InCred Financial Services Limited
Performance Update H1 FY25
INCRED OVERVIEW
2016- 2019- 2021-
18 20 25
• Acquired NBFC license • Raised INR 427 Cr through • Successfully completed Merger of KKR
marquee investors India and InCred in July’22
• Hired Leadership team
• Employees: 500+ • Raised ~INR 500 Cr, to become only
• 2 Retail & 3 MSME products launched second Unicorn produced in India in
• Raised INR 585 Cr of equity 2023
• Rating upgraded to AA-/Stable by CRISIL
• Employees: 100+
• Customers: 410,000+
• Profitable in 1st year of operations in
• Employees: 2,100+
2017
• Branches: 110+
Asset under Long Term rating of ‘AA-’ by
INR 10,627 Cr
Management CRISIL & ICRA (Outlook- Stable)
2
ROBUST PERFORMANCE H1 FY25
Asset under GNPA/NNPA 2.0%/0.8%
INR 10,627 Cr
Management
5.1% (PBT)
Net worth INR 3,512 Cr Return on Assets
3.8% (PAT)
INR 242 Cr (PBT) Capital to Risk
Profit Asset ratio 29%
INR 179 Cr (PAT)
LCR 459% Debt to Equity 1.9x
3
KEY BENEFITS OF DIVERSIFIED PRODUCT PORTFOLIO
1 Risk Minimization
•
•
Diversified offerings help safeguard from macro and external risks
Significant growth opportunities at reasonable risk-reward in each of the existing products
2 Opportunity to Grow
•
•
Expand existing portfolio through deepening presence across geographies through addition of branches
Tactically growing in product lines depending on market opportunity in different business lines. For e.g. followed conservative approach in
School financing during Covid-19 but increased student loans not impacting the overall profitability.
3 •
•
Liability Management
Borrowing basket to create a balanced mix of long and short-term liabilities leading to better ALM management
Diversified sources of lenders (DFIs, PSU & Private Banks, NBFCs, & Capital Markets)
4
TECH ENABLED ALL BUSINESS PROCESSES AT INCRED
Robust technology backbone design for multi-
product play and scalability focus
Sales Operations Access application anytime & from
anywhere
Scalable to handle millions of
transactions seamlessly
Credit Collections Near real-time data availability for all
critical business functions
Fast product launches and quick
integration with third-party providers
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FINANCIAL PERFORMANCE
Parameter
FY21 FY22^ FY23 FY24 H1 FY25
(INR Cr)
AUM 2,645 4,272 6,062 9,039 10,627
Net worth 1,046 2,219 2,483 3,320 3,512
Debt 1,673 3,240 3,913 5,014 6,730
Net Interest
233 265 467 739 483
Income
Total Income 239 302 521 838 552
Credit Cost 89 43 32 (19) 75
Operating
138 200 282 396 234
Expenses
Profit before Tax 12 48 207 423 242
^FY22 AUM, Net-worth and Debt are as on 1st April’22 post the merger of erstwhile InCred Financial Services Ltd (now InCred Prime Finance Limited) and KKR India Financial Services
Limited (now InCred Financial Services Limited) 6
FINANCIAL PERFORMANCE
Parameter FY21 FY22 FY23 FY24 H1 FY25
CRAR 37% 37% 33% 30% 29%
Debt/Equity 1.6x 1.5x 1.6x 1.5x 1.9x
GNPA% 3.9% 2.4% 2.1% 2.1% 2.0%
NNPA % 1.9% 1.3% 0.9% 0.8% 0.8%
NIM (%) 10.7% 9.0% 9.6% 10.1% 10.2%
Total Income (%) 11.0% 10.1% 10.3% 11.4% 11.6%
Credit Cost (%) 4.1% 1.5% 0.7% (0.3%) 1.6%
Opex / AUM (%) 6.3% 6.7% 5.3% 5.4% 4.9%
ROA (Pre-tax) (%) 0.6% 1.6% 4.1% 5.8% 5.1%
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Structural Liquidity
ALM Profile – As on Sep’24
12,361
Figures in INR Cr Cumulative Inflow Cumulative Outflow
LCR Ratio – 459% 8,615
8,003
7,622
7,026
4,837
3,537 3,553
2,637
2,146
1,360 1,496 1,519
532 890
168 368
1-14 days 15-30 days 31-60 days 61-90 days 90-180 days 180-360 days 1-3 years 3-5 years Beyond 5 years
Cumulative GAP^
708% 307% 303% 196% 133% 36% 8% 8%
Prudent Liquidity Management leading to cumulative positive gap in all buckets
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^Cumulative GAP (%) = Net flows (i.e. cumulative inflows – cumulative outflows) as a % of cumulative outflows
SHAREHOLDING STRUCTURE
Shareholders of InCred Holdings Ltd Shareholding %
Bhupinder Singh & Affiliates 21.2%
KKR Consortium 27.4%
InCred Holdings Ltd Ranjan Pai (Manipal Group) 2021 10.6%
OAKS Assets Management 7.0%
100% Anshu Jain 2.6%
Moore Strategic Ventures 2.0%
Dalmia Group 1.6%
InCred Financial Services Ltd
Elevar Equity 1.6%
Ravindran Pillai 1.3%
Others 24.8%
Total 100.0%
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As on Sep 2024
BOARD OF DIRECTORS
Ambika Bisla Sunita Gupta
Independent Director Independent Director
Previously served as technical Executive Director and CFO in
advisor to Ministry of Finance, PNB Gilts Ltd. and senior
Department of Financial Service finance positions at Punjab
etc. National Bank
Anil Nagu
Non-Executive Director
Karnam Sekar CFO of KKR India since 2019
Independent Director Previously, ED and Group Head
Bhupinder Singh Former DMD- SBI and MD- Strategy & Finance for Omni
Whole Time Director & CEO Dena Bank and IOB United, Citibank
Previously Co- Head of Banking &
Securities for Asia Pacific at
Rohan Suri
Deutsche Bank Non-Executive Director
Director in KKR.
Rupa Vora Serves on the boards of Shriram
Independent Director General Insurance Company ltd.,
Former Group Director and Re Sustainability Ltd., Vini
CFO of Alternatives at IDFC Cosmetics Pvt. Ltd.
Vivek Anand P S
Sankaran Nair Rajagopal Non Executive Director
Independent Director Founder and MD at Oaks Asset
Previously Regional Director in Management
RBI, Nominee Director in the Over 20 years of experience in
board of Bank of Maharashtra Banking
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MANAGEMENT TEAM
Saurabh Jhalaria Prithvi Chandrasekhar Krishna Bahety
Head- Education & SME Business Head- Consumer Finance Chief Risk Officer
Previously responsible for Previously in leadership roles at Previously Head – Policies at
Corporate & SME credit risk Capital One and Experian, and in Udaan, Senior leadership roles
management for India & SEA at management consulting at in Magma Fincorp, Fullerton,
Deutsche Bank Accenture and McKinsey Citi Group.
Ashwin Sekar Kamlesh Dangi
Chief Technology & Product Officer Group Head- Human Resource
Previously worked with GAIN Credit Previously Group President at UTI
and Global Analytics at senior Tech AMC, Group Chief People Officer
positions at Religare Ent. & Joint GM- ICICI
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THANK YOU
InCred Financial Services Limited
Head Office: 1203 – B Wing, 12th Floor, The Capital, Bandra Kurla Complex, Mumbai – 400051, Maharashtra
Website: www.incred.com
CIN : U67190MH1995PLC360817
