Mangal Credit & Fincorp Ltd

I am delighted to connect with you through the Annual Report of Mangal credit and Fincorp Limited. As economies across the globe grapple with geopolitical tensions, high inflationary environment and monetary tightening, the India story is one of resilience, backed by strong macro fundamentals and prudence governance. The Indian economy exhibited robust resilience in 2022-23 amidst a global turmoil following the war in Ukraine and recorded a growth of 7.00%. Now, India is fastest growing economy in the world among large economics .Today, India ranks as the 5th largest economy in the world according to the World GDP Rankings 2023.

On India s 75th Independence Day, our Honourable Prime Minister Shri Narendra Modi introduced the concept of Amrit Kaal to the nation. Amrit Kaal represents the Prime Minister s vision for a New India by 2047, which aims to fulfil the nation s aspirations. The vision encompasses rapid and profitable economic growth, improved living conditions for all citizens, advancements in infrastructure and technology, and restoring global confidence in India.

Today, NBFC are stronger, more resilient, and well placed to tap growth opportunities. NBFCs AUM grew from just 3.6 lakh crore in March 2008 to almost 27 lakh crore in March 2022, and expected to increase further, indicates the importance of the sector to overall credit delivery in the economy. NBFCs are stronger and more resilient today, and better positioned in almost all operationally critical parameters. NBFC sector expected to expand 13-14% in fiscal 2024. Growth will likely be relatively broad-based across retail segments, although the share of non-traditional segments such as unsecured loans and MSME finance is expected to increase in incremental disbursements.

The micro, small and medium enterprises (MSMEs) segment, which contributes about one-third of the country s GDP and about half of the country s exports and employs more than 111 million people across different geographies. Out of over 64 million MSMEs in India, it is said that only 14 per cent have access to credit. As per various research suggest huge gap in credit availability to MSME and is estimated at $530 Billion provide a large white space for lenders in this segment. The overall portfolio performance of sector and overall delinquency are lowest in last 3 to 4 years.

The Indian gold market is one of the largest in the world, rich in heritage, steeped in tradition and a central part of our culture and customs. It also states that India owns more than 27000 tonnes (14% of the world s gold) of which, around 5,300 tonnes is pledged. The organized gold loan market is estimated to 6 lakh crore industry, which is just 35% of overall Gold Loan market. The gold loan disbursals have almost doubled from 46,791 Cr in September 2020 to 80,617 Cr in September 2022 and is expected to touch one lakh crore rupees this year. Growth in bank AUM is expected to be driven by their lower interest rates while NBFCs are expected to propel their growth through expansions of their branch network in areas of low gold loan penetration and through more investments in their digital products such as online and doorstep gold loan.

The Company is concentrating its efforts on the MSME and gold loan financing. Despite the development of strong global headwinds, we persisted in delivering reliable performance and well-capitalized to explore expansion prospects due to strong capital adequacy ratio and a positive asset liability management. During the year under review, we are having healthy capital adequacy ratio at 57.93% and capital structure remains comfortable marked by a low gearing ratio of 0.77x. Our gross loan AUM increased by 53% to 16,043 Lakhs from 10,482 Lakhs in the year prior. Our average ticket size during the year decreased to Rs 5 Lakhs. Our gold loan portfolio grew by 82%, reaching 4057 Lakhs from 2225 Lakhs in the year prior. We look forward to building a retail and granular book. During the year under review, total GNPA is 1.29% down from 1.31 % from the last year, in which SME GNPA is 0.66% and Gold GNPA is 0.63%. In contrast to the previous financial year, Total revenue for the year increased by 44% and profit after tax increased by 30%.

The company s geographic presence increased to 3 States via 12 strong branch network and counting. Other developments include reducing average ticket size, increasing business diversification, receiving additional loan approvals from the bankers and investment in technology and digitalization. We also made significant progress in digitalising our operations, which has enabled us to serve our customers more efficiently. We have also expanded our team of experienced professionals, who bring their expertise to bear on our operations in order to enhance our capacity to serve our customers better.

Finally, on behalf of the Board of Directors, I would like to express my gratitude to all our stakeholders, customers, employees and shareholders for their continued support and encouragement. It is their commitment and support that have made our journey successful. We will continue to work towards our goal of uplifting the underprivileged section of society and providing them with financial assistance.