Familiarization Programme for Independent Directors BSE 539404 NSE

Familiarization Programme for Independent Directors BSE: 539404 | NSE: SATIN | CSE: 30024 Corporate Identity No. L 65991 DL 1990 PLC 041796

Microfinance Through Window of Relevance Micro-finance is defined as “financial services such as savings, insurance, fund, credit etc. , provided to poor and low income clients in rural, semi-urban or urban areas so as to help them raise their income levels, thereby improving their standard of living”. Banks • • Assurance of timely credit Institutional Reliability Multi-product Low branch penetration Design constraint Poverty MFI • Doorstep service • No collateral • Small ticket loans only SHGs and Co-Ops • • Closest institutions Collateral Substitutes Scale up constraint Limited credit Moneylenders • • Convenience Very high interest rates Attached collateral Exploitative Increased income and saving Risk Mitigation (Insurance) Illiteracy Impact of MFI Trust Deficit (Formal FIs) Improved Literacy Empowerment 2

Demand for Micro-Credit in India About 220 mn Households and USD 44 bn market size NBFC-MFIs + SFBs+ Non profit MFIs = USD 10 bn, as of Mar’ 17 Rich 2 Mn High Income 53 Mn HHs Middle Income 80 Mn HHs Low Income 84 Mn HHs Poor 56 Mn HHs Micro Finance Customer base § ~220 mn households in the poor to middle income category § Assuming that even 50% of the households can be financially supported § Potential market size assuming basic lending at ~USD 400 per HH § An estimated market opportunity of USD 44 billion Average monthly income of Households (HHs) in USD: Rich ~1, 450; High Income 460; Middle Income ~200; Low Income ~115; Poor is less than USD 55 per month 3

Women-Centric Sustainable Development : Microfinance Women constitute the core fabric of microfinance and are also the critical success factor Women are often among the most vulnerable and poorest members of low-income societies 70% of the world’s poor are women Financially Responsible & More Reliable Improved Sustainability High in Social Collateral Influence children’s nutrition, health, and education Controlled Household Income Microfinance is a powerful instrument of social change, particularly for women Obvious economic and social benefits to involving women in microfinance programs Women are the family nucleus, that is vital for societal improvement and progress Work for Betterment of Entire Family

Evolution of SCNL § Reaches 2. 65 mn(A) active clients and gross AUM of § Raised Rs. 2. 50 bn via QIP in Oct’ 16 § Reaches 0. 17 mn active clients and gross AUM of Rs. 1, 690. 76 mn as on Mar’ 10 § Raised Rs. 25. 08 mn from Lok Capital in Nov’ 10 and Rs. 218. 50 mn from Shore. Cap II in Dec’ 10 § Rs. 77. 50 mn infused by Promoter Group § CARE Ratings upgraded LT Bank Rs. 40, 665. 98 mn(A) as on Mar’ 17 § Satin raises USD 10 mn from ADB – making this ADB’s first direct equity investment in a NBFC-MFI in India Facilities & NCDs to A- in Oct’ 16 § Acquired TSL in Sep’ 16 § Exit of DMP in Jul'16 and Shore § Starts SHG bank linkage program in Rewa, MP § Receives 83% in microfinance COCA audit - Registers as NBFC with the RBI 2017 Capital in Aug’ 16 § Started MSME Lending in FY 17 2014 2013 § Received “Client Protection Raised Rs. 19. 42 mn from Lok Capital 2011 § 2012 Date of inception of Satin on October 16, 1990 2008 1990 Certificate” under the Smart Campaign – 2016 from M-CRIL Received “Best Micro Finance Company in India” from Worldwide Achievers § Listing on NSE, BSE and CSE § Raised Rs. 414. 70 mn from SBI FMO (including 2010 2009 1996 2015 warrants) § Rs. 378. 30 mn infused by Promoter Group § Received top MFI grading of MFI 1 § Receives MIX Social Performance Reporting Award at Silver level § Raised Rs. 180. 50 mn from DMP in Feb’ 11 § Reaches 0. 80 mn active clients and gross AUM of Rs. 10, 560. 55 mn as on Mar’ 14 § Raised floating rate long term unsecured Tier II debt in Jul’ 14 § Raised Rs. 284. 37 mn of equity from NMI and USD 10 mn of debt from World Business Capital in the form of ECB § First private equity investment -- Raised Rs. 48. 74 mn from Lok Capital IPO and listing on DSE, JSE and LSE § Started JLG Model § Rs. 10. 00 mn infused by Promoter Group § § § Reaches 0. 49 million active clients and gross AUM of Rs. 5, 800. 26 mn as on Mar’ 13 Converts to NBFC-MFI in Nov’ 13 Received ‘MFI 2+’rating by CARE (second highest on an eight point scale) Raised Rs. 300. 00 mn from DMP, Shore Capital and Micro Vest Rs. 110. 00 mn infused by Promoter Group Exit of Lok Capital 5

SCNL’s Product Portfolio SCNL’s vision is to offer a complete suite of financial services to the bottom of the pyramid JLG based Microfinance SCNL Gross AUM % - Mar 2017 MSME 1% SCNL MSME Product Financing – Solar, Water & Sanitation Business Correspondent Subsidiary Business Correspondent 11% Other 11% Production 5% Agri / Allied Activities 43% Service/ Trade 29% Housing Finance Subsidiary 6

SCNL’s Model of Microfinance SCNL has adopted the Joint Liability Group (JLG) Model for microfinance Disbursement and Repayment Centre Formation Group Formation • 4 -6 women come together to form a homogeneous group • Formed on the basis of Social Collateral • A Group Leader is chosen from amongst the group members • 3 -5 such Groups come together to form a Centre • Hence a Centre has 12 -30 members • A Centre Leader is chosen • All members of a Centre are jointly liable to repay on behalf of defaulting members • Post KYC check and Credit Bureau check, loans are disbursed to each of the members belonging to a particular Centre • On specific repayment dates Centre members come together to repay the amount due 7

Field Operation Process: SCNL 1. Village Survey & Village Selection 2. Open General Meeting (OGM) 11. Date & time of center meeting is communicated to member 10. Approving Loan Application 3. Group formation with GL & CL 4. KYC collection & giving loan acknowledgement form to members 8. Group Recognition Test (GRT) & House verification 7. Compulsory Group Training (CGT) 5. Raising Credit Bureau Enquiry 6. House visit by CSO 8

Impact and Achievements of SCNL Sustainable Social Impact on Clients M Gr FI ad "M ing F CA I 1" RE t eb b-D Su B+ BB RE CA External Assessment Self Assessment: Dedicated Social Audit to measure our social performance Co m Pa m. pe A r CA 2 RE Operational Effectiveness: --Robustness of process --Experienced and professional field team I L-I SE BA B+ BB RE CA Dedicated Client Support : “SPARSH” NCD BBB+ CARE

Awards for SCNL § Winner of “Best NBFC-MFI Award” & Runner-up for “CSR Initiatives & Business Responsibility Award” in NBFC-MFI category – CIMSME Banking and NBFC Awards 2016 § Received certificate for being the ‘Best Micro Finance Company in India’ from Worldwide Achievers at the Business Leaders’ Summit and Awards, 2016 § Received “Client Protection Certificate” under the Smart Campaign – 2016 from M-CRIL § Received “India Iconic Name in Microfinance” Award 2015 from IIBA § First MFI to receive funding from Mudra Bank 10

SCNL at a Glance Gross Lending Portfolio (USD Mn) No. of Branches 626 503 329 162 26 35 49 FY 10 FY 11 FY 12 89 FY 13 431 36, 168** AGR 58% C 97 FY 14 FY 15 FY 16 767 AGR 34% C FY 17 FY 10 163 144 161 FY 12 FY 13 199 FY 14 AGR 33 631 1, 85 0, 17 FY 10 0, 25 FY 11 FY 12 FY 13 0, 80 FY 15 FY 17 FY 16 34 173 22 499 1, 19 4013 FY 14 FY 16 AGR 36% C 2, 65 48% C 0, 49 FY 15 No. of Villages Number of Clients (Mn) 0, 31 267 FY 10 7773 8888 FY 11 FY 12 11945 FY 13 16 135 FY 14 FY 15 FY 16 FY 17 11

Business Trend: MFI Vs. SCNL (Contd. . ) Market share by Gross AUM, as of FY 17 SVCL 2% Madura 2% Fusion 2% Belstar 1% 120% 103% 100% 82% 80% 60% Other 11% 61% Arohan 2% 25% 20% 11% 0% FY 14 FY 15 All MFIs Sonata 2% Annapurna 3% 49% 50% 40% BFIL 20% NBFC-MFI 22% 55% 44% 29% 30% 24% 20% 10% SCNL 8% Grameen Koota 7% of Rs. Industry AUM 30% FY 17 % Yo. Y Growth in Active Clients 60% Spandana 3% FY 16 SCNL (Standalone) 64% 70% Muthoot Microfin 4% 53% 40% JFS 27% Disha 3% Asirvad 4% % Yo. Y Growth in GLP 102% 0% FY 14 46, 847 Crore as of March 2017 FY 15 All MFIs FY 16 FY 17 SCNL (Standalone) 12

Business Trend: MFI Vs. SCNL (Contd. . ) Average Loan Outstanding, as of Mar 2017 (Rs. ) 25 764 21 206 ry du st ar lst Be RG M Gr ut An M ad SV VN CL ur a n Fu s oh 15 277 11 600 11 275 io an ta 18 823 16 891 15 970 14 071 Ar nd So na na a an Di sh a As irv ad . . . 14 917 13 768 12 332 Sp a ee ho ot n M Ko icr ot a NL am 14 588 na pu r 15 009 14 807 SC BF IL JF S 17 187 In 21 313 Average Loan Disbursed, as of Mar 2017 (Rs. ) 33 299 18 676 23 196 20 164 24 453 16 639 21 025 24 597 20 674 20 527 25 433 21 214 27 329 24 345 21 779 17 779 ry st du In ar lst Be VN RG CL SV a ur ad M sio n Fu an oh Ar ta na So a pu na An an d Sp rn a an a sh Di va d As ir in ho ut M Gr am ee n ot M icr Ko of ot a NL SC IL BF JF S 10 887 13

Business Trend: MFI Vs. SCNL Growth in business trend (Loan Accounts) in Lakhs 120% 100% 80% 60% 40% 20% 0% 109% 75% 60% 49% 23% Total (all MFIs) 23% MFIs (glp < Rs 100 Cr. ) 48% 33% MFIs (glp > Rs 100 -500 Cr. ) % change in FY 15 -16 over FY 14 -15 (yoy) 22% MFIs (glp > Rs 500 Cr. ) SCNL % change in FY 16 -17 over FY 15 -16 (yoy) Growth in business trend (Gross Loan Portfolio) in Rs. Crore 200% 150% 100% 50% 163% 113% 102% 25% 101% 33% 13% 24% 53% 11% 0% Total (all MFIs) MFIs (glp < Rs 100 Cr. ) MFIs (glp > Rs 100 -500 Cr. ) % change in FY 15 -16 over FY 14 -15 (yoy) MFIs (glp > Rs 500 Cr. ) SCNL % change in FY 16 -17 over FY 15 -16 (yoy) 14

Going Ahead! Beyond 5 years 3 -5 years Current Position Full scale bank - Complete range of credit/saving/remittance & insurance service provider - Group lending technology to be replicated through institutional development service across the world - Synthesizing business logic through related diversification in SME space - Preferred financial service provider - 5 million customers - USD 5 billion asset - Small bank - Institutional lending - Remittance services - USD 1. 8 billion assets - BC for many banks - SME financing - Employer of Choice 15

Thank You!! 16