Satin Creditcare up 4% on securing 15 million euro debt funding from OeEB

Satin Creditcare in focus: Shares of Satin Creditcare Network Limited (SCNL) rose as much as 3.78 per cent to hit an intraday high of Rs 219.50 per share on Thursday. 

The uptick in the share price came after the company announced that it has secured 15 million euro debt funding from Asutira’s OeEB, to empower rural women entrepreneurs.

OeEB is Oesterreichische Entwicklungsbank AG – the Development Bank of Austria.

The European Central Bank (ECB) has granted Satin Creditcare a five-year tenure for the funds, intended to strategically expand SCNL’s business operations and improve micro-credit access for its clients, according to a statement from Satin Creditcare.

 

The funds will support the Company's Income Generating Loan (IGL) and WASH Loan programs, designed specifically to empower rural women entrepreneurs, it added. 

Furthermore, the initiative by Satin Creditcare aims to stimulate economic growth and enhance living standards in underserved communities.

This transaction marks Satin Creditcare's third partnership with OeEB, building on successful collaborations in 2019 and 2021, which together raised a total of $20 million.

“We would like to share the latest development regarding our external commercial borrowing: the successful raising of 15 million euros. Given our strong focus on deep penetration across Indian villages, these additional funds will significantly enhance our expansion efforts and broaden microcredit access to underserved communities. We are determined to level-up and empower women with our outreach programmes and continue to fuel avenues that can make our country self-reliant. With Nagaland being added to our portfolio recently we see new opportunities amongst far Eastern states too,” said HP Singh, CMD of Satin Creditcare Network Limited.

Financial performance 

For the fiscal year ending March 31, 2024, Satin Creditcare reported a notable increase in net profit to Rs 436 crore, compared to Rs 5 crore in the previous year. 

The company's net interest income also showed robust growth, rising 43 per cent to Rs 1,340 crore from Rs 934 crore in 2022-23. 

The marginal cost of borrowing for Satin Creditcare stood at 10.99 per cent during the same period. 

Satin Creditcare Network Limited (SCNL), a prominent microfinance institution (MFI) in India, operates across 27 states and union territories, reaching approximately 89,000 villages. 

SCNL is committed to becoming a leading MFI by offering a wide range of products and services tailored for the financially underserved community. 

The company focuses on gender empowerment through technology, innovation, and sustainable strategic partnerships.

In addition to microfinance, SCNL also provides financial solutions in the Non-MFI segment, including loans to MSMEs and affordable housing loans.

In April 2017, SCNL established Satin Housing Finance Limited (SHFL), a wholly-owned subsidiary dedicated to affordable and micro-housing loans. Furthermore, in January 2019, SCNL obtained a separate NBFC licence to operate MSME business through Satin Finserv Limited (SFL).

At 10:33 AM, shares of the company were trading 0.33 per cent higher at Rs 212.20 per share. In comparison, BSE Sensex was trading 0.29 per cent lower at 79,696.30 levels.