SV Creditline Pvt Ltd (SV Creditline) was incorporated in 1996 as Mantrana Finlease Pvt Ltd and got its present name in September 2008. The company commenced microfinance operations in January 2010. As on December 31, 2013, SV Creditline had a network of 57 branches across 27 districts in three states of Uttar Pradesh, Madhya Pradesh and Rajasthan.
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