3.08

3.02

1.85

10.25 8.24 2.33 2.34 32.4 33.5

15.5 12.4

20.4 16.9

11.0

8.6

308.1 380.8 28.3 22.9 1,631 1,956

16.5 16.0

19.2 15.7

14.0 12.1

15.7 12.9

*Multiples adj. for value of key ventures/Investments; For ICICI Bank and HDFC Ltd BV is adjusted for investments in subsidiaries

22 July 2016

Bharat Financial Inclusion

Financials and valuations

INCOME STATEMENT

Y/E MARCH

Interest Income on books Port.

Interest Expense

Net Financing income

Change (%)

Income from assignment of loans

Net Income (Incl Secur)

Change (%)

Other operating income

Other Income

Net Income

Change (%)

Operating Expenses

Change (%)

Operating Profits

Change (%)

Total Provisions

% to operating income

PBT

Tax

Tax Rate (%)

PAT

Change (%)

Proposed Dividend

BALANCE SHEET

Y/E MARCH

Equity Share Capital

Reserves & Surplus

Networth

Borrowings

Change (%)

Other liabilities

Change (%)

Total Liabilities

Loans

Change (%)

Investments

Net Fixed Assets

Other assets

Total Assets

Assumptions

AUM (INR b)

AUM Growth

Borrowings Growth

Dividend per share

E: MOSL Estimates

2011

10,309

3,495

6,813

44.2

1,194

8,007

40.8

252

941

9,200

37.3

5,129

46.1

4,071

27.6

2,362

58.0

1,709

593

34.7

1,116

-35.8

2012

3,589

2,001

1,587

-76.7

346

1,933

-75.9

422

366

2,722

-70.4

4,224

-17.6

-1,503

-136.9

11,735

-781.0

-13,237

369

-2.8

-13,606

-1,318.9

2013

2,200

1,427

773

-51.3

580

1,353

-30.0

542

204

2,098

-22.9

2,626

-37.8

-527

-64.9

2,444

-463.7

-2,971

0.0

-2,971

-78.2

2014

3,930

2,142

1,788

131.4

557

2,345

73.4

702

258

3,306

57.6

2,462

-6.2

844

-260.1

146

17.3

699

0.0

699

-123.5

2015

5,665

2,790

2,874

60.7

668

3,542

51.0

907

791

5,240

58.5

3,204

30.1

2,036

141.2

100

4.9

1,936

3.0

1,877

168.7

2016

9,539

4,846

4,693

63.3

1,103

5,796

63.7

1,049

1,515

8,361

59.6

4,036

26.0

4,325

112.4

386

8.9

3,939

909

23.1

3,030

61.4

(INR Million)

2017E

2018E

14,173

21,472

7,669

11,070

6,504

10,401

38.6

59.9

1,612

2,263

8,116

12,665

40.0

56.0

1,858

2,432

1,715

1,815

11,690

16,913

39.8

44.7

5,634

7,252

39.6

28.7

6,056

9,660

40.0

59.5

812

979

13.4

10.1

5,244

8,681

-970

1,997

-18.5

23.0

6,214

6,684

105.1

7.6

2011

723

17,085

17,808

22,359

-17.0

3,097

-23.1

43,264

36,510

22.7

311

6,405

43,264

2012

724

3,623

4,347

10,213

-54.3

2,245

-27.5

16,805

9,496

-74.0

206

7,101

16,805

2012

16,689

-59.4

-54.3

0.0

2013

1,082

2,822

3,904

16,186

58.5

5,024

123.8

25,115

15,654

64.8

113

9,346

25,115

2013

23,590

41.4

58.5

0.0

2014

1,082

3,510

4,592

15,313

-5.4

5,067

0.9

24,972

17,528

12.0

112

7,330

24,972

2014

31,128

32.0

-5.4

0.0

2015

1,263

9,202

10,465

32,800

114.2

3,722

-26.5

46,987

29,584

68.8

102

17,299

46,987

2015

41,710

34.0

114.2

0.0

2016

1,273

12,557

13,830

51,297

56.4

6,410

72.2

71,537

50,216

69.7

165

21,155

71,537

2016

76,770

84.1

56.4

0.0

2017E

1,273

18,771

20,044

94,781

84.8

11,040

72.2

125,865

87,199

73.6

265

38,400

125,865

2017E

123,984

61.5

84.8

0.0

2018E

1,273

25,455

26,728

126,624

33.6

19,012

72.2

172,364

116,494

33.6

428

55,442

172,364

2018E

169,114

36.4

33.6

10.5

22 July 2016

Bharat Financial Inclusion

Financials and valuations

RATIOS

Y/E MARCH

Spreads Analysis (%)

Avg. Yield - on Financing portfolio

Avg. Cost of funds

Interest Spread on Financing portfolio

Net Interest Margin (incl Securitization)

Net Interest Margin (Excl Securitization)

Profitability Ratios (%)

RoE

RoA

Op. Exps./Net Income

Empl. Cost/Op. Exps.

Asset-Liability Profile (%)

Net NPAs to Adv.

Debt/Equity (x)

Average leverage

CAR

Valuations

Book Value (INR)

Price-BV (x)

EPS (INR)

EPS Growth (%)

Price-Earnings (x)

E: MOSL Estimates

2011

32.1

14.2

18.0

19.0

21.2

2012

16.9

12.3

4.6

6.7

7.5

2013

22.0

10.8

11.2

6.7

7.7

2014

29.2

13.6

15.6

8.6

13.3

2015

25.9

12.8

13.1

9.7

13.2

2016

24.2

12.8

11.4

9.8

11.9

2017E

20.8

10.5

10.3

8.1

9.5

2018E

21.2

10.0

11.2

8.6

10.3

8.2

2.7

55.7

63.6

-122.8

-45.3

155.2

61.8

-72.0

-14.2

125.1

65.8

16.4

2.8

74.5

67.2

24.9

5.2

61.1

72.4

24.9

5.1

48.3

72.4

36.7

6.3

48.2

70.1

28.6

4.5

42.9

70.7

1.3

1.8

45.4

2011

246.2

3.1

15.4

-43.0

49.5

32.1

2.3

1.5

35.4

2012

60.1

12.7

-188.0

-1,318.3

-4.1

0.4

4.1

3.2

33.9

2013

36.1

21.2

-27.5

-85.4

-27.8

0.1

3.3

3.7

27.2

2014

42.4

18.0

6.5

-123.5

118.4

0.1

3.1

3.2

31.7

2015

82.9

9.2

14.9

130.2

51.4

0.0

3.7

3.5

23.1

2016

108.6

7.0

23.8

60.2

32.1

0.0

4.7

4.3

20.9

2017E

157.4

4.9

48.8

105.1

15.7

0.0

4.7

20.9

2018E

209.9

3.6

52.5

7.6

14.6

22 July 2016

Bharat Financial Inclusion

Corporate profile

Company description

Bharat Financial Inclusion (BHAFIN) is the largest

microfinance company in India in terms of gross

loan portfolio. Its core business is providing small

value loans and other basic financial services to its

customers, who are predominantly located in rural

areas. The company extends loans to them mainly

for use in small businesses or for other income

generating activities and not for personal

consumption. As of 3QFY16, BHAFIN had an

overall AUM of over INR60, with active customer

base of 4.2m spread across 1,268 branches.

Exhibit 11: Sensex rebased

Exhibit 12: Shareholding pattern (%)

Mar-16

Promoter

DII

FII

Others

2.7

20.4

56.7

20.3

Dec-15

2.7

17.1

59.5

20.7

Mar-15

9.3

14.4

47.1

29.2

Exhibit 13: Top holders

Holder Name

IDFC Premier Equity Fund

Amansa Holdings Pvt Ltd

Sandstone Investment Partners I

Vinod Khosla

Tree Line Asia Master Fund (Singapore) Pte Ltd

Holding

5.3

4.3

4.1

3.3

3.0

Note: FII Includes depository receipts

Exhibit 14: Top management

Name

P H Ravi Kumar

M R Rao

Designation

Chairman (Non-Executive)

Managing Director & CEO

Exhibit 15: Directors

Name

Sumir Chadha

Tarun Khanna*

Paresh D Patel

Geoffrey Tanner Woolley*

P Krishnamurthy*

*Independent

Name

S Balachandran*

Punita Kumar Sinha*

Exhibit 16: Auditors

Name

S R Batliboi & Co LLP

Type

Statutory

Exhibit 17: MOSL forecast v/s consensus

EPS

(INR)

FY17

FY18

MOSL

forecast

48.7

52.5

Consensus

forecast

Variation

(%)

22 July 2016

SKS MICROFINANCE GALLERY

SKS MICROFINANCE

SECTOR UPDATES

Bharat Financial Inclusion

NOTES

22 July 2016

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Bharat Financial Inclusion

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