As we embark on the first fiscal year (2021-2022) of the new decade, we would like to extend our gratitude to all stakeholders for their continued support of the Svatantra Microfin. It is their confidence in the business that has allowed us to reach our current milestones.

Last fiscal year was an extraordinary year for all of us with the uncertain outburst of pandemic and related lockdown. While we dealt with a plethora of challenges, on the hindsight, it offered immense learning to sustain business continuity.

Business Impact
On business front Svatantra exhibited a calibrated growth (36.9% y-o-y) with 1.3 million active borrowers at the same time sustaining profitability and keeping portfolio quality in control at GNPA of 1.9% and maintaining the capital adequacy ratio (CRAR) at 23.1%. During FY 21 the promoter of the company infused capital of INR 175 cr. taking paid-up capital to INR 507 cr. as on March 31, 2021. Refer Svatantra’s figures in the illustration.



More information on SMHFC www.svatantramhfc.com

Initiatives that differentiated Svatantra in the previous fiscal:

• Svatantra was amongst the only few NBFC-MFIs which managed deft liquidity position and did not approach any of its lender for moratorium, while extending the same to almost all its borrowers. Company maintained a healthy liquidity position
• The impactful products of Svatantra i.e., unique “concierge-led cashless Mediclaim” and “kutcha house insurance” indeed helped (and continues to assist) many customers to overcome the financial situation faced last year. More than INR 28 cr. of claims were settled under Cashless Mediclaim benefiting more than 0.16 million families and INR 2.7 cr claims settled for house insurance.
• Svatantra has since inception (2012) made cashless disbursements and feels proud to further the financial inclusion via cashless collection. Last year almost 23% of collections were made cashless and remaining through cash management alliances. This also helped SMPL to reduce Cash related frauds and incidents.
• Furthering the client connect, Svatantra has developed one of its kind in MFI industry -customer facing App – Saksham, which provides real time access of information to clients and keep her connected to the company.
• The company continued to grow its network and added 63 branches in the year including 3 new states - Kerala, Tamil Nadu, and Tripura.

Pandemic impact and Svatantra’s approach

The specific initiatives include:

1. Seamless operations and Healthcare:
   
   a. As the entire country grappled with the second wave of COVID-19, the company's top priority remained employee and client safety.
   
   b. Svatantra created a seamless work environment supporting work from home through infrastructure support at home of many employees.
   
   c. A health monitoring mechanism was set up with real-time information and a dedicated task force for proactive action in emergency management.
   
   d. Special monetary coverage for employees taken to financially support them during emergencies.
   
   e. At this time, as a result of the second wave of COVID-19, the company has not experienced significant business disruptions.
   
   
2. Customer engagement and support
   
   a. A special client engagement campaign has been conducted to teach them about financial responsibilities and health awareness
   
   b. Encouraging customers about digital transaction, thereby avoiding in-person meeting and reducing probability of infection.



3. Community outreach
   
   a. The company continues to support the local administration in the pandemic through vital contributions in the form of masks, sanitiser and other medical aids.

Current Impact w.r.t. second wave of Covid-19:

Company continues to keep its digital effort and utilise learnings of last year to sustain this wave. In month of April 2021, the company collections efficiency remained upwards of 92%. The disbursements were kept calibrated to reduce the exposure to its employees.

We remain confident that the waves will pass and will have a major medium to long-term impact on business as we continue to further the cause of financial inclusion and empowerment of masses.