In conversation with HP Singh, CMD of Satin Creditcare Network Limited

At Satin Creditcare, we believe in empowering our clients to not only dream big but to achieve those dreams through sustainable financial growth, enunciates HP Singh, CMD of Satin Creditcare Network Limited.

Could you provide insights into the company's subsidiaries and its product portfolio? Additionally, please elaborate on the Rs 2,114 crore disbursements recorded in the June quarter.

The company has three wholly owned subsidiaries, each strategically focused on a unique area of our business. These subsidiaries enable us to diversify our offerings and address specific market needs with dedicated expertise, enhancing our overall impact and operational efficiency.

Satin Housing Finance Company (SHFL) is an affordable housing finance company that provides long-term housing loans to clients belonging to the low and middle-income groups, spread across the peripheries of urban, semi-urban and rural India. SHFL offers a comprehensive range of products, including Home Purchase, Home Extension, Home Construction, and Home Improvement loans.

Satin Finserv Limited (SFL) provides loans to Micro, Small & Medium Enterprises (MSMEs) engaged in manufacturing, trading and services. The company’s tailored offerings include working capital loans, machinery loans and trade finance solutions.

Satin Technologies Limited – This is our most recent edition and is dedicated to developing innovative, world-class technology solutions by leveraging cutting-edge technologies like Artificial Intelligence (AI), Machine Learning (ML), and Cloud Computing. The company will cater its services to various industries, including but not limited to financial services.

Through the collective efforts of our subsidiaries, we aim to provide a comprehensive range of financial services to our clients and address the ‘missing middle’. By leveraging the strength of our microfinance outreach, we endeavour to offer affordable housing and retail MSME loans to clients who have completed more than two loan cycles with the company and have higher credit requirements. This approach aligns with our broader strategy of customer life cycle management.

By serving microfinance graduate individuals, we deepen our relationships with existing clients while addressing their evolving financial needs and capabilities.

Are there any plans for geographical expansion, given that around 50 per cent of the company's presence is concentrated in Uttar Pradesh, Bihar, and West Bengal, despite a reduction?

Our pan-India geographical presence extends across 473 districts, around 90,000 villages in 29 states and union territories in India reaching the most remote regions and marginalized communities. In 97 per cent of the districts where we are present, the AUM exposure is less than 1 per cent tackling concentration risk. Furthermore, we actively monitor the market and assess the penetration levels in various states and other measures to ensure any potential risks are mitigated.

What are the company’s current top three strategic priorities?

Our priority is maintaining a diversified portfolio with a strong balance of secured assets, providing stability and risk management across our offerings. Our subsidiaries are performing well, each operating independently, which strengthens our overall structure and allows us to adapt flexibly to evolving market needs while sustaining healthy, secure growth.

At Satin, we have always prioritized a conservative lending approach, consistently adhering to a "one loan per client" policy, supported by robust underwriting practices to ensure responsible and sustainable lending. However, in response to current market dynamics, we continue to adopt a cautious and calibrated approach, which includes detailed assessments like the FOIR and stringent KYC checks, to uphold the highest standards of credit quality.

Basically, we are adapting our risk management strategies to the current economic dynamics. We are prioritising the right onboarding procedures to ensure a secure and authentic borrower addition. This focus on disciplined underwriting serves as the foundation for long-term risk mitigation and client security.

Our third priority is ongoing investment in technology-driven processes to elevate operational efficiency and client experience. By integrating innovations like e-signature through Iris, we’re able to streamline workflows, enhance accuracy, and offer seamless and secure transactions. This commitment to digital advancements strengthens our operational agility and ensures we meet the evolving needs of our clients with greater speed and precision.

What is your outlook for India's finance sector? Which factors will drive further growth, and how does the company plan to capitalise on these opportunities?

India’s finance sector is growing rapidly, powered by an evolving regulatory landscape and technology-driven solutions. The RBI’s recent initiatives, including PRAVAAH, the Fintech Repository, and real-time AI-based fraud monitoring, are set to enhance both sector efficiency and consumer trust. These steps are reshaping the sector to be more secure, innovative, and responsive to emerging risks and opportunities.

From a microfinance perspective, further growth will be fueled by greater financial inclusion, particularly in underserved rural areas. Microfinance institutions (MFIs) are positioned to expand their role as enablers of financial empowerment, offering accessible credit to low-income households and small businesses. With increased support for financial literacy programs and tailored credit options, MFIs will be able to bridge significant gaps, facilitating entrepreneurship and resilience in rural communities.

How has the company diversified its offerings over the past few years?

At Satin Creditcare, we believe in empowering our clients to not only dream big but to achieve those dreams through sustainable financial growth. Our Income Generation Loan product serves as the foundation for this journey, enabling clients to start small businesses and gradually build a solid financial footing. But our support doesn’t end there.

As clients grow and their financial needs evolve, we provide a broader spectrum of services to ensure they continue to thrive. We address the 'Missing Middle' in financing—clients needing loans between Rs 1 lakh to Rs 10 lakh—we fill a crucial gap that many traditional lenders overlook. Through the collective strength of our subsidiaries, we extend tailored solutions like affordable housing and retail MSME loans, specifically designed for clients who have successfully completed multiple loan cycles and now require larger financial assistance.

This comprehensive approach and move to the secured asset class is a key part of our customer lifecycle management strategy, allowing us to not only meet the immediate needs of our clients but to deepen our relationships as we guide them through their financial journey.

Moreover, not just product-wise, but we have also strategically expanded our geographical footprint, now operating across  29 states and UTs. With careful risk assessment and mitigation at each step, we have progressively entered new states and extended our branch network, aligned with our mission to make our services accessible across the length and breadth of the nation.

How does Satin Group mitigate risks in their housing finance, MSME lending and in their tech subsidiary?

Since we have just recently incorporated our tech subsidiary, we will talk about housing finance and MSME lending. Satin Group employs a comprehensive approach to risk mitigation in its housing finance and MSME lending operations, focusing on secured lending and rigorous borrower assessments. Unlike the unsecured lending model, Satin’s affordable housing finance and MSME lending are backed by collateral, significantly reducing credit risk by ensuring each loan is supported by tangible assets.

To further mitigate risk, the subsidiaries have instituted robust underwriting processes that include thorough income assessments to confirm borrowers' repayment capacities, along with comprehensive KYC protocols that verify borrower identities and backgrounds, minimizing fraud risks. Our tech-enabled monitoring systems allow us to track loan performance in real time, promptly addressing any early signs of financial distress.

Moreover, the group rigorously complies with all regulatory requirements, following industry guidelines to uphold operational integrity and ensure borrower protection. This includes implementing precise documentation standards, adopting industry best practices, and maintaining a robust framework for data privacy and transparency.

In a highly sombre recovery market, what collections strategies does Satin implement?

We have instituted a dedicated collection team for different DPD buckets, driven by the findings of our data analysis. Initiated from Q4 FY24 onwards, this measure is already showing promising results, positively impacting our portfolio quality.